Victor Fedev

Victor Fedev asked about Extra Space Storage's ECRI (Existing Customer Rate Increase) strategy, specifically the average magnitude of increases today versus last year, and the base case assumption for ECRI contribution to same-store revenue growth in 2026 compared to 2025. He also requested details on the 26 properties sold during the quarter, including pricing and the bidding process, and whether the company is largely done with portfolio optimization.

Answer

CEO Joe Margolis stated that specifics around the ECRI program are not disclosed due to competitive advantage, but no material change in contribution is expected year-over-year, with Los Angeles County being a caveat. Regarding property sales, he indicated that a small number of properties would be sold annually for optimization. The larger number of sales in 2025 included 22 former Life Storage assets, sold at a market cap rate as part of the merger plan, with proceeds successfully reinvested into stock repurchases, bridge loans, and portfolio acquisitions.

Victor Fedev asked about Extra Space Storage's ECRI (Existing Customer Rate Increase) strategy, specifically the average magnitude of increases today versus last year, and the base case assumption for ECRI contribution to same-store revenue growth in 2026 compared to 2025. He also requested details on the 26 properties sold during the quarter, including pricing and bidding, and whether portfolio optimization sales would continue in 2026 and 2027.

Answer

Joe Margolis, CEO, stated that specifics around the ECRI program are not disclosed due to competitive advantage but do not foresee material changes year-over-year, with generally similar contribution, except for Los Angeles County. Regarding property sales, Joe Margolis explained that a small number of properties are sold annually for optimization. The larger number in 2025 was due to 22 former Life Storage assets, part of the merger plan, which were sold at a market cap rate, and the capital was successfully reinvested into stock repurchases, bridge loans, and portfolio acquisitions.