Extra Space Storage Releases 4th Quarter and Year-End Results

Posted on Feb 22 2010 - 3:20pm by Kim Kilpatrick

Extra Space Storage released its 4th quarter and year-end results today. Compared to other self-storage REITs, Extra Space did fairly well in 2009, industry analysts observed. Reporting just before the release of the 4th quarter report, Learning Markets, a resource for investors who are just beginning to learn about investing, used Extra Space’s performance as an example of a company that is leading the way in its industry, noting that Extra Space stock has gone up 8.25 percent in the last quarter, while the REIT industry has gained only about 1.39 percent in the same period. 

Highlights from Extra Space’s fourth quarter and year-end report were as follows:

  • Extra Space achieved funds from operations (“FFO”) of $0.22 per diluted share, including development dilution of $0.03 per share. The adjusted FFO was $0.23 per share (approximately $0.01 of non-recurring severance charges associated with Extra Space’s closing its Memphis, Tennessee marketing operations were excluded from this figure). 
  • Extra Space’s same-store revenue and net operating income (“NOI”) decreased by 4.0 percent and 6.9 percent, respectively, compared to the last quarter of 2008. 
  • Extra Space strengthened its balance sheet by securing $63 million in debt financing.
  • Extra Space developed four new self-storage properties that together cost $36 million. 
  • Extra Space declared and paid its shareholders a dividend of $0.13 per common share. 
Looking at the year’s end result, Extra Space’s Chairman and CEO, Spencer Kirk, commented on how well Extra Space had weathered the economic decline, noting,

 “Despite the challenging environment, we realized numerous achievements in 2009. These include improving our balance sheet, maximizing our property performance and expanding our operational footprint by 10 percent.” Kirk went on, “As we look to 2010 and beyond, we are more optimistic as occupancy and rental rates strengthen. We are also encouraged about the options available for Extra Space to grow in an intelligent manner through our third-party management program and potential acquisition opportunities.”