Extra Space Storage Inc. Reports 2018 Second Quarter Results

SALT LAKE CITY, July 31, 2018

Highlights for the three months ended June 30, 2018:

• Achieved net income attributable to common stockholders of $0.75 per diluted share, representing an 8.7% increase compared to the same period in 2017.
• Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.14 per diluted share. FFO, excluding adjustments for non-cash interest, ("Core FFO") was $1.15 per diluted share, representing a 5.5% increase compared to the same period in 2017.
• Increased same-store revenue by 4.1% and same-store net operating income ("NOI") by 3.8% compared to the same period in 2017.
• Reported same-store occupancy of 94.2% as of June 30, 2018, compared to 94.3% as of June 30, 2017.
• Acquired three operating stores and purchased its joint venture partner's interest in 14 operating stores for a total investment of approximately $238.6 million.
• In conjunction with joint venture partners, acquired five operating stores, seven stores at completion of construction (a "Certificate of Occupancy store" or "C of O store") and completed one development for a total cost of approximately $201.2 million, of which the Company invested $35.3 million.
• Added 42 properties to the Company's third-party management platform, resulting in 486 third-party managed stores, plus an additional 214 stores in joint ventures, for a total of 700 managed stores as of June 30, 2018.
• Paid a quarterly dividend of $0.86 per share.

Highlights for the six months ended June 30, 2018:

• Achieved net income attributable to common stockholders of $1.45 per diluted share, representing a 9.0% increase compared to the same period in 2017.
• Achieved FFO of $2.23 per diluted share. Core FFO was $2.24 per diluted share, representing a 5.7% increase compared to the same period in 2017.
• Increased same-store revenue by 4.6% and same-store NOI by 4.2% compared to the same period in 2017.
• Acquired six operating stores, one Certificate of Occupancy store and purchased its joint venture partner's interest in 15 stores for a total investment of approximately $308.4 million.
• In conjunction with joint venture partners, acquired five operating stores, eight Certificate of Occupancy stores and completed two developments for a total cost of approximately $224.0 million, of which the Company invested $50.2 million.
• Added 83 properties to the Company's third-party management platform.

Joe Margolis, CEO of Extra Space Storage Inc., commented: "2018 continues to go as planned with solid rental rate growth in the mid-single digits as well as strong same-store occupancy of 94.2%.  We continue to execute our strategy of consistent property operations, steady external growth and efficient capital allocation.  We are pleased with our platform's performance in the first two quarters, and we believe we are positioned for a strong second half of 2018."

FFO Per Share:

The following table outlines the Company's FFO and Core FFO for the three and six months ended June 30, 2018 and 2017. 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):