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Extra Space Storage Inc.

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Shares of Extra Space Storage have outperformed its industry in three months’ time. Recently, the company has enhanced its balance-sheet strength by amending and restating its senior unsecured credit facility, increasing the total capacity by $200 million to reach a total of $1.35 billion. Apart from increasing the capacity, the move has enabled the company to lower its cost of debt. Notably, the company enjoys presence in key cities and opts for strategic joint ventures to drive long-term profitability. Focus on expansion of its geographical footprint through accretive acquisitions and third-party management platforms bode well for Extra Space Storage. Moreover, fragmented ownership in the self-storage industry offer scope for consolidation activities. Yet, many of its markets are witnessing an escalating supply of new self-storage space, and this is anticipated to fuel competition. Rate hike adds to its woes.


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