SALT LAKE CITY, March 10, 2025 /PRNewswire/ -- Extra Space Storage Inc. ("Extra Space") (NYSE: EXR), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500, today announced that its operating partnership, Extra Space Storage LP (the "operating partnership"), has priced a public offering of $500 million aggregate principal amount of 5.400% senior notes due 2035 (the "Notes"). The Notes were priced at 99.830% of the principal amount and will mature on June 15, ...

Extra Space Storage, Inc. (EXR) has achieved a significant milestone by surpassing 4,000 stores nationwide. The company's continued expansion underscores its leadership in the self-storage sector and its ability to grow through strategic acquisitions, partnerships, and third-party management services.This self-storage operator in the United States now operates 4,011 stores across 42 states and Washington, D.C., reaching 98 of the 100 largest metropolitan markets in the country. This notable growth trajector ...

SALT LAKE CITY, March 5, 2025 /PRNewswire/ -- Extra Space Storage, Inc., (NYSE:EXR) the largest operator of self storage properties in the U.S., announced a significant milestone for the company as they celebrate reaching over 4,000 stores nationwide. Extra Space has more than doubled its store count since 2021.  "This achievement is a testament to the company's steady growth and resiliency of the self storage sector," said Joe Margolis, CEO. "Reaching 4,000 stores isn't just about the number – it's about t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (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, 2024 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 ...

Financial Data and Key Metrics Changes - Core FFO for Q4 2024 was $2.03 per share, with a full-year core FFO of $8.12 per share, indicating steady operational demand despite challenges [9][14] - Same-store revenue decreased by 0.4% in Q4, aligning with expectations, while same-store NOI fell by 3.5% due to higher property taxes [10][14] - The company experienced a year-over-year rate gap compression for new customers from negative 9% in Q3 to negative 6% at year-end [9][10] Business Line Data and Key Metrics Changes - The dual-brand test has concluded, with all stores now under the Extra Space brand, leading to increased rental activity and marketing savings [11] - The third-party management program grew by 114 net new stores in Q4, totaling 238 for the year, marking the best growth year ever excluding Life Storage merger gains [13] Market Data and Key Metrics Changes - The same-store pool now includes 1,829 properties, with guidance reflecting a 50 basis point benefit from this change [20] - The company anticipates a negative 0.75% to positive 1.25% revenue growth for the same-store pool in 2025, with expense growth projected at 3.75% to 5.25% [23] Company Strategy and Development Direction - The company aims to leverage diverse ancillary revenue streams and maintain prudent expense control to enhance investor returns [15] - There is a focus on improving core business fundamentals and capitalizing on high occupancy levels to drive future growth [15][24] Management's Comments on Operating Environment and Future Outlook - Management noted that while housing demand has declined, occupancy levels remain high, indicating steady demand in the market [40][52] - The company is cautious about pricing power recovery, with expectations for gradual improvement in new customer rates [22][40] Other Important Information - The company has initiated a $1 billion commercial paper program to reduce borrowing costs [19] - Property tax increases were significant in states like Illinois, Georgia, and Indiana, with expectations of continued pressure in 2025 [17][63] Q&A Session Summary Question: Can you elaborate on guidance and pricing power acceleration? - Management indicated that rates improved from negative 9% in Q3 to negative 6% at year-end, with expectations for moderate improvement moving forward [27][28] Question: What is the impact of LA wildfires on guidance? - The company models a 20 basis point decrease in same-store pool revenue due to state of emergency restrictions in LA County [30] Question: Why does LSI outperform EXR in 2025? - Management believes LSI stores will improve relative to their market positions, despite weaker demographics [37] Question: Can you discuss the dual-brand to single-brand strategy? - The transition has led to a $2 million reduction in paid search spending and a 5.5% increase in rentals for converted stores [45][46] Question: What is the outlook for bridge loans? - The bridge loan program is expected to grow, supporting acquisitions and management business, with a focus on capital allocation [50] Question: How are you addressing property tax increases? - The company anticipates a 6% to 8% increase in property taxes for 2025, with ongoing appeals to mitigate costs [63] Question: What is the strategy regarding pricing dynamics? - Management employs dynamic pricing algorithms to adjust rates based on market conditions, focusing on visibility and customer acquisition [125][126] Question: How does the company view the impact of incoming supply reduction? - While incoming supply reduction is a positive factor, demand remains steady compared to historical periods [152]

Core Insights - Extra Space Storage Inc. (EXR) reported fourth-quarter 2024 core funds from operations (FFO) per share of $2.03, slightly exceeding the Zacks Consensus Estimate by one cent, and reflecting a 0.5% increase year-over-year [1] - The company experienced a revenue increase of 3% year-over-year, totaling $821.9 million, although this figure fell short of the Zacks Consensus Estimate of $831.5 million [2] - For the full year 2024, core FFO per share was $8.12, up 0.2% from the previous year, surpassing the Zacks Consensus Estimate of $8.10, with total revenues growing 27.2% to $3.26 billion [3] Financial Performance - Same-store revenues decreased by 0.4% year-over-year to $415.9 million in Q4 2024, attributed to declines in net rental income and other income [4] - Same-store operating expenses rose by 9.5% year-over-year to $110.5 million, driven by increases in marketing, payroll, property operating expenses, repairs, maintenance, and property taxes [4] - Same-store net operating income (NOI) decreased by 3.5% year-over-year to $305.4 million [4] Occupancy and Portfolio Activity - Same-store square-foot occupancy increased by 120 basis points year-over-year to 93.7% as of December 31, 2024, surpassing the estimate of 93.2% [5] - During Q4, Extra Space Storage acquired 38 operating stores for approximately $359.7 million and increased its ownership stake in two existing joint ventures to 49% for $251.2 million [6] - The company added 130 stores (114 stores net) to its third-party management platform, managing a total of 2,035 stores as of December 31, 2024 [6] Balance Sheet and Shareholder Activity - As of December 31, 2024, Extra Space Storage had $138.2 million in cash and cash equivalents, an increase from $88.9 million as of September 30, 2024 [7] - The company maintained a fixed-rate debt percentage of 75.8% of total debt, with a combined weighted average interest rate of 4.4% and a weighted average maturity of approximately 4.4 years [7] - No shares were issued under the at-the-market program during the quarter, with $800 million available for issuance and an additional $500 million authorized for repurchase as of December 31, 2024 [8] 2025 Guidance - Extra Space Storage provided initial guidance for 2025, expecting core FFO per share between $8.00 and $8.30, which is below the Zacks Consensus Estimate of $8.34 [10] - The guidance is based on anticipated negative growth of 0.75% to 1.25% in same-store revenues and a projected increase of 3.75% to 5.25% in same-store expenses, with same-store NOI expected to decline between 3.00% to 0.25% [10]

Company Performance - Extra Space Storage (EXR) reported quarterly funds from operations (FFO) of $2.03 per share, exceeding the Zacks Consensus Estimate of $2.02 per share, and matching the FFO of $2.02 per share from the previous year [1] - The quarterly report indicates an FFO surprise of 0.50%, and the company has surpassed consensus FFO estimates in all four of the last quarters [2] - The company posted revenues of $821.9 million for the quarter ended December 2024, which was 1.16% below the Zacks Consensus Estimate, compared to revenues of $797.77 million a year ago [3] Stock Performance - Extra Space Storage shares have increased approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [4] - The current consensus FFO estimate for the upcoming quarter is $2.01 on revenues of $829.88 million, and for the current fiscal year, it is $8.34 on revenues of $3.37 billion [8] Industry Outlook - The REIT and Equity Trust - Other industry, to which Extra Space Storage belongs, is currently ranked in the bottom 46% of over 250 Zacks industries, indicating potential challenges ahead [9]

Financial Performance - Achieved net income attributable to common stockholders of $1.24 per diluted share, a 21.6% increase year-over-year[5] - Funds from operations (FFO) attributable to common stockholders was $1.96 per diluted share, with Core FFO at $2.03 per diluted share, a 0.5% increase year-over-year[5] - Total revenues for Q4 2024 reached $821,896,000, a 3.8% increase from $797,774,000 in Q4 2023[40] - Net income attributable to common stockholders for Q4 2024 was $262,487,000, up 21.5% from $216,134,000 in Q4 2023[40] - Same-store net operating income for the year ended December 31, 2024, was $1,233,706,000, a slight decrease from $1,252,777,000 in 2023[41] - The company reported total same-store rental revenues of $1,665,755,000 for the year ended December 31, 2024, compared to $1,661,704,000 in 2023[41] - For the year ending December 31, 2025, the estimated net income attributable to common stockholders per diluted share is projected to be between $4.38 and $4.68[42] - The estimated total same-store net operating income for the year ending December 31, 2025, is projected to be between $1,871,750,000 and $1,936,500,000[43] Operational Metrics - Same-store revenue decreased by 0.4% and same-store net operating income (NOI) decreased by 3.5% compared to the prior year[5] - Reported ending same-store occupancy of 93.7% as of December 31, 2024, up from 92.5% a year earlier[5] - Same-store net rental income for Q4 2024 was $400,263, a decrease of 0.2% from $400,954 in Q4 2023; for the year, it increased by 0.3% to $1,601,455 from $1,596,015[1] - Total same-store revenues for Q4 2024 were $415,885, down 0.4% from $417,462 in Q4 2023; for the year, revenues increased by 0.2% to $1,665,755 from $1,661,704[1] - Same-store operating expenses increased by 9.5% in Q4 2024 to $110,517 from $100,954 in Q4 2023; for the year, expenses rose by 5.7% to $432,049 from $408,927[1] - Same-store net operating income for Q4 2024 was $305,368, a decrease of 3.5% from $316,508 in Q4 2023; for the year, it decreased by 1.5% to $1,233,706 from $1,252,777[1] Investments and Acquisitions - Acquired 38 operating stores for approximately $359.7 million during the quarter[5] - Increased ownership interest in two existing joint venture partnerships to 49.0% for $251.2 million[5] - Originated $224.4 million in mortgage and mezzanine bridge loans and sold $9.2 million in mortgage bridge loans[5] - Added 130 stores to the third-party management platform, bringing the total to 2,035 managed stores[5] - The company sold five properties during Q4 2024, resulting in a net gain of $37.7 million; subsequent to quarter-end, 11 additional properties were sold[18] Debt and Equity - Initiated an unsecured commercial paper program with a total capacity of $1.0 billion, of which $500.0 million was outstanding[5] - As of December 31, 2024, the company had $800.0 million available for issuance under its ATM program and $500.0 million authorized for stock repurchases[21][22] - Unsecured senior notes increased to $7.76 billion in 2024 from $6.41 billion in 2023, representing a growth of approximately 21.2%[39] - The Company’s total liabilities rose to $13.99 billion in 2024 from $12.04 billion in 2023, reflecting an increase of approximately 16.2%[39] - The Company’s total stockholders' equity decreased to $13.95 billion in 2024 from $14.39 billion in 2023, indicating a decline of approximately 3.1%[39] Cash and Assets - Total assets increased to $28.85 billion as of December 31, 2024, compared to $27.46 billion as of December 31, 2023, reflecting a growth of approximately 5.0%[39] - The Company's real estate assets, net, rose to $24.59 billion in 2024 from $24.56 billion in 2023, indicating a slight increase of 0.1%[39] - The Company reported a cash and cash equivalents balance of $138.22 million as of December 31, 2024, up from $99.06 million in 2023, marking a growth of approximately 39.5%[39] - The Company’s accumulated deficit increased to $(899.34) million in 2024 from $(379.02) million in 2023, indicating a significant increase in losses[39] Other Financial Metrics - The company incurred $196,202,000 in depreciation and amortization expenses for Q4 2024, consistent with $196,139,000 in Q4 2023[40] - Interest expense for the year ended December 31, 2024, was $551,354,000, compared to $419,035,000 in 2023, reflecting an increase of 31.6%[40] - The company reported a gain on real estate assets held for sale of $37,714,000 in Q4 2024, compared to no gain in Q4 2023[40] - The weighted average number of diluted shares for Q4 2024 was 211,737,843, compared to 219,961,282 in Q4 2023[40]

Core Insights - Extra Space Storage Inc. reported strong operating results for the year ended December 31, 2024, despite a challenging macro environment [4][6] - The company achieved a net income attributable to common stockholders of $1.24 per diluted share, a 21.6% increase year-over-year [6] - Core FFO per share was $2.03, reflecting a 0.5% increase compared to the previous year [6] Financial Performance - For the three months ended December 31, 2024, the company reported net income of $262.5 million, compared to $216.1 million in the same period of 2023 [5] - The company’s FFO for the year was $7.57 per diluted share, with Core FFO at $8.12 per diluted share, a 0.2% increase from the prior year [6] - Same-store revenue decreased by 0.4% while same-store net operating income (NOI) decreased by 3.5% year-over-year [6][9] Operational Highlights - The company maintained a same-store occupancy rate of 93.7% as of December 31, 2024, up from 92.5% a year earlier [6][9] - Extra Space Storage acquired 38 operating stores for approximately $359.7 million and increased ownership interest in two joint ventures to 49.0% for $251.2 million [6][12] - The company added 130 stores to its third-party management platform, managing a total of 2,035 stores as of December 31, 2024 [6][18] Investment Activities - The company originated $224.4 million in mortgage and mezzanine bridge loans during the quarter, with outstanding bridge loans totaling approximately $1.2 billion at year-end [17] - Extra Space Storage initiated an unsecured commercial paper program with a total capacity of $1.0 billion, having $500 million in outstanding issuances [21] - The company invested $100 million in convertible preferred stock of Strategic Storage Growth Trust III, Inc., with an 8.85% annual dividend rate [15] Balance Sheet and Debt Management - As of December 31, 2024, the company had total assets of approximately $28.8 billion, up from $27.5 billion a year earlier [38] - The percentage of fixed-rate debt to total debt was 75.8%, with a combined weighted average interest rate of 4.4% [22] - The company did not issue shares under its ATM program during the quarter and had $800 million available for issuance [19]

Company Overview - Extra Space Storage Inc. is a fully integrated, self-administered and self-managed real estate investment trust, and a member of the S&P 500 [2] - As of December 31, 2024, the Company owned and/or operated 4,011 self-storage properties, comprising approximately 2.8 million units and about 308.4 million square feet of rentable storage space [2] - The Company is the largest operator of self-storage properties in the United States, offering a wide selection of conveniently located and secure storage units, including boat storage, RV storage, and business storage [2] Dividend Announcement - The Company's board of directors declared a first quarter 2025 dividend of $1.62 per share on the common stock [1] - The dividend is payable on March 31, 2025, to stockholders of record at the close of business on March 14, 2025 [1]