SOURCE: Extra Space Storage Inc.

Extra Space Storage Inc.

April 16, 2012 16:05 ET

Extra Space Storage Inc. Announces Offering of 7,000,000 Shares of Common Stock

SALT LAKE CITY, UT--(Marketwire - Apr 16, 2012) - Extra Space Storage Inc. (NYSE: EXR) (the "Company") today announced that it will issue and sell 7,000,000 shares of its common stock in a public offering. Citigroup is acting as the sole book-running manager for the offering. The Company will grant the underwriter a 30-day option to purchase up to an additional 1,050,000 shares.

The Company intends to use the net proceeds of this offering to fund its acquisition of a 94.9% interest in ESS PRISA III LLC from Prudential Real Estate Investors ("PREI®"), to repay outstanding indebtedness, to fund other future acquisitions and for other general corporate and working capital purposes. The purchase price of PREI's interest is approximately $298.0 million, of which approximately $160.0 million is to be paid in cash at closing. The remaining $138.0 million relates to PREI's interest in an existing loan of $145.0 million that will be assumed by the Company at closing.

An automatic shelf registration statement relating to these securities was previously filed with the Securities and Exchange Commission on August 12, 2011. A preliminary prospectus supplement relating to this offering was filed with the Securities and Exchange Commission.

This release does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale is not permitted. The offering will be made only by means of a prospectus supplement and accompanying prospectus, copies of which, when available, may be obtained from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, Attention: Prospectus Department, Telephone: (800) 831-9146.

About Extra Space Storage Inc.:

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a fully integrated, self-administered and self-managed REIT that owns and/or operates 882 self-storage properties in 34 states and Washington, D.C. The Company's properties comprise approximately 585,000 units and approximately 64 million square feet of rentable space, offering customers a wide selection of conveniently located and secure storage solutions across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage properties in the United States and is the largest self-storage management company in the United States.

Forward-Looking Statements:

Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements related to the completion, timing and size of the proposed offering of securities by the Company and the use of net proceeds therefrom and the completion of the joint-venture acquisition. In some cases, forward-looking statements can be identified by terminology such as "believes," "expects," "estimates," "may," "will," "should," "anticipates," or "intends" or the negative of such terms or other comparable terminology. 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. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements. All 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. Forward-looking statements apply only as of the date of this release. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.