Secures Additional FinancingSALT LAKE CITY, UT, Sep 30, 2009 (MARKETWIRE via COMTEX) -- Extra Space Storage Inc. ("Extra Space" or the "Company") (NYSE:
EXR) announced today that it has amended the terms of its previously
announced joint venture (the "JV") with an affiliate of Harrison
Street Real Estate Capital, LLC ("HSRE").
Under the amended terms, HSRE will contribute approximately $15.0
million in cash to the JV in return for a 50.0% ownership interest.
The Company will contribute 19 wholly owned properties and will
receive approximately $15.0 million in cash and a 50.0% ownership
interest in the JV. The JV will assume approximately $101.0 million
of debt which is secured by the properties. The properties are
located in California, Florida, Nevada, Ohio, Pennsylvania,
Tennessee, Texas and Virginia.
The Company will continue to operate the properties. The joint
venture transaction is subject to customary conditions and the debt
assumption and is currently anticipated to close by the end of the
fourth quarter of 2009.
Separately, the Company announced that in the third quarter it has
obtained $114.1 million of financing consisting of four loans secured
by 20 operating properties totaling $93.7 million and three
construction loans totaling $20.4 million. For the year, the Company
has obtained approximately $277.7 million in financing to date.
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," "plans," "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.
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.
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:
-- the possibility that the joint venture transaction may not
close on the terms described in this release, or at all, or that the
expected benefits from the transaction may not be realized;
-- 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;
-- recent disruptions in credit and financial markets and
resulting difficulties in raising capital at reasonable rates, which could
impede our ability to grow;
-- economic uncertainty due to the impact of war or terrorism,
which could adversely affect our business plan;
-- the successful realignment of our executive management team;
and
-- our ability to attract and retain qualified personnel and
management members.
About Extra Space Storage Inc.
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a
fully integrated, self-administered and self-managed real estate
investment trust that owns and/or operates 738 self-storage
properties in 33 states and Washington, D.C. The Company's properties
comprise approximately 495,000 units and over 53 million square feet
of rentable space. The Company is the second largest owner and/or
operator of self-storage properties in the United States.
About Harrison Street Real Estate Capital LLC.
Harrison Street's model is to invest in areas of the real estate
market in which tenant demand is driven from education, healthcare or
storage related activities. These sectors principally include
self-storage, student housing, senior housing/assisted living, and
medical office/healthcare. Harrison Street on behalf of Harrison
Street Real Estate Partners I, LP and Harrison Street Real Estate
Partners II, LP have acquired or is in the process of developing over
140+ properties worth greater than $1.8 billion. As of September 30,
2009, Harrison Street has acquired or has under development
throughout 26 states in U.S. over 3,900 senior housing units, 44,000
storage units, 12,000 student housing beds, 2,100 dry and wet boat
storage and 920,000 square feet of medical office space.
For Information:
James Overturf
Extra Space Storage Inc.
(801) 365-4501
SOURCE: Extra Space Storage Inc.
