Extra Space Storage (EXR) Attains 800th Managed Store Count
Extra Space Storage Inc. EXR recently announced that its third-party management platform, ManagementPlus, has reached the milestone — the company’s 800th managed store. The REIT is the largest self-storage third-party manager in the United States and has also been recognized by Inside Self Storage as the Best Third-Party Management Company in the 2021 “Best of Business” reader-choice poll.
Robust growth of its third-party managed stores count reflects the partner groups’ confidence in Extra Space Storage’s expertise in managing the stores. In fact, managed properties comprise around 40% of Extra Space Storage’s facilities.
The company has been focusing on growth of its third-party management platform and Extra Space’s ManagementPlus has added more than 100 third-party managed stores to its platform in the year so far. Moreover, before the end of the year, the company expects to add approximately 200 total stores, thereby, adding significant scale. Apart from the third-party managed stores, the company managed 247 joint-venture locations and 958 wholly-owned locations as of Jun 30, 2021.
The company has been putting in efforts to grow its business and achieve geographical diversity through accretive acquisitions, mutually beneficial joint-venture partnerships, apart from the third-party management services. In addition to acquisitions, the company is making strategic investments through other channels in the storage sector, including preferred equity investments and bridge loan program.
Extra Space Storage has earned a solid recognition in the self-storage industry, gained an increased scale in several core markets on these acquisitions as well as fortified its presence in a number of new markets, and has emerged as the second-largest owner and/or operator of self-storage properties.
Moreover, the self-storage industry continues to benefit from favorable demographic changes. Specifically, migration and downsizing trend, and increase in the number of people renting homes have spurred the needs of consumers to rent spaces at storage facilities for parking their possessions. Further, demand for self-storage spaces has increased in the flexible working environment as well as an improving housing market, while move-outs remain low amid the health crisis, resulting in improved year-over-year occupancy trends.
As such, Extra Space is poised to ride this growth curve with high occupancy, which is leading to greater pricing power, a healthy balance-sheet position, high brand value and technological advantage.
Shares of this Zacks Rank #2 (Buy) company have outperformed the industry in three months’ time. The company’s shares have rallied 14.2%, while the industry has gained 2.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The Zacks Consensus Estimate for Public Storage’s PSA current-year FFO per share has moved up 1.1% to $12.35 in the past month. The company currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for OUTFRONT Media Inc.’s OUT 2021 FFO per share has moved 3.4% north to 90 cents over the past two months. The company carries a Zacks Rank of 2, currently.
Terreno Realty Corporation TRNO carries a Zacks Rank of 2, at present. The Zacks Consensus Estimate for the ongoing year’s FFO per share has been revised 1.8% upward to $1.69 over the past month.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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