Buy Signal on Extra Space Storage (EXR-US)
EXR is a $15.3Bn market cap, and specializes in owning and managing self-service storage spaces. Revenue is mainly achieved by rental of storage spaces (87% of sales); while other revenues (13%) includes tenant insurance, development and ownership of storage spaces. The real estate portfolio, with a total rental area of 11,676,544.6 m2, is made up of 1,647 assets located in the United States and Puerto Rico.
Extra Space Storage is one of the largest self-storage REITs in the US, with a demonstrated track record of growing its revenues and dividend delivery (current dividend yield of 3%). The company enjoys strong operating profitability (over 55%) and is so far not impacted by the Covid crisis. This sector is generally recession-resistant, with high operating margins and low-Capex requirements. Revenue growth is driven by the fact that the self-storage industry is largely fragmented, allowing EXR to consolidate the industry.
Short term catalyst: Acquisitions, new capacities.
This signal looks mainly company specific .