Extra Space Storage (EXR) AI Stock Analysis

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Extra Space Storage

(NYSE:EXR)

78Outperform

Extra Space Storage demonstrates a solid financial performance with strong revenue growth and cash flow generation. The technical analysis supports a stable to positive trend, while the earnings call provides a positive outlook despite some economic challenges. However, the high P/E ratio suggests potential overvaluation concerns, which are somewhat mitigated by a strong dividend yield.

Positive Factors

Acquisitions

EXR continued to acquire various acquisitions/JVs with $153.8 million for the acquisition of 12 operating stores.

Interest Income

EXR's loan book is expected to expand to $1.45B (+39% Y/Y) contributing +9¢ higher expected interest income.

Occupancy Rates

Average same store occupancy was 94.1% in 4Q24, up 70 basis points year-over-year, indicating improved occupancy.

Negative Factors

Financial Guidance

Initial '25 guidance missed by -1.9% with expected SSNOI also worse than expected.

Property Expenses

Property taxes were notably higher than expected.

Rental Rates

New customer street rate declines are narrowing, but y/y in-place rate declines weakened sequentially.

Extra Space Storage (EXR) vs. S&P 500 (SPY)

Market Cap

$32.62B

Dividend Yield4.39%

Average Volume (3M)1.13M

Price to Earnings (P/E)34.7

Beta (1Y)0.76

Revenue Growth14.72%

EPS Growth-4.21%

CountryUS

Employees8,012

SectorReal Estate

Sector Strength81

IndustryREIT - Industrial

Share Statistics

EPS (TTM)1.28

Shares Outstanding212,210,880

10 Day Avg. Volume1,010,452

30 Day Avg. Volume1,133,782

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.39

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit19.35

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$160.54

Price Target Upside8.17% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering13

Extra Space Storage Business Overview & Revenue Model

Company DescriptionExtra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

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 Key Performance Indicators (KPIs)

Any

Ending Same-Store Occupancy

Ending Same-Store Occupancy
Measures the occupancy rate of stores that have been open for a full year, providing insight into demand stability and operational efficiency.

Chart InsightsExtra Space Storage has maintained strong occupancy levels near historical highs, despite a slight dip in 2023. The recent earnings call highlighted strategic growth in third-party management and investments, which could bolster future occupancy rates. However, challenges such as increased property taxes and external factors like the LA wildfires pose risks to revenue and NOI. The company's guidance suggests a cautious outlook for 2025, with potential for modest revenue growth but continued pressure on expenses.

Data provided by:

Main Street Data

Extra Space Storage Financial Statement Overview

Summary

Extra Space Storage has shown strong financial performance with robust revenue growth, stable profit margins, and a solid cash flow position. The absence of debt in 2024 enhances financial flexibility but may limit potential leverage benefits.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
2.16B	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
1.87B	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

Technical Analysis Sentiment

Positive

Last Price148.42

Price Trends

50DMA

144.60

Positive

100DMA

147.57

Positive

200DMA

156.42

Negative

Market Momentum

MACD

1.58

Negative

RSI

58.87

Neutral

STOCH

66.58

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXR, the sentiment is Positive. The current price of 148.42 is above the 20-day moving average (MA) of 143.04, above the 50-day MA of 144.60, and below the 200-day MA of 156.42, indicating a neutral trend. The MACD of 1.58 indicates Negative momentum. The RSI at 58.87 is Neutral, neither overbought nor oversold. The STOCH value of 66.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXR	78 Outperform	$32.62B	34.73	6.46%	4.39%	14.72%	-4.21%
IIPR	77 Outperform	$1.58B	10.11	7.78%	13.65%	-1.33%	-8.16%
PSA	76 Outperform	$52.28B	29.83	20.20%	4.00%	3.08%	-8.54%
CUBE	74 Outperform	$9.62B	25.28	13.72%	4.85%	2.15%	-5.99%
SELF	71 Outperform	$59.92M	28.26	4.36%	5.49%	2.79%	-28.56%
Sector *	60 Neutral	$2.80B	11.09	0.20%	8508.36%	6.13%	-16.84%
NSA	60 Neutral	$4.86B	63.65	5.66%	6.26%	-9.89%	-70.29%

* Real Estate Sector Average

Performance Comparison

EXR

Extra Space Storage

148.42

7.64

5.43%

CUBE

Cubesmart

42.67

1.87

4.58%

PSA

Public Storage

304.07

38.61

14.54%

NSA

National Storage Affiliates

36.64

1.84

5.29%

IIPR

Innovative Industrial Properties

54.61

-40.79

-42.76%

SELF

Global Self Storage

5.17

0.30

6.16%

Extra Space Storage Earnings Call Summary

Earnings Call Date:Apr 29, 2025

(Q1-2025)

% Change Since: 4.94%|

Next Earnings Date:Aug 05, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong overall performance with increased FFO, high occupancy, and successful growth initiatives. However, there were challenges from uncontrollable expense increases and economic uncertainties. Despite the challenges, the company's strategic initiatives and resilience in the sector contributed to a positive outlook.

Q1-2025 Updates

Positive Updates

Solid First Quarter Performance

Core FFO increased by 2% year-over-year to $2 per share. Same-store occupancy was at 93.4%, showing a 100 basis points improvement from the first quarter of 2024.

Strong External Growth Initiatives

Completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to the portfolio. Management Plus platform added a net of 100 properties, bringing the third-party managed portfolio to 1,675 stores.

Effective Capital Strategy

Executed two bond offerings, showing continued access to public debt markets. Maintained a conservative leverage profile with almost 90% of debt at fixed rates.

Positive Impact from Life Storage Assets

Former Life Storage assets showed improvements in leasing and pricing. Rentals at these stores are up 10.4% since rebranding.

Negative Updates

Uncontrollable Expense Increase

Uncontrollable expenses increased by 8% due to property tax pressure and weather-related expenses, leading to a same-store NOI decrease of 1.2%.

Challenging Economic Environment

Concerns about interest rates, volatility, and economic uncertainty remain, affecting the broader market.

Company Guidance

During Extra Space Storage's Q1 2025 earnings call, the company provided a robust outlook for the year. Key metrics highlighted included a 2% year-over-year increase in core funds from operations (FFO) to $2 per share and a historically high same-store occupancy rate of 93.4%, reflecting a 100 basis points improvement from Q1 2024. The company also reported a 0.3% same-store revenue growth driven by effective revenue management. External growth initiatives were underscored by $153.8 million in wholly-owned acquisitions and the addition of 12 stores to the portfolio. The bridge loan program remained active with $53.2 million in loans closed and a $1.4 billion loan balance maintained. The company's management plus platform expanded by 113 stores, reinforcing its industry-leading position with 1,675 third-party managed stores. Despite economic uncertainties, Extra Space Storage maintained its 2025 guidance, emphasizing the self-storage sector's resilience, a diversified portfolio, and strong operational strategies. The company ended the quarter with a conservative leverage profile and a 4.4% weighted average interest rate, demonstrating robust financial health and strategic growth planning.

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.