Largest Storage Companies in the Self Storage Industry 

The Self Storage Industry is a fundamental commodity business with no barriers to enter, short leases, unstable cash flows with pure price cash flow competition.  The Self Storage Industry Market is placing its investment dollars & financial backing to Public Storage (NYSE: PSA) which has a self storage market cap-to-sales ratio of 8.27, Extra Space Storage (NYSE: EXR) comes in second at 4.64 while U-Store-It (NYSE: YSI )Trust comes in third place at 3.11.  In the Self Storage Industry size does matter.  How big is your space? 

Public Storage - NYSE: PSA    

PSA Market Capitalization 

Public Storage (NYSE: PSA) a real estate investment trust is the largest self storage company in the United States with over $12.7 billion dollars in self storage market capitalization with just $1.5 billion dollars in sales.  With its acquisition of its next largest competitior Shurgard Storage late last year, Public Storage has grown to in excess of 2,000 self storage facilities in the United States with another 170 or so in Europe.  Public Storage controls 135 million square feet of self storage which makes it the overal largest self storage operator in the entire world. 

PSA Competitors 

Public Storage gets benefits from a good operating enviroment and structure, but is vulnerable because of the low barrier to entry and very few ways to differntitate its added value products because when growth is good many self storage competitors spring up and will compete only on price. 

PSA Financials 

Public Storage financial results have been somewhat lackluster.  Revenue has grown 10.6% over the last five years but has surged due to the acquisition of Shurgard Storage to 30.2% last year.  Over the same period, earnings growth was 26.7 for five years with it coming in at 83.3% last year.  Public Storage has a return on equity of 4.9% which is a decline from an average of 14.3% performance over the last five years. 

 

Extra Space Storage - NYSE: EXR   

EXR Market Capitalization 

Extra Space Storage (NYSE: EXR) is the second largest self storage operator behind Public Storage.  Extra Space Storage has a market capitalization of $995 million dollar with $214 million dollar in sales.  Extra Space Storage owns and operates over 635 self storage facilities with over 46 million square feet of storage space spread out over 32 states including Washington D.C. 

EXR Competitors 

Extra Space Storage facilities are located in states such as New Jersey, California and Massachusetts with its occupany rates trailing that of its peers.  Extra Space is attempting to swap lover storage occupancy rates for higher self storage prices in a business that is basically a commodity product. 

EXR Financials 

Extra Space Storage has a less than great history that is limited in nature.  Revenue growth for Extra Space over the last three year average has grown to an impressive 75.9% but fell to 46.4% over the last year.  Earnings growth averaged 252.3% over the last three years but has fell to 84.4% last year.  Extra Space Storage return on equity is currently at 4.2% with people questioning the longevity of its 6% dividend staying power in the market place.  

U-Store-It Trust - NYSE: YSN 

YSN Market Capitalization 

U-Store-it Trust (NYSE: YSN) is without a doubt one of the larger of the self storage players with 26 million square feet of self storage space spread over 27 states with its top self storage market being in Florida, Ohio & California.  Since its initial public offering in 2004, U-Store-It has aggresively pursued and purchased over 200 additional self storage facilites to add to its growing portfollio of over 400 self storages across the country.  U-Store-It boast a self storage market capitalization of $700 million dollar on sales of about $224 million dollars.  U-Store-It last year alone bought over $300 million dollars of self storage facilities. 

YSN Competitiors 

U-Store-It has a company strategy that is based on buying & building self storage locations near busy retail centers, counting on the walk-in traffic that the retail centers provide trying to increase revenue by increasing rates and occupancy.  Having a decentralized structure allows the local self storage managers to get up to date access on prices. 

YSN Financials 

U-Store-It has financials that are also limited in nature.  U-Store-It has experienced growth with an average of 38.1% over a period of three years with it increasing to 43.9% last year.  U-Store-It has a net margin of -4.8% and a return of equity of -1.8%.  This makes the 8.9% dividend covered by the operations of the business. 

Public Storage NYSE: PSA - Extra Space Storage NYSE: EXR - U-Store-It NYSE: YSI