Extra Space Storage Inc. Makes $300 Million Preferred Equity Investment In Jernigan Capital, Inc. ... Avoid the 'REIT rout' -- These 5 REITs are breaking out … The debt-to-equity ratio gives an indication of how much leverage a REIT takes on by comparing outstanding debt to the shareholder equity measured on the company balance sheet. Extra Space Storage Inc. is a fully integrated, self-administered, and self-managed REIT. The biggest risk among self-storage REITs right now is the threat of over-expansion. The company is the second largest owner and/or operator of self-storage properties in the U.S. and is the largest self-storage management company in the U.S. Nareit and Leader in the Light Award Winners Virtually Ring The Closing Bell® at the NYSE, Nareit's Leader in the Light Award Winners Share Sustainability Achievements and Goals. NEW YORK, May 9, 2017 /PRNewswire/ -- On Monday, May 08, 2017, the NASDAQ Composite, the Dow Jones Industrial Average, and the S&P 500 edged higher at the closing bell. Expansion took it first along the East and Gulf Coasts, and then into the Midwest before making it to the West Coast in 2016 with the acquisition that gave the self-storage REIT its current name. Extra Space Storage Inc. subsidiary Extra Space Storage LP acquired an additional $50 million of SmartStop Self Storage REIT Inc.'s series A convertible preferred stock. Commercial real estate and REITs are likely to begin to recover in 2021, with the pace of improvement driven by the availability and effectiveness of a vaccine. Finally, REITs are required to pay out most of their income to their shareholders. By both owning and operating facilities, Extra Space makes maximum use of its expertise and broadens its options beyond solely company-owned storage facilities. The REIT also offers ancillary related services, such as logistics support for receiving packages or retrieving items from storage, moving services like truck rentals and professional movers, organizational supplies, customized storage, and even office amenities like workstations with Wi-Fi. That tends to remain true regardless of whether the overall economy is strong or weak. In an environment in which mall occupancies are declining and technological changes like telecommuting could pose long-term threats to the office and mall REIT spaces, inertia serves self-storage REITs quite well. The self-storage real estate investment trust unit initially purchased $150 million of the preferred stock on October 29, 2019. They're typically measured as a percentage of square footage occupied divided by total square footage available. REITs then take their real-estate holdings and find ways to generate regular income from them, most commonly by leasing out the property to tenants. Extra Space Storage Inc. is a fully integrated, self-administered, and self-managed REIT. Interestingly, the REIT was originally opened as a financial planning firm, but it opened a Florida self-storage location shortly thereafter, in 1985, and then grew very quickly. Extra Space Storage By A.D. Pruitt. It's been expanding aggressively, spending billions of dollars to bring its total network to about 910,000 units and 103 million square feet of rentable space. In addition to traditional personal storage options, the company also highlights its selections for business, vehicle, and military storage. • Increased expenses by 5.6% compared to the same period in 2016 primarily due to higher property taxes and advertising costs. Investment to provide a 10.7% yield and result in the addition of 37 stores to the Extra Space Storage Operating Platform SALT LAKE CITY, Nov. 9, 2020 /PRNewswire/ -- Extra Space Storage Inc. (" Extra … Investors should expect newly built facilities to take time to ramp up to full capacity, but persistent high vacancy rates can indicate poor decision-making in picking a location for the self-storage facility. View Extra Space Storage Inc EXR investment & stock information. The November/December issue of REIT magazine features a profile of Tom Bartlett, CEO of American Tower, insights from investment bankers on REIT fundamentals for 2021, and much more. It's also the newcomer of the group, having come public back in 2015. Acquisition activity among the national self storage REITs increased significantly during the third quarter of 2020, and third-party management platforms continue to grow among the national self storage REITs… The group has outperformed the market by a wide margin since NAREIT began tracking data in 1994. One option available to these companies is to organize themselves as real-estate investment trusts, or REITs, in order to gain some tax advantages over other types of companies. “The work environment here is awesome. It's this second requirement that divides REITs into two large categories: equity REITs, which hold real estate directly and collect rental income from tenants; and mortgage REITs, which invest in mortgage-backed securities related to financing for real-estate investments by others. 6 in terms of owners and operators of self-storage facilities in the U.S., and its overall strategy is to take the best regional operators in the business and tie them together with markets that have the best fundamental prospects for growth. 1-202-739-9401 (fax). When new REITs initially form, they typically obtain capital from investors and seek to build up a portfolio of real-estate properties that fits with the intended purpose for that particular real-estate investment trust, through a combination of acquiring existing properties and constructing new ones. REITwise will be held virtually on March 23-25. In its most recent quarter, the REIT posted a nearly 5% rise in core funds from operations, with a better than 2% rise in same-store revenue among more than 2,000 facilities. EXR's dividend yield, history, payout ratio, proprietary DARS™ rating & much more! Dividend Payouts: Solid dividend payouts remain arguably the biggest attraction for REIT investors and Extra Space Storage remains committed to this purpose. For the real-estate businesses that want to elect REIT status, the payoff is that REITs are allowed to avoid taxation at the corporate level. With these five selections, you can choose from a well-diversified set of self-storage REITs that can help you round out your income-producing portfolio. Salt Lake City, UT 84121 “This property outperformance contributed to better-than-expected FFO growth of 6.1%, […] The rent these tenants pay then comes back to the REIT, which meets the expenses of operating its business and managing the properties. Instead, all of the tax attributes of the income and expenses the REIT receives and incurs get passed through to the individual shareholders of the REIT. Market data powered by FactSet and Web Financial Group. EXR has around 16.5M shares in the U.S. ETF market. REITs invest in the majority of real estate property types, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels. Yields in the 3% to 5% range are quite common for real-estate investment trusts, and some REITs pay even higher dividends. Public Storage owes its success to its early vision. The Buffalo-based company has about 700 self-storage facilities with more than 45 million square feet in 28 different states, and it serves about 390,000 customers. After having been off the radar for many investors who saw these facilities as low-rent, low-quality real-estate holdings, self-storage has shown how lucrative it can be, and that's invited more competition. As of December 31, 2019, the Company owned and/or operated 1,817 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. Rental rates and revenue per available square foot have showed consistent gains, and occupancy rates well above 90% show the high levels of demand for storage space right now. Evaluating real-estate investment trusts is different from looking at regular stocks. Life Storage is the highest-yielding self-storage REIT on this list, with a current yield of around 4.6%. Real Estate Investment Trust (REIT) in the S&P 500 What makes us Extra ordinary? Extra Space Storage is a real estate investment trust headquartered in Cottonwood Heights, Utah that invests in self storage units. Find company performance data, corporate information, and recent news. Get Extra Space Storage Inc (EXR:NYSE) real-time stock quotes, news and financial information from CNBC. The buyer was NSA Property Holdings LLC, an affiliate of National Storage Affiliates Trust in Greenwood, Colorado. Historically, the self-storage business was highly fragmented, with local owners typically having, at most, a few locations concentrated within a close distance. Public Storage Lif e Storage Inc CubeSmart Extra Space Natio nal Storage Affiliates $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3. Also, National Storage has seen its share price more than double, leaving its rivals on this list in the dust. Extra Space Storage Inc. is a US$16b large-cap, real estate investment trust (REIT) based in Salt Lake City, United States. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. Smart acquisitions of those local, mom-and-pop storage facilities have added up to a nationwide presence for the REIT, making it harder for other local owners to compete, and thereby clearing the field for further dominance in key markets. All rights reserved. CubeSmart aims to make itself the one-stop storage option for all sorts of customers. Early in its history, Public Storage saw the potential network effects that could come from pulling together self-storage facilities in different cities under one corporate umbrella, building a brand that those who needed storage space could rely on wherever they lived. As of December 31, 2019, the company owned and/or operated 1,817 locations in 40 states, Washington, D.C. and Puerto Rico, comprising approximately 140 million square feet of net rentable space in 1.3 million storage units. Five out of... | … About Extra Space Storage, Inc. 1-202-739-9400 In the initial closing, Extra Space Storage purchased $150 million in shares, and has committed to purchase up to an additional $50 million within 12 months. Combine that with the long-term share-price appreciation that the stock has shown, and Public Storage deserves its reputation as a strong leader in self-storage. Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. The potential for further share-price growth plus dividend income is a big draw for REIT investors, and self-storage has a lot of promise. Returns as of 01/26/2021. Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, raised more than $22,000 for Utah Food Bank (UFB) in December through a one-week virtual drive. Any remaining after-tax profit is available to the business, either to reinvest in more property, or to return to shareholders through dividends. Extra Space Storage Inc. is a company in the U.S. stock market and it is a holding in 164 U.S.-traded ETFs. Proven Track Record Having … Extra Space Storage Inc., headquartered in Salt Lake City, is a self-administered and self-managed REIT and a member of the S&P 500. According to JLL’s Self Storage REITS Q3 2020 report, the national self-storage REITs appear to be recovering from the market slow-down caused by the COVID19 pandemic in the early part … Suite 400 See on Scoop.it - BBG Extra Space Storage, Inc. (EXR): REIT investors turn from sector Seeking Alpha The only sectors showing gains in Q3 were self-storage (+7.45%) and hotel (+6.23%) REITs.See on seekingalpha.com Because of the 90% net income payout requirement for REITs, shareholders can feel confident that they'll get valuable dividends as long as the REIT remains profitable. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Extra Space Storage is a smaller company than Public Storage, but it's been aggressive in its efforts to expand. Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. The company has recently gone through a brand change, having previously been known under the Uncle Bob's Self Storage and Sovran Self Storage names. It's important to understand that self-storage REITs aren't a perfect investment. The smallest REIT on the list is National Storage Affiliates. Not every company that works with real estate is allowed to set itself up as a real-estate investment trust. Occupancy was a bit low, at 87%, but that arguably reflects the pace at which the self-storage specialist has worked to build up its portfolio of properties. The majority of REITs -- including all self-storage REITs -- own real estate directly, either purchasing or constructing appropriate buildings on their land. In just over three years, the REIT has almost doubled its quarterly payout, with seven increases in just a dozen quarterly periods. Millions of people across America have so many things that they need to find places outside of their homes to keep all their stuff. Extra Space Storage is scheduled to release quarterly numbers after market close. Size gives Public Storage the advantage of stability. This was higher than the 94.2% occupancy that Extra Space reported for the same period in 2019, but “ghost units” accounted for 200 basis points of their 2020 occupancy number. Extra Space Storage Inc. is a US$16b large-cap, real estate investment trust (REIT) based in Salt Lake City, United States. Also, turnover at self-storage facilities isn't as high as you might expect. 2795 East Cottonwood Parkway Dan Caplinger has been a contract writer for the Motley Fool since 2006. Smartstop Self Storage REIT, Inc. operates as a real estate investment trust. This payout ratio is at a healthy, … Yet Extra Space has also rewarded its shareholders with growth. National Association of Real Estate Investment Trusts® and Nareit® are registered trademarks of the National Association of Real Estate Investment Trusts (Nareit). Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, has received recognition for its sustainability practices from multiple organizations. Extra Space Storage … Extra Space Storage is the second-largest publicly traded self-storage REIT, having interest in or owning 1,906 properties across 40 states. Extra Space Storage is a self-administered and self-managed real estate investment trust (REIT). It's similar to net income for regular companies, but it excludes the extensive depreciation that real-estate investment trusts typically have because of their large portfolios of real-estate holdings. Within the Hoya Capital Storage REIT Index, we track the five largest self-storage REITs, which account for roughly $65 billion in market value: Public Storage , Extra Space Storage … ... REIT ratings for 2021 outlook 21 Dec 2020 - Seeking Alpha - Article. In particular, there are some specific metrics that apply to REITs that aren't relevant in most other industries, and they play a vital role in judging the relative success of different players in the industry. Self storage real estate investment trusts (REITs) have been excellent investments over the long term. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. Extra Space Storage CEO Joe Margolis said on the firm’s q2 2019 earnings call that the REIT saw a solid quarter with positive rate growth and healthy occupancy in a competitive summer leasing season. Storage and warehouse properties are in demand. ©Copyright Nareit 2021. Investors have seen that trend play out recently. Below are five of the most promising top self-storage REITs for investors to consider. Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, raised more than $22,000 for Utah Food Bank (UFB) in December … For income investors, Public Storage has been a reliable dividend-payer. There are companies that specialize in building, managing, and maintaining self-storage facilities. They do have risks associated with them, and it's important to assess those risks carefully before investing. In its most recent quarter, the company spent more than $300 million on acquisitions, including three operating stores and 41 properties to its third-party management platform. Most corporate real-estate businesses that aren't REITs have to pay corporate income tax on any net income they bring in. REIT status is also reserved for larger pools of investors. Extra Space Storage is America’s second largest public storage REIT, owning or operating over 1,400 properties in 38 states, Washington DC, and Puerto Rico. Search the REIT directory to learn more about individual companies. Extra Space has done a good job of treating dividend investors well, paying a current yield of 3.5% and having grown its quarterly payouts by more than eightfold since 2010. The dividend payout ratio of Extra Space Storage is 73.77%. Even when you ignore the impact of dividends, the REIT's share price has jumped more than 500% over the past decade. CubeSmart owns 485 stores with 33.8 million rentable square feet, with an occupancy rate of about 90% as of the first quarter of 2018. One of the biggest drivers has been the strong performance of Extra Space Storage (NYSE: EXR) in the last decade, as it was the top REIT … To qualify as a REIT, a company must be organized as a corporation and must have at least 100 shareholders. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. Because of the regular, dependable income storage-unit rentals provide, self-storage REITs can be a lucrative way for shareholders to benefit both from solid dividend yields and from the growth potential involved in developing new storage facilities. If too many players move into a given market, the result will be reduced occupancy rates that threaten profitability. With a long history of strong performance, CubeSmart is still well-positioned to keep growing. Fundamentally, National Storage is working hard to grow. The company has boosted its payout nine times in the past decade, quadrupling its payout since late 2007. All told, the REIT has more than 170 million rentable square feet of real estate, and based on the number of tenants it serves, Public Storage is one of the biggest landlords of any type in the world. 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