BNP Paribas Exane has started its analysis of Extra Space Storage (EXR, Financial), assigning it a Neutral rating. The financial institution has also set a target price of $156 for the company's stock. This indicates that while the outlook is steady, investors might not expect significant price movements in the near term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Extra Space Storage Inc (EXR, Financial) is $163.47 with a high estimate of $178.00 and a low estimate of $148.00. The average target implies an upside of 9.73% from the current price of $148.97. More detailed estimate data can be found on the Extra Space Storage Inc (EXR) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Extra Space Storage Inc's (EXR, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Extra Space Storage Inc (EXR, Financial) in one year is $156.49, suggesting a upside of 5.05% from the current price of $148.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Extra Space Storage Inc (EXR) Summary page.
EXR Key Business Developments
Release Date: April 30, 2025
- Core FFO: $2 per share, a 2% increase year-over-year.
- Same Store Occupancy: 93.4%, an improvement of 100 basis points from Q1 2024.
- Same Store Revenue Growth: 0.3% increase.
- Wholly Owned Acquisitions: $153.8 million, adding 12 stores.
- Joint Venture Dissolution: Realized an embedded promote of $1.7 million.
- Bridge Loan Program: $53.2 million in loans closed; $27.7 million in loans sold.
- Third-Party Managed Portfolio: Net addition of 100 properties, totaling 1,675 stores.
- Controllable Expenses: Reduced by 1.9% year-over-year.
- Uncontrollable Expenses: Increased by 8% due to property tax and weather-related expenses.
- Same Store NOI: Decrease of 1.2% compared to Q1 2024.
- Bond Offerings: $350 million at 5.17% (5-year) and $500 million at 5.4% (10-year).
- Weighted Average Interest Rate: 4.4%.
- Debt Profile: Almost 90% at fixed rates.
- Annual Acquisition Guidance: Increased to account for JV buyouts.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Extra Space Storage Inc (EXR, Financial) reported a solid first quarter with a core FFO of $2 per share, representing a 2% increase year-over-year.
- Same store occupancy remained high at 93.4%, showing resilience and effective management strategies.
- The company completed $153.8 million in wholly owned acquisitions, adding 12 high-quality stores to its portfolio.
- The management plus platform showed remarkable growth, adding a net of 100 properties, reinforcing its position as a leading third-party management provider.
- Extra Space Storage Inc (EXR) maintained a conservative leverage profile with almost 90% of its debt at fixed rates, insulating it from interest rate fluctuations.
Negative Points
- Uncontrollable expenses increased by 8% due to property tax pressure and weather-related expenses, leading to a same store NOI decrease of 1.2%.
- The company did not raise its guidance despite strong performance, indicating caution due to economic uncertainties.
- There is continued pressure from property taxes and other uncontrollable costs, which could impact future financial performance.
- The acquisition market remains muted with continued bid-ask spread issues, affecting potential growth opportunities.
- The company faces challenges from macroeconomic factors such as interest rate volatility and economic uncertainty, which could impact future performance.
