Extra Space Storage Inc SHORT

Short @ 95.03

Market Cap - 12.53B
Beta - 0.40
Price/Book - 5.12
Forward P/E - 31.59

- Since the beginning of the year, shares of EXR have continued to outperform the industry.
- Despite 1Q18
- Lots of the company's markets are witnessing an increasing supply of new self-storage space which is due to fuel competition - meaning EXR won't be able to raise rent price and will have to start discounting this could affect the company's bottomline.
- Interest rate hikes are also a concern for Extra Space Storage. Higher rates mean higher borrowing costs which would affect it to be able to develop or purchase real estate and lower dividends.
- Their self-storage units are leased on a month-to-month basis. If clients financial situation become distressed they can vacate whenever.
- Forward P/E is quite concerning at 31.59x which might indicate to investors not to pay such a premium price.

NeroTree Capital rates Extra Space Storage as a SELL with a price target of $85.