Extra Space Storage is one of the largest self-storage REITs in the US. It has grown at a decent pace over the past decade. Lately, stocks of self-storage REITs like Extra Space Storage, Public Storage, Cube Smart, and Life Storage have performed well. If you are an investor trying to find REIT industrial stocks to invest in 2021, then these are some of the names that you may want to look at. Self-storage complexes are relatively cheaper to maintain and build. On the other hand, self-storage properties tend to have shorter lease terms. Usually, self-storage REITs perform reasonably well in economic downturns. The demand for such units is driven by migration, job changes, and family events like marriage, death, or moving for education. Investors have to consider multiple factors before picking a REIT to invest in.
Extra Space Storage Announces Q12021 Earnings Results
On 29th April 2021, Extra Space Storage released its first-quarter 2021 earnings numbers. Funds from operations rose from $171 million in Q12020 to $210 million. Same-store rental revenues were also up 4.6% year-on-year from $266 million in Q12020 to $278 million in Q12021. Same-store square foot occupancy also improved from 90.9% in Q12020 to 95.7% in Q12021. During the first quarter of 2021, Extra Space Storage acquired nine operating stores at a cost of $148.4 million. CEO Joseph Margolis pointed out that same-store occupancy remained at record highs as the REIT witnessed sequential growth in January and February, months when occupancy rates tend to be relatively weak. Mr. Margolis also pointed out that the management’s expense control efforts were also able to marginally reduce same-store expenses. Extra Space Storage is among the best REITs stocks to buy for 2021.
Reit Industrial Stocks To Invest In 2021
The dividend yield is an important metric for REITs. The REIT structure is designed to offer regular dividend payouts to unitholders. Such “income” investments tend to face the risk of interest rates. If interest rates go up, then money tends to flow out of “income” stocks and into bonds. However, interest rates are currently at historic lows and REITs like Extra Space Storage are witnessing strong growth as well.