Key Stats for Extra Space Storage Stock
- Earnings Reaction: +4.56%
- Current Price: $152.75
- Valuation Model Target: $208.74
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What Happened?
Extra Space Storage (EXR) shares edged higher following its latest earnings report, gaining 4.56% on its reporting date to close at $152.75.
The self-storage REIT reported a resilient fourth-quarter performance that signaled a positive shift in industry fundamentals.
Total revenue for the quarter reached $857.5 million, surpassing the consensus estimate of $851.03 million.
The company also posted FFO per share of $2.08, surpassing the $2.03 analyst projection.
This steady performance comes at a critical time as the self-storage sector slowly recovers from a multi-year supply glut.
During the pandemic boom, developers aggressively built new storage facilities, temporarily depressing pricing power across the Sunbelt and major metropolitan markets.
However, new construction starts have tapered off significantly, allowing existing operators to finally absorb the excess capacity.
This stabilization allowed Extra Space to return to positive same-store revenue growth of 0.4% in the fourth quarter.
Furthermore, the company benefited from normalizing operating expenses, as previous spikes in commercial property taxes finally began to cool down.
See analysts’ growth forecasts and price targets for Extra Space Storage stock (It’s free!) >>>
Is Extra Space Storage Undervalued Today?
The TIKR Model indicates that the market is underpricing the REIT’s highly efficient management platform and its ability to compound capital through joint ventures and bridge loans.
The model projects a target price of $208.74, representing a lucrative 36.7% upside from current levels.
During the earnings call, CEO Joe Margolis highlighted the company’s operational momentum and aggressive capital deployment.
Margolis stated verbatim: “Overall, it was another solid year for Extra Space Storage. We generated positive same-store revenue and FFO growth, and our external growth platform is firing on all cylinders.“
He also addressed the broader macroeconomic environment and the ongoing absorption of competing properties.
Margolis added verbatim: “While only incremental, we are pleased to see progress in most of our markets as they absorb the new supply that was delivered in the last few years.“
Read the full Extra Space Storage Transcript on TIKR to see the revenue breakdown >>>
Valuation Deep Dive
The TIKR Advanced Valuation Model identifies Extra Space Storage as a premium operator capable of generating outsized returns despite a sluggish housing market.
- Target Price: $208.74
- Current Price: $152.75
- Annualized Return: 6.6%
The Third-Party Management Moat: Extra Space operates a massive third-party management platform, adding 379 stores to the program in 2025 alone to bring its total managed portfolio to 1,856 stores. This capital-light revenue stream generates high-margin fee income while functioning as a proprietary acquisition pipeline.
Algorithmic Pricing Power: Unlike traditional real estate, self-storage leases are month-to-month, allowing operators to adjust prices dynamically. Extra Space utilizes advanced machine learning algorithms to price every unit type in every building nightly. As market supply continues to normalize, this technological advantage will allow them to maximize revenue and push move-in rates higher.
Conclusion: A highly defensive REIT with an accelerating growth engine. With a projected 36.7% total return potential, Extra Space Storage offers investors a technologically advanced play on the real estate sector. The path to $208 is secured by easing supply pressures, sophisticated pricing algorithms, and a dominant third-party management platform.
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How Much Upside Does Extra Space Storage Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
