Daniela Perdomo

Daniela Perdomo asked about Extra Space Storage's bridge loan strategy, noting that the backlog has largely been addressed and the balance is expected to be flat in 2026. She inquired if the balance is expected to decline beyond 2026 or if consistent activity will maintain it.

Answer

CFO Jeff Norman stated that Extra Space Storage is intentionally guiding to maintaining relatively flat bridge loan balances. He explained that the flexible structure allows the company to retain or sell portions of loans, and confidence in maintaining balances stems from ongoing origination activity, borrower extensions, and the role of bridge loans as an acquisition pipeline, which also brings in management and provides solid returns.

Daniela Perdomo asked about Extra Space Storage's bridge loan portfolio, noting that the majority of the backlog has been addressed and the balance is expected to be flat in 2026. She inquired whether the balance is expected to decline beyond 2026 or remain consistent.

Answer

Jeff Norman, CFO, explained that the flat guidance for bridge loan balances is intentional, reflecting a flexible structure that allows the company to retain or sell portions of loans. He expressed confidence in maintaining these balances through ongoing origination activity and borrower extensions. The bridge loan program serves as an acquisition pipeline, sources future acquisitions, and provides solid returns, indicating a desire to keep it consistent.