Extra Space Storage Inc. (EXR), headquartered in Salt Lake City, Utah, is a major real estate investment trust (REIT) specializing in self-storage properties. Valued at a market cap of $30.2 billion, Extra Space Storage owns, operates, and manages hundreds of storage facilities across the U.S.
Companies valued at $10 billion or more are classified as "large-cap" stocks, and Extra Space Storage is a prime example of this, showcasing its substantial scale, stability, and influence within the self-storage industry. EXR stands out in the self-storage industry with its robust portfolio of properties, advanced digital marketing capabilities, and strong operational efficiencies. The company benefits from a geographically diverse footprint, offering resilience against regional market fluctuations.
However, its not all sunshine and rainbows for the stock. EXR shares are trading 20.5% below their 52-week high of $184.87, which they hit on Sep. 18. However, the stock has declined 18.5% over the past three months, underperforming the Real Estate Select Sector SPDR Fund’s (XLRE) 8.7% fall over the same time frame.
In the longer term, EXR is down 8.3% on a YTD basis, and the shares have dropped 3.4% over the past 52 weeks. XLRE has gained 1.8% in 2024 and 4% over the past year.
EXR has been trading under its 50-day moving average since early January and below its 200-day moving average since early October, which confirms its bearish trend.
On Oct. 29, the company released its stronger-than-expected Q3 results with FFO per share of $2.07 and revenue of $824.8 million. However, shares of Extra Space Storage fell marginally the trading session, driven by concerns about declining same-store revenues and a drop in same-store net operating income (NOI). The revised guidance, forecasting negative same-store NOI growth for the entire year, further weighed on the stock’s performance.
Highlighting the contrast in performance, rival Public Storage (PSA) has outperformed EXR, with a 1.5% gain over the past year.
Despite EXR's recent underperformance compared to the XLRE, analysts are moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy" from 18 analysts in coverage. The mean price target is $174.82, which indicates that the stock trades at a premium of 18.9% from the prevailing price levels.
