SALT LAKE CITY - Extra Space Storage Inc. (NYSE: NYSE:EXR), a leader in self-storage solutions, announced a dividend of $1.62 per share for the third quarter of 2024. This dividend is to be paid on September 30, 2024, to shareholders who are on record as of the close of business on September 16, 2024.
Extra Space Storage operates as a real estate investment trust (REIT) and is included in the S&P 500 index. As of June 30, 2024, the company managed 3,812 self-storage properties. These properties account for approximately 2.6 million units and about 292.0 million square feet of rentable space under various brand names, including Extra Space, Life Storage (NYSE:LSI), and Storage Express.
The company's facilities cater to a diverse set of needs, offering storage units for personal, business, boat, and RV use, strategically located for convenience and security. With the largest footprint in the United States in terms of self-storage properties, Extra Space Storage continues to provide accessible storage options to customers nationwide.
This dividend declaration reflects the company's commitment to providing value to its stockholders and is consistent with its previous distributions. The information provided in this article is based on a press release statement from Extra Space Storage Inc.
In other recent news, Extra Space Storage has seen several significant developments. Truist Securities has adjusted its outlook on the company, raising the price target to $167 and maintaining a Hold rating. The firm's analyst projected a slight increase in the company's 2024 funds from operations (FFO) per share, while also forecasting a decline in same-store revenue (SSREV) in the third and fourth quarter of 2024.
In a strategic financial move, Extra Space Storage issued $400 million in aggregate principal amount of 5.350% Senior Notes due January 15, 2035. This was done through an underwritten public offering, guaranteed by Extra Space Storage Inc. and two Massachusetts business trusts. The notes were sold at 99.973% of their principal value and will bear interest semi-annually.
BofA Securities downgraded Extra Space Storage from a Neutral to an Underperform rating, citing a challenging outlook influenced by factors such as diminishing demand for storage services and weaker market demand in areas like Florida. Despite these challenges, the company exceeded its projected FFO per share in the second quarter and raised the lower end of its FFO guidance for 2024.
Finally, Extra Space Storage reported robust performance for the second quarter, surpassing its projections for FFO per share and noting a significant improvement in same-store occupancy and revenue growth. Despite facing pricing pressures and competition in the market, the company has raised the lower end of its FFO guidance for 2024, signaling confidence in its operational strategy and future performance.
InvestingPro Insights
Extra Space Storage Inc. (NYSE: EXR) has recently declared a dividend for the third quarter of 2024, marking yet another instance of the company's consistent shareholder returns. An InvestingPro Tip highlights that Extra Space Storage has raised its dividend for 14 consecutive years, showcasing a strong commitment to returning value to its investors. Moreover, analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance.
In terms of financial metrics, Extra Space Storage boasts a market capitalization of $37.18 billion, underscoring its significant presence in the Specialized REITs industry. The company trades at a high earnings multiple with a P/E ratio of 43.65, reflecting investor confidence in its growth prospects. Furthermore, the robust revenue growth of 55.85% over the last twelve months as of Q2 2024 demonstrates the company's ability to expand its operations effectively.
Investors considering Extra Space Storage as a potential addition to their portfolio can find additional insights on InvestingPro. The platform offers a total of 9 InvestingPro Tips, including analysis on the company's liquidity, profitability, and long-term returns, which can be accessed at https://www.investing.com/pro/EXR. These tips may provide valuable context and aid in making informed investment decisions.
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