Commercial real estate had been one of the sectors that have been significantly impacted by the pandemic. However, there are a few REIT sectors that seem to have benefitted from the pandemic. Self-storage is one such sector. Extra Space Storage is a REIT that invests in self-storage units. It owns or operates an area of 140 million square feet and is the second-largest owner of self-storage units in the US. Extra Space Storage has seen its earnings grow 16X over the past decade as demand for self-storage has grown significantly. The company’s scale, together with future solid demand for self-storage units, is expected to drive long-term growth. Extra Space Storage is among the top real estate stocks to invest in right now.
More Information About Extra Space Storage
Extra Space Storage was founded by Kenneth Woolley in 1977. The company went public in the year 2004. The milestone moment for Extra Space Storage came in July 2005 when the company acquired Storage USA from GE Commercial Finance. This transaction was the largest in the self-storage industry at the time and led to the addition of 400 properties for Extra Space Storage. Since then, Extra Space Storage has continued making smaller acquisitions to transform itself into the second-largest company in the industry today and also the top REIT stock to buy now. In October 2015, Extra Space Storage acquired SmartStop Self Storage for $1.4 billion, another significant transaction after the Storage USA deal. In 2016, Extra Space Storage was added to the S&P 500 Index.
Extra Space Storage stock closed at $129 on 10th March 2021. The stock has been on an uptrend, gaining over 9% over the preceding 30 days. On 10th March 2021, the stock was trading at a 3.1% dividend yield. A direct competitor of Extra Space Storage is Public Storage. Its stock closed at $239 on 10th March 2021. The stock was up 2.9% over the preceding 30 days and was trading at a 3.34% dividend yield.