Extra Space Storage Inc. Reports 2025 First Quarter Results

, /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three months ended March 31, 2025. Highlights for the three months ended March 31, 2025: Achieved net income attributable to common stockholders of $1.28 per diluted share, representing a 26.7% increase compared to the same period in the prior year. Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.93 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.00 per diluted share, representing a 2.0% increase compared to the same period in the prior year. Same-store revenue increased by 0.3% and same-store net operating income ("NOI") decreased by (1.2)% compared to the same period in the prior year. Reported ending same-store occupancy of 93.4% as of March 31, 2025, compared to 92.4% as of March 31, 2024. Acquired 12 operating stores for a total cost of approximately $153.8 million. Acquired six additional properties by exchanging ownership interest in 17 properties from an existing joint venture. In conjunction with joint venture partners, acquired two operating stores and completed the development of one store for a total cost of approximately $38.3 million, of which the Company invested $24.5 million. Originated $53.2 million in mortgage and mezzanine bridge loans and sold $27.7 million in mortgage bridge loans. Added 113 stores (100 stores net) to the Company's third-party management platform. As of March 31, 2025, the Company managed 1,675 stores for third parties and 439 stores in unconsolidated joint ventures, for a total of 2,114 managed stores. Paid a quarterly dividend of $1.62 per share. Joe Margolis, CEO of Extra Space Storage Inc., stated: "We had a solid first quarter, beating same store revenue expectations, maintaining historically high occupancy, and continuing to grow our capital light ancillary businesses. This led to FFO growth above our internal projections. Despite this level of performance, the recent economic uncertainty has caused us to maintain our same-store guidance. While the current environment is volatile and may lead to difficult economic times, our team, strategy, and systems have proven the ability to produce stable cash flow returns in similar conditions." FFO Per Share: The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2025 and 2024. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data): For the Three Months Ended March 31, 2025 2024 (per share)1 (per share)1 Net income attributable to common stockholders $ 270,875 $ 1.28 $ 213,112 $ 1.01 Impact of the difference in weighted average number of shares – diluted2 (0.06) (0.05) Adjustments: Real estate depreciation 159,170 0.72 154,372 0.70 Amortization of intangibles 11,079 0.05 29,284 0.12 Gain on real estate assets held for sale and sold, net (35,761) (0.16) — — Unconsolidated joint venture real estate depreciation and amortization 8,689 0.04 7,840 0.04 Income allocated to Operating Partnership and other noncontrolling interests 14,050 0.06 10,962 0.05 FFO $ 428,102 $ 1.93 $ 415,570 $ 1.87 Adjustments: Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 11,313 0.05 10,705 0.05 Amortization of other intangibles related to the Life Storage Merger, net of tax benefit 4,531 0.02 7,440 0.04 CORE FFO $ 443,946 $ 2.00 $ 433,715 $ 1.96 Weighted average number of shares – diluted3 221,896,114 221,737,606 (1) Per share amounts may not recalculate due to rounding. (2) The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3). (3) Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans. Operating Results and Same-Store Performance: The following table (unaudited) outlines the Company's same-store performance for the three months ended March 31, 2025 and 2024 (amounts shown in thousands, except store count data)1: For the Three Months Ended March 31, Percent 2025 2024 Change Same-store property revenues2 Net rental income $ 635,798 $ 631,313 0.7 % Other income 23,938 26,210 (8.7) % Total same-store revenues $ 659,736 $ 657,523 0.3 % Same-store operating expenses2 Payroll and benefits $ 40,220 $ 41,152 (2.3) % Marketing 13,929 15,917 (12.5) % Office expense3 20,305 20,873 (2.7) % Property operating expense4 19,568 19,131 2.3 % Repairs and maintenance 15,207 14,574 4.3 % Property taxes 75,448 65,149 15.8 % Insurance 7,750 7,841 (1.2) % Total same-store operating expenses $ 192,427 $ 184,637 4.2 % Same-store net operating income2 $ 467,309 $ 472,886 (1.2) % Same-store square foot occupancy as of quarter end 93.4 % 92.4 % Average same-store square foot occupancy 93.3 % 92.1 % Properties included in same-store5 1,829 1,829 (1) A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income." (2) Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense. (3) Includes general office expenses, computer, bank fees, and credit card merchant fees. (4) Includes utilities and miscellaneous other store expenses. (5) On January 1, 2025, the Company updated the property count of the same-store pool from 1,071 to 1,829 stores. Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2025 and 2024 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Investment and Property Management Activity: The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands). Closed/Completedthrough March 31, 2025 Closed/Completed Subsequent to March 31, 2025 Scheduled to StillClose/Completein 2025 Total 2025 To Close/Complete in 2026 Wholly-Owned Investment1 Stores Price Stores Price Stores Price 3 Stores Price Stores Price Operating Stores2 12 $ 153,808 — $ — 28 $ 338,500 40 $ 492,308 — $ — C of O and Development Stores1 — — — — — — — — — — EXR Investment in Wholly-Owned Stores 12 153,808 — — 28 338,500 40 492,308 — — Joint Venture Investment1 EXR Investment in JV Acquisition of Operating Stores 2 12,385 — — — — 2 12,385 — — EXR Investment in JV Development and C of O 1 12,138 — — 4 47,007 5 59,145 2 26,634 EXR Investment in Joint Ventures 3 24,523 — — 4 47,007 7 71,530 2 26,634 Total EXR Investment 15 $ 178,331 — $ — 32 $ 385,507 47 $ 563,838 2 $ 26,634 (1) The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. (2) Includes the buyout of a partner's interest in one existing consolidated joint venture in the three months ended March 31, 2025. (3) Includes the buyout of the remaining ownership interest in two existing joint ventures, which own a total of 27 stores. The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all. Other Investment Activity: During the three months ended March 31, 2025, the Company invested $100.0 million in shares of convertible preferred stock of Strategic Storage Growth Trust III, Inc. ("SSGT"). The dividend rate for the convertible preferred stock is 8.85% per annum, and is subject to increase beginning in 2030. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SSGT. Subsequent to quarter end the Company was repaid its $200.0 million convertible preferred stock investment in SmartStop Self Storage REIT, Inc. which had a dividend rate of 7.0% per annum. SmartStop Self Storage REIT, Inc. executed an initial public offering in April of 2025 and repaid the investment as part of the offering. During the quarter, the Company exchanged its 25% ownership interest in 17 properties for its partner's 75% ownership interest in six properties in an existing joint venture formed in 2021. The Company now owns 100% of the six properties and its former partner now owns 100% of the 17 properties which the Company continues to manage. There are no remaining properties in this joint venture and these six properties are excluded from the table above. Property Sales: During the three months ended March 31, 2025, the Company sold 11 operating properties and three parcels of land resulting in a net gain of $35.8 million. Bridge Loans: During the three months ended March 31, 2025, the Company originated $53.2 million in bridge loans and sold bridge loans totaling $27.7 million. Outstanding balances of the Company's bridge loans were approximately $1.4 billion at the end of the quarter. The Company has an additional $192.7 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2025 and 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Property Management: As of March 31, 2025, the Company managed 1,675 stores for third-party owners and 439 stores owned in unconsolidated joint ventures, for a total of 2,114 stores under management. The Company is the largest self-storage management company in the United States. Balance Sheet: During the three months ended March 31, 2025, the Company did not issue any shares on its ATM program, and as of March 31, 2025, the Company had $800.0 million available for issuance. Likewise, the Company did not repurchase any shares of common stock using its stock repurchase program during the quarter, and as of March 31, 2025, the Company had authorization to purchase up to $500.0 million under the program. Subsequent to quarter end, the Company repurchased 68,585 shares of common stock for $8.6 million at an average price of $125.60 per share. In January 2025, the Company re-opened an existing issuance of 5.50% senior unsecured notes due 2030 and issued an additional $350.0 million at a premium of 101.51% with an effective offer rate of 5.17%. The Company used the net proceeds to repay a $245.0 million unsecured note that matured in January 2025. In March 2025, the Company completed a public bond offering issuing $500.0 million aggregate principal amount of 5.4% senior unsecured notes due 2035. As of March 31, 2025, the Company's commercial paper program had total capacity of $1.0 billion, with $580.0 million in outstanding issuances. As of March 31, 2025, the Company's percentage of fixed-rate debt to total debt was 78.8%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 89.5%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.2% and 5.3%, respectively. The combined weighted average interest rate was 4.4% with a weighted average maturity of approximately 4.5 years. Dividends: On March 31, 2025, the Company paid a first quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on March 14, 2025. Outlook: The following table outlines the Company's current and prior quarter Core FFO estimates and assumptions for the year ending December 31, 20251. Ranges for 2025 Annual Assumptions Ranges for 2025 Annual Assumptions Notes (April 29, 2025) (February 25, 2025) Low High Low High Core FFO $8.00 $8.30 $8.00 $8.30 Dilution per share from C of O and value add acquisitions $0.22 $0.22 $0.22 $0.22 Same-store revenue growth (0.75) % 1.25 % (0.75) % 1.25 % Same-store pool of 1,829 stores Same-store expense growth 3.75 % 5.25 % 3.75 % 5.25 % Same-store pool of 1,829 stores Same-store NOI growth (3.00) % 0.25 % (3.00) % 0.25 % Same-store pool of 1,829 stores Weighted average one-month SOFR 4.05 % 4.05 % 4.15 % 4.15 % Net tenant reinsurance income $269,000,000 $272,000,000 $268,000,000 $271,000,000 Management fees and other income $125,000,000 $126,500,000 $125,000,000 $126,500,000 Interest income $152,000,000 $153,500,000 $150,500,000 $152,000,000 Includes interest from bridge loans anddividends from NexPoint preferred investment General and administrative expenses $186,000,000 $188,000,000 $184,000,000 $186,000,000 Includes non-cash compensation Average monthly cash balance $40,000,000 $40,000,000 $45,000,000 $45,000,000 Equity in earnings of real estate ventures $72,000,000 $73,000,000 $89,000,000 $90,000,000 1) Includes reduction in dividends from SmartStoppreferred investments. 2) Adjusted for JV buyouts with NOI now includedin non-same store properties Interest expense $573,000,000 $578,000,000 $570,000,000 $575,000,000 Excludes non-cash interest expense shown below. Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes $46,000,000 $47,000,000 $46,000,000 $47,000,000 Amortization of LSI debt mark-to-market; excludedfrom Core FFO Income Tax Expense $38,000,000 $39,000,000 $38,000,000 $39,000,000 Taxes associated with the Company's taxableREIT subsidiary Acquisitions $600,000,000 $600,000,000 $325,000,000 $325,000,000 Includes wholly-owned acquisitions and the Company'sinvestment in joint ventures Bridge loans outstanding $1,450,000,000 $1,450,000,000 $1,450,000,000 $1,450,000,000 Represents the Company's average retained loan balances for the year Weighted average share count 222,200,000 222,200,000 222,200,000 222,200,000 Assumes redemption of all OP units for common stock (1) A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share." FFO estimates for the year are fully diluted for an estimated average number of shares and 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. Supplemental Financial Information: Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets. Conference Call: The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, April 30, 2025, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN:https://emportal.ink/3DPDVBn A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, 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 investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on April 30, 2025. 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 the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, 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: adverse changes in general economic conditions, the real estate industry and the markets in which we operate; potential liability for uninsured losses and environmental contamination; our ability to recover losses under our insurance policies; the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results; the effect of competition from new and existing stores or other storage alternatives, including increased or unanticipated competition for our properties, which could cause rents and occupancy rates to decline; failure to close pending acquisitions and developments on expected terms, or at all; risks associated with acquisitions, dispositions and development of properties, including increased development costs due to additional regulatory requirements related to climate change and other factors; reductions in asset valuations and related impairment charges; our reliance on information technologies, which are vulnerable to, among other things, attack from computer viruses and malware, hacking, cyberattacks and other unauthorized access or misuse, any of which could adversely affect our business and results; impacts from any outbreak of highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results; economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan; our lack of sole decision-making authority with respect to our joint venture investments; 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; availability of financing and capital, the levels of debt that we maintain and our credit ratings; changes in global financial markets and increases in interest rates; the effect of recent or future changes to U.S. tax laws; and the failure to maintain our REIT status for U.S. federal income tax purposes. 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. 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 income. Net income assumes 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 U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate 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. FFO should not be considered a replacement of net income computed in accordance with GAAP. For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including transition costs, non-cash interest related to the amortization of discount on unsecured senior notes, amortization of other intangibles, net of tax benefit, and impairment of Life Storage trade name. Although the Company's calculation of Core FFO 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 revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The 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: The Company's same-store pool for the periods presented consists of 1,829 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole. No modification has been made to the same-store pool to include any assets acquired from Life Storage. About Extra Space Storage Inc.: Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of March 31, 2025, the Company owned and/or operated 4,099 self-storage stores in 43 states and Washington, D.C. The Company's stores comprise approximately 2.8 million units and approximately 315.0 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States. Extra Space Storage Inc. Condensed Consolidated Balance Sheets (In thousands, except share data) March 31, 2025 December 31, 2024 (Unaudited) Assets: Real estate assets, net $ 24,683,924 $ 24,587,627 Real estate assets - operating lease right-of-use assets 685,393 689,803 Investments in unconsolidated real estate entities 1,320,849 1,332,338 Investments in debt securities and notes receivable 1,675,464 1,550,950 Cash and cash equivalents 119,559 138,222 Other assets, net 508,729 548,986 Total assets $ 28,993,918 $ 28,847,926 Liabilities, Noncontrolling Interests and Equity: Secured notes payable, net $ 999,062 $ 1,010,541 Unsecured term loans, net 1,948,161 2,192,507 Unsecured senior notes, net 8,616,517 7,756,968 Revolving lines of credit and commercial paper 978,000 1,362,000 Operating lease liabilities 704,730 705,845 Cash distributions in unconsolidated real estate ventures 76,097 75,319 Accounts payable and accrued expenses 359,495 346,519 Other liabilities 533,353 538,865 Total liabilities 14,215,415 13,988,564 Commitments and contingencies Noncontrolling Interests and 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, 500,000,000 shares authorized, 212,225,353 and 211,995,510 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 2,122 2,120 Additional paid-in capital 14,851,126 14,831,946 Accumulated other comprehensive income 6,204 12,806 Accumulated deficit (972,665) (899,337) Total Extra Space Storage Inc. stockholders' equity 13,886,787 13,947,535 Noncontrolling interest represented by Preferred Operating Partnership units 53,827 76,092 Noncontrolling interests in Operating Partnership, net and other noncontrolling interests 837,889 835,735 Total noncontrolling interests and equity 14,778,503 14,859,362 Total liabilities, noncontrolling interests and equity $ 28,993,918 $ 28,847,926 Consolidated Statement of Operations for the Three Months Ended March 31, 2025 and 2024 (In thousands, except share and per share data) - Unaudited For the Three Months Ended March 31, 2025 2024 Revenues: Property rental $ 704,380 $ 688,044 Tenant reinsurance 84,712 81,347 Management fees and other income 30,905 30,148 Total revenues 819,997 799,539 Expenses: Property operations 223,582 204,518 Tenant reinsurance 17,116 18,505 General and administrative 45,974 43,722 Depreciation and amortization 180,356 196,966 Total expenses 467,028 463,711 Gain on real estate assets held for sale and sold, net 35,761 — Income from operations 388,730 335,828 Interest expense (142,399) (132,887) Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes (11,313) (10,705) Interest income 38,967 23,573 Income before equity in earnings and dividend income from unconsolidated real estate entities and income tax expense 273,985 215,809 Equity in earnings and dividend income from unconsolidated real estate entities 19,931 15,007 Income tax expense (8,991) (6,742) Net income 284,925 224,074 Net income allocated to Preferred Operating Partnership noncontrolling interests (724) (2,208) Net income allocated to Operating Partnership and other noncontrolling interests (13,326) (8,754) Net income attributable to common stockholders $ 270,875 $ 213,112 Earnings per common share Basic $ 1.28 $ 1.01 Diluted $ 1.28 $ 1.01 Weighted average number of shares Basic 211,850,618 211,283,335 Diluted 212,052,742 220,018,777 Cash dividends paid per common share $ 1.62 $ 1.62 Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three Months Ended March 31, 2025 and 2024 (In thousands) - Unaudited For the Three Months Ended March 31, 2025 2024 Net Income $ 284,925 $ 224,074 Adjusted to exclude: Gain on real estate assets held for sale and sold, net (35,761) — Equity in earnings and dividend income from unconsolidated real estate entities (19,931) (15,007) Interest expense 142,399 132,887 Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 11,313 10,705 Depreciation and amortization 180,356 196,966 Income tax expense 8,991 6,742 General and administrative 45,974 43,722 Management fees, other income and interest income (69,872) (53,721) Net tenant insurance (67,596) (62,842) Non same-store rental revenue (44,644) (30,521) Non same-store operating expense 31,155 19,881 Total same-store net operating income $ 467,309 $ 472,886 Same-store rental revenues 659,736 657,523 Same-store operating expenses 192,427 184,637 Same-store net operating income $ 467,309 $ 472,886 Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share — for the Year Ending December 31, 2025 - Unaudited For the Year Ending December 31, 2025 Low End High End Net income attributable to common stockholders per diluted share $ 4.48 $ 4.78 Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership 0.25 0.25 Net income attributable to common stockholders for diluted computations 4.73 5.03 Adjustments: Real estate depreciation 2.70 2.70 Amortization of intangibles 0.27 0.27 Unconsolidated joint venture real estate depreciation and amortization 0.16 0.16 Gain on real estate transactions (0.16) (0.16) Funds from operations attributable to common stockholders 7.70 8.00 Adjustments: Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 0.21 0.21 Amortization of other intangibles related to the Life Storage Merger, net of tax benefit 0.09 0.09 Core funds from operations attributable to common stockholders $ 8.00 $ 8.30 Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending December 31, 2025 (In thousands) - Unaudited For the Year Ending December 31, 2025 Low High Net Income $ 1,033,250 $ 1,113,500 Adjusted to exclude: Equity in earnings of unconsolidated joint ventures (72,000) (73,000) Interest expense 578,000 573,000 Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 47,000 46,000 Depreciation and amortization 700,500 700,500 Income tax expense 39,000 38,000 General and administrative 188,000 186,000 Management fees and other income (125,000) (126,500) Interest income (152,000) (153,500) Net tenant reinsurance income (269,000) (272,000) Non same-store rental revenues (225,000) (225,000) Non same-store operating expenses 129,000 129,000 Total same-store net operating income1 $ 1,871,750 $ 1,936,000 Same-store rental revenues1 2,645,000 2,698,000 Same-store operating expenses1 773,250 762,000 Total same-store net operating income1 $ 1,871,750 $ 1,936,000 (1) Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2025 same-store pool of 1,829 stores. 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Extra Space Storage Inc. Reports 2025 First Quarter Results

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