What changed in this filing

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Item 1. Financial Statements

2025-08-01 compared with 2025-05-02 · 169 added, 110 removed, 614 unchanged (31% of the section changed)

3 unchanged sentences

(amounts in thousands, except share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Real estate assets, net $ 25,099,810 $ 24,587,627

20 unchanged sentences

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, 212,225,353 and 211,995,510 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

Common stock, $ 0.01 par value, 500,000,000 shares authorized, 212,252,547 and 211,995,510 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 14,860,946 14,831,946

11 unchanged sentences

(amounts in thousands, except share data)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Property rental $ 721,004 $ 697,100 $ 1,425,384 $ 1,385,144

7 unchanged sentences

Total expenses 466,784 451,243 933,812 914,954

Gain on real estate assets held for sale and sold, net 35,761 —

Gain (loss) on real estate assets held for sale and sold, net ( 864 ) ( 54,659 ) 34,897 ( 54,659 )

Income from operations 373,970 304,761 762,700 640,589

Interest expense ( 146,128 ) ( 137,133 ) ( 288,527 ) ( 270,020 )

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes ( 11,313 ) ( 10,705 )

Non-cash interest expense related to amortization of discount on unsecured senior notes, net ( 11,770 ) ( 10,853 ) ( 23,083 ) ( 21,558 )

Interest income 41,998 31,226 80,965 54,799

17 unchanged sentences

(amounts in thousands)

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 262,716 $ 195,412 $ 547,641 $ 419,486

7 unchanged sentences

Condensed Consolidated Statements of Noncontrolling Interests and Equity

For the three and six months ended June 30, 2025

(unaudited, amounts in thousands, except share data)

2 unchanged sentences

Preferred Operating Partnership Operating Partnership Other Shares Par Value Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss) Accumulated Deficit Total Noncontrolling Interests and Equity

Balances at December 31, 2023 $ 222,360 $ 791,754 $ 8,914 211,278,803 $ 2,113 $ 14,750,388 $ 17,435 $ ( 379,015 ) $ 15,413,949

Issuance of common stock for share based compensation, exercise of options and taxes paid upon net settlement — — — 96,927 1 ( 392 ) — — ( 391 )

Issuance of common stock, net of offering costs — — — 2,310 — 365 — — 365

Balances at March 31, 2025 $ 53,827 $ 826,352 $ 11,537 212,225,353 $ 2,122 $ 14,851,126 $ 6,204 $ ( 972,665 ) $ 14,778,503

Issuance of common stock for share based compensation and taxes paid upon net settlement — — — 65,301 1 7,044 — — 7,045

Redemption of Operating Partnership units for stock — ( 2,868 ) — 30,478 1 2,867 — — —

Redemption of Operating Partnership units for cash — ( 188 ) — — — ( 91 ) — — ( 279 )

Repurchase of common stock, net of offering costs — — — ( 68,585 ) ( 1 ) — — ( 8,614 ) ( 8,615 )

Noncontrolling interest in consolidated joint ventures — — 681 — — — — — 681

Net income 2,208 8,737 17 — — — — 213,112 224,074

Net income (loss) 723 12,268 ( 6 ) — — — — 249,731 262,716

Other comprehensive loss — ( 148 ) — — — — ( 3,001 ) — ( 3,149 )

2 unchanged sentences

— — — — — — — ( 343,882 ) ( 343,882 )

Balances at March 31, 2024 $ 218,824 $ 763,971 $ 9,137 211,658,812 $ 2,117 $ 14,776,888 $ 28,191 $ ( 510,150 ) $ 15,288,978

Balances at June 30, 2025 $ 53,827 $ 820,254 $ 12,166 212,252,547 $ 2,123 $ 14,860,946 $ 3,203 $ ( 1,075,430 ) $ 14,677,089

Balances at December 31, 2024 $ 76,092 $ 823,898 $ 11,837 211,995,510 $ 2,120 $ 14,831,946 $ 12,806 $ ( 899,337 ) $ 14,859,362

1 unchanged sentence

Redemption of Operating Partnership units for stock ( 22,265 ) ( 3,953 ) — 185,808 3 26,215 — — —

Redemption of Operating Partnership units for cash — ( 188 ) — — — ( 91 ) — — ( 279 )

Issuance of Operating Partnership units in conjunction with acquisitions — 5,878 — — — — — — 5,878

Purchase of remaining equity interest in existing consolidated joint venture — — — — — ( 4,568 ) — — ( 4,568 )

Repurchase of common stock, net of offering costs — — — ( 68,585 ) ( 1 ) — — ( 8,614 ) ( 8,615 )

Purchase of remaining equity interest in existing unconsolidated joint venture — — — — — ( 4,568 ) — — ( 4,568 )

Noncontrolling interest in consolidated joint ventures — — 406 — — — — — 406

4 unchanged sentences

— — — — — — — ( 688,085 ) ( 688,085 )

Balances at June 30, 2025 $ 53,827 $ 820,254 $ 12,166 212,252,547 $ 2,123 $ 14,860,946 $ 3,203 $ ( 1,075,430 ) $ 14,677,089

Extra Space Storage Inc.

Condensed Consolidated Statement of Noncontrolling Interests and Equity

For the three and six months ended June 30, 2024

(unaudited, amounts in thousands, except share data)

Noncontrolling Interest Extra Space Storage Inc.

Stockholders' Equity

Balances at March 31, 2024 $ 218,824 $ 763,971 $ 9,137 211,658,812 $ 2,117 $ 14,776,888 $ 28,191 $ ( 510,150 ) $ 15,288,978

Issuance of common stock for share based compensation, exercise of options and taxes paid upon net settlement — — — 71,502 1 6,585 — — 6,586

Offering costs associated with shelf registration — — — — — ( 494 ) — — ( 494 )

Redemption of Operating Partnership units for stock ( 27,518 ) ( 446 ) — 197,034 2 27,959 — — ( 3 )

Noncontrolling interest in consolidated joint ventures — — 656 — — — — — 656

Net income 1,933 7,600 7 — — — — 185,872 195,412

Other comprehensive loss — ( 56 ) — — — — ( 950 ) — ( 1,006 )

Distributions to Operating Partnership units and other noncontrolling interests ( 1,933 ) ( 13,967 ) — — — — — — ( 15,900 )

Dividends paid on common stock at $ 1.62 per share

— — — — — — — ( 343,389 ) ( 343,389 )

Balances at June 30, 2024 $ 191,306 $ 757,102 $ 9,800 211,927,348 $ 2,120 $ 14,810,938 $ 27,241 $ ( 667,667 ) $ 15,130,840

Balances at December 31, 2023 $ 222,360 $ 791,754 $ 8,914 211,278,803 $ 2,113 $ 14,750,388 $ 17,435 $ ( 379,015 ) $ 15,413,949

Issuance of common stock for share based compensation, exercise of options and taxes paid upon net settlement — — — 168,429 2 6,193 — — 6,195

Issuance of common stock, net of offering costs — — — 2,310 — 365 — — 365

Offering costs associated with shelf registration — — — — — ( 494 ) — — ( 494 )

Redemption of Operating Partnership units for stock ( 31,054 ) ( 23,437 ) — 477,806 5 54,486 — — —

Noncontrolling interest in consolidated joint ventures — — 862 — — — — — 862

Net income 4,141 16,337 24 — — — — 398,984 419,486

Other comprehensive income — 390 — — — — 9,806 — 10,196

Distributions to Operating Partnership units and other noncontrolling interests ( 4,141 ) ( 27,942 ) — — — — — — ( 32,083 )

Dividends paid on common stock at $ 3.24 per share

— — — — — — — ( 687,636 ) ( 687,636 )

Balances at June 30, 2024 $ 191,306 $ 757,102 $ 9,800 211,927,348 $ 2,120 $ 14,810,938 $ 27,241 $ ( 667,667 ) $ 15,130,840

See notes to unaudited condensed consolidated financial statements.

2 unchanged sentences

(amounts in thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash flows from operating activities:

3 unchanged sentences

Amortization of deferred financing costs 5,651 7,739

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 11,313 10,705

Non-cash lease expense 6,447 945

Non-cash interest expense related to amortization of discount on unsecured senior notes, net 23,083 21,558

Compensation expense related to share-based awards 15,679 6,192

Accrual of interest income added to principal of debt securities and notes receivable ( 16,421 ) ( 16,100 )

Gain on real estate assets held for sale and sold, net ( 35,761 ) —

(Gain) loss on real estate assets held for sale and sold, net ( 34,897 ) 54,659

Distributions from unconsolidated real estate ventures 17,910 14,540

9 unchanged sentences

Investment in unconsolidated real estate entities ( 113,285 ) ( 10,789 )

Issuance and repurchase of notes receivable ( 182,079 ) ( 158,005 )

Return of investment in unconsolidated real estate ventures 200,000 4,200

Issuance of notes receivable ( 360,406 ) ( 569,268 )

Payments received on notes receivable 46,338 47,455

7 unchanged sentences

Deferred financing costs ( 13,373 ) ( 5,719 )

Repurchase of common stock ( 8,615 ) —

Proceeds from share issuances — 366

Redemption of Operating Partnership units for cash ( 279 ) —

Offering costs associated with shelf registration — ( 494 )

Dividends paid on common stock ( 688,085 ) ( 687,636 )

4 unchanged sentences

Cash, cash equivalents, and restricted cash, end of the period $ 128,688 $ 81,544

Extra Space Storage Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

For the Six Months Ended June 30,

Cash and equivalents, including restricted cash at the beginning of the period:

3 unchanged sentences

Cash and equivalents, including restricted cash at the end of the period:

Extra Space Storage Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

For the Three Months Ended March 31,

Cash and equivalents $ 125,045 $ 76,973

8 unchanged sentences

Common stock and paid-in capital $ 26,218 $ 54,491

Acquisition and establishment of operating lease right of use assets and lease liabilities

Real estate assets - operating lease right-of-use assets $ 419 $ —

Operating lease liabilities ( 419 ) —

Acquisitions of real estate assets

17 unchanged sentences

The Company invests in stores by acquiring wholly-owned stores or by acquiring an equity interest in real estate entities.

At March 31, 2025, the Company had direct and indirect equity interests in 2,424 stores.

At June 30, 2025, the Company had direct and indirect equity interests in 2,430 stores.

In addition, the Company managed 1,749 stores for third parties, bringing the total number of stores which it owns and/or manages to 4,179 .

These stores are located in 43 states and Washington, D.C.

The Company offers tenant reinsurance at its owned and managed stores that insures the value of goods in the storage units and also offers bridge loan financing to certain of its third-party self-storage owners.

The Company offers tenant reinsurance at its owned and managed stores that insures the value of goods in the storage units and also offers bridge loan financing to certain third-party self-storage owners for whom it manages properties.

BASIS OF PRESENTATION

3 unchanged sentences

In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included.

Operating results for the three months ended March 31, 2025 are not necessarily indicative of results that may be expected for the year ending December 31, 2025.

Operating results for the three and six months ended June 30, 2025 are not necessarily indicative of results that may be expected for the year ending December 31, 2025.

The condensed consolidated balance sheet as of December 31, 2024 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements.

41 unchanged sentences

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties.

However, as of March 31, 2025, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives.

However, as of June 30, 2025, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives.

As a result, the Company has determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy.

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2025, aggregated by the level in the fair value hierarchy within which those measurements fall.

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2025, aggregated by the level in the fair value hierarchy within which those measurements fall.

Fair Value Measurements at Reporting Date Using

2 unchanged sentences

Other liabilities - Cash flow hedge swap agreements $ — $ 2,727 $ —

The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of March 31, 2025 or December 31, 2024.

The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of June 30, 2025 or December 31, 2024.

EXTRA SPACE STORAGE INC.

14 unchanged sentences

The operations of assets held for sale or sold during the period are presented as part of normal operations.

As of March 31, 2025, the Company had five stores classified as held for sale which are included in real estate assets, net.

Of the five stores, three had an estimated fair value, net of selling costs, of $ 8,018 .

During the three months ended March 31, 2025, the Company recorded a loss of $ 3,759 as the fair value of these three stores was less than the net carrying value.

As of June 30, 2025, the Company had four stores classified as held for sale which are included in real estate assets, net.

Of the four stores, three had an estimated fair value, net of selling costs, of $ 8,034 .

During the six months ended June 30, 2025, the Company recorded a loss of $ 3,759 as the fair value of these three stores was less than their net carrying value.

The loss recorded during the three months ended June 30, 2025 related to the sale of one operating property previously listed as held for sale resulting in an additional loss of $ 864 .

The Company assesses annually whether there are any indicators that the value of the Company’s investments in unconsolidated real estate entities may be impaired and when events or circumstances indicate that there may be impairment.

6 unchanged sentences

Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, net, accounts payable and accrued expenses, variable-rate notes payable, investments in debt securities and notes receivable, revolving lines of credit and commercial paper and other liabilities reflected in the condensed consolidated balance sheets at March 31, 2025 and December 31, 2024 approximate fair value.

The carrying values of cash and cash equivalents, restricted cash, receivables, investments in debt securities and notes receivable, accounts payable and accrued expenses, variable-rate notes payable, revolving lines of credit and commercial paper and other liabilities reflected in the condensed consolidated balance sheets at June 30, 2025 and December 31, 2024 approximate fair value.

Restricted cash is comprised of funds deposited with financial institutions located throughout the United States and the Cayman Islands, primarily relating to operating cash reserve for the Company’s captive insurance subsidiary and earnest money deposits on potential acquisitions.

5 unchanged sentences

The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Value Carrying

4 unchanged sentences

ACQUISITIONS AND DISPOSITIONS

The following table shows the Company’s acquisitions of stores for the three months ended March 31, 2025 and 2024.

The following table shows the Company’s acquisitions of stores for the three and six months ended June 30, 2025 and 2024.

The table excludes purchases of raw land and improvements made to existing assets.

1 unchanged sentence

Clarifying the Definition of a Business .”

Period Number of Stores Cash Paid Loan Assumed Finance Lease Liability Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of Equity Issued Real estate assets

Period Number of Stores Cash Paid Loans Assumed Fair Value Adjustment of Debt Assumed Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of Equity Issued Real estate assets

Q2 2025 28 161,738 258,000 ( 10,049 ) 34,767 4,472 $ — 448,928

Q1 2025 17 136,025 — — 105,471 847 $ 5,878 248,221

Total 2025 45 $ 297,763 $ 258,000 $ ( 10,049 ) $ 140,238 $ 5,319 $ 5,878 $ 697,149

Q2 2024 3 27,644 — — — 97 $ — 27,741

Q1 2024 6 35,084 — — — 171 $ — 35,255

Total 2024 9 $ 62,728 $ — $ — $ — $ 268 $ — $ 62,996

On April 30, 2025, the Company acquired all of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures.

The total value of the real estate was recorded at $ 436,797 , which included $ 258,000 of assumed debt.

The Company now owns 100 % of the 27 properties that were held in the two joint ventures.

On March 31, 2025, the Company closed on the transfer and distribution of membership interests in its PR II EXR JV LLC joint venture.

2 unchanged sentences

therefore, the Company now owns 100 % of the six properties, and its partner now owns 100 % of the 17 properties, which the Company will continue to manage.

The Company disposed of 11 previously held for sale stores during the three months ended March 31, 2025 for approximately $ 124,855 , resulting in a gain of $ 39,520 .

This amount is shown net of $ 3,759 in losses related to the sale of three land parcels and three properties listed for sale during the quarter where the estimated fair value, net of selling costs, was less than the net carrying value of the assets.

The net gain is shown on the Company’s condensed consolidated statements of operations for the three months ended March 31, 2025, presented as gain on real estate assets held for sale and sold, net.

The Company completed the sale of one previously held for sale store during the three months ended June 30, 2025 for approximately $ 8,900 , resulting in a loss of $ 864 .

For the six months ended June 30, 2025, the Company completed the sale of 12 previously held for sale stores for approximately $ 133,755 , resulting in a gain of $ 38,656 .

This amount is shown net of $ 3,759 in losses related to the sale of three land parcels and three properties listed for sale during the six months ended June 30, 2025, where the estimated fair value, net of selling costs, was less than the net carrying value of the assets.

The net gain is shown on the Company’s condensed consolidated statements of operations for the six months ended June 30, 2025, presented as gain (loss) on real estate assets held for sale and sold, net.

EXTRA SPACE STORAGE INC.

3 unchanged sentences

The components of real estate assets are summarized as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Land $ 5,122,542 $ 4,994,642

9 unchanged sentences

Real estate assets held for sale included in real estate assets, net $ 18,798 $ 103,756

As of March 31, 2025, the Company had five stores classified as held for sale which are included in real estate assets, net.

The components of other assets are summarized as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Goodwill $ 170,811 $ 170,811

6 unchanged sentences

Restricted cash 3,643 5,081

$ 508,729 $ 548,986

Other assets, net $ 484,748 $ 548,986

EXTRA SPACE STORAGE INC.

7 unchanged sentences

The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using the two-class, treasury stock or if-converted method, whichever is most dilutive.

Potential common shares are securities (such as Series B Redeemable Preferred Units (“Series B Units”), Series D Redeemable Preferred Units (“Series D Units” and, together with the Series B Units, the “Preferred OP Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right.

In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security.

3 unchanged sentences

For the purposes of computing the diluted impact of the potential exchange of the Preferred OP Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total liquidation value of the Preferred OP Units by the average share price for the period presented.

The average share price for the three months ended March 31, 2025 and 2024 was $ 151.64 and $ 145.80 , respectively.

The average share price for the three months ended June 30, 2025 and 2024 was $ 145.51 and $ 145.78 , respectively.

The average share price for the six months ended June 30, 2025 and 2024 was $ 148.53 and $ 145.79 , respectively.

The following table presents the number of weighted OP Units and Preferred OP Units, and the potential common shares that were excluded from the computation of earnings per share as their effect would have been anti-dilutive:

For the Three Months Ended March 31,

Equivalent Shares (if converted) Equivalent Shares (if converted)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted)

Common OP Units 9,363,113 8,621,889 9,366,391 —

6 unchanged sentences

The computation of earnings per common share is as follows for the periods presented:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Net income attributable to common stockholders $ 249,731 $ 185,872 $ 520,606 $ 398,984

6 unchanged sentences

Common OP Units — — — 8,676,813

Series D Units 202,124 —

Shares related to dilutive stock options — 2,950 — 3,326

21 unchanged sentences

Number of Stores Equity Ownership % Excess Profit % (1)

March 31, December 31,

June 30, December 31,

PRISA Self Storage LLC 85 4 % 4 % $ 8,815 $ 8,967

4 unchanged sentences

Storage Portfolio I LLC 24 34 % 49 % ( 43,951 ) ( 43,803 )

PR II EXR JV LLC (2)

ESS CA-TIVS JV LP (2)

— 55 % 55 %- 65 %

3 unchanged sentences

HF6 191 V Life Storage Holdings LLC 17 20 % 20 % 10,175 10,821

ESS-CA TIVS JV LP 16 55 % 55 %- 65 %

PR II EXR JV LLC (3)

— 25 % 25 % — 105,909

3 unchanged sentences

112 10 %- 50 %

SmartStop Self Storage REIT, Inc.

309,945 314,852

Strategic Storage Growth Trust III, Inc.

Preferred Stock (4)

3 unchanged sentences

n/a n/a n/a 150,000 150,000

Strategic Storage Growth Trust III, Inc.

SmartStop Self Storage REIT, Inc.

Preferred Stock (6)

5 unchanged sentences

(1) Includes pro-rata equity ownership share and promoted interest.

(2) On April 30, 2025, the Company acquired all of its partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures.

The total value of the real estate was recorded at $ 436,797 , which included $ 258,000 of assumed debt.

The Company now owns 100 % of the 27 properties that were held in the two joint ventures.

(3) On March 31, 2025, the Company closed on the transfer and distribution of membership interests in its PR II EXR JV LLC joint venture.

10 unchanged sentences

Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities on the Company’s condensed consolidated statements of operations.

(5) In October 2019, the Company invested $ 200,000 in shares of convertible preferred stock of SmartStop with a dividend rate of 7.00 % per annum, subject to increase after five years .

The preferred shares are generally not redeemable for five years , except in the case of a change of control or initial listing of SmartStop.

Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company’s

EXTRA SPACE STORAGE INC.

1 unchanged sentence

Amounts in thousands, except store and share data, unless otherwise stated

condensed consolidated statements of operations.

Subsequent to quarter end, the Company was repaid its $ 200,000 preferred equity investment in SmartStop.

(6) In October 2019, the Company invested $ 200,000 in shares of convertible preferred stock of SmartStop with a dividend rate of 7.00 % per annum as of October 2024.

Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company’s condensed consolidated statements of operations.

On April 4, 2025, the Company was repaid its $ 200,000 preferred equity investment in SmartStop.

INVESTMENTS IN DEBT SECURITIES AND NOTES RECEIVABLE

3 unchanged sentences

Information about these balances is as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Debt securities - preferred stock $ 300,000 $ 300,000

10 unchanged sentences

If the investment is not retired after six years , the preferred dividends increase annually.

The Company offers bridge loan financing to certain of its third-party self-storage owners.

The Company offers bridge loan financing to certain third-party self-storage owners for whom it manages properties.

These notes receivable consist of mortgage loans receivable, which are collateralized by self-storage properties that the Company manages, and mezzanine loans receivable, which are secured by equity interest pledges.

As of March 31, 2025, 77 % of the notes held are mortgage receivables.

As of June 30, 2025, 79 % of the notes held are mortgage receivables.

The Company may sell a portion of the mortgage receivables.

These notes receivable typically have a term of three years with two one-year extensions and have variable interest rates.

During the three months ended March 31, 2025, the Company sold a total principal amount of $ 25,875 of its mortgage bridge loans receivable to third parties for par, closed on $ 49,870 in initial loan draws, and recorded $ 12,855 of draws for interest payments.

During the six months ended June 30, 2025, the Company sold a total principal amount of $ 32,371 of its mortgage bridge loans receivable to third parties for par, closed on $ 210,829 in initial loan draws, and recorded $ 24,480 of draws for interest payments.

The bridge loans typically have a loan to value ratio between 70 % and 80 % at origination.

As of March 31, 2025, none of the notes receivable are in past-due or nonaccrual status, and the allowance for potential credit losses is immaterial.

As of June 30, 2025, none of the notes receivable are in past-due or nonaccrual status, and the allowance for potential credit losses is immaterial.

EXTRA SPACE STORAGE INC.

2 unchanged sentences

The components of term debt are summarized as follows:

Term Debt March 31, 2025 December 31, 2024

Term Debt June 30, 2025 December 31, 2024

Secured notes payable (1)

8 unchanged sentences

(1) The loans are collateralized by mortgages on real estate assets and the assignment of rents.

(2) Unsecured senior notes from the Life Storage Merger were recorded at fair value, resulting in a discount to be amortized over the term of the debt.

The following table summarizes the scheduled maturities of term debt, excluding available extensions, at March 31, 2025:

(2) Unsecured senior notes from the Life Storage Merger were recorded at fair value, resulting in a discount of $ 293,134 to be amortized over the term of the debt.

Also includes net premium from bond offerings of $ 13,853 offset by discount from assumed debt of $ 10,049 .

The following table summarizes the scheduled maturities of term debt, excluding available extensions, at June 30, 2025:

2025 $ 405,592

9 unchanged sentences

The commercial paper notes are issued under customary terms in the commercial paper market and are issued at a discount from par or, alternatively, can be issued at par and bear varying interest rates on a fixed or floating basis.

The net proceeds from the issuances of the notes will be used for general working capital and other general corporate purposes.

The net proceeds from the issuances of the notes are used for general working capital and other general corporate purposes.

General corporate purposes may include, but are not limited to, the repayment of other debt and selective development, redevelopment, or acquisition of properties.

Outstanding commercial paper notes have been included in revolving lines of credit and commercial paper on the Company’s consolidated balance sheets.

The commercial paper notes sold during the three months ended March 31, 2025 had a weighted-average maturity term of 13 days.

At March 31, 2025, there were $ 580,000 in issuances outstanding under the commercial paper program.

Outstanding commercial paper notes have been included in revolving lines of credit and commercial paper on the Company’s condensed consolidated balance sheets.

At June 30, 2025, there were $ 700,000 in issuances outstanding under the commercial paper program with a weighted-average maturity of 19 days.

EXTRA SPACE STORAGE INC.

3 unchanged sentences

The following table presents information on the Company’s lines of credit and commercial paper for the periods indicated:

As of March 31, 2025

As of June 30, 2025

Revolving Lines of Credit and Commercial Paper Amount Drawn Capacity Interest Rate Maturity Basis Rate (1)

5 unchanged sentences

(1) Daily Simple Secured Overnight Financing Rate (“SOFR”) for credit lines.

(2) Basis Rate as of March 31, 2025.

(2) Basis Rate as of June 30, 2025.

Rate is subject to change based on the Company's investment grade rating.

4 unchanged sentences

The Company’s unsecured debt is subject to certain financial covenants.

As of March 31, 2025, the Company was in compliance with all of its financial covenants.

As of March 31, 2025, the Company’s percentage of fixed-rate debt to total debt was 78.8 %.

As of June 30, 2025, the Company was in compliance with all of its financial covenants.

As of June 30, 2025, the Company’s percentage of fixed-rate debt to total debt was 77.6 %.

The weighted average interest rates of the Company’s fixed and variable-rate debt were 4.2 % and 5.3 %, respectively.

11 unchanged sentences

A portion of these changes is excluded from accumulated other comprehensive income as it is allocated to noncontrolling interests.

During the three months ended March 31, 2025 and 2024, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

During the three and six months ended June 30, 2025 and 2024, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

In the coming 12 months, the Company estimates that $ 6,239 will be reclassified as an increase to interest income.

The Company held 12 active derivative financial instruments, which had a total current notional amount of $ 1,079,466 as of March 31, 2025 and one forward-starting derivative financial instrument with an effective date of July 14, 2025.

The Company held 10 active derivative financial instruments, which had a total current notional amount of $ 952,000 as of June 30, 2025 and one forward-starting derivative financial instrument with an effective date of July 14, 2025 and initial notional amount of $ 80,000 .

EXTRA SPACE STORAGE INC.

5 unchanged sentences

Derivatives designated as hedging instruments:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Other assets $ 7,448 $ 15,733

3 unchanged sentences

No tax effect has been presented as the derivative instruments are held by the Company:

Gain (loss) recognized in OCI for the Three Months Ended March 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI for the Three Months Ended March 31,

Gain (loss) recognized in OCI for the Three Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI for the Three Months Ended June 30,

Type 2025 2024 2025 2024

Swap Agreements $ 21 $ 6,045 Interest expense $ 3,186 $ 7,059

Gain (loss) recognized in OCI for the Six Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI for the Six Months Ended June 30,

Type 2025 2024 2025 2024

Swap Agreements $ ( 3,445 ) $ 25,294 Interest expense $ 6,668 $ 15,076

Credit-Risk-Related Contingent Features

2 unchanged sentences

Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement.

As of March 31, 2025, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was immaterial.

As of March 31, 2025, the Company had not posted any collateral related to these agreements.

If the Company had breached any of these provisions as of March 31, 2025, it could have been required to cash settle its obligations under these agreements at their termination value.

As of June 30, 2025, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was immaterial.

As of June 30, 2025, the Company had not posted any collateral related to these agreements.

If the Company had breached any of these provisions as of June 30, 2025, it could have been required to cash settle its obligations under these agreements at their termination value.

STOCKHOLDERS’ EQUITY

2 unchanged sentences

On November 13, 2023, the Company’s board of directors authorized a share repurchase program allowing for the repurchase of shares with an aggregate value up to $ 500,000 .

During the year ended December 31, 2024 and the three months ended March 31, 2025, no shares were repurchased.

As of March 31, 2025, the Company had remaining authorization to repurchase shares with an aggregate value up to $ 500,000 .

Subsequent to quarter end, the Company repurchased 68,585 shares at an average price of $ 125.62 per share, paying a total of $ 8,616 .

During the year ended December 31, 2024, no shares were repurchased.

During the six months ended June 30, 2025, the Company repurchased 68,585 shares at an average price of $ 125.62 per share, paying a total of $ 8,615 .

As of June 30, 2025, the Company had remaining authorization to repurchase shares with an aggregate value up to $ 491,385 .

EXTRA SPACE STORAGE INC.

8 unchanged sentences

The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the condensed consolidated balance sheets.

Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount and (2) the redemption value as of the end of the period in which the determination is made.

At March 31, 2025 and December 31, 2024, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company’s condensed consolidated balance sheets.

Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made.

At June 30, 2025 and December 31, 2024, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company’s condensed consolidated balance sheets.

The partnership agreement of the Operating Partnership (as amended, the “Partnership Agreement”) provides for the designation and issuance of the OP Units.

The balances for each of the specific Preferred OP Units as presented in the Statements of Noncontrolling Interests and Equity as of the periods indicated are as follows:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Series B Units $ 33,567 $ 33,567

4 unchanged sentences

The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

As of March 31, 2025 and December 31, 2024, there were no outstanding Series A Units.

As of June 30, 2025 and December 31, 2024, there were no outstanding Series A Units.

Series B Redeemable Preferred Units

2 unchanged sentences

The Series B Units were issued in 2013 and 2014.

The Series B Units have a liquidation value of $ 25.00 per unit for a fixed liquidation value of $ 33,567 which represents 1,342,727 Series B Units outstanding at March 31, 2025.

The Series B Units have a liquidation value of $ 25.00 per unit for a fixed liquidation value of $ 33,567 which represents 1,342,727 Series B Units outstanding at June 30, 2025.

Holders of the Series B Units receive distributions at an annual rate of 6.0 %.

4 unchanged sentences

The Series C Units ranked junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

As of March 31, 2025 and December 31, 2024, there were no outstanding Series C Units.

As of June 30, 2025 and December 31, 2024, there were no outstanding Series C Units.

EXTRA SPACE STORAGE INC.

9 unchanged sentences

In addition, certain of the Series D Units are exchangeable for OP Units at the option of the holder until the tenth anniversary of the date of issuance, with the number of OP Units to be issued equal to $ 25.00 per Series D Unit, divided by the value of a share of common stock as of the exchange date.

During the three months ended March 31, 2025, 890,594 Series D Units were redeemed for 143,830 shares of common stock.

During the six months ended June 30, 2025, 890,594 Series D Units were redeemed for 143,830 shares of common stock.

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP AND OTHER NONCONTROLLING INTERESTS

1 unchanged sentence

The Company’s interest in its stores is held through the Operating Partnership.

Between its general partner and limited partner interests, the Company held a 95.6 % ownership interest in the Operating Partnership as of March 31, 2025.

Between its general partner and limited partner interests, the Company held a 95.6 % ownership interest in the Operating Partnership as of June 30, 2025.

The remaining ownership interests in the Operating Partnership (including Preferred OP Units) of 4.4 % are held by certain former owners of assets acquired by the Operating Partnership.

As of March 31, 2025 and December 31, 2024, the noncontrolling interest in the Operating Partnership is shown on the balance sheet net of a note receivable of $ 50,000 because a borrower under the note receivable is also a holder of OP Units.

As of June 30, 2025 and December 31, 2024, the noncontrolling interest in the Operating Partnership is shown on the balance sheet net of a note receivable of $ 50,000 because a borrower under the note receivable is also a holder of OP Units.

This note receivable originated in December 2024, bears interest at 10 % per annum and matures on December 30, 2025.

1 unchanged sentence

OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company’s option in cash, based upon the fair market value of an equivalent number of shares of the Company’s common stock (based on the ten-day average trading price) at the time of the redemption, or shares of the Company’s common stock on a one -for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement.

As of March 31, 2025, the ten-day average closing price of the Company’s common stock was $ 145.97 and there were 9,380,327 OP Units outstanding.

Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on March 31, 2025 and the Company elected to pay the OP Unit holders cash, the Company would have paid $ 1,369,246 in cash consideration to redeem the units.

As of June 30, 2025, the ten-day average closing price of the Company’s common stock was $ 147.13 and there were 9,347,849 OP Units outstanding.

Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on June 30, 2025 and the Company elected to pay the OP Unit holders cash, the Company would have paid $ 1,375,349 in cash consideration to redeem the units.

OP Unit activity is summarized as follows for the periods presented:

For the Three Months Ended March 31,

For the Six Months Ended June 30,

OP Units redeemed for common stock 41,978 264,145

OP Units issued in conjunction with business combination, acquisitions, and preferred unit conversion 37,886 —

Value of OP Units issued in conjunction with business combination, acquisitions, and preferred unit conversion $ 5,878 $ —

OP Units redeemed for cash 2,000 —

Cash paid for OP Units redeemed $ 279 $ —

OP Units issued in conjunction with acquisitions 37,886 —

Value of OP Units issued in conjunction with acquisitions $ 5,878 $ —

GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity.

8 unchanged sentences

Other Noncontrolling Interests

Other noncontrolling interests represent the ownership interest of partners in ten consolidated joint ventures as of March 31, 2025.

There are a total of 15 stores in consolidated joint ventures, ten of which are operating and five of which are under development.

Other noncontrolling interests represent the ownership interest of partners in ten consolidated joint ventures as of June 30, 2025.

There are a total of 15 stores in these consolidated joint ventures, 11 of which are operating and four of which are under development.

The voting interests of the partners are 25.0 % or less.

Based on the facts and circumstances of each of the Company’s joint ventures, the Company has determined that one of the joint ventures at March 31, 2025 was a variable interest entity (“VIE”) in accordance with ASC 810, “Consolidation.” The Company has consolidated that joint venture as it was determined that the Company has the power to direct the activities of the joint venture and is the primary beneficiary of the joint venture.

Based on the facts and circumstances of each of the Company’s joint ventures, the Company has determined that one of the joint ventures at June 30, 2025 was a variable interest entity (“VIE”) in accordance with ASC 810, “Consolidation.” The Company has consolidated that joint venture as it was determined that the Company has the power to direct the activities of the joint venture and is the primary beneficiary of the joint venture.

SEGMENT INFORMATION

1 unchanged sentence

The Company’s CODM is its Executive Committee (“EC”), which uses net operating income (“NOI”) to assess the performance of the business for the Company’s reportable operating segments.

The EC is comprised of the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, Chief Digital Officer, Chief Strategy and Partnership Officer, Chief Operating Officer, and Chief Legal Officer.

The Company’s segments are comprised of two reportable segments:

3 unchanged sentences

The Company’s consolidated revenues equal total segment revenues plus management fees and other income.

The self-storage operations activities include rental operations of wholly-owned stores.

The self-storage operations activities include rental operations of stores that are wholly-owned and in consolidated joint ventures.

Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company.

5 unchanged sentences

Financial information for the Company’s business segments is set forth below:

For the Three Months Ended March 31,

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

Self-Storage Operations $ 721,004 $ 697,100 $ 1,425,384 $ 1,385,144

11 unchanged sentences

Other segment items (1)

4,485 4,051 8,379 7,737

Total self-storage operations expenses 227,621 196,902 451,203 401,420

12 unchanged sentences

Depreciation and amortization expense ( 177,266 ) ( 194,809 ) ( 357,622 ) ( 391,775 )

Gain on real estate assets held for sale and sold, net 35,761 —

Gain (loss) on real estate assets held for sale and sold, net ( 864 ) ( 54,659 ) 34,897 ( 54,659 )

Interest expense ( 146,128 ) ( 137,133 ) ( 288,527 ) ( 270,020 )

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes ( 11,313 ) ( 10,705 )

Non-cash interest expense related to amortization of discount on unsecured senior notes, net ( 11,770 ) ( 10,853 ) ( 23,083 ) ( 21,558 )

Interest income 41,998 31,226 80,965 54,799

8 unchanged sentences

COMMITMENTS AND CONTINGENCIES

As of March 31, 2025, the Company was under agreement to originate $ 106,484 in bridge loans in 2025.

As of March 31, 2025, the Company was involved in various legal proceedings and was subject to various claims and complaints arising in the ordinary course of business.

As of June 30, 2025, the Company was under agreement to originate $ 151,760 in bridge loans in 2025 and $ 20,900 in 2026.

As of June 30, 2025, the Company was involved in various legal proceedings and was subject to various claims and complaints arising in the ordinary course of business.

Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty.

5 unchanged sentences

However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to its properties could result in future material environmental liabilities.

SUBSEQUENT EVENTS

On April 30, 2025, the Company closed on the acquisition of 11 properties from the ESS-NYFL JV LP joint venture, where the Company purchased its joint venture partners’ equity interest of 84 % for $ 99,512 in cash and $ 150,000 in assumed debt.

Additionally, on April 30, 2025, the Company closed on the acquisition of 16 properties from the ESS CA-TIVS JV LP joint venture, where the Company purchased its joint venture partner’s equity interest of 45 % for $ 53,662 in cash and $ 108,000 in assumed debt.

These joint ventures are included in the Company’s condensed consolidated financial statements at March 31, 2025 in investments in unconsolidated real estate entities and accounted for under the equity method of accounting.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements