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KeyBanc Capital Markets reiterated its Overweight rating on Extra Space Storage (NYSE:EXR) in a recent note as analyst Todd Thomas sees potential for the REIT to generate premium growth over the medium-term relative to peers.
The company continues to extract value and realize operating synergies from its $12.4B acquisition of Life Storage completed in July 2023, he wrote in a note to clients.
Going forward, he added, “we expect EXR’s revenue management platform, third-party management business, and external growth strategies (including its structured finance book) to provide additional support.”
On the other side of the fence, Thomas downgraded National Storage Affiliates Trust (NYSE:NSA) to Sector Weight from Overweight on the expectation that the company’s portfolio will keep lagging vs. peers against a backdrop of a weaker-than-expected demand environment.
“The challenging operating environment is likely to pressure occupancy and NOI growth for a more extended period of time than previously anticipated,” the analyst wrote, expressing caution about fundamentals over the near-term.
In Monday morning trading, (EXR) gained 1.2%, while (NSA) was little changed.
Seeking Alpha’s Quant system gives (EXR) the highest rating among publicly traded self-storage REITs, followed by CubeSmart (CUBE), Public Storage (PSA) and National Storage Affiliates (NSA).
