This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Unlocking Extraordinary Returns With Extra Space

Stocks in this article: EXR

Kirk: Growth! Extra Space has had 30+% funds from operations growth for the last two years. We feel we can continue to produce double-digit FFO growth through the following levers:

Core performance: We continue to lead the sector in operational performance. (I referred to people, properties and platform earlier.)

Tenant insurance: As mentioned, we are growing this business that is highly profitable.

Acquisitions: We acquired 55 properties in 2011 and 60 so far in 2012. We have been disciplined and paid prices that will make these acquisitions accretive to our shareholders.

Lease-up portfolio: Having developed several assets, we have the largest lease-up portfolio that is poised to add 7+ cents of FFO to the bottom line by the end of 2014.

Third-party management: As I mentioned, we use this program to spread expenses and to provide us with a quasi-proprietary acquisition pipeline.  

Thomas: I believe I saw that your company leads not only the self-storage sector but perhaps even the entire equity REIT sector in total return. What is driving the growth and how much more of a "runway" do you see in future years (for storage)?  

Kirk: Correct, Extra Space Storage is #1 on five-year total return to investors from ALL REITs and has 26 consecutive quarters of double-digit growth.

Within the self-storage space, we top return year-to-date (39.49%), last 12 months (65.73%), last two years (137.23%), last three years (260.38%) and last five years (173.05%). We have a proven track record of growing and delivering solid returns, even during downturns.  

I've touched on many of the drivers of our growth in the previous questions. Another factor is the lack of supply. In the years 2003-2007, the industry averaged 2,600 new facilities per year. Now, only a couple hundred new properties are coming on line each year. This gives us a tremendous opportunity to expand our footprint through acquisition and third-party management contracts.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

5 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,655.04 +298.17 1.72%
S&P 500 2,045.56 +32.67 1.62%
NASDAQ 4,725.8240 +81.5120 1.76%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs