Extra Space Storage (NYSE: EXR) is
a fully integrated, self-administered and self-managed real estate investment trust that operates 651 self-storage properties in 33 states and Washington, D.C. The company's properties consist of approximately 448,000 units and 47 million square feet, rented by over 330,000 individual tenants. In addition to on-site management and storage supplies, many of the firm's facilities feature monitored video surveillance and alarm-equipped units. Extra Space Storage is the second largest operator of self-storage in the United States.
The firm pleased investors earlier in the week, when it announced Q1 funds from operations of 28 cents per share and revenues of $65.7 million. Analysts had been expecting 25 cents and $60.6 million. Management also guided Q2 FFO to 30-31 cents per share (29 cent consensus) and FY08 FFO to $1.23-$1.27 per share ($1.19 consensus).
The news
kept the issue cycling through a positive 14-week trading channel. The price is currently consolidating near the base of that channel, suggesting the potential for a rise back toward the top. The approximate correspondence of the stock's 30-day moving average curve to the base of the channel backs the rebound notion.
Brokers recommend the shares with one "strong buy," three "buys" and six "holds." The EXR Price to Book ratio (1.87), Price to Cash Flow ratio (15.40), Sales Growth rate (22.12%), EPS Growth rate (16.67%) and Operating Margin (34.66%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 95% of the outstanding shares. The stock is one of those used to calculate the S&P U.S. REIT Composite. Over the past 52 weeks, it has traded between $12.33 and $18.95. A stop-loss of $14.85 looks good here.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.
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