Extra Space Storage Inc. Reports 2017 Second Quarter Results

SALT LAKE CITY, Aug. 1, 2017

Highlights for the three months ended June 30, 2017:

• Achieved net income attributable to common stockholders of $0.69 per diluted share, representing a 4.5% increase compared to the same period in 2016.
• Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.08 per diluted share. Excluding non-cash interest, FFO as adjusted was $1.09 per diluted share, representing a 16.0% increase compared to the same period in 2016.
• Increased same-store revenue by 5.2% and same-store net operating income ("NOI") by 7.7% compared to the same period in 2016.
• Reported same-store occupancy of 94.4% as of June 30, 2017, compared to 93.7% as of June 30, 2016.
• Acquired one operating store and one store at completion of construction ("Certificate of Occupancy store") for a total purchase price of approximately $18.3 million.
• Acquired one Certificate of Occupancy store with a joint venture partner for a total purchase price of approximately $15.9 million.
• Paid a quarterly dividend of $0.78 per share.

Highlights for the six months ended June 30, 2017:

• Achieved net income attributable to common stockholders of $1.33 per diluted share, representing a 0.8% increase compared to the same period in 2016.
• Achieved FFO of $2.10 per diluted share. Excluding non-cash interest, FFO as adjusted was $2.12 per diluted share, representing a 18.4% increase compared to the same period in 2016.
• Increased same-store revenue by 5.5% and same-store NOI by 8.4% compared to the same period in 2016.
• Acquired three operating stores and one Certificate of Occupancy store for a total purchase price of approximately $43.8 million.
• Acquired three Certificate of Occupancy stores with joint venture partners for a total purchase price of approximately $32.1 million.

Joseph D. Margolis, CEO of Extra Space Storage Inc., commented: "We had another solid quarter despite headwinds from new supply and tough year-over-year comparables.  We increased rates and gained occupancy, leading to same-store revenue growth of 5.2% and NOI growth of 7.7%.  Our acquisitions and third-party management platforms enhanced the growth of our FFO as adjusted, which was up 16.0% year-over-year."

FFO Per Share:

The following table outlines the Company's FFO and FFO as adjusted for the three and six months ended June 30, 2017 and 2016. 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 data¹ — unaudited):