Extra Space Storage Offers Unique Opportunity to Capitalize on Long-Term Growth
January 4, 2024
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The company provides an array of storage options, including climate-controlled units, vehicle storage, and traditional self-storage units. With stable financials and a commitment to expanding, Extra Space Storage ($NYSE:EXR) offers an attractive opportunity to capitalize on the growth of the self-storage industry. This is driven by a variety of factors, from population growth to the increasing demand for storage space for online retail purchases.
Additionally, the self-storage industry is considered recession-resistant due to the stability of its revenue streams. Extra Space Storage’s long-term outlook is bright, with a commitment to expanding its footprint and enhancing its services and amenities. The company’s current portfolio of properties includes a mix of owned and leased locations, giving it the flexibility to quickly respond to changing market conditions while also providing more options for its customers. Furthermore, its low overhead costs make it well positioned to benefit from the industry’s growth. With a strong financial position and commitment to expanding, Extra Space Storage is well positioned to capitalize on the sector’s continued expansion and offer attractive returns for investors.
Market Price
On Tuesday, their stock opened at $159.9 and closed at $164.4, indicating a 2.5% increase from its previous closing price of 160.3. This upswing suggests that ESS is in a good position to reap the benefits of their long-term growth strategy. ESS is well known for its commitment to providing customers with exceptional service and quality storage solutions. Their facilities are state-of-the-art and their customer service staff is highly experienced. Furthermore, they recently launched a new rental platform that allows customers to easily find, reserve, and manage their units online.
With increasing demand for storage solutions and a strong focus on customer experience, ESS is well-positioned to capitalize on long-term growth. The company’s recent price increase suggests that investors are beginning to recognize the potential of the company’s expanding portfolio of storage solutions and services. For investors looking for an opportunity to profit from long-term growth, ESS presents an attractive option. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for EXR. More…
| Total Revenues | Net Income | Net Margin |
| 2.27k | 790.11 | – |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for EXR. More…
| Operations | Investing | Financing |
| 1.33k | -2.04k | 842.95 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for EXR. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 27.63k | 12.06k | 68.81 |
Key Ratios Snapshot
Some of the financial key ratios for EXR are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | 51.1% |
| FCF Margin | ROE | ROA |
| – | – | – |
Analysis
GoodWhale conducted an analysis of EXTRA SPACE STORAGE’s wellbeing and found that the company is strong in terms of asset, dividend, growth, and profitability. Our star chart showed that the company has a high health score of 8/10 when it comes to its cashflows and debt, indicating that it is capable to pay off debt and fund future operations. Furthermore, our analysis classified EXTRA SPACE STORAGE as a ‘cow’, a type of company we conclude has the track record of paying out consistent and sustainable dividends. Therefore, investors who are seeking long-term investments with consistent returns may find EXTRA SPACE STORAGE to be an attractive option. More…
Peers
Extra Space Storage Inc is one of the leading self-storage providers in the United States. The company has a large network of facilities across the country and offers a wide range of storage solutions to its customers. Extra Space Storage Inc competes with other self-storage providers such as Global Self Storage Inc, National Storage Affiliates Trust, and Life Storage Inc.
– Global Self Storage Inc ($NASDAQ:SELF)
Global Self Storage is a publicly traded real estate investment trust that owns, operates, and develops self storage properties. Headquartered in New York, the company has over 500 storage facilities across the United States, Canada, and the United Kingdom. Global Self Storage is one of the largest self storage companies in the world with over 30 million square feet of storage space.
– National Storage Affiliates Trust ($NYSE:NSA)
National Storage Affiliates Trust is a publicly traded real estate investment trust focused on the ownership, operation and acquisition of self storage properties located throughout the United States. The company has a market cap of $3.68 billion as of March 2022. National Storage Affiliates Trust is headquartered in Denver, Colorado.
– Life Storage Inc ($NYSE:LSI)
As of 2022, Life Storage Inc has a market cap of 8.69B. The company is a self storage company that operates in the United States. The company has over 850 locations in 38 states.
Summary
Extra Space Storage is an attractive investment opportunity due its long-term growth prospects. The company is the second-largest operator of self-storage facilities in the U.S., with strong demand from customers seeking short-term and long-term storage solutions. Its competitive advantages include low cost of capital and access to prime real estate, leading to consistent revenue growth. Extra Space Storage’s revenues have experienced an uptick due to the increased demand for self-storage services, driven by the growing renter class and the need to store household items due to lifestyle changes.
Its strong balance sheet and access to capital make it well-positioned to benefit from current trends. Given its attractive growth prospects, Extra Space Storage is a good option for long-term investors looking for a profitable and stable investment.
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