REITs own income-generating assets. The purpose of a REIT is to distribute cash flows generated from the assets that it holds to its unitholders. For investors, REIT offers regular cash flows similar to what high-dividend stocks do. However, REITs do not necessarily appreciate in price significantly. The dividends that a company pays depends on the decision of the management regarding the dividend policy. However, REITs are mandated to pay a significant portion of their net income to unitholders. There are many types of REITs in the stock market, ranging from healthcare, real estate, and retail to logistics, hotels, data centers, and even cell towers. Any asset that can generate cash flow can be compiled into a portfolio under a REIT structure. Lately, self-storage space REITs have been performing very well. Extra Space Storage is one of the leading players in the sub-segment. It could be one of the top REIT industrial stocks 2021.
Extra Space Storage Business
Extra Space Storage is the second-largest operator of self-storage units in the US. The business was founded in 1977, so it isn’t very old. In a relatively short period of time, Extra Space Storage has grown rapidly to become a major player in its industry. The company made investments worth $4.6 billion in just the last five years. Such acquisitions further build on the REIT’s national portfolio. As of 2021, Extra Space Storage has 1800 locations that translate to 1.3 million units spread out across 135 million square feet of rentable space. Extra Space Storage is headquartered in Salt Lake City, Utah. It is among the REIT industrial stocks to watch this year.
Reit Industrial Stocks 2021
Extra Space Storage REIT trades on the New York Stock Exchange under the ticker symbol EXR. It last closed at $162.93 on 22nd June 2021. The 52-week high is $164.85, while the 52-week low is $88.88. The stock has been in an uptrend and is very close to its 52-week high.