The S&P 500 has rallied about 25% over the past year. It has risen thanks to a strong economy and moderating inflation, with the latter factor enabling the Federal Reserve to start reducing interest rates.
Investing in dividend stocks offers an opportunity to generate passive income. That passive income can grow each year if you reinvest the dividends and the dividend-paying corporation continues to increase its dividend each year.
EXR gains from high brand value, strategic buyouts, favorable demographics and a healthy balance sheet. Lower new customer rates and high unit supply ail.
Storage REITs have kept pace with the REIT average, with Extra Space Storage showing strong growth and a competitive yield in a high-demand sector. EXR's merger with Life Storage has boosted FFO but increased costs, with a modest FFO per share growth forecast and a healthy uptick in occupancy. EXR's balance sheet is strong with solid liquidity, but its dividend yield is below the "no-risk" rate, and the payout ratio is somewhat aggressive.
The bond market is acting strangely. Yields are rising despite rate cuts, and credit spreads are tightening. This unusual behavior is causing uncertainty and volatility. REITs, especially those sensitive to long-term interest rates, are becoming more attractive due to rising bond yields. This creates opportunities for investors seeking income and potential capital appreciation. This article explores three REITs that offer strong fundamentals, attractive valuations, and significant growth potential.
Extra Space Storage Inc. (NYSE:EXR ) Q3 2024 Results Conference Call October 30, 2024 1:00 PM ET Company Participants Jared Conley - Vice President, Investor Relations Joe Margolis - Chief Executive Officer Scott Stubbs - Chief Financial Officer Conference Call Participants Michael Goldsmith - UBS Todd Thomas - KeyBanc Capital Markets Caitlin Burrows - Goldman Sachs Spenser Allaway - Green Street Juan Sanabria - BMO Capital Markets Nick Yulico - Scotiabank Eric Wolfe - Citi Jeff Spector - Bank of America Eric Luebchow - Wells Fargo Hongliang Zhang - JPMorgan Jenny Li - Morgan Stanley Samir Khanal - Evercore ISI Omotayo Okusanya - Deutsche Bank Ki Bin Kim - Truist Operator Ladies and gentlemen, thank you for standing by. Welcome to the Third Quarter 2024 Extra Space Storage Earnings Conference Call.
EXR's Q3 results reflect higher revenues and a rise in occupancy. Higher interest expenses hurt.
Although the revenue and EPS for Extra Space Storage (EXR) give a sense of how its business performed in the quarter ended September 2024, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Extra Space Storage (EXR) came out with quarterly funds from operations (FFO) of $2.07 per share, beating the Zacks Consensus Estimate of $2.03 per share. This compares to FFO of $2.02 per share a year ago.
Evaluate the expected performance of Extra Space Storage (EXR) for the quarter ended September 2024, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
The real estate sector seems primed to recover as rates fall.
EXR is set to gain from its high brand value, need-based resilient storage business, diversified portfolio, accretive buyouts and healthy balance sheet.