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Factors to Impact Extra Space Storage's (EXR) Q4 Earnings
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Extra Space Storage (EXR - Free Report) is slated to report fourth-quarter and full-year 2021 results on Feb 23 after market close. Its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year increases.
In the last reported quarter, this Salt Lake City, UT-based self-storage real estate investment trust (REIT) delivered a surprise of 8.19% in terms of FFO per share. Results reflected strong average occupancy and higher average rates to new and existing customers.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 5.91%. The graph below depicts this surprise history:
Let’s see how things have shaped up before this announcement.
Factors to Consider
In the fourth quarter, Extra Space Storage is likely to have benefited from its solid presence in key cities and measures to boost the company’s geographical footprint through accretive acquisitions and third-party management.
The self-storage industry continues to gain from favorable demographic changes. The migration and downsizing trend and an increase in the number of people renting homes have spurred the need of consumers to rent spaces at storage facilities for parking their possessions.
Further, demand for self-storage space is shooting up in the flexible working environment and improving housing market, while move-outs remain low amid the health crisis, resulting in improved year-over-year occupancy trends. This REIT’s high occupancy is resulting in greater pricing power.
Extra Space Storage is also likely to have benefited from high brand value and technological advantage and maintained a healthy balance-sheet position.
Amid these, this REIT is likely to have seen growth in revenues in the quarter to be reported with healthy rental rates.
Management and franchise fees for the quarter are projected at $16.89 million, indicating an improvement from the prior-year quarter’s $13.83 million. The Zacks Consensus Estimate of $361 million for quarterly property rental revenues suggests an increase from the year-ago period’s $301 million. The Zacks Consensus Estimate of $429.6 million for quarterly revenues suggests a 21.5% increase year over year.
However, the company operates in a highly fragmented market in the United States, with intense competition from numerous private, regional and local operators. In addition, there is a development boom of self-storage units in several markets. This high supply is likely to have fueled competition.
Extra Space Storage’s activities during the quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unrevised at $1.85 in a month. However, it calls for a 25% year-over-year rise.
EXR projects full-year 2021 core FFO per share in the range of $6.75-$6.85. The company’s full-year projections are backed by same-store revenue growth assumptions of 12.5-13.5%, a same-store NOI increase of 18-19.5% and $700 million in acquisitions.
For the full year, the Zacks Consensus Estimate for FFO per share has remained unrevised at $6.86 over the past month. The figure indicates a 29.9% increase year over year on revenues of $1.6 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Extra Space Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that is not the case here.
Extra Space Storage currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the REIT sector — Pebblebrook Hotel Trust (PEB - Free Report) , Life Storage, Inc. and National Storage Affiliates Trust (NSA - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Pebblebrook Hotel Trust, slated to release fourth-quarter earnings on Feb 22, has an Earnings ESP of +15.74% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Life Storage, scheduled to report quarterly numbers on Feb 24, has an Earnings ESP of +0.66% and carries a Zacks Rank of 3.
National Storage Affiliates Trust, slated to report quarterly numbers on Feb 22, has an Earnings ESP of +1.06% and carries a Zacks Rank of 2.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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Factors to Impact Extra Space Storage's (EXR) Q4 Earnings
Extra Space Storage (EXR - Free Report) is slated to report fourth-quarter and full-year 2021 results on Feb 23 after market close. Its quarterly revenues and funds from operations (FFO) per share are likely to have witnessed year-over-year increases.
In the last reported quarter, this Salt Lake City, UT-based self-storage real estate investment trust (REIT) delivered a surprise of 8.19% in terms of FFO per share. Results reflected strong average occupancy and higher average rates to new and existing customers.
Over the trailing four quarters, the company surpassed the Zacks Consensus Estimate on each occasion, the average beat being 5.91%. The graph below depicts this surprise history:
Extra Space Storage Inc Price and EPS Surprise
Extra Space Storage Inc price-eps-surprise | Extra Space Storage Inc Quote
Let’s see how things have shaped up before this announcement.
Factors to Consider
In the fourth quarter, Extra Space Storage is likely to have benefited from its solid presence in key cities and measures to boost the company’s geographical footprint through accretive acquisitions and third-party management.
The self-storage industry continues to gain from favorable demographic changes. The migration and downsizing trend and an increase in the number of people renting homes have spurred the need of consumers to rent spaces at storage facilities for parking their possessions.
Further, demand for self-storage space is shooting up in the flexible working environment and improving housing market, while move-outs remain low amid the health crisis, resulting in improved year-over-year occupancy trends. This REIT’s high occupancy is resulting in greater pricing power.
Extra Space Storage is also likely to have benefited from high brand value and technological advantage and maintained a healthy balance-sheet position.
Amid these, this REIT is likely to have seen growth in revenues in the quarter to be reported with healthy rental rates.
Management and franchise fees for the quarter are projected at $16.89 million, indicating an improvement from the prior-year quarter’s $13.83 million. The Zacks Consensus Estimate of $361 million for quarterly property rental revenues suggests an increase from the year-ago period’s $301 million. The Zacks Consensus Estimate of $429.6 million for quarterly revenues suggests a 21.5% increase year over year.
However, the company operates in a highly fragmented market in the United States, with intense competition from numerous private, regional and local operators. In addition, there is a development boom of self-storage units in several markets. This high supply is likely to have fueled competition.
Extra Space Storage’s activities during the quarter were not adequate to gain analysts’ confidence. The Zacks Consensus Estimate for quarterly FFO per share has remained unrevised at $1.85 in a month. However, it calls for a 25% year-over-year rise.
EXR projects full-year 2021 core FFO per share in the range of $6.75-$6.85. The company’s full-year projections are backed by same-store revenue growth assumptions of 12.5-13.5%, a same-store NOI increase of 18-19.5% and $700 million in acquisitions.
For the full year, the Zacks Consensus Estimate for FFO per share has remained unrevised at $6.86 over the past month. The figure indicates a 29.9% increase year over year on revenues of $1.6 billion.
Here Is What Our Quantitative Model Predicts:
Our proven model does not conclusively predict a surprise in terms of FFO per share for Extra Space Storage this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an FFO beat. However, that is not the case here.
Extra Space Storage currently carries a Zacks Rank #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are three stocks from the REIT sector — Pebblebrook Hotel Trust (PEB - Free Report) , Life Storage, Inc. and National Storage Affiliates Trust (NSA - Free Report) — that you may want to consider as our model shows that these have the right combination of elements to report a surprise this quarter.
Pebblebrook Hotel Trust, slated to release fourth-quarter earnings on Feb 22, has an Earnings ESP of +15.74% and carries a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Life Storage, scheduled to report quarterly numbers on Feb 24, has an Earnings ESP of +0.66% and carries a Zacks Rank of 3.
National Storage Affiliates Trust, slated to report quarterly numbers on Feb 22, has an Earnings ESP of +1.06% and carries a Zacks Rank of 2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.