5 Best Self Storage and Apartment Stocks To Buy Now

In this article, we discuss 5 best self storage and apartment stocks. If you want to read our detailed discussion on the self storage and apartment industry, head over to 12 Best Self Storage and Apartment Stocks To Buy Now. 

5. Extra Space Storage Inc. (NYSE:EXR)

Number of Hedge Fund Holders: 27

Extra Space Storage Inc. (NYSE:EXR) owns and operates a large number of self-storage facilities across multiple states, offering rentable storage spaces. It is one of the best self storage stocks to watch. On August 3, Extra Space Storage Inc. (NYSE:EXR) reported a Q2 FFO of $2.06, missing Wall Street expectations by $0.09. On a positive note, the revenue of $511.39 million grew 7.7% year-over-year, beating market estimates by a solid $53.82 million. 

According to Insider Monkey’s second quarter database, 27 hedge funds were bullish on Extra Space Storage Inc. (NYSE:EXR), up from 23 in the prior quarter. Ken Griffin’s Citadel Investment Group is the most prominent stakeholder of the company, with 1 million shares worth $148.96 million.

Baron Real Estate Fund made the following comment about Extra Space Storage Inc. (NYSE:EXR) in its second quarter 2023 investor letter:

“Following its pending merger with Life Storage, Inc. which is expected to close late in 2023, Extra Space Storage Inc. (NYSE:EXR), a best-in-class self-storage REIT, will be the largest self-storage operator with a $46 billion self-storage operating portfolio. In the most recent quarter, the shares declined because rent growth is moderating from its strong pace of the last few years.

Though 2023 may be a transition year for Extra Space as growth retraces to a more sustainable run-rate and the management team prepares to incorporate Life Storage, we remain optimistic about the long-term prospects for the company and believe the current price of its shares reflects a good portion of this anticipated transition.

We believe Extra Space’s management team is excellent. Over the last decade, management has delivered strong occupancy gains, rent growth, and expense control that has led to a cost-of-capital advantage relative to its peers. Management has capitalized on its cost-of-capital advantage relative to its peers by tripling its owned self-storage count since 2010. We believe the management team will continue to create tremendous value for shareholders and believe the long-term growth opportunity for the company remains strong.”