Updated! Extra Space Storage: Q4, 2009 + Post Call
Extra Space Storage's Q4 results came in better than expected. Improved net rental activity and the push-back of it's Harrison Street JV plus progress on the refinancing front were responsible. 2010 does not appear to hold any new investment activity or liquidity event. The REIT is rated at sector perform with average risk by
RBC Capital Markets.
BMO Capital Markets rated Extra Space Storage as market perform, believing weak fundamentals to continue into 2010 with poor consumer spending.
| |
Q4, 2008 |
Q4, 2009 |
| Reported FFO |
|
$0.22/share |
| Operating FFO |
|
$0.23/share |
| Occupancy |
83.6% |
83.6% |
| NOI growth |
1.4% |
-7.9% |
The reduction of near time financing risk and improved fundamentals is placing Extra Space Storage in a good position for 2010. EXR's geographical placement and investment in technology should see long term growth outperform for its sector and if appropriate investment opportunities arise, it will be able to benefit. RBC are maintaining its sector perform with average risk rating.
| |
2009A |
2010E |
2011E |
| Reported FFO |
$0.99/share |
$0.78/share |
$0.86/share |
| Operating FFO |
$0.92/share |
$0.78/share |
$0.86/share |
| Occupancy |
83.2% |
84.5% |
86% |
| Price Target |
|
$13.00/share |
|
The Q4, 2009 earnings call can be accessed here:
Extra Space Storage Disclosure: This article is based on a recent report prepared by analysts for RBC Capital Markets, which make a market in the securities of Extra Space Storage and may act as principal with regards to sales or purchases of this security.