View Filing Data

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Real estate assets:
Net operating real estate assets	$ 2,038,827	$ 1,935,319
Real estate under development	6,800	37,083
Net real estate assets	2,045,627	1,972,402
Investments in real estate ventures	137,997	140,560
Cash and cash equivalents	35,187	46,750
Restricted cash	32,700	30,498
Receivables from related parties and affiliated real estate joint ventures	8,490	10,061
Other assets, net	50,856	48,197
Total assets	2,310,857	2,248,468
Liabilities, Noncontrolling Interests and Equity:
Notes payable	855,323	871,403
Notes payable to trusts	119,590	119,590
Exchangeable senior notes	87,663	87,663
Discount on exchangeable senior notes	(1,337)	(2,205)
Lines of credit	129,000	170,467
Accounts payable and accrued expenses	32,712	34,210
Other liabilities	28,962	28,269
Total liabilities	1,251,913	1,309,397
Commitments and contingencies
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, 94,243,303 and 87,587,322 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively	942	876
Paid-in capital	1,278,939	1,148,820
Accumulated other comprehensive deficit	(6,436)	(5,787)
Accumulated deficit	(269,173)	(262,508)
Total Extra Space Storage Inc. stockholders' equity	1,004,272	881,401
Noncontrolling interest represented by Preferred Operating Partnership units, net of $100,000 note receivable	29,658	29,733
Noncontrolling interests in Operating Partnership	23,900	26,803
Other noncontrolling interests	1,114	1,134
Total noncontrolling interests and equity	1,058,944	939,071
Total liabilities, noncontrolling interests and equity	$ 2,310,857	$ 2,248,468

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	94,243,303	87,587,322
Common stock, shares outstanding	94,243,303	87,587,322
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units (in dollars)	$ 100,000	$ 100,000

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues:
Property rental	$ 64,300	$ 56,786	$ 125,790	$ 112,929
Management and franchise fees	6,144	5,653	12,111	11,205
Tenant reinsurance	7,596	6,338	14,620	12,230
Total revenues	78,040	68,777	152,521	136,364
Expenses:
Property operations	22,712	20,941	46,056	42,897
Tenant reinsurance	1,382	1,457	2,997	2,680
Unrecovered development and acquisition costs	1,570	142	1,819	212
General and administrative	12,432	11,229	24,090	22,285
Depreciation and amortization	14,092	12,202	27,677	24,621
Total expenses	52,188	45,971	102,639	92,695
Income from operations	25,852	22,806	49,882	43,669
Interest expense	(16,261)	(16,233)	(32,675)	(33,507)
Non-cash interest expense related to amortization of discount on exchangeable senior notes	(440)	(416)	(868)	(820)
Interest income	189	211	371	536
Interest income on note receivable from Preferred Operating Partnership unit holder	1,212	1,212	2,425	2,425
Income before equity in earnings of real estate ventures and income tax expense	10,552	7,580	19,135	12,303
Equity in earnings of real estate ventures	2,376	1,559	4,187	3,060
Income tax expense	(411)	(1,214)	(665)	(2,259)
Net income	12,517	7,925	22,657	13,104
Net income allocated to Preferred Operating Partnership noncontrolling interests	(1,552)	(1,507)	(3,084)	(2,986)
Net income allocated to Operating Partnership and other noncontrolling interests	(356)	(238)	(663)	(370)
Net income attributable to common stockholders	$ 10,609	$ 6,180	$ 18,910	$ 9,748
Net income per common share
Basic (in dollars per share)	$ 0.12	$ 0.07	$ 0.21	$ 0.11
Diluted (in dollars per share)	$ 0.12	$ 0.07	$ 0.21	$ 0.11
Weighted average number of shares
Basic (in shares)	91,439,042	87,367,967	89,733,518	87,122,064
Diluted (in shares)	96,010,848	92,304,831	94,336,141	92,026,150
Cash dividends paid per common share (in dollars per share)	$ 0.14	$ 0.10	$ 0.28	$ 0.20

Condensed Consolidated Statement of Equity - 6 months ended Jun. 30, 2011 - USD ($) $ in Thousands	Total	Preferred Operating Partnership	Operating Partnership	Other Noncontrolling Interests	Common Stock	Paid-in Capital	Accumulated Other Comprehensive Deficit	Accumulated Deficit	Comprehensive Income
Balances at Dec. 31, 2010	$ 939,071	$ 29,733	$ 26,803	$ 1,134	$ 876	$ 1,148,820	$ (5,787)	$ (262,508)
Balances (in shares) at Dec. 31, 2010	87,587,322				87,587,322
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon the exercise of options	$ 10,505				$ 8	10,497
Issuance of common stock upon the exercise of options (in shares)					816,806
Restricted stock grants issued	2				$ 2
Restricted stock grants issued (in shares)					220,630
Restricted stock grants cancelled (in shares)					(10,519)
Issuance of common stock, net of offering costs	112,532				$ 53	112,479
Issuance of common stock, net of offering costs (in shares)					5,335,423
Compensation expense related to stock-based awards	2,711					2,711
Redemption of Operating Partnership units for common stock			(2,344)		$ 3	2,341
Redemption of Operating Partnership units for common stock (in shares)					293,641
Redemption of Operating Partnership units for cash	(271)		(271)
Comprehensive income:
Net income (loss)	22,657	3,084	670	(7)				18,910	$ 22,657
Change in fair value of interest rate swap	(674)	(7)	(18)				(649)		(674)
Total comprehensive income	21,983								$ 21,983
Tax effect from vesting of restricted stock grants and stock option exercises	2,091					2,091
Distributions to Operating Partnership units held by noncontrolling interests	(4,092)	(3,152)	(940)
Distributions to other noncontrolling interests	(13)			(13)
Dividends paid on common stock at $0.28 per share	(25,575)							(25,575)
Balances at Jun. 30, 2011	$ 1,058,944	$ 29,658	$ 23,900	$ 1,114	$ 942	$ 1,278,939	$ (6,436)	$ (269,173)
Balances (in shares) at Jun. 30, 2011	94,243,303				94,243,303

Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Condensed Consolidated Statement of Equity
Dividends paid on common stock, per share (in dollars per share)	$ 0.14	$ 0.10	$ 0.28	$ 0.20

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income	$ 22,657	$ 13,104
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	27,677	24,621
Amortization of deferred financing costs	2,233	2,347
Non-cash interest expense related to amortization of discount on exchangeable senior notes	868	820
Compensation expense related to stock-based awards	2,711	2,402
Distributions from real estate ventures in excess of earnings	5,169	3,095
Changes in operating assets and liabilities:
Receivables from related parties and affiliated real estate joint ventures	1,393	2,767
Other assets	4,960	(65)
Accounts payable and accrued expenses	(1,498)	(1,193)
Other liabilities	(977)	(1,827)
Net cash provided by operating activities	65,193	46,071
Cash flows from investing activities:
Acquisition of real estate assets	(82,071)	(16,460)
Development and construction of real estate assets	(4,494)	(18,306)
Proceeds from sale of properties to joint venture		15,750
Investments in real estate ventures	(3,405)	(9,059)
Change in restricted cash	(2,202)	5,509
Purchase of equipment and fixtures	(3,463)	(1,115)
Net cash used in investing activities	(95,635)	(23,681)
Cash flows from financing activities:
Proceeds from the sale of common stock	112,532
Proceeds from notes payable and lines of credit	264,686	104,093
Principal payments on notes payable and lines of credit	(335,693)	(210,647)
Deferred financing costs	(3,200)	(1,884)
Redemption of Operating Partnership units held by noncontrolling interest	(271)
Net proceeds from exercise of stock options	10,505	3,705
Dividends paid on common stock	(25,575)	(17,455)
Distributions to noncontrolling interests (Operating Partnership and other)	(4,105)	(3,798)
Net cash provided by (used in) financing activities	18,879	(125,986)
Net decrease in cash and cash equivalents	(11,563)	(103,596)
Cash and cash equivalents, beginning of the period	46,750	131,950
Cash and cash equivalents, end of the period	35,187	28,354
Supplemental schedule of cash flow information
Interest paid, net of amounts capitalized	31,533	31,723
Deconsolidation of joint ventures due to application of Accounting Standards Codification 810:
Real estate assets, net		(42,739)
Investments in real estate ventures		404
Receivables from related parties and affiliated real estate joint ventures		21,142
Other assets and other liabilities		(51)
Notes payable		21,348
Other noncontrolling interests		(104)
Redemption of Operating Partnership units held by noncontrolling interests for common stock	2,344
Acquisitions of real estate assets
Real estate assets, net	8,660	6,475
Notes payable	$ (8,660)	$ (6,475)

ORGANIZATION

6 Months Ended

Jun. 30, 2011

ORGANIZATION

ORGANIZATION

1. ORGANIZATION

Extra Space Storage Inc. (the “Company”) is a self-administered and self-managed real estate investment trust (“REIT”), formed as a Maryland corporation on April 30, 2004 to own, operate, manage, acquire, develop and redevelop professionally managed self-storage facilities located throughout the United States. The Company continues the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. The Company’s interest in its properties is held through its operating partnership, Extra Space Storage LP (the “Operating Partnership”), which was formed on May 5, 2004. The Company’s primary assets are general partner and limited partner interests in the Operating Partnership. This structure is commonly referred to as an umbrella partnership REIT (“UPREIT”). The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To the extent the Company continues to qualify as a REIT, it will not be subject to tax, with certain limited exceptions, on the taxable income that is distributed to its stockholders.

The Company invests in self-storage facilities by acquiring or developing wholly-owned facilities or by acquiring an equity interest in real estate entities. At June 30, 2011, the Company had direct and indirect equity interests in 680 operating storage facilities. In addition, the Company managed 180 properties for franchisees and third parties, bringing the total number of operating properties which it owns and/or manages to 860. These properties are located in 34 states and Washington, D.C.

The Company operates in three distinct segments: (1) property management, acquisition and development; (2) rental operations; and (3) tenant reinsurance. The Company’s property management, acquisition and development activities include managing, acquiring, developing and selling self-storage facilities. On June 2, 2009, the Company announced the wind-down of its development activities. As of June 30, 2011, there was one remaining development project in process. The Company expects to complete this project by the end of 2011. The rental operations activities include rental operations of self-storage facilities. No single tenant accounts for more than 5% of rental income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the Company’s self storage facilities.

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2011

BASIS OF PRESENTATION

BASIS OF PRESENTATION

2. BASIS OF PRESENTATION

The accompanying unaudited condensed consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of results that may be expected for the year ended December 31, 2011. The condensed consolidated balance sheet as of December 31, 2010 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 as filed with the Securities and Exchange Commission.

FAIR VALUE DISCLOSURES

6 Months Ended

Jun. 30, 2011

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES

3. FAIR VALUE DISCLOSURES

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table provides information for each major category of assets and liabilities that are measured at fair value on a recurring basis:

				Fair Value Measurements at Reporting Date Using
Description	June 30, 2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Other liabilities - Cash Flow Hedge Swap Agreements	$	(6,748	)	$	—	$	(6,748	)	$	—

The fair value of our derivatives is based on quoted market prices of similar instruments from various banking institutions or an independent third party provider for similar instruments. In determining the fair value, we consider our non-performance risk and that of our counterparties.

There were no transfers of assets and liabilities between Level 1 and Level 2 during the six months ended June 30, 2011. The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2011.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each self-storage facility at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on facilities where occupancy and/or rental income have decreased by a significant amount. For these facilities, the Company determines whether the decrease is temporary or permanent and whether the facility will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company carefully reviews facilities in the lease-up stage and compares actual operating results to original projections.

When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets.

When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, then a valuation allowance is established. The operations of assets held for sale or sold during the period are generally presented as discontinued operations for all periods presented.

The Company assesses whether there are any indicators that the value of its investments in unconsolidated real estate ventures may be impaired annually and when events or circumstances indicate there may be impairment. An investment is impaired if the Company’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount over the fair value of the investment.

In connection with the Company’s acquisition of self-storage facilities, the purchase price is allocated to the tangible and intangible assets and liabilities acquired based on their fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its facilities. Debt assumed as part of an acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transaction costs are expensed as incurred.

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable rate notes payable and notes payable to trusts, lines of credit and other liabilities reflected in the condensed consolidated balance sheets at June 30, 2011 and December 31, 2010 approximate fair value. The fair values of the Company’s notes receivable, fixed rate notes payable and notes payable to trusts and exchangeable senior notes are as follows:

	June 30, 2011				December 31, 2010
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
Note receivable from Preferred Operating Partnership unit holder	$	95,582	$	100,000	$	115,696	$	100,000
Fixed rate notes payable and notes payable to trusts	$	791,198	$	757,921	$	777,575	$	731,588
Exchangeable senior notes	$	92,383	$	87,663	$	118,975	$	87,663

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

NET INCOME PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE

4. NET INCOME PER COMMON SHARE

Basic net income per common share is computed by dividing net income by the weighted average common shares outstanding, including unvested share based payment awards that contain a non-forfeitable right to dividends or dividend equivalents. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued and is calculated using either the treasury stock or if-converted method. Potential common shares are securities (such as options, warrants, convertible debt, exchangeable Series A Participating Redeemable Preferred Operating Partnership units (“Preferred OP units”) and exchangeable Operating Partnership units (“OP units”)) that do not have a current right to participate in earnings but could do so in the future by virtue of their option or conversion right. In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per share, only potential common shares that are dilutive, those that reduce earnings per share, are included.

The Company’s Operating Partnership has $87,663 of exchangeable senior notes issued and outstanding as of June 30, 2011 that also can potentially have a dilutive effect on its earnings per share calculations. The exchangeable senior notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the exchangeable senior notes. The exchangeable senior notes are not exchangeable unless the price of the Company’s common stock is greater than or equal to 130% of the applicable exchange price for a specified period during a quarter, or unless certain other events occur. The exchange price was $23.45 per share at June 30, 2011, and could change over time as described in the indenture. The price of the Company’s common stock did not exceed 130% of the exchange price for the specified period of time during the second quarter of 2011; therefore holders of the exchangeable senior notes may not elect to convert them during the third quarter of 2011.

The Company has irrevocably agreed to pay only cash for the accreted principal amount of the exchangeable senior notes relative to its exchange obligations, but has retained the right to satisfy the exchange obligations in excess of the accreted principal amount in cash and/or common stock. Though the Company has retained that right, Accounting Standards Codification (“ASC”) 260, “Earnings Per Share,” requires an assumption that shares will be used to pay the exchange obligations in excess of the accreted principal amount, and requires that those shares be included in the Company’s calculation of weighted average common shares outstanding for the diluted earnings per share computation. No shares related to the exchangeable senior notes were included in the computations for the three and six month periods ended June 30, 2011 or 2010 because there was no excess over the accreted principal for these periods.

For the purposes of computing the diluted impact on earnings per share of the potential conversion of Preferred OP units into common shares, where the Company has the option to redeem in cash or shares and where the Company has stated the positive intent and ability to settle at least $115,000 of the instrument in cash (or net settle a portion of the Preferred OP units against the related outstanding note receivable), only the amount of the instrument in excess of $115,000 is considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46.

For the three months ended June 30, 2011 and 2010, options to purchase 122,321 and 1,902,695 shares of common stock, and for the six months ended June 30, 2011 and 2010, 99,482 and 2,387,550 shares of common stock, respectively, were excluded from the computation of earnings per share as their effect would have been anti-dilutive. All restricted stock grants have been included in basic and diluted shares outstanding because such shares earn a non-forfeitable dividend and carry voting rights.

The computation of net income per common share is as follows:

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Net income attributable to common stockholders	$	10,609		$	6,180		$	18,910		$	9,748
Add: Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership	1,910			1,762			3,754			3,390
Subtract: Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership	(1,437		)	(1,437		)	(2,875		)	(2,875		)
Net income for diluted computations	$	11,082		$	6,505		$	19,789		$	10,263

Weighted average common shares outstanding:
Average number of common shares outstanding - basic	91,439,042			87,367,967			89,733,518			87,122,064
Operating Partnership units	3,049,935			3,627,368			3,049,935			3,627,368
Preferred Operating Partnership units	989,980			989,980			989,980			989,980
Dilutive and cancelled stock options	531,891			319,516			562,708			286,738
Average number of common shares outstanding - diluted	96,010,848			92,304,831			94,336,141			92,026,150

Net income per common share
Basic	$	0.12		$	0.07		$	0.21		$	0.11
Diluted	$	0.12		$	0.07		$	0.21		$	0.11

PROPERTY ACQUISITIONS

6 Months Ended

Jun. 30, 2011

PROPERTY ACQUISITIONS

PROPERTY ACQUISITIONS

5. PROPERTY ACQUISITIONS

The following table summarizes the Company’s acquisitions of operating properties for the six months ended June 30, 2011 and does not include improvements made to existing assets:

			Consideration Paid									Acquisition Date Fair Value
Property Location	Number of Properties	Date of Acquisition	Total Paid		Cash Paid		Loan Assumed		Net Liabilities/ (Assets) Assumed			Land		Building		Intangible		Closing costs - expensed			Source of Acquisition
Utah, Texas	2	4/1/2011	$	7,262	$	7,205	$	—	$	57		$	1,512	$	5,548	$	188	$	14		Affiliated joint venture
California	1	4/7/2011	8,207		8,150		—		57			2,211		5,829		163		4			Unrelated third party
Tennessee	1	4/15/2011	2,577		2,514		—		25			652		1,791		79		17			Unrelated third party
Colorado	1	5/25/2011	3,540		2,262		1,290		(12		)	407		3,077		61		(5		)	Unrelated third party
Virginia	1	5/26/2011	10,513		5,205		5,463		(154		)	932		9,349		202		31			Unrelated third party
New Jersey	1	6/2/2011	4,963		4,959		—		4			1,644		3,115		135		69			Affiliated joint venture
Colorado	1	6/10/2011	4,600		2,664		1,907		29			296		4,199		98		7			Unrelated third party
Nevada	1	6/22/2011	3,355		3,339		—		16			1,441		1,810		98		6			Unrelated third party
Ohio, Indiana, Kentucky	15	6/27/2011	39,773		39,387		—		386			13,587		24,991		903		292			Unrelated third party

On January 1, 2011, the Company paid $320 in cash to obtain its joint venture partners’ equity interests in a joint venture. No gain or loss was recognized on this transaction. The joint venture owned a single stabilized self-storage property located in Pennsylvania and was previously accounted for under the equity method. This property is now wholly owned and consolidated by the Company.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 88-16
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51, 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 67-73
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6927-128479

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1490-128463

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7008-128479

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4926-128472

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e6996-128479

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1524-128463

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1392-128463

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6911361&loc=d3e7000-128479

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4845-128472

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6910749&loc=d3e4934-128472

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1497-128463

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1486-128463

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1383-128463

+ Details

VARIABLE INTERESTS

6 Months Ended

Jun. 30, 2011

VARIABLE INTERESTS

VARIABLE INTERESTS

6. VARIABLE INTERESTS

The Company has interests in two unconsolidated joint ventures with unrelated third parties which are variable interest entities (“VIEs” or the “VIE JVs”). The Company holds 18% and 39% of the equity interests in the two VIE JVs, and has 50% of the voting rights in each of the VIE JVs. Qualification as a VIE was based on the determination that the equity investments at risk for each of these joint ventures were not sufficient based on a qualitative and quantitative analysis performed by the Company. The Company performed a qualitative analysis for these joint ventures to determine which party was the primary beneficiary of each VIE. The Company determined that since the powers to direct the activities most significant to the economic performance of these entities are shared equally by the Company and its joint venture partners, there is no primary beneficiary. Accordingly, these interests are recorded using the equity method.

The VIE JVs each own a single self-storage property. These joint ventures are financed through a combination of (1) equity contributions from the Company and its joint venture partners, (2) mortgage notes payable and (3) payables to the Company. The payables to the Company consist of amounts owed for expenses paid on behalf of the joint ventures by the Company as manager and mortgage notes payable to the Company. The Company performs management services for the VIE JVs in exchange for a management fee of approximately 6% of cash collected by the properties. The Company has not provided financial or other support during the periods presented to the VIE JVs that it was not previously contractually obligated to provide.

The Company guarantees the mortgage notes payable for the VIE JVs. The Company’s maximum exposure to loss for these joint ventures as of June 30, 2011 is the total of the guaranteed loan balances, the payables due to the Company and the Company’s investment balances in the joint ventures. The Company believes that the risk of incurring a material loss as a result of having to perform on the loan guarantees is unlikely and therefore no liability has been recorded related to these guarantees. Also, repossessing and/or selling the self-storage facility and land that collateralize the loans could provide funds sufficient to reimburse the Company. Additionally, the Company believes the payables to the Company are collectible.

The following table compares the liability balance and the maximum exposure to loss related to the VIE JVs as of June 30, 2011:

						Balance of				Maximum
	Liability		Investment			Guaranteed		Payables to		Exposure
	Balance		Balance			Loan		Company		to Loss		Difference
Extra Space of Montrose Avenue LLC	$	—	$	1,214		$	4,838	$	2,469	$	8,521	$	(8,521	)
Extra Space of Sacramento One LLC	—		(862		)	4,307		6,094		9,539		(9,539		)
	$	—	$	352		$	9,145	$	8,563	$	18,060	$	(18,060	)

The Operating Partnership has three wholly-owned unconsolidated subsidiaries (“Trust,” “Trust II,” and “Trust III,” together, the “Trusts”) that have issued trust preferred securities to third parties and common securities to the Operating Partnership. The proceeds from the sale of the preferred and common securities were loaned in the form of notes to the Operating Partnership. The Trusts are VIEs because the holders of the equity investment at risk (the trust preferred securities) do not have the power to direct the activities of the entities that most significantly affect the entities’ economic performance because of their lack of voting or similar rights. Because the Operating Partnership’s investment in the Trusts’ common securities was financed directly by the Trusts as a result of its loan of the proceeds to the Operating Partnership, that investment is not considered to be an equity investment at risk. The Operating Partnership’s investment in the Trusts is not a variable interest because equity interests are variable interests only to the extent that the investment is considered to be at risk, and therefore the Operating Partnership cannot be the primary beneficiary of the Trusts. Since the Company is not the primary beneficiary of the Trusts, they have not been consolidated. A debt obligation has been recorded in the form of notes for the proceeds as discussed above, which are owed to the Trusts. The Company has also included its investment in the Trusts’ common securities in other assets on the condensed consolidated balance sheets.

The Company has not provided financing or other support during the periods presented to the Trusts that it was not previously contractually obligated to provide. The Company’s maximum exposure to loss as a result of its involvement with the Trusts is equal to the total amount of the notes discussed above less the amounts of the Company’s investments in the Trusts’ common securities. The net amount is the notes payable that the Trusts owe to third parties for their investments in the Trusts’ preferred securities.

The following is a tabular comparison of the liabilities the Company has recorded as a result of its involvement with the Trusts to the maximum exposure to loss the Company is subject to as a result of such involvement as of June 30, 2011:

	Notes payable		Investment		Maximum
	to Trusts		Balance		exposure to loss		Difference
Trust	$	36,083	$	1,083	$	35,000	$	—
Trust II	42,269		1,269		41,000		—
Trust III	41,238		1,238		40,000		—
	$	119,590	$	3,590	$	116,000	$	—

The Company had no consolidated VIEs during the six months ended June 30, 2011 or 2010.

DERIVATIVES

6 Months Ended

Jun. 30, 2011

DERIVATIVES

DERIVATIVES

7. DERIVATIVES

GAAP requires the recognition of all derivative instruments as either assets or liabilities on the balance sheet at fair value. The accounting for changes in fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. A company must designate each qualifying hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge, or a hedge of a net investment in foreign operations.

The Company is exposed to certain risks relating to its ongoing business operations. The primary risk managed by using derivative instruments is interest rate risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and variable-rate borrowings. The Company designates certain interest rate swaps as cash flow hedges of variable-rate borrowings and the remainder as fair value hedges of fixed-rate borrowings.

For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the statement of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings, and subsequently reclassified to earnings when the hedged transaction affects earnings.

The following table summarizes the terms of the Company’s derivative financial instruments at June 30, 2011:

Hedge Product		Hedge Type		Notional Amounts		Strike		Effective Dates		Maturity Dates
Cash Flow Hedge Swap Agreements		Cash Flow		$8,462 - $63,000		4.24% - 6.98%		2/1/2009 - 6/11/2010		6/30/2013 - 6/27/2016

Monthly interest payments were recognized as an increase or decrease in interest expense as follows:

	Classification of	Three months ended June 30,				Six months ended June 30,
Type	Income (Expense)	2011		2010		2011		2010
Cash Flow Hedge Swap Agreements	Interest expense	(1,365	)	(640	)	(2,014	)	(1,272	)

Information relating to the gains recognized on the interest rate swap agreements is as follows:

					Gain (loss)
					reclassified from
	Gain (loss)			Location of amounts	OCI
	recognized in OCI			reclassified from OCI	Six months ended
Type	June 30, 2011			into income	June 30, 2011
Cash Flow Hedge Swap Agreements	$	(674	)	Interest expense	$	(2,014	)

The interest rate swap agreements were highly effective for the three and six months ended June 30, 2011. The gain (loss) reclassified from other comprehensive income (“OCI”) in the preceding table represents the effective portion of the Company’s cash flow hedges reclassified from OCI to interest expense during the six months ended June 30, 2011.

The balance sheet classification and carrying amounts of the derivative instruments are as follows:

	Asset (Liability) Derivatives
	June 30, 2011				December 31, 2010
Derivatives designated as hedging	Balance Sheet	Fair			Balance Sheet	Fair
instruments:	Location	Value			Location	Value
Cash Flow Hedge Swap Agreements	Other liabilities	$	(6,748	)	Other liabilities	$	(6,074	)

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 45
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80784-113994

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41638-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5580258-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579240-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41641-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41620-113959

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624181-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624177-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6887037&loc=d3e80748-113994

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624258-113959

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708775-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41635-113959

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5708773-113959

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

+ Details

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

6 Months Ended

Jun. 30, 2011

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

8. NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

On June 15, 2007, the Operating Partnership entered into a Contribution Agreement with various limited partnerships affiliated with AAAAA Rent-A-Space to acquire ten self-storage facilities (the “Properties”) in exchange for 989,980 Preferred OP units of the Operating Partnership. The self-storage facilities are located in California and Hawaii.

On June 25, 2007, the Operating Partnership loaned the holders of the Preferred OP units $100,000. The note receivable bears interest at 4.85% and is due September 1, 2017. The loan is secured by the borrower’s Preferred OP units. The holders of the Preferred OP units can convert up to 114,500 Preferred OP units prior to the maturity date of the loan. If any redemption in excess of 114,500 Preferred OP units occurs prior to the maturity date, the holder of the Preferred OP units is required to repay the loan as of the date of that Preferred OP unit redemption. Preferred OP units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan receivable is also the holder of the Preferred OP units.

The Operating Partnership entered into a Second Amended and Restated Agreement of Limited Partnership (as subsequently amended, the “Partnership Agreement”) which provides for the designation and issuance of the Preferred OP units. The Preferred OP units will have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

Under the Partnership Agreement, Preferred OP units in the amount of $115,000 bear a fixed priority return of 5% and have a fixed liquidation value of $115,000. The remaining balance participates in distributions with, and has a liquidation value equal to, that of the common OP units. The Preferred OP units became redeemable at the option of the holder on September 1, 2008, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock.

GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity.

The Company has evaluated the terms of the Preferred OP units and classifies the noncontrolling interest represented by the Preferred OP units as stockholders’ equity in the accompanying condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the condensed consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made.

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP

6 Months Ended

Jun. 30, 2011

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP

9. NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP

The Company’s interest in its properties is held through the Operating Partnership. ESS Holding Business Trust I, a wholly owned subsidiary of the Company, is the sole general partner of the Operating Partnership. The Company, through ESS Holding Business Trust II, a wholly owned subsidiary of the Company, is also a limited partner of the Operating Partnership. Between its general partner and limited partner interests, the Company held a 95.9% majority ownership interest therein as of June 30, 2011. The remaining ownership interests in the Operating Partnership (including Preferred OP units) of 4.1% are held by certain former owners of assets acquired by the Operating Partnership. As of June 30, 2011, the Operating Partnership had 3,049,935 common OP units outstanding.

The noncontrolling interest in the Operating Partnership represents common OP units that are not owned by the Company. In conjunction with the formation of the Company and as a result of subsequent acquisitions, certain persons and entities contributing interests in properties to the Operating Partnership received limited partnership units in the form of either OP units or Contingent Conversion Units. Limited partners who received OP units in the formation transactions or in exchange for contributions for interests in properties have the right to require the Operating Partnership to redeem part or all of their common OP units for cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (ten-day average) at the time of the redemption. Alternatively, the Company may, at its option, elect to acquire those OP units in exchange for shares of its common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement. The ten-day average closing stock price at June 30, 2011 was $20.66 and there were 3,049,935 common OP units outstanding. Assuming that all of the unit holders exercised their right to redeem all of their common OP units on June 30, 2011 and the Company elected to pay the noncontrolling members cash, the Company would have paid $63,012 in cash consideration to redeem the OP units.

The Company has evaluated the terms of the common OP units and classifies the noncontrolling interest in the Operating Partnership as stockholders’ equity in the accompanying condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the condensed consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made.

OTHER NONCONTROLLING INTERESTS

6 Months Ended

Jun. 30, 2011

OTHER NONCONTROLLING INTERESTS

OTHER NONCONTROLLING INTERESTS

10. OTHER NONCONTROLLING INTERESTS

Other noncontrolling interests represent the ownership interests of various third parties in three consolidated self-storage properties as of June 30, 2011. Two of these consolidated properties were under development, and one was in the lease-up stage at June 30, 2011. The ownership interests of the third-party owners range from 5.0% to 27.6%. Other noncontrolling interests are included in the stockholders’ equity section of the Company’s condensed consolidated balance sheet. The income or losses attributable to these third- party owners based on their ownership percentages are reflected in net income allocated to the Operating Partnership and other noncontrolling interests in the condensed consolidated statement of operations.

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References + Details

STOCK OFFERING

6 Months Ended

Jun. 30, 2011

STOCK OFFERING

STOCK OFFERING

11. STOCK OFFERING

In May 2011, the Company closed a public stock offering of 5,335,423 shares of its common stock at an offering price of $21.16 per share. The Company received gross proceeds of $112,898. Transaction costs were $366 for net proceeds of $112,532.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

+ Details

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

12. SEGMENT INFORMATION

The Company operates in three distinct segments: (1) property management, acquisition and development; (2) rental operations; and (3) tenant reinsurance. Financial information for the Company’s business segments is set forth below:

	June 30, 2011		December 31, 2010
Balance Sheet
Investment in real estate ventures
Rental operations	$	137,997	$	140,560

Total assets
Property management, acquisition and development	$	350,243	$	400,910
Rental operations	1,939,044		1,831,150
Tenant reinsurance	21,570		16,408
	$	2,310,857	$	2,248,468

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Statement of Operations
Total revenues
Property management, acquisition and development	$	6,144		$	5,653		$	12,111		$	11,205
Rental operations	64,300			56,786			125,790			112,929
Tenant reinsurance	7,596			6,338			14,620			12,230
	$	78,040		$	68,777		$	152,521		$	136,364

Operating expenses, including depreciation and amortization
Property management, acquisition and development	$	14,854		$	11,855		$	27,536		$	23,422
Rental operations	35,952			32,659			72,106			66,593
Tenant reinsurance	1,382			1,457			2,997			2,680
	$	52,188		$	45,971		$	102,639		$	92,695

Income (loss) from operations
Property management, acquisition and development	$	(8,710	)	$	(6,202	)	$	(15,425	)	$	(12,217	)
Rental operations	28,348			24,127			53,684			46,336
Tenant reinsurance	6,214			4,881			11,623			9,550
	$	25,852		$	22,806		$	49,882		$	43,669

Interest expense
Property management, acquisition and development	$	(823	)	$	(790	)	$	(1,605	)	$	(1,577	)
Rental operations	(15,878		)	(15,859		)	(31,938		)	(32,750		)
	$	(16,701	)	$	(16,649	)	$	(33,543	)	$	(34,327	)

Interest income
Property management, acquisition and development	$	187		$	209		$	366		$	531
Tenant reinsurance	2			2			5			5
	$	189		$	211		$	371		$	536

Interest income on note receivable from Preferred Operating Partnership unit holder
Property management, acquisition and development	$	1,212		$	1,212		$	2,425		$	2,425

Equity in earnings of real estate ventures
Rental operations	$	2,376		$	1,559		$	4,187		$	3,060

Income tax expense
Tenant reinsurance	$	(411	)	$	(1,214	)	$	(665	)	$	(2,259	)

Net income (loss)
Property management, acquisition and development	$	(8,134	)	$	(5,571	)	$	(14,239	)	$	(10,838	)
Rental operations	14,846			9,827			25,933			16,646
Tenant reinsurance	5,805			3,669			10,963			7,296
	$	12,517		$	7,925		$	22,657		$	13,104

Depreciation and amortization expense
Property management, acquisition and development	$	852		$	484		$	1,627		$	925
Rental operations	13,240			11,718			26,050			23,696
	$	14,092		$	12,202		$	27,677		$	24,621

Statement of Cash Flows
Acquisition of real estate assets
Property management, acquisition and development							$	(82,071	)	$	(16,460	)

Development and construction of real estate assets
Property management, acquisition and development							$	(4,494	)	$	(18,306	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 131
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599

+ Details

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2011

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

13. COMMITMENTS AND CONTINGENCIES

The Company has guaranteed loans for unconsolidated joint ventures as follows:

			Guaranteed		Estimated
		Loan	Loan Amount		Fair Market
	Date of	Maturity	June 30,		Value of
	Guaranty	Date	2010		Assets
Extra Space of Montrose Avenue LLC	Dec-10	Dec-13	$	4,838	$	8,500
Extra Space of Sacramento One LLC	Apr-09	Apr-14	$	4,307	$	9,826
ESS Baltimore LLC	Nov-04	Feb-13	$	4,072	$	6,735

If the joint ventures default on the loans, the Company may be forced to repay the loans. Repossessing and/or selling the self-storage facilities and land that collateralizes the loans could provide funds sufficient to reimburse the Company. The Company has recorded no liability in relation to these guarantees as of June 30, 2011, as the fair value of the guarantees was not material. The Company believes the risk of incurring a material loss as a result of having to perform on these guarantees is unlikely.

The Company has been involved in routine litigation arising in the ordinary course of business. As of June 30, 2011, the Company was not involved in any material litigation nor, to its knowledge, was any material litigation threatened against it which, in the opinion of management, is expected to have a material adverse effect on the Company’s financial condition or results of operations.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

+ Details

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS

On July 8, 2011, the Company purchased one property located in Maryland for $5,650.

On August 1, 2011, the Company purchased one property located in Maryland for $7,250.

On August 2, 2011, the Company purchased one property located in Texas for $2,400.

FAIR VALUE DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 2011

FAIR VALUE DISCLOSURES

Schedule of assets and liabilities measured at fair value on a recurring basis

				Fair Value Measurements at Reporting Date Using
Description	June 30, 2011			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Other liabilities - Cash Flow Hedge Swap Agreements	$	(6,748	)	$	—	$	(6,748	)	$	—

Schedule of fair value of financial instruments

	June 30, 2011				December 31, 2010
	Fair		Carrying		Fair		Carrying
	Value		Value		Value		Value
Note receivable from Preferred Operating Partnership unit holder	$	95,582	$	100,000	$	115,696	$	100,000
Fixed rate notes payable and notes payable to trusts	$	791,198	$	757,921	$	777,575	$	731,588
Exchangeable senior notes	$	92,383	$	87,663	$	118,975	$	87,663

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 14
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15
-Subparagraph b-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32
-Subparagraph a, c(1), c(2), c(3), d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 18
-Subparagraph c(2), d, e, f
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 19
-Subparagraph a, b, c(1), d(1)
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 10
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13467-108611

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13476-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610

+ Details

NET INCOME PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2011

NET INCOME PER COMMON SHARE

Schedule of computation of net income per common share

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Net income attributable to common stockholders	$	10,609		$	6,180		$	18,910		$	9,748
Add: Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership	1,910			1,762			3,754			3,390
Subtract: Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership	(1,437		)	(1,437		)	(2,875		)	(2,875		)
Net income for diluted computations	$	11,082		$	6,505		$	19,789		$	10,263

Weighted average common shares outstanding:
Average number of common shares outstanding - basic	91,439,042			87,367,967			89,733,518			87,122,064
Operating Partnership units	3,049,935			3,627,368			3,049,935			3,627,368
Preferred Operating Partnership units	989,980			989,980			989,980			989,980
Dilutive and cancelled stock options	531,891			319,516			562,708			286,738
Average number of common shares outstanding - diluted	96,010,848			92,304,831			94,336,141			92,026,150

Net income per common share
Basic	$	0.12		$	0.07		$	0.21		$	0.11
Diluted	$	0.12		$	0.07		$	0.21		$	0.11

PROPERTY ACQUISITIONS (Tables)

6 Months Ended

Jun. 30, 2011

PROPERTY ACQUISITIONS

Schedule of operating properties acquired

			Consideration Paid									Acquisition Date Fair Value
Property Location	Number of Properties	Date of Acquisition	Total Paid		Cash Paid		Loan Assumed		Net Liabilities/ (Assets) Assumed			Land		Building		Intangible		Closing costs - expensed			Source of Acquisition
Utah, Texas	2	4/1/2011	$	7,262	$	7,205	$	—	$	57		$	1,512	$	5,548	$	188	$	14		Affiliated joint venture
California	1	4/7/2011	8,207		8,150		—		57			2,211		5,829		163		4			Unrelated third party
Tennessee	1	4/15/2011	2,577		2,514		—		25			652		1,791		79		17			Unrelated third party
Colorado	1	5/25/2011	3,540		2,262		1,290		(12		)	407		3,077		61		(5		)	Unrelated third party
Virginia	1	5/26/2011	10,513		5,205		5,463		(154		)	932		9,349		202		31			Unrelated third party
New Jersey	1	6/2/2011	4,963		4,959		—		4			1,644		3,115		135		69			Affiliated joint venture
Colorado	1	6/10/2011	4,600		2,664		1,907		29			296		4,199		98		7			Unrelated third party
Nevada	1	6/22/2011	3,355		3,339		—		16			1,441		1,810		98		6			Unrelated third party
Ohio, Indiana, Kentucky	15	6/27/2011	39,773		39,387		—		386			13,587		24,991		903		292			Unrelated third party

- Definition

Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 51
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141
-Paragraph 52
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Paragraph 68
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 141R
-Appendix F
-Paragraph F4
-Subparagraph e

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1392-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6972119&loc=d3e1486-128463

+ Details

VARIABLE INTERESTS (Tables)

6 Months Ended

Jun. 30, 2011

VARIABLE INTERESTS

Schedule of the comparison of the liability balance and the maximum exposure to loss related to the VIE JVs

						Balance of				Maximum
	Liability		Investment			Guaranteed		Payables to		Exposure
	Balance		Balance			Loan		Company		to Loss		Difference
Extra Space of Montrose Avenue LLC	$	—	$	1,214		$	4,838	$	2,469	$	8,521	$	(8,521	)
Extra Space of Sacramento One LLC	—		(862		)	4,307		6,094		9,539		(9,539		)
	$	—	$	352		$	9,145	$	8,563	$	18,060	$	(18,060	)

Schedule of the comparison of the liability balance and the maximum exposure to loss related to trusts

	Notes payable		Investment		Maximum
	to Trusts		Balance		exposure to loss		Difference
Trust	$	36,083	$	1,083	$	35,000	$	—
Trust II	42,269		1,269		41,000		—
Trust III	41,238		1,238		40,000		—
	$	119,590	$	3,590	$	116,000	$	—

DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2011

DERIVATIVES

Schedule summarizing the terms of derivative financial instruments

Hedge Product		Hedge Type		Notional Amounts		Strike		Effective Dates		Maturity Dates
Cash Flow Hedge Swap Agreements		Cash Flow		$8,462 - $63,000		4.24% - 6.98%		2/1/2009 - 6/11/2010		6/30/2013 - 6/27/2016

Schedule of monthly interest payments recognized as an increase or decrease in interest expense

	Classification of	Three months ended June 30,				Six months ended June 30,
Type	Income (Expense)	2011		2010		2011		2010
Cash Flow Hedge Swap Agreements	Interest expense	(1,365	)	(640	)	(2,014	)	(1,272	)

Schedule of information relating to the gains recognized on the swap agreements

					Gain (loss)
					reclassified from
	Gain (loss)			Location of amounts	OCI
	recognized in OCI			reclassified from OCI	Six months ended
Type	June 30, 2011			into income	June 30, 2011
Cash Flow Hedge Swap Agreements	$	(674	)	Interest expense	$	(2,014	)

Schedule of balance sheet classification and carrying amounts of the interest rate swaps

	Asset (Liability) Derivatives
	June 30, 2011				December 31, 2010
Derivatives designated as hedging	Balance Sheet	Fair			Balance Sheet	Fair
instruments:	Location	Value			Location	Value
Cash Flow Hedge Swap Agreements	Other liabilities	$	(6,748	)	Other liabilities	$	(6,074	)

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579245-113959

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624163-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5624171-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41678-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41638-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5580258-113959

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6935481&loc=SL5579240-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41641-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6935481&loc=d3e41620-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

+ Details

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2011

SEGMENT INFORMATION

Schedule of financial information of business segments

	June 30, 2011		December 31, 2010
Balance Sheet
Investment in real estate ventures
Rental operations	$	137,997	$	140,560

Total assets
Property management, acquisition and development	$	350,243	$	400,910
Rental operations	1,939,044		1,831,150
Tenant reinsurance	21,570		16,408
	$	2,310,857	$	2,248,468

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Statement of Operations
Total revenues
Property management, acquisition and development	$	6,144		$	5,653		$	12,111		$	11,205
Rental operations	64,300			56,786			125,790			112,929
Tenant reinsurance	7,596			6,338			14,620			12,230
	$	78,040		$	68,777		$	152,521		$	136,364

Operating expenses, including depreciation and amortization
Property management, acquisition and development	$	14,854		$	11,855		$	27,536		$	23,422
Rental operations	35,952			32,659			72,106			66,593
Tenant reinsurance	1,382			1,457			2,997			2,680
	$	52,188		$	45,971		$	102,639		$	92,695

Income (loss) from operations
Property management, acquisition and development	$	(8,710	)	$	(6,202	)	$	(15,425	)	$	(12,217	)
Rental operations	28,348			24,127			53,684			46,336
Tenant reinsurance	6,214			4,881			11,623			9,550
	$	25,852		$	22,806		$	49,882		$	43,669

Interest expense
Property management, acquisition and development	$	(823	)	$	(790	)	$	(1,605	)	$	(1,577	)
Rental operations	(15,878		)	(15,859		)	(31,938		)	(32,750		)
	$	(16,701	)	$	(16,649	)	$	(33,543	)	$	(34,327	)

Interest income
Property management, acquisition and development	$	187		$	209		$	366		$	531
Tenant reinsurance	2			2			5			5
	$	189		$	211		$	371		$	536

Interest income on note receivable from Preferred Operating Partnership unit holder
Property management, acquisition and development	$	1,212		$	1,212		$	2,425		$	2,425

Equity in earnings of real estate ventures
Rental operations	$	2,376		$	1,559		$	4,187		$	3,060

Income tax expense
Tenant reinsurance	$	(411	)	$	(1,214	)	$	(665	)	$	(2,259	)

Net income (loss)
Property management, acquisition and development	$	(8,134	)	$	(5,571	)	$	(14,239	)	$	(10,838	)
Rental operations	14,846			9,827			25,933			16,646
Tenant reinsurance	5,805			3,669			10,963			7,296
	$	12,517		$	7,925		$	22,657		$	13,104

Depreciation and amortization expense
Property management, acquisition and development	$	852		$	484		$	1,627		$	925
Rental operations	13,240			11,718			26,050			23,696
	$	14,092		$	12,202		$	27,677		$	24,621

Statement of Cash Flows
Acquisition of real estate assets
Property management, acquisition and development							$	(82,071	)	$	(16,460	)

Development and construction of real estate assets
Property management, acquisition and development							$	(4,494	)	$	(18,306	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2011

COMMITMENTS AND CONTINGENCIES

Schedule of guaranteed loans for unconsolidated joint ventures

			Guaranteed		Estimated
		Loan	Loan Amount		Fair Market
	Date of	Maturity	June 30,		Value of
	Guaranty	Date	2010		Assets
Extra Space of Montrose Avenue LLC	Dec-10	Dec-13	$	4,838	$	8,500
Extra Space of Sacramento One LLC	Apr-09	Apr-14	$	4,307	$	9,826
ESS Baltimore LLC	Nov-04	Feb-13	$	4,072	$	6,735

- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

+ References + Details

ORGANIZATION (Details)	6 Months Ended
ORGANIZATION (Details)	Jun. 30, 2011
ORGANIZATION
Number of operating storage facilities in which the entity has equity interests	680
Number of properties owned by franchisees and third parties	180
Number of operating properties owned and/or managed	860
Number of states in which operating storage facilities are located	34
Number of reportable segments	3
Number of development projects in process	1
Maximum percentage of rental income accounted for by any single tenant (as a percent)	5.00%

FAIR VALUE DISCLOSURES (Details) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash Flow Hedge Swap Agreements	$ (6,748)	$ (6,074)
Recurring basis \| Estimate of Fair Value, Fair Value Disclosure [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash Flow Hedge Swap Agreements	(6,748)
Recurring basis \| Fair Value, Inputs, Level 2 [Member]
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Cash Flow Hedge Swap Agreements	$ (6,748)

FAIR VALUE DISCLOSURES (Details 2) - USD ($) $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Fair Value of Financial Instruments
Note receivable from Preferred Operating Partnership unit holder	$ 100,000	$ 100,000
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value of Financial Instruments
Note receivable from Preferred Operating Partnership unit holder	95,582	115,696
Fixed rate notes payable and notes payable to trusts	791,198	777,575
Exchangeable senior notes	92,383	118,975
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value of Financial Instruments
Note receivable from Preferred Operating Partnership unit holder	100,000	100,000
Fixed rate notes payable and notes payable to trusts	757,921	731,588
Exchangeable senior notes	$ 87,663	$ 87,663

- Definition

Aggregate amount of receivables to be collected from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth, at the financial statement date. which are usually due after one year (or one business cycle).

+ References + Details

NET INCOME PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2011	Dec. 31, 2010
Net income per common share
Exchangeable senior notes	$ 87,663	$ 87,663
Operating Partnership
Net income per common share
Exchangeable senior notes	$ 87,663
Percentage of exchange price used to determine the minimum stock price that must be exceeded for exchangeable notes to be exchanged (as a percent)	130.00%
Exchangeable senior notes exchange price per share (in dollars per share)	$ 23.45
Preferred Operating Partnership
Net income per common share
Exchangeable preferred operating partnership units settled in cash, minimum	$ 115,000

NET INCOME PER COMMON SHARE (Details 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
NET INCOME PER COMMON SHARE
Anti-dilutive share options excluded from computation of earnings per share (in shares)	122,321	1,902,695	99,482	2,387,550
Computation of net income per common share
Net income attributable to common stockholders	$ 10,609	$ 6,180	$ 18,910	$ 9,748
Add: Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership	1,910	1,762	3,754	3,390
Subtract: Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership	(1,437)	(1,437)	(2,875)	(2,875)
Net income for diluted computations	$ 11,082	$ 6,505	$ 19,789	$ 10,263
Weighted average common shares outstanding:
Average number of common shares outstanding - basic (in shares)	91,439,042	87,367,967	89,733,518	87,122,064
Operating Partnership units (in shares)	3,049,935	3,627,368	3,049,935	3,627,368
Preferred Operating Partnership units (in shares)	989,980	989,980	989,980	989,980
Dilutive and cancelled stock options (in shares)	531,891	319,516	562,708	286,738
Average number of common shares outstanding - diluted (in shares)	96,010,848	92,304,831	94,336,141	92,026,150
Net income per common share
Basic (in dollars per share)	$ 0.12	$ 0.07	$ 0.21	$ 0.11
Diluted (in dollars per share)	$ 0.12	$ 0.07	$ 0.21	$ 0.11

PROPERTY ACQUISITIONS (Details) $ in Thousands	1 Months Ended	6 Months Ended
PROPERTY ACQUISITIONS (Details) $ in Thousands	Jan. 31, 2011 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)
Property Acquisitions
Loan Assumed		$ 8,660	$ 6,475
Cash paid to obtain joint venture partner's equity interests in joint venture	$ 320
Utah, Texas, 2 Properties Acquired 4/1/2011
Property Acquisitions
Number of Properties		2
Total Consideration Paid		$ 7,262
Cash Consideration Paid		7,205
Net Liabilities (Assets) Assumed		57
Acquisition Date Fair Value, Land		1,512
Acquisition Date Fair Value, Building		5,548
Acquisition Date Fair Value, Intangible		188
Closing costs - expensed		$ 14
California, 1 Property Acquired 2011/04/07
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 8,207
Cash Consideration Paid		8,150
Net Liabilities (Assets) Assumed		57
Acquisition Date Fair Value, Land		2,211
Acquisition Date Fair Value, Building		5,829
Acquisition Date Fair Value, Intangible		163
Closing costs - expensed		$ 4
Tennessee, 1 Property Acquired 2011/04/15
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 2,577
Cash Consideration Paid		2,514
Net Liabilities (Assets) Assumed		25
Acquisition Date Fair Value, Land		652
Acquisition Date Fair Value, Building		1,791
Acquisition Date Fair Value, Intangible		79
Closing costs - expensed		$ 17
Colorado, 1 Property Acquired 2011/05/25
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 3,540
Cash Consideration Paid		2,262
Loan Assumed		1,290
Net Liabilities (Assets) Assumed		(12)
Acquisition Date Fair Value, Land		407
Acquisition Date Fair Value, Building		3,077
Acquisition Date Fair Value, Intangible		61
Closing costs - expensed		$ (5)
Virginia, 1 Property Acquired 2011/05/26
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 10,513
Cash Consideration Paid		5,205
Loan Assumed		5,463
Net Liabilities (Assets) Assumed		(154)
Acquisition Date Fair Value, Land		932
Acquisition Date Fair Value, Building		9,349
Acquisition Date Fair Value, Intangible		202
Closing costs - expensed		$ 31
New Jersey, 1 Property Acquired 2011/06/02
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 4,963
Cash Consideration Paid		4,959
Net Liabilities (Assets) Assumed		4
Acquisition Date Fair Value, Land		1,644
Acquisition Date Fair Value, Building		3,115
Acquisition Date Fair Value, Intangible		135
Closing costs - expensed		$ 69
Colorado, 1 Property Acquired 2011/06/10
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 4,600
Cash Consideration Paid		2,664
Loan Assumed		1,907
Net Liabilities (Assets) Assumed		29
Acquisition Date Fair Value, Land		296
Acquisition Date Fair Value, Building		4,199
Acquisition Date Fair Value, Intangible		98
Closing costs - expensed		$ 7
Nevada, 1 Property Acquired 2011/06/22
Property Acquisitions
Number of Properties		1
Total Consideration Paid		$ 3,355
Cash Consideration Paid		3,339
Net Liabilities (Assets) Assumed		16
Acquisition Date Fair Value, Land		1,441
Acquisition Date Fair Value, Building		1,810
Acquisition Date Fair Value, Intangible		98
Closing costs - expensed		$ 6
Ohio, Indiana , Kentucky, 15 Properties Acquired 2011/06/27
Property Acquisitions
Number of Properties		15
Total Consideration Paid		$ 39,773
Cash Consideration Paid		39,387
Net Liabilities (Assets) Assumed		386
Acquisition Date Fair Value, Land		13,587
Acquisition Date Fair Value, Building		24,991
Acquisition Date Fair Value, Intangible		903
Closing costs - expensed		$ 292

VARIABLE INTERESTS (Details) $ in Thousands	6 Months Ended
VARIABLE INTERESTS (Details) $ in Thousands	Jun. 30, 2011 USD ($)
Variable Interests in Unconsolidated Real Estate Joint Ventures:
Number of interests in unconsolidated VIE joint ventures	2
Equity interests in unconsolidated VIE joint ventures, low end of range (as a percent)	18.00%
Equity interests in unconsolidated VIE joint ventures, high end of range (as a percent)	39.00%
Voting rights in unconsolidated VIE joint ventures (as a percent)	50.00%
Management fees charged from unconsolidated VIE joint ventures (as a percent)	6.00%
Corporate Joint Venture [Member]
Variable Interests in Unconsolidated Real Estate Joint Ventures:
Investment balance	$ 352
Balance of guaranteed loan	9,145
Payables to company	8,563
Maximum exposure to loss	18,060
Difference	(18,060)
Extra Space of Montrose Avenue LLC
Variable Interests in Unconsolidated Real Estate Joint Ventures:
Investment balance	1,214
Balance of guaranteed loan	4,838
Payables to company	2,469
Maximum exposure to loss	8,521
Difference	(8,521)
Extra Space of Sacramento One LLC
Variable Interests in Unconsolidated Real Estate Joint Ventures:
Investment balance	(862)
Balance of guaranteed loan	4,307
Payables to company	6,094
Maximum exposure to loss	9,539
Difference	$ (9,539)

VARIABLE INTERESTS (Details 2) $ in Thousands	Jun. 30, 2011 USD ($)	Dec. 31, 2010 USD ($)
VARIABLE INTERESTS
Number of wholly-owned unconsolidated subsidiaries	3
Comparison of the liability balance and the maximum exposure to loss related to trusts
Notes payable to trusts	$ 119,590	$ 119,590
The Trusts
Comparison of the liability balance and the maximum exposure to loss related to trusts
Notes payable to trusts	119,590
Investment balance	3,590
Maximum exposure to loss	116,000
Trust
Comparison of the liability balance and the maximum exposure to loss related to trusts
Notes payable to trusts	36,083
Investment balance	1,083
Maximum exposure to loss	35,000
Trust II
Comparison of the liability balance and the maximum exposure to loss related to trusts
Notes payable to trusts	42,269
Investment balance	1,269
Maximum exposure to loss	41,000
Trust III
Comparison of the liability balance and the maximum exposure to loss related to trusts
Notes payable to trusts	41,238
Investment balance	1,238
Maximum exposure to loss	$ 40,000

DERIVATIVES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
DERIVATIVES (Details) - USD ($) $ in Thousands	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
DERIVATIVES
Notional amount of cash flow hedge swap agreements, low end of range	$ 8,462		$ 8,462
Notional amount of cash flow hedge swap agreements, high end of range	$ 63,000		$ 63,000
Strike rate cash flow hedge swap agreements, low end of range (as a percent)	4.24%		4.24%
Strike rate cash flow hedge swap agreements, high end of range (as a percent)	6.98%		6.98%
Cash flow hedge swap agreements increase (decrease) in interest expenses due to interest payments	$ (1,365)	$ (640)	$ (2,014)	$ (1,272)
Cash flow hedge swap agreements gain (loss) recognized in OCI			(674)
Cash flow hedge swap agreements gain (loss) reclassified from OCI			(2,014)
Fair value of cash flow hedge swap agreements	$ (6,748)		$ (6,748)		$ (6,074)

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS (Details) - USD ($) $ in Thousands	1 Months Ended
	Jun. 30, 2007	Jun. 30, 2011	Dec. 31, 2010	Jun. 25, 2007
Noncontrolling interest represented by preferred operating partnership units
Loan to holders of preferred OP units		$ 100,000	$ 100,000
Preferred Operating Partnership
Noncontrolling interest represented by preferred operating partnership units
Number of self-storage facilities (properties) acquired	10
Preferred OP units (in units)	989,980
Loan to holders of preferred OP units				$ 100,000
Note receivable interest rate (as a percent)	4.85%
Maximum number of preferred OP units converted prior to the maturity date of the loan (in units)	114,500
Fixed priority return on preferred OP units, amount		$ 115,000
Fixed priority return on preferred OP units, stated return rate (as a percent)		5.00%
Fixed priority return on preferred OP units, liquidation value		$ 115,000

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP (Details) - Operating Partnership $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2011 USD ($) $ / shares shares
Noncontrolling interest in operating partnership
Ownership interest held by entity (as a percent)	95.90%
Noncontrolling interest in operating partnership (as a percent)	4.10%
Common OP units outstanding (in units) \| shares	3,049,935
Number of days used as a denomination to determine the average closing price of common stock (in days)	10
Common OP units conversion basis	one-for-one basis
Ten day average closing stock price (in dollars per share) \| $ / shares	$ 20.66
Cash consideration on redemption of common OP units \| $	$ 63,012

OTHER NONCONTROLLING INTERESTS (Details) - Other noncontrolling interests.	Jun. 30, 2011
Other Noncontrolling Interests
Number of consolidated self-storage properties	3
Number of consolidated self-storage properties under development	2
Number of consolidated self-storage properties under lease-up stage	1
Ownership interests of third party owners, low end of range (as a percent)	5.00%
Ownership interests of third party owners, high end of range (as a percent)	27.60%

STOCK OFFERING (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	May 31, 2011	Jun. 30, 2011	May 17, 2011
STOCK OFFERING
Issuance of common stock (in shares)	5,335,423
Price per share of common stock issued during period (in dollars per share)			$ 21.16
Gross proceeds from issuance of common stock	$ 112,898
Transaction costs of stock issuance	366
Net proceeds from issuance of common stock	$ 112,532	$ 112,532

SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT INFORMATION (Details) $ in Thousands	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2010 USD ($)	Dec. 31, 2010 USD ($)
Segment Information
Number of reportable segments			3
Balance Sheet
Investments in real estate ventures	$ 137,997		$ 137,997		$ 140,560
Total assets	2,310,857		2,310,857		2,248,468
Statement of Operations
Total revenues	78,040	$ 68,777	152,521	$ 136,364
Operating expenses, including depreciation and amortization	52,188	45,971	102,639	92,695
Income (loss) from operations	25,852	22,806	49,882	43,669
Interest expense	(16,701)	(16,649)	(33,543)	(34,327)
Interest income	189	211	371	536
Interest income on note receivable from Preferred Operating Partnership unit holder	1,212	1,212	2,425	2,425
Equity in earnings of real estate ventures	2,376	1,559	4,187	3,060
Income tax expense	(411)	(1,214)	(665)	(2,259)
Net income (loss)	12,517	7,925	22,657	13,104
Depreciation and amortization expense
Total depreciation and amortization expense	14,092	12,202	27,677	24,621
Statement of Cash Flows
Acquisition of real estate assets			(82,071)	(16,460)
Development and construction of real estate assets			(4,494)	(18,306)
Property management, acquisition and development
Balance Sheet
Total assets	350,243		350,243		400,910
Statement of Operations
Total revenues	6,144	5,653	12,111	11,205
Operating expenses, including depreciation and amortization	14,854	11,855	27,536	23,422
Income (loss) from operations	(8,710)	(6,202)	(15,425)	(12,217)
Interest expense	(823)	(790)	(1,605)	(1,577)
Interest income	187	209	366	531
Interest income on note receivable from Preferred Operating Partnership unit holder	1,212	1,212	2,425	2,425
Net income (loss)	(8,134)	(5,571)	(14,239)	(10,838)
Depreciation and amortization expense
Total depreciation and amortization expense	852	484	1,627	925
Statement of Cash Flows
Acquisition of real estate assets			(82,071)	(16,460)
Development and construction of real estate assets			(4,494)	(18,306)
Rental operations
Balance Sheet
Investments in real estate ventures	137,997		137,997		140,560
Total assets	1,939,044		1,939,044		1,831,150
Statement of Operations
Total revenues	64,300	56,786	125,790	112,929
Operating expenses, including depreciation and amortization	35,952	32,659	72,106	66,593
Income (loss) from operations	28,348	24,127	53,684	46,336
Interest expense	(15,878)	(15,859)	(31,938)	(32,750)
Equity in earnings of real estate ventures	2,376	1,559	4,187	3,060
Net income (loss)	14,846	9,827	25,933	16,646
Depreciation and amortization expense
Total depreciation and amortization expense	13,240	11,718	26,050	23,696
Tenant reinsurance
Balance Sheet
Total assets	21,570		21,570		$ 16,408
Statement of Operations
Total revenues	7,596	6,338	14,620	12,230
Operating expenses, including depreciation and amortization	1,382	1,457	2,997	2,680
Income (loss) from operations	6,214	4,881	11,623	9,550
Interest income	2	2	5	5
Income tax expense	(411)	(1,214)	(665)	(2,259)
Net income (loss)	$ 5,805	$ 3,669	$ 10,963	$ 7,296

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2011 USD ($)
ESS Baltimore LLC
Commitments And Contingencies
Guaranteed loan amount	$ 4,072
Estimated fair market value of assets	6,735
Extra Space of Montrose Avenue LLC
Commitments And Contingencies
Guaranteed loan amount	4,838
Estimated fair market value of assets	8,500
Extra Space of Sacramento One LLC
Commitments And Contingencies
Guaranteed loan amount	4,307
Estimated fair market value of assets	$ 9,826

SUBSEQUENT EVENTS $ in Thousands	Aug. 02, 2011 USD ($)	Aug. 01, 2011 USD ($)	Jul. 08, 2011 USD ($)	Jun. 30, 2011
Subsequent event
Number of properties purchased				680
Acquisition \| Maryland 1 Property Member
Subsequent event
Number of properties purchased		1	1
Total Consideration Paid		$ 7,250	$ 5,650
Acquisition \| Texas 1 property acquired
Subsequent event
Number of properties purchased	1
Total Consideration Paid	$ 2,400

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2011	Jul. 30, 2011
Document and Entity Information
Entity Registrant Name	Extra Space Storage Inc.
Entity Central Index Key	0001289490
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		94,264,593
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

Label	Element	Value
Conversion of Stock, Amount Converted	us-gaap_ConversionOfStockAmountConverted1	$ 0
Conversion of Stock, Amount Converted	us-gaap_ConversionOfStockAmountConverted1	$ 0