PART I. FINANCIAL INFORMATION [Financial Statements (unaudited)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for the period ended September 30, 2023, offering a snapshot of the company's financial position and performance Condensed Consolidated Balance Sheets (in thousands) | | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total assets** | **$27.63 billion** | **$12.17 billion** | | Real estate assets, net | $24.56 billion | $9.998 billion | | Cash and cash equivalents | $216.1 million | $92.87 million | | **Total liabilities** | **$12.06 billion** | **$8.09 billion** | | Unsecured senior notes, net | $5.81 billion | $2.76 billion | | Unsecured term loans, net | $3.25 billion | $2.34 billion | | **Total Extra Space Storage Inc. stockholders' equity** | **$14.54 billion** | **$3.26 billion** | | **Total liabilities, noncontrolling interests and equity** | **$27.63 billion** | **$12.17 billion** | Condensed Consolidated Statements of Operations (in thousands, except per share data) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total revenues** | **$748.0 million** | **$498.9 million** | **$1.76 billion** | **$1.42 billion** | | Property rental | $650.9 million | $428.8 million | $1.53 billion | $1.22 billion | | **Total expenses** | **$448.2 million** | **$229.0 million** | **$925.8 million** | **$650.9 million** | | Life Storage Merger transition costs | $54.2 million | $— | $54.2 million | $— | | **Net income** | **$198.9 million** | **$236.1 million** | **$623.0 million** | **$701.7 million** | | **Net income attributable to common stockholders** | **$188.4 million** | **$220.7 million** | **$587.1 million** | **$656.4 million** | | **Diluted EPS** | **$0.96** | **$1.65** | **$3.78** | **$4.89** | Condensed Consolidated Statements of Cash Flows (in thousands) | | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$1.04 billion** | **$948.0 million** | | **Net cash used in investing activities** | **($1.64 billion)** | **($1.24 billion)** | | Life Storage Merger, net of cash acquired | ($1.18 billion) | $— | | Acquisition of real estate assets and improvements | ($197.3 million) | ($1.12 billion) | | **Net cash provided by financing activities** | **$723.5 million** | **$312.4 million** | | Proceeds from notes payable and revolving lines of credit | $5.19 billion | $3.98 billion | | Principal payments on notes payable and revolving lines of credit | ($4.62 billion) | ($3.34 billion) | | Dividends paid on common stock | ($704.1 million) | ($604.4 million) | | **Net increase in cash, cash equivalents, and restricted cash** | **$125.4 million** | **$18.2 million** | [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section details accounting policies and methodologies, covering the Life Storage Merger, fair value measurements, debt, and segment reporting [Organization](index=13&type=section&id=1.%20ORGANIZATION) Extra Space Storage Inc. operates as a self-managed REIT, owning and managing **3,651** self-storage properties across **42** states and Washington D.C. - The company is structured as an UPREIT, holding its properties through its operating partnership, Extra Space Storage LP[32](index=32&type=chunk) - As of September 30, 2023, the company had equity interests in **2,369** stores and managed an additional **1,282** stores for third parties[33](index=33&type=chunk) [Acquisitions and Dispositions](index=16&type=section&id=4.%20ACQUISITIONS%20AND%20DISPOSITIONS) The company's portfolio significantly expanded through the **$11.6 billion** Life Storage Merger on July 20, 2023, and other acquisitions - On July 20, 2023, the company closed its merger with Life Storage, with Life Storage stockholders receiving 0.895 shares of EXR common stock for each share owned[52](index=52&type=chunk) Life Storage Merger Consideration (in thousands) | Consideration Type | July 20, 2023 | | :--- | :--- | | Common stock | $11.35 billion | | OP units | $249.5 million | | Cash for payoff of Life Storage credit facility and debt | $1.19 billion | | Transaction Costs | $55.3 million | | **Total consideration** | **$12.85 billion** | Fair Value of Net Assets Acquired from Life Storage (in thousands) | | July 20, 2023 | | :--- | :--- | | Real estate assets | $14.59 billion | | Equity investment in joint venture partnerships | $325.3 million | | Unsecured senior notes | ($2.11 billion) | | Accounts payable, accrued expenses and other liabilities | ($191.1 million) | | **Fair value of net assets acquired** | **$12.85 billion** | [Debt](index=25&type=section&id=10.%20DEBT) Total term debt increased to **$10.3 billion** as of September 30, 2023, primarily due to the Life Storage Merger, with a combined weighted average interest rate of **4.4%** Components of Term Debt (in thousands) | Term Debt | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Secured fixed-rate | $402.9 million | $521.8 million | | Secured variable-rate | $880.4 million | $772.6 million | | Unsecured fixed-rate | $7.54 billion | $4.24 billion | | Unsecured variable-rate | $1.85 billion | $884.6 million | | **Total** | **$10.33 billion** | **$6.39 billion** | - The percentage of fixed-rate debt to total debt was **70.3%** as of September 30, 2023. The weighted average interest rates for fixed and variable-rate debt were **3.6%** and **6.4%**, respectively, with a combined weighted average rate of **4.4%**[95](index=95&type=chunk) [Segment Information](index=31&type=section&id=15.%20SEGMENT%20INFORMATION) The company operates two segments, Self-Storage Operations and Tenant Reinsurance, generating **$465.7 million** and **$50.0 million** in Q3 2023 NOI, respectively Segment Performance for Three Months Ended Sep 30 (in thousands) | | 2023 | 2022 | | :--- | :--- | :--- | | **Self-Storage Operations** | | | | Revenues | $650.9 million | $428.8 million | | Net Operating Income | $465.7 million | $314.2 million | | **Tenant Reinsurance** | | | | Revenues | $69.1 million | $47.9 million | | Net Operating Income | $50.0 million | $37.1 million | | **Total Segment NOI** | **$515.7 million** | **$351.3 million** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=ITEM%202.%20MANAGEMENT'S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes the company's financial performance, focusing on the Life Storage Merger's impact, same-store results, liquidity, and capital resources [Overview](index=34&type=section&id=Overview) The company, a self-managed REIT, significantly expanded its self-storage portfolio to over **3,500** locations and **264.0 million** net rentable square feet through the July 20, 2023 Life Storage merger - On July 20, 2023, the company merged with Life Storage, Inc. in a transaction valued at **$11.6 billion**, expanding its portfolio to over **3,500** locations and **264.0 million** net rentable square feet[146](index=146&type=chunk) [Properties](index=35&type=section&id=Properties) As of September 30, 2023, the company's portfolio included **3,651** owned and managed stores across **42** states and Washington D.C. - The portfolio includes **1,896** wholly-owned stores, **471** in unconsolidated joint ventures, and **1,282** managed for third parties[147](index=147&type=chunk) - The average annual rent per square foot for existing customers at stabilized stores was **$21.43** for Q3 2023, up from **$20.96** in Q3 2022. For new leases, the average rent was **$16.01**, down from **$18.40** in the prior-year period[150](index=150&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Q3 2023 saw total revenues increase **49.9%** to **$748.0 million**, while total expenses rose **95.7%** to **$448.2 million**, largely due to the Life Storage Merger Revenue Comparison (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Property rental | $650.9 million | $428.8 million | **51.8%** | | Tenant reinsurance | $69.1 million | $47.9 million | **44.4%** | | **Total revenues** | **$748.0 million** | **$498.9 million** | **49.9%** | Expense Comparison (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Property operations | $185.2 million | $114.6 million | **61.6%** | | Life Storage Merger transition costs | $54.2 million | $— | **100.0%** | | Depreciation and amortization | $152.3 million | $71.4 million | **113.3%** | | **Total expenses** | **$448.2 million** | **$229.0 million** | **95.7%** | - Interest expense increased significantly due to higher debt balances to fund acquisitions and a rise in the weighted average interest rate to **4.4%** at September 30, 2023, from **3.6%** a year prior[166](index=166&type=chunk) [Funds from Operations (FFO)](index=40&type=section&id=Funds%20from%20Operations) Funds from Operations (FFO) for Q3 2023 increased to **$348.5 million**, reflecting a key performance metric for REITs after adjustments FFO Calculation (in thousands) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common stockholders | $188.4 million | $220.7 million | $587.1 million | $656.4 million | | Adjustments (Depreciation, Amortization, etc.) | $160.1 million | $88.0 million | $346.5 million | $242.3 million | | **FFO attributable to common stockholders and unit holders** | **$348.5 million** | **$308.7 million** | **$933.6 million** | **$898.7 million** | [Same-Store Results](index=41&type=section&id=Same-Store%20Results) Same-store net operating income for Q3 2023 increased by **0.7%**, driven by revenue growth offset by higher operating expenses and a slight occupancy decline Same-Store Operating Data (914 properties) | | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | % Change | | :--- | :--- | :--- | :--- | | Total same-store rental revenues | $397.9 million | $390.6 million | **1.9%** | | Total same-store operating expenses | $98.3 million | $93.0 million | **5.7%** | | **Same-store net operating income** | **$299.6 million** | **$297.6 million** | **0.7%** | | Same-store square foot occupancy as of quarter end | **94.1%** | **95.1%** | **(1.0)%** | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$216.1 million** in cash and an upgraded **BBB+/Stable** credit rating from S&P as of September 30, 2023 - The company holds a **BBB+/Stable** rating from S&P (upgraded in July 2023) and a **Baa2** rating from Moody's[184](index=184&type=chunk) - As of September 30, 2023, the company had **1,664** unencumbered stores with a calculated unencumbered asset value of approximately **$32.0 billion**[184](index=184&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=43&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate fluctuations, with a **100 basis point** SOFR change impacting annual earnings by **$33.5 million** - A hypothetical **100 basis point** increase or decrease in SOFR would change annual interest expense by approximately **$33.5 million**[190](index=190&type=chunk) [Controls and Procedures](index=44&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of September 30, 2023, with no material changes to internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[194](index=194&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[195](index=195&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=45&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings arising in the ordinary course of business, with uncertain outcomes - The company is subject to various claims and complaints arising in the ordinary course of business, the outcomes of which cannot be determined with certainty[197](index=197&type=chunk) [Risk Factors](index=45&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes have occurred to the risk factors previously disclosed in the 2022 Form 10-K and subsequent 2023 Form 10-Qs - No material changes have been made to the risk factors disclosed in the 2022 Form 10-K and previous 2023 Form 10-Qs[198](index=198&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) There were no unregistered sales of equity securities or use of proceeds to report for the period - None[199](index=199&type=chunk) [Other Information](index=45&type=section&id=ITEM%205.%20OTHER%20INFORMATION) No officers or directors adopted, modified, or terminated Rule 10b5-1 trading plans during Q3 2023 - No officers or directors adopted, modified, or terminated any Rule 10b5-1 trading plans during the three months ended September 30, 2023[202](index=202&type=chunk) [Exhibits](index=46&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, officer certifications, and XBRL data files - Exhibits filed include supplemental indentures, CEO/CFO certifications (Sections 302 and 906), and XBRL interactive data files[203](index=203&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-32269 EXTRA SPACE STORAGE INC. (Exact name of registrant as specified in its charter) Maryland 20-1076777 (State or other juri ...

Extra Space Storage Inc. (NYSE:EXR) Q2 2023 Earnings Conference Call August 4, 2023 1:00 PM ET Company Participants Jeff Norman - IR Joe Margolis - CEO Scott Stubbs - CFO Conference Call Participants Michael Goldsmith - UBS Jeff Spector of Bank - America Steve Sakwa - Evercore ISI Juan Sanabria - BMO Capital Markets Todd Thomas - KeyBanc Capital Markets Smedes Rose - Citi Keegan Carl - Wolfe Research Ronald Kamdem - Morgan Stanley Ki Bin Kim - Truist Spenser Allaway - Green Street Jonathan Hughes - Raymond ...

Financial Data and Key Metrics Changes - The company reported same-store revenue growth of 7.4% in Q1 2023, with same-store NOI growth at 8.7%, slightly ahead of internal projections [4][28] - Property net operating income was modestly ahead of expectations, contributing to a beat in internal FFO projections by $0.04 [13][28] - The company completed a $500 million bond offering with a coupon of 5.7%, reducing revolver balances to less than $100 million and leaving over $1 billion in revolving capacity [13] Business Line Data and Key Metrics Changes - The company added 44 stores to its third-party management platform and acquired six stores primarily through joint ventures [9] - The company originated $53 million in bridge loans, although bridge loan volumes were slower than expected in Q1 [9][64] Market Data and Key Metrics Changes - Occupancy at the end of April increased to 93.8%, showing strong rental activity moving into the leasing season [33] - Year-over-year rates improved from negative 14% in January to negative 3% in March, but dropped to negative 7% in April, contributing to higher rental volumes [28][78] Company Strategy and Development Direction - The company is focused on external growth, including a strategic merger with Life Storage, expected to generate at least $100 million in annual run-rate synergies [9][26] - The merger is anticipated to enhance the company's scale and operational efficiencies, with a focus on leveraging data for improved property performance [10][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the storage asset class, expecting healthy, albeit moderating, year-over-year growth [31] - The company acknowledged headwinds from investments in non-stabilized properties and higher interest rates but believes these will lead to stronger long-term growth rates [15] Other Important Information - The company reported lower than expected same-store expenses due to normalizing payroll growth and savings from repairs and maintenance [4] - Management noted that property taxes were a benefit in the quarter due to successful appeals from prior periods [42][90] Q&A Session Summary Question: What is the current occupancy rate and rental demand? - Occupancy at the end of April was 93.8%, with good rental activity observed during the month [33] Question: What are the expected occupancy peaks during the rental season? - Guidance assumes a slight negative delta in occupancy compared to last year, with expectations of occupancy peaking in June and July [34] Question: Can you elaborate on the bridge lending program and its recent performance? - The bridge lending program experienced slower volumes due to seasonality and some deals falling through, but the company expects to pick up in the second half of the year [64][69] Question: How is the company managing expense pressures? - Payroll expenses were at 3.9% growth in Q1, expected to moderate throughout the year, while property and casualty insurance costs are anticipated to see a significant increase [59][61] Question: What are the long-term customer retention rates? - Customers with over two years of tenure are now at approximately 47%, while those between 12 to 18 months have decreased slightly [92]

PART I. FINANCIAL INFORMATION This section provides the unaudited financial statements, management's discussion and analysis, market risk disclosures, and internal controls information [ITEM 1. FINANCIAL STATEMENTS (unaudited)](index=6&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20(unaudited)) This section presents the unaudited condensed consolidated financial statements for Extra Space Storage Inc. as of March 31, 2023, and for the three months then ended, including Balance Sheets, Statements of Operations, Statements of Comprehensive Income, Statement of Noncontrolling Interests and Equity, and Statements of Cash Flows, along with detailed notes explaining the basis of presentation and significant accounting policies [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's financial position, including assets, liabilities, and equity, as of March 31, 2023, and December 31, 2022 Condensed Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$12,132,669** | **$12,167,458** | | Real estate assets, net | $9,991,446 | $9,997,978 | | Cash and cash equivalents | $47,951 | $92,868 | | **Total Liabilities** | **$8,099,968** | **$8,089,184** | | Unsecured term loans, net | $2,672,668 | $2,340,116 | | Unsecured senior notes, net | $3,258,329 | $2,757,791 | | Revolving lines of credit | $94,500 | $945,000 | | **Total Equity** | **$4,032,701** | **$4,078,274** | - Total assets slightly decreased from **$12.17 billion** at year-end 2022 to **$12.13 billion** at the end of Q1 2023, while total liabilities remained relatively stable at approximately **$8.1 billion**[15](index=15&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance, including revenues, expenses, and net income, for the three months ended March 31, 2023 and 2022 Condensed Consolidated Statement of Operations Summary (in thousands) | Account | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | **Total Revenues** | **$503,050** | **$443,562** | | Property rental | $433,962 | $379,808 | | **Total Expenses** | **$239,508** | **$208,252** | | Interest expense | $80,099 | $42,538 | | **Net Income** | **$208,878** | **$217,717** | | **Net Income Attributable to Common Stockholders** | **$196,304** | **$203,579** | Earnings Per Share (EPS) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Basic EPS | $1.46 | $1.52 | | Diluted EPS | $1.46 | $1.51 | - Total revenues increased by **13.4%** YoY, driven by a **14.3%** rise in property rental income, but net income attributable to common stockholders decreased by **3.6%** YoY, largely due to a significant **88.3%** increase in interest expense[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section details the company's cash flows from operating, investing, and financing activities for the three months ended March 31, 2023 and 2022 Condensed Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Category | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $281,649 | $287,465 | | Net cash used in investing activities | ($86,339) | ($121,372) | | Net cash used in financing activities | ($242,603) | ($169,621) | | **Net decrease in cash** | **($47,293)** | **($3,528)** | - Cash from operations remained strong but slightly decreased compared to the prior year, while investing activities used less cash, primarily due to lower acquisition spending (**$47.3 million** in Q1 2023 vs. **$195.8 million** in Q1 2022), and financing activities used more cash, driven by higher net debt repayments and increased dividend payments[24](index=24&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=NOTES%20TO%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and additional information supporting the condensed consolidated financial statements - As of March 31, 2023, the company owned and/or managed a total of **2,388** self-storage stores across **41** states and Washington, D.C., including **1,457** stores with direct or indirect equity interests and **931** stores managed for third parties[29](index=29&type=chunk) - In March 2023, the Operating Partnership issued **$500.0 million** of **5.700%** Senior Notes due in 2028[76](index=76&type=chunk) - On April 3, 2023, the company entered into a definitive merger agreement with Life Storage, Inc. in an all-stock transaction valued at approximately **$12.7 billion**, expected to close in the second half of 2023[133](index=133&type=chunk) - On May 1, 2023, the company invested **$150.0 million** in convertible preferred stock of Strategic Storage Trust VI, Inc., an affiliate of SmartStop Self Storage REIT, Inc., with a dividend rate of **8.35%** per annum[134](index=134&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=31&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management discusses the company's financial performance for Q1 2023, highlighting revenue growth driven by higher rental rates and acquisitions, covering property portfolio details, operational results, same-store performance, FFO, cash flows, and liquidity, with a key subsequent event being the announced merger with Life Storage, Inc. expected to close in the second half of 2023 [Properties](index=32&type=section&id=Properties) This section provides an overview of the company's self-storage property portfolio and key customer performance metrics - As of March 31, 2023, the company owned or had interests in **1,457** operating stores and managed an additional **931** stores for third parties, totaling **2,388** stores across **41** states and Washington, D.C.[144](index=144&type=chunk) Key Customer Metrics (Stabilized Stores) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Avg. Annual Rent per sq. ft. (Existing Customers) | $21.05 | $19.47 | | Avg. Annual Rent per sq. ft. (New Leases) | $17.00 | $19.23 | | Avg. Length of Stay | 16.6 months | Not specified | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) This section analyzes the company's revenue and expense trends, highlighting key drivers of financial performance Revenue Comparison (in thousands) | Revenue Source | Q1 2023 | Q1 2022 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Property rental | $433,962 | $379,808 | $54,154 | 14.3% | | Tenant reinsurance | $47,704 | $43,797 | $3,907 | 8.9% | | Management fees and other | $21,384 | $19,957 | $1,427 | 7.2% | | **Total revenues** | **$503,050** | **$443,562** | **$59,488** | **13.4%** | - The **14.3%** increase in property rental revenue was driven by a **$26.7 million** increase from stabilized stores (due to higher rates) and a **$21.1 million** increase from acquisitions completed in 2022 and 2023[151](index=151&type=chunk) - Interest expense increased by **88.3%** YoY, primarily due to a higher weighted average interest rate and a larger debt balance compared to the same period in the prior year[159](index=159&type=chunk) [Funds From Operations (FFO)](index=36&type=section&id=Funds%20From%20Operations%20(FFO)) This section details the calculation and analysis of Funds From Operations (FFO), a key performance metric for REITs FFO Calculation (in thousands) | Metric | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $196,304 | $203,579 | | Adjustments (Depreciation, Amortization, etc.) | $92,772 | $82,877 | | **FFO attributable to common stockholders and unit holders** | **$289,076** | **$286,456** | - FFO attributable to common stockholders and unit holders increased slightly to **$289.1 million** in Q1 2023 from **$286.5 million** in Q1 2022, representing modest year-over-year growth[165](index=165&type=chunk) [Same-Store Results](index=36&type=section&id=Same-Store%20Results) This section analyzes the operating performance of the company's same-store portfolio, focusing on revenue, expenses, and net operating income Same-Store Operating Performance (914 stores) | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Total same-store rental revenues | $384,092 | $357,623 | 7.4% | | Total same-store operating expenses | $93,241 | $90,116 | 3.5% | | **Same-store net operating income (NOI)** | **$290,851** | **$267,507** | **8.7%** | | Same-store square foot occupancy (quarter end) | 93.5% | 94.3% | -0.8% | - Same-store revenue growth of **7.4%** was driven by higher average rates for existing customers, which offset a slight decline in occupancy, while operating expenses grew at a slower pace of **3.5%**, leading to strong NOI growth of **8.7%**[167](index=167&type=chunk)[168](index=168&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) This section assesses the company's financial flexibility, including cash position, debt structure, and credit ratings - As of March 31, 2023, the company had **$48.0 million** in cash and cash equivalents[174](index=174&type=chunk) - Total debt was **$7.37 billion**, with a debt-to-total enterprise value ratio of **23.9%**, and the company maintained a fixed-rate debt percentage of **70.7%** (including swaps), with a combined weighted average interest rate of **4.3%**[175](index=175&type=chunk) - The company holds investment-grade credit ratings of **BBB/Stable** from S&P and **Baa2** from Moody's[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risk is interest rate risk, with approximately **$2.2 billion** of its **$7.4 billion** total debt subject to variable interest rates as of March 31, 2023, where a hypothetical **100 basis point (1%)** change in interest rates would impact annual earnings and cash flows by approximately **$21.6 million** - As of March 31, 2023, the company had approximately **$7.4 billion** in total debt, with **$2.2 billion** subject to variable interest rates (excluding debt with swaps)[183](index=183&type=chunk) - A **100 basis point (1.0%)** change in the variable interest rate (LIBOR or SOFR) would result in an approximate **$21.6 million** annual change in interest expense, affecting future earnings and cash flows[183](index=183&type=chunk) [Controls and Procedures](index=41&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2023, with no material changes to the internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the CEO and CFO concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level[187](index=187&type=chunk) - No changes occurred during the most recent quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[188](index=188&type=chunk) PART II. OTHER INFORMATION This section includes disclosures on legal proceedings, updated risk factors, and information regarding unregistered sales of equity securities [Legal Proceedings](index=42&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company is involved in various legal proceedings and claims arising in the ordinary course of business, with management establishing accrued liabilities for loss contingencies that are both probable and reasonably estimable, but noting that future outcomes could potentially have a material adverse effect on results - The company is involved in various legal proceedings and claims arising from the ordinary course of business, where outcomes are inherently unpredictable, but liabilities are accrued when losses are probable and estimable[190](index=190&type=chunk) [Risk Factors](index=42&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section updates risk factors, focusing primarily on risks related to the pending merger with Life Storage, Inc., including the fixed exchange ratio, reduced ownership and influence for existing stockholders post-merger, conditions to closing that may not be satisfied, potential termination fees, and challenges related to integrating the two companies' operations successfully - The primary new risk factors relate to the pending merger with Life Storage, Inc.[191](index=191&type=chunk)[192](index=192&type=chunk) - The merger's exchange ratio is fixed at **0.895** of an Extra Space share for each Life Storage share and will not be adjusted for market price fluctuations, creating value uncertainty for shareholders[192](index=192&type=chunk) - Upon completion, existing Extra Space stockholders will own approximately **65%** of the combined company, resulting in reduced ownership and voting influence[197](index=197&type=chunk) - If the merger agreement is terminated under certain circumstances, the company may be required to pay Life Storage a termination fee of **$761 million** and/or reimburse up to **$20 million** in expenses[200](index=200&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) There were no unregistered sales of equity securities during the reporting period - None[208](index=208&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K WASHINGTON, D.C. 20549 (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-32269 EXTRA SPACE STORAGE INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Life Storage, Inc. (LSI) Q4 2022 Earnings Conference Call February 24, 2023 8:00 AM ET Company Participants Brent Maedl - Manager of Investor Relations Joseph Saffire - Chief Executive Officer Alex Gress - Chief Financial Officer Conference Call Participants Juan Sanabria - BMO Todd Thomas - KeyBanc Smedes Rose - Citi Mike Mueller - JPMorgan Michael Goldsmith - UBS Jon Petersen - Jefferies Operator Greetings. Welcome to the Life Storage Fourth Quarter Earnings Release Conference Call. [Operator Instructions ...

November 2022 Investor Presentation (■) Life Storage Forward Looking Statements 2 This presentation may contain forward looking statements as defined in Section 27A of the Securities Act of 1933, and in Section 21E of the Securities Exchange Act of 1934. Forward looking statements address matters that are subject to a number of risks and uncertainties. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained herein. ...

Life Storage, Inc. (LSI) Q3 2022 Results Conference Call November 3, 2022 9:00 AM ET Company Participants Alex Gress - Vice President Joseph Saffire - Chief Executive Officer Andrew Gregoire - Chief Financial Officer Conference Call Participants Michael Goldsmith - UBS Lucy Doikin - Bank of America Hong Liang Zhang - JP Morgan Spenser Allaway - Green Street Advisors Juan Sanabria - BMO Capital Markets Flora Tong - Evercore Ki Bin Kim - Truist Securities Operator Good day, ladies and gentlemen, and welcome t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-32269 EXTRA SPACE STORAGE INC. (Exact name of registrant as specified in its charter) Maryland 20-1076777 (State or other ...