Salt Lake City, Utah-based Extra Space Storage (EXR) functions as a self-administered and self-managed REIT that owns and operates over 3,500 self-storage properties. Valued at $32.6 billion by market cap, EXR is the largest operator of self-storage properties in the U.S. that offers customers a wide selection of conveniently located and secure storage units, including boat storage, RV storage, and business storage.
Shares of this leading self-storage REIT have underperformed the broader market over the past year. EXR has gained 8.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. In 2025, EXR stock is up 2.8%, compared to SPX’s 4.5% rise on a YTD basis.
Narrowing the focus, EXR’s underperformance is also apparent compared to iShares U.S. Real Estate ETF (IYR). The exchange-traded fund has gained about 10.6% over the past year. Moreover, the ETF’s 3.6% gains on a YTD basis outshine the stock’s returns over the same time frame.
EXR's underperformance is due to declining same-store revenues, NOI, and rising borrowing costs, impacting its overall financial performance.
On Oct. 29, EXR shares closed down more than 1% after reporting its Q3 results. Its core FFO of $2.07 surpassed Wall Street expectations of $2.03. The company’s revenue was $824.8 million, topping Wall Street forecasts of $821.4 million. EXR expects full-year core FFO to be between $8 and $8.15.
For the current fiscal year, ended in December 2024, analysts expect EXR’s FFO to remain unchanged at $8.10 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
Among the 18 analysts covering EXR stock, the consensus is a “Moderate Buy.” That’s based on five “Strong Buy” ratings, one “Moderate Buy,” 11 “Holds,” and one “Moderate Sell.”
This configuration is less bearish than two months ago, with one analyst suggesting a “Strong Sell.”
On Jan. 17, Truist Financial Corporation (TFC) kept a “Hold” rating on EXR and lowered the price target to $155, implying a potential marginal upside from current levels.
The mean price target of $168.29 represents a 9.4% premium to EXR’s current price levels. The Street-high price target of $184 suggests an upside potential of 19.7%.
