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Extra Space Storage Inc. Reports Second Quarter 2010 Results
Achieves FFO of $0.22 per Diluted Share, Ahead of Guidance; Same-Store Properties Post Positive Revenue and Net Operating Income Growth

SALT LAKE CITY, UT, Jul 28, 2010 (MARKETWIRE via COMTEX) --

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 and six months ended June 30, 2010.

Highlights for the Three Months Ended June 30, 2010:

--  Achieved funds from operations ("FFO") of $0.22 per diluted share
    including development dilution of $0.03 per share.
--  Same-store revenue and net operating income ("NOI") increased by 2.3%
    and 2.8%, respectively, when compared to the three months ended
    June 30, 2009.  Same-store revenue and NOI includes tenant reinsurance
    income. For the six months ended June 30, 2010, same-store revenue and
    NOI increased by 0.7% and 1.3%, respectively, when compared to the six
    months ended June 30, 2009.
--  Same-store occupancy as of June 30, 2010 was 86.2% compared to 84.0% as
    of June 30, 2009.
--  Completed the acquisition of four properties, including three former
    third-party management sites.
--  Completed the development of two properties at a total cost of
    approximately $21.3 million.
--  Declared and paid a quarterly cash dividend of $0.10 per common share.

Spencer F. Kirk, Chairman and CEO of Extra Space Storage Inc., stated: "During the second quarter, the improving trend in operating fundamentals continued as we realized positive growth in same-store revenue and net operating income with a year-over-year increase in move-in activity. We remain confident in our operating platform and high-quality portfolio and believe we will see additional growth as fundamentals continue to improve."

FFO Per Share:

The following table outlines the Company's FFO and FFO as adjusted for the three and six months ended June 30, 2010 and 2009. The table also provides a reconciliation to GAAP net income (loss) per diluted share for each period presented (amounts shown in thousands, except share data - unaudited):

                                For the Three Months Ended June 30,
                        --------------------------------------------------
                                  2010                      2009
                        ------------------------  ------------------------
                                     (per share)               (per share)
Net income (loss)
 attributable to common
 stockholders           $     6,180  $      0.07  $    (7,541) $     (0.09)
Adjustments:
  Real estate
   depreciation              11,494         0.13       11,554         0.13
  Amortization of
   intangibles                   94            -          725         0.01
  Joint venture real
   estate depreciation
   and amortization           2,255         0.02        1,414         0.02
  Joint venture loss on
   sale of properties             -            -          188         0.01
  Distributions paid on
   Preferred Operating
   Partnership units         (1,437)       (0.02)      (1,437)       (0.02)
  Income allocated to
   Operating Partnership
   noncontrolling
   interests                  1,762         0.02        1,082         0.01
                        -----------  -----------  -----------  -----------
Funds from operations   $    20,348  $      0.22  $     5,985  $      0.07
                        ===========  ===========  ===========  ===========
Adjustments:
  Non-cash interest
   expense related to
   amortization of
   discount on
   exchangeable senior
   notes                        416         0.01          563         0.01
  Gain on repurchase of
   exchangeable senior
   notes                          -            -       (5,093)       (0.06)
  Unrecovered
   development and
   acquisition costs            142            -       18,801         0.20
  Severance costs                 -            -        1,400         0.02
                        -----------  -----------  -----------  -----------
Funds from operations -
 adjusted               $    20,906  $      0.23  $    21,656  $      0.24
                        ===========  ===========  ===========  ===========
Weighted average number
 of shares - diluted     92,304,831                91,607,503
                                For the Six Months Ended June 30,
                        --------------------------------------------------
                                  2010                      2009
                        ------------------------  ------------------------
                                     (per share)               (per share)
Net income (loss)
 attributable to common
 stockholders           $     9,748  $      0.11  $    20,078  $      0.23
Adjustments:
  Real estate
   depreciation              23,153         0.25       22,984         0.25
  Amortization of
   intangibles                  277            -        1,248         0.01
  Joint venture real
   estate depreciation
   and amortization           4,009         0.04        2,809         0.03
  Joint venture loss on
   sale of properties             -            -          188            -
  Distributions paid on
   Preferred Operating
   Partnership units         (2,875)       (0.03)      (2,875)       (0.03)
  Income allocated to
   Operating Partnership
   noncontrolling
   interests                  3,390         0.04        4,473         0.05
                        -----------  -----------  -----------  -----------
Funds from operations   $    37,702  $      0.41  $    48,905  $      0.54
                        ===========  ===========  ===========  ===========
Adjustments:
  Non-cash interest
   expense related to
   amortization of
   discount on
   exchangeable senior
   notes                        820         0.02        1,404         0.01
  Gain on repurchase of
   exchangeable senior
   notes                          -            -      (27,576)       (0.30)
  Unrecovered
   development and
   acquisition costs            212            -       18,883         0.21
  Severance costs                 -            -        1,400         0.01
                        -----------  -----------  -----------  -----------
Funds from operations -
 adjusted               $    38,734  $      0.43  $    43,016  $      0.47
                        ===========  ===========  ===========  ===========
Weighted average number
 of shares - diluted     92,026,150                91,375,416

FFO and FFO as adjusted include the dilutive impact from lease-up development properties which amounted to $0.03 and $0.05, respectively, for the three and six months ended June 30, 2010.

Operating Results:

Total revenues for the three months ended June 30, 2010 were $68.8 million compared to $69.1 million for the three months ended June 30, 2009. Total expenses for the three months ended June 30, 2010 were $46.0 million compared to $66.7 million for the three months ended June 30, 2009. Interest expense, including non-cash interest charges relating to the Company's exchangeable senior notes, was $16.6 million compared to $16.4 million for the three months ended June 30, 2009. Net income for the three months ended June 30, 2010 was $7.9 million compared to a net loss of $6.7 million for the three months ended June 30, 2009. The net loss in the second quarter of 2009 was due to a $20.2 million charge associated with severance and impairment charges related to the Company's decision to wind down its development program.

For the three months ended June 30, 2010, the Company's top performing markets in terms of revenue growth were Baltimore/Washington D.C., Chicago, Dallas, Denver, New York City and New England. Markets performing below the Company's portfolio average in revenue growth included Atlanta, Las Vegas, Los Angeles, Miami, Phoenix and Tampa.

Total revenues for the six months ended June 30, 2010 were $136.4 million compared to $138.3 million for the six months ended June 30, 2009. Total expenses for the three months ended June 30, 2010 were $92.7 million compared to $114.0 million for the six months ended June 30, 2009. Interest expense, including non-cash interest charges relating to the Company's exchangeable senior notes, was $34.3 million compared to $33.0 million for the six months ended June 30, 2009. Net income for the six months ended June 30, 2010 was $13.1 million compared to $24.1 million for the six months ended June 30, 2009.

Same-Store Property Performance:

For the three months ended June 30, 2010, revenue at the Company's 246 same-store properties increased by 2.3% compared to the three months ended June 30, 2009. Same-store expenses increased by 1.3%, due mainly to increases in property taxes, resulting in a 2.8% increase in same-store NOI compared to the three months ended June 30, 2009. The Company's same-store occupancy finished the quarter at 86.2% compared to 84.0% as of June 30, 2009. Same-store revenue for the six months ended June 30, 2010 compared positively to the same period in 2009 by 0.7%. Same-store expenses for the same period decreased by 0.4% resulting in a 1.3% improvement in same-store NOI compared to the six months ended June 30, 2009.

Balance Sheet:

During the second quarter, the Company continued to enhance its balance sheet by completing several financing transactions. The Company retired approximately $160.4 million in debt during the quarter in two separate transactions, using a mix of cash-on-hand and replacement financing. Of the $160.4 million, $100.0 million was due in August 2010, and $60.4 million was scheduled to mature in June 2014.

Additionally, the Company closed a revolving credit line secured by eight development and lease-up assets with a potential capacity of $45.0 million. The Company currently has a borrowing base of $19.2 million on the line and as these properties open and lease up the borrowing base will increase. The Company also closed five additional loans totaling $54.6 million secured by 16 properties. As of June 30, 2010, the Company's total debt, including notes payable, notes payable to trusts, exchangeable senior notes and lines of credit was $1.2 billion compared to $1.4 billion at June 30, 2009. The Company's percentage of fixed rate debt to total debt was 70.6% as of June 30, 2010. The weighted average interest rate on the Company's debt was 5.6% for fixed-rate debt and 3.5% for variable-rate debt. The combined weighted average interest rate was 5.0% with a weighted average maturity of approximately six years. Total cash as of June 30, 2010 was $28.4 million compared to $132.0 million at June 30, 2009.

Acquisitions and Third-Party Management Activity:

During the quarter, the Company completed the acquisition of four properties located in Georgia and New York, including three from the Company's third-party management program, for a total of $17.2 million. The Company also acquired the minority interests held by a joint-venture partner in two consolidated lease-up properties located in New Jersey.

During the quarter, 18 properties were added to the Company's third-party management program and eight additional properties have been brought under management subsequent to the end of the quarter. A total of 31 properties have been added to the Company's third-party management program in 2010 bringing the total number of properties under management to 148. The Company is the largest self-storage management company in the United States.

Development Projects Completed:

The Company completed two development projects in Baltimore, Maryland and Oakland, California for a total cost of approximately $21.3 million. There are seven projects remaining to be completed in the Company's development pipeline with an estimated $30.6 million of funding required for completion. The Company expects to complete the remainder of these projects by end of the second quarter of 2011.

Dividends:

During the quarter, the Company's board of directors declared a cash dividend of $0.10 per share on the common stock of the Company. The dividend was paid on June 30, 2010 to stockholders of record at the close of business on June 15, 2010.

Outlook:

The Company currently estimates that fully diluted FFO per share for the three months ending September 30, 2010 will be between $0.22 and $0.23. For the year ending December 31, 2010, the Company currently estimates that fully-diluted FFO per share will be between $0.82 and $0.85. Estimates for the three months and year include lease-up dilution and non-cash interest charges related to the Company's exchangeable senior notes. 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
    0.5% and 1.5%.
--  Same-store property expense growth including tenant reinsurance between
    0.0% and 1.0%.
--  Same-store property NOI growth including tenant reinsurance between
    0.0% and 2.0%.
--  Net tenant reinsurance income between $18.0 million and $19.0 million.
--  General and administrative expenses, net of development fees, between
    $43.0 million and $44.0 million, including non-cash compensation
    expense of approximately $4.5 million.
--  Average monthly cash balance of approximately $60.0 million.
--  Equity in earnings of real estate ventures between $6.0 million and
    $7.0 million.
--  Interest expense between $67.0 million and $69.0 million.
--  Weighted average LIBOR of 0.5%.
--  Weighted average number of outstanding shares, including OP units, of
    approximately 92.3 million.
--  Dilution associated with the Company's development program of between
    $9.0 million and $10.0 million.
--  Dilution associated with the Harrison Street Real Estate joint venture
    of between $2.0 million and $2.2 million.
--  Taxes associated with the Company's taxable Real Estate Investment
    Trust ("REIT") subsidiary of between $4.5 million and $5.5 million.
--  Non-cash interest charges associated with the Company's exchangeable
    senior notes of approximately $1.7 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.

Conference Call:

The Company will host a conference call at 1:00 p.m. Eastern Time on Thursday, July 29, 2010 to discuss its financial results. A live webcast of the conference call will be available online on the Company's website at www.extraspace.com in the Investor Relations section. The conference call can also be accessed by dialing 877-407-4018 or 201-689-8471 for international participants. A replay of the call will be available from 4:00 p.m. Eastern Time on July 29, 2010, until midnight Eastern Time on August 12, 2010. The replay dial-in numbers are 877-660-6853 or 201-612-7415 for international callers. To access the telephonic replay, please enter account number 3055 along with the conference ID 353410.

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 self-storage facilities or other
    storage alternatives, which could cause rents and occupancy rates to
    decline;
--  potential liability for uninsured losses and environmental
    contamination;
--  difficulties in our ability to evaluate, finance and integrate acquired
    and developed properties into our existing operations and to lease up
    those properties, which could adversely affect our profitability;
--  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 at reasonable rates, 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 (loss) 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 (loss) 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 (loss) 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 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 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 (loss) 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 and six months ended June 30, 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 Inc. is a leading owner and operator of self-storage properties headquartered in Salt Lake City, Utah. At June 30, 2010, the Company operated or had ownership interests in 789 operating properties, 280 of which were wholly-owned and consolidated, one of which was held in joint venture and consolidated, 368 of which were held in joint ventures and accounted for using the equity method, and 140 of which were managed and in which the Company held no ownership interest. The Company owns and/or operates 789 self-storage properties in 33 states and Washington, D.C. The Company's properties comprise approximately 525,000 units and 57 million square feet of rentable space.

-- Financial Tables Follow --

Same-Store Property Performance for the Three and Six Months Ended June 30,
 2010 - Unaudited
(In thousands, except occupancy and property counts.)
                Three Months Ended             Six Months Ended
                     June 30,                      June 30,
                ------------------  Percent  --------------------  Percent
                  2010      2009    Change     2010       2009     Change
                --------  --------  -------  ---------  ---------  -------
Same-store
 rental and
 tenant
 reinsurance
 revenues       $ 55,840  $ 54,571    2.3%   $ 110,575  $ 109,843    0.7%
Same-store
 operating and
 tenant
 reinsurance
 expenses         19,052    18,801    1.3%      38,812     38,977   (0.4%)
                --------  --------           ---------  ---------
Same-store net
 operating
 income         $ 36,788  $ 35,770    2.8%   $  71,763  $  70,866    1.3%
Non same-store
 rental and
 tenant
 reinsurance
 revenues       $  7,284  $  9,219  (21.0%)  $  14,584  $  17,975  (18.9%)
Non same-store
 operating and
 tenant
 reinsurance
 expenses       $  3,346  $  4,237  (21.0%)  $   6,765  $   8,189  (17.4%)
Total rental
 and tenant
 reinsurance
 revenues       $ 63,124  $ 63,790   (1.0%)  $ 125,159  $ 127,818   (2.1%)
Total operating
 and tenant
 reinsurance
 expenses       $ 22,398  $ 23,038   (2.8%)  $  45,577  $  47,166   (3.4%)
Same-store
 square foot
 occupancy as
 of quarter end     86.2%     84.0%               86.2%      84.0%
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 Months Ending September 30, 2010 and Year Ending
 December 31, 2010 - Unaudited
                      For the Three Months         For the Year Ending
                    Ending September 30, 2010       December 31, 2010
                    --------------------------  --------------------------
                      Low End       High End      Low End       High End
                    ------------  ------------  ------------  ------------
Net income
 attributable to
 common
 stockholders per
 diluted share      $       0.07  $       0.08  $       0.19  $       0.22
  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          0.08          0.22          0.25
Adjustments:
  Real estate
   depreciation             0.12          0.12          0.50          0.50
  Amortization of
   intangibles              0.01          0.01          0.01          0.01
  Joint venture real
   estate
   depreciation and
   amortization             0.02          0.02          0.09          0.09
                    ------------  ------------  ------------  ------------
Diluted funds from
 operations per
 share              $       0.22  $       0.23  $       0.82  $       0.85
                    ============  ============  ============  ============
Extra Space Storage Inc.
Consolidated Balance Sheets
(In thousands, except share data)
                                        June 30, 2010    December 31, 2009
                                      -----------------  -----------------
                                         (unaudited)
Assets:
Real estate assets:
  Net operating real estate assets    $       1,867,245  $       2,015,432
  Real estate under development                  29,079             34,427
                                      -----------------  -----------------
    Net real estate assets                    1,896,324          2,049,859
Investments in real estate ventures             152,976            130,449
Cash and cash equivalents                        28,354            131,950
Restricted cash                                  33,699             39,208
Receivables from related parties and
 affiliated real estate joint
 ventures                                        20,589              5,114
Other assets, net                                47,173             50,976
                                      -----------------  -----------------
      Total assets                    $       2,179,115  $       2,407,556
                                      =================  =================
Liabilities, Noncontrolling Interests
 and Equity:
Notes payable                         $         837,166  $       1,099,593
Notes payable to trusts                         119,590            119,590
Exchangeable senior notes                        87,663             87,663
Discount on exchangeable senior notes            (3,049)            (3,869)
Lines of credit                                 140,000            100,000
Accounts payable and accrued expenses            32,193             33,386
Other liabilities                                24,783             24,974
                                      -----------------  -----------------
      Total liabilities                       1,238,346          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,
   87,481,903 and 86,721,841 shares
   issued and outstanding at June 30,
   2010 and December 31, 2009,
   respectively                                     875                867
  Paid-in capital                             1,144,433          1,138,243
  Accumulated other comprehensive
   deficit                                       (4,689)            (1,056)
  Accumulated deficit                          (261,582)          (253,875)
                                      -----------------  -----------------
    Total Extra Space Storage Inc.
     stockholders' equity                       879,037            884,179
  Noncontrolling interest represented
   by Preferred Operating Partnership
   units, net of $100,000 note
   receivable                                    29,757             29,886
  Noncontrolling interests in
   Operating Partnership                         30,909             31,381
  Other noncontrolling interests                  1,066                773
                                      -----------------  -----------------
      Total noncontrolling interests
       and equity                               940,769            946,219
                                      -----------------  -----------------
      Total liabilities, non-
       controlling interests and
       equity                         $       2,179,115  $       2,407,556
                                      =================  =================
Consolidated Statement of Operations for the Three Months Ended June 30,
 2010 and 2009 - Unaudited
(In thousands, except share and per share data)
                                                      Three Months Ended
                                                           June 30,
                                                    ----------------------
                                                       2010        2009
                                                    ----------  ----------
Revenues:
  Property rental                                   $   56,786  $   58,705
  Management and franchise fees                          5,653       5,275
  Tenant reinsurance                                     6,338       5,085
                                                    ----------  ----------
    Total revenues                                      68,777      69,065
                                                    ----------  ----------
Expenses:
  Property operations                                   20,941      21,567
  Tenant reinsurance                                     1,457       1,471
  Unrecovered development and acquisition costs            142      18,801
  Severance costs                                            -       1,400
  General and administrative                            11,229      10,612
  Depreciation and amortization                         12,202      12,840
                                                    ----------  ----------
    Total expenses                                      45,971      66,691
                                                    ----------  ----------
Income from operations                                  22,806       2,374
Interest expense                                       (16,233)    (15,816)
Non-cash interest expense related to amortization
 of discount on exchangeable senior notes                 (416)       (563)
Interest income                                            211         321
Interest income on note receivable from Preferred
 Operating Partnership unit holder                       1,212       1,212
Gain on repurchase of exchangeable senior notes              -       5,093
                                                    ----------  ----------
Income (loss) before equity in earnings of real
 estate ventures and income tax expense                  7,580      (7,379)
Equity in earnings of real estate ventures               1,559       1,641
Income tax expense                                      (1,214)       (943)
                                                    ----------  ----------
Net income (loss)                                        7,925      (6,681)
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                   (1,507)     (1,369)
Net (income) loss allocated to Operating
 Partnership and other noncontrolling interests           (238)        509
                                                    ----------  ----------
Net income (loss) attributable to common
 stockholders                                       $    6,180  $   (7,541)
                                                    ==========  ==========
Net income (loss) per common share
  Basic                                             $     0.07  $    (0.09)
  Diluted                                           $     0.07  $    (0.09)
Weighted average number of shares
  Basic                                             87,367,967  86,397,618
  Diluted                                           92,304,831  91,607,503
Cash dividends paid per common share                $     0.10  $        -
Consolidated Statement of Operations for the Six Months Ended June 30,
 2010 and 2009 - Unaudited
(In thousands, except share and per share data)
                                                Six Months Ended June 30,
                                                --------------------------
                                                    2010          2009
                                                ------------  ------------
Revenues:
  Property rental                               $    112,929  $    118,114
  Management and franchise fees                       11,205        10,494
  Tenant reinsurance                                  12,230         9,704
                                                ------------  ------------
    Total revenues                                   136,364       138,312
Expenses:
  Property operations                                 42,897        44,434
  Tenant reinsurance                                   2,680         2,732
  Unrecovered development and acquisition costs          212        18,883
  Severance costs                                          -         1,400
  General and administrative                          22,285        21,203
  Depreciation and amortization                       24,621        25,363
                                                ------------  ------------
    Total expenses                                    92,695       114,015
Income from operations                                43,669        24,297
Interest expense                                     (33,507)      (31,611)
Non-cash interest expense related to
 amortization of discount on exchangeable
 senior notes                                           (820)       (1,404)
Interest income                                          536           853
Interest income on note receivable from
 Preferred Operating Partnership unit holder           2,425         2,425
Gain on repurchase of exchangeable senior notes            -        27,576
                                                ------------  ------------
Income before equity in earnings of real estate
 ventures and income tax expense                      12,303        22,136
Equity in earnings of real estate ventures             3,060         3,536
Income tax expense                                    (2,259)       (1,591)
                                                ------------  ------------
Net income                                            13,104        24,081
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                 (2,986)       (3,175)
Net income allocated to Operating Partnership
 and other noncontrolling interests                     (370)         (828)
                                                ------------  ------------
Net income attributable to common stockholders  $      9,748  $     20,078
                                                ============  ============
Net income per common share
  Basic                                         $       0.11  $       0.23
  Diluted                                       $       0.11  $       0.23
Weighted average number of shares
  Basic                                           87,122,064    86,170,270
  Diluted                                         92,026,150    91,375,416
Cash dividends paid per common share            $       0.20  $       0.25

For Information:

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

Extra Space Storage Inc.
PHONE (801) 562-5556
FAX (801) 562-5579
2795 East Cottonwood Parkway, Suite 400
Salt Lake City, Utah 84121
www.extraspace.com


SOURCE: Extra Space Storage Inc.

http://www.extraspace.com