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EXR

Extra Space Storage NYSE:EXR Stock Report

Last Price

US$168.83

Market Cap

US$23.7b

7D

-3.2%

1Y

0.5%

Updated

29 Sep, 2022

Data

Company Financials +
EXR fundamental analysis
Snowflake Score
Valuation6/6
Future Growth2/6
Past Performance4/6
Financial Health3/6
Dividends5/6

EXR Stock Overview

Extra 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.

Extra Space Storage Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Extra Space Storage
Historical stock prices
Current Share PriceUS$168.83
52 Week HighUS$228.84
52 Week LowUS$156.70
Beta0.49
1 Month Change-16.03%
3 Month Change-3.18%
1 Year Change0.50%
3 Year Change44.73%
5 Year Change109.83%
Change since IPO1,250.64%

Recent News & Updates

Sep 16

Extra Space Storage acquires Storage Express for $590M to expand national portfolio

Extra Space Storage (NYSE:EXR) on Friday has completed its purchase of Storage Express, which owns 107 remote storage properties across Indiana, Ohio, Illinois and Kentucky, for approximately $590.0M.  The acquisition included all Storage Express assets, including trademarks, contracts, licenses, intellectual property and 14 future development sites, in a move that will expand EXR's national portfolio and operating platform. Furthermore, the REIT acquired a storage software operating platform dubbed E-Tracker, which supports Storage Express locations. "In addition to increased scale, this acquisition provides a new growth channel for Extra Space Storage to add smaller, remote-managed stores in both new and existing markets through acquisition and third-party management," said Extra Space Storage CEO Joe Margolis. The deal was funded partly by the issuance of $125.0M in operating partnership units, with the cash balance drawn from its credit facilities, the company said. EXR shares ticked up 0.3% in premarket trading. Previously, (Aug. 19) Extra Space Storage declared a quarterly dividend of $1.50 per share.

Aug 31

Extra Space Storage: High Quality Dividend REIT For Your Portfolio

Summary Extra Space Storage has been able to deliver consistent financial growth. Management has delivered immense shareholder value and has numerous policies in place that have resulted in and will continue to increase in shareholder return. Our valuation model finds that the company is undervalued significantly by the market based on its dividends alone. Company benefits from secular trends that will help protect the REIT from a material slowdown in the economy. Thesis Extra Space Storage, Inc. (EXR) is an attractive REIT that can provide shareholder value appreciation as well as dividend growth. The company has delivered solid revenue and earnings growth in the past decade, and management has been keen on maximizing shareholder value through stock price appreciation and dividend payouts. Based on our valuation, we believe that the stock is considerably undervalued, and recommend investors to purchase the REITs. Company Overview Extra Space Storage is a REIT that invests in personal storage units across the United States. The company is headquartered in Salt Lake City, and they operate over 2,000 self storage properties that include around ~1.5 million storage units. Extra Space Storage is a leader in this real estate segment, as the second largest owner/operator of self-storage properties in the United States. Year-to-date, the company's stock price returns have largely tracked the S&P 500 and outperformed the index, returning -9.44% YTD compared to -15.23% YTD return for the broader market index. The company currently has a trailing dividend yield of ~2.98% compared to S&P 500 yield of ~1.69%. EXR Year to Date Price Returns (Daily) data by YCharts Strong Financial Performance Extra Space Storage is a REIT that is firing on all cylinders, and the most recent quarter is no exception. The company reported a 21.7% YoY increase in Q2 same-store revenue as well as a 38.4% YoY increase in earnings per share at $1.73 per share. The constant revenue and earnings growth are good indicators that the company is on a good financial footing. In addition, as seen with the TTM Revenue and EPS history below in the last 10 years, the trend of strong growth can be seen, as both revenue and EPS have on average grown at a similar rate. We believe that the strong financial results and YoY growth are indicative of management's competence and secular trends that are helping the business grow. EXR EPS Diluted ((TTM)) data by YCharts Commitment to Shareholder Value Extra Space Storage has rewarded shareholders with the increased profitability of their investment portfolio. The company has grown its dividend substantially over the past decade, from $0.20 quarterly dividend per share to now $1.50 quarterly dividend per share. That's a 22.3% dividend CAGR over the past decade, which far outpaces any annual dividend growth in the S&P 500 in the same time frame. At a 3% dividend yield and a payout ratio of 82.5%, we believe that the company's dividend policies are attractive. EXR Company Presentation In addition, in that same time frame, the company's stock price has provided even better shareholder returns than its competitors, providing 918.4% total return for investors in the past decade. As seen below in management's presentation, the company is "best-in-class" in the both the storage sector and public REITs. We believe that shareholders will see this outstanding stock performance continue, as the company has continued to grow its revenue and earnings at a great pace. In addition, the company has recently begun to launch share buyback programs which should provide some support to the stock price and shareholder value appreciation. EXR Company Presentation Valuation We used the Gordon Growth Model to value the stock based on its forward annual dividend of $6.00 per share, and a slower dividend growth rate of 10.0%. We believe that this dividend growth rate is conservative for a company growing its dividend at a ~20%+ CAGR, and growing its earnings per share at a higher rate. In addition, we used the upper end of the discount rate of large-capitalization REITs, which is around ~12%. Based on these assumptions, we see that the stock price should be valued at around $330.00 per share, which presents a 64% upside from its current levels.

Shareholder Returns

EXRUS REITsUS Market
7D-3.2%-6.4%-3.1%
1Y0.5%-20.3%-21.5%

Return vs Industry: EXR exceeded the US REITs industry which returned -19.2% over the past year.

Return vs Market: EXR exceeded the US Market which returned -20.3% over the past year.

Price Volatility

Is EXR's price volatile compared to industry and market?
EXR volatility
EXR Average Weekly Movement3.4%
REITs Industry Average Movement4.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.8%

Stable Share Price: EXR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EXR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19774,309Joe Margolishttps://www.extraspace.com

Extra 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.

Extra Space Storage Inc. Fundamentals Summary

How do Extra Space Storage's earnings and revenue compare to its market cap?
EXR fundamental statistics
Market CapUS$23.74b
Earnings (TTM)US$891.17m
Revenue (TTM)US$1.79b

25.4x

P/E Ratio

12.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EXR income statement (TTM)
RevenueUS$1.79b
Cost of RevenueUS$407.72m
Gross ProfitUS$1.39b
Other ExpensesUS$495.90m
EarningsUS$891.17m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.65
Gross Margin77.28%
Net Profit Margin49.65%
Debt/Equity Ratio164.1%

How did EXR perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

66%

Payout Ratio