Investment management firm Victory Capital Management Inc. has recently reduced its holdings in Extra Space Storage Inc. (NYSE:EXR) by 76.2% during the fourth quarter of the past fiscal year. The firm reportedly sold 156,462 shares during the period, ending up with only 48,998 shares, valued at $7,733,000. This comes as a surprise move from Victory Capital Management Inc., as many institutional investors and analysts continue to hold a bullish outlook on Extra Space Storage.
Extra Space Storage is a real estate investment trust that operates through two segments: Self-Storage Operations and Tenant Reinsurance. The former includes rental operations of wholly-owned facilities, while the latter involves reinsurance of risks related to the loss of goods stored by tenants.
The company recently posted its quarterly earnings data on February 22nd, with revenues hitting $506.70 million compared to analyst estimates of $433.39 million – an impressive increase of 18.4% over last year’s results for the same period. However, despite this growth, Extra Space Storage reported EPS of $1.52 for Q4 FY2020, missing analysts’ consensus estimate of $2.08 by ($0.56). The company’s net margin was still a commendable 43.79%, with a return on equity of 21.62%.
Looking ahead, industry experts are optimistic that Extra Space Storage will bounce back from this temporary snag in financial performance and post an EPS figure of approximately $8.51 for the current fiscal year.
In conclusion, Victory Capital Management Inc.’s decision to trim their holdings in Extra Space Storage may come as a shock to some market observers; nevertheless, it signals that even highly esteemed asset managers have doubts about how certain companies might perform in the coming months in unstructured times like these where everything seems unpredictable or at least more so than normally seen in recent years. Despite this, Extra Space Storage’s impressive revenue growth figures and the positive outlook of industry analysts alike continue to paint a bright future for the real estate investment trust in the years ahead.
Extra Space Storage: A Flourishing Real Estate Investment Trust with Strong Institutional Support
Extra Space Storage: A Clear Example of a Flourishing Real Estate Investment Trust
Extra Space Storage is one of the most talked-about real estate investment trusts (REITs) nowadays, and for good reason. The company has been experiencing significant growth in the past several quarters, which can be attributed to a multitude of factors. One such factor is the influx of large investors who have recently modified their holdings in Extra Space Storage.
For instance, American National Bank grew its stake in Extra Space Storage by a whopping 271.7% during the fourth quarter alone, now owning 171 shares worth $25,000. Belpointe Asset Management LLC also acquired an interest in Extra Space Storage during that same period, worth $34,000. Ten Capital Wealth Advisors LLC also entered into this REIT’s fold during the third quarter with $36,000.
Additionally, Ronald Blue Trust Inc. grew its hold by 66.2% in last quarter and now owns 384 shares worth $66,000. And Brown Brothers Harriman & Co turned heads when it increased its stake in Extra Space Storage by a whopping 4,500.0% during the first quarter and now owns 322 shares valued at $66,000. In total, institutional investors and hedge funds own around 95.32% of EXR’s stock presently.
These exciting figures appear to reflect confidence in how well Extra Space Storage truly operates within their industry segments—Self-Storage Operations and Tenant Reinsurance—both profitably contributing to overall earnings for the REIT itself.
Extra Space Storage holds massive market clout with operations grossing a revenue of more than $1 billion annually; leading it to sit atop many people’s watchlists as an investment vehicle toward gaining dividends over time from their recurring income properties throughout America.
Despite the recent sale activity by Chief Marketing Officer Samrat Sondhi selling off additional shares from his holdings to raise his total with the company to 82,653 shares valued at $13,379,867.64 – the company outlook and consensus rating remains firmly supportive of Extra Space Storage’s current outlooks.
A bevy of investment tools like FactSet Research, Zacks Investment Research, Morningstar Inc., and MarketWatch all forecast fairly confident buy signals for investing in Extra Space Storage—especially during green market swings.
Several ratings agencies had previously placed “buy” or “hold” ratings on EXR stock including Raymond James recently upgrading its rating from outperform to strong-buy setting a price target of $185.00. KeyCorp dropped their price objective on Extra Space Storage from $190.00 to $172.00 and set an “overweight” rating for the company which appeared to pull-down holdings significantly in April. Presently analysts estimate it will see a consensus price target fluctuating around OFS its last trading value; while Bloomberg maintains a HOLD overall-rating based on its track-record.
Given the current economic uncertainty created by COVID-19, many investors may turn to non-cyclical industries such as self-storage—making Extra Space Storage even more appealing as it becomes a popular safe haven investment opportunity.
In conclusion, Extra Space Storage has proven itself time and again to be one of the most successful REITs in operation today with a diverse array of industry segments that continue to drive impressive growth. And with rising interest among institutional investors across America, now may be an excellent time for individuals who seek quality dividends over time toward looking into buying stocks within this strong-performing trust; especially those seeking out defensive investments as markets weather niche market shifts globally this year.Continue Reading
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