Extra Space Storage Inc. (EXR), headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT that owns and operates over 3,500 self-storage properties. Valued at $31.4 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.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and EXR perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the industrial REIT industry. EXR's clustering strategy in large population centers allows for enhanced brand visibility and operational efficiencies. Its revenue management systems, which analyze and adjust rental rates daily, demonstrate its innovative approach to business. Through the integration of technology in operations, such as the bridge lending program and tenant reinsurance activities, EXR continues to improve profitability and enhance customer experience.
Despite its notable strength, EXR slipped 20.6% from its 52-week high of $184.87, achieved on Sep. 18, 2024. Over the past three months, EXR stock gained 3.1%, outperforming the S&P 500 Index’s ($SPX) 3.3% dip during the same time frame.
In the longer term, shares of EXR dipped 1.9% this year, outperforming SPX’s YTD losses of 3.5%. However, the stock climbed 6.1% over the past 52 weeks, underperforming SPX’s 9.6% returns over the same time frame.
To confirm the bearish trend, EXR is trading below its 50-day moving average since early March. The stock has been trading below its 200-day moving average since mid-December 2024, with slight fluctuations.
On Feb. 25, EXR shares closed up more than 1% after reporting its Q4 results. Its core FFO of $2.03 surpassed Wall Street estimates of $2.02. The company’s revenue was $821.9 million, falling short of Wall Street forecasts of $831.5 million. EXR expects full-year FFO in the range of $8 to $8.30.
In the competitive arena of industrial REIT, Public Storage (PSA) has taken the lead over EXR, showing resilience with a 1.3% loss on a YTD basis and a 6.6% uptick over the past 52 weeks.
Wall Street analysts are moderately bullish on EXR’s prospects. The stock has a consensus “Moderate Buy” rating from the 18 analysts covering it, and the mean price target of $165.59 suggests a potential upside of 12.8% from current price levels.
