Extra Space Storage(US:EXR)2023-02-27 16:00Revenue Growth - Total revenues for the year ended December 31, 2022, were $1,924,170, an increase of 22.0% from $1,577,362 in 2021[139] - Property rental revenue increased by $313,745 (23.4%) to $1,654,735, driven by high occupancy and increased rents at stabilized stores[139] - Same-store rental revenues grew by 17.4% to $1,443,327 in 2022 compared to $1,229,688 in 2021, attributed to higher average rates and other operating income[157] - Same-store net operating income increased by 20.3% to $1,104,132 in 2022 from $917,970 in 2021[157] - Net cash provided by operating activities increased to $1,238,139 in 2022 from $952,436 in 2021, reflecting continued revenue growth[162] - The company reported a net income of $921,156 in 2022, up from $877,758 in 2021[162] Expenses and Costs - Total expenses for the year ended December 31, 2022, were $888,017, an increase of 19.7% from $742,169 in 2021[142] - General and administrative expenses rose by $27,057 (26.5%) to $129,251, attributed to acquisitions and increased corporate payroll[142] - Property operations expenses increased by $66,734 (18.1%) to $435,342, driven by higher payroll and utility costs[142] - The total other expense, net, was $(114,997) in 2022, a decline of 370.2% from $42,565 in 2021, primarily due to reduced gains on real estate transactions[147] Debt and Interest - Total face value of debt increased to $7,364,424 in 2022 from $5,984,113 in 2021, reflecting a rise of 23.0%[148] - Interest expense rose by 31.9% to $(219,171) in 2022 compared to $(166,183) in 2021 due to higher overall debt and interest rates[148] - Interest income increased by 39.7% to $69,422 in 2022 from $49,703 in 2021, driven by higher bridge loan balances and interest rates[149] - The average interest rate on debt rose to 4.1% in 2022 from 2.6% in 2021, indicating increased borrowing costs[148] - As of December 31, 2022, total debt was $7,364,424, resulting in a debt to total enterprise value ratio of 25.8%, up from 15.6% in 2021[168] - The weighted average interest rate of total debt increased to 4.1% in 2022 from 2.6% in 2021[168] - Approximately $2,602,228 of total debt was subject to variable interest rates as of December 31, 2022, with a potential $26,022 annual impact on earnings from a 100 basis point change in benchmark rates[177] Store Operations and Growth - The company operated 2,338 stores as of December 31, 2022, compared to 2,096 stores in 2021, reflecting growth in tenant reinsurance revenues[140] - The company acquired 153 stores in 2022 and 74 stores in 2021, contributing to increased property rental and operational expenses[139][146] - The company added 37 stores to new and existing joint ventures in 2022, contributing to higher earnings from unconsolidated real estate ventures[150] Future Outlook and Strategy - The company plans to continue operating as a REIT, distributing at least 90% of taxable income to stockholders to maintain tax-exempt status[135] - The company expects to fund liquidity requirements through operating cash flow, cash on hand, and borrowings under revolving lines of credit[170] - Seasonal fluctuations in the self-storage business typically result in higher revenues and profits from May through September[174] - Cash and cash equivalents available as of December 31, 2022, were $92,868, with no loss of access reported during 2022 and 2021[167] - No material impairments were recorded for the year ended December 31, 2022[132] Real Estate Transactions - The company recognized a total gain of $14,249 from real estate transactions in 2022, a significant decrease of 89.9% from $140,760 in 2021[147]