Extra Space Storage Inc. (EXR) is a self-managed real estate investment trust (REIT) that owns, operates, manages, acquires, develops, and redevelops self-storage properties in 40 states, Washington D.C., and Puerto Rico.
The company generated 85% of its revenue from Property Rental, 11% of its revenue from Tenant Reinsurance, and 4% of its revenue from Management Fees and Other Income in 2020. With 1,135,000 tenants across 40 states, the company’s operations are spread out across the Northeast (16%), California (14%), Midwest (13%), Southeast (12%), and Florida/P.R. (12%).
Strong Q4 Financial Results
Extra Space Storage reported fourth quarter revenue that rose 5.3% to $353.49 million, beating consensus estimates by $60.4 million, with FFO of $1.48 per share, beating consensus estimates by 13 cents. Same-store occupancy also rose from 92.4% in 2019 to 94.8% in 2020, which helped boost same-store revenue by 2.3% and net operating income by 3.4% in 2020.
Several analysts upgraded the stock following the strong Q4 financial results. BMO Capital, for instance, upgraded the stock to Outperform, citing the strongest Q4 and 2021 guidance versus peers driven by “solid internal growth and robust external investments.”
The company raised its quarterly dividend by 11.1% to $1.00 per share, which represents a 3.15% forward yield. The dividend is payable on March 31, 2021 to shareholders on record as of March 15, 2021.
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