This Stock Turned $1,000 Into $17,739 Since Its 2004 IPO. Is It Too Late To Buy Now?

Extra Space Storage Inc. EXR is a fully integrated real estate investment trust that owns, operates, and manages almost 3,700 self-storage properties in 42 states, with over 280 million net rentable square feet of storage space. It is set to report its Q3 2024 earnings on November 5. Wall Street analysts expect the company to post an EPS of $2.03, up from $2.02 in the year-ago period. According to data from Benzinga Pro, quarterly revenue is expected to be $757.43 million, up from $650.89 million in the year-ago period.

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If You Bought Extra Space Storage Stock 20 Years Ago

The company's stock traded around $12.53 per share 20 years ago at its IPO. If you had invested $1,000, you could have bought approximately 80 shares of Extra Space Storage stock. Currently, shares are trading at $178.22, which means your investment's value could have soared to approximately $14,223 due to stock price appreciation. But wait, the company also paid dividends during these 20 years. 

Extra Space Storage’s dividend yield is currently 3.64%. Over the last twenty years, it paid around $44.06 in dividends per share, which means you could have made $3,516 from dividends alone. 

Summing up $14,223 and $3,516, we end up with the final value of your investment, which is $17,739. This is how much you could have made if you had invested $1,000 in Extra Space Storage stock 20 years ago. This means a total return of 1,673.9%. In comparison, the S&P 500 total return for the same period is 573.99%.

What Could The Next 20 Years Bring? 

Extra Space Storage has a consensus rating of Buy and a price target of $169.12 based on the ratings of 18 analysts. The price target implies a potential downside of around 5% from the current stock price.

On July 30, Extra Space Storage announced its Q2 2024 earnings results. It posted an FFO of $2.06, beating the consensus of $2. However, revenues of $697.1 million missed the expected $728.75 million, as reported by Benzinga. 

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Joe Margolis, CEO of Extra Space Storage Inc., commented: “We’ve maintained strong occupancy levels in the Extra Space and Life Storage same-store pools despite a challenging demand and new customer rate environment. The occupancy gains drove positive revenue growth in both pools. In addition, we continue to realize G&A savings and stronger than expected tenant insurance income, supporting solid FFO per share performance ahead of our projections.”

Check out this article by Benzinga for Extra Space Storage’s recent short interest.

In summary, growth-focused investors may not find Extra Space Storage stock attractive, given that Wall Street analysts expect a downside from current levels despite significant stock price appreciation over the last 20 years. However, investors looking for consistent passive income can benefit from the company's solid dividend yield of 3.64% and consecutive dividend increases. 

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