Extra Space Storage Inc. (NYSE:EXR) is a prominent real estate investment trust (REIT) that specializes in self-storage facilities. As of December 31, 2023, the company owned and operated 3,714 self-storage stores across 42 states and Washington, D.C. These stores encompass approximately 2.6 million units and 283.0 million square feet of rentable space, operating under the Extra Space, Life Storage, and Storage Express brands.
On October 29, Extra Space Storage is set to report its third-quarter earnings for 2024. Analysts on Wall Street anticipate the company to post an earnings per share (EPS) of $2.03, a slight increase from $2.02 in the same period last year. Quarterly revenue is expected to reach $751.03 million, up from $650.89 million in the previous year.
The stock price of Extra Space Storage has fluctuated within a 52-week range of $101.19 to $184.87. With a dividend yield of 3.76%, the company paid out $6.48 per share in dividends over the last 12 months. This consistent dividend payout has made Extra Space Storage an attractive option for income-focused investors.
In the second quarter of 2024, the company reported an FFO (funds from operations) of $2.06, surpassing the consensus estimate of $2. However, revenues of $697.10 million fell short of the expected $728.755 million. Despite this, CEO Joe Margolis expressed optimism about the company’s performance, citing strong occupancy levels and revenue growth.
For investors looking to generate a steady income from Extra Space Storage dividends, owning approximately 185 shares of stock would yield around $100 per month, totaling $1,200 annually. The calculation involves dividing the desired annual income by the dividend yield to determine the required investment value.
The current interest rate environment has presented income-seeking investors with unique opportunities, such as investing in private credit funds. Arrived Homes, a platform backed by Jeff Bezos, offers a Private Credit Fund with a target annual yield of 7% to 9%, paid monthly. With a minimum investment of only $100, this fund provides an alternative to traditional REIT investments.
In conclusion, Extra Space Storage remains a compelling option for investors seeking consistent income through dividends. With a track record of dividend hikes for the past 14 years, the company continues to attract income-focused investors. As the real estate market evolves, exploring alternative investment opportunities like private credit funds can provide additional avenues for generating passive income.
