Extra Space Storage Market Analysis

In: Business and Management

Submitted By Joe724c
Words 328
Pages 2
Market analysis
February 8,2013
| Extra Space StorageGaining a competitive advantage.
|

Market analysis
February 8,2013
| Extra Space StorageGaining a competitive advantage.
|

Background Information:
According to the National Association of REITs, “self-storage REITs have had the strongest returns out of all publicly traded REITs over the past two years. In 2011, self-storage REITs had a 35.4% return, whereas the overall REIT market realized 8% returns. Generally speaking, REITs are relatively low risk, as 90% of all profits must be returned to shareholders. Moreover, the 2013 fiscal climate looks promising for the real estate sector, as many financial analysts expect interest rates to remain exceptionally low. Interest rates are particularly relevant, because REITs use a lot of leverage and operate with considerable debt.”
There are four publicly traded self-storage investment trusts on the New York Stock Exchange:
* Public Storage (PSA) (A-rated by S&P), which opened its doors for business 40 years ago. Today Public Storage is the world's largest owner and operator of self-storage facilities. The company operates over 2,200 unique and diverse company-owned locations in the United States and Europe, totaling more than 141 million net rentable square feet of real estate. Seeking Alpha writer Michael Terry, CFA wrote an excellent article on Public Storage here.

* Extra Space Storage (EXR) (not rated), which is the second largest owner and operator of storage facilities in the US. The company's properties comprise approximately 585,000 units and totaling 64 million square feet of rentable storage space. I wrote an article on Extra Space here.

* Sovran Self Storage (SSS) (BBB- rated by S&P), which was founded 30 years ago and owns and/or operates more than 400 self storage facilities encompassing over 20 million square…...

Similar Documents

Norstorm Hr Case Analysi

... overtime hours their salary reduced substantially. So, it was counter mechanism, if you punch in all the work hours , the employee would suddenly find himself in the bottom rung of SHP which lead to reduced pay, termination as well. And if one doesn’t add the extra hours then also the pay is reduced but one can maintain SHP. So employees tried not to put their “off hours” but worked overtime. And the management took this a signal that employees like to work without salary. The Compa ratio must be below 1 as some employees made a lot but a lot of them ended up with the average so that there was huge disparity in salary creating peer rivalry. 3. How effective is the memo reproduced as Exhibit 3 in clarifying the distinction between "sell" and "nonsell" time? The memo in Exhibit is not really confusing and obfuscates what exactly is “sell” and “nonsell time”. Like for example Hand carries, if done from one store to another then the time is recorded but if the merchandise is delivered to a customer’s home , office it is not considered in “sell” time which will really confuse the employee as on the one hand the employee has to increase and for that provide good service to the consumer but on the other hand if he goes to deliver to the product then he would lose the “sell” time. Also in memo 3 there is mention of sales promotion activities but they are quite broad and there is no clear demarcation between what is included in “sell” and what is not. Now like......

Words: 917 - Pages: 4

Extra

...Extra Credit Assignment ------------------------------------------------- 1. Fifty percent of the sales of Hanson Company sales are for cash; the rest are on credit. Seventy percent of the credit sales are collected in the month of sale, twenty percent in the month following sale, and five percent in the second month following sale. The remainder is expected to be uncollectible. Monthly sales are budgeted as follows: $280,000 for January, $240,000 for February, and $320,000 for March. Prepare a schedule of expected cash collections for the month of March. 2. a) What are the major weaknesses of static budgets? “Directly comparing static planning budget revenues and costs to actual revenues and costs can easily lead to erroneous conclusions. Actual revenues and costs differ from budgeted revenues and costs for a variety of reasons, but one of the biggest is a change in the level of activity. One would expect actual revenues and costs to increase or decrease as the activity level increases or decreases. Flexible budgets enable managers to isolate the various causes of the differences between budgeted and actual costs” (Garrison 397). Garrison, R.. Managerial Accounting, 14th Edition. McGraw-Hill Learning Solutions, 2012. <vbk:0077624319#outline(9.7)>. b) What are the characteristics of a planning budget? “A planning budget is prepared before the period begins and is valid for only the planned level of...

Words: 531 - Pages: 3

Space

...HOW America feel about Space Exploration Research Methods SS3150 May 08, 2013 How America feel about Space Exploration The space exploration has been a huge program for research and human knowledge. It has brought so many concerns, questions and suggestions which has engaged and, affected American’s in their everyday lives. Some of the research questions that I came up with which are appropriate for qualitative research are for example first, how does the earth interact with the neighboring planets? Second, how does space exploration help in securing our planet? And the third question is how does the exploration improve our lives economically? The explanation as to why these three questions are appropriate for qualitative research is that for one, the question of how does the earth interact with the neighboring planets, is a question which does not require any thought of numbers when answering because, one can simply answer that the earth interacts with the neighboring planets by how they all get the light from the sun. The target population on this question can be young or old and questionnaires would be the best sample to the participants for this research. The second question on how does space exploration help in securing our planet is also appropriate for qualitative research and, it shows or it can bring suggestions for example, that the technology used in space exploration is very highly advanced and that people feel safe because it sends signals of anything...

Words: 541 - Pages: 3

Extra Credit

...Extra Credit Today I attend a lecture talking about the errors within the focus of the US energy market and the ability to face the challenge of carbon dioxide pollution by Roger Sant. The emissions of carbon dioxide and other long-lived greenhouse gases that build up in the atmosphere endanger the health and welfare of current and future generations by causing climate change and ocean acidification. Long-lived greenhouse gases, which trap heat in the atmosphere, include carbon dioxide, methane, nitrous oxide, and fluorinated gases. These gases are produced by a numerous and diverse human activities. Throughout this lecture, I realized that the risks to public health and the environment from climate change are substantial and far-reaching. Lecturer warn that carbon pollution and resulting climate change are expected to lead to more intense hurricanes and storms, heavier and more frequent flooding, increased drought, and more severe wildfires—events that can cause deaths, injuries, and billions of dollars of damage to property and the nation’s infrastructure. Some of these impacts already have been observed. Carbon dioxide and other greenhouse gas pollution leads to more frequent and intense heat waves that increase mortality, especially among the poor and elderly. Other climate change public health concerns raised in the scientific literature include anticipated increases in ground-level ozone pollution, the potential for enhanced spread of some waterborne and pest-related...

Words: 351 - Pages: 2

Extra Credit

...OPTIONAL EXTRA CREDIT I 2% OF YOUR OVERALL GRADE Due on Wednesday, May 7 Read the Wall Street Journal, The Economist, or any other major newspaper or weekly publication and select a single article or articles that (1) either report on interesting economic news that can be analyzed by the concepts or models taught in this course or (2) discusses one or more economic issues related to the concepts or models taught in this course. It is OK to use an online economics news article.   Write a three to four page essay analyzing the topic or critique the article from economic perspectives. Essay must be typed and double-spaced, (Times New Roman, font 12). The questions that you may address in this essay may include, but are not limited, to the following:
  * What is the main economic issue? * How is the economic issue related to the concepts or models that you have learned from this course? * What sorts of arguments/opinions have been discussed? * Do you agree or disagree with the analyses/opinions? Why? * What argument would you, as an economist, make?   The following is a suggested list of topics. This list is not exhaustive. INDUSTRY STUDY.   For a specific industry, choose a current issue such as deregulation, foreign competition, and the impact of new technologies, mergers/takeovers, changing methods of competition, labor problems, or financial changes. COMPANY STUDY.   Study the recent growth or decline of a particular company or its...

Words: 364 - Pages: 2

Business Analysi

... into many tracks exchanged online. Recognizing an opportunity to establish a market for high quality and legal music downloads; Apple introduced iTunes, the iTunes Music Store and the iPod Music Player. Although digital players had already surfaced in the market, the iPod offered gigabyte storage capacity and communicated with computers through iTunes software freely available for Windows and Macintosh-based systems. iTunes not only simplified the transfer of digital music, but also linked purchases to the iTunes music store. Songs were available for $0.99. Entire albums were available at a discounted rate. By 2003, five record labels had signed with Apple and the catalogue of songs exceeded 2000 items. In its first year alone, the iTunes store sold more than $70 million songs, capturing 70% market share in the process. In the second fiscal quarter for 2004, Apple shipped 807 000 iPods. Its stock rose to 45$ per share and its net profit increased to $46 million (AppleHistory.com). Sales of its Macintosh computers also surged, and Apple reported the sale of 750 000 units during the quarter. The Total Cost of Ownership Debate Rages on The Controversial Gartner Report Gartner Inc is a leading research provider, offering analysis of the global IT industry. In 2002, it released a study comparing the TCO for Melbourne University’s Mac environment with its pc environment. The study concluded that Macs were 36% cheaper to run than pc’s. The report...

Words: 3798 - Pages: 16

Current Market Outlook for Space Business of Space Tourism

...Current Market Outlook for Space Business of Space Tourism Abstract This report covers some potential obstacles countries and companies may face when developing space tourism programs. The biggest hurdle will be the technology; companies like SpaceX, Boeing, and Virgin Galactic have good designs, but making those designs may prove to be more difficult. Another big issue that needs to be addressed is International Space Law. Many of the treaties were written at the beginning of the space race and only apply to trained astronauts. There will need to be new or revised treaties to cover the limits of private companies and the civilians they transport to space. The third issue covered is the safety and ethics of sending humans to space for a profit. Trained astronauts go through extensive programs to ensure they are ready for the elements of space. Proper measures will need to be taken to make sure civilians will have a safe and enjoyable trip. All of these topics are addressed in detail in this report; in the end however, it is evident that a few companies are on the right path to sending tourists to space. Introduction For centuries, the idea of space has intrigued scientists and engineers who constantly searched for ways to learn more and eventually get there. In 1961, during the heart of the Cold War, Russian cosmonaut, Yuri Gagarin, became the first person in space. Ever since that first major accomplishment, space agencies around the world have tried to...

Words: 2949 - Pages: 12

Extra Credit

...Extra Credit 2 Jeff Chisholm 1 – Securities Exchange Commission (source: BYP4-5 of Kimmel textbook) What we do Answer the following questions: a. What event spurred the creation of the SEC? Why was the SEC created? The SEC was created due to the stock market crash of 1929 which led to the great depression. The SEC was created to protect investors in security exchanges such as the stock market. It is responsible for oversight of both private investment and corporate investment dealings. b. What are the five divisions of the SEC? Briefly describe the purpose of each. The five divisions of the SEC are corporate finance, enforcement, economic and risk analysis, investment management, and trading and markets. The corporate finance division ensures that investors are provided with up to date and accurate financial reporting data of market resources. The enforcement division investigates suspected violations of any activities pertaining to the other four divisions. The economic risk and analysis division analyses aspects of the market and all divisions of the SEC to mitigate risk in major market shifts. The investment management division has oversight of internal corporate investment plans such as mutual funds and exchange traded funds. The trading and markets division ensures that all aspects of the market are fair and orderly. c. What are the responsibilities of the chief accountant? The chief accountant is responsible for establishing and enforcing...

Words: 649 - Pages: 3

Space

... production version of Lynx I. Mark II is expected to service both the suborbital tourism market and all markets that make use of the Lynx’s internal payload volumes, such as microgravity and biotechnology experiments. The Mark II will have a higher performance than the Mark I due to its lower dry weight while using the same propulsion and avionics systems as the Mark I. Approximately a year or 18 months after the Mark I is launched, the Mark II would go into operation to carry tourist, researchers and scientific payloads across the internationally accepted boundary of outer space, which is beyond 100 kilometers (62 miles) in altitude. (Ref 4,5) c. Lynx III: After that, the Mark III will be produced to deploy microsatellites or multiple nano-satellites into low-Earth orbit. It will be a highly modified derivative of the Lynx Mark II and be able to carry an external dorsal pod. The total payload capacity for the external dorsal pod is 650kg. Mark III will have an upgraded landing gear, aerodynamics, core structural enhancements, and a more powerful propulsion package as well as other modifications, which are needed to carry the extra weight aloft. (Ref 5) B. Rocket Engine: EZ-Rocket & X-Racer XCOR introduced the EZ-Rocket as the first demonstrator rocket-powered vehicle. It is modified from a “Long-EZ” homebuilt airplane by adding twin 400lb thrust regeneratively cooled rocket engines. Then, with both engines running (800lb thrust total) and maximum propellant......

Words: 4161 - Pages: 17

Extra Credit

...Extra Credit Assignment 2 The world is full of entrepreneurs who have created a business or product that they believed in. The industry of modeling is no different. The article from Forbes.com identifies a plus size woman, Ashley Graham, who created the healthy image of women to be pictured on the front cover of Sport Illustrated Magazine along with her own lingerie line. The article is written by Susan Adams who demonstrated a unique take on the everyday interviewing process which relates to the concepts of interviewing biases that we have discussed in class. The first concept that the article shows is about the business model with a closer look at two of the nine components; value proposition and customer segment. The article not only shows how entrepreneurs’ ideas come in all shapes and sizes but so do their owners. Graham not only is the first plus size woman on the cover of Sports Illustrated, but she has produced her own clothing line that has over $1.6 million in sales. She uses the business model to segment her market and assess the needs and values of her customers. The first step in the business model that I will be examining is the value proposition and how it is all about satisfying the needs of your customers and solving the problems that occur. This concept allows Graham to connect with her customers on a unique level by offering them a clothing/ lingerie line for those women who are plus size. She solves the plus sized women’s problem of finding lingerie...

Words: 481 - Pages: 2

Space

...NASA's Chandra Sees Eclipsing Planet in X-rays for First Time For the first time since exoplanets, or planets around stars other than the sun, were discovered almost 20 years ago, X-ray observations have detected an exoplanet passing in front of its parent star. An advantageous alignment of a planet and its parent star in the system HD 189733, which is 63 light-years from Earth, enabled NASA’s Chandra X-ray Observatory and the European Space Agency’s XMM Newton Observatory to observe a dip in X-ray intensity as the planet transited the star. "Thousands of planet candidates have been seen to transit in only optical light," said Katja Poppenhaeger of Harvard-Smithsonian Center for Astrophysics (CfA) in Cambridge, Mass., who led a new study to be published in the Aug. 10 edition of The Astrophysical Journal. "Finally being able to study one in X-rays is important because it reveals new information about the properties of an exoplanet." The team used Chandra to observe six transits and data from XMM Newton observations of one. The planet, known as HD 189733b, is a hot Jupiter, meaning it is similar in size to Jupiter in our solar system but in very close orbit around its star. HD 189733b is more than 30 times closer to its star than Earth is to the sun. It orbits the star once every 2.2 days. HD 189733b is the closest hot Jupiter to Earth, which makes it a prime target for astronomers who want to learn more about this type of exoplanet and the atmosphere around...

Words: 627 - Pages: 3

Space

...As cool as it would be if it were, the real world is no episode of Star Trek or Doctor Who. The initial exploration of space was met with extreme enthusiasm, but since then, the positive look on space travel has become almost non-existent, and for good reasons. To be blunt, the costs are outweighing the benefits. We have hoped for discovering Earth-like planets and other inhabitants in our universe, but these hopes have been squashed considering how large the universe is, and how impossible the possibility of reaping the benefits from the large task is. Earth is our home now, and we must deal with its problems first before we deal with any other planets. Earth’s issues must be tackled first, for the sake of our planet and everyone, man or animal, on it. Money is always an issue, no matter what. When looking at the “Pennies of Each Federal Spending Dollar” chart, space travel is so low in the national budget that it is included in the “all others” section, which only makes up 6% of the budget. Even when we went to the moon, there was no monetary return, so space travel is a waste of resources. We need all the extra money it can gather to protect our planet. Russell Roberts, a space enthusiast from the National Public Radio, said to “Leave the money here on Earth.” Like many others, he sees no point in using taxpayer dollars for useless, hopeless expeditions. Even though the freedom of traveling through space is promising, “we would do well to remember that we do not have a...

Words: 649 - Pages: 3

Storage Technologies

...Storage Technologies Nearly every facet of computer technology, like processor speed, memory capacity and I/O capabilities has seen dramatic improvements since its inception. The one technology that has lagged behind is storage. Although data storage has seen considerable improvements from its infancy in 1956, it has not seen major disruptive changes; though, according to the CEO of Pure Storage, Scott Dietzen, in this next decade it’s going to be storage’s turn to face disruptive change (Korbin, 2011). This means that as this decade takes its course, we’ll see major changes in the way we store our data. Pure Storage, a company focused on data storage, has proposed one solution to our need to effectively and efficiently store large amounts of data. We all have heard of flash memory—non-volatile computer storage that can be electrically erased and reprogrammed—and we also know that flash memory is quite expensive compared to traditional storage technologies. The benefit of adopting flash memory for storing data has been unrealized by enterprises, primarily due to the high cost of implementing such infrastructure. Nevertheless, for enterprises undertaking the transition to a virtualized environment, flash memory can be an alluring proposition. Faster, smaller and more efficient than traditional disk technologies, flash makes a convincing case (Korbin, 2011). Scott Dietzens’ Pure Storage company boasts a solution that delivers enterprise-caliber storage at a price point...

Words: 871 - Pages: 4

Creating New Market Space

...In this article there are different strategies given to spot additional value innovation opportunities . Our task is to implement these on the mushroom business we have started. First I will explain the strategies with reference to our industry. The first one is to look across the strategic groups of the industry .mushroom is basically a vegetable, a vegetable which is not so common in Pakistan and difficult to grow. the vegetable industry basically has three strategic groups in Pakistan . the first are the street hawkers and small shops located in almost every kind of locality. The second are the big store outlets like Makro , Metro HKB express etc where people buy vegetables from . the last is the tinned or canned industry. In the last category major products are olive both black and green and different types of mushrooms. What I propose our strategy should be here is that first we should target the restaurants and the big stores like makro. If we fail to convince them then our focus should be towards the major markets where restaurant owners buy these products for example Main Market Gulberg. The second category is to look across the chain of buyers .the obvious customer group are the restaurant chefs. Here what we should do is that rather to focus them we should focus all of the upper middle and upper class. We should market or sell our product in a bit posh areas where this gentry buys their vegetables from. Because they are the ones who already know about mushrooms...

Words: 622 - Pages: 3

Case Analysi

...REVISED: 11/05/10 O NL IN E SI MU LA TIO N F OR EG R OU ND R E A D IN G Finance: Capital Budgeting Company and Industry Overview  The New Heritage Doll Company, based in Sacramento, California, was a privately held company  with  450  employees  and  approximately  $245  million  in  fiscal  2009  revenues.  This  represented  approximately  8%  of  the  $3.1  billion  U.S.  doll  industry,  which  was  projected  to  grow  by  2%  annually  to  $3.4  billion  in  retail  sales  by  2013.   In  turn,  the  doll  industry  represented  a  7.4%  share  of  the  total  $42  billion  U.S. market for toys and games, which was dominated by global enterprises that enjoyed economies of scale in design, production, and distribution. Revenues were highly seasonal; the largest selling season in the United States coincided with the winter holiday period.  The doll category included large, soft, and mini dolls, as well as doll clothes and other accessories.   The phenomenon of “age compression”—the tendency of younger children to prefer dolls that had traditionally been designed for older girls—reduced growth in the “baby-doll” sub-segment. Competition among doll producers was vigorous, as a small number of large producers targeted similar demographics and marketed their dolls through the same media. Lasting franchise value for a branded line of dolls was rare; the enormous success of Barbie® dolls was an obvious exception. More recently and on a much smaller scale...

Words: 2246 - Pages: 9