Is Extra Space Storage Stock Underperforming the Dow?

Company Overview - Extra Space Storage Inc. (EXR) has a market cap of $31.2 billion and is a leading self-storage real estate investment trust (REIT) [1] - As of June 30, 2025, the company operates 4,179 stores across 43 states and Washington, D.C., with approximately 2.9 million units and 321.5 million square feet of rentable space [1][2] Stock Performance - Shares of Extra Space Storage have declined 22.1% from their 52-week high of $184.87, and have decreased 3.8% over the past three months, underperforming the Dow Jones Industrials Average's 8.6% rise during the same period [3] - Year-to-date, EXR stock is down 3.8%, lagging behind the Dow Jones Industrials Average's 7.7% gain, and has dipped 19.1% over the past 52 weeks compared to the Dow's 10.7% increase [4] Financial Results - Following Q2 2025 results on July 30, shares tumbled over 10% as core FFO per share was reported at $2.05, missing consensus estimates [5] - Same-store NOI dropped 3.1% to $474.2 million, while expenses surged 8.6% to $191.4 million, and interest expenses climbed 6.6% to $146.1 million, impacting margins despite a 60-basis-point occupancy gain to 94.6% [5] - Management revised 2025 guidance to a narrower FFO range of $8.05 to $8.25 per share, with expectations of flat-to-negative same-store revenue growth and NOI decline [5] Competitive Landscape - Rival Lineage, Inc. (LINE) has performed weaker than EXR, with LINE stock down 27.9% year-to-date and 49.2% over the past 52 weeks [6] - Despite underperformance, analysts maintain a moderately optimistic outlook for LINE, with a consensus rating of "Moderate Buy" and a mean price target of $157.63, representing a 9.4% premium to current levels [6]