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.”

4. Camden Property Trust (NYSE:CPT)

Number of Hedge Fund Holders: 28

Camden Property Trust (NYSE:CPT) specializes in the ownership, management, and development of multifamily apartment communities. They currently manage multiple properties, including a number of apartment homes, located throughout the United States. On August 3, Camden Property Trust (NYSE:CPT) reported a Q2 FFO of $1.51. The revenue of $385.5 million grew 6.6% year-over-year, beating market estimates by $1.58 million. It is one of the best self storage and apartment stocks to monitor. 

According to Insider Monkey’s second quarter database, 28 hedge funds were long Camden Property Trust (NYSE:CPT), compared to 29 in the last quarter. Daniel Sundheim’s D1 Capital Partners is the most prominent stakeholder of the company, with 2.73 million shares worth approximately $298 million.

Here is what Baron Real Estate Income Fund has to say about Camden Property Trust (NYSE:CPT) in its Q2 2022 investor letter:

“The Fund’s multi-family REIT Camden Property Trust (NYSE:CPT) has been generating strong occupancy, rent, and cash flow growth. We expect in-place rents, which remain below market rents, to be a source of ongoing strong cash flow growth in the near term. We also expect rental apartments to continue to benefit from homeownership affordability challenges. Currently, the Fund’s investments in multi-family REITs provide partial inflation protection to offset rising costs due to leases that can be reset at higher rents, in some cases, annually. Valuations are attractive at 5% capitalization rates and remain at discounts to recent private market multi-family transactions which have been valued at high 3% to low 4% capitalization rates.”

3. U-Haul Holding Company (NYSE:UHAL)

Number of Hedge Fund Holders: 28

U-Haul Holding Company (NYSE:UHAL) is a self-moving and storage operator in the US and Canada, offering truck and trailer rentals, portable storage units, and self-storage spaces for both households and businesses. They also provide moving supplies, towing accessories, and propane sales. On August 17, U-Haul Holding Company (NYSE:UHAL) declared a quarterly dividend of $0.04 per share, in line with previous. The dividend is distributable on September 29, to shareholders of record on September 19. U-Haul Holding Company (NYSE:UHAL) is one of the premier self storage stocks to buy. 

According to Insider Monkey’s second quarter database, 28 hedge funds were bullish on U-Haul Holding Company (NYSE:UHAL), the same as the last quarter. Donald Yacktman’s Yacktman Asset Management is the top shareholder of the company, with 6.91 million shares worth over $350 million.

2. Prologis, Inc. (NYSE:PLD)

Number of Hedge Fund Holders: 50

Prologis, Inc. (NYSE:PLD) is a top player in logistics real estate worldwide, focusing on high-barrier, high-growth markets. The company owns and invests in properties and projects at a large scale, leasing modern logistics facilities to a diverse customer base, mainly in business-to-business and retail/online fulfillment sectors. On July 18, Prologis, Inc. (NYSE:PLD) reported a Q2 FFO of $1.83, beating Wall Street expectations by $0.16. The revenue of $2.45 billion increased by 96% year-over-year, surpassing market consensus by $770 million.

According to Insider Monkey’s second quarter database, 50 hedge funds were bullish on Prologis, Inc. (NYSE:PLD), compared to 51 in the previous quarter. Jeffrey Furber’s AEW Capital Management is the largest shareholder of the company, with 2.52 million shares worth $309 million. 

Here is what Aristotle Atlantic Partners has to say about Prologis, Inc. (NYSE:PLD) in its Q2 2023 investor letter:

“Prologis underperformed in the second quarter along with the real estate sector, as the appetite for risk in the broad market increased. Prologis’ results have shown less cyclicality during the recent downturn in the sector, so there is less scope for an earnings recovery as is the case in more beaten-down real estate companies. The company announced the acquisition of a 14 million square foot portfolio of industrial properties from Blackstone for $3.1 billion at the end of the second quarter.”

1. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC)

Number of Hedge Fund Holders: 59

WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) offers portable storage solutions and workspace services across the United States, Canada, and Mexico. The company operates through two divisions – Modular Solutions and Storage Solutions. On August 2, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) reported a Q2 GAAP EPS of $0.43, beating Wall Street expectations by $0.03. While the revenue of $582.1 million increased by 0.1% year-over-year, it missed market estimates by $0.69 million. It is one of the best self storage stocks to buy. 

According to Insider Monkey’s second quarter database, 59 hedge funds were bullish on WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), same as the previous quarter. 

Bernzott Capital Advisors US Small Cap Value Fund made the following comment about WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) in its Q1 2023 investor letter:

“WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC): Exited the position as a result of the company exceeding the upper end of our market cap restrictions due to stock appreciation.

We ended 1Q managing $548 million, with $286 million in our US Small Cap Value strategy. As a bottom-up, fundamental value investor, we seek high-quality companies we believe can compound returns over long periods while proving resilient in downturns. We believe characteristics of a high-quality company include market leadership; recurring revenue or subscription model providing revenue visibility; high margins and operating leverage; high returns on capital; financial flexibility; and a strong management team with skin in the game and a long-term view.”

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