SALT LAKE CITY, July 27, 2021 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500, announced operating results for the three and six months ended June 30, 2021.

Extra Space Storage. You deserve some extra space! (PRNewsFoto/Extra Space Storage Inc.)

Highlights for the three months ended June 30, 2021:

  • Achieved net income attributable to common stockholders of $1.25 per diluted share, representing a 56.3% increase compared to the same period in 2020.
  • Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.64 per diluted share. FFO, excluding adjustments for non-cash interest ("Core FFO"), was also $1.64 per diluted share, representing a 33.3% increase compared to the same period in 2020.
  • Increased same-store revenue by 13.6% and same-store net operating income ("NOI") by 20.2% compared to the same period in 2020.
  • Reported same-store occupancy of 97.0% as of June 30, 2021, compared to 94.2% as of June 30, 2020.
  • Acquired 13 operating stores and two stores at completion of construction (a "Certificate of Occupancy store" or "C of O store") for a total cost of approximately $184.0 million.
  • In conjunction with joint venture partners, acquired five operating stores for a total cost of approximately $68.7 million, of which the Company invested $6.9 million.
  • Closed $43.0 million in mortgage and mezzanine bridge loans, and sold $6.0 million in mortgage bridge loans.
  • Completed an inaugural public bond offering issuing $450.0 million of 10-year 2.55% senior unsecured notes due 2031.
  • Added 39 stores (gross) to the Company's third-party management platform.  As of June 30, 2021, the Company managed 768 stores for third parties and 253 stores in joint ventures, for a total of 1,021 managed stores.
  • Paid a quarterly dividend of $1.00 per share.

Highlights for the six months ended June 30, 2021

  • Achieved net income attributable to common stockholders of $2.79 per diluted share, representing a 71.2% increase compared to the same period in 2020.
  • Achieved FFO of $3.14 per diluted share. Core FFO was also $3.14 per diluted share, representing a 26.6% increase compared to the same period in 2020.
  • Increased same-store revenue by 9.0% and same-store NOI by 13.2% compared to the same period in 2020.
  • Acquired 22 operating stores and two C of O stores for a total cost of approximately $332.4 million.
  • In conjunction with joint venture partners, acquired five operating stores for a total cost of approximately $68.7 million, of which the Company invested $6.9 million.
  • Sold 16 wholly-owned stores into a new joint venture for a total sales price of $168.9 million, resulting in a gain on real estate transactions of $64.5 million.
  • Closed $70.1 million in mortgage and mezzanine bridge loans, and sold $87.8 million in mortgage bridge loans.
  • Sold 1,600,000 shares of common stock through an overnight offering and an additional 585,685 shares of common stock using the Company's "at the market" ("ATM") program resulting in total net proceeds of approximately $273.7 million.
  • Added 100 stores (gross) to the Company's third-party management platform.

Joe Margolis, CEO of Extra Space Storage Inc., commented: "We had an exceptionally strong second quarter, with record setting occupancy and very strong rental rates, resulting in same-store NOI growth of over 20%.  Our excellent property performance, coupled with accretive investments, led to FFO growth of 33.3%.  Our stronger than expected year-to-date performance, together with an improved outlook for the remainder of 2021, has allowed us to increase the midpoint of our FFO guidance by 8.3% to $6.53 per share."

FFO Per Share:

The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 2021 and 2020.  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 Months Ended June 30,


For the Six Months Ended June 30,


2021


2020


2021


2020




(per share)1




(per share)1




(per share)1




(per share)1

Net income attributable to common stockholders

$

167,948



$

1.25



$

102,911



$

0.80



$

370,946



$

2.79



$

211,090



$

1.63


Impact of the difference in
weighted average number
of shares – diluted2



(0.07)





(0.05)





(0.16)





(0.10)


Adjustments:
















Real estate depreciation

56,470



0.40



53,367



0.38



112,285



0.80



106,293



0.77


Amortization of intangibles

1,008





538





1,701



0.01



1,155



0.01


Gain on real estate transactions









(63,883)



(0.45)






Unconsolidated joint venture
real estate depreciation and
amortization

3,079



0.02



2,224



0.02



5,584



0.04



4,388



0.03


Unconsolidated joint
venture gain on sale of real
estate assets and purchase
of partner's interest

(6,251)



(0.04)







(6,251)



(0.04)






Distributions paid on Series
A Preferred Operating
Partnership units

(572)





(572)





(1,144)



(0.01)



(1,144)



(0.01)


Income allocated to Operating
Partnership noncontrolling
interests

10,631



0.08



8,346



0.06



23,134



0.16



16,329



0.12


FFO

$

232,313



$

1.64



$

166,814



$

1.21



$

442,372



$

3.14



$

338,111



$

2.45


















Adjustments:
















Acceleration of share-based
compensation expense due to
executive officer retirement





1,823



0.01







1,823



0.01


Non-cash interest expense
related to amortization of
discount on equity portion
of exchangeable senior notes





1,233



0.01







2,442



0.02


CORE FFO

$

232,313



$

1.64



$

169,870



$

1.23



$

442,372



$

3.14



$

342,376



$

2.48


















Weighted average number
of shares – diluted3

141,463,628





137,777,160





140,730,041





137,910,360






(1)

Per share amounts may not recalculate due to rounding.



(2)

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 and our exchangeable senior notes using the treasury stock method.

 

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, 2021 and 2020 (amounts shown in thousands, except store count data)1:


For the Three Months Ended June 30,


Percent


For the Six Months Ended June 30,


Percent


2021


2020


Change


2021


2020


Change

Same-store rental revenues2

$

294,772



$

259,585



13.6%


$

573,653



$

526,318



9.0%

Same-store operating expenses2

74,848



76,600



(2.3)%


152,736



154,608



(1.2)%

Same-store net operating income2

$

219,924



$

182,985



20.2%


$

420,917



$

371,710



13.2%













Same-store square foot occupancy as of quarter end

97.0%


94.2%




97.0%


94.2%















Properties included in same-store

860


860




860


860





(1)

A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to
Total Same-Store Net Operating Income."



(2)

Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.

Same-store revenues for the three and six months ended June 30, 2021 increased due to higher average occupancy and higher average rates to new and existing customers.  For the three months ended June 30, 2021, revenue also increased due to higher late fees and lower bad debt, partially offset by higher discounts. 

Same-store expenses were lower for the three and six months ended June 30, 2021 due to decreases in payroll and marketing expense, partially offset by increases in property taxes and credit card processing fees.

Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three and six months ended June 30, 2021 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Investment and Property Management Activity:

The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands):



Closed through  
June 30, 2021


Closed/Completed
Subsequent to

June 30, 2021


Scheduled to Still
Close/Complete in
2021


Total 2021

Wholly-Owned Investment


Stores


Price


Stores


Price


Stores


Price


Stores


Price

Operating Stores


22


$

300,600




$




$



22


$

300,600


C of O and Development Stores1


2


31,750






4


42,850



6


74,600


EXR Investment in Wholly-Owned Stores


24


332,350






4


42,850



28


375,200



















Joint Venture Investment

















EXR Investment in JV Acquisition of Operating 
     Stores1


5


6,865



6


8,290






11


15,155


EXR Investment in JV C of O and Development 
     Stores1








1


1,600



1


1,600


EXR Investment in Joint Ventures


5


6,865



6


8,290



1


1,600



12


16,755


Total EXR Investment


29


$

339,215



6


$

8,290



5


$

44,450



40


$

391,955




(1)

The locations of C of O and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.

Bridge Loans:

During the three months ended June 30, 2021 the Company closed $43.0 million in bridge loans, and has an additional $198.5 million under agreement to close in 2021 and 2022.  The Company sold $6.0 million in loans during the three months ended June 30, 2021.  Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Dispositions:

As previously announced, the Company sold 16 properties into a new unconsolidated joint venture during the first quarter 2021.  The Company currently owns a 55% interest in the unconsolidated joint venture, and it anticipates selling a 39% interest in the third quarter of 2021 to a third joint venture partner, which will reduce the Company's interest to 16%.

The Company has an additional 17 properties held for sale that are currently being marketed, all of which are anticipated to close during 2021.  The Company does not anticipate retaining any ownership in these properties.

Property Management:

As of June 30, 2021, the Company managed 768 stores for third-party owners and 253 stores owned in joint ventures, for a total of 1,021 stores under management.  The Company is the largest self-storage management company in the United States.

Balance Sheet:

During the three months ended June 30, 2021, the Company completed its inaugural public bond offering issuing $450.0 million of 10-year 2.55% senior unsecured notes due 2031.  As of June 30, 2021, the Company did not have an active ATM program, and anticipates filing a new plan in the third quarter of 2021.

As of June 30, 2021, the Company's percentage of fixed-rate debt to total debt was 72.7%. The weighted average interest rates of the Company's fixed and variable-rate debt were 3.2% and 1.5%, respectively. The combined weighted average interest rate was 2.8% with a weighted average maturity of approximately 5.2 years.

Dividends:

On June 30, 2021, the Company paid a second quarter common stock dividend of $1.00 per share to stockholders of record at the close of business on June 15, 2021.

Outlook:

The following table outlines the Company's FFO estimates and annual assumptions for the year ending December 31, 20211:


Ranges for 2021

Annual Assumptions


Notes


Low


High



FFO

$

6.45



$

6.60




Core FFO

$

6.45



$

6.60




Dilution per share from C of O and value add
acquisitions

$

0.12



$

0.12




Same-store revenue growth

10.00

%


11.00

%


Same-store pool of 860 stores

Same-store expense growth

0.00

%


1.00

%


Same-store pool of 860 stores

Same-store NOI growth

13.50

%


15.50

%


Same-store pool of 860 stores

Weighted average one-month LIBOR

0.11

%


0.11

%









Net tenant reinsurance income

$

136,500,000



$

137,500,000




Management fees and other income

$

59,500,000



$

60,500,000




Interest income

$

45,500,000



$

46,500,000



Includes dividends from JCAP
preferred investment

General and administrative expenses

$

100,000,000



$

101,000,000



Includes non-cash
compensation

Average monthly cash balance

$

35,000,000



$

35,000,000




Equity in earnings of real estate ventures

$

31,000,000



$

32,000,000



Includes dividends from
SmartStop preferred investment

Acquisitions

$

500,000,000



$

500,000,000



Represents the Company's
investment

Bridge loans

$

100,000,000



$

100,000,000



Represents the Company's share
of loans retained net of loan sales

Interest expense

$

161,500,000



$

162,500,000




Taxes associated with the Company's taxable REIT
subsidiary

$

20,000,000



$

21,000,000




Weighted average share count

141,100,000



141,100,000



Assumes redemption of all OP
units for common stock



(1)

A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income."  The reconciliation includes details related to same-store revenue and same-store expense outlooks.  A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share." 

FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.

Supplemental Financial Information:

Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials & Stock Information" navigation menu click on "Quarterly Earnings." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.

Conference Call:

The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, July 28, 2021, to discuss its financial results. To participate in the conference call, please dial 855-791-2026 or 631-485-4899 for international participants; audience passcode: 8692268. The conference call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will be available for 30 days on the Company's website in the Investor Relations section. 

A replay of the call will also be available by telephone from 4:30 p.m. Eastern Time on July 28, 2021, until 4:30 p.m. Eastern Time on August 4, 2021. The replay dial-in numbers are 855-859-2056 or 404-537-3406 for international callers; passcode:  8692268.

Forward-Looking Statements:

Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, favorable market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, plans or intentions relating to acquisitions and developments and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

  • adverse changes in general economic conditions, the real estate industry and the markets in which we operate;
  • failure to close pending acquisitions and developments on expected terms, or at all;
  • the effect of competition from new and existing stores or other storage alternatives, which could cause rents and occupancy rates to decline;
  • potential liability for uninsured losses and environmental contamination;
  • the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;
  • disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;
  • impacts from the COVID-19 pandemic or the future outbreak of other highly infectious or contagious diseases, including reduced demand for self-storage space and ancillary products and services such as tenant reinsurance, and potential decreases in occupancy and rental rates and staffing levels, which could adversely affect our results;
  • increases in interest rates;
  • reductions in asset valuations and related impairment charges;
  • our lack of sole decision-making authority with respect to our joint venture investments;
  • the effect of recent or future changes to U.S. tax laws;
  • the failure to maintain our REIT status for U.S. federal income tax purposes; and
  • economic uncertainty due to the impact of natural disasters, war or terrorism, which could adversely affect our business plan.

All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Definition of FFO:

FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.

For informational purposes, the Company also presents Core FFO.  Core FFO excludes revenues and expenses not core to our operations and non-cash interest.  Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.

Definition of Same-Store:

The Company's same-store pool for the periods presented consists of 860 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented.  The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments.  Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.

About Extra Space Storage Inc.:

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of June 30, 2021, the Company owned and/or operated 1,973 self-storage stores in 40 states and Washington, D.C. The Company's stores comprise approximately 1.4 million units and approximately 152.6 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

Extra Space Storage Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share data)



June 30, 2021


December 31, 2020


(Unaudited)



Assets: 




Real estate assets, net

$

8,113,074



$

7,893,802


Real estate assets - operating lease right-of-use assets

233,929



252,172


Investments in unconsolidated real estate entities

361,228



397,444


Investments in debt securities and notes receivable

568,781



593,810


Cash and cash equivalents

56,006



109,124


Restricted cash

3,743



18,885


Other assets, net

126,332



130,611


Total assets 

$

9,463,093



$

9,395,848


Liabilities, Noncontrolling Interests and Equity:




Notes payable, net

$

5,109,882



$

4,797,303


Revolving lines of credit

261,000



949,000


Operating lease liabilities

238,411



263,485


Cash distributions in unconsolidated real estate ventures

62,704



47,126


Accounts payable and accrued expenses

150,091



130,012


Other liabilities

280,049



272,798


Total liabilities 

6,102,137



6,459,724


Commitments and contingencies




Noncontrolling Interests and Equity:




Extra Space Storage Inc. stockholders' equity:




Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or
outstanding




Common stock, $0.01 par value, 500,000,000 shares authorized, 133,791,109 and
131,357,961 shares issued and outstanding at June 30, 2021 and December 31,
2020, respectively

1,337



1,314


Additional paid-in capital

3,288,853



3,000,458


Accumulated other comprehensive loss

(71,830)



(99,093)


Accumulated deficit

(250,271)



(354,900)


Total Extra Space Storage Inc. stockholders' equity

2,968,089



2,547,779


Noncontrolling interest represented by Preferred Operating Partnership units, net

172,902



172,052


Noncontrolling interests in Operating Partnership, net and other noncontrolling interests

219,965



216,293


Total noncontrolling interests and equity

3,360,956



2,936,124


Total liabilities, noncontrolling interests and equity

$

9,463,093



$

9,395,848


 

Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2021 and 2020
(In thousands, except share and per share data) - Unaudited



For the Three Months Ended June 30,


For the Six Months Ended  June 30,


2021


2020


2021


2020

Revenues:








Property rental

$

321,500



$

279,312



$

625,093



$

566,015


Tenant reinsurance

42,334



35,078



81,953



68,691


Management fees and other income

14,796



12,856



30,441



24,992


Total revenues

378,630



327,246



737,487



659,698


Expenses:








Property operations

89,155



89,040



181,522



179,337


Tenant reinsurance

6,735



6,858



13,896



13,536


General and administrative

26,341



25,337



49,881



48,348


Depreciation and amortization

59,570



56,018



118,169



111,293


Total expenses

181,801



177,253



363,468



352,514


Gain on real estate transactions





63,883




Income from operations

196,829



149,993



437,902



307,184


Interest expense

(40,240)



(41,039)



(80,935)



(85,397)


Non-cash interest expense related to amortization of discount on
equity component of exchangeable senior notes



(1,233)





(2,442)


Interest income

12,838



1,669



25,142



3,343


Income before equity in earnings and dividend income from
unconsolidated real estate ventures and income tax expense

169,427



109,390



382,109



222,688


Equity in earnings and dividend income from unconsolidated
real estate entities

8,322



5,044



15,278



10,087


Equity in earnings of unconsolidated real estate ventures -
gain on sale of real estate assets and purchase of joint
venture partner's interest

6,251





6,251




Income tax expense

(5,421)



(3,177)



(9,558)



(5,356)


Net income

178,579



111,257



394,080



227,419


Net income allocated to Preferred Operating Partnership
noncontrolling interests

(3,438)



(3,139)



(7,118)



(6,250)


Net income allocated to Operating Partnership and other
noncontrolling interests

(7,193)



(5,207)



(16,016)



(10,079)


Net income attributable to common stockholders

$

167,948



$

102,911



$

370,946



$

211,090


Earnings per common share








Basic

$

1.25



$

0.80



$

2.79



$

1.63


Diluted

$

1.25



$

0.80



$

2.79



$

1.63


Weighted average number of shares








Basic

133,756,610



128,932,152



132,886,933



129,110,131


Diluted

140,407,195



129,082,468



140,428,558



129,285,675


Cash dividends paid per common share

$

1.00



$

0.90



$

2.00



$

1.80


 

Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Six Months Ended
June 30, 2021 and 2020
 (In thousands) - Unaudited  



For the Three Months Ended June 30,


For the Six Months Ended June 30,


2021


2020


2020


2019

Net Income

$

178,579



$

111,257



$

394,080



$

227,419


Adjusted to exclude:








Gain on real estate transactions





(63,883)




Equity in earnings and dividend income from
unconsolidated real estate entities

(8,322)



(5,044)



(15,278)



(10,087)


Equity in earnings of unconsolidated real estate ventures
- gain on sale of real estate assets and purchase of joint
venture partner's interest

(6,251)





(6,251)




Interest expense

40,240



42,272



80,935



87,839


Depreciation and amortization

59,570



56,018



118,169



111,293


Income tax expense

5,421



3,177



9,558



5,356


General and administrative

26,341



25,337



49,881



48,348


Management fees, other income and interest income

(27,634)



(14,525)



(55,583)



(28,335)


Net tenant insurance

(35,599)



(28,220)



(68,057)



(55,155)


Non-same store rental revenue

(26,728)



(19,727)



(51,440)



(39,697)


Non-same store operating expense

14,307



12,440



28,786



24,729


Total same-store net operating income

$

219,924



$

182,985



$

420,917



$

371,710










Same-store rental revenues

294,772



259,585



573,653



526,318


Same-store operating expenses

74,848



76,600



152,736



154,608


Same-store net operating income

$

219,924



$

182,985



$

420,917



$

371,710


 

Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per
Share — for the Year Ending December 31, 2021
 (Unaudited)




For the Year Ending December 31, 2021



Low End


High End

Net income attributable to common stockholders per diluted share


$

4.94



$

5.09


Income allocated to noncontrolling interest - Preferred Operating Partnership
and Operating Partnership


0.31



0.31


Fixed component of income allocated to non-controlling interest - Preferred
Operating Partnership


(0.02)



(0.02)


Net income attributable to common stockholders for diluted computations


5.23



5.38







Adjustments:





Real estate depreciation


1.62



1.62


Amortization of intangibles


0.02



0.02


Unconsolidated joint venture real estate depreciation and amortization


0.07



0.07


Unconsolidated joint venture gain on sale of real estate assets and purchase
of partners' interests


(0.04)



(0.04)


Loss (gain) on real estate transactions and impairment of real estate


(0.45)



(0.45)


Funds from operations attributable to common stockholders


6.45



6.60







Core funds from operations attributable to common stockholders


$

6.45



$

6.60


 

Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income —
for the Year Ending December 31, 2021 (In thousands, unaudited)



For the Year Ending December 31, 2021


 Low


 High





Net Income

$

670,000



$

691,000


Adjusted to exclude:




Equity in earnings of unconsolidated joint ventures

(31,000)



(32,000)


Interest expense

162,500



161,500


Depreciation and amortization

239,000



239,000


Income tax expense

21,000



20,000


General and administrative

101,000



100,000


Management fees and other income

(59,500)



(60,500)


Interest income

(45,500)



(46,500)


Net tenant insurance income

(136,500)



(137,500)


Non same-store rental revenues

(113,000)



(113,000)


Non same-store operating expenses

59,000



59,000


Total same-store net operating income1

$

867,000



$

881,000






Same-store rental revenues1

1,179,000



1,190,000


Same-store operating expenses1

312,000



309,000


Total same-store net operating income1

$

867,000



$

881,000




(1)

Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2021 same-store pool of 860 stores.

 

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SOURCE Extra Space Storage Inc.

Copyright 2021 PR Newswire

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