Thethat an average worker change jobs 15 times in the span of a career.
That's a far cry from just 20 years ago when it was common for someone to stay with onefor her entire career.
And this is just one of thethat has made self-storage the best performing of 2013. With people switching jobs more often and smaller apartment rentals rising, for temporary storage is at a .
As a result, self-storagea 14% in 2013, a sharp to the overall of 2%... and a little-known industry leader is making the most of the . Take a look below.
Extra Space Storage (NYSE: EXR) is one of the largest self-storage in the U.S. with a of $4.7 billion. The company owns and operates more than 1,000 self storage properties in 35 states, Washington D.C. and Puerto Rico.
But even though Extra Space has already delivered impressivethis , the company is in position to benefit from a number of .
The first is. According to the 2013 Self-Storage Study, 46% of self-storage customers are on a , up from 38% in 2007. And looking forward, that is expected to accelerate, with 30% planning to keep their storage units for at least two , up from 17% in 2007.
Not only scalability.these enable Extra Space to grow , it also creates a big opportunity for because the self-storage industry is still highly fragmented. Introducing centralized and updated systems into an old-school industry gives Extra Space major power and
But in spite of its aggressive operating leverage.strategy, Extra Space isn't leveraged to the hilt. The company's 24% debt-to-cap ratio gives it plenty of room to buy more properties and increase
Not only is this consensus estimates calling for growth of 21% in 2013 and 16% in 2014.leader benefitting from an aggressive expansion strategy, it also pays a healthy of 3.8%. The good news has
Risks to Consider:as an are particularly sensitive to . Although self-storage have been less impacted than other , rising pose a threat to and .
Action to Take --> Extra Space's recent 17% decline helped sweeten the . Its forward P/E (price-to-earnings) ratio of 20 times is a small to its peer average of 17 times. And with expected to grow 23% this , 16% in 2014 and a solid 3.8% , Extra Space offers a compelling combination of and .
-- Michael Vodicka