0001289490false00012894902024-07-302024-07-30

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
July 30, 2024
(Date of Report (Date of Earliest Event Reported))

EXTRA SPACE STORAGE INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Maryland 001-32269 20-1076777
(State or Other Jurisdiction
of Incorporation)		 (Commission
File Number)		 (IRS Employer
Identification Number)
2795 East Cottonwood Parkway, Suite 300
Salt Lake City, Utah 84121
(Address of Principal Executive Offices)
(801) 365-4600
(Registrant’s Telephone Number, Including Area Code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $0.01 par valueEXRNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 30, 2024, Extra Space Storage Inc. (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated by reference herein.
The information contained in this Current Report, including the exhibit referenced herein, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information shall not be incorporated by reference into any filing of Extra Space Storage Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing.
ITEM 9.01        FINANCIAL STATEMENTS AND EXHIBITS
(d) The following exhibit is furnished herewith: 
Exhibit
Number		  Description of Exhibit
  Press Release dated July 30, 2024
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
EXTRA SPACE STORAGE INC.
Date:July 30, 2024By/s/ P. Scott Stubbs
Name:P. Scott Stubbs
Title:Executive Vice President and Chief Financial Officer



Exhibit 99.1
logoa13a.jpg
Extra Space Storage Inc.
PHONE (801) 365-4600
2795 East Cottonwood Parkway, Suite 300
Salt Lake City, Utah 84121
www.extraspace.com
FOR IMMEDIATE RELEASE

Extra Space Storage Inc. Reports 2024 Second Quarter Results
SALT LAKE CITY, July 30, 2024 — Extra Space Storage Inc. (NYSE: EXR) (the “Company”), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three and six months ended June 30, 2024.
Highlights for the three months ended June 30, 2024:
 
•Achieved net income attributable to common stockholders of $0.88 per diluted share, representing a 41.3% decrease compared to the same period in the prior year primarily due to a $54.7 million loss related to the write down of assets held for sale as well as non-cash interest, amortization of intangibles, and additional depreciation related to the Company's 2023 merger (the "Life Storage Merger") with Life Storage, Inc. ("Life Storage" or "LSI").

•Achieved funds from operations attributable to common stockholders and unit holders (“FFO”) of $1.98 per diluted share. FFO, excluding adjustments (“Core FFO”), was $2.06 per diluted share, which was flat compared to the same period in the prior year.

•Increased same-store revenue by 0.6% and same-store net operating income (“NOI”) decreased by (1.1)% compared to the same period in the prior year.

•Reported ending same-store occupancy of 94.3% as of June 30, 2024, compared to 94.0% as of June 30, 2023.

•The Company acquired two operating stores and one store at completion of construction (“Certificate of Occupancy stores” or “C of O stores”) for a total cost of approximately $27.6 million.

•In conjunction with a joint venture partners, completed two developments for a total cost of approximately $28.7 million, of which the Company invested $27.7 million.

•Originated $433.2 million in mortgage and mezzanine bridge loans and sold $11.1 million mortgage bridge loans.

•Added 77 stores (14 stores net) to the Company's third-party management platform. As of June 30, 2024, the Company managed 1,423 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,895 managed stores.

•Paid a quarterly dividend of $1.62 per share.





Highlights for the six months ended June 30, 2024:
•Achieved net income attributable to common stockholders of $1.88 per diluted share, representing a 36.3% decrease compared to the same period in the prior year, primarily due to a $54.7 million loss related to the write down of assets held for sale as well as non-cash interest, amortization of intangibles, additional depreciation related to the Life Storage Merger.

•Achieved FFO of $3.85 per diluted share, and Core FFO of $4.02 per diluted share, representing a 1.5% decrease compared to the same period in the prior year.

•Increased same-store revenue by 0.8% and same-store NOI decreased by (0.8)% compared to the same period in the prior year.

•Acquired seven operating store and two C of O stores for a total cost of approximately $62.7 million.

•In conjunction with joint venture partners, completed three developments for a total cost of approximately $49.1 million, of which the Company invested $47.1 million.

•Originated $597.5 million in mortgage and mezzanine bridge loans and sold $11.1 million in mortgage bridge loans.

•Added 174 stores (86 stores net) to the Company's third-party management platform.

Joe Margolis, CEO of Extra Space Storage Inc., commented: “We've maintained strong occupancy levels in the Extra Space and Life Storage same-store pools despite a challenging demand and new customer rate environment. The occupancy gains drove positive revenue growth in both pools. In addition, we continue to realize G&A savings and stronger than expected tenant insurance income, supporting solid FFO per share performance ahead of our projections."


FFO Per Share:
The following table (unaudited) outlines the Company’s FFO and Core FFO for the three and six months ended June 30, 2024 and 2023. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):
For the Three Months Ended June 30,For the Six Months Ended June 30,
2024202320242023
(per share)1
(per share)1
(per share)1
(per share)1
Net income attributable to common stockholders$185,872 $0.88 $202,410 $1.50 $398,984 $1.88 $398,714 $2.95 
Impact of the difference in weighted average number of shares – diluted2
(0.04)(0.09)(0.08)(0.17)
Adjustments:
Real estate depreciation153,217 0.68 72,385 0.50 307,589 1.38 143,633 1.00 
Amortization of intangibles28,137 0.13 3,609 0.03 57,421 0.26 7,779 0.05 
Loss on real estate assets held for sale54,659 0.25 — — 54,659 0.25 — — 
Unconsolidated joint venture real estate depreciation and amortization8,009 0.04 4,722 0.03 15,849 0.07 9,661 0.07 
Distributions paid on Series A Preferred Operating Partnership units— — — — — — (159)— 
Income allocated to Operating Partnership and other noncontrolling interests 9,540 0.04 12,902 0.09 20,502 0.09 25,476 0.18 
FFO$439,434 $1.98 $296,028 $2.06 $855,004 $3.85 $585,104 $4.08 
Adjustments:
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes10,853 0.05 — — 21,558 0.10 — — 
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit7,438 0.03 — — 14,878 0.07 — — 
CORE FFO$457,725 $2.06 $296,028 $2.06 $891,440 $4.02 $585,104 $4.08 
Weighted average number of shares – diluted3
221,857,627 143,752,935 221,797,751 143,555,781 

(1)Per share amounts may not recalculate due to rounding.

(2)The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).

(3)Extra Space Storage LP (the “Operating Partnership”) has outstanding preferred and common Operating Partnership units (“OP units”). These OP units can be redeemed for cash or, at the Company’s election, shares of the Company’s common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.









Operating Results and Same-Store Performance:
The following table (unaudited) outlines the Company’s same-store performance for the three and six months ended June 30, 2024 and 2023 (amounts shown in thousands, except store count data)1:
 For the Three Months Ended June 30,PercentFor the Six Months Ended June 30,Percent
 20242023Change20242023Change
Same-store property revenues2
Net rental income$403,087 $400,279 0.7%$801,879 $795,538 0.8%
Other income16,162 16,425 (1.6)%32,027 31,745 0.9%
Total same-store revenues$419,249 $416,704 0.6%$833,906 $827,283 0.8%
Same-store operating expenses2
Payroll and benefits$23,959 $22,464 6.7%$48,465 $44,990 7.7%
Marketing9,164 7,639 20.0%18,017 14,812 21.6%
Office expense3
12,937 12,925 0.1%26,352 25,981 1.4%
Property operating expense4
8,275 8,892 (6.9)%18,562 19,904 (6.7)%
Repairs and maintenance6,926 6,409 8.1%14,396 13,494 6.7%
Property taxes39,600 37,284 6.2%77,657 74,700 4.0%
Insurance5,066 4,315 17.4%10,328 8,236 25.4%
Total same-store operating expenses$105,927 $99,928 6.0%$213,777 $202,117 5.8%
Same-store net operating income2
$313,322 $316,776 (1.1)%$620,129 $625,166 (0.8)%
Same-store square foot occupancy as of quarter end94.3%94.0%94.3%94.0%
Average same-store square foot occupancy94.1%93.7%93.6%93.2%
Properties included in same-store5
1,0781,0781,0781,078

(1)A reconciliation of net income to same-store net operating income is provided later in this release, entitled “Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income.”
(2)Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.
(3)Includes general office expenses, computer, bank fees, and credit card merchant fees.
(4)Includes utilities and miscellaneous other store expenses.
(5)On January 1, 2024 the Company updated the property count of the same-store pool from 913 to 1,078 stores.

Details related to the same-store performance of stores by metropolitan statistical area (“MSA”) for the three and six months ended June 30, 2024, and 2023 are provided in the supplemental financial information published on the Company’s Investor Relations website at https://ir.extraspace.com/.













Investment and Property Management Activity:
The following table (unaudited) outlines the Company’s acquisitions and developments that are closed, completed or under agreement (dollars in thousands).
Closed/Completed through June 30, 2024
Closed/Completed Subsequent to June 30, 2024
Scheduled to Still Close/Complete in 2024
Total 2024
To Close/Complete in 2025
Wholly-Owned InvestmentStoresPriceStoresPriceStoresPriceStoresPriceStoresPrice
Operating Stores7$40,350 2$24,000 4$57,500 13$121,850 —$— 
C of O and Development Stores1
222,371 111,966 113,200 447,537 —— 
EXR Investment in Wholly-Owned Stores962,721 335,966 570,700 17169,387 —— 
Joint Venture Investment1
EXR Investment in JV Acquisition of Operating Stores—— —— 59,200 59,200 —— 
EXR Investment in JV Development and C of O347,050 111,226 656,984 10115,260 344,082 
EXR Investment in Joint Ventures347,050 111,226 1166,184 15124,460 344,082 
Total EXR Investment12$109,771 4$47,192 16$136,884 32$293,847 3$44,082 
(1)The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company’s Investor Relations website at https://ir.extraspace.com/.

The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.
Property Sales:
During the three months ended June 30, 2024, the Company listed seven properties for sale. Held for sale accounting requires that the properties be recorded at current fair value less selling costs. These assets were adjusted to fair value less selling costs resulting in a loss of $54.7 million.
Bridge Loans:
During the three months ended June 30, 2024, the Company originated $433.2 million in bridge loans and sold one bridge loan totaling $11.1 million. Outstanding balances of the Company's bridge loans were approximately $1.1 billion at quarter end. The Company has an additional $310.2 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2024 and 2025. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company’s Investor Relations website at https://ir.extraspace.com/.
Property Management:
As of June 30, 2024, the Company managed 1,423 stores for third-party owners and 472 stores owned in unconsolidated joint ventures, for a total of 1,895 stores under management. The Company is the largest self-storage management company in the United States.
Balance Sheet:
During the three months ended June 30, 2024, the Company did not issue any shares on its ATM program, and as of June 30, 2024, the Company had $800.0 million available for issuance. Likewise, the Company did not repurchase any shares of common stock using its stock repurchase program during the quarter, and as of June 30, 2024, the Company had authorization to purchase up to $500.0 million under the program.
During the three months ended June 30, 2024 , the Company reestablished its ATM program by entering a new equity distribution agreement for $800.0 million, which replaced and superseded its previous equity distribution agreement.
As of June 30, 2024, the Company’s percentage of fixed-rate debt to total debt was 75.0%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 84.7%. The weighted average interest rates of the Company’s fixed and variable-rate debt were 4.0% and 6.5%, respectively. The combined weighted average interest rate was 4.6% with a weighted average maturity of approximately 4.7 years.


Dividends:
On June 28, 2024, the Company paid a second quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on June 14, 2024.



Outlook:
The following table outlines the Company's current and prior quarter Core FFO estimates and assumptions for the year ending December 31, 20241.
Ranges for 2024
Annual Assumptions		Ranges for 2024
Annual Assumptions		Notes
(July 30, 2024)(April 30, 2024)
LowHighLowHigh
Core FFO$7.95$8.15$7.85$8.15
Dilution per share from C of O and value add acquisitions$0.20$0.20$0.20$0.20
EXR Same-store revenue growth(1.00)%0.50%(2.00)%0.50%Same-store pool of 1,078 stores
EXR Same-store expense growth4.00%5.00%4.00%5.50%Same-store pool of 1,078 stores
EXR Same-store NOI growth(3.00)%(0.50)%(4.25)%(0.50)%Same-store pool of 1,078 stores
Legacy LSI Same-store revenue growth0.50%2.00%2.00%4.50%Same-store pool of 662 stores
Legacy LSI Same-store expense growth4.50%5.50%6.25%7.75%Same-store pool of 662 stores
Legacy LSI Same-store NOI growth(1.50)%1.00%(0.25)%4.00%Same-store pool of 662 stores
Weighted average one-month SOFR5.20%5.20%5.20%5.20%
Net tenant reinsurance income$253,000,000$256,000,000$248,000,000$251,000,000
Management fees and other income$119,000,000$120,000,000$117,500,000$118,500,000
Interest income$117,000,000$118,000,000$105,000,000$106,000,000Includes interest from bridge loans and dividends from NexPoint preferred investment
General and administrative expenses$171,000,000$173,000,000$176,000,000$178,000,000Includes non-cash compensation
Average monthly cash balance$50,000,000$50,000,000$60,000,000$60,000,000
Equity in earnings of real estate ventures$66,000,000$67,000,000$66,000,000$67,000,000Includes dividends from SmartStop preferred investments
Interest expense$541,000,000$545,000,000$537,000,000$541,000,000Excludes non-cash interest expense shown below
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes$43,000,000$44,000,000$43,000,000$44,000,000Amortization of LSI debt mark-to-market; excluded from Core FFO
Income Tax Expense$35,000,000$36,000,000$32,000,000$33,000,000Taxes associated with the Company's taxable REIT subsidiary
Acquisitions$400,000,000$400,000,000$250,000,000$250,000,000Represents the Company's investment
Bridge loans outstanding$900,000,000$900,000,000$825,000,000$825,000,000Represents the Company's average retained loan balances for 2024
Weighted average share count221,866,000221,866,000221,800,000221,800,000Assumes redemption of all OP units for common stock
(1) A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."


FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company’s estimates are forward-looking and based on management’s view of current and future market conditions. The Company’s actual results may differ materially from these estimates.

Supplemental Financial Information:
Supplemental unaudited financial information regarding the Company’s performance can be found on the Company’s website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on “Investor Relations,” then under the “Financials & Stock Information” navigation menu click on “Quarterly Earnings.” This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.
Conference Call:
The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, July 31, 2024, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://register.vevent.com/register/BI1722e0ceeec44bb395d1d77fcbbae5d2.
A live webcast of the call will also be available on the Company’s investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.
A replay of the call will be available for 30 days on the investor relations section of the Company’s website beginning at 5:00 p.m. Eastern Time on July 31, 2024.
Forward-Looking Statements:
Certain information set forth in this release contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year, statements concerning the impact of the Life Storage Merger and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, plans or intentions relating to acquisitions and developments, estimated hurricane-related insurance claims and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as “believes,” “estimates,” “expects,” “may,” “will,” “should,” “anticipates,” or “intends,” or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the “Risk Factors” section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:
•adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
•failure to realize the expected benefits of the Life Storage Merger;
•the risk that Life Storage’s business will not be fully integrated successfully or that such integration may be more difficult, time-consuming or costly than expected;
•the uncertainty of expected future financial performance and results of the combined company following completion of the Life Storage Merger;
•failure to close pending acquisitions and developments on expected terms, or at all;
•the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline;
•potential liability for uninsured losses and environmental contamination;
•the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts (“REITs”), tenant reinsurance and other aspects of our business, which could adversely affect our results;
•our ability to recover losses under our insurance policies;
•disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;


•our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results;
•changes in global financial markets and increases in interest rates;
•availability of financing and capital, the levels of debt that we maintain and our credit ratings;
•risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors;
•reductions in asset valuations and related impairment charges;
•our lack of sole decision-making authority with respect to our joint venture investments;
•the effect of recent or future changes to U.S. tax laws;
•the failure to maintain our REIT status for U.S. federal income tax purposes;
•impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results; and
•economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan.
All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
Definition of FFO:
FFO provides relevant and meaningful information about the Company’s operating performance that is necessary, along with net income and cash flows, for an understanding of the Company’s operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company’s real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income computed in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company’s performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company’s consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.
For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including transition costs, non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company’s calculation of Core FFO differs from NAREIT’s definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company’s performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company’s ability to make cash distributions.
Definition of Same-Store:
The Company’s same-store pool for the periods presented consists of 1,078 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it


has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments.  Same-store results should not be used as a basis for future same-store performance or for the performance of the Company’s stores as a whole. No modification has been made to the same-store pool to include any assets acquired from Life Storage.
About Extra Space Storage Inc.:
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 June 30, 2024, the Company owned and/or operated 3,812 self-storage stores in 42 states and Washington, D.C. The Company’s stores comprise approximately 2.6 million units and approximately 292.1 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.

###
For Information:
Jared Conley
Extra Space Storage Inc.
(801) 365-1759


Extra Space Storage Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share data)
June 30, 2024December 31, 2023
(Unaudited)
Assets:
Real estate assets, net$24,340,817 $24,555,873 
Real estate assets - operating lease right-of-use assets218,823 227,241 
Investments in unconsolidated real estate entities1,065,155 1,071,617 
Investments in debt securities and notes receivable1,442,681 904,769 
Cash and cash equivalents76,973 99,062 
Other assets, net617,631 597,700 
Total assets $27,762,080 $27,456,262 
Liabilities, Noncontrolling Interests and Equity:
Secured notes payable, net$1,265,981 $1,273,549 
Unsecured term loans, net2,252,872 2,650,581 
Unsecured senior notes, net7,028,452 6,410,618 
Revolving lines of credit948,000 682,000 
Operating lease liabilities229,035 236,515 
Cash distributions in unconsolidated real estate ventures73,133 71,069 
Accounts payable and accrued expenses381,941 334,518 
Other liabilities451,826 383,463 
Total liabilities 12,631,240 12,042,313 
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding— — 
Common stock, $0.01 par value, 500,000,000 shares authorized, 211,927,348 and 211,278,803 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively2,120 2,113 
Additional paid-in capital14,810,938 14,750,388 
Accumulated other comprehensive income27,241 17,435 
Accumulated deficit(667,667)(379,015)
Total Extra Space Storage Inc. stockholders' equity14,172,632 14,390,921 
Noncontrolling interest represented by Preferred Operating Partnership units, net 191,306 222,360 
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests766,902 800,668 
Total noncontrolling interests and equity15,130,840 15,413,949 
Total liabilities, noncontrolling interests and equity$27,762,080 $27,456,262 



Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2024 and 2023
(In thousands, except share and per share data) - Unaudited
For the Three Months Ended June 30,For the Six Months Ended June 30,
2024202320242023
Revenues:
Property rental$697,100 $440,747 $1,385,144 $874,709 
Tenant reinsurance83,705 48,433 165,052 96,137 
Management fees and other income29,858 22,206 60,006 43,590 
Total revenues810,663 511,386 1,610,202 1,014,436 
Expenses:
Property operations196,902 114,637 401,420 231,803 
Tenant reinsurance 19,631 9,482 38,136 18,571 
General and administrative39,901 34,842 83,623 69,605 
Depreciation and amortization194,809 79,086 391,775 157,576 
Total expenses451,243 238,047 914,954 477,555 
Loss on real estate assets held for sale(54,659)— (54,659)— 
Income from operations304,761 273,339 640,589 536,881 
Interest expense(137,133)(86,372)(270,020)(166,471)
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes(10,853)— (21,558)— 
Interest income31,226 21,077 54,799 40,515 
Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense188,001 208,044 403,810 410,925 
Equity in earnings and dividend income from unconsolidated real estate entities17,255 13,254 32,262 23,559 
Income tax expense(9,844)(5,986)(16,586)(10,294)
Net income195,412 215,312 419,486 424,190 
Net income allocated to Preferred Operating Partnership noncontrolling interests(1,933)(2,254)(4,141)(4,508)
Net income allocated to Operating Partnership and other noncontrolling interests(7,607)(10,648)(16,361)(20,968)
Net income attributable to common stockholders$185,872 $202,410 $398,984 $398,714 
Earnings per common share
Basic $0.88 $1.50 $1.88 $2.96 
Diluted $0.88 $1.50 $1.88 $2.95 
Weighted average number of shares
Basic211,584,155 134,832,232 211,433,877 134,672,672 
Diluted211,587,105 143,529,817 220,114,016 143,337,522 
Cash dividends paid per common share$1.62 $1.62 $3.24 $3.24 



Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Six Months Ended June 30, 2024 and 2023 (In thousands) - Unaudited
For the Three Months Ended June 30,For the Six Months Ended June 30,
2024202320242023
Net Income$195,412 $215,312 $419,486 $424,190 
Adjusted to exclude:
Loss on real estate assets held for sale54,659 — 54,659 — 
Equity in earnings and dividend income from unconsolidated real estate entities(17,255)(13,254)(32,262)(23,559)
Interest expense137,133 86,372 270,020 166,471 
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes10,853 — 21,558 — 
Depreciation and amortization194,809 79,086 391,775 157,576 
Income tax expense9,844 5,986 16,586 10,294 
General and administrative39,901 34,842 83,623 69,605 
Management fees, other income and interest income(61,084)(43,283)(114,805)(84,105)
Net tenant insurance(64,074)(38,951)(126,916)(77,566)
Non same-store rental revenue(277,851)(24,043)(551,238)(47,426)
Non same-store operating expense90,975 14,709 187,643 29,686 
Total same-store net operating income$313,322 $316,776 $620,129 $625,166 
Same-store rental revenues419,249 416,704 833,906 827,283 
Same-store operating expenses105,927 99,928 213,777 202,117 
Same-store net operating income$313,322 $316,776 $620,129 $625,166 




Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share — for the Year Ending December 31, 2024 - Unaudited
For the Year Ending December 31, 2024
Low EndHigh End
Net income attributable to common stockholders per diluted share$3.74 $3.94 
Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership0.20 0.20 
Net income attributable to common stockholders for diluted computations3.94 4.14 
Adjustments:
Real estate depreciation2.78 2.78 
Amortization of intangibles0.52 0.52 
Unconsolidated joint venture real estate depreciation and amortization0.14 0.14 
Loss on real estate transactions0.25 0.25 
Funds from operations attributable to common stockholders7.63 7.83 
Adjustments:
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes0.20 0.20 
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit0.12 0.12 
Core funds from operations attributable to common stockholders$7.95 $8.15 



Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2024 (In thousands) - Unaudited
For the Year Ending December 31, 2024
 Low  High
Net Income$929,000 $972,500 
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures(66,000)(67,000)
Interest expense545,000 541,000 
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes44,000 43,000 
Depreciation and amortization783,000 783,000 
Income tax expense36,000 35,000 
General and administrative 173,000 171,000 
Management fees and other income(119,000)(120,000)
Interest income(117,000)(118,000)
Net tenant reinsurance income(253,000)(256,000)
Non same-store rental revenues(1,125,000)(1,125,000)
Non same-store operating expenses397,000 397,000 
Total same-store net operating income1
$1,225,000 $1,254,500 
Same-store rental revenues1
1,657,500 1,683,000 
Same-store operating expenses1
432,500 428,500 
Total same-store net operating income1
$1,225,000 $1,254,500 

(1)Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2024 same-store pool of 1,078 stores.

v3.24.2
Cover
Jul. 30, 2024
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Jul. 30, 2024
Entity Registrant Name EXTRA SPACE STORAGE INC.
Entity Central Index Key 0001289490
Entity Incorporation, State or Country Code MD
Entity File Number 001-32269
Entity Tax Identification Number 20-1076777
Entity Address, Address Line One 2795 East Cottonwood Parkway, Suite 300
Entity Address, City or Town Salt Lake City
Entity Address, State or Province UT
Entity Address, Postal Zip Code 84121
City Area Code 801
Local Phone Number 365-4600
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.01 par value
Trading Symbol EXR
Security Exchange Name NYSE
Extra Space Storage (NYSE:EXR)
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