Extra Space Storage Inc.
Extra Space Storage, Inc. (ticker: EXR) is a US real estate investment trust (REIT) specialising in self-storage properties. With a market capitalisation of about $31.95 billion, it is among the largest publicly traded storage operators, owning and managing hundreds of facilities across many states. The company earns revenue from rental income and ancillary services such as insurance and supplies, and grows through rent optimisation, higher occupancy, acquisitions and selective development. Investors often focus on occupancy rates, rent per square foot, same-store revenue trends and the pipeline for acquisitions and new facilities. Strengths include scale, brand recognition and a technology-led approach to pricing and customer experience. Key risks are sensitivity to interest rates and borrowing costs, local supply-and-demand shifts, competition and execution risk on new investments. This note is for educational purposes only and not personalised advice; investors should consider suitability, diversification and consult an independent financial adviser before investing.
Why It's Moving
Extra Space Storage Shares Wobble After Mixed Q3 Results and Revised Dividend Outlook
Extra Space Storage (EXR) showed slight earnings beat in Q3 2025 driven by higher occupancy, yet struggled with revenue shortfalls and rising expenses, prompting cautious investor reaction. The company also announced a sizable dividend with a high payout ratio, reflecting its confidence but raising sustainability questions amid margin pressures.
- Core Funds From Operations (FFO) per share rose slightly to $2.08, beating estimates and signaling stable earnings growth despite tough conditions.
- Quarterly revenue missed consensus at $858.5 million due to increased same-store and interest expenses, which pressured overall profitability.
- Announced a 4th quarter dividend of $1.62 per share (5.0% yield) with a payout ratio exceeding 140%, underscoring strong shareholder returns but potential cash flow constraints.
Extra Space Storage Shares Wobble After Mixed Q3 Results and Revised Dividend Outlook
Extra Space Storage (EXR) showed slight earnings beat in Q3 2025 driven by higher occupancy, yet struggled with revenue shortfalls and rising expenses, prompting cautious investor reaction. The company also announced a sizable dividend with a high payout ratio, reflecting its confidence but raising sustainability questions amid margin pressures.
- Core Funds From Operations (FFO) per share rose slightly to $2.08, beating estimates and signaling stable earnings growth despite tough conditions.
- Quarterly revenue missed consensus at $858.5 million due to increased same-store and interest expenses, which pressured overall profitability.
- Announced a 4th quarter dividend of $1.62 per share (5.0% yield) with a payout ratio exceeding 140%, underscoring strong shareholder returns but potential cash flow constraints.
Stock Performance Snapshot
Analyst Rating
Analysts suggest holding Extra Space Storage's stock with a target price of $153.68, indicating possible growth.
Financial Health
Extra Space Storage is performing well with solid profits and cash flow, indicating strong business health.
Dividend
Extra Space Storage's high dividend yield of 6.03% makes it very appealing for investors seeking regular income. If you invested $1000 you would be paid $60.30 a year in dividends (based on the last 12 months).
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Baskets Featuring EXR
Real Estate
Is it sunset or sunrise for real estate stocks? This carefully selected group of property investments, handpicked by our professional analysts, offers exposure to everything from data centers to residential properties and commercial real estate trusts.
Published: May 29, 2025
Explore BasketWhy You’ll Want to Watch This Stock
Occupancy & Rent Growth
Occupancy rates and rent per square foot underpin cash flow; revenue management tools can boost returns, though local demand and competition can change outcomes.
National Footprint Benefits
A wide geographic presence offers diversification and operational scale, but results will still differ by region and property type.
Rate And Capital Sensitivity
As a REIT, EXR is sensitive to interest rates and funding costs; acquisitions and development support growth but add capital and execution risks.
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