Extra Space Storage Inc 2024年度报告

BUILDING OUR LEGACY 1977-TODAY FOUNDED BY KEN WOOLLEY (CURRENT CHAIRMAN)1977 RECAPITALIZED THROUGH JOINT VENTURE WITHPRUDENTIAL REAL ESTATE INVESTORS (PREI)1998 COMPLETED INITIAL PUBLIC OFFERING (NYSE: EXR)2004 ACQUIRED STORAGE USA (458 STORES) FOR $2.3 BILLIONIN A JOINT VENTURE WITH PREI2005 STARTED THIRD-PARTY PROPERTY MANAGEMENTPROGRAM (TODAY, LARGEST IN THE INDUSTRY)2008 ACQUIRED SMARTSTOP SELF STORAGE (122 OWNED &43 MANAGED STORES) FOR $1.4 BILLION2015 ADDED TO THE S&P 500 INDEX2016 GLASSDOOR BEST PLACES TO WORK WINNER(RANKED 73 OUT OF 700,000+ COMPANIES)2018 STARTED BRIDGE LOAN PROGRAM (OVER $2.35BILLION IN ORIGINATIONS TO DATE)2019 GLASSDOOR BEST PLACES TO WORK WINNER(RANKED 90 OUT OF 1 MILLION+ COMPANIES)2020 NARIET LEADER IN THE LIGHT2021 MERGED WITH LIFE STORAGE (OVER 1,200 STORES)FOR $15 BILLION2023 CELEBRATED 20TH ANNIVERSARY AS APUBLIC COMPANY2024 DEAR FELLOW SHAREHOLDERS In August 2024, Extra Space Storage celebratedtwenty years since our Company’s initial publicoffering. At IPO, we had just over one hundredproperties; we have since grown a highlydiversified portfolio of over 4,000 propertiesin 42 states and the District of Columbia. Inthese twenty years, we have achieved manymilestones, including: JOSEPH D. MARGOLISChief Executive Officer • Acquiring Storage USA, SmartStop, and Life Storage,• Growing our industry-leading third-party management and bridge lending programs,• Gaining inclusion in the S&P 500 index,• Earning investment grade ratings by S&P and Moody’s,•Receiving recognition from many different organizations for being one of the best places to work,environmental stewardship, and values and culture, and•Developing and refining industry-leading proprietary pricing, management, and operationaltechnology and systems. These and other successes have led to our proudest accomplishment, a 20-year total return for ourshareholders of 2,436%. Our performance ranks first among our storage peers over this period andthird among all publicly traded REITs. 2024 was marked by continued consolidation of the storage industry. Demand normalized, andmuch of the abundant supply of new properties that were delivered during the COVID demandboom has been absorbed. Despite the headwinds of normalizing demand and new supply, ourteam and systems delivered positive revenue growth in both our legacy Extra Space and our newlyacquired Life Storage same-store pools, and we were the only storage company with positive FFOgrowth in the year. Although modest by historical levels, our performance led our publicly tradedstorage peers in revenue, net operating income, and FFO growth. We also deployed significant capital in 2024, which will benefit our shareholders in the years tocome. In a challenging environment for acquisition opportunities, we invested on our own and withjoint venture partners over $900 million, frequently using creative structures to produce accretive transactions. Our third-party management program expanded by 238 net new properties in 2024,as owners sought the operational excellence provided by our platform, teams, and systems. 2024was our largest single growth year in third-party management outside of the Life Storage mergerand further expands our fastest growing and most profitable management program in the industry,which now totals over 1,500 managed properties. Furthermore, our bridge loan program has beenhighly successful, and we have now originated more than $2.4 billion in loans cumulatively. Additionally, we rebranded all Life Storage locations to Extra Space, shifting to a single, unifiedbrand. This decision came after a nearly yearlong evaluation, where the strength of the Extra Spacebrand outweighed any potential benefits to having multiple brands. It was a clear indication of ourbrand value, and we look forward to the marketing advantages this will bring to our Company. We remain committed to innovating and improving the way we operate our business. Our company,and our industry, have come a long way in the past few decades, and there are still so manyexciting opportunities ahead of us. Through all the growth, we have maintained our companyculture and values that have led our success, and we are focused on upholding integrity withshareholders, partners, customers, and team members. We are proud of what we have built as acompany, and we look forward to continuing to build our legacy for years to come. JOSEPH D. MARGOLISChief Executive Officer EXTRA SPACE RETURN FROM DIVIDEND BUILDING OUR LEGACYPERFORMANCE Extra Space had a solid year of operational performance. Despiteindustry headwinds, the company outperformed competitors in same-store revenue, same-store net operating income (NOI), and funds fromoperations (FFO) growth. Year after year, Extra Space has been ableto outperform the industry, building a legacy of strong performance nomatter the environment. 5-YEARTOTAL RETURNPERFORMANCE 10-YEARPERFORMANCECOMPARISON 20-YEARTOTAL RETURN RECENT AWARDS SUSTAIN