SOURCE: Extra Space Storage Inc.

Extra Space Storage Inc.

February 22, 2011 16:15 ET

Extra Space Storage Inc. Reports Fourth Quarter 2010 Results

FFO of $0.26 per Share; Same-Store NOI Up 5.3%; First Quarter 2011 Dividend Increased by 40%

SALT LAKE CITY, UT--(Marketwire - February 22, 2011) - Extra Space Storage Inc. (NYSE: EXR), a leading owner and operator of self-storage properties in the United States, announced operating results for the three months and year ended December 31, 2010.

Highlights for the Three Months Ended December 31, 2010:

-- Achieved funds from operations ("FFO") of $0.26 per diluted share
   including development dilution of $0.03 per share.

-- Grew same-store occupancy by 190 basis points to 84.8%, compared to
   82.9% during the same period in 2009.

-- Increased same-store revenue and net operating income ("NOI") by
   3.3% and 5.3%, respectively, as compared to the same period in 2009.
   Same-store revenue and NOI include tenant reinsurance income and
   expenses.

-- Acquired eight properties for approximately $42.0 million.

-- Added six properties to the Company's third-party management platform.

Spencer F. Kirk, Chairman and CEO of Extra Space Storage Inc., commented: "Our operating and technology platform delivered solid top-line growth and expense containment resulting in excellent NOI growth. We believe our occupancy is approaching an optimal level, giving us pricing power as we head into 2011. We continue to invest in technology initiatives that will enable us to capture more business and increase our efficiencies. With property level growth trending towards historical levels and increased acquisition activity, we are looking forward to a successful 2011."

FFO per Share:

The following table outlines the Company's FFO and FFO as adjusted for the three months and year ended December 31, 2010 and 2009. The table also provides a reconciliation to GAAP net income per diluted share for each period presented (amounts shown in thousands, except share data - unaudited):

                           For the Three Months Ended December 31,
                     ----------------------------------------------------
                               2010                       2009
                     -------------------------  -------------------------
                                  (per share)                (per share)
Net income
 attributable to
 common stockholders $    8,916  $        0.10  $    5,932  $        0.07
Adjustments:
  Real estate
   depreciation          12,195           0.13      12,473           0.13
  Amortization of
   intangibles              251              -         201              -
  Joint venture real
   estate depreciation
   and amortization       2,088           0.02       1,521           0.01
  Joint venture loss
   on sale of
   properties                 -              -           7              -

  Distributions paid
   on Preferred
   Operating
   Partnership units     (1,437)         (0.01)     (1,437)         (0.01)
  Income allocated to
   Operating
   Partnership
   noncontrolling
   interests              1,879           0.02       1,763           0.02
                     ----------  -------------  ----------  -------------
Funds from
 operations          $   23,892  $        0.26  $   20,460  $        0.22
                     ==========  =============  ==========  =============

Adjustments:
  Non-cash interest
   expense related to
   amortization of
   discount on
   exchangeable
   senior notes             428              -         405              -
  Gain on repurchase
   of exchangeable
   senior notes               -              -        (352)             -
  Unrecovered
   development and
   acquisition costs        812           0.01         106              -
  Loss on sublease            -              -           -              -
  Severance costs             -              -         825           0.01
                     ----------  -------------  ----------  -------------
Funds from
  operations -
  adjusted           $   25,132  $        0.27  $   21,444  $        0.23
                     ==========  =============  ==========  =============

Weighted average
 number of shares -
 diluted             92,348,254                 91,364,431



                               For the Year Ended December 31,
                     ----------------------------------------------------
                               2010                       2009
                     -------------------------  -------------------------
                                  (per share)                (per share)
Net income
 attributable to
 common stockholders $   26,331  $        0.30  $   31,977  $        0.37
Adjustments:
  Real estate
   depreciation          47,063           0.50      48,417           0.51
  Amortization of
   intangibles              650              -       1,647           0.02
  Joint venture real
   estate depreciation
   and amortization       8,269           0.09       5,805           0.06
  Joint venture loss
   on sale of
   properties                65              -         175              -

  Distributions paid
   on Preferred
   Operating
   Partnership units     (5,750)         (0.06)     (5,750)         (0.06)
  Income allocated to
   Operating
   Partnership
   noncontrolling
   interests              7,096           0.08       8,012           0.09
                     ----------  -------------  ----------  -------------
Funds from
 operations          $   83,724  $        0.91  $   90,283  $        0.99
                     ==========  =============  ==========  =============

Adjustments:
  Non-cash interest
   expense related to
   amortization of
   discount on
   exchangeable
   senior notes           1,664           0.02       2,239           0.02
  Gain on repurchase
   of exchangeable
   senior notes               -              -     (27,928)         (0.30)
  Unrecovered
   development and
   acquisition costs      1,235           0.01      19,011           0.21
  Loss on sublease        2,000           0.02           -              -
  Severance costs             -              -       2,225           0.02
                     ----------  -------------  ----------  -------------
Funds from
 operations -
 adjusted            $   88,623  $        0.96  $   85,830  $        0.94
                     ==========  =============  ==========  =============

Weighted average
 number of shares -
 diluted             92,050,453                 91,082,834

FFO and FFO as adjusted include the dilutive impact from lease-up development properties of $0.03 per diluted share for the three months ended December 31, 2010 and December 31, 2009, respectively. Included in operating results for the year ended December 31, 2010, is a one-time charge of $0.02 per diluted share related to the bankruptcy of a tenant sub-leasing office space in Memphis, Tennessee from the Company under a long-term lease assumed in the 2005 Storage USA acquisition and $0.12 per diluted share for the dilutive impact from lease-up development properties. Operating results for the year ended December 31, 2009 included a one-time charge of $0.21 per diluted share as a result of the wind-down of the Company's development program, a gain of $0.30 from the repurchase of exchangeable senior notes and $0.09 of dilution from lease-up development properties.

Operating Results and Same-Store Property Performance:

The Company's major markets with revenue growth above the portfolio average for the three months ended December 31, 2010, were Boston, Dallas, Denver, Philadelphia and Washington, D.C. Markets performing below the Company's portfolio average included Atlanta, Las Vegas, Los Angeles and Phoenix.

For the three months ended December 31, 2010, revenue at the Company's 246 same-store properties increased by 3.3% compared to the three months ended December 31, 2009. Same-store expenses decreased by 0.3% as a result of lower than anticipated property tax and insurance expenses and operational efficiencies, resulting in a 5.3% improvement in same-store NOI compared to the three months ended December 31, 2009. The Company realized a 190 basis point improvement in same-store occupancy finishing the year at 84.8% compared to 82.9% as of December 31, 2009.

Balance Sheet:

Subsequent to year-end, the Company obtained an $82.5 million, ten-year CMBS loan from Bank of America at a fixed-rate of 5.8%.

The Company's percentage of fixed-rate debt to total debt was 65.6% as of December 31, 2010. The weighted average interest rate on the Company's debt was 5.5% for fixed-rate debt and 3.1% for variable-rate debt. The combined weighted average interest rate was 4.7% with a weighted average maturity of approximately six years.

Acquisition and Third-Party Management Activity:

The Company purchased eight properties during the quarter for $42.0 million with cash on hand of $36.8 million and assumed debt of $5.6 million. The properties are located in Maryland, New York, Texas, Utah and Virginia. Subsequent to year-end, the Company placed under contract an additional seven properties located in California, Colorado, Texas, Virginia and Utah for approximately $40.5 million. These transactions are subject to due diligence and other customary closing conditions and are currently expected to close by the end of the second quarter of 2011. No assurance can be provided that any of these acquisitions will be completed on the terms described, or at all.

During the quarter, six properties were added to the Company's third-party management program. Three additional properties have been brought into the program subsequent to year-end. A total of 48 properties were added to the program in 2010 bringing the total number of properties under management to 160 as of December 31, 2010. The Company continues to be the largest third-party self-storage management company in the United States.

Development Projects:

Subsequent to year-end, one development project was opened in Peoria, Arizona for a total cost of $5.7 million. Five projects remain in the Company's development pipeline, with an estimated $10.4 million of funding required for completion. The Company expects to complete three development projects in the first quarter of 2011.

Dividends:

The Company paid a fourth quarter dividend of $0.10 per share on the common stock of the Company on December 31, 2010 to stockholders of record at the close of business on December 10, 2010.

On February 8, 2011, the Company's Board of Directors increased the first quarter 2011 dividend 40.0% by declaring a cash dividend of $0.14 per share on the common stock of the Company. The dividend will be paid on March 31, 2011 to stockholders of record at the close of business on March 15, 2011.

Outlook:

The Company currently estimates that FFO per diluted share for the first quarter of 2011 will be between $0.22 and $0.24. For the year ending December 31, 2011, the Company currently estimates that FFO per diluted share will be between $1.01 and $1.07. FFO estimates for the year are fully diluted for an estimated average number of shares and Operating Partnership units ("OP units") outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions.

The Company's actual results may differ materially from these estimates, which include the following annual assumptions:

-- Same-store property revenue growth including tenant reinsurance
   between 1.0% and 2.5%.

-- Same-store property expense increase including tenant reinsurance
   between 1.5% and 3.0%.

-- Same-store property NOI growth including tenant reinsurance between
   0.0% and 3.0%.

-- Net tenant reinsurance income between $21.0 million and $22.0 million.

-- General and administrative expenses between $48.0 million and
   $50.0 million, including non-cash compensation expense of approximately
   $5.0 million.

-- Average monthly cash balance of approximately $30.0 million.

-- Equity in earnings of real estate ventures between $7.0 million and
   $8.0 million.

-- Acquisition activity of approximately $100.0 million spread evenly
   throughout the year.

-- Interest expense between $68.0 million and $70.0 million.

-- Weighted average LIBOR of 0.6%.

-- Weighted average number of outstanding shares, including Operating
   Partnership ("OP") units, of approximately 92.4 million.

-- Dilution associated with the Company's development program between
   $8.5 million and $9.5 million.

-- Taxes associated with the Company's taxable Real Estate Investment
   Trust ("REIT") subsidiary between $2.0 million and $3.0 million,
   inclusive of solar tax credits.

-- Non-cash interest charges associated with exchangeable senior notes
   of approximately $1.8 million.

Supplemental Financial Information:

Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Click on the "Investor Relations" link at the bottom of the home page, then on "SEC Filings," then on "Documents" on the left of the page and the document entitled "Financial Supplement." This supplemental information provides additional detail on items that include property occupancy and financial performance by portfolio and market, debt maturity schedules and performance and progress of property development.

At periodic times, the Company will provide graphical information related to the Company and/or the self-storage industry. These graphics can be seen at www.extraspace.com/irgraphic.

Conference Call:

The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, February 23, 2011 to discuss its financial results. To participate in the conference call, please dial 866-783-2145 or 857-350-1604 for international participants, Conference ID: 99540134. The conference call will also be available on the Company's website at www.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will be available for 30 days on the Company's website in the Investor Relations section.

A replay of the call will also be available by telephone, from 4:00 p.m. Eastern Time on February 23, 2011, until midnight Eastern Time on March 25, 2011. The replay dial-in numbers are 888-286-8010 or 617-801-6888 for international callers, Conference ID: 80264378.

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 our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number 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 most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

-- changes in general economic conditions and in the markets in which
   we operate;

-- the effect of competition from new and existing self-storage facilities
   or other storage alternatives, which could cause rents and occupancy
   rates to decline;

-- difficulties in our ability to evaluate, finance, complete and
   integrate acquisitions and developments successfully and to lease up
   those properties, which could adversely affect our profitability;

-- potential liability for uninsured losses and environmental
   contamination;

-- the impact of the regulatory environment as well as national, state,
   and local laws and regulations including, without limitation, those
   governing REITs, which could increase our expenses and reduce our cash
   available for distribution;

-- disruptions in credit and financial markets and resulting difficulties
   in raising capital or obtaining credit at reasonable rates or at all,
   which could impede our ability to grow;

-- delays in the development and construction process, which could
   adversely affect our profitability;

-- economic uncertainty due to the impact of war or terrorism, which could
   adversely affect our business plan; and

-- our ability to attract and retain qualified personnel and management
   members.

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. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Notes to Financial Information:

The Company operates as a self-managed and self-administered REIT. Readers are encouraged to find further detail regarding Extra Space Storage's organizational structure in its most recent Annual Report on Form 10-K as filed with the SEC.

Definition of FFO:

FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net earnings. Net earnings assume that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with accounting principles generally accepted in the United States ("GAAP"), excluding gains or losses on sales of operating properties, plus depreciation and amortization 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, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements.

For informational purposes, the Company provides FFO as adjusted for the exclusion of gains from early extinguishment of debt, non-recurring write-downs, unrecovered acquisition and development costs and non-cash interest charges related to ASC 470-20 (formerly FASB Staff Position No. APB 14-1). Although the Company's calculation of FFO as adjusted differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding gains from early extinguishment of debt, non-recurring write-downs, the costs related to acquiring properties and non-cash charges related to ASC 470-20 (formerly FASB Staff Position No. APB 14-1), stockholders and potential investors are presented with an indicator of its operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. FFO as adjusted by the Company should not be considered a replacement of the NAREIT definition of FFO or used as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities, as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.

The Company's computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities, as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.

Definition of Same-Store Properties:

The Company's same-store properties for the three months and year ended December 31, 2010 consisted of 246 properties that were wholly-owned and operated and that were stabilized by the first day of each period. The Company considers a property to be stabilized once it has been open three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. Same-store results provide information relating to property operations without the effects of acquisitions or completed developments and should not be used as a basis for future same-store performance or for the performance of the Company's properties as a whole.

About Extra Space Storage Inc.:

Extra Space Storage, headquartered in Salt Lake City, Utah, is a fully integrated, self-administered and self-managed real estate investment trust that owns and/or operates 820 self-storage properties in 34 states and Washington, D.C. The Company's properties comprise approximately 550,000 units and over 59 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.

Same-Store Property Performance for the Three Months and Year Ended
 December 31, 2010 - Unaudited
(In thousands, except occupancy and property counts.)

              For the Three Months           For the Year Ended
               Ended December 31,               December 31,
              --------------------  Percent --------------------  Percent
                2010       2009     Change    2010       2009     Change
              ---------  ---------  ------  ---------  ---------  -------
Same-store
 rental and
 tenant
 reinsurance
 revenues     $  56,720  $  54,897     3.3% $ 224,826  $ 220,101      2.1%
Same-store
 operating
 and tenant
 reinsurance
 expenses        19,114     19,181    (0.3%)   77,075     77,924     (1.1%)
              ---------  ---------  ------  ---------  ---------  -------
Same-store
 net
 operating
 income       $  37,606  $  35,716     5.3% $ 147,751  $ 142,177      3.9%

Non
 same-store
 rental and
 tenant
 reinsurance
 revenues     $  10,368  $  10,548    (1.7%)$  33,549  $  39,084    (14.2%)
Non
 same-store
 operating
 and tenant
 reinsurance
 expenses     $   4,909  $   3,763    30.5% $  15,595  $  16,472     (5.3%)

Total rental
 and tenant
 reinsurance
 revenues     $  67,088  $  65,445     2.5% $ 258,375  $ 259,185     (0.3%)
Total
 operating
 and tenant
 reinsurance
 expenses     $  24,023  $  22,944     4.7% $  92,670  $  94,396     (1.8%)

Same-store
 square foot
 occupancy as
 of period
 end               84.8%      82.9%              84.8%      82.9%

Properties
 included in
 same-store         246        246                246        246


Reconciliation of the Range of Estimated Fully Diluted Net Income
 per Share to Estimated Fully Diluted FFO and Fully Diluted
 FFO per Share - Adjusted

                                      For the Three        For the Year
                                      Months Ending           Ending
                                      March 31, 2011    December 31, 2011
                                    ------------------  ------------------
                                    Low End   High End  Low End   High End
                                    --------  --------  --------  --------
Net income attributable to common
 stockholders per diluted share     $   0.07  $   0.09  $   0.36  $   0.42
  Income allocated to noncontrolling
   interest - Preferred Operating
   Partnership and Operating
   Partnership                          0.02      0.02      0.09      0.09
  Fixed component of income
   allocated to non-controlling
   interest - Preferred Operating
   Partnership                         (0.02)    (0.02)    (0.06)    (0.06)
                                    --------  --------  --------  --------
Net income for diluted computations     0.07      0.09      0.39      0.45

Adjustments:
  Real estate depreciation              0.13      0.13      0.51      0.51
  Amortization of intangibles              -         -      0.01      0.01
  Joint venture real estate
   depreciation and amortization        0.02      0.02      0.10      0.10
                                    --------  --------  --------  --------
Diluted funds from operations per
 share                              $   0.22  $   0.24  $   1.01  $   1.07
                                    ========  ========  ========  ========



Extra Space Storage Inc.
Consolidated Balance Sheets
(In thousands, except share data)

                                                    December     December
                                                    31, 2010     31, 2009
                                                  -----------  -----------

Assets:
Real estate assets:
  Net operating real estate assets                $ 1,935,319  $ 2,015,432
  Real estate under development                        37,083       34,427
                                                  -----------  -----------
    Net real estate assets                          1,972,402    2,049,859

Investments in real estate ventures                   140,560      130,449
Cash and cash equivalents                              46,750      131,950
Restricted cash                                        30,498       39,208
Receivables from related parties and affiliated
 real estate joint ventures                            10,061        5,114
Other assets, net                                      48,197       50,976
                                                  -----------  -----------
      Total assets                                $ 2,248,468  $ 2,407,556
                                                  ===========  ===========

Liabilities, Noncontrolling Interests and Equity:
Notes payable                                     $   871,403  $ 1,099,593
Notes payable to trusts                               119,590      119,590
Exchangeable senior notes                              87,663       87,663
Discount on exchangeable senior notes                  (2,205)      (3,869)
Lines of credit                                       170,467      100,000
Accounts payable and accrued expenses                  34,210       33,386
Other liabilities                                      28,269       24,974
                                                  -----------  -----------
      Total liabilities                             1,309,397    1,461,337
                                                  -----------  -----------

Commitments and contingencies

Equity:
  Extra Space Storage Inc. stockholders' equity:
   Preferred stock, $0.01 par value, 50,000,000
   shares authorized, no shares issued or
   outstanding                                              -            -
  Common stock, $0.01 par value, 300,000,000
   shares authorized, 87,587,322 and 86,721,841
   shares issued and outstanding at December 31,
   2010 and December 31, 2009, respectively               876          867
  Paid-in capital                                   1,148,820    1,138,243
  Accumulated other comprehensive deficit              (5,787)      (1,056)
  Accumulated deficit                                (262,508)    (253,875)
                                                  -----------  -----------
    Total Extra Space Storage Inc. stockholders'
     equity                                           881,401      884,179
  Noncontrolling interest represented by Preferred
   Operating Partnership units, net of $100,000
   note receivable                                     29,733       29,886
  Noncontrolling interests in Operating
   Partnership                                         26,803       31,381
  Other noncontrolling interests                        1,134          773
                                                  -----------  -----------
      Total noncontrolling interests and equity         939,071
946,219
                                                  -----------  -----------
      Total liabilities, noncontrolling interests
       and equity                                 $ 2,248,468  $ 2,407,556
                                                  ===========  ===========



Consolidated Statement of Operations for the Three Months Ended
 December 31, 2010 and 2009 - Unaudited
(In thousands, except share and per share data)

                                                      Three Months Ended
                                                         December 31,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------
Revenues:
  Property rental                                   $   60,186  $   59,762
  Management and franchise fees                          6,066       5,276
  Tenant reinsurance                                     6,902       5,683
                                                    ----------  ----------
    Total revenues                                      73,154      70,721
                                                    ----------  ----------

Expenses:
  Property operations                                   21,934      21,479
  Tenant reinsurance                                     2,089       1,465
  Unrecovered development and acquisition costs            812         106
  Severance costs                                            -         825
  General and administrative                            11,525       9,230
  Depreciation and amortization                         13,209      13,243
                                                    ----------  ----------
    Total expenses                                      49,569      46,348
                                                    ----------  ----------

Income from operations                                  23,585      24,373

Interest expense                                       (14,907)    (18,271)
Non-cash interest expense related to amortization
 of discount on exchangeable senior notes                 (428)       (405)
Interest income                                            184         484
Interest income on note receivable from Preferred
 Operating Partnership unit holder                       1,212       1,212
Gain on repurchase of exchangeable senior notes              -         352
                                                    ----------  ----------
Income before equity in earnings of real estate
 ventures and income tax expense                         9,646       7,745

Equity in earnings of real estate ventures               1,957       1,676
Income tax expense                                        (815)     (1,983)
                                                    ----------  ----------
Net income                                              10,788       7,438
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                   (1,538)     (1,505)
Net income allocated to Operating Partnership and
 other noncontrolling interests                           (334)         (1)
                                                    ----------  ----------
Net income attributable to common stockholders      $    8,916  $    5,932
                                                    ==========  ==========

Net income per common share
  Basic                                             $     0.10  $     0.07
  Diluted                                           $     0.10  $     0.07

Weighted average number of shares
  Basic                                             87,565,487  86,588,048
  Diluted                                           92,348,254  91,364,431

Cash dividends paid per common share                $     0.10  $     0.13



Consolidated Statement of Operations for the Year Ended
 December 31, 2010 and 2009 - Unaudited
(In thousands, except share and per share data)

                                                      For the Year Ended
                                                         December 31,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------
Revenues:
  Property rental                                   $  232,447  $  238,256
  Management and franchise fees                         23,122      20,961
  Tenant reinsurance                                    25,928      20,929
                                                    ----------  ----------
    Total revenues                                     281,497     280,146

Expenses:
  Property operations                                   86,165      88,935
  Tenant reinsurance                                     6,505       5,461
  Unrecovered development and acquisition costs          1,235      19,011
  Loss on sublease                                       2,000           -
  Severance costs                                            -       2,225
  General and administrative                            44,428      40,224
  Depreciation and amortization                         50,349      52,403
                                                    ----------  ----------
    Total expenses                                     190,682     208,259

Income from operations                                  90,815      71,887

Interest expense                                       (64,116)    (67,579)
Non-cash interest expense related to amortization
 of discount on exchangeable senior notes               (1,664)     (2,239)
Interest income                                            898       1,582
Interest income on note receivable from Preferred
 Operating Partnership unit holder                       4,850       4,850
Gain on repurchase of exchangeable senior notes              -      27,928
                                                    ----------  ----------
Income before equity in earnings of real estate
 ventures and income tax expense                        30,783      36,429

Equity in earnings of real estate ventures               6,753       6,964
Income tax expense                                      (4,162)     (4,300)
                                                    ----------  ----------
Net income                                              33,374      39,093
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                   (6,048)     (6,186)
Net income allocated to Operating Partnership and
 other noncontrolling interests                           (995)       (930)
                                                    ----------  ----------
Net income attributable to common stockholders      $   26,331  $   31,977
                                                    ==========  ==========

Net income per common share
  Basic                                             $     0.30  $     0.37
  Diluted                                           $     0.30  $     0.37

Weighted average number of shares
  Basic                                             87,324,104  86,343,029
  Diluted                                           92,050,453  91,082,834

Cash dividends paid per common share                $     0.40  $     0.38


Contact Information

  • For Information:

    Clint Halverson
    Extra Space Storage Inc.
    (801) 365-4597