Extra Space Storage Inc

Extra Space Storage (EXR) is expected to report its Q3 2018 results on October 30. Wall Street expects AFFO of $1.19 per share.

Extra Space is trading at a premium compared to CubeSmart and Life Storage and at a discount to Public Storage.

Since its conversion to an REIT in 2004, Extra Space Storage (EXR) has paid regular quarterly cash dividends to its shareholders.

Acquisitions have helped Extra Space (EXR) expand its domestic footprint. It has acquired properties worth $4.5 billion in the last five years.

Extra Space has adopted digital marketing platforms, including social media and search engines, to drive traffic at its facilities.

Extra Space’s top-line and bottom-line results have been seeing YoY (year-over-year) growth for the past several quarters.

Extra Space Storage (EXR), set to report its Q2 results on July 31, could continue to benefit from self-storage demand rising.

AvalonBay’s revenue grew 7% in the first quarter, driven by rental and other income.

In the first quarter, Extra Space Storage’s (EXR) revenue grew 9%, driven by property rental, tenant reinsurance, and management fees.

Analysts gave EXR a mean price target of $87.93, implying an ~1.5% rise from its current level of $86.72. It has a market capitalization of ~$10.9 billion.

EXR’s FFO per share for 2017 is expected to be $4.32–$4.65.

EXR increased its fixed debt ratio to 80.0% in 3Q17 from 76.1% in 2Q17.

Extra Space’s (EXR) stock price has risen from $12.77 in 2008 to $83.80 in January 2018. EXR has returned 705.4% in the past ten years.

EXR’s occupancy rate in 2Q17 was 94.5% compared to 94.1% in 2Q16.

Extra Space (EXR) holds 12% of its total properties in the form of joint ventures and 32% managed for third parties—the largest in the industry.

Extra Space Storage’s (EXR) revenue grew 27% and 13% in 2016 and 9M17, respectively.

Extra Space Storage’s (EXR) analyst target price is $81.13, up 7% from its current price level.

Public Storage (PSA) trades at an EV-to-EBITDA multiple of ~21.5x.

CubeSmart issued two notes of $50.0 million each, carrying interest of 4.4% and 4.0% and maturity dates of 2023 and 2025, respectively.

During 1H17, CubeSmart acquired two properties located in Maryland and California worth $21.9 million.

Although Public Storage did not provide any guidance for net operating income expected during fiscal 2017, analysts expect the company to report flat YoY NOI of ~$2.0 billion during 2Q17.

Self-storage REITs are experiencing solid growth in income and revenues in 2017. In this series, we’ll analyze the 2Q17 results for Public Storage (PSA), Extra Space Storage (EXR), and CubeSmart (CUBE).

Analysts have assigned PSA a mean price target of $217.67, which is 4.9% higher than its current price level.

Public Storage has consistently been able to return capital value as well as shareholder returns in the form of dividends and share buybacks.

Public Storage (PSA) is expected to witness a higher cost of debt in 2Q17, mainly due to the Fed’s rate hikes in 2017.

Public Storage (PSA) is expected to post flat top-line and bottom-line results in 2Q17.

Wall Street expects PSA to report adjusted FFO (funds from operation) of $2.40, compared with $2.54 in 2Q16.

Wall Street analysts expect Public Storage (PSA) to report NOI (net operating income) of $483.7 million for 2Q17.

Wall Street expects Public Storage (PSA) to report revenue of $667.9 million for 2Q17. Its earnings call will be on July 27, 2017.

Analysts expect PSA to report adjusted FFO (funds from operation) of $2.40, compared with $2.54 in 2Q16.

The value of an REIT such as Public Storage (PSA) is commonly measured by using its price-to-FFO (funds from operations) multiple.

REITs such as Public Storage (PSA) distribute at least 90% of their taxable incomes to shareholders in the form of dividends and share repurchases.

Public Storage (PSA) has regularly rewarded its shareholders in the form of quarterly dividends. The company has paid a dividend in every quarter since 1981.

In a higher household income scenario, people tend to spend more on acquiring properties and need more storage space. This need boosts demand for self-storage facilities.

REITs will likely be significantly affected by rising interest rates. Rising mortgage rates will increase the cost of purchasing investment properties.

Public Storage (PSA) puts a great deal of focus on the development and redevelopment of its existing facilities. Recently, there’s been a trend of rising rent for self-storage facilities.

Self-storage facility owners such as Public Storage are expected to ride high backed by higher demand for storage, mainly due to demographic changes and higher rent.

Macroeconomic factors such as high rent and demographic changes have resulted in high demand for self-storage facilities.

Rent growth has moderated, but it remains at record highs. In such a scenario, consumers prefer apartments whose rents are affordable. This is where self-storage REITs come in.

Specialized REITs and residential REITs within IYR generated positive returns of 0.2% and 9%, respectively, on a yearly basis.

Self-storage REITs own and operate self-storage facilities like rooms, lockers, containers, and outdoor space. Tenants include businesses and individuals.