SALT LAKE CITY, July 30, 2024 /PRNewswire/ -- Extra Space Storage Inc. (NYSE:EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three and six months ended June 30, 2024. Highlights for the three months ended June 30, 2024: Achieved net income attributable to common stockholders of $0.88 per diluted share, representing a 41.3% decrease compared to the same period in the prior year primarily due to a $54.7 million loss related to the write down of assets held for sale as well as non-cash interest, amortization of intangibles, and additional depreciation related to the Company's 2023 merger (the "Life Storage Merger") with Life Storage, Inc. ("Life Storage" or "LSI"). Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.98 per diluted share. FFO, excluding adjustments ("Core FFO"), was $2.06 per diluted share, which was flat compared to the same period in the prior year. Increased same-store revenue by 0.6% and same-store net operating income ("NOI") decreased by (1.1)% compared to the same period in the prior year. Reported ending same-store occupancy of 94.3% as of June 30, 2024, compared to 94.0% as of June 30, 2023. The Company acquired two operating stores and one store at completion of construction ("Certificate of Occupancy stores" or "C of O stores") for a total cost of approximately $27.6 million. In conjunction with a joint venture partners, completed two developments for a total cost of approximately $28.7 million, of which the Company invested $27.7 million. Originated $433.2 million in mortgage and mezzanine bridge loans and sold $11.1 million mortgage bridge loans. Added 77 stores (14 stores net) to the Company's third-party management platform. As of June 30, 2024, the Company managed 1,423 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,895 managed stores. Paid a quarterly dividend of $1.62 per share. Highlights for the six months ended June 30, 2024: Achieved net income attributable to common stockholders of $1.88 per diluted share, representing a 36.3% decrease compared to the same period in the prior year, primarily due to a $54.7 million loss related to the write down of assets held for sale as well as non-cash interest, amortization of intangibles, additional depreciation related to the Life Storage Merger. Achieved FFO of $3.85 per diluted share, and Core FFO of $4.02 per diluted share, representing a 1.5% decrease compared to the same period in the prior year. Increased same-store revenue by 0.8% and same-store NOI decreased by (0.8)% compared to the same period in the prior year. Acquired seven operating store and two C of O stores for a total cost of approximately $62.7 million. In conjunction with joint venture partners, completed three developments for a total cost of approximately $49.1 million, of which the Company invested $47.1 million. Originated $597.5 million in mortgage and mezzanine bridge loans and sold $11.1 million in mortgage bridge loans. Added 174 stores (86 stores net) to the Company's third-party management platform. Joe Margolis, CEO of Extra Space Storage Inc., commented: "We've maintained strong occupancy levels in the Extra Space and Life Storage same-store pools despite a challenging demand and new customer rate environment.  The occupancy gains drove positive revenue growth in both pools.  In addition, we continue to realize G&A savings and stronger than expected tenant insurance income, supporting solid FFO per share performance ahead of our projections." FFO Per Share: The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 2024 and 2023.  The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data): For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2024 2023 2024 2023 (per share)1 (per share)1 (per share)1 (per share)1 Net income attributable to common stockholders $   185,872 $       0.88 $   202,410 $       1.50 $   398,984 $       1.88 $    398,714 $       2.95 Impact of the difference in weighted average number of shares – diluted2 (0.04) (0.09) (0.08) (0.17) Adjustments: Real estate depreciation 153,217 0.68 72,385 0.50 307,589 1.38 143,633 1.00 Amortization of intangibles 28,137 0.13 3,609 0.03 57,421 0.26 7,779 0.05 Loss on real estate assets held for sale 54,659 0.25 — — 54,659 0.25 — — Unconsolidated joint venture real estate depreciation and amortization 8,009 0.04 4,722 0.03 15,849 0.07 9,661 0.07 Distributions paid on Series A Preferred Operating Partnership units — — — — — — (159) — Income allocated to Operating Partnership and other noncontrolling interests 9,540 0.04 12,902 0.09 20,502 0.09 25,476 0.18 FFO $   439,434 $       1.98 $   296,028 $       2.06 $   855,004 $       3.85 $    585,104 $       4.08 Adjustments: Non-cash interest expense related to amortization of discount on LifeStorage unsecured senior notes 10,853 0.05 — — 21,558 0.10 — — Amortization of other intangibles related to the Life Storage Merger, netof tax benefit 7,438 0.03 — — 14,878 0.07 — — CORE FFO $   457,725 $       2.06 $   296,028 $       2.06 $   891,440 $       4.02 $    585,104 $       4.08 Weighted average number of shares – diluted3 221,857,627 143,752,935 221,797,751 143,555,781 (1) Per share amounts may not recalculate due to rounding. (2) The adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3). (3) Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.   Operating Results and Same-Store Performance: The following table (unaudited) outlines the Company's same-store performance for the three and six months ended June 30, 2024 and 2023 (amounts shown in thousands, except store count data)1: For the Three MonthsEnded June 30, Percent For the Six MonthsEnded June 30, Percent 2024 2023 Change 2024 2023 Change Same-store property revenues2 Net rental income $   403,087 $   400,279 0.7 % $   801,879 $   795,538 0.8 % Other income 16,162 16,425 (1.6) % 32,027 31,745 0.9 % Total same-store revenues $   419,249 $   416,704 0.6 % $   833,906 $   827,283 0.8 % Same-store operating expenses2 Payroll and benefits $      23,959 $      22,464 6.7 % $      48,465 $      44,990 7.7 % Marketing 9,164 7,639 20.0 % 18,017 14,812 21.6 % Office expense3 12,937 12,925 0.1 % 26,352 25,981 1.4 % Property operating expense4 8,275 8,892 (6.9) % 18,562 19,904 (6.7) % Repairs and maintenance 6,926 6,409 8.1 % 14,396 13,494 6.7 % Property taxes 39,600 37,284 6.2 % 77,657 74,700 4.0 % Insurance 5,066 4,315 17.4 % 10,328 8,236 25.4 % Total same-store operating expenses $   105,927 $      99,928 6.0 % $   213,777 $   202,117 5.8 % Same-store net operating income2 $   313,322 $   316,776 (1.1) % $   620,129 $   625,166 (0.8) % Same-store square foot occupancy as of quarter end 94.3 % 94.0 % 94.3 % 94.0 % Average same-store square foot occupancy 94.1 %