0001289490false00012894902025-02-252025-02-25

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
February 25, 2025
(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 February 25, 2025, Extra Space Storage Inc. (the “Company”) issued a press release announcing its financial results for the three months and year ended December 31, 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 February 25, 2025
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:February 25, 2025By/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 Fourth Quarter and Year-End Results
SALT LAKE CITY, February 25, 2025 — 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 months and year ended December 31, 2024.
Highlights for the three months ended December 31, 2024:
 
•Achieved net income attributable to common stockholders of $1.24 per diluted share, representing a 21.6% increase compared to the same period in the prior year.
•Achieved funds from operations attributable to common stockholders and unit holders (“FFO”) of $1.96 per diluted share. FFO, excluding adjustments (“Core FFO”), was $2.03 per diluted share, representing a 0.5% increase compared to the same period in the prior year.
•Same-store revenue decreased by (0.4)% and same-store net operating income (“NOI”) decreased by (3.5)% compared to the same period in the prior year.
•Reported ending same-store occupancy of 93.7% as of December 31, 2024, compared to 92.5% as of December 31, 2023.
•Acquired 38 operating stores for a total cost of approximately $359.7 million.
•Increased ownership interest in two existing joint venture partnerships to 49.0% for $251.2 million.
•Originated $224.4 million in mortgage and mezzanine bridge loans and sold $9.2 million mortgage bridge loans.
•Added 130 stores (114 stores net) to the Company's third-party management platform. As of December 31, 2024, the Company managed 1,575 stores for third parties and 460 stores in unconsolidated joint ventures, for a total of 2,035 managed stores.
•Initiated an unsecured commercial paper program. As of December 31, 2024, the commercial paper program had total capacity of $1.0 billion, with $500.0 million in outstanding issuances.
•Paid a quarterly dividend of $1.62 per share.
Highlights for the year ended December 31, 2024:
•Achieved net income attributable to common stockholders of $4.03 per diluted share, representing a (15.0)% decrease compared to the same period in the prior year.

•Achieved FFO of $7.57 per diluted share, and Core FFO of $8.12 per diluted share, representing a 0.2% increase compared to the same period in the prior year.

•Increased same-store revenue by 0.2% and same-store NOI decreased by (1.5)% compared to the same period in the prior year.



•Acquired 55 operating stores and three stores at completion of construction (“Certificate of Occupancy stores” or “C of O stores”) for a total cost of approximately $581.0 million.

•In conjunction with joint venture partners, acquired five operating stores, one C of O store, completed seven developments and increased ownership interest in two existing joint ventures to 49.0% for a total net investment of approximately $360.3 million.

•Originated $980.2 million in mortgage and mezzanine bridge loans and sold $199.3 million in mortgage bridge loans.

•Added 367 stores (238 stores net) to the Company's third-party management platform.

Joe Margolis, CEO of Extra Space Storage Inc., commented: “The team continues to optimize performance in a challenging macro environment. This is evidenced by our ability to maintain strong occupancy during a time of year which is typically marked by occupancy declines. Our people, systems and high occupancy position the portfolio for future revenue growth as conditions improve. The outsized growth in our third-party management, bridge loan and insurance businesses, as well as our ability to find creative and off-market investment opportunities, continue to provide an avenue of growth in an otherwise tough operating environment, and contribute to Core FFO per share growth modestly ahead of our projections."

“We expect much of the same in 2025 – a challenging but slowly improving operating environment, augmented by contributions to FFO from our ancillary businesses and structured investments.”




FFO Per Share:
The following table (unaudited) outlines the Company’s FFO and Core FFO for the three months and year ended December 31, 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 December 31,For the Year Ended December 31,
2024202320242023
(per share)1
(per share)1
(per share)1
(per share)1
Net income attributable to common stockholders$262,487 $1.24 $216,134 $1.02 $854,681 $4.03 $803,198 $4.74 
Impact of the difference in weighted average number of shares – diluted2
(0.05)(0.05)(0.17)(0.25)
Adjustments:
Real estate depreciation156,027 0.70 152,881 0.69 618,189 2.78 418,149 2.34 
Amortization of intangibles28,305 0.13 30,246 0.14 113,886 0.51 59,295 0.33 
(Gain) loss on real estate assets held for sale and sold, net(37,714)(0.17)— — 25,906 0.12 — — 
Unconsolidated joint venture real estate depreciation and amortization8,907 0.04 8,041 0.04 32,678 0.15 24,400 0.14 
Unconsolidated joint venture gain on sale of real estate assets and sale of a joint venture interest— — — — (13,730)(0.06)— — 
Distributions paid on Series A Preferred Operating Partnership units— — — — — — (159)— 
Income allocated to Operating Partnership and other noncontrolling interests 15,314 0.07 11,273 0.05 45,551 0.21 47,255 0.26 
FFO$433,326 $1.96 $418,575 $1.89 $1,677,161 $7.57 $1,352,138 $7.56 
Adjustments:
Life Storage Merger transition costs— — 12,558 0.05 — — 66,732 0.37 
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes11,157 0.05 10,558 0.05 43,720 0.20 18,786 0.10 
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit5,761 0.02 7,440 0.03 26,959 0.12 12,400 0.07 
Impairment of Life Storage trade name— — — — 51,763 0.23 — — 
CORE FFO$450,244 $2.03 $449,131 $2.02 $1,799,603 $8.12 $1,450,056 $8.10 
Weighted average number of shares – diluted3
221,329,035 221,916,681 221,623,954 178,969,993 

(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 months and year ended December 31, 2024, and 2023 (amounts shown in thousands, except store count data)1:
 For the Three Months Ended December 31,PercentFor the Year Ended December 31,Percent
 20242023Change20242023Change
Same-store property revenues2
Net rental income$400,263 $400,954 (0.2)%$1,601,455 $1,596,015 0.3%
Other income15,622 16,508 (5.4)%64,300 65,689 (2.1)%
Total same-store revenues$415,885 $417,462 (0.4)%$1,665,755 $1,661,704 0.2%
Same-store operating expenses2
Payroll and benefits$24,247 $23,466 3.3%$95,696 $91,329 4.8%
Marketing8,250 7,740 6.6%34,038 30,237 12.6%
Office expense3
12,635 12,816 (1.4)%51,606 51,655 (0.1)%
Property operating expense4
9,408 8,821 6.7%37,646 38,491 (2.2)%
Repairs and maintenance6,739 6,682 0.9%27,934 26,469 5.5%
Property taxes44,593 36,219 23.1%165,617 152,028 8.9%
Insurance4,645 5,210 (10.8)%19,512 18,718 4.2%
Total same-store operating expenses$110,517 $100,954 9.5%$432,049 $408,927 5.7%
Same-store net operating income2
$305,368 $316,508 (3.5)%$1,233,706 $1,252,777 (1.5)%
Same-store square foot occupancy as of quarter end93.7%92.5%93.7%92.5%
Average same-store square foot occupancy94.1%92.9%93.9%93.3%
Properties included in same-store5
1,0711,0711,0711,071

(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. In the year ended December 31, 2024, six properties were removed from the pool due to structural damage and redevelopment and one property was sold, reducing the same-store pool to 1,071 stores.

Details related to the same-store performance of stores by metropolitan statistical area (“MSA”) for the three months and year ended December 31, 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 December 31, 2024
Closed/Completed Subsequent to December 31, 2024
Scheduled to Still Close/Complete in 2025Total 2025
Wholly-Owned Investment1
StoresPriceStoresPriceStoresPriceStoresPrice
Operating Stores2
55$546,672 8$97,883 2$20,250 10$118,133 
C of O and Development Stores1
334,337 —— —— —— 
EXR Investment in Wholly-Owned Stores58581,009 897,883 220,250 10118,133 
Joint Venture Investment1
EXR Investment in JV Acquisition of Operating Stores59,200 111,025 112,240 223,265 
EXR Increased Investment in Existing JVs—251,200 —— — — — — 
EXR Investment in JV Development and C of O899,917 112,138 673,641 785,779 
EXR Investment in Joint Ventures13360,317 223,163 785,881 9109,044 
Total EXR Investment71$941,326 10$121,046 9$106,131 19$227,177 
(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/.
(2)Includes the buyout of partner's interest in one property in the quarter.

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.
Other Investment Activity:
On February 4, 2025, the Company invested $100.0 million in shares of convertible preferred stock of Strategic Storage Growth Trust III, Inc. ("SSGT"). The dividend rate for the convertible preferred stock is 8.85% per annum, and is subject to increase beginning in 2030. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SSGT.
Property Sales:
During the three months ended December 31, 2024, the Company sold five properties, four of which were previously held for sale, resulting in a net gain of $37.7 million. Subsequent to quarter end the Company sold 11 properties held for sale at year end.
Bridge Loans:
During the three months ended December 31, 2024, the Company originated $224.4 million in bridge loans and sold bridge loans totaling $9.2 million. Outstanding balances of the Company's bridge loans were approximately $1.2 billion at year end. The Company has an additional $203.7 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 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 December 31, 2024, the Company managed 1,575 stores for third-party owners and 460 stores owned in unconsolidated joint ventures, for a total of 2,035 stores under management. The Company is the largest self-storage management company in the United States.
Balance Sheet:
During the three months ended December 31, 2024, the Company did not issue any shares on its ATM program, and as of December 31, 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 December 31, 2024, the Company had authorization to purchase up to $500.0 million under the program.
During the three months ended December 31, 2024, the Company re-opened an existing issuance of 5.70% senior unsecured notes due 2028 and issued an additional $300.0 million at a premium of 102.86% with an effective offer rate of 4.74%.
During the three months ended December 31, 2024, the Company initiated an unsecured commercial paper program which received initial short-term ratings of A-2 from S&P Global Ratings and P-2 from Moody's. As of December 31, 2024, the commercial paper program had total capacity of $1.0 billion, with $500.0 million in outstanding issuances.
As of December 31, 2024, the Company’s percentage of fixed-rate debt to total debt was 75.8%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 85.7%. The weighted average interest rates of the Company’s fixed and variable-rate debt were 4.1% and 5.4%, respectively. The combined weighted average interest rate was 4.4% with a weighted average maturity of approximately 4.4 years.
Subsequent to quarter end, the Company re-opened an existing issuance of 5.50% senior unsecured notes due 2030 and issued an additional $350.0 million at a premium of 101.51% with an effective offer rate of 5.17%.
Subsequent to quarter end the Company paid off a $245.0 million unsecured note maturing January 2025.
Dividends:
On December 31, 2024, the Company paid a fourth quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on December 16, 2024.


Outlook:
The following table outlines the Company's current and prior quarter Core FFO estimates and assumptions for the year ending December 31, 20251.
Ranges for 2025
Annual Assumptions		Notes
(February 25, 2025)
LowHigh
Core FFO$8.00$8.30
Dilution per share from C of O and value add acquisitions$0.22$0.22
Same-store revenue growth(0.75)%1.25%Same-store pool of 1,829 stores
Same-store expense growth3.75%5.25%Same-store pool of 1,829 stores
Same-store NOI growth(3.00)%0.25%Same-store pool of 1,829 stores
Weighted average one-month SOFR4.15%4.15%
Net tenant reinsurance income$268,000,000$271,000,000
Management fees and other income$125,000,000$126,500,000
Interest income$150,500,000$152,000,000Includes interest from bridge loans and dividends from NexPoint preferred investment
General and administrative expenses$184,000,000$186,000,000Includes non-cash compensation
Average monthly cash balance$45,000,000$45,000,000
Equity in earnings of real estate ventures$89,000,000$90,000,000Includes dividends from SmartStop preferred investments
Interest expense$570,000,000$575,000,000Excludes non-cash interest expense shown below.
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes$46,000,000$47,000,000Amortization of LSI debt mark-to-market; excluded from Core FFO
Income Tax Expense$38,000,000$39,000,000Taxes associated with the Company's taxable REIT subsidiary
Acquisitions$325,000,000$325,000,000Includes wholly-owned acquisitions and the Company's investment in joint ventures
Bridge loans outstanding$1,450,000,000$1,450,000,000Represents the Company's average retained loan balances for 2025
Weighted average share count222,200,000222,200,000Assumes 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, February 26, 2025, 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://emportal.ink/3PKtvFm
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 February 26, 2025.
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 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;
•potential liability for uninsured losses and environmental contamination;
•our ability to recover losses under our insurance policies;
•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;
•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;
•failure to close pending acquisitions and developments on expected terms, or at all;
•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 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;
•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;
•economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan;


•our lack of sole decision-making authority with respect to our joint venture investments;
•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;
•availability of financing and capital, the levels of debt that we maintain and our credit ratings;
•changes in global financial markets and increases in interest rates;
•the effect of recent or future changes to U.S. tax laws; and
•the failure to maintain our REIT status for U.S. federal income tax purposes.
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, amortization of other intangibles, net of tax benefit, and impairment of Life Storage trade name. 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 1,071 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 December 31, 2024, the Company owned and/or operated 4,011 self-storage stores in 42 states and Washington, D.C. The Company’s stores comprise approximately 2.8 million units and approximately 308.4 million square feet of rentable space operating under the Extra Space brand. 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)
December 31, 2024December 31, 2023
(Unaudited)
Assets:
Real estate assets, net$24,587,627 $24,555,873 
Real estate assets - operating lease right-of-use assets689,803 227,241 
Investments in unconsolidated real estate entities1,332,338 1,071,617 
Investments in debt securities and notes receivable1,550,950 904,769 
Cash and cash equivalents138,222 99,062 
Other assets, net548,986 597,700 
Total assets $28,847,926 $27,456,262 
Liabilities, Noncontrolling Interests and Equity:
Secured notes payable, net$1,010,541 $1,273,549 
Unsecured term loans, net2,192,507 2,650,581 
Unsecured senior notes, net7,756,968 6,410,618 
Revolving lines of credit and commercial paper1,362,000 682,000 
Operating lease liabilities705,845 236,515 
Cash distributions in unconsolidated real estate ventures75,319 71,069 
Accounts payable and accrued expenses346,519 334,518 
Other liabilities538,865 383,463 
Total liabilities 13,988,564 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, 211,995,510 and 211,278,803 shares issued and outstanding at December 31, 2024 and December 31, 2023, respectively2,120 2,113 
Additional paid-in capital14,831,946 14,750,388 
Accumulated other comprehensive income12,806 17,435 
Accumulated deficit(899,337)(379,015)
Total Extra Space Storage Inc. stockholders' equity13,947,535 14,390,921 
Noncontrolling interest represented by Preferred Operating Partnership units, net76,092 222,360 
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests835,735 800,668 
Total noncontrolling interests and equity14,859,362 15,413,949 
Total liabilities, noncontrolling interests and equity$28,847,926 $27,456,262 



Consolidated Statement of Operations for the Three Months and Year Ended December 31, 2024 and 2023
(In thousands, except share and per share data) - Unaudited
For the Three Months Ended December 31,For the Year Ended December 31,
2024202320242023
Revenues:
Property rental$707,234 $696,982 $2,803,252 $2,222,578 
Tenant reinsurance83,695 70,415 332,795 235,680 
Management fees and other income30,967 30,377 120,855 101,986 
Total revenues821,896 797,774 3,256,902 2,560,244 
Expenses:
Property operations221,111 195,039 831,566 612,036 
Tenant reinsurance 18,240 21,173 73,886 58,874 
Life Storage Merger transition costs— 12,558 — 66,732 
General and administrative44,025 39,397 167,398 146,408 
Depreciation and amortization196,202 196,139 783,023 506,053 
Total expenses479,578 464,306 1,855,873 1,390,103 
Gain (loss) on real estate assets held for sale and sold, net37,714 — (25,906)— 
Impairment of Life Storage trade name— — (51,763)— 
Income from operations380,032 333,468 1,323,360 1,170,141 
Interest expense(138,479)(129,665)(551,354)(419,035)
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes(11,157)(10,558)(43,720)(18,786)
Interest income34,676 22,250 124,422 84,857 
Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense265,072 215,495 852,708 817,177 
Equity in earnings and dividend income from unconsolidated real estate entities18,764 16,233 67,272 54,835 
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest— — 13,730 — 
Income tax expense(6,035)(4,321)(33,478)(21,559)
Net income277,801 227,407 900,232 850,453 
Net income allocated to Preferred Operating Partnership noncontrolling interests(1,189)(2,250)(7,262)(9,011)
Net income allocated to Operating Partnership and other noncontrolling interests(14,125)(9,023)(38,289)(38,244)
Net income attributable to common stockholders$262,487 $216,134 $854,681 $803,198 
Earnings per common share
Basic $1.24 $1.02 $4.03 $4.74 
Diluted $1.24 $1.02 $4.03 $4.74 
Weighted average number of shares
Basic211,737,843 211,071,794 211,575,240 169,216,989 
Diluted211,737,843 219,961,282 211,577,680 169,220,882 



Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months and Year Ended December 31, 2024 and 2023 (In thousands) - Unaudited
For the Three Months Ended December 31,For the Year Ended December 31,
2024202320242023
Net Income$277,801 $227,407 $900,232 $850,453 
Adjusted to exclude:
(Gain) loss on real estate assets held for sale and sold, net(37,714)— 25,906 — 
Equity in earnings and dividend income from unconsolidated real estate entities(18,764)(16,233)(67,272)(54,835)
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest— — (13,730)— 
Interest expense138,479 129,665 551,354 419,035 
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes11,157 10,558 43,720 18,786 
Depreciation and amortization196,202 196,139 783,023 506,053 
Impairment of Life Storage trade name— — 51,763 — 
Income tax expense6,035 4,321 33,478 21,559 
Life Storage Merger transition costs— 12,558 — 66,732 
General and administrative44,025 39,397 167,398 146,408 
Management fees, other income and interest income(65,643)(52,627)(245,277)(186,843)
Net tenant insurance(65,455)(49,242)(258,909)(176,806)
Non same-store rental revenue(291,349)(279,520)(1,137,497)(560,874)
Non same-store operating expense110,594 94,085 399,517 203,109 
Total same-store net operating income$305,368 $316,508 $1,233,706 $1,252,777 
Same-store rental revenues415,885 417,462 1,665,755 1,661,704 
Same-store operating expenses110,517 100,954 432,049 408,927 
Same-store net operating income$305,368 $316,508 $1,233,706 $1,252,777 




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, 2025 - Unaudited
For the Year Ending December 31, 2025
Low EndHigh End
Net income attributable to common stockholders per diluted share$4.38 $4.68 
Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership0.27 0.27 
Net income attributable to common stockholders for diluted computations4.65 4.95 
Adjustments:
Real estate depreciation2.61 2.61 
Amortization of intangibles0.28 0.28 
Unconsolidated joint venture real estate depreciation and amortization0.16 0.16 
Funds from operations attributable to common stockholders7.70 8.00 
Adjustments:
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes0.21 0.21 
Amortization of other intangibles related to the Life Storage Merger, net of tax benefit0.09 0.09 
Core funds from operations attributable to common stockholders$8.00 $8.30 



Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2025 (In thousands) - Unaudited
For the Year Ending December 31, 2025
 Low  High
Net Income$1,039,500 $1,120,250 
Adjusted to exclude:
Equity in earnings of unconsolidated joint ventures(89,000)(90,000)
Interest expense575,000 570,000 
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes47,000 46,000 
Depreciation and amortization682,750 682,750 
Income tax expense39,000 38,000 
General and administrative 186,000 184,000 
Management fees and other income(125,000)(126,500)
Interest income(150,500)(152,000)
Net tenant reinsurance income(268,000)(271,000)
Non same-store rental revenues(179,000)(179,000)
Non same-store operating expenses114,000 114,000 
Total same-store net operating income1
$1,871,750 $1,936,500 
Same-store rental revenues1
2,645,000 2,698,500 
Same-store operating expenses1
773,250 762,000 
Total same-store net operating income1
$1,871,750 $1,936,500 

(1)Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2025 same-store pool of 1,829 stores.

v3.25.0.1
Cover
Feb. 25, 2025
Cover [Abstract]  
Document Type 8-K
Amendment Flag false
Document Period End Date Feb. 25, 2025
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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