Extra Space Storage Shares Are Down As Weak Demand, Low Housing Churn Clouds Future
Portfolio Pulse from Lekha Gupta
Extra Space Storage Inc. (NYSE:EXR) shares are down following a downgrade by Bank of America Securities due to weak demand and low housing churn. The company missed sales expectations but exceeded FFO estimates. The analyst lowered the price target and revised FFO estimates downward for 2025 and 2026. Investors can gain exposure via iShares Residential and Multisector Real Estate ETF (NYSE:REZ) and Principal Real Estate Active Opportunities ETF (NYSE:BYRE).
August 05, 2024 | 6:52 pm
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NEGATIVE IMPACT
Principal Real Estate Active Opportunities ETF (BYRE) may experience some impact due to its exposure to Extra Space Storage Inc. (EXR), which has been downgraded by Bank of America.
BYRE has exposure to EXR, which has been downgraded and is facing weak demand. This could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Extra Space Storage Inc. shares are down after Bank of America downgraded the stock to Underperform from Neutral, citing weak demand and low housing churn. The company missed sales expectations but exceeded FFO estimates. The analyst also lowered the price target and revised FFO estimates downward for 2025 and 2026.
The downgrade by Bank of America and the missed sales expectations are likely to negatively impact EXR's stock price in the short term. The lowered price target and revised FFO estimates further contribute to the negative outlook.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
iShares Residential and Multisector Real Estate ETF (REZ) may see some impact due to its exposure to Extra Space Storage Inc. (EXR), which has been downgraded by Bank of America.
REZ has exposure to EXR, which has been downgraded and is facing weak demand. This could negatively impact the ETF's performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50