Slide 1: Supplemental Financial Information, Three and Six Months Ended June 30, 2023
SUPPLEMENTAL FINANCIAL INFORMATION FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023
Slide 2: Forward-Looking Statements
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, favorable market conditions, ou
Slide 3: Forward-Looking Statements (continued)
• impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self- storage space and ancillary products, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results; and • economic uncertainty due to the
Slide 4: Table of Contents
Table of Contents Page(s) Title 1-15 Press Release - Extra Space Storage Inc. Reports 2023 Second Quarter Results 16 Key Highlights 17 Trailing Five Quarter Information 18 Summary Debt Maturity Schedule By Year for Consolidated Fixed- and Variable-Rate Debt 19 Detailed Debt Maturity Schedule and Ent
Slide 5: Extra Space Storage Reports 2023 Second Quarter Results
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 2023 Second Quarter Results SALT LAKE CITY, August 3, 2023 — Extra Space Storage Inc. (NYSE: EXR) (the “Company”)
Slide 6: Second Quarter Highlights and CEO Commentary
• Increased same-store revenue by 5.0% and same-store NOI by 5.5% compared to the same period in the prior year. • Acquired one operating store and three C of O stores for a total cost of approximately $45.9 million. • In conjunction with joint venture partners, acquired five operating stores for a
Slide 7: FFO Per Share
FFO Per Share: The following table (unaudited) outlines the Company’s FFO and Core FFO for the three and six months ended June 30, 2023 and 2022. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (
Slide 8: Operating Results and Same-Store Performance
Operating Results and Same-Store Performance: The following table (unaudited) outlines the Company’s same-store performance for the three and six months ended June 30, 2023 and 2022 (amounts shown in thousands, except store count data)1: For the Three Months For the Six Months Ended June 30, Percent
Slide 9: Investment and Property Management Activity: Life Storage Merger
Investment and Property Management Activity: Life Storage Merger: On July 20, 2023, the Company closed its merger with Life Storage, Inc. (“Life Storage” or “LSI”) in an all-stock transaction (the “Life Storage Merger”). Under the terms of the Life Storage Merger, Life Storage stockholders received
Slide 10: Preferred Stock Investment and Bridge Loans
Preferred Stock Investment: As previously announced, during the three months ended June 30, 2023, the Company invested $150.0 million in shares of newly issued convertible preferred stock of Strategic Storage Trust VI, Inc., an affiliate of SmartStop Self Storage REIT, Inc. The dividend rate for the
Slide 11: Outlook
Outlook: Due to the proximity of the July 20, 2023 Life Storage merger closing to this earnings release, the following table outlines the Company's initial and revised Core FFO estimates and annual assumptions for the year ending December 31, 20231, excluding any impact from the Life Storage Merger.
Slide 12: Life Storage Merger Assumptions and Information
In addition to the Company's estimates and assumptions excluding the Life Storage Merger, the Company presents the net anticipated dilution to Core FFO from the merger in the year ending December 31, 2023, and other information related to the merger. Full estimates and assumptions for the combined c
Slide 13: Forward-Looking Statements Risk Factors (continued)
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 mos
Slide 14: FFO and Core FFO Definitions
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,
Slide 15: Condensed Consolidated Balance Sheets
Extra Space Storage Inc. Condensed Consolidated Balance Sheets (In thousands, except share data) June 30, 2023 December 31, 2022 (Unaudited) Assets: Real estate assets, net $ 10,017,351 $ 9,997,978 Real estate assets - operating lease right-of-use assets 220,090 221,725 Investments in unconsolidated
Slide 16: Consolidated Statement of Operations
Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2023 and 2022 (In thousands, except share and per share data) - Unaudited For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenues: Property rental $ 440,747 $ 408,044 $ 874,709
Slide 17: Reconciliation of GAAP Net Income to Same-Store NOI
Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Six Months Ended June 30, 2023 and 2022 (In thousands) - Unaudited For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net Income $ 215,312 $ 247,834 $ 424,190 $ 465,5
Slide 18: Reconciliation of Estimated GAAP EPS to Estimated FFO Per Share
Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share (excluding impact of Life Storage Merger) — for the Year Ending December 31, 2023 - Unaudited For the Year Ending December 31, 2023 Low End High End Net income attributable to comm
Slide 19: Reconciliation of Estimated Net Income to Estimated Same-Store NOI
Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income (excluding impact of Life Storage Merger) — for the Year Ending December 31, 2023 (In thousands) - Unaudited For the Year Ending December 31, 2023 Low High Net Income $ 854,200 $ 885,800 Adjusted to exclude: Equ
Slide 20: Key Highlights
Key Highlights As of June 30, 2023 (unaudited) (Dollars and shares in thousands) COMMON STOCK EQUIVALENTS Quarter Quarter Weighted Average Ending Common Shares 135,054 135,059 Dilutive Options 4 4 Operating Partnership Units 7,215 7,215 Preferred B Operating Partnership Units (as if converted) 223 2
Slide 21: Trailing Five Quarter Information
Trailing Five Quarter Information Consolidated Balance Sheet (unaudited) (Dollars in thousands) As of June 30, 2023 March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 Assets: Real estate assets, net $ 10,017,351 $ 9,991,446 $ 9,997,978 $ 9,877,080 $ 9,135,464 Real estate assets - oper
Slide 22: Summary Debt Maturity Schedule by Year
Summary Debt Maturity Schedule by Year for Consolidated Fixed- and Variable-Rate Debt Before and After Extensions As of June 30, 2023 (unaudited) (Dollars in thousands) Maturity Schedule Before Extensions Maturity Schedule After Extensions Wgt. Wgt. Avg. % of Avg. % of 2023 Maturities Amount Rate To
Slide 23: Detailed Debt Maturity Schedule and Enterprise Value
Detailed Debt Maturity Schedule and Enterprise Value As of June 30, 2023 (unaudited) (Dollars in thousands) Maturity Date Description Interest Rate Amount Basis for Rate Extendable Type Secured Fixed-rate debt: April-2025 Notes payable - swapped to fixed 3.5% $ 75,266 Fixed No Bank Loan June-2025 No
Slide 24: Debt Covenant Disclosure
Debt Covenant Disclosure As of June 30, 2023 (unaudited) (Dollars in thousands) Public Bond Covenants (1) Covenants Actual 1. Limitation on Total Outstanding Debt ≤ 60% 35.3% Total Outstanding Debt $ 8,014,055 Total Assets (2) $ 22,702,422 2. Limitation on Secured Debt ≤ 40% 7.2% Secured Debt $ 1,63
Slide 25: Summary of Notes Receivable Activity and Balances
Summary of Notes Receivable Activity and Balances As of June 30, 2023 (unaudited) (Dollars in thousands) Notes Receivable Mortgage Notes Mezzanine Notes Total Notes Receivable Receivable Receivable1 Notes Receivable Held as of March 31, 2023 $ 354,444 $ 153,440 $ 507,885 Add: Note Originations/Disbu
Slide 26: Store Portfolio Reporting Information (Three Months)
Store Portfolio Reporting Information For the Three Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Stores with Historical Operational Data Average Occupancy Revenue Expenses NOI # of Net Rentable Net Rent / Occupied for the Three Months for
Slide 27: Store Portfolio Reporting Information (Six Months)
Store Portfolio Reporting Information For the Six Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Stores with Historical Operational Data Average Occupancy Revenue Expenses NOI # of Net Rentable Net Rent / Occupied for the Six Months Ended f
Slide 28: Same-Store Detail
Same-Store Detail (unaudited) Excluding Tenant Insurance (Dollars in thousands) 2023 Same-Store Pool (914 Stores) 2022 Same-Store Pool (863 Stores) 2021 Same-Store Pool (833 Stores) For the Three Months Ended June 30, For the Three Months Ended June 30, For the Three Months Ended June 30, 2023 2022
Slide 29: MSA Performance Summary for Same-Store (Three Months)
MSA (1) Performance Summary for Same-Store For the Three Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Net Rent / Average Occupancy Revenue Expenses NOI # of Net Rentable Occupied for the Three Months Ended for the Three Months Ended for t
Slide 30: MSA Performance Summary for Same-Store (Six Months)
MSA (1) Performance Summary for Same-Store For the Six Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Net Rent / Average Occupancy Revenue Expenses NOI Net Rentable Occupied for the Six Months Ended for the Six Months Ended for the Six Mont
Slide 31: MSA Performance Summary for All Stabilized Stores (Three Months)
MSA (1) Performance Summary for All Stabilized (2) Stores For the Three Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Net Rent / Average Occupancy Revenue Expenses NOI # of Net Rentable Occupied for the Three Months Ended for the Three Mon
Slide 32: MSA Performance Summary for All Stabilized Stores (Six Months)
MSA (1) Performance Summary for All Stabilized (2) Stores For the Six Months Ended June 30, 2023 (unaudited) (Dollars in thousands except for net rent per occupied square foot) Net Rent / Average Occupancy Revenue Expenses NOI Net Rentable Occupied for the Six Months Ended for the Six Months Ended f
Slide 33: Certificate of Occupancy Acquisitions / Development Stores Summary
Certificate of Occupancy Acquisitions / Development Stores Summary (unaudited) (Dollars in thousands) Certificate of Occupancy / Development Stores - Under Agreement as of June 30, 2023 Purchase Price / Land + Estimated Estimated Estimated Construction Store Location Type Opening NRSF Cost in Progre
Slide 34: C of O / Development Stores Performance Summary (Three Months)
Certificate of Occupancy / Development Stores Performance Summary For the Three Months Ended June 30, 2023 (unaudited) (Dollars in thousands) Revenue for the Expenses for the NOI for the Date EXR % Net Rentable Occupancy at Three Months Ended Three Months Ended Three Months Ended Opened Ownership Pu
Slide 35: C of O / Development Stores Performance Summary (Six Months)
Certificate of Occupancy / Development Stores Performance Summary For the Six Months Ended June 30, 2023 (unaudited) (Dollars in thousands) Revenue for the Expenses for the NOI for the Date EXR % Purchase Net Rentable Occupancy at Six Months Ended Six Months Ended Six Months Ended Opened Ownership P
Slide 36: Reconciliation of Joint Venture Net Income to Equity in Earnings
Reconciliation of Joint Venture Net Income to Equity in Earnings For the Three Months Ended June 30, 2023 (unaudited) (Dollars in thousands) EXR EXR EXR EXR Preferred Total EXR EXR Pro- # of Equity Promote EXR EXR into Equity in Promoted Equity Equity in Net Income rata Share Joint Venture Name Stor
Slide 37: Consolidated and Total Operated Store Data by State
Consolidated Store Data by State (unaudited) Total Operated Store Data by State (unaudited) As of June 30, 2023 As of June 30, 2023 Average Occupancy Average Occupancy # of Net Rentable Total Quarter as of # of Net Rentable Total Quarter as of State Stores Sq. Ft. Units Occupancy June 30, 2023 State
Slide 38: Life Storage, Inc. Consolidated Balance Sheets
Life Storage, Inc. Consolidated Balance Sheets (1) June 30, 2023 December 31, (dollars in thousands, except share data) (unaudited) 2022 Assets Investment in storage facilities: Land $ 1,312,600 $ 1,307,425 Building, equipment, and construction in progress 6,908,830 6,864,381 8,221,430 8,171,806 Les
Slide 39: Life Storage, Inc. Consolidated Statements of Operations
Life Storage, Inc. Consolidated Statements of Operations (1) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (dollars in thousands, except per share data) 2023 2022 2023 2022 Revenues Rental income $ 243,024 $ 227,239 $ 483,507 $ 432,748 Tenant reinsurance 21,214 18,257 41,505 35,5
Slide 40: Life Storage, Inc. Same Store Data
Life Storage, Inc. Same Store Data for 664 stores owned since 12/31/2021 (1) (Unaudited) April 1, 2023 April 1, 2022 to to Percentage (dollars in thousands) June 30, 2023 June 30, 2022 Change Change Revenues: Rental income $ 213,611 $ 206,886 $ 6,725 3.3% Other operating income 1,894 2,197 (303) -13
Slide 41: Life Storage, Inc. Same Store Performance Summary by Market
Life Storage, Inc. Same Store Performance Summary by Market for 664 stores owned since 12/31/2021 (1) (Unaudited) Avg Qtrly Avg Qtrly Occupancy Revenue Expenses NOI Rent per for the Three Months for the Three Months for the Three Months for the Three Months Square Occupied Ended June 30, Ended June