July 10, 2026 a 07:46 am
EXR: Dividend Analysis - Extra Space Storage Inc.
Extra Space Storage Inc. has solidified its reputation as a reliable dividend-paying entity with a commendable track record of 23 consecutive years. Despite a high EPS payout ratio, its dividend yield remains attractive at 4.42%, offering both income and growth prospects to shareholders. However, potential volatility due to market changes in the storage sector could affect future payouts.
Overview 📊
The detailed overview of Extra Space Storage Inc. provides insights into its sectoral performance and dividend dynamics.
| Metric | Details |
|---|---|
| Sector | Real Estate |
| Dividend yield | 4.42% |
| Current dividend per share | 6.49 USD |
| Dividend history | 23 years |
| Last cut or suspension | None |
Dividend History 🗣️
An understanding of the dividend history is vital to forecasting future income potential.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.24 |
| 2025 | 6.48 |
| 2024 | 6.48 |
| 2023 | 5.47 |
| 2022 | 6.00 |
Dividend Growth 📈
Studying dividend growth helps gauge the sustainability and progression of payouts.
| Time | Growth |
|---|---|
| 3 years | 2.60% |
| 5 years | 12.47% |
The average dividend growth is 12.47% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ⚖️
The payout ratio analysis is crucial in assessing if dividends can sustain without impacting future growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 144.91% |
| Free cash flow-based | 78.15% |
The EPS payout ratio of 144.91% might be considered impractical for long-term sustainability, yet the FCF payout remains more stable, suggesting focused cash flow management.
Cashflow & Capital Efficiency 💸
Evaluating cash flow and capital efficiency provides insight into operational health and shareholder returns.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 6.63% | 5.90% | 5.11% |
| Earnings Yield | 3.53% | 2.70% | 2.96% |
| CAPEX to Operating Cash Flow | 0.01% | 1.09% | 1.14% |
| Stock-based Compensation to Revenue | 1.05% | 0.69% | 1.02% |
| Free Cash Flow / Operating Cash Flow Ratio | 98.86% | 98.91% | 98.86% |
The company's cash flow resilience is evident, with stable FCF ratios indicating efficient cash conversion cycle management.
Balance Sheet & Leverage Analysis 🏦
Balance sheet and leverage assessments elucidate financial risk and asset utilization strategies.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.11 | 0.93 | 0.78 |
| Debt-to-Assets | 0.51 | 0.45 | 0.41 |
| Debt-to-Capital | 0.53 | 0.48 | 0.44 |
| Net Debt to EBITDA | 4.25 | 5.70 | 6.22 |
| Current Ratio | 0.37 | 0.37 | 0.85 |
| Quick Ratio | 1.28 | 0.93 | 0.85 |
| Financial Leverage | 2.18 | 2.06 | 1.91 |
The leverage setup underscores a balanced capital structure with a manageable level of debt to equity.
Fundamental Strength & Profitability 📈
Fundamental metrics reflect the intrinsic strength and the profitability potential of the business.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 7.25% | 6.13% | 5.58% |
| Return on Assets | 3.33% | 2.96% | 2.93% |
| Margins: Net | 28.84% | 25.61% | 30.71% |
| EBIT | 50.31% | 44.40% | 49.39% |
| EBITDA | 71.48% | 67.00% | 68.54% |
| Gross | 28.43% | 76.31% | 77.29% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
With consistent margins and returns, Extra Space Storage Inc.’s profitability remains robust, indicating strong fundamental health.
Price Development 📉
Dividend Scoring System ✅
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
Rating 📊
Overall, Extra Space Storage Inc. presents a strong dividend profile, characterized by consistent payouts and substantial history. Investors seeking reliable income should consider it a viable option, albeit with a cautious approach due to the elevated payout ratio and debt leverage.
Smart Data Insight
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