exr-20200630
false2020Q2000128949012/310.0109700012894902020-01-012020-06-30xbrli:shares00012894902020-07-31iso4217:USD00012894902020-06-3000012894902019-12-31iso4217:USDxbrli:shares00012894902020-04-012020-06-3000012894902019-04-012019-06-3000012894902019-01-012019-06-300001289490exr:PreferredOperatingPartnershipMember2018-12-310001289490exr:CommonOperatingPartnershipMember2018-12-310001289490exr:NonControllingInterestOtherMember2018-12-310001289490us-gaap:CommonStockMember2018-12-310001289490us-gaap:AdditionalPaidInCapitalMember2018-12-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001289490us-gaap:RetainedEarningsMember2018-12-3100012894902018-12-310001289490us-gaap:CommonStockMember2019-01-012019-03-310001289490us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-3100012894902019-01-012019-03-310001289490exr:CommonOperatingPartnershipMember2019-01-012019-03-310001289490exr:PreferredOperatingPartnershipMember2019-01-012019-03-310001289490exr:NonControllingInterestOtherMember2019-01-012019-03-310001289490us-gaap:RetainedEarningsMember2019-01-012019-03-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001289490exr:PreferredOperatingPartnershipMember2019-03-310001289490exr:CommonOperatingPartnershipMember2019-03-310001289490exr:NonControllingInterestOtherMember2019-03-310001289490us-gaap:CommonStockMember2019-03-310001289490us-gaap:AdditionalPaidInCapitalMember2019-03-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001289490us-gaap:RetainedEarningsMember2019-03-3100012894902019-03-310001289490us-gaap:CommonStockMember2019-04-012019-06-300001289490us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001289490exr:CommonOperatingPartnershipMember2019-04-012019-06-300001289490exr:PreferredOperatingPartnershipMember2019-04-012019-06-300001289490exr:NonControllingInterestOtherMember2019-04-012019-06-300001289490us-gaap:RetainedEarningsMember2019-04-012019-06-300001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001289490exr:PreferredOperatingPartnershipMember2019-06-300001289490exr:CommonOperatingPartnershipMember2019-06-300001289490exr:NonControllingInterestOtherMember2019-06-300001289490us-gaap:CommonStockMember2019-06-300001289490us-gaap:AdditionalPaidInCapitalMember2019-06-300001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001289490us-gaap:RetainedEarningsMember2019-06-3000012894902019-06-300001289490exr:PreferredOperatingPartnershipMember2019-12-310001289490exr:CommonOperatingPartnershipMember2019-12-310001289490exr:NonControllingInterestOtherMember2019-12-310001289490us-gaap:CommonStockMember2019-12-310001289490us-gaap:AdditionalPaidInCapitalMember2019-12-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001289490us-gaap:RetainedEarningsMember2019-12-310001289490us-gaap:CommonStockMember2020-01-012020-03-310001289490us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-3100012894902020-01-012020-03-310001289490us-gaap:RetainedEarningsMember2020-01-012020-03-310001289490exr:CommonOperatingPartnershipMember2020-01-012020-03-310001289490exr:PreferredOperatingPartnershipMember2020-01-012020-03-310001289490exr:NonControllingInterestOtherMember2020-01-012020-03-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001289490exr:PreferredOperatingPartnershipMember2020-03-310001289490exr:CommonOperatingPartnershipMember2020-03-310001289490exr:NonControllingInterestOtherMember2020-03-310001289490us-gaap:CommonStockMember2020-03-310001289490us-gaap:AdditionalPaidInCapitalMember2020-03-310001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001289490us-gaap:RetainedEarningsMember2020-03-3100012894902020-03-310001289490us-gaap:CommonStockMember2020-04-012020-06-300001289490us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001289490us-gaap:RetainedEarningsMember2020-04-012020-06-300001289490exr:CommonOperatingPartnershipMember2020-04-012020-06-300001289490exr:PreferredOperatingPartnershipMember2020-04-012020-06-300001289490exr:NonControllingInterestOtherMember2020-04-012020-06-300001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001289490exr:PreferredOperatingPartnershipMember2020-06-300001289490exr:CommonOperatingPartnershipMember2020-06-300001289490exr:NonControllingInterestOtherMember2020-06-300001289490us-gaap:CommonStockMember2020-06-300001289490us-gaap:AdditionalPaidInCapitalMember2020-06-300001289490us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001289490us-gaap:RetainedEarningsMember2020-06-300001289490exr:ContributionOfPreferredOperatingPartnershipUnitstoEquityMethodInvestmentMember2020-01-012020-06-300001289490exr:ContributionOfPreferredOperatingPartnershipUnitstoEquityMethodInvestmentMember2019-01-012019-06-30exr:storeexr:state0001289490us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001289490us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2020-06-300001289490us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-30exr:land_parcel0001289490us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-300001289490us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-06-300001289490us-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001289490us-gaap:CarryingReportedAmountFairValueDisclosureMember2019-12-310001289490us-gaap:EmployeeStockOptionMember2019-01-012019-06-300001289490us-gaap:EmployeeStockOptionMember2020-04-012020-06-300001289490us-gaap:EmployeeStockOptionMember2019-04-012019-06-300001289490us-gaap:EmployeeStockOptionMember2020-01-012020-06-300001289490us-gaap:CommonStockMember2020-04-012020-06-300001289490us-gaap:CommonStockMember2019-04-012019-06-300001289490us-gaap:CommonStockMember2020-01-012020-06-300001289490us-gaap:CommonStockMember2019-01-012019-06-300001289490exr:SeriesAUnitsMember2020-04-012020-06-300001289490exr:SeriesAUnitsMember2019-04-012019-06-300001289490exr:SeriesAUnitsMember2020-01-012020-06-300001289490exr:SeriesAUnitsMember2019-01-012019-06-300001289490exr:SeriesBUnitsMember2020-04-012020-06-300001289490exr:SeriesBUnitsMember2019-04-012019-06-300001289490exr:SeriesBUnitsMember2020-01-012020-06-300001289490exr:SeriesBUnitsMember2019-01-012019-06-300001289490exr:SeriesDUnitsMember2020-04-012020-06-300001289490exr:SeriesDUnitsMember2019-04-012019-06-300001289490exr:SeriesDUnitsMember2020-01-012020-06-300001289490exr:SeriesDUnitsMember2019-01-012019-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2020-06-30xbrli:pure0001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2020-04-012020-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2020-01-012020-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2019-01-012019-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2019-04-012019-06-300001289490exr:SeriesAUnitsMember2020-06-30exr:property0001289490exr:PREXRSelfStorageLLCMember2020-06-300001289490exr:PREXRSelfStorageLLCMember2019-12-310001289490exr:WICNNJVLLCMember2020-06-300001289490exr:WICNNJVLLCMember2019-12-310001289490exr:VRSSelfStorageLLCMember2020-06-300001289490exr:VRSSelfStorageLLCMember2019-12-310001289490exr:ESSNYFLJVLPMember2020-06-300001289490exr:ESSNYFLJVLPMember2019-12-310001289490exr:GFNJVLLCMember2020-06-300001289490exr:GFNJVLLCMember2019-12-310001289490exr:PRISASelfStorageLLCMember2020-06-300001289490exr:PRISASelfStorageLLCMember2019-12-310001289490exr:AlanJathooJVLLCMember2020-06-300001289490exr:AlanJathooJVLLCMember2019-12-310001289490exr:StoragePortfolioIIIJVLLCMember2020-06-300001289490exr:StoragePortfolioIIIJVLLCMember2019-12-310001289490exr:ESSBristolInvestmentsLLCMember2020-06-300001289490exr:ESSBristolInvestmentsLLCMember2019-12-310001289490exr:ExtraSpaceNorthernPropertiesSixLLCMember2020-06-300001289490exr:ExtraSpaceNorthernPropertiesSixLLCMember2019-12-310001289490exr:StoragePortfolioIIJVLLCMember2020-06-300001289490exr:StoragePortfolioIIJVLLCMember2019-12-310001289490exr:StoragePortfolioILLCMember2020-06-300001289490exr:StoragePortfolioILLCMember2019-12-310001289490exr:OtherMinorityOwnedPropertiesMember2020-06-300001289490srt:MinimumMember2020-06-300001289490srt:MaximumMember2020-06-300001289490exr:OtherMinorityOwnedPropertiesMember2019-12-310001289490exr:SmartStopSelfStorageREITIncSeriesAConvertiblePreferredStockMember2020-06-300001289490exr:SmartStopSelfStorageREITIncSeriesAConvertiblePreferredStockMember2019-12-310001289490exr:SmartStopSelfStorageREITIncSeriesAConvertiblePreferredStockMember2019-10-012019-10-310001289490exr:SmartStopSelfStorageREITIncSeriesAConvertiblePreferredStockMember2019-10-31exr:subsidiary00012894902017-12-310001289490us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2018-01-012018-12-310001289490us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2018-12-310001289490us-gaap:TrustPreferredSecuritiesSubjectToMandatoryRedemptionMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-01-012019-01-31exr:joint_ventureexr:derivative0001289490us-gaap:OtherAssetsMember2020-06-300001289490us-gaap:OtherAssetsMember2019-12-310001289490us-gaap:OtherLiabilitiesMember2020-06-300001289490us-gaap:OtherLiabilitiesMember2019-12-310001289490us-gaap:InterestRateSwapMember2020-04-012020-06-300001289490us-gaap:InterestRateSwapMember2019-04-012019-06-300001289490us-gaap:InterestRateSwapMember2020-01-012020-06-300001289490us-gaap:InterestRateSwapMember2019-01-012019-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2015-12-310001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2015-09-012015-09-300001289490srt:MinimumMemberexr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMember2020-01-012020-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMembersrt:MaximumMember2020-01-012020-06-30exr:day0001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMemberus-gaap:SeniorNotesMember2020-06-300001289490exr:ExchangeableSeniorNotesThreePointOneTwoFivePercentDueTwoThousandAndThirtyFiveMemberus-gaap:SeniorNotesMember2019-12-310001289490exr:AtTheMarketEquityDistributionAgreementMember2019-05-152019-05-15exr:sales_agent00012894902019-05-152019-05-150001289490exr:AtTheMarketEquityDistributionAgreementMember2020-01-012020-06-300001289490exr:AtTheMarketEquityDistributionAgreementMember2020-06-3000012894902017-11-082017-11-0800012894902017-11-080001289490exr:SeriesAUnitsMember2014-10-310001289490exr:SeriesAUnitsMember2017-04-182017-04-180001289490exr:SeriesAUnitsMember2007-06-300001289490exr:HoldersOfSeriesAPreferredOperatingPartnershipUnitsMemberexr:SeriesAUnitsMember2014-10-012014-10-310001289490exr:HoldersOfSeriesAPreferredOperatingPartnershipUnitsMemberexr:SeriesAUnitsMember2007-06-250001289490exr:HoldersOfSeriesAPreferredOperatingPartnershipUnitsMemberexr:SeriesAUnitsMember2017-04-182017-04-180001289490exr:SeriesBUnitsMember2020-06-300001289490exr:SeriesBUnitsMember2020-01-012020-06-300001289490exr:SeriesCUnitsMember2020-06-300001289490exr:SeriesCUnitsMember2020-01-012020-06-3000012894902014-12-012014-12-310001289490exr:SeriesCUnitsMember2018-12-012018-12-010001289490exr:CommonOperatingPartnershipMember2018-12-012018-12-010001289490exr:SeriesCUnitsMember2019-04-252019-04-250001289490exr:CommonOperatingPartnershipMember2019-04-252019-04-250001289490exr:SeriesDUnitsMember2019-01-012019-06-300001289490exr:SeriesDUnitsMember2020-06-300001289490srt:MinimumMemberexr:SeriesDUnitsMember2020-01-012020-06-300001289490exr:SeriesDUnitsMembersrt:MaximumMember2020-01-012020-06-300001289490exr:SeriesDUnitsMember2020-01-012020-06-300001289490exr:CommonOperatingPartnershipMember2020-01-012020-06-300001289490exr:CommonOperatingPartnershipMember2020-06-300001289490us-gaap:CommonStockMember2020-01-012020-06-300001289490exr:NonControllingInterestOtherMember2020-06-300001289490exr:NonControllingInterestOtherMemberexr:JointVentureOneMember2020-06-300001289490exr:JointVentureTwoMemberexr:NonControllingInterestOtherMember2020-06-30exr:segment0001289490exr:SelfStorageOperationsMemberus-gaap:OperatingSegmentsMember2020-04-012020-06-300001289490exr:SelfStorageOperationsMemberus-gaap:OperatingSegmentsMember2019-04-012019-06-300001289490exr:SelfStorageOperationsMemberus-gaap:OperatingSegmentsMember2020-01-012020-06-300001289490exr:SelfStorageOperationsMemberus-gaap:OperatingSegmentsMember2019-01-012019-06-300001289490us-gaap:OperatingSegmentsMemberexr:TenantReinsuranceMember2020-04-012020-06-300001289490us-gaap:OperatingSegmentsMemberexr:TenantReinsuranceMember2019-04-012019-06-300001289490us-gaap:OperatingSegmentsMemberexr:TenantReinsuranceMember2020-01-012020-06-300001289490us-gaap:OperatingSegmentsMemberexr:TenantReinsuranceMember2019-01-012019-06-300001289490us-gaap:OperatingSegmentsMember2020-04-012020-06-300001289490us-gaap:OperatingSegmentsMember2019-04-012019-06-300001289490us-gaap:OperatingSegmentsMember2020-01-012020-06-300001289490us-gaap:OperatingSegmentsMember2019-01-012019-06-300001289490exr:CommitmentToAcquireRetailSpaceMember2020-06-300001289490exr:CommitmentToAcquireRetailSpaceWithJointVenturePartnersExpectedToCloseRemainderOfFiscalYearMember2020-06-300001289490exr:CommitmentToAcquireRetailSpaceWithJointVenturePartnersMember2020-06-300001289490exr:CommitmentToAcquireRetailSpaceWithJointVenturePartnersExpectedToCloseCurrentFiscalYearMember2020-06-300001289490us-gaap:SubsequentEventMember2020-07-310001289490us-gaap:SubsequentEventMember2020-07-012020-07-310001289490us-gaap:SubsequentEventMember2020-07-012020-08-05

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     .
Commission File Number: 001-32269
EXTRA SPACE STORAGE INC.
(Exact name of registrant as specified in its charter) 

Maryland 20-1076777
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)

2795 East Cottonwood Parkway, Suite 300
Salt Lake City, Utah 84121
(Address of principal executive offices)

Registrant’s telephone number, including area code: (801365-4600

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934
Title of each classTrading symbolName of each exchange on which registered
Common Stock, $0.01 par valueEXRNew York Stock Exchange

 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  x    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act:
Large accelerated filer x  Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company

1


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  x

The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, as of July 31, 2020, was 129,069,911.
2

Table of Contents
EXTRA SPACE STORAGE INC.

TABLE OF CONTENTS
 

3


STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information presented in this report contains “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “estimates,” “may,” “will,” “should,” “anticipates” or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements.

All forward-looking statements, including without limitation, management’s examination of historical operating trends and estimates of future earnings, are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this report. Any forward-looking statements should be considered in light of the risks referenced in “Part II. Item 1A. Risk Factors” below and in “Part I. Item 1A. Risk Factors” included in our most recent Annual Report on Form 10-K. Such factors include, but are not limited to:
 
adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
failure to close pending acquisitions and developments on expected terms, or at all;
the effect of competition from new and existing stores or other storage alternatives, which could cause rents and occupancy rates to decline;
potential liability for uninsured losses and environmental contamination;
the impact of the regulatory environment as well as national, state, and local laws and regulations including, without limitation, those governing real estate investment trusts (“REITs”), tenant reinsurance and other aspects of our business, which could adversely affect our results;
disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
impacts from the COVID-19 pandemic or the future outbreak of other highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;
increased interest rates;
reductions in asset valuations and related impairment charges;
our lack of sole decision-making authority with respect to our joint venture investments;
the effect of recent or future changes to U.S. tax laws;
the failure to maintain our REIT status for U.S. federal income tax purposes; and
economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan.
The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These beliefs, assumptions and expectations are subject to risks and uncertainties and can change as a result of many possible events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. You should carefully consider these risks before you make an investment decision with respect to our securities.

We disclaim any duty or obligation to update or revise any forward-looking statements set forth in this report to reflect new information, future events or otherwise.
4


PART I.  FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Extra Space Storage Inc.
Condensed Consolidated Balance Sheets
(amounts in thousands, except share data)
 
June 30, 2020December 31, 2019
(unaudited)
Assets:
Real estate assets, net$7,673,724  $7,696,864  
Real estate assets - operating lease right-of-use assets261,304  264,643  
Investments in unconsolidated real estate entities344,177  338,054  
Cash and cash equivalents56,397  65,746  
Restricted cash 5,354  4,987  
Other assets, net188,938  162,083  
Total assets $8,529,894  $8,532,377  
Liabilities, Noncontrolling Interests and Equity:
Notes payable, net$4,300,744  $4,318,973  
Exchangeable senior notes, net573,154  569,513  
Revolving lines of credit207,000  158,000  
Operating lease liabilities271,875  274,783  
Cash distributions in unconsolidated real estate ventures46,100  45,264  
Accounts payable and accrued expenses132,257  111,382  
Other liabilities253,246  132,768  
Total liabilities 5,784,376  5,610,683  
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders' equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding
    
Common stock, $0.01 par value, 500,000,000 shares authorized, 129,069,555 and 129,534,407 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively
1,291  1,295  
Additional paid-in capital2,884,940  2,868,681  
Accumulated other comprehensive loss(119,256) (28,966) 
Accumulated deficit(391,285) (301,049) 
Total Extra Space Storage Inc. stockholders' equity2,375,690  2,539,961  
Noncontrolling interest represented by Preferred Operating Partnership units, net 172,542  175,948  
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests197,286  205,785  
Total noncontrolling interests and equity2,745,518  2,921,694  
Total liabilities, noncontrolling interests and equity$8,529,894  $8,532,377  

See accompanying notes to unaudited condensed consolidated financial statements.
5


Extra Space Storage Inc.
Condensed Consolidated Statements of Operations
(amounts in thousands, except share data)
(unaudited)

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2020201920202019
Revenues:
Property rental$279,312  $279,584  $566,015  $550,587  
Tenant reinsurance35,078  31,701  68,691  61,498  
Management fees and other income12,856  12,317  24,992  23,063  
Total revenues327,246  323,602  659,698  635,148  
Expenses:
Property operations89,040  80,870  179,337  159,635  
Tenant reinsurance 6,858  6,982  13,536  13,949  
General and administrative25,337  23,351  48,348  46,029  
Depreciation and amortization56,018  54,406  111,293  109,065  
Total expenses177,253  165,609  352,514  328,678  
Gain on real estate transactions  1,205    1,205  
Income from operations149,993  159,198  307,184  307,675  
Interest expense(41,039) (47,448) (85,397) (94,808) 
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes(1,233) (1,185) (2,442) (2,347) 
Interest income1,669  1,718  3,343  3,106  
Income before equity in earnings of unconsolidated real estate ventures and income tax expense109,390  112,283  222,688  213,626  
Equity in earnings and dividend income from unconsolidated real estate entities5,044  3,121  10,087  5,751  
Income tax expense(3,177) (2,715) (5,356) (4,528) 
Net income111,257  112,689  227,419  214,849  
Net income allocated to Preferred Operating Partnership noncontrolling interests(3,139) (3,128) (6,250) (6,291) 
Net income allocated to Operating Partnership and other noncontrolling interests(5,207) (4,733) (10,079) (8,960) 
Net income attributable to common stockholders$102,911  $104,828  $211,090  $199,598  
Earnings per common share
Basic $0.80  $0.82  $1.63  $1.56  
Diluted $0.80  $0.81  $1.63  $1.55  
Weighted average number of shares
Basic128,932,152  127,585,436  129,110,131  127,349,299  
Diluted129,082,468  135,654,761  129,285,675  135,166,456  
Cash dividends paid per common share$0.90  $0.90  $1.80  $1.76  

See accompanying notes to unaudited condensed consolidated financial statements.
6

Extra Space Storage Inc.
Condensed Consolidated Statements of Comprehensive Income
(amounts in thousands)
(unaudited)

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2020201920202019
Net income$111,257  $112,689  $227,419  $214,849  
Other comprehensive income (loss):
   Change in fair value of interest rate swaps(5,728) (41,302) (94,972) (65,295) 
Total comprehensive income105,529  71,387  132,447  149,554  
   Less: comprehensive income attributable to noncontrolling interests8,034  5,842  11,647  12,082  
Comprehensive income attributable to common stockholders$97,495  $65,545  $120,800  $137,472  


See accompanying notes to unaudited condensed consolidated financial statements.
7

Extra Space Storage Inc.
Condensed Consolidated Statement of Noncontrolling Interests and Equity
(amounts in thousands, except share data)
(unaudited)


 Noncontrolling InterestsExtra Space Storage Inc. Stockholders' Equity 
       
 Preferred Operating PartnershipOperating PartnershipOtherSharesPar ValueAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Noncontrolling Interests and Equity
Balances at December 31, 2018$153,096  $218,362  $240  127,103,750  $1,271  $2,640,705  $34,650  $(262,902) $2,785,422  
Issuance of common stock upon the exercise of options—  —  —  169,021  3  1,754  —  —  1,757  
Restricted stock grants issued—  —  —  35,022  —  —  —  —  —  
Restricted stock grants cancelled—  —  —  (1,244) —  —  —  —  —  
Compensation expense related to stock-based awards—  —  —  —  —  2,954  —  —  2,954  
Redemption of Operating Partnership units for stock—  (3,310) —  85,501  —  3,310  —  —  —  
Issuance of Preferred D Units in the Operating Partnership in conjunction with acquisitions23,447  —  —  —  —  —  —  —  23,447  
Net income (loss)3,164  4,235  (9) —  —  —  —  94,770  102,160  
Other comprehensive loss(147) (1,003) —  —  —  —  (22,843) —  (23,993) 
Distributions to Operating Partnership units held by noncontrolling interests(3,296) (5,116) —  —  —  —  —  —  (8,412) 
Dividends paid on common stock at $0.86 per share
—  —  —  —  —  —  —  (109,523) (109,523) 
Balances at March 31, 2019$176,264  $213,168  $231  127,392,050  $1,274  $2,648,723  $11,807  $(277,655) $2,773,812  
8

Extra Space Storage Inc.
Condensed Consolidated Statement of Noncontrolling Interests and Equity
(amounts in thousands, except share data)
(unaudited)

 Noncontrolling InterestsExtra Space Storage Inc. Stockholders' Equity 
       
 Preferred Operating PartnershipOperating PartnershipOtherSharesPar ValueAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Noncontrolling Interests and Equity
Balances at March 31, 2019$176,264  $213,168  $231  127,392,050  $1,274  $2,648,723  $11,807  $(277,655) $2,773,812  
Issuance of common stock upon the exercise of options—  —  —  17,042    468  —  —  468  
Restricted stock grants issued—  —  —  53,789  2  —  —  —  2  
Restricted stock grants cancelled—  —  —  (4,786) —  —  —  —  —  
Issuance of common stock, net of offering costs—  —  —  930,000  9  98,787  —  —  98,796  
Compensation expense related to stock-based awards—  —  —  —  —  3,998  —  —  3,998  
Redemption of Operating Partnership units for stock—  (4,823) —  125,000  —  4,823  —  —  —  
Issuance of Preferred D Units in the Operating Partnership in conjunction with acquisitions4,575  —  —  —  —  —  —  —  4,575  
Noncontrolling interest in consolidated joint venture—  —  50  —  —  —  —  —  50  
Conversion of Preferred C Units in the Operating Partnership for Common Operating Partnership Units(4,374) 4,374  —  —  —  —  —  —  —  
Net income (loss)3,129  4,754  (22) —  —  —  —  104,828  112,689  
Other comprehensive loss(254) (1,765) —  —  —  —  (39,283) (41,302) 
Distributions to Operating Partnership units held by noncontrolling interests(3,232) (5,473) —  —  —  —  —  —  (8,705) 
Dividends paid on common stock at $0.90 per share
—  —  —  —  —  —  —  (115,572) (115,572) 
Balances at June 30, 2019$176,108  $210,235  $259  128,513,095  $1,285  $2,756,799  $(27,476) $(288,399) $2,828,811  


9

Extra Space Storage Inc.
Condensed Consolidated Statement of Noncontrolling Interests and Equity
(amounts in thousands, except share data)
(unaudited)

Noncontrolling InterestExtra Space Storage Inc. Stockholders' Equity
Preferred Operating PartnershipOperating PartnershipOtherSharesPar ValueAdditional Paid-in CapitalAccumulated Other Comprehensive IncomeAccumulated DeficitTotal Noncontrolling Interests and Equity
Balances at December 31, 2019$175,948  $205,419  $366  129,534,407  $1,295  $2,868,681  $(28,966) $(301,049) $2,921,694  
Issuance of common stock upon the exercise of options—  —  —  77,400  1  943  —  —  944  
Issuance of common stock in connection with share based compensation—  —  —  73,602  1  2,979  —  —  2,980  
Restricted stock grants cancelled—  —  —  (1,767) —  —  —  —    
Buyback of common stock, net of offering costs—  —  —  (653,597) (7) —  —  (52,197) (52,204) 
Redemption of Operating Partnership units for stock—  (330) —  8,862  —  330  —  —    
Net income (loss)3,112  4,877  (6) —  —  —  —  108,179  116,162  
Other comprehensive loss(563) (3,807) —  —  —  —  (84,874) —  (89,244) 
Distributions to Operating Partnership units held by noncontrolling interests(3,178) (5,327) —  —  —  —  —  —  (8,505) 
Dividends paid on common stock at $0.90 per share
—  —  —  —  —  —  —  (117,197) (117,197) 
Balances at March 31, 2020$175,319  $200,832  $360  129,038,907  $1,290  $2,872,933  $(113,840) $(362,264) $2,774,630  
Issuance of common stock upon the exercise of options—  —  —  13,610    726  —  —  726  
Issuance of common stock in connection with share based compensation—  —  —  60,032  1  4,883  —  —  4,884  
Restricted stock grants cancelled—  —  —  (889) —  —  —  —    
Buyback of common stock, net of offering costs—  —  —  (172,600) (1) —  —  (15,614) (15,615) 
Redemption of Operating Partnership units for stock—  (3,675) —  100,000  1  3,674  —  —    
Redemption of Preferred D Units in the Operating Partnership for Stock(2,724) —  —  30,495  —  2,724  —  —  —  
Noncontrolling interest in consolidated joint venture—  —  68  —  —  —  —  —  68