Management Meeting Takeaways: Declining New Supply a Tailwind

Goldman Sachs hosted a meeting with Extra Space Storage (EXR) management, highlighting that declining new supply (now 2% of stock) is a tailwind for revenue growth despite steady demand.

Key Takeaways

• 1.Self-storage supply headwinds are moderating, falling from a peak of 5% of stock to 2%, acting as a revenue tailwind.
• 2.Demand remains steady but the mix has shifted; fewer customers are moving compared to the 2021 peak, but non-movers stay twice as long.
• 3.Market performance is highly regionalized, with Midwest and Northeast markets outperforming the Sunbelt due to lower supply levels.

Table of Contents

• Key management meeting highlights
• Price target
• Upside/downside Risks
• Disclosure Appendix
• Reg AC
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Distribution of ratings/investment banking relationships
• Price target and rating history chart(s)
• Target price history table(s)
• Regulatory disclosures
• General disclosures
• Global product; distributing entities