02:15 PM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Despite earnings beat, we keep our target at $112 on a forward P/FFO of 14.0x our 2024 FFO estimate, a discount to self-storage REIT peers (15.5x) due to higher variable rate debt (22% of total debt) and integration risks related to the Life Storage (LSI) acquisition. We keep our 2024 FFO estimate at $7.97 and 2025's at $8.28. EXR posted Q1 2024 FFO of $1.96 vs. $2.02, a $0.02 consensus beat on rental revenues that were in line with consensus. Same-store (SS) cash NOI fell 0.5% Y/Y, as a 1.0% Y/Y increase in SS revenue was offset by a 5.5% jump in SS operating expenses. Operating expense pressure was driven by Marketing (+23% Y/Y), Insurance (+34% Y/Y), and Payroll and Benefits (+9% Y/Y). SS occupancy of 93.2% was up 50 bps Y/Y, although rents per occupied square foot were flat at $21.62 vs. $21.66 Y/Y. Management is targeting SS NOI growth within the acquired LSI portfolio of 1.8% in 2024, which we believe may be challenging given current market dynamics. Legacy LSI portfolio cash NOI was down 0.4% in Q1.