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Extra Space Storage Inc. Reports 2011 Fourth Quarter and Year End Results
Achieves $0.35 FFO per Share for the Quarter and $1.20 for the Year; Same-Store NOI Increases 9.3% for the Quarter and 7.6% for the Year; Year-Over-Year Same-Store Occupancy Increases 310 Basis Points; First Quarter 2012 Dividend Increases by 42.9%

SALT LAKE CITY, UT, Feb 21, 2012 (MARKETWIRE via COMTEX) --Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage properties in the United States, announced operating results for the three months and year ended December 31, 2011.

Highlights for the Three Months Ended December 31, 2011:

--  Achieved funds from operations ("FFO") of $0.35 per diluted share
    including lease up dilution of $0.01 per share, resulting in 34.6%
    quarter-over-quarter growth compared to 2010.


--  Increased same-store revenue and net operating income ("NOI") by 5.8%
    and 9.3%, respectively, as compared to the same period in 2010.


--  Grew same-store occupancy by 310 basis points to 87.8% at December 31,
    2011, compared to 84.7% as of December 31, 2010.


--  Acquired 28 properties for a purchase price of $189.9 million.


--  Increased the Company's third-party management program to 185
    properties.


--  Paid a quarterly dividend of $0.14 per share.

Spencer F. Kirk, Chairman and CEO of Extra Space Storage Inc., commented: "With strong property performance and robust acquisition activity we produced 32% annual growth in our FFO per share over 2010 and delivered an excellent return to our stockholders. We are intensely focused on the fundamentals that drive our business. Strong execution on the basics and continued innovation will drive our success and allow us to capitalize on an environment marked by higher occupancy, stronger pricing and limited supply."

FFO Per Share:

The following table outlines the Company's FFO and FFO as adjusted for the three months and years ended December 31, 2011 and 2010. The tables also provide a reconciliation to GAAP net income per diluted share for each period presented (amounts shown in thousands, except share data - unaudited):



                                  For the Three Months Ended December 31,
                               --------------------------------------------
                                        2011                   2010
                               ---------------------  ---------------------
                                              (per                   (per
                                             share)                 share)
Net income attributable to
 common stockholders           $    16,278  $   0.17  $     8,916  $   0.10
Adjustments:
  Real estate depreciation          14,647      0.14       12,195      0.13
  Amortization of intangibles        1,004      0.01          251         -
  Joint venture real estate
   depreciation and
   amortization                      1,820      0.02        2,088      0.02
  Joint venture loss on sale
   of properties                         3         -            -         -
  Distributions paid on
   Preferred Operating
   Partnership units                (1,437)    (0.01)      (1,437)    (0.01)
  Income allocated to
   Operating Partnership
   noncontrolling interests          2,132      0.02        1,879      0.02
                               -----------  --------  -----------  --------
Funds from operations          $    34,447  $   0.35  $    23,892  $   0.26
                               ===========  ========  ===========  ========

Adjustments:
  Non-cash interest expense
   related to amortization of
   discount on exchangeable
   senior notes                        453         -          428         -
  Unrecovered development and
   acquisition costs                   731      0.01          812      0.01
  Loss on sublease                       -         -            -         -
  Net effect of prior periods
   asset management fee from
   joint venture                    (3,319)    (0.03)           -         -
  Severance costs                    2,137      0.02            -         -
                               -----------  --------  -----------  --------
Funds from operations -
 adjusted                      $    34,449  $   0.35  $    25,132  $   0.27
                               ===========  ========  ===========  ========

Weighted average number of
 shares - diluted               99,085,766             92,348,254


                                      For the Year Ended December 31,
                               --------------------------------------------
                                        2011                   2010
                               ---------------------  ---------------------
                                              (per                   (per
                                             share)                 share)
Net income attributable to
 common stockholders           $    50,449  $   0.54  $    26,331      0.30
Adjustments:
  Real estate depreciation          52,647      0.54       47,063      0.50
  Amortization of intangibles        2,375      0.02          650         -
  Joint venture real estate
   depreciation and
   amortization                      7,931      0.08        8,269      0.09
  Joint venture loss on sale
   of properties                       185         -           65         -
  Distributions paid on
   Preferred Operating
   Partnership units                (5,750)    (0.06)      (5,750)    (0.06)
  Income allocated to
   Operating Partnership
   noncontrolling interests          7,978      0.08        7,096      0.08
                               -----------  --------  -----------  --------
Funds from operations          $   115,815  $   1.20  $    83,724  $   0.91
                               ===========  ========  ===========  ========

Adjustments:
  Non-cash interest expense
   related to amortization of
   discount on exchangeable
   senior notes                      1,761      0.01        1,664      0.02
  Unrecovered development and
   acquisition costs                 2,896      0.03        1,235      0.01
  Loss on sublease                       -         -        2,000      0.02
  Net effect of prior periods
   asset management fee from
   joint venture                    (3,319)    (0.03)           -         -
  Severance costs                    2,137      0.02            -         -
                               -----------  --------  -----------  --------
Funds from operations -
 adjusted                      $   119,290  $   1.23  $    88,623  $   0.96
                               ===========  ========  ===========  ========

Weighted average number of
 shares - diluted               96,683,508             92,050,453


FFO and FFO as adjusted include the dilutive impact from lease-up properties of $0.01 and $0.07 per diluted share, respectively, for the three months and year ended December 31, 2011, compared to $0.03 and $0.12 for the same periods in 2010.

Included in operating results for the three months and year ended December 31, 2011, is a severance charge of $0.02 per diluted share related to the departure of Kent W. Christensen, Chief Financial Officer, in December 2011. Included in the general and administrative expenses for the three months and year ended December 31, 2011, is a non-recurring expense of $0.02 per diluted share related to litigation matters. Included in management and franchise fees is joint-venture asset management fee income of $0.04 per diluted share related to prior periods.

Operating results for the three months and year ended December 31, 2010, included a one-time charge of $0.02 per diluted share related to the bankruptcy of a tenant sub-leasing office space in Memphis, TN from the Company under a long-term lease assumed in the 2005 Storage USA acquisition.

Operating Results and Same-Store Property Performance:

The following table outlines the Company's same-store property performance for the three months and years ended December 31, 2011 and 2010 (amounts shown in thousands, except property count data - unaudited):


                                            For the Three Months
                                             Ended December 31,
                                            --------------------
                                                                   Percent
                                               2011       2010     Change
                                            ---------  ---------  --------
Same-store rental and tenant reinsurance
 revenues                                   $  61,395  $  58,026       5.8%
Same-store operating and tenant reinsurance
 expenses                                      19,387     19,593      (1.1%)
                                            ---------  ---------  --------
Same-store net operating income             $  42,008  $  38,433       9.3%

Non same-store rental and tenant
 reinsurance revenues                       $  20,357  $   9,062     124.6%
Non same-store operating and tenant
 reinsurance expenses                       $   7,318  $   4,430      65.2%

Total rental and tenant reinsurance
 revenues                                   $  81,752  $  67,088      21.9%
Total operating and tenant reinsurance
 expenses                                   $  26,705  $  24,023      11.2%

Same-store square foot occupancy as of
 quarter end                                     87.8%      84.7%

Properties included in same-store                 253        253


                                             For the Year Ended
                                                December 31,
                                            --------------------
                                                                   Percent
                                               2011       2010     Change
                                            ---------  ---------  --------
Same-store rental and tenant reinsurance
 revenues                                   $ 241,001  $ 229,785       4.9%
Same-store operating and tenant reinsurance
 expenses                                      78,892     79,098      (0.3%)
                                            ---------  ---------  --------
Same-store net operating income               162,109    150,687       7.6%

Non same-store rental and tenant
 reinsurance revenues                          58,905     28,590     106.0%
Non same-store operating and tenant
 reinsurance expenses                          22,732     13,572      67.5%

Total rental and tenant reinsurance
 revenues                                     299,906    258,375      16.1%
Total operating and tenant reinsurance
 expenses                                     101,624     92,670       9.7%

Same-store square foot occupancy as of
 quarter end                                     87.8%      84.7%

Properties included in same-store                 253        253

Occupancy increased 310 basis points over the prior year. Street rates to new tenants increased by approximately 4.5% while discounts decreased 1.0% during the quarter. Expenses for the three months ended December 31, 2011, were lower primarily due to lower utility costs, a decrease in advertising and lower snow removal expenses.

The Company's major markets with revenue growth above the portfolio average for the three months ended December 31, 2011, were Boston, New Jersey, New York, Philadelphia, San Francisco and Washington, D.C. Markets performing below the Company's portfolio average included Houston, Las Vegas and San Diego.

Acquisition and Third-Party Management Activity:

During the quarter, the Company purchased 28 properties for approximately $189.9 million. The properties are located in California, Florida, Illinois, Massachusetts, New Jersey, New York and Rhode Island. Of the 28 properties purchased, 19 came from a previously announced portfolio acquisition located in California. An additional six properties were added as the Company purchased its partner's 90% equity interest in an existing joint venture.

During the quarter, the Company increased its third-party management program by seven properties. As of December 31, 2011, the Company managed a total of 185 properties for third-party owners. Including 341 properties owned in joint ventures, the Company has a total of 526 properties under management. The Company continues to be the largest self-storage management company in the United States.

Balance Sheet:

As of December 31, 2011, the Company's percentage of fixed-rate debt to total debt was 75.5%. The weighted average interest rate on the Company's debt was 5.3% for fixed-rate debt and 2.7% for variable-rate debt. The combined weighted average interest rate was 4.7% with a weighted average maturity of approximately 5.5 years.

Dividends:

The Company paid a fourth quarter dividend of $0.14 per share on the common stock of the Company on December 31, 2011, to stockholders of record at the close of business on December 9, 2011.

On February 16, 2012, the Company's Board of Directors declared a first quarter 2012 dividend of $0.20 per share on the common stock of the Company, an increase of 42.9% over the fourth quarter of 2011. The dividend will be paid on March 30, 2012 to stockholders of record at the close of business on March 15, 2012.

Outlook:

The Company currently estimates that FFO per diluted share for the quarter ending March 31, 2012, will be between $0.31 and $0.33 and will be between $1.37 and $1.45 for the full year ending December 31, 2012. 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 3.5% and 5.0%.


--  Same-store property expense increase, including tenant reinsurance,
    between 3.0% and 4.0%.


--  Same-store property NOI growth, including tenant reinsurance, between
    3.0% and 6.0%.




--  Net tenant reinsurance income between $25.0 million and $26.0
    million.


--  General and administrative expenses between $51.0 million and $53.0
    million, including non-cash compensation expense of approximately $5.5
    million.


--  Average monthly cash balance of approximately $15.0 million.


--  Equity in earnings of real estate ventures between $9.0 million and
    $10.0 million.


--  Acquisition activity of approximately $100.0 million.


--  Interest expense between $70.0 million and $72.0 million.


--  Weighted average LIBOR of 0.5%.


--  Weighted average number of outstanding shares, including OP units, of
    approximately 99.8 million.


--  Dilution associated with the Company's lease-up properties of
    approximately $2.0 million.


--  Taxes associated with the Company's taxable Real Estate Investment
    Trust ("REIT") subsidiary between $2.5 million and $3.5 million,
    inclusive of approximately $6.0 million in solar tax credits.


--  Unrecovered development and acquisition costs of approximately $1.2
    million.


--  Non-cash interest charges associated with exchangeable senior notes of
    approximately $0.5 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 "Financial & Stock Info," then on "Quarterly Earnings" on the left of the page. 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 Wednesday, February 22, 2012, to discuss its financial results. To participate in the conference call, please dial 866-700-6979 or 617-213-8836 for international participants, conference ID: 11461378. The conference call will also be available on the Company's website at www.extraspace.com. To listen to a live broadcast, 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 Company's website in the Investor Relations section.

A replay of the call will also be available by telephone, from 3:00 p.m. Eastern Time on February 22, 2012, until midnight Eastern Time on March 22, 2012. The replay dial-in numbers are 888-286-8010 or 617-801-6888 for international callers, conference ID: 84857761.

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, the real estate industry and
    the markets in which we operate;


--  the effect of competition from new and existing self-storage
    facilities or other storage alternatives, which could cause rents and
    occupancy rates to decline;


--  difficulties in our ability to evaluate, finance, complete and
    integrate acquisitions and developments successfully and to lease up
    those properties, which could adversely affect our profitability;


--  potential liability for uninsured losses and environmental
    contamination;


--  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 or obtaining credit at reasonable rates or at all,
    which could impede our ability to grow;


--  increased interest rates and operating costs;


--  reductions in asset valuations and related impairment charges;


--  the failure to maintain our REIT status for federal income tax
    purposes;


--  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 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 computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating properties and impairment write downs of depreciable real estate assets, 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 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 revenues and expenses, unrecovered acquisition and development costs and non-cash interest charges related to ASC 470-20. 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 revenues and expenses, the costs related to acquiring properties and non-cash charges related to ASC 470-20, 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 and 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 months and year ended December 31, 2011, consisted of 253 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., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT that owns and/or operates 882 self-storage properties in 34 states and Washington, D.C. The Company's properties comprise approximately 585,000 units and approximately 64 million square feet of rentable space, offering customers a wide selection of conveniently located and secure storage solutions across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage properties in the United States and is the largest self-storage management company in the United States.


Extra Space Storage Inc.
Consolidated Balance Sheets
(In thousands, except share data)
                                                 December 31,  December 31,
                                                     2011          2010
                                                 ------------  ------------

Assets:
Real estate assets:
  Net operating real estate assets               $  2,254,429  $  1,935,319
  Real estate under development                         9,366        37,083
                                                 ------------  ------------
    Net real estate assets                          2,263,795     1,972,402

Investments in real estate ventures                   130,410       140,560
Cash and cash equivalents                              26,484        46,750
Restricted cash                                        25,768        30,498
Receivables from related parties and affiliated
 real estate joint ventures                            18,517        10,061
Other assets, net                                      51,276        49,549
                                                 ------------  ------------
      Total assets                               $  2,516,250  $  2,249,820
                                                 ============  ============

Liabilities, Noncontrolling Interests and
 Equity:
Notes payable                                    $    937,001  $    871,403
Notes payable to trusts                               119,590       119,590
Exchangeable senior notes                              87,663        87,663
Premium (discount) on notes payable                     4,402        (2,205)
Lines of credit                                       215,000       170,467
Accounts payable and accrued expenses                  45,079        35,242
Other liabilities                                      33,754        28,589
                                                 ------------  ------------
      Total liabilities                             1,442,489     1,310,749
                                                 ------------  ------------

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, 94,783,590 and 87,587,322
   shares issued and outstanding at December 31,
   2011 and December 31, 2010, respectively               948           876
  Paid-in capital                                   1,290,021     1,148,820
  Accumulated other comprehensive deficit              (7,936)       (5,787)
  Accumulated deficit                                (264,086)     (262,508)
                                                 ------------  ------------
    Total Extra Space Storage Inc. stockholders'
     equity                                         1,018,947       881,401
  Noncontrolling interest represented by
   Preferred Operating Partnership units, net of
   $100,000 note receivable                            29,695        29,733
  Noncontrolling interests in Operating
   Partnership                                         24,018        26,803
  Other noncontrolling interests                        1,101         1,134
                                                 ------------  ------------
      Total noncontrolling interests and equity     1,073,761       939,071
                                                 ------------  ------------
      Total liabilities, noncontrolling
       interests and equity                      $  2,516,250  $  2,249,820
                                                 ============  ============



Consolidated Statement of Operations for the Three Months Ended December
 31, 2011 and 2010 -- Unaudited
(In thousands, except share data)
                                                     Three Months Ended
                                                        December 31,
                                                 --------------------------
                                                     2011          2010
                                                 ------------  ------------
Revenues:
  Property rental                                $     73,460  $     60,186
  Management and franchise fees                        11,460         6,066
  Tenant reinsurance                                    8,292         6,902
                                                 ------------  ------------
    Total revenues                                     93,212        73,154
                                                 ------------  ------------

Expenses:
  Property operations                                  25,155        21,934
  Tenant reinsurance                                    1,550         2,089
  Unrecovered development and acquisition costs           731           812
  Severance costs                                       2,137            --
  General and administrative                           13,287        11,525
  Depreciation and amortization                        15,973        13,209
                                                 ------------  ------------
      Total expenses                                   58,833        49,569
                                                 ------------  ------------

Income from operations                                 34,379        23,585

Interest expense                                      (17,870)      (14,907)
Non-cash interest expense related to
 amortization of discount on exchangeable senior
 notes                                                   (453)         (428)
Interest income                                           471           184
Interest income on note receivable from
 Preferred Operating Partnership unit holder            1,212         1,212
                                                 ------------  ------------
Income before equity in earnings of real estate
 ventures and income tax expense                       17,739         9,646

Equity in earnings of real estate ventures              1,227         1,957
Income tax expense                                       (552)         (815)
                                                 ------------  ------------
Net income                                             18,414        10,788
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                  (1,607)       (1,538)
Net income allocated to Operating Partnership
 and other noncontrolling interests                      (529)         (334)
                                                 ------------  ------------
Net income attributable to common stockholders   $     16,278  $      8,916
                                                 ============  ============

Net income per common share
  Basic                                          $       0.17  $       0.10
  Diluted                                        $       0.17  $       0.10

Weighted average number of shares
  Basic                                            94,530,814    87,565,487
  Diluted                                          99,085,766    92,348,254

Cash dividends paid per common share             $       0.14  $       0.10



Consolidated Statement of Operations for the Years Ended December 31, 2011
 and 2010
(In thousands, except share data)

                                                     For the Year Ended
                                                        December 31,
                                                 --------------------------
                                                     2011          2010
                                                 ------------  ------------
Revenues:
  Property rental                                $    268,725  $    232,447
  Management and franchise fees                        29,924        23,122
  Tenant reinsurance                                   31,181        25,928
                                                 ------------  ------------
    Total revenues                                    329,830       281,497

Expenses:
  Property operations                                  95,481        86,165
  Tenant reinsurance                                    6,143         6,505
  Unrecovered development and acquisition costs         2,896         1,235
  Loss on sublease                                         --         2,000
  Severance costs                                       2,137            --
  General and administrative                           49,683        44,428
  Depreciation and amortization                        58,014        50,349
                                                 ------------  ------------
     Total expenses                                   214,354       190,682

Income from operations                                115,476        90,815

Interest expense                                      (67,301)      (64,116)
Non-cash interest expense related to
 amortization of discount on exchangeable senior
 notes                                                 (1,761)       (1,664)
Interest income                                         1,027           898
Interest income on note receivable from
 Preferred Operating Partnership unit holder            4,850         4,850
                                                 ------------  ------------
Income before equity in earnings of real estate
 ventures and income tax expense                       52,291        30,783

Equity in earnings of real estate ventures              7,287         6,753
Income tax expense                                     (1,155)       (4,162)
                                                 ------------  ------------
Net income                                             58,423        33,374
Net income allocated to Preferred Operating
 Partnership noncontrolling interests                  (6,289)       (6,048)
Net income allocated to Operating Partnership
 and other noncontrolling interests                    (1,685)         (995)
                                                 ------------  ------------
Net income attributable to common stockholders   $     50,449  $     26,331
                                                 ============  ============

Net income per common share
  Basic                                          $       0.55  $       0.30
  Diluted                                        $       0.54  $       0.30

Weighted average number of shares
  Basic                                            92,097,008    87,324,104
  Diluted                                          96,683,508    92,050,453

Cash dividends paid per common share             $       0.56  $       0.40



Reconciliation of the Range of Estimated Fully Diluted Net Income Per Share
 to Estimated Fully Diluted FFO Per Share -- for the Three Months Ending
 March 31, 2012 and the Year Ending December 31, 2012 -- Unaudited

                                 For the Three Months
                                        Ending          For the Year Ending
                                    March 31, 2012       December 31, 2012
                                 --------------------  --------------------
                                  Low End    High End   Low End    High End
                                 ---------  ---------  ---------  ---------
Net income attributable to
 common stockholders per diluted
 share                           $    0.13  $    0.15  $    0.63  $    0.71
  Income allocated to
   noncontrolling interest -
   Preferred Operating
   Partnership and Operating
   Partnership                        0.02       0.02       0.10       0.10
  Fixed component of income
   allocated to non-controlling
   interest - Preferred
   Operating Partnership             (0.01)     (0.01)     (0.06)     (0.06)
                                 ---------  ---------  ---------  ---------
Net income for diluted
 computations                         0.14       0.16       0.67       0.75

Adjustments:
  Real estate depreciation            0.14       0.14       0.59       0.59
  Amortization of intangibles         0.01       0.01       0.03       0.03
  Joint venture real estate
   depreciation and amortization      0.02       0.02       0.08       0.08
                                 ---------  ---------  ---------  ---------
Diluted funds from operations
 per share                       $    0.31  $    0.33  $    1.37  $    1.45
                                 =========  =========  =========  =========


SOURCE: Extra Space Storage Inc.