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.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart