Extra Space Storage

EXR

Market cap $31.6B

Investors with an interest in REIT and Equity Trust - Other stocks have likely encountered both Host Hotels (HST) and Extra Space Storage (EXR). But which of these two stocks is more attractive to value investors?

Not all REIT dividends are sustainable. Overleverage, troubled assets, and high payout ratios are clear red flags. I highlight 3 popular REITs at high risk of cutting their dividend.

Extra Space Storage remains a "Buy," with a $145 price target, despite recent underperformance and sector headwinds. EXR benefits from a strong balance sheet, 5% dividend yield, and consolidation opportunities in a fragmented storage market. Supply growth is expected to fall below 2% in 2026, supporting occupancy stabilization and potential rent growth as housing headwinds fade.

SALT LAKE CITY, Jan. 5, 2026 /PRNewswire/ -- Extra Space Storage Inc. (NYSE:EXR) (the "Company") announced today that the Board of Directors of Extra Space Storage has promoted Noah Springer, the Company's current Executive Vice President, Chief Strategy and Partnership Officer, to President, effective January 5, 2026. Mr. Springer currently is responsible for the Company's third-party management program, joint ventures, human resources department and other strategic initiatives.

The U.S. government is increasingly funding deficits with short-term debt, making interest expenses highly sensitive to Fed policy. A declining average maturity in the sovereign bond index tightens the link between fiscal and monetary policy, amplifying market complexity. Artificially subdued long-term bond supply likely keeps long-term yields lower than they would be with more balanced issuance.

Some REIT sectors recently suffered a dip. This includes self-storage and apartment REITs. I discuss my top picks.

S&P 500 high-yield 'safer' dividend stocks offer attractive upside, with twelve currently meeting the dogcatcher ideal of dividends exceeding share prices. Analyst targets forecast 21.14% to 44.05% net gains for top-ten S&P 500 dividend dogs by December 2026, with an average 28.35% gain and lower-than-market volatility. Stocks with negative free cash flow margins—fifteen of the top fifty—are flagged as unsafe for dividend sustainability despite high yields.

Quality and growth dictate long-term returns. Industrial, data centers, self-storage, and co-working are great property sectors for long-term-oriented investors. If I had to pick just 3 REITs for the next 10 years, it would be these.

U.S. equity markets staged a broad rally in the holiday-shortened week, while benchmark interest rates dipped to the cusp of multi-year lows, as investors leaned into December rate cut expectations. Reports that Kevin Hassett- a close Trump ally- has emerged as the frontrunner to succeed Fed Chair Powell in 2026 further sharpened expectations for a more explicitly dovish policy approach. The "Hasset trade" revived appetite for long-duration and rate-sensitive equity sectors, as investors priced in a lower terminal-rate environment and a steeper path of 2026 policy accommodation.

Extra Space Storage (EXR) reported earnings 30 days ago. What's next for the stock?