Extra Space Storage
This top REIT has very solid upside potential for investors and is a top pick across Wall Street. Extra Space Storage Inc. (NYSE: EXR) is a fully integrated, self-administered and self-managed REIT headquartered in Salt Lake City, Utah. Like many self-storage companies, Extra Space offers rentable storage space offering customers conveniently located and secure storage units across the country, including boat storage, recreational vehicle storage and business storage.
At the beginning of 2021, the company owned or operated 1,971 self-storage stores in 40 states, the District of Columbia and Puerto Rico. The portfolio consists of approximately 149.2 million square feet of rentable space and 1.4 million units, making the company the second-largest owner/operator of self-storage stores and the largest self-storage management company in the country.
Unitholders receive a 3.76% distribution. Truist Financial’s price objective on Extra Space Storage stock is $200, while the consensus target is up at $211.85. Shares closed on Wednesday at $161.50.
Public Storage
This giant self-storage leader has been a go-to REIT stock for investors for years. Public Storage Inc. (NYSE: PSA) is a fully integrated, self-administered and self-managed REIT that primarily acquires, develops, owns and operates self-storage facilities.
As of September 30, 2020, the company had interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States. It had an approximate 35% common equity interest in Shurgard Self Storage, which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand.
Furthermore, Public Storage had an approximate 42% common equity interest in PS Business Parks, which owned and operated approximately 28 million rentable square feet of commercial space.
Investors receive a 2.70% distribution. BofA Securities has a $396 price objective. The consensus figure is $385.75, and Public Storage stock closed at $304.17 a share on Wednesday.
These top stocks have been hammered as investors worry about the current interest rate increases, with more in the queue for July and beyond. However, the apartment and self-storage arena is not as compromised by the increases in interest rates as they have many fixed costs that do not vary as much as other REITs.
With that noted, despite all seven taking huge hits this year, there could be more downside, so it makes sense to scale buy shares, especially with the second quarter coming to an end and another round of earnings reports around the corner. Consumers will always need apartments and, as George Carlin once noted, a place to put all of their stuff, which bodes well for the self-storage stocks. Investors should keep in mind that REIT distributions may contain return of principal.
Originally posted at 24/7 Wall St.
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