Net income [USD, thousands]

Depreciation and amortization [USD, thousands]

Amortization of deferred financing costs [USD, thousands]

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes [USD, thousands]

Compensation expense related to share-based awards [USD, thousands]

Accrual of interest income added to principal of debt securities and notes receivable [USD, thousands]

Distributions from unconsolidated real estate ventures [USD, thousands]

Net cash provided by operating activities [USD, thousands]

Acquisition of real estate assets and improvements [USD, thousands]

Development and redevelopment of real estate assets [USD, thousands]

Proceeds from sale of real estate assets and investments in real estate ventures [USD, thousands]

Investment in unconsolidated real estate entities [USD, thousands]

Issuance and purchase of notes receivable [USD, thousands]

Principal payments received from notes receivable [USD, thousands]

Proceeds from sale of notes receivable [USD, thousands]

Purchase of equipment and fixtures [USD, thousands]

Net cash used in investing activities [USD, thousands]

Proceeds from unsecured term loans and senior notes and revolving lines of credit [USD, thousands]

Principal payments on unsecured term loans and senior notes and revolving lines of credit [USD, thousands]

Proceeds from issuance of public bonds, net [USD, thousands]

Proceeds from share issuances [USD, thousands]

Dividends paid on common stock [USD, thousands]

Distributions to noncontrolling interests [USD, thousands]

Net cash (used in) provided by financing activities [USD, thousands]

Net (decrease) increase in cash, cash equivalents, and restricted cash [USD, thousands]

Interest paid [USD, thousands]

Income taxes paid [USD, thousands]

Deferred financing costs [USD, thousands]

Cash, cash equivalents, and restricted cash, beginning of the period [USD, thousands]

Cash, cash equivalents, and restricted cash, end of the period [USD, thousands]

7c6d02825b5eec5c297c2586b6241b144bb7a01de43275237b7c5131c7a8a1af

The spike in **Cash and cash equivalents** in Q3 2023 was primarily driven by the completion of the **Life Storage Merger** on **July 20, 2023** in an **$11.6 billion all-stock transaction**.  **[0001628280-23-038325_exr-20230930.htm:8]** **[0001628280-23-037374_q32023ex991earningsrelease.htm:0]**  This major event, along with the associated **debt financing activities**—including drawing on its **line of credit**, utilizing an **undrawn $1 billion term loan**, and assuming **$2.4 billion in Life Storage's bonds**—resulted in significant liquidity changes. Additionally, increased **operating cash flow** from higher total revenues and proceeds from asset-related activities contributed to the liquidity boost.  **[0001628280-23-038325_exr-20230930.htm:8]** **[0001628280-23-037374_q32023ex991earningsrelease.htm:0]** 

Why did Cash and cash equivalents spike in Q3 2023?

The jump in **Total Assets** in Q3 2023 was primarily driven by the **merger with Life Storage** in July 2023, which added over **1,200 stores** to Extra Space Storage's portfolio. This merger significantly increased the company's **real estate assets**, **investments in unconsolidated real estate entities**, and **cash and cash equivalents**, collectively bolstering the overall asset base.  **[EXR_3365474_1]** **[0001628280-23-038325_exr-20230930.htm:3]** **[0001628280-23-037374_q32023ex991earningsrelease.htm:12]** 

What drove the jump in Total assets in Q3 2023?

The large increase in **Real estate assets, net** during Q3 2023 is primarily due to several factors: **the Life Storage merger**, which added over **1,200 stores** to the portfolio  **[EXR_3365474_1]** ; **additional acquisitions**, such as the purchase of 7 stores for **$64,695**  **[0001628280-23-038325_exr-20230930.htm:16]** ; an increase in **real estate under development**, which grew from **$52,311** to **$122,735**  **[0001628280-23-038325_exr-20230930.htm:17]** ; and **fair value adjustments** made as part of the merger.  **[0001628280-23-029991_q22023ex992lsiproformas.htm:4]** 

What explains the large increase in Real estate assets, net during Q3 2023?

The operating lease liabilities surged in Q3 2024 because Extra Space Storage significantly amended its existing triple-net lease agreements and added new triple-net lease agreements. Specifically, in September 2024, the company amended lease agreements for **27 stores** and entered into new agreements for **12 additional stores**, which collectively drove up the operating lease liabilities dramatically.  **[0001628280-24-045038_exr-20240930.htm:14]** **[20241029LA43333:2]** 

Why did Operating lease liabilities surge in Q3 2024?

The decline in **Secured notes payable** in Q3 2024 was primarily due to Extra Space Storage Inc. paying off **two secured loans totaling $248.3 million**, which led to the significant decrease from **$1,273,549** to **$1,011,705** during the period.  **[0001628280-24-044105_q32024ex991earningsrelease.htm:12]** **[0001628280-24-045038_exr-20240930.htm:3]** **[20241029LA43333:4]** 

What led to the decline in Secured notes payable in Q3 2024?

04c1b1fac9a4a7932bb517a44d8bfeb24910282c49706562f167342de8775dcb

In Q3 2023, Extra Space Storage's Basic Earnings per Common Share was significantly impacted by several factors. The company incurred **$54.2 million** in transition costs related to the Life Storage merger, which directly reduced net income.  **[0001628280-23-037374_q32023ex991earningsrelease.htm:0]** **[0001628280-23-037374_q32023ex991earningsrelease.htm:13]**  Additionally, **higher property taxes** in states such as Florida, Georgia, and Illinois  **[EXR_3365474_19]** , along with a substantial increase in property operating costs—from **$114.6 million** in Q3 2022 to **$185.2 million** in Q3 2023—and a more than doubling of depreciation and amortization expenses—from **$71.4 million** to **$152.3 million**  **[0001628280-23-037374_q32023ex991earningsrelease.htm:13]** —further contributed to the lower earnings. Lastly, the **interest expense nearly doubled** from **$56.2 million** to **$122.9 million** due to increased debt levels and merger-related costs.  **[0001628280-23-037374_q32023ex991earningsrelease.htm:13]** 

Why was Basic Earnings per Common Share so low in Q3 2023?

Extra Space Storage’s Q3 2024 loss on real estate assets held for sale was triggered by a revaluation of the properties classified as held for sale. **Seventeen stores** were in this category as of September 30, 2024, and for **nine of these**, the estimated fair value, net of selling costs, was lower than their carrying value. This revaluation led to the recorded loss of **$8,961 thousand** in Q3 2024.  **[0001628280-24-045038_exr-20240930.htm:35]** 

What triggered the loss on Real Estate Assets Held for Sale in Q3 2024?

The significant increase in Depreciation and Amortization Expense in Q4 2023 was primarily driven by the Life Storage Merger, which involved the acquisition of **757 wholly-owned stores** and an additional **14 stores**, significantly increasing the depreciable asset base. Additionally, the acquisition of **153 new stores** in 2022 directly contributed to the higher expense in 2023, as these assets began to be depreciated over the year. The increase was further supported by the recognition and amortization of intangible assets, such as tenant relationships and lease rights, that arose from these mergers and acquisitions.  **[0001628280-24-008044_exr-20231231.htm:47]** **[0001628280-24-008044_exr-20231231.htm:82]** 

What drove the significant increase in Depreciation and Amortization Expense in Q4 2023?

The **Tenant Reinsurance Revenue** jump in Q1 2024 was primarily driven by an **increase in the number of stores operated** and **growth in tenant reinsurance operations**. Specifically, the company expanded its operations by increasing the number of stores from **2,388** on March 31, 2023, to **3,793** on March 31, 2024, in part due to the **Life Storage Merger** and other acquisitions. This expansion boosted tenant reinsurance participation and significantly increased revenue ( **[0001628280-24-020317_exr-20240331.htm:31]** **[0001628280-24-019360_q12024ex991earningsrelease.htm:11]** **[0001628280-24-020317_exr-20240331.htm:32]** ).

What factors contributed to the jump in Tenant Reinsurance Revenue in Q1 2024?

5430f9442479dc5068eb9c383ab00af728b195363ae56c463e05a48cde8f9db2

Property Rental Revenue (USD, thousands)

Tenant Reinsurance Revenue (USD, thousands)

Management Fees and Other Income (USD, thousands)

Total Revenues (USD, thousands)

Property Operations Expense (USD, thousands)

Tenant Reinsurance Expense (USD, thousands)

General and Administrative Expense (USD, thousands)

Depreciation and Amortization Expense (USD, thousands)

Total Expenses (USD, thousands)

Income from Operations (USD, thousands)

Interest Expense (USD, thousands)

Non-Cash Interest Expense Related to Amortization of Discount on Life Storage Unsecured Senior Notes (USD, thousands)

Interest Income (USD, thousands)

Income Before Equity in Earnings and Dividend Income from Unconsolidated Real Estate Entities and Income Tax Expense (USD, thousands)

Equity in Earnings and Dividend Income from Unconsolidated Real Estate Entities (USD, thousands)

Income Tax Expense (USD, thousands)

Net Income (USD, thousands)

Net Income Allocated to Preferred Operating Partnership Noncontrolling Interests (USD, thousands)

Net Income Allocated to Operating Partnership and Other Noncontrolling Interests (USD, thousands)

Extra Space Storage (EXR)

Financials