Should Extra Space Storage Stock be Retained in Your Portfolio Now?

Zacks12-06

Extra Space Storage EXR is well-positioned to gain from its high brand value, accretive buyouts and the self-storage industry’s need-based nature. A solid balance sheet position is likely to support ...

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A solid balance sheet position is likely to support ...</p>\n\n<a href=\"https://finance.yahoo.com/news/extra-space-storage-stock-retained-154100676.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Should Extra Space Storage Stock be Retained in Your Portfolio Now?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nShould Extra Space Storage Stock be Retained in Your Portfolio Now?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-06 23:41 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/extra-space-storage-stock-retained-154100676.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Extra Space Storage EXR is well-positioned to gain from its high brand value, accretive buyouts and the self-storage industry’s need-based nature. A solid balance sheet position is likely to support ...</p>\n\n<a href=\"https://finance.yahoo.com/news/extra-space-storage-stock-retained-154100676.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CUZ","symbol_name":"卡津斯不动产信托基金","start_time":0,"source_url":"https://finance.yahoo.com/news/extra-space-storage-stock-retained-154100676.html","article_id":"2489255982","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Ev_tIU5ISpaQ5VhHtkljDQ--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/23c511afca431213fbe7b29620c075b2"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2489255982","pubTimestamp":1733499660,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Extra Space Storage EXR is well-positioned to gain from its high brand value, accretive buyouts and the self-storage industry’s need-based nature. A solid balance sheet position is likely to support its growth endeavors. Consistent dividend payouts solidify shareholder confidence.However, the company is likely to face headwinds from lower new customer rates. The development boom of self-storage units in many markets is likely to continue affecting its pricing power.Though the shares of this storage REIT, carrying a Zacks Rank #3 , have risen 10.5%, underperforming theindustry’s growth of 13.5% in the past six months, analysts seem bullish. The Zacks Consensus Estimate for its 2024 funds from operations  has been revised marginally northward over the past month to $8.09.The company continues to see new customer price sensitivity and is likely to face headwinds from lower new customer rates in the near term. As such, the reacceleration in revenue growth is expected to be challenging unti","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CUZ":"卡津斯不动产信托基金","BK4084":"特种房地产投资信托","WELL":"WELLTOWER OP LLC","EXR":"Extra Space Storage Inc","BK4225":"医疗保健房地产信托","BK4194":"办公房地产投资信托","BK4585":"ETF&股票定投概念","BK4203":"医疗保健房地产投资信托","BK4588":"碎股","BK4223":"办公室房地产信托","BK4217":"自存仓储房地产信托"},"translate_title":"现在应该在您的投资组合中保留额外的空间存储股票吗？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CUZ":1,"EXR":1,"WELL":1},"content_text":"Extra Space Storage EXR is well-positioned to gain from its high brand value, accretive buyouts and the self-storage industry’s need-based nature. A solid balance sheet position is likely to support its growth endeavors. Consistent dividend payouts solidify shareholder confidence.\nHowever, the company is likely to face headwinds from lower new customer rates. The development boom of self-storage units in many markets is likely to continue affecting its pricing power.\nThough the shares of this storage REIT, carrying a Zacks Rank #3 (Hold), have risen 10.5%, underperforming the industry’s growth of 13.5% in the past six months, analysts seem bullish. The Zacks Consensus Estimate for its 2024 funds from operations (FFO) has been revised marginally northward over the past month to $8.09.\nImage Source: Zacks Investment Research\nWhat’s Aiding EXR?\nExtra Space Storage is the largest operator of self-storage properties in the United States, with 3,862 stores as of Sept. 30, 2024, in 42 states and Washington, D.C. With a geographically diversified portfolio and significant scale, the company is poised for long-term growth. We expect a year-over-year rise of 26.9% in the company’s total revenues in 2024.\nEXR has focused on consistently growing its business and achieving geographical diversity through accretive acquisitions. In the first three quarters of 2024, the company acquired 17 operating stores and three stores after construction for a total cost of around $226.6 million. Such buyouts highlight the company’s prudent capital management practices.\nThe self-storage asset category is need-based and recession-resilient in nature. This asset class has low capital expenditure requirements and generates high operating margins. The self-storage industry continues to benefit from favorable demographic changes. For 2024, we estimate year-over-year growth of 25.8% in property rental revenues.\nExtra Space Storage is focused on improving its balance sheet, reducing secured debt and increasing the size of its unencumbered pool. As of Sept. 30, 2024, the company's net debt to EBITDA was 4.8X. The percentage of unencumbered asset value to total asset value was 84.2%. With solid balance sheet strength, the company is well-poised to capitalize on external growth opportunities.\nEXR remains committed to increasing shareholders’ wealth through consistent dividend payouts. In the past five years, the company has increased its dividend six times, and the five-year annualized dividend growth rate is 13.64% (Check Extra Space Storage dividend history). With a robust operating platform, a healthy financial position and our core FFO growth projections of 23.8% in 2024, we expect the dividend payout to be sustainable in the upcoming period.\nWhat’s Hurting EXR?\nThe company continues to see new customer price sensitivity and is likely to face headwinds from lower new customer rates in the near term. As such, the reacceleration in revenue growth is expected to be challenging until the company regains pricing power with new customers.\nThere has been a development boom of self-storage units in many markets in recent years. This high supply has fueled competition, affecting the power to raise rents and turn on more discounting for EXR.\nDespite the Federal Reserve announcing rate cuts recently, the interest rate is still high and is a concern for EXR. The company has a substantial debt of around $11.8 billion as of Sept. 30, 2024. Our estimate indicates a year-over-year increase of 31.1% in interest expenses in 2024.\nStocks to Consider\nSome better stocks from the broader REIT sector are Welltower (WELL) and Cousins Properties CUZ, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.\nThe Zacks Consensus Estimate for Welltower’s 2024 FFO per share has been raised marginally northward over the past month to $4.26.\nThe Zacks Consensus Estimate for Cousins Properties’ current-year FFO per share has been revised marginally upward over the past month to $2.68.\nNote: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nCousins Properties Incorporated (CUZ) : Free Stock Analysis Report\nExtra Space Storage Inc (EXR) : Free Stock Analysis Report\nWelltower Inc. (WELL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2489255982"}