Head-To-Head Contrast: Extra Space Storage (NYSE:EXR) and KKR Real Estate Finance Trust (NYSE:KREF)

KKR Real Estate Finance Trust (NYSE:KREFGet Free Report) and Extra Space Storage (NYSE:EXRGet Free Report) are both finance companies, but which is the superior business? We will contrast the two businesses based on the strength of their dividends, earnings, profitability, institutional ownership, analyst recommendations, valuation and risk.

Risk & Volatility

KKR Real Estate Finance Trust has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Extra Space Storage has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Insider & Institutional Ownership

70.2% of KKR Real Estate Finance Trust shares are owned by institutional investors. Comparatively, 99.1% of Extra Space Storage shares are owned by institutional investors. 1.6% of KKR Real Estate Finance Trust shares are owned by insiders. Comparatively, 1.4% of Extra Space Storage shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares KKR Real Estate Finance Trust and Extra Space Storage’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
KKR Real Estate Finance Trust $640.41 million 1.01 -$30.85 million ($0.46) -20.35
Extra Space Storage $2.56 billion 12.71 $803.20 million $4.49 34.24

Extra Space Storage has higher revenue and earnings than KKR Real Estate Finance Trust. KKR Real Estate Finance Trust is trading at a lower price-to-earnings ratio than Extra Space Storage, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares KKR Real Estate Finance Trust and Extra Space Storage’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
KKR Real Estate Finance Trust -1.39% 10.38% 1.97%
Extra Space Storage 29.10% 6.76% 3.58%

Analyst Ratings

This is a breakdown of current recommendations and price targets for KKR Real Estate Finance Trust and Extra Space Storage, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
KKR Real Estate Finance Trust 0 2 4 0 2.67
Extra Space Storage 1 6 5 0 2.33

KKR Real Estate Finance Trust presently has a consensus target price of $11.82, indicating a potential upside of 26.30%. Extra Space Storage has a consensus target price of $151.83, indicating a potential downside of 1.23%. Given KKR Real Estate Finance Trust’s stronger consensus rating and higher possible upside, analysts clearly believe KKR Real Estate Finance Trust is more favorable than Extra Space Storage.

Dividends

KKR Real Estate Finance Trust pays an annual dividend of $1.00 per share and has a dividend yield of 10.7%. Extra Space Storage pays an annual dividend of $6.48 per share and has a dividend yield of 4.2%. KKR Real Estate Finance Trust pays out -217.4% of its earnings in the form of a dividend. Extra Space Storage pays out 144.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. KKR Real Estate Finance Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Extra Space Storage beats KKR Real Estate Finance Trust on 9 of the 16 factors compared between the two stocks.

About KKR Real Estate Finance Trust

(Get Free Report)

KKR Real Estate Finance Trust Inc., a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans. The company has elected to be taxed as a real estate investment trust and would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. KKR Real Estate Finance Trust Inc. was incorporated in 2014 and is headquartered in New York, New York.

About Extra Space Storage

(Get Free Report)

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.

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