For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Extra Space Storage (EXR) ten years ago? It may not have been easy to hold on to EXR for all that time, but if you did, how much would your investment be worth today?
Extra Space Storage's Business In-Depth
With that in mind, let's take a look at Extra Space Storage's main business drivers.
Headquartered in Salt Lake City, UT, Extra Space Storage Inc. is a notable name in the self-storage industry. This real estate investment trust (REIT) offers a vast array of well-located storage units to its customers, including boat storage, recreational vehicle storage and business storage.
The company makes concerted efforts to consistently grow its business and achieve geographical diversity through accretive acquisitions, mutually beneficial joint-venture partnerships and third-party management services.
As of Jun 30, 2021, Extra Space Storage had ownership stakes in, or managed 1,973 self-storage stores in 40 states and Washington, D.C. Out of these 1,973 stores, the company wholly owned 958 stores. It managed 768 stores for third parties and 253 stores in joint ventures, with total stores under management of 1,021. The company is the largest self-storage management company in the United States.
The company's stores comprised 1.4 million units and 152.6 million square feet of rentable space. The stores are located in Atlanta, GA; Baltimore, MD; Washington, D.C.; Boston, MA; Chicago; Dallas, TX; Houston, TX; Las Vegas, NV; Los Angeles; Miami, FL; New York City; Orlando, FL; Philadelphia, PA; Phoenix AZ; St. Petersburg/Tampa, FL and San Francisco/Oakland, CA. Extra Space Storage is the second largest owner and/or operator of self-storage properties.
Moreover, on Jul 19, Extra Space Storage announced onboarding of their 2,000th property. The company has doubled the store count since 2013. Presently, it operates more than 2,000 stores across 40 states and Washington, D.C., which provide 1.4 million units, generating 156 million square feet of rentable space.
Note: All EPS numbers presented in this report represent funds from operations (“FFO”) per share. FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Extra Space Storage, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in October 2011 would be worth $8,862.25, or a 786.22% gain, as of October 25, 2021, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 267.04% and the price of gold went up 1.32% over the same time frame.
Going forward, analysts are expecting more upside for EXR.
Shares of Extra Space Storage have outperformed the industry over the past six months. In addition, recent trend in estimate revisions for 2021 funds from operations (FFO) per share indicates a favorable outlook for the company. The company has an enhanced focus on expansion through accretive acquisitions, mutually beneficial joint-venture partnerships and a third-party management platform and has recently reached its 800th managed store count. With a solid presence in key cities and expansion moves, Extra Space is one of the top operators of self-storage spaces in the United States. Though development boom in many markets might lead to stiff competition, Extra Space is poised to ride the growth curve with high occupancy, which is leading to greater pricing power, a healthy balance-sheet position, high brand value and technological advantage.
The stock has jumped 7.72% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 3 higher, for fiscal 2021; the consensus estimate has moved up as well.
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Extra Space Storage Inc (EXR) : Free Stock Analysis Report
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