Extra Space Storage: Solid All-Weather Value, Set To Move
Portfolio Pulse from
Extra Space Storage (EXR) is performing well in the storage REIT sector, showing strong growth and a competitive yield. The merger with Life Storage has increased FFO but also costs, with modest FFO per share growth expected. EXR has a strong balance sheet and liquidity, but its dividend yield is below the 'no-risk' rate, and the payout ratio is aggressive.
November 13, 2024 | 12:45 pm
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POSITIVE IMPACT
Extra Space Storage (EXR) is showing strong growth in the storage REIT sector. The merger with Life Storage has increased FFO but also costs, with modest FFO per share growth expected. EXR has a strong balance sheet and liquidity, but its dividend yield is below the 'no-risk' rate, and the payout ratio is aggressive.
EXR's merger with Life Storage has positively impacted FFO, indicating growth potential. However, increased costs and an aggressive payout ratio may concern investors. The strong balance sheet and liquidity are positive indicators, but the dividend yield being below the 'no-risk' rate could be a downside. Overall, the growth prospects and strong financial position suggest a positive short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100