Extra Space—Valuations on Par with the Industry



Peer group price to FFO multiple

Extra Space’s (EXR) funds from operation (or FFO) for 3Q17 stood at $1.13 per share. EXR’s FFO per share for 2017 is expected to be $4.32–$4.65. This expectation was increased by its strong operating performance.

The FFO growth rate for EXR for 3Q17 was 10.8%. The FFO growth rates for its peers Public Storage (PSA), CubeSmart (CUBE), and Life Storage (LSI) were lower than EXR at 3.2%, 10.5%, and 3.7%, respectively.

EXR has a price-to-FFO multiple of 20.6x. PSA has a slightly higher multiple at 22.1x while CUBE has a ratio of 18.5x. NSA and LSI stand at 18.0x and 16.8x, respectively. EXR is trading slightly higher than the industry average.

Article continues below advertisement

Peer group dividend yield

EXR has a dividend yield of 4.0%. LSI and NSA have dividend yields of 4.3% and 4.6%, respectively. EXR’s dividend yield is higher than CUBE and PSA, which have yields of 3.2% and 3.3%, respectively. EXR’s dividend yield is on par with the average dividend yield.

Peer group earnings per share

EXR has TTM (trailing-12-months) EPS (earnings per share) of $2.62. Among its peers, PSA’s TTM earnings per share are $6.85, LSI’s TTM earnings per share are $2.01, and NSA’s TTM earnings per share are $0.16.

EXR comprises ~2.0% of the PowerShares S&P 500 High Dividend Low Volatility Portfolio ETF (SPHD).


More From Market Realist