Self-storage real estate investment trusts (REITs), which generate income by leasing storage units to tenants, have become popular among investors seeking stable and consistent returns.
I remain bullish on Extra Space Storage due to its strong operational performance, strategic growth through mergers, and consistent dividend payouts, despite industry challenges. EXR's valuation appears fair after a recent rally, so I'm cautious about deploying significant capital at current levels without a meaningful pullback. The Life Storage merger and expansion of third-party managed properties enhance EXR's market position and revenue streams, supporting long-term growth.
Extra Space Storage (EXR) is likely to benefit from the high brand value, accretive buyouts and a healthy balance sheet despite lower new customer rates.
Extra Space Storage's (EXR) Q2 results reflect higher occupancy. However, higher same-store operating expenses and increased interest expenses act as a spoilsport.
Storage REITs have faced concerns of oversupply and slowdown, but have shown impressive dividend growth in the last 3 years. Extra Space Storage Inc. has demonstrated the fastest dividend growth within the self-storage group, with solid financial results and successful merge with Life Storage. EXR's Q2 report shows solid growth in same-store revenues, rental income, and high occupancy rates, indicating a promising future for the company.
While the top- and bottom-line numbers for Extra Space Storage (EXR) give a sense of how the business performed in the quarter ended June 2024, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Extra Space Storage (EXR) came out with quarterly funds from operations (FFO) of $2.06 per share, beating the Zacks Consensus Estimate of $2 per share. This compares to FFO of $2.06 per share a year ago.
Beyond analysts' top -and-bottom-line estimates for Extra Space Storage (EXR), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended June 2024.
While Extra Space Storage's (EXR) Q2 results are likely to reflect gains from high brand value and a solid presence in key cities, lower new customer rates and high interest rates remain concerns.
High brand value, accretive buyouts and strategic investments bode well for Extra Space Storage's (EXR) performance. However, lower new customer rates and high interest rates are concerns.
As the stock market passes through mid-2024, it's vital to identify stocks for a market rally to capitalize on emerging growth trends. Here are three standout real estate investment trust (REIT) stocks.
Extra Space Storage (EXR) is likely to benefit from the high brand value, accretive buyouts and a healthy balance sheet. However, lower new customer rates and high interest rates are concerns.