Joe Margolis, CEO of Extra Space Storage Inc. (NYSE: EXR), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas, Nevada on Nov. 18-21.
Margolis provided an update on the integration of Life Storage assets and brand consolidation. He noted that the company has successfully digitally rebranded all stores, with temporary banners now redirected to Extra Space's website. While physical rebranding will take six to eight months, initial progress has been promising.
On the topic of capital markets, Margolis highlighted Extra Space's strong financial position, with a net debt to EBITDA ratio of 4.8%. He noted that the company has the capacity to take on more leverage and access capital through its joint venture partners, ensuring they are well-equipped to seize future opportunities.
Looking ahead to 2025, Margolis expressed optimism, predicting an improving operating environment. He expects fewer new self-storage supply additions, which would benefit industry fundamentals. Additionally, he anticipates a recovery in the housing market and improved consumer health, all of which should positively impact Extra Space's business performance.