Extra Space Storage Inc. (EXR), headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT that owns and operates over 3,500 self-storage properties. Valued at $31.6 billion by market cap, the company offers customers a wide selection of conveniently located and secure storage units, including boat storage, RV storage, and business storage. The leading self-storage REIT is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Wednesday, Jul. 30.
Ahead of the event, analysts expect EXR to report an FFO of $2.06 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s FFO estimates in its last four quarterly reports.
For the full year, analysts expect EXR to report FFO of $8.17 per share, down 10.4% from $9.12 in fiscal 2024. However, its FFO is expected to rise 3.6% year over year to $8.46 per share in fiscal 2026.
EXR stock has underperformed the S&P 500 Index’s ($SPX) 11.7% gains over the past 52 weeks, with shares down 3.1% during this period. Similarly, it underperformed the Real Estate Select Sector SPDR Fund’s (XLRE) 7.9% gains over the same time frame.
EXR's underperformance can be attributed to lower new customer rates and intense competition in the highly fragmented self-storage market in the U.S. The development boom of self-storage units has affected its pricing power, leading to the need for more discounting. With high interest rates and substantial debt, the company may face more challenges in 2025.
On Apr. 29, EXR reported its Q1 results, and its shares closed up more than 3% in the following trading session. Its FFO of $2 per share beat Wall Street expectations of $1.96 per share. The company’s revenue was $820 million, falling short of Wall Street forecasts of $823.4 million. EXR expects full-year FFO in the range of $8 to $8.30 per share.
Analysts’ consensus opinion on EXR stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, eight advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 12 give a “Hold.” EXR’s average analyst price target is $163, indicating a potential upside of 8.8% from the current levels.
