Extra Space—Valuations on Par with the Industry
Peer group price to FFO multiple
Extra Space’s (EXR) funds from operation (or FFO) for 3Q17 stood at $1.13 per share. EXR’s FFO per share for 2017 is expected to be $4.32–$4.65. This expectation was increased by its strong operating performance.
The FFO growth rate for EXR for 3Q17 was 10.8%. The FFO growth rates for its peers Public Storage (PSA), CubeSmart (CUBE), and Life Storage (LSI) were lower than EXR at 3.2%, 10.5%, and 3.7%, respectively.
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EXR has a price-to-FFO multiple of 20.6x. PSA has a slightly higher multiple at 22.1x while CUBE has a ratio of 18.5x. NSA and LSI stand at 18.0x and 16.8x, respectively. EXR is trading slightly higher than the industry average.
Peer group dividend yield
EXR has a dividend yield of 4.0%. LSI and NSA have dividend yields of 4.3% and 4.6%, respectively. EXR’s dividend yield is higher than CUBE and PSA, which have yields of 3.2% and 3.3%, respectively. EXR’s dividend yield is on par with the average dividend yield.
Peer group earnings per share
EXR has TTM (trailing-12-months) EPS (earnings per share) of $2.62. Among its peers, PSA’s TTM earnings per share are $6.85, LSI’s TTM earnings per share are $2.01, and NSA’s TTM earnings per share are $0.16.
EXR comprises ~2.0% of the PowerShares S&P 500 High Dividend Low Volatility Portfolio ETF (SPHD).