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Extra Space Storage Inc (EXR) Stock

Extra Space Storage Inc Stock Details, Movements and Public Alerts

Extra Space Storage (EXR): The $35B Self-Storage REIT Dominating America's Clutter Economy

When Americans relocate, downsize, renovate, or simply accumulate too much stuff, Extra Space Storage provides the 5x10 units and climate-controlled spaces that keep possessions accessible. CEO Joe Margolis has built the nation's largest self-storage platform through disciplined acquisitions, organic development, and the transformative 2023 Life Storage merger that added 1,200+ properties. The business model combines predictable rental income with dynamic pricing algorithms that optimize revenue per available square foot. Customers exhibit remarkable stickiness—average tenancy exceeds 14 months as moving belongings proves more hassle than continuing payments. Trading at 22x forward FFO after declining from pandemic-era peaks, Extra Space offers REIT investors defensive income with 4%+ dividend yield and exposure to fragmented industry consolidation. The integration of Life Storage creates $100M+ annual synergies while expanding geographic reach and operating platform scale.

52-Week Range

$157.45 - $118.40

-15.30% from high · +12.64% from low

Avg Daily Volume

1,450,639

Latest volume

Fundamentals

Valuation Metrics

P/E Ratio (TTM)

29.04

Above market average

Forward P/E

26.67

Earnings expected to grow

PEG Ratio

3.34

Potentially overvalued

Price to Book

2.02

EV/EBITDA

17.18

EPS (TTM)

$4.58

Price to Sales

8.61

Beta

1.27

Similar volatility to market

How is EXR valued relative to its earnings and growth?
Extra Space Storage Inc trades at a P/E ratio of 29.04, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 26.67 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 3.34 indicates a premium valuation even accounting for growth.
What is EXR's risk profile compared to the market?
With a beta of 1.27, Extra Space Storage Inc is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 2.02 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Performance & Growth

Profit Margin

27.70%

Operating Margin

46.30%

EBITDA

$2.26B

Return on Equity

6.79%

Return on Assets

3.35%

Revenue Growth (YoY)

3.40%

Earnings Growth (YoY)

-14.20%

How profitable and efficient is EXR's business model?
Extra Space Storage Inc achieves a profit margin of 27.70%, meaning it retains $27.70 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 46.30% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 6.79% and ROA at 3.35%, the company achieves moderate returns on invested capital.
What are EXR's recent growth trends?
Extra Space Storage Inc's revenue grew by 3.40% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings decreased by 14.20% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against REIT - INDUSTRIAL industry averages for proper context.

Dividend Information

Dividend Per Share

$6.48

Dividend Yield

4.99%

Ex-Dividend Date

Dec 15, 2025

Dividend Date

Dec 31, 2025

What dividend income can investors expect from EXR?
Extra Space Storage Inc offers a dividend yield of 4.99%, paying $6.48 per share annually. This high yield exceeds 4%, significantly outperforming the S&P 500 average of 1.5-2% and most investment-grade bonds. For income-focused investors, this represents an attractive cash flow opportunity, though high yields sometimes signal market concerns about sustainability. To receive the next dividend, shares must be purchased before the ex-dividend date of Dec 15, 2025.
How reliable is EXR's dividend for long-term investors?
The dividend sustainability can be assessed through the payout ratio - Extra Space Storage Inc pays $6.48 per share in dividends against earnings of $4.58 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Dec 31, 2025.

Company Size & Market

Market Cap

$29.5B

Revenue (TTM)

$3.42B

Revenue/Share (TTM)

$16.15

Shares Outstanding

212.25M

Book Value/Share

$64.16

Asset Type

Common Stock

What is EXR's market capitalization and position?
Extra Space Storage Inc has a market capitalization of $29.5B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 212.25M shares outstanding, the company's ownership is relatively concentrated. As a participant in the REIT - INDUSTRIAL industry, it competes with other firms in this sector.
How does EXR's price compare to its book value?
Extra Space Storage Inc's book value per share is $64.16, while the current stock price is $133.36, resulting in a price-to-book (P/B) ratio of 2.08. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

Analyst Ratings

Analyst Target Price

$155.00

16.23% upside potential

Analyst Recommendations

Strong Buy

4

Buy

5

Hold

12

Sell

0

Strong Sell

0

How reliable are analyst predictions for EXR?
21 analysts cover EXR with 43% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $155.00 implies 16.2% upside, but targets are often adjusted to follow price moves rather than predict them.
What is the Wall Street consensus on EXR?
Current analyst recommendations:4 Strong Buy, 5 Buy, 12 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

Fundamentals last updated: Dec 13, 2025, 08:26 AM

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Extra Space Storage (EXR) Stock Analysis 2025: Self-Storage REIT Guide

The Self-Storage Leader

Extra Space Storage transformed from a regional operator into America's self-storage titan through CEO Joe Margolis's acquisition-driven strategy. The 2023 Life Storage merger proved watershed, combining #2 and #3 operators into an undisputed leader with 3,900+ facilities under ownership or management. Margolis, CEO since 2017 after serving as Chief Investment Officer, brought disciplined capital allocation and technology innovation that differentiates Extra Space from fragmented competitors. The company now manages 5,600+ total properties including third-party management clients, creating platform economics that smaller operators cannot match.

Self-storage benefits from remarkably stable fundamentals. Customers rent space for life transitions (moving, divorce, death, college), business storage, and simple overflow from cramped living spaces. Once belongings enter a unit, inertia takes over—retrieving items requires effort, so tenants continue paying. Average tenancy exceeds 14 months industry-wide, with Extra Space likely higher given its premium positioning. Move-out decisions often stem from life events rather than price sensitivity, enabling rent increases that drive same-store revenue growth. CEO Joe Margolis leverages this behavioral economics through sophisticated revenue management systems that dynamically price units based on demand, seasonality, and competitive positioning.

Business Model & Competitive Moat

Extra Space generates revenue through facility rentals, tenant insurance programs, and third-party management fees. The rental model is elegantly simple: acquire or develop properties, optimize occupancy through marketing and pricing, and compound returns through rent growth and expense efficiency. Tenant insurance—required for most rentals—generates 80%+ margins and represents a meaningful profit contributor. Third-party management for 1,700+ properties creates fee income while expanding the data ecosystem that powers pricing algorithms.

Competitive moats derive from scale, technology, and brand recognition. Extra Space's 3,900+ facilities create geographic coverage that drives web traffic and customer acquisition efficiency. Proprietary revenue management systems process demand signals across all locations, optimizing prices in real-time with granularity that smaller operators cannot replicate. The Extra Space brand benefits from 25+ years of marketing investment and customer trust. However, self-storage remains fragmented—REITs control only 20-25% of the $40B+ market—creating both consolidation opportunity and competitive pressure from sophisticated new entrants.

Financial Performance

  • •Revenue: $3.3B+ annually following Life Storage integration, growing 3-5% same-store plus acquisitions
  • •FFO: $8.50+ per share with 4-6% growth as synergies realize and development pipeline delivers
  • •Occupancy: 94%+ average occupancy with 85%+ economic occupancy (rent-paying square feet)
  • •Margins: 75%+ NOI margins typical of self-storage REITs with minimal operating expenses
  • •Dividend: $6.48/share annually (4.3% yield) with 70% FFO payout and 13-year growth streak
  • •Valuation: 22x forward FFO, premium to peers reflecting scale and technology leadership

Growth Catalysts

  • •Life Storage Synergies: $100M+ annual run-rate savings from revenue management, G&A, and procurement by 2025
  • •Industry Fragmentation: 75%+ of self-storage remains mom-and-pop, offering acquisition pipeline at accretive valuations
  • •Third-Party Management: 1,700+ managed properties generating fees while expanding pricing data ecosystem
  • •Development Pipeline: $500M+ annual development/joint ventures creating properties at better returns than acquisitions
  • •Street Rate Recovery: Post-pandemic rate normalization creating easier comps and pricing power restoration

Risks & Challenges

  • •Supply Concerns: Record deliveries in 2024-2025 creating occupancy pressure in overbuilt markets
  • •Rate Normalization: Post-pandemic pricing power moderating; street rates down YoY in many markets
  • •Integration Execution: Life Storage merger success depends on synergy realization and cultural integration
  • •Interest Rate Sensitivity: REIT valuations sensitive to rates; debt refinancing at higher costs compresses FFO
  • •Economic Cyclicality: Business storage and move-related demand vulnerable to recession

Competitive Landscape

Public Storage (PSA) historically dominated self-storage with 2,800+ US facilities, but Extra Space's Life Storage merger created a larger platform with more modern technology infrastructure. Public Storage's legacy systems and owner-operator culture contrast with Extra Space's centralized revenue management approach. CubeSmart (CUBE) operates 600+ facilities with strong Northeast presence. National Storage Affiliates (NSA) pioneered the PRO structure enabling partnerships with regional operators. Private equity firms including Brookfield have accumulated significant portfolios, intensifying acquisition competition.

Extra Space's competitive advantage lies in revenue management sophistication. CEO Joe Margolis invested heavily in pricing algorithms that analyze competitor rates, demand patterns, and customer behavior to optimize rental pricing across 3,900+ facilities. This technology edge compounds with scale—more data points enable better pricing decisions. Smaller operators cannot match this capability, making Extra Space's third-party management attractive for owners seeking institutional-quality operations. The question is whether technology advantages persist as competitors invest in similar systems.

Who Is This Stock Suitable For?

Perfect For

  • ✓Income investors seeking 4%+ yield from defensive real estate
  • ✓REIT allocators wanting self-storage exposure through the market leader
  • ✓Long-term holders betting on industry consolidation thesis
  • ✓Investors comfortable with premium valuation for quality and scale

Less Suitable For

  • ✗Value investors unwilling to pay 22x FFO premium
  • ✗Growth seekers wanting double-digit annual returns
  • ✗Investors concerned about near-term supply headwinds
  • ✗Those uncomfortable with integration execution risk

Investment Thesis

Extra Space Storage offers premium self-storage exposure through America's largest platform with technology-driven operations. CEO Joe Margolis's Life Storage integration creates scale advantages and synergies that smaller competitors cannot match. The 4.3% dividend yield with 13 years of growth provides reliable income while industry fragmentation offers continued consolidation opportunity. Customer stickiness (14+ month tenancy) and 75%+ NOI margins create defensive cash flow characteristics that support the dividend through economic cycles.

Near-term headwinds from new supply and rate normalization create uncertainty that has compressed the stock 30%+ from pandemic peaks. The 22x forward FFO valuation reflects quality but offers limited margin of safety if same-store growth disappoints. Investors should weigh Extra Space's proven execution and scale advantages against cyclical concerns and integration risks. For long-term REIT portfolios, Extra Space merits core allocation as the self-storage category leader. More aggressive entry points may emerge if supply concerns intensify, creating buying opportunities for patient investors.

Conclusion

Extra Space is a HOLD/BUY for income-focused REIT investors seeking self-storage exposure through the industry leader. The 4.3% yield with growth supports total return in the 7-10% range matching historical REIT performance. Premium valuation limits near-term upside, but scale advantages and consolidation optionality justify patience. Accumulate on weakness below $125 for more attractive entry points; current levels offer fair value for quality self-storage assets.
Bull Case
$175 (30% upside) - Synergies exceed guidance, supply headwinds ease, rate growth accelerates
Base Case
$145 (8% upside) - Integration executes as planned, 3-4% same-store growth, dividend grows 4-5%
Bear Case
$105 (20% downside) - Supply overhang persists, rate cuts required, recession impacts demand

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