Truist raises Extra Space Storage stock price target on improving fundamentals

Truist Securities has increased its price target on Extra Space Storage shares to $172, up from $147, while keeping a Buy rating. The self-storage company revealed strong financials in its third-quarter report, with same-store revenue growth of 2.7% and a 4.6% increase in net operating income. Core funds from operations per share grew 4.3% to $2.17.

The company boasts a 75% gross profit margin over the past year and has delivered a 26% return year-to-date. Extra Space Storage's occupancy rate stands at 94%, up 30 basis points year-over-year, and move-in rates remain flat with positive occupancy spreads. The company has raised fiscal 2026 core FFO per share guidance to $8.40-$8.50 and increased acquisition guidance to $400 million.

Extra Space Storage plans to complete $600 million in redevelopments through 2028 at returns above 9% and has repurchased $491 million of shares in the past year. Investors can access a Pro Research Report for expert insights. The company maintains a net debt to EBITDA ratio of 5.2 times and over $1.7 billion in revolver capacity.

Truist highlighted higher financing costs and renewed Los Angeles pricing restrictions as factors to consider for fiscal 2027. Despite mixed earnings per share results, Extra Space Storage's stock has shown minimal movement in after-hours trading.