#7 - Extra Space Storage (NYSE:EXR)
The last stock on our list is Extra Space Storage (NYSE:EXR). Extra Space is a self-storage REIT that is generally considered to be a recession-resistant stock. The fact is that many consumers will continue to pay to store their belonging which is where the pricing power comes from. Also, the company is projecting funds from operation (FFO) to increase by 18% this year. That’s up 510 basis points from its prior outlook.
Over the last five years, shares of EXR stock have increased in price by 121%. That’s exceptional growth for a REIT known more for paying out a significant percentage of its earnings as a dividend. Extra Space Storage has an annualized dividend payout of $6, which calculates to a dividend yield of 3.54%.
About Extra Space Storage
Extra Space Storage Inc, headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, DC The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands.
More about Extra Space Storage- Current Price
- $133.77
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 7 Buy Ratings, 5 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $167.25 (25.0% Upside)
Once prices go up, they rarely go down. Everything from a gallon of gas to the price of your morning coffee costs more than it did just a few years ago. And that price was more than it was a few years before that. And in most cases, consumers have been willing to pay that price without giving it much thought. That's what pricing power means.
Every business owner knows that they have to raise prices at some point. And companies with pricing power can raise prices without reducing demand for their products.
The companies listed in this presentation have products that are either unique or essential in the eyes of their customers. And that means providing value relative to its competition. That leads to consistent revenue, stable if not growing profits, and a predictable growth rate.
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