Second Quarter 2011 Operating Results Released for Extra Space Storage

Posted on Jul 29 2011 - 11:36am by John Stevens

Continuing to show strong growth, Extra Space Storage Inc. (NYSE: EXR), a leading operator of self storage properties in the United States, announced operating results for the three and six months ended June 30, 2011.

Highlights for the Three Months Ended June 30, 2011 include:

• Achieved funds from operations (“FFO”) of $0.27 per diluted share including development dilution of $0.02 per share resulting in approximately 22% year-over-year growth for the quarter.
• Grew same-store occupancy by 290 basis points to 89.0% at June 30, 2011, compared to 86.1% as of June 30, 2010.
• Increased same-store revenue and net operating income (“NOI”) by 4.7% and 7.8%, respectively, as compared to the same period in 2010. Same-store revenue and NOI include tenant reinsurance income and expenses.
• Acquired 24 properties in 11 states.
• Added 26 properties to the Company’s third-party management platform.
• Issued and sold 5,335,423 shares of common stock in a public offering for total net proceeds of approximately $112.5 million.
• Paid a quarterly dividend of $0.14 per share.

The quarterly dividend was payable on June 30 to stockholders of record at the close of business on June 15, 2011. Recently, Extra Space Storage sold 5 million shares of its common stock in a public offering and partially exercised its over-allotment of 335,423 shares with total net proceeds of about $112.9 million.

“Extra Space Storage’s diversified growth platform has produced another quarter of strong results for our shareholders. Our solid performance resulted from better than anticipated core operations, robust acquisition activity and significant growth in our third-party management business. These components have combined to enhance our trajectory towards double- digit earnings growth in 2011 and beyond,” said Spencer F. Kirk, Chairman and CEO of Extra Space Storage Inc.

The Company’s major markets with revenue growth above the portfolio average for the three months ended June 30, 2011 were Boston, New York / New Jersey, Philadelphia and Washington, D.C. During the quarter, the Company purchased 24 properties for approximately $84.8 million. These properties are located in California, Colorado, Indiana, Kentucky, Nevada, New Jersey, Ohio, Tennessee, Texas, Utah and Virginia. Of the 24 properties, 15 are from a single portfolio located in Indiana, Kentucky and Ohio. Subsequent to the end of the quarter the Company completed the acquisition of one property located in Maryland for $5.7 million. The Company has 24 additional properties under contract for approximately $143.6 million. These properties are located in California, Colorado, Maryland, Massachusetts, New Jersey and Texas. The purchase of these properties is subject to due diligence and other customary closing conditions and is currently expected to close by the end of the year. No assurance can be provided that any of these acquisitions will be completed on the terms described, or at all.

On May 17, 2011, the Company issued and sold 5,000,000 shares of common stock in a public offering. On May 24, 2011, the underwriter partially exercised its over-allotment option to purchase an additional 335,423 shares of common stock from the Company. After giving effect to the exercise of the option, the Company sold a total of 5,335,423 shares of common stock in the public offering for total net proceeds of approximately $112.5 million. Proceeds of the offering were used to fund acquisitions, pay down debt and for general corporate purposes.

In the United States, Extra Space Storage Inc., headquartered in Salt Lake City, is a fully integrated, self-administered and self-managed real estate investment trust that owns and/or operates 820 self storage properties in 34 states and Washington, D.C. The company’s properties comprise approximately 525,000 units and more than 57 million square feet of rentable storage space offering customers conveniently located and secure storage solutions, including boat storage, RV storage and business storage. Extra Space Storage is the second-largest owner and/or operator of self-storage properties and is the largest self storage management company in the United States.

Sources Used:

“Extra Space Storage Releases Second-Quarter 2011 Operating Results.” Inside Self-Storage. July 29, 2011.

Hsiu, Winnie. “Extra Space Storage Issues Stock Over-Allotment Option and Declares Quarterly Dividend.” Self Storage Industry News. May 25, 2011.

“Extra Space Storage Inc. Reports Second Quarter 2011 Results.” July 28, 2011.