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How Wall Street Analysts Rated the Top 3 Self-Storage REITs after 2Q17

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Aug. 25 2017, Published 9:33 p.m. ET

Analysts’ ratings and target prices

A comparison of the performance of the self-storage REITs during 2Q17 can be understood from the analysts’ ratings for these companies.

Public Storage was assigned a target price of $208.21, a 3.3% premium from the current price level. One analyst assigned the company a “buy” rating. While 14 analysts assigned a “hold” rating on the company, two analysts assigned a “sell” or a “strong sell” rating for the company.

Investors are bullish about the strategic initiatives implemented by the company to boost sales. These properties are situated in Class A cities, which feature robust income growth and demand for self-storage.

Extra Space Storage’s (EXR) analyst target price is $81.13, up 7% from its current price level. Five analysts rated the stock as a “strong buy” or “buy.” Nine analysts rated the stock as a “hold.” One analyst rated the stock as a “sell.”

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Investors appear bullish about the strategic initiatives of the company and its properties in Class A cities. EXR is optimistic about its future performance and has enhanced its outlook for fiscal 2017. Moreover, the company hiked its dividend in 2Q17, which made analysts bullish on the stock. However, the company’s rising cost has made analysts apprehensive about its future performance in a rising interest rate environment.

CubeSmart (CUBE) was assigned a target price of $27.33, up 13.4% from the current price level. Six analysts rated the stock a “strong buy” or a “buy,” six analysts rated the stock as a “hold,” and one analyst rated the stock as a “sell.” CubeSmart has reported higher-than-expected results in 2Q17. The company’s continued business momentum has made analysts optimistic about its fundamentals.

The iShares Trust – iShares Residential Real Estate Capped ETF (REZ) has 100% exposure to REITs. EXR, PSA, CUBE, and Equity Residential (EQR) constitute 22% of REZ’s portfolio.

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