One-glance verdict
Overvalued
$85.84 our estimate vs market $139.03
Wall Street consensus: $159.00 (85.2% higher than our fair-value estimate)
62% above our estimate, beyond the bull case
Fundamentals snapshot
Extra Space Storage Inc.
EXR · NYQ · Real Estate · REIT - Industrial
Current price
$139.03
52-week range
$125.71 - $158.88
Market cap
$30.68B
Balance sheet
Stretched
2.34x Stretched
Net debt $13.72B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 2.0% last year.
- Reward Returns 7.0% on equity, ahead of 20% of its peers.
- Risk Net debt grew 85.5% over 3 years.
- Risk Operating margin compressed from 53.9% to 45.9% over 3 years.
What this company does
Extra Space Storage Inc.
Extra Space Storage is a real estate investment trust (a company that makes money by owning and renting out properties) and is the largest self-storage operator in the United States. The company earns its money by collecting monthly rent from millions of customers who need space to store their belongings, RVs, or business items. This business model provides a steady, predictable stream of income from its thousands of locations across the country.
How the company got here
Founded in 1977 with a single location in Montana, Extra Space Storage grew steadily by developing and buying self-storage properties. A major turning point was becoming a publicly traded company in 2004, which provided the funds for larger acquisitions. In 2023, the company completed a massive merger with its competitor, Life Storage, making it the largest self-storage operator in the United States. This growth was also fueled by starting a program in 2008 to manage stores for other owners, which expanded its brand and reach.
What it actually does
Extra Space Storage is a Real Estate Investment Trust, or REIT (a company that owns and often operates income-producing real estate), that provides storage solutions for individuals and businesses. Customers can rent a wide variety of storage units, including spaces for boats, RVs, and business inventory, typically on a month-to-month basis. The company operates these facilities under brand names like Extra Space Storage and Life Storage. As the largest operator in the U.S., they focus on having clean, secure, and conveniently located properties.
Rental Operations
This is the company's main business, making up the vast majority of its revenue. It involves renting out storage units at the thousands of properties that Extra Space owns or co-owns with partners. Customers, who range from people moving homes to businesses needing extra space, pay a monthly fee for their unit. Because leases are short-term, the company can adjust rental rates frequently based on local demand.
Third-Party Management
A significant and growing part of the business involves managing storage facilities for other owners under the Extra Space brand. Through its ManagementPlus platform, the company handles day-to-day operations, marketing, and staffing for these properties in exchange for management fees. This allows Extra Space to earn income and expand its footprint without having to buy the properties outright. These relationships also create a pipeline for future acquisitions, as the company sometimes buys properties it previously managed.
Tenant Reinsurance
This segment provides insurance for customers' stored belongings. While customers are required to have insurance, they can purchase a protection plan directly from Extra Space. The company takes on the risk and pays out claims for events like fire, theft, or water damage, earning income from the monthly premiums customers pay. This offers a convenient option for renters and creates another stream of revenue for the company.
What management is betting on now
The company's strategy focuses on a multi-channel approach to growth, not just buying more properties. A key priority is expanding its third-party management platform, which increases its scale and provides valuable market data. Extra Space is also growing its bridge loan program, which offers short-term financing to other storage owners and often leads to management or acquisition opportunities. By using technology and data from its vast network, management aims to maximize rental income and operate more efficiently than competitors.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$309.15M
FY2024 Q4
$151.14M
FY2025 Q1
$345.38M
FY2025 Q2
$382.12M
FY2025 Q3
$444.19M
FY2025 Q4
$116.78M
FY2026 Q1
$477.50M
FY2026 Q2
$499.61M
Revenue
$874.15M
Net income
$263.47M
Diluted EPS
1.25
Operating cash flow
$586.41M
Free cash flow
$499.61M
Fetching…
Sources
Revenue
$856.03M
Net income
$240.98M
Diluted EPS
1.14
Operating cash flow
$489.86M
Free cash flow
$477.50M
Fetching…
Sources
Revenue
$857.47M
Net income
$287.39M
Diluted EPS
1.35
Operating cash flow
$367.80M
Free cash flow
$116.78M
Fetching…
Sources
Revenue
$858.46M
Net income
$166.00M
Diluted EPS
0.78
Operating cash flow
$457.13M
Free cash flow
$444.19M
Fetching…
Sources
Revenue
$841.62M
Net income
$249.73M
Diluted EPS
1.18
Operating cash flow
$543.86M
Free cash flow
$382.12M
Fetching…
Sources
Revenue
$820.00M
Net income
$270.88M
Diluted EPS
1.28
Operating cash flow
$481.40M
Free cash flow
$345.38M
Fetching…
Sources
Revenue
$821.90M
Net income
$262.49M
Diluted EPS
1.23
Operating cash flow
$408.28M
Free cash flow
$151.14M
Fetching…
Sources
Revenue
$824.80M
Net income
$193.21M
Diluted EPS
0.91
Operating cash flow
$468.35M
Free cash flow
$309.15M
Fetching…
Sources
Is it cheap or expensive?
Fair value $85.84 vs current price $139.03
Wall Street consensus is the average analyst price target: $159.00 (85.2% higher than our fair-value estimate).
Our most-likely fair value is $85.84 a share — about 38.3% below today's price of $139.03, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $13.7B. Interest coverage 2.3x.
Net debt
$13.72B
Interest coverage
2.34x
Extra Space Storage Inc.'s profit covers its interest bill about 2.3 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
EXR
BASELINE
Extra Space Storage Inc.
Total debt $14.41B Interest coverage 2.34x This is the baseline the peer rows are being compared against.
Total debt $10.18B Interest coverage 7.42x +217% vs EXR Carries about 3.2x more debt cushion than EXR.
Total debt $3.54B Interest coverage 3.93x +68% vs EXR Carries about 1.7x more debt cushion than EXR.
Total debt $2.01B Interest coverage 1.72x -27% vs EXR Carries about 1.4x less debt cushion than EXR.
Total debt $8.15B Interest coverage 1.28x -45% vs EXR Carries about 1.8x less debt cushion than EXR.
What you should know
The case for and against EXR
3 Rewards
3 Risks
Rewards
-
Revenue grew 2.0% last year.
-
Returns 7.0% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Net debt grew 85.5% over 3 years.
-
Operating margin compressed from 53.9% to 45.9% over 3 years.
-
Insider ownership is only 0.9% (peer median: 8.7%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.69x
Forward P/E
28.94x
P/B
2.22x
P/S
8.74x
EV/EBITDA
19.05x
PEG ratio
5.61x
Profitability
How much profit each dollar creates
Gross margin
74.9%
Operating margin
45.9%
Net margin
27.3%
ROE
7.0%
ROA
3.4%
Health
Liquidity and balance-sheet strength
Debt / equity
1.02x
Current ratio
0.89x
Quick ratio
0.30x
Total debt
$14.41B
Total cash
$696.60M
Growth
How the business has been compounding
Revenue TTM
$3.45B
Revenue 5Y CAGR
21.0%
EPS TTM
4.53
EPS 5Y CAGR
-10.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.90B
Free CF TTM
$1.83B
FCF margin
53.1%
Dividend
Shareholder payout
Yield
4.8%
Payout ratio
143.1%
Last ex-div date
2026-09-15