Is EXR (Extra Space Storage Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, EXR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in EXR.

Extra Space Storage Inc. is a major real estate investment trust (REIT) headquartered in Utah, operating over 1,900 self-storage facilities across the United States. The company provides secure, rentable space for personal and business needs, including specialized vehicle, boat, and RV storage. For Muslim investors using HalalStocks.co.uk, EXR currently carries a Doubtful shariah compliance status. Although the underlying business of leasing storage space is completely halal and it passes the cash and interest income screens, the stock fails the critical debt threshold required by AAOIFI standards. The primary concern from an Islamic finance perspective is the company's heavy reliance on interest-bearing debt, with its debt-to-market capitalization ratio reaching 50.3%. However, its interest-bearing securities remain exceptionally low at 0.5%, and interest income is just under the 5% limit at 4.83%. Because the compliance failure is purely financial rather than operational, Muslim investors should monitor the company's balance sheet in future quarters. If market capitalization increases significantly or management pays down debt to bring the ratio below 33%, EXR could become a fully compliant halal investment option. Extra Space Storage Inc. operates in the Real Estate sector under the REIT - Industrial industry and is headquartered in Salt Lake City, UT, US. The company is led by CEO Joseph Daniel Margolis and employs approximately 8,012 people.

EXR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. EXR passed 3 of these 4 screens.

EXR was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.