What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-02-20 compared with 2025-02-28 · 306 added, 353 removed, 1183 unchanged (36% of the section changed)

36 unchanged sentences

Purchase Price Allocation

Description of the Matter For the year ended December 31, 2024, the Company completed the acquisition of 58 self-storage properties (“stores”) for a total purchase price of $581.0 million.

Description of the Matter For the year ended December 31, 2025, the Company completed the acquisition of 76 self-storage properties (“stores”) for a total purchase price of $1.0 billion.

As further discussed in Notes 2 and 5 of the consolidated financial statements, the transactions were accounted for as asset acquisitions, and the purchase price was allocated based on a relative fair value of assets acquired and liabilities assumed.

Auditing the accounting for the Company’s 2025 acquisitions of stores was subjective because the Company had to exercise a high level of judgment in determining the estimated fair value of acquired land and buildings.

The estimated fair value of land was based on comparable market information adjusted for differences in land characteristics.

The estimated fair value of the acquired land was based on comparable market information adjusted for differences in land characteristics.

The estimated fair value of the acquired buildings was based upon the estimated replacement cost, which was calculated by estimating the cost of building similar stores in comparable markets and adjusting those costs for the age, quality, and building characteristics associated with the acquired stores.

58 unchanged sentences

Tenant reinsurance 68,873 73,886 58,874

Transaction costs — — 1,548

Life Storage Merger transition costs — — 66,732

2 unchanged sentences

Total expenses 1,888,541 1,855,873 1,390,103

Gain (loss) on real estate assets held for sale and sold, net ( 25,906 ) — 14,249

Loss on real estate assets held for sale and sold, net ( 76,310 ) ( 25,906 ) —

Impairment of Life Storage trade name — ( 51,763 ) —

1 unchanged sentence

Interest expense ( 587,613 ) ( 551,354 ) ( 419,035 )

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes ( 43,720 ) ( 18,786 ) —

Non-cash interest expense related to amortization of discount on unsecured senior notes, net ( 47,519 ) ( 43,720 ) ( 18,786 )

Interest income 163,202 124,422 84,857

34 unchanged sentences

Issuance of common stock in connection with share based compensation — — — 149,995 2 26,636 — — 26,638

Restricted stock grants canceled — — — ( 10,614 ) — — — — —

Redemption of Operating Partnership units for cash — ( 1,654 ) — — — ( 2,963 ) — — ( 4,617 )

Redemption of Preferred B Units in the Operating Partnership for cash ( 4,500 ) — — — — — — — ( 4,500 )

Issuance of Operating Partnership units in conjunction with business combinations — 16,000 — — — — — — 16,000

Issuance of Operating Partnership units in conjunction with acquisitions — 125,000 — — — — — — 125,000

Issuance of Preferred D units in the Operating Partnership in conjunction with business combinations 6,000 — — — — — — — 6,000

Issuance of common stock in conjunction with acquisitions — — — 186,766 2 40,961 — — 40,963

Repurchase of common stock, net of offering costs — — — ( 381,786 ) ( 4 ) — — ( 63,004 ) ( 63,008 )

Noncontrolling interest in consolidated joint ventures — — 771 — — — — — 771

Net income (loss) 17,623 42,853 ( 8 ) — — — — 860,688 921,156

Other comprehensive income 577 4,328 — — — — 91,344 — 96,249

Distributions to Operating Partnership units held by noncontrolling interests ( 17,308 ) ( 40,485 ) — — — — — — ( 57,793 )

Dividends paid on common stock at $ 6.00 per share

— — — — — — — ( 805,311 ) ( 805,311 )

Balances at December 31, 2022 $ 261,502 $ 556,095 $ 1,080 133,921,020 $ 1,339 $ 3,345,332 $ 48,798 $ ( 135,872 ) $ 4,078,274

Extra Space Storage Inc.

Consolidated Statements of Stockholders' Equity

(amounts in thousands, except share data)

Noncontrolling Interests Extra Space Storage Inc.

Stockholders' Equity

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, 2022 $ 261,502 $ 556,095 $ 1,080 133,921,020 $ 1,339 $ 3,345,332 $ 48,798 $ ( 135,872 ) $ 4,078,274

Issuance of common stock in connection with share based compensation — — — 149,995 2 26,636 — — 26,638

Taxes paid upon net settlement of share based compensation — — — ( 8,295 ) — ( 7,640 ) — — ( 7,640 )

37 unchanged sentences

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

Extra Space Storage Inc.

Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

Noncontrolling Interests Extra Space Storage Inc.

Stockholders’ Equity

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

Issuance of common stock for share based compensation and taxes paid upon net settlement — — — 132,248 1 27,582 — — 27,583

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

Redemption of Operating Partnership units for cash — ( 924 ) — — — ( 529 ) — — ( 1,453 )

Issuance of Operating Partnership units in conjunction with acquisitions — 19,736 — — — — — — 19,736

Repurchase of common stock — — — ( 1,158,244 ) ( 12 ) — — ( 149,536 ) ( 149,548 )

Purchase of remaining equity interest in existing unconsolidated joint venture — — ( 1,426 ) — — ( 4,568 ) — — ( 5,994 )

Noncontrolling interest in consolidated joint ventures — — 3,956 — — — — — 3,956

Net income 2,894 45,625 20 — — — — 973,999 1,022,538

Other comprehensive loss — ( 648 ) — — — — ( 13,226 ) — ( 13,874 )

Distributions to Operating Partnership units and other noncontrolling interests ( 2,894 ) ( 60,865 ) ( 213 ) — — — — — ( 63,972 )

Dividends paid on common stock at $ 6.48 per share

— — — — — — — ( 1,374,298 ) ( 1,374,298 )

Balances at December 31, 2025 $ 53,827 $ 822,869 $ 14,174 211,155,322 $ 2,112 $ 14,880,646 $ ( 420 ) $ ( 1,449,172 ) $ 14,324,036

See notes to consolidated financial statements.

9 unchanged sentences

Amortization of deferred financing costs 11,930 16,673 18,949

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 43,720 18,786 —

Non-cash item - Amortization of Premium Portion of Dec 2024 $300M Bond Add-On ( 197 ) — —

Non-cash interest expense related to amortization of discount on unsecured senior notes, net 47,519 43,720 18,786

Non-cash lease expense 12,888 3,224 1,964

Accrual of interest income added to principal of debt securities and notes receivable ( 32,554 ) ( 31,367 ) ( 37,907 )

Compensation expense related to share-based awards 35,537 28,991 26,484

(Gain) loss on real estate assets held for sale and sold, net 25,906 — ( 14,249 )

Loss on real estate assets held for sale and sold, net 76,310 25,906 —

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest ( 54,521 ) ( 13,730 ) —

9 unchanged sentences

Life Storage Merger, net of cash acquired — — ( 1,182,411 )

Cash paid for business combination — — ( 157,302 )

Development and redevelopment of real estate assets ( 143,025 ) ( 128,618 ) ( 100,181 )

Proceeds from sale of real estate assets and investments in real estate ventures 124,928 2,132 39,367

Proceeds from sale of real estate assets 368,183 124,928 2,132

Investment in unconsolidated real estate entities ( 127,105 ) ( 301,917 ) ( 180,279 )

2 unchanged sentences

Proceeds from sale of notes receivable 112,564 183,632 167,495

Principal payments received from notes receivable 140,963 142,192 283,636

Payments received on notes receivable 246,476 140,963 142,192

Issuance of loan collateralized with OP units — ( 50,000 ) —

11 unchanged sentences

Redemption of Operating Partnership units for cash ( 1,453 ) ( 2,341 ) ( 108 )

Contributions from noncontrolling interests 29 74 —

Dividends paid on common stock ( 1,374,298 ) ( 1,375,003 ) ( 1,046,341 )

Distributions to noncontrolling interests ( 63,177 ) ( 59,719 ) ( 57,793 )

Distributions to noncontrolling interests, net of contributions ( 62,896 ) ( 63,148 ) ( 59,645 )

Net cash (used in) provided by financing activities ( 1,036,103 ) ( 202,290 ) 423,130

Net (decrease) increase in cash, cash equivalents, and restricted cash 38,220 7,348 21,541

Net change in cash, cash equivalents, and restricted cash ( 123 ) 38,220 7,348

Cash, cash equivalents, and restricted cash, beginning of the period 143,303 105,083 97,735

10 unchanged sentences

Interest paid $ 564,665 $ 499,417 $ 338,552

Income taxes paid 33,772 22,753 18,957

Supplemental schedule of noncash investing and financing activities:

6 unchanged sentences

Note Payable — 87,696 —

Issuance of OP and Preferred OP units in conjunction with business combination

Preferred OP units issued $ — $ — $ ( 6,000 )

OP units issued — — ( 16,000 )

Conversion of Preferred OP Units to common OP Units

6 unchanged sentences

Real estate assets, net $ 487,894 $ 137,761 $ —

Value of equity issued ( 100,414 ) — ( 165,965 )

Net liabilities assumed ( 2,842 ) — —

Value of OP units issued ( 19,736 ) ( 100,414 ) —

Value of investment in consolidated real estate ventures ( 135,930 ) — —

Net debt assumed ( 299,078 ) — —

Bridge loan receivable ( 33,150 ) ( 39,200 ) —

Investment in unconsolidated real estate ventures — 1,853 —

Finance lease liability — — ( 6,823 )

Life Storage Merger real estate assets

8 unchanged sentences

Accounts payable and accrued expenses ( 3,768 ) ( 11,037 ) ( 10,508 )

Buyback of bridge loan

Real estate assets, net $ 39,200 $ — $ —

Bridge loan receivable ( 39,200 ) — —

See notes to consolidated financial statements.

4 unchanged sentences

Extra Space Storage Inc.

(the “Company”) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”), formed as a Maryland corporation on April 30, 2004, to own, operate, manage, acquire, develop and redevelop professionally managed self-storage properties located throughout the United States.

(the “Company”) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”), formed as a Maryland corporation on April 30, 2004 to own, operate, manage, acquire, develop and redevelop self-storage properties (“stores”) and provide lending to owners of stores located throughout the United States.

The Company was formed to continue the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977.

3 unchanged sentences

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

At December 31, 2024, the Company had direct and indirect equity interests in 2,436 storage facilities.

At December 31, 2025, the Company had direct and indirect equity interests in 2,425 stores.

In addition, the Company managed 1,856 stores for third parties bringing the total number of stores which it owns and/or manages to 4,281 .

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.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

13 unchanged sentences

The Company determined that its operating partnership met the definition of a VIE and is consolidated.

Additionally, as of December 31, 2024 the Company determined in addition to its operating partnership that it had one consolidated joint venture VIE, consisting of one store.

Additionally, as of December 31, 2025 the Company determined that in addition to its operating partnership it had one consolidated joint venture VIE, consisting of one store.

Substantially all of the assets and liabilities of the Company are related to the operating partnership VIE.

16 unchanged sentences

In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees.

In conjunction with the Financial Accounting Standard Board’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

In conjunction with the fair value measurement guidance by the Financial Accounting Standard Board (the “FASB”), the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

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.

3 unchanged sentences

Fair Value Measurements at Reporting Date Using

Description December 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

Description Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3)

Other assets - Cash flow hedge swap agreements $ — $ 3,362 $ —

2 unchanged sentences

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Long-lived assets held for use are evaluated for impairment when events or circumstances, including the Company’s

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment.

assumptions about the use of the asset, indicate there may be impairment.

The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist.

The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount.

For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term.

In addition, the Company reviews stores in the lease-up stage and compares actual operating results to original projections.

The Company focuses on stores that do not have positive net operating cash flows.

For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely generate positive net operating cash flows in the short term.

When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets.

2 unchanged sentences

When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs.

The Company compares the carrying value of the related long-lived assets to the discounted future net operating cash flows attributable to the assets (categorized within Level 3 of the fair value hierarchy).

If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize a loss on the assets held for sale.

The Company compares the carrying value of the related long-lived assets to its estimated fair value, supported by current third-party appraisal or broker market data (categorized within Level 3 of the fair value hierarchy).

If the estimated fair value, net of selling costs, is less than the net carrying value of the assets, the Company would recognize a loss on the assets held for sale.

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

Refer to the Real Estate Assets footnote below for further discussion on the Company's held for sale properties for the year ended December 31, 2024.

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

Refer to note 5 for additional details on disposition and held for sale activity.

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.

7 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 consolidated balance sheets at December 31, 2024 and 2023, approximate fair value.

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

The fair values of the Company’s notes receivable from Common Operating Partnership unit holders were based on the discounted estimated future cash flow of the notes (categorized within Level 3 of the fair value hierarchy);

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 consolidated balance sheets at December 31, 2025 and 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.

The fair value of the Company’s note receivable from a Common Operating Partnership unit holder was based on the discounted estimated future cash flow of the note (categorized within Level 3 of the fair value hierarchy).

The discount rate used approximated the current market rate for loans with similar maturities and credit quality.

4 unchanged sentences

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

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

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

December 31, 2025 December 31, 2024

1 unchanged sentence

Value Carrying

Notes receivable from Preferred and Common Operating Partnership unit holders $ 52,112 $ 50,000 $ 1,886 $ 1,900

Note receivable from Common Operating Partnership unit holder $ 51,122 $ 50,000 $ 52,112 $ 50,000

Fixed rate notes receivable 62,307 62,207 40,818 42,000

16 unchanged sentences

Acquisition-related transaction costs are capitalized as part of the purchase price.

Intangible lease rights represent:

(1) purchase price amounts allocated to leases on three stores that cannot be classified as ground or building leases;

these rights are amortized to expense over the life of the leases and (2) intangibles related to ground leases on nine stores where the leases were assumed by the Company at rates that were lower than the current market rates for similar leases.

Intangible lease rights represent intangibles related to ground leases on 10 stores where the leases were assumed by the Company at rates that were lower than the current market rates for similar leases.

The values associated with these assumed leases were recorded as intangibles, which will be amortized over the lease terms.

4 unchanged sentences

Investments in Unconsolidated Real Estate Entities

Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's noncontrolling interest in real estate joint ventures that own stores and the Company's interest in preferred stock of SmartStop Self Storage REIT, Inc.

(“SmartStop”) and Strategic Storage Trust VI, Inc.

(“Strategic Storage”), an affiliate of SmartStop.

(“SmartStop”), Strategic Storage Trust VI, Inc.

and Strategic Storage Growth Trust III, Inc.

(collectively, “Strategic Storage”), affiliates of SmartStop, and the Company’s noncontrolling interest in real estate joint ventures.

The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting in the accompanying consolidated financial statements.

Under the equity method, the Company’s investment in real estate ventures is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions.

Equity in earnings of real estate ventures is generally

Equity in earnings of real estate ventures is generally recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated real estate ventures.

For the purposes of presentation in the statement of cash flows, the Company follows the “nature of distribution” approach for

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated real estate ventures.

For the purposes of presentation in the statement of cash flows, the Company follows the “nature of distribution” approach for classification of distributions from joint ventures.

classification of distributions from joint ventures.

Under this approach, cash flows are classified on the basis of the nature of the activity or activities of the investee that generated the distribution as either a return on investment (classified as a cash inflow from operating activities) or a return of investment (classified as a cash inflow from investing activities).

The Company evaluated its investment in preferred stock of non-public real estate entities and determined it did not have significant influence over the entity, and the investment in preferred stock does not have a readily determinable fair value, therefore it has been recorded at the transaction price.

The Company periodically evaluates the investment for impairment.

The Company evaluated its investment in preferred stock of non-public real estate entities and determined it did not have significant influence over the entities, and the investments do not have a readily determinable fair value and therefore have been recorded at the transaction price.

The Company periodically evaluates the investments for impairment.

No impairments were recorded in our evaluations for any period presented herein.

8 unchanged sentences

The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting.

Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges.

Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges.

Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges.

Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, such as those subject to interest rate risk, or other types of forecasted transactions, are considered cash flow hedges.

Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge.

1 unchanged sentence

The Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Refer to note 9 for further information regarding the Company’s derivative instruments and hedging activities.

Risk Management and Use of Financial Instruments

22 unchanged sentences

These services are provided in exchange for monthly management fees, which are based on a percentage of revenues collected from stores owned by third parties and unconsolidated joint ventures.

MSAs generally have original terms from three to five years , after which management services are provided on a month-to-month basis unless terminated.

MSAs generally have original terms from three to five years .

Management fees are due on the last day of each calendar month that management services are provided.

10 unchanged sentences

Tenants can purchase policies in amounts up to ten thousand dollars of insurance coverage in exchange for a monthly fee.

As of December 31, 2024, the total number of tenant insurance policies was 1.7 million, which was an aggregate coverage of approximately $ 5.3 billion.

As of December 31, 2025, the total number of tenant insurance policies was approximately 1.8 million, which was an aggregate coverage of approximately $ 5.7 billion.

The Company’s exposure per claim is limited by the maximum amount of coverage chosen by each tenant.

4 unchanged sentences

The Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”).

In order to maintain its qualification as a REIT, among other requirements, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets.

In order to maintain its qualification as a REIT, among other requirements, the Company is required to distribute annually at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets.

As a REIT, the Company is not subject to U.S.

9 unchanged sentences

A Subsidiary REIT is subject to the various REIT qualification requirements and other limitations described herein that are applicable to the Company.

If a Subsidiary REIT were

If a Subsidiary REIT were to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to U.S.

federal income tax, (ii) shares in such

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

to fail to qualify as a REIT, then (i) that Subsidiary REIT would become subject to U.S.

federal income tax, (ii) shares in such Subsidiary REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs, and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless it could avail itself of certain relief provisions.

Subsidiary REIT would cease to be qualifying assets for purposes of the asset tests applicable to REITs, and (iii) it is possible that the Company would fail certain of the asset tests applicable to REITs, in which event the Company would fail to qualify as a REIT unless it could avail itself of certain relief provisions.

The Company has elected to treat certain corporate subsidiaries, including Extra Space Management, Inc.

8 unchanged sentences

Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred.

As of December 31, 2024 and 2023, the Company had no interest or penalties related to uncertain tax provisions.

As of December 31, 2025 and 2024, the Company had no interest or penalties related to uncertain tax positions.

Stock-Based Compensation

The measurement and recognition of compensation expense for all share-based payment awards to employees and directors are based on estimated fair values.

Awards granted are valued at fair value and any compensation expense is recognized over the service periods of each award.

Awards granted are valued at fair value, and any compensation expense is recognized over the service and/or performance periods of each award.

Earnings Per Common Share

4 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 options, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series D Redeemable Preferred Units (“Series D Units”) and together with the Series A Units and 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.

Potential common shares are securities (such as options, 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 redemption right.

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 of $ 144.15 for the year ended December 31, 2025.

5 unchanged sentences

2025 2024 2023

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

Equivalent Shares

(if converted) Equivalent Shares

(if converted)

Common OP Units 9,369,519 8,659,092 7,970,487

2 unchanged sentences

9,760,709 9,802,565 9,538,666

For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series A Units for common shares upon redemption, where the Company had the option to redeem in cash or shares and where the Company had stated the positive intent and ability to settle at least $ 101,700 of the instrument in cash (or net settle a portion of the Series A Units against the related outstanding note receivable), only the amount of the instrument in excess of $ 101,700 was considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46.

Accordingly, the number of shares included in the computation for diluted earnings per share related to the Series A Units in the relevant periods is equal to the number of Series A Units that were outstanding, with no additional shares included related to the $ 101,700 fixed amount.

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

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

For the Year Ended December 31,

2 unchanged sentences

Earnings and dividends allocated to participating securities ( 1,739 ) ( 1,495 ) ( 1,230 )

Earnings for basic computations 853,186 801,968 859,487

Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units — — 50,706

Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) — — ( 2,288 )

Net income for diluted computations $ 853,186 $ 801,968 $ 907,905

Net income for basic and diluted computations 972,260 853,186 801,968

Weighted average common shares outstanding:

Average number of common shares outstanding - basic 211,850,521 211,575,240 169,216,989

OP Units — — 6,749,995

Series A Units — — 875,480

Shares related to dilutive stock options — 2,440 3,893

4 unchanged sentences

Recently Issued Accounting Standards

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.

2023-07 – “Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures” .

The amended guidance requires the disclosure of incremental segment information, including significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and a reconciliation of segment profit or loss to net income.

The title and position of the CODM must also be disclosed, along with how the CODM uses the reported measures to assess segment

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

performance and to allocate resources.

Pursuant to this ASU, the footnotes to the Company's consolidated financial statements include incremental disclosures related to its two reportable segments:

(1) self-storage operations and (2) tenant reinsurance.

The Company has adopted this standard as of December 31, 2024.

Refer to note 17 for further discussion of the Company's reportable segments.

In December 2023, the FASB issued ASU No.

2023-09 – “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures” .

The amended guidance focuses on providing more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

Pursuant to this ASU, the footnotes to the Company's consolidated financial statements may include incremental disclosures related to income taxes.

This standard is effective for annual periods beginning after December 15, 2024, therefore, compliance with this ASU will be required beginning with the Company's annual report on Form 10-K for the year ending December 31, 2025, with early adoption permitted.

The Company expects to adopt this ASU for its annual report on Form 10-K for the year ending December 31, 2025, and is continuing to research the impact of this amended guidance, however, does not expect this standard to have a material impact on its consolidated financial statements.

In November 2024, the FASB issued ASU No.

2024-03 – “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40)”.

The guidance requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item.

2024-03 – “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40).” The new standard requires the disclosure of additional information related to certain costs and expenses, including amounts of inventory purchases, employee compensation, and depreciation and amortization included in each income statement line item.

For any remaining items within each relevant expense caption, entities must provide a qualitative description of the nature of those expenses.

The guidance also requires disclosure of the total amount of selling expenses and the entity’s definition of selling expenses.

The guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027, therefore, compliance with this ASU will be required beginning with the Company's annual report on Form 10-K for the year ending December 31, 2027.

The new standard does not change the requirements for the presentation of expenses on the face of the statement of operations.

The guidance is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027;

therefore, compliance with this ASU will be required beginning with the Company’s annual report on Form 10-K for the year ending December 31, 2027.

The guidance may be applied prospectively or retrospectively, and early adoption is permitted.

The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Although the adoption is not expected to have an impact on the Company’s financial statements, it is expected to result in incremental disclosures within the footnotes to the consolidated financial statements.

In December 2023, the FASB issued ASU No.

2023-09 – “Income Taxes (Topic 740):

Improvements to Income Tax Disclosures.” The amended guidance focuses on providing more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information.

Pursuant to this ASU, the footnotes to the Company’s consolidated financial statements include incremental disclosures related to income taxes.

The Company has adopted this standard as of December 31, 2025.

Refer to note 16 for further discussion of the Company’s accounting for income taxes and related disclosures.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

REAL ESTATE ASSETS

11 unchanged sentences

Real estate assets, net $ 25,004,350 $ 24,587,627

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

During the year ended December 31, 2024, the Company had 18 stores classified as held for sale.

Of the 18 stores, 10 had an estimated fair value, net of selling costs, which was less than their net carrying value.

As a result, during the year ended December 31, 2024, the Company recorded estimated losses of $ 63,250 on its consolidated statements of operations.

This amount is shown net of the sale of a property which generated a gain of $ 37,344 .

As of December 31, 2024, the Company had 13 stores classified as held for sale which are included in real estate assets, net .

Of the 13 stores, five had an estimated fair value, net of selling costs, of $ 43,107 , which was less than the net carrying value of the assets.

The loss on these stores is included in gain (loss) on real estate assets held for sale and sold, net.

Assets held for sale are included in the self-storage operations segment of the Company’s segment information.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

In September 2024, the Company amended existing triple-net lease agreements for land and buildings related to 27 stores that had initially been entered into in June and August 2019.

4 unchanged sentences

Amortization related to the tenant relationships and lease rights was $ 21,183 , $ 114,614 , and $ 59,807 for the years ended December 31, 2025, 2024 and 2023, respectively.

The remaining balance of the unamortized lease rights will be amortized over the next four to 38 years.

The remaining balance of the unamortized lease rights will be amortized over the next three to 39 years.

Accumulated amortization related to intangibles was $ 404,709 and $ 363,916 as of December 31, 2025 and 2024, respectively.

4 unchanged sentences

Prepaid expenses and deposits 102,656 137,494

Other intangible assets, net 32,206 66,332

Trade name — 50,000

Fair value of interest rate swaps 15,733 26,183

Equipment and fixtures, net 65,154 50,365

Other intangible assets, net 11,593 32,206

Deferred line of credit financing costs, net 15,335 7,548

Restricted cash 4,260 5,081

Fair value of interest rate swaps 3,362 15,733

$ 515,291 $ 548,986

During the year ended December 31, 2024, the Company decided to operate all stores under a single brand.

As a result of that decision, the Company deemed the Life Storage trade name intangible asset to be impaired and recognized a loss for the full value of the asset.

A loss of 51,763 for the write-off of the asset and related costs has been recorded in impairment of Life Storage trade name on the Company's consolidated statements of operations for the year ended December 31, 2024.

The trade name was originally recorded at fair value based on royalty payments avoided had the trade name been owned by a third party.

This was determined using market royalty rates and a discounted cash flow analysis under the relief-from-royalty method.

Intangible assets are included in the self-storage operations segment of the Company’s segment information.

Depreciation of equipment and fixtures is computed on a straight-line basis over three to five years .

1 unchanged sentence

As of December 31, 2025 and 2024, unamortized software costs were $ 25,294 and $ 16,254 .

During the year ended December 31, 2024 and 2023, the Company recorded amortization expense of $ 5,307 and $ 5,377 , respectively, relating to capitalized software costs.

During the years ended December 31, 2025, 2024 and 2023, the Company recorded amortization expense of $ 4,240 , $ 5,307 and $ 5,377 , respectively, relating to capitalized software costs.

EXTRA SPACE STORAGE INC.

50 unchanged sentences

As a result of that decision, the Company deemed the Life Storage trade name intangible asset to be impaired and recognized a loss for the full value of the asset.

Intangible assets are included in the self-storage operations segment of the Company’s segment information.

• Unsecured senior notes – Unsecured senior notes were recorded at fair value using readily available market data.

4 unchanged sentences

The following table summarizes the accumulated amortization related to intangible assets - other:

December 31, 2024 For the Year Ended December 31, 2024 For the Year Ended December 31, 2023

December 31, 2025 For the Year Ended December 31, 2025 For the Year Ended December 31, 2024 For the Year Ended December 31, 2023

Intangible Assets:

Gross Carrying Amount Accumulated Amortization Amortization Expense Amortization Expense

Gross Carrying Amount Accumulated Amortization Amortization Expense Amortization Expense Amortization Expense

Intangible assets - other $ 82,000 $ 70,431 $ 20,612 $ 34,124 $ 15,695

7 unchanged sentences

Clarifying the Definition of a Business .”

Consideration Paid Total

Period Number of Stores Total 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 Bridge Loan Payoff Fair Value Adjustment of Debt Assumed Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of Equity Issued Real estate assets

Total 2025 76 $ 561,723 $ 299,078 $ 33,150 $ ( 15,018 ) $ 135,930 $ 4,464 $ 19,736 $ 1,039,063

Total 2024 58 $ 479,059 $ — $ — $ — $ 1,853 $ 2,842 $ 100,414 $ 584,168

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.

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

On September 15, 2022, the Company completed the acquisition of multiple entities doing business as Storage Express for a purchase price of $ 590.0 million.

A portion of the consideration paid was in the form of the issuance of 619,294 OP units (a total value of $ 125 million) and the remainder in cash.

The portfolio included 106 operating stores and eight parcels of land for future development, all located in Illinois, Indiana, Kentucky and Ohio.

This acquisition did not meet the definition of a business under ASU 2017-01, “ Business Combinations (Topic 805):

Clarifying the Definition of a Business ” and was therefore recorded as an asset acquisition.

Other Investments

On June 1, 2022, the Company completed the acquisition of Bargold Storage Systems, LLC (“Bargold”) for a purchase price of approximately $ 179.3 million.

Bargold leases space in apartment buildings, primarily in New York City and its boroughs, builds out the space as storage units, and subleases the units to tenants.

As of June 1, 2022, Bargold had approximately 17,000 storage units with an approximate occupancy of 97 %.

This acquisition is considered a business combination under ASU 2017-01, “ Business Combinations (Topic 805):

Clarifying the Definition of a Business .”

The following table summarizes the total consideration transferred to acquire Bargold:

Total cash paid by the company $ 157,302

Fair value of Series D Units issued 16,000

Fair value of OP Units issued 6,000

Total consideration transferred $ 179,302

As part of this acquisition, the Company recorded an expense of $ 1,465 related to transaction costs.

The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the acquisition date:

Cash and cash equivalents $ 175

Fixed assets 6,411

Developed technology 500

Trademarks 500

Customer relationships 1,870

Other assets 125

Accounts payables and accrued liabilities assumed ( 1,090 )

Nets asset acquired 8,491

Goodwill 170,811

Total assets acquired $ 179,302

The following table summarizes the revenues and earnings related to Bargold since the acquisition date of June 1, 2022, which are included in the Company's consolidated statement of operations for the year ended December 31, 2022:

Total revenues $ 9,374

Net income from operations $ 1,718

Pro Forma Information

As noted above, during the year ended December 31, 2022, the Company acquired Bargold.

The following pro forma financial information is based on the combined historical financial statements of the Company and Bargold, however, only includes revenue and presents the Company's results as if the acquisition had occurred on January 1, 2022.

Net income was excluded as it was impracticable to report expenses due to the lack of historical accrual basis accounting.

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

The Company exchanged its 25 % ownership interest in 17 properties for its partner’s 75 % ownership interest in six properties.

The portfolio consisted of 23 properties;

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.

Disposition and Held for Sale Activity

The following table presents the Company’s disposition and held for sale activity for the periods indicated:

Carrying Value of Assets Held for Sale (Gain) / Loss Recognized Number of Stores

2025 Activity

Q1 2025 beginning balance $ 103,756 $ — 13

Additions 8,019 3,759 3

Disposals ( 83,537 ) ( 39,520 ) ( 11 )

Q1 2025 ending balance $ 28,238 $ ( 35,761 ) 5

Additions — — —

Disposals ( 9,440 ) 864 ( 1 )

Q2 2025 ending balance $ 18,798 $ ( 34,897 ) 4

Additions 175,289 105,128 25

Disposals — — —

Q3 2025 ending balance $ 194,087 $ 70,231 29

Additions 6,000 4,291 1

Disposals ( 172,947 ) 1,788 ( 25 )

Q4 2025 ending balance $ 27,140 $ 76,310 5

2024 Activity

Q1 2024 ending balance $ — $ — —

Additions 51,933 54,659 7

Disposals — — —

Q2 2024 ending balance $ 51,933 $ 54,659 7

Additions 83,442 8,990 11

Disposals ( 3,845 ) ( 29 ) ( 1 )

Q3 2024 ending balance $ 131,530 $ 63,620 17

Additions — — —

Disposals ( 27,774 ) ( 37,714 ) ( 4 )

Q4 2024 ending balance $ 103,756 $ 25,906 13

The net losses are shown on the Company’s consolidated statements of operations for the years ended December 31, 2025 and 2024 as loss on real estate assets held for sale and sold, net.

Assets held for sale are included in real estate assets, net , as well as in the self-storage operations segment of the Company’s segment information.

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company’s interest in preferred stock of SmartStop and Strategic Storage, an affiliate of SmartStop, and the Company’s noncontrolling interest in real estate joint ventures.

The Company accounts for its investments in SmartStop and Strategic

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

For the Year Ended December 31, 2022

Total revenues $ 1,930,816

Store Dispositions

During the year ended December 31, 2024, the Company closed on the sale of six stores for total consideration of $ 102,484 .

Five of the six stores had been classified as held for sale.

The five stores previously held for sale had been written down, resulting in a loss of $ 33,662 , while the sale of the sixth store resulted in a $ 37,344 gain.

These amounts have been recognized on the Company's consolidated statements of operations at December 31, 2024, presented within gain (loss) on real estate assets held for sale and sold, net.

The Company disposed of one store on May 18, 2022 and one on June 21, 2022, for a total cash consideration of approximately $ 38,745 , resulting in a gain of approximately $ 14,200 .

Both had been classified as held for sale.

INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES

Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's interest in preferred stock of SmartStop and Strategic Storage, an affiliate of SmartStop, and the Company's noncontrolling interest in real estate joint ventures.

The Company accounts for its investments in SmartStop and Strategic Storage preferred stock, which do not have a readily determinable fair value, at the transaction price less impairment, if any.

Storage preferred stock, which do not have a readily determinable fair value, at the transaction price less impairment, if any.

The Company accounts for its investments in joint ventures using the equity method of accounting.

5 unchanged sentences

This is generally the result of financing distributions, capital events or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization while distributions do not.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Net investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures consist of the following:

3 unchanged sentences

301,794 304,526

304,526 105,339

Storage Portfolio II JV LLC 36 10 % 30 % ( 10,588 ) ( 9,584 )

1 unchanged sentence

Storage Portfolio I LLC 24 34 % 49 % ( 44,537 ) ( 43,803 )

PR II EXR JV LLC 23 25 % 25 % 105,909 108,160

HF2 Sovran HHF Storage Holdings II LLC (2)

ESS CA-TIVS JV LP (4)

— 55 % 55 %- 65 %

HF2 Sovran HHF Storage Holdings II LLC 22 49 % 49 %- 59 %

112,551 114,034

1 unchanged sentence

HF6 191 V Life Storage Holdings LLC 17 20 % 20 % 9,525 10,821

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

PR II EXR JV LLC (5)

— 25 % 25 % — 105,909

4 unchanged sentences

295,205 314,852

SmartStop Self Storage REIT, Inc.

Strategic Storage Growth Trust III, Inc.

Preferred Stock (6)

3 unchanged sentences

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

SmartStop Self Storage REIT, Inc.

Preferred Stock (8)

n/a n/a n/a — 200,000

Net Investments in and Cash distributions in unconsolidated real estate entities 407 $ 993,082 $ 1,257,019

3 unchanged sentences

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

(2) In November 2024, the Company acquired additional ownership interest in HF1 Sovran HHF Storage Holdings LLC and HF2 Sovran HHF Storage Holdings II LLC from its partner in the unconsolidated joint ventures for cash consideration of $ 251,235 .

The transaction increased the equity ownership percentages from 20 % and 15 %, respectively, to 49 % in each unconsolidated joint venture.

The additional investment is presented on the Company's consolidated balance sheets under investments in unconsolidated real estate entities.

(3) In September 2024, the Company sold its membership interest in the Alan Jathoo JV LLC unconsolidated joint venture, which held nine stores, to its partner in such joint venture and recognized a gain of $ 3,406 on the transaction.

This gain and the gain from the ESS Bristol Investments LLC transaction referenced below are presented in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest on the Company's consolidated statements of operations for the year ended December 31, 2024.

(4) In August 2024, the ESS Bristol Investments LLC unconsolidated joint venture sold five of its eight stores to another of the Company's unconsolidated joint ventures, and the Company recognized a gain of $ 10,324 for its pro rata share of the transaction.

The Company then acquired its partner's membership interest in the remaining three stores held by ESS Bristol Investments LLC, which is now presented under real estate assets, net on the Company's consolidated balance sheets.

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

(5) In May 2023, the Company invested $ 150,000 in shares of convertible preferred stock of Strategic Storage with a dividend rate of 8.35 % per annum, subject to increase after five years .

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

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

(6) In October 2019, the Company invested $ 200,000 in shares of convertible preferred stock of SmartStop with a dividend rate of 6.25 % per annum.

On November 1, 2024, the dividend rate increased to 7.00 % per annum, and is now subject to increase each year.

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 consolidated statements of operations.

Subsequent to year end, on February 4, 2025, the Company invested $ 100,000 in shares of newly issued convertible preferred stock of Strategic Storage Growth Trust III, Inc., an affiliate of SmartStop Self Storage REIT, Inc.

(2) On October 31, 2025, the Company sold its membership interest in the Extra Space Northern Properties VI LLC joint venture, which held 10 properties.

The Company acquired one property from the joint venture, and the joint venture partner acquired the remaining nine properties.

The sale resulted in a net gain of $ 45,167 which has been included in the equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest line on the Company’s consolidated statements of operations.

(3) On July 8, 2025, the Company sold its membership interest in the Life Storage Spacemax LLC joint venture, which held six properties.

The sale resulted in a net gain of $ 9,354 , which has been included in the equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest line on the Company’s consolidated statements of operations.

(4) 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.

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

The Company exchanged its 25 % ownership interest in 17 properties for its partner’s 75 % ownership interest in six properties.

The portfolio consisted of 23 properties;

therefore, the Company now owns 100 % of the six properties, and its partner now owns 100 % of the 17 properties.

(6) On February 4, 2025, the Company invested $ 100,000 in shares of newly issued convertible preferred stock of Strategic Storage Growth Trust III, Inc., an affiliate of SmartStop.

The dividend rate for the preferred shares is 8.85 % 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, and are redeemable thereafter subject to a redemption premium.

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

(7) In May 2023, the Company invested $ 150,000 in shares of convertible preferred stock of Strategic Storage Trust VI, Inc.

with a dividend rate of 8.35 % per annum, subject to increase after five years .

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

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

(8) 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 November 2024.

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

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

In accordance with ASC 810, the Company reviews all of its joint venture relationships annually to ensure that there are no entities that require consolidation.

1 unchanged sentence

The Company accounts for its investments in unconsolidated joint ventures under the equity method of accounting.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Equity in earnings and dividend income from unconsolidated real estate entities consists of the following:

9 unchanged sentences

Equity in earnings of HF2 Sovran HHF Storage Holdings II LLC (1)(2)

6,758 2,466 691

Equity in earnings of HF5 Life Storage-HIERS Storage LLC (1)

10 unchanged sentences

(1) For the year ended December 31, 2023, the earnings of the 16 joint ventures from the Life Storage Merger are from the close of acquisition on July 20, 2023.

The transaction increased the Company’s equity ownership percentages from 20 % and 15 %, respectively, to 49 % in each unconsolidated joint venture.

Equity in earnings of certain of our joint ventures includes the amortization of the Company’s excess purchase price of $ 59,858 of these equity investments over its original basis.

2 unchanged sentences

Management fee revenues for affiliated real estate joint ventures for the years ended December 31, 2025, 2024 and 2023 were $ 33,964 , $ 38,940 and $ 31,755 , respectively.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

INVESTMENTS IN DEBT SECURITIES AND NOTES RECEIVABLE

10 unchanged sentences

This investment consisted of 200,000 Series A Preferred Shares valued at a total of $ 200,000 , and 100,000 Series B Preferred Shares valued at a total of $ 100,000 .

In December 2022, the Company completed a modification with Nexpoint Storage Partners (as successor in interest to JCAP) that exchanged the Series A and Series B Preferred Shares for 300,000 Series D Preferred Shares, valued at a total of $ 300,000 .

In December 2022, the Company completed a modification with NexPoint Storage Partners (as successor in interest to JCAP) that exchanged the Series A and Series B Preferred Shares for

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

300,000 Series D Preferred Shares, valued at a total of $ 300,000 .

The Series D Preferred Shares are mandatorily redeemable after six years from the modification in December 2022, with two one-year extension options.

3 unchanged sentences

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

In July 2020, the Company purchased a senior mezzanine note receivable with a principal amount of $ 103,000 .

The note receivable bore interest at 5.5 %, with a maturity in December 2023 and was collateralized through an equity interest in which it or its subsidiaries wholly own 62 storage facilities.

The Company paid cash of $ 101,142 for the note receivable and accounted for the discount at amortized cost.

The discount was being amortized over the term of the note receivable.

In February 2022, a junior mezzanine lender exercised its right to buy the Company’s position for the full principal balance plus interest due, as a result of which the Company sold this note for a total of $ 103,315 in cash.

The remaining unamortized discount was recognized in that quarter as interest income.

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

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.

2 unchanged sentences

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

During the year ended December 31, 2024, the Company sold a total principal amount of $ 183,632 of its mortgage bridge loans receivable to third parties for a total of $ 183,632 in cash, closed on $ 845,760 in initial loan draws, and recorded $ 54,545 of draws for interest payments.

During the year ended December 31, 2025, the Company sold a total principal amount of $ 112,564 of its mortgage bridge loans receivable to third parties for par, closed on $ 406,644 in initial loan draws, and recorded $ 42,275 of draws for interest payments.

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

During the year ended December 31, 2024, one of the notes receivable entered nonaccrual status.

Subsequent to year end, the Company purchased the property that collateralized the note, which was paid off at the time of close, with no gain or loss recognized.

No other notes receivable are in past-due or nonaccrual status.

As of December 31, 2025, none of the notes receivable are in nonaccrual status, and any notes receivable where the monthly payments are delinquent are immaterial and less than 90 days past due.

The allowance for potential credit losses is immaterial.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

The components of term debt are summarized as follows:

10 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.

(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 $ 15,018 .

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

4 unchanged sentences

2031 1,777,878

2030 1,342,929

2031 1,650,000

Thereafter 21,200

Total $ 12,257,899

On November 20, 2024, the Company established a commercial paper note program.

Under the terms of the program, the Company may issue up to $ 1 billion of unsecured commercial paper notes that bear interest at variable rates with a maturity of varying amounts (generally 30 days or less, with a maximum of 397 days).

In November 2024, the Company established a commercial paper note program.

Under the terms of the program, the Company may issue up to $ 1,000,000 of unsecured commercial paper notes that bear interest at variable rates and have varying maturities (generally 30 days or less, with a maximum of 397 days).

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 year ended December 31, 2024 had a weighted-average maturity term of 20 days.

At December 31, 2024, there were $ 500 million in issuances outstanding under the commercial paper program.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

At December 31, 2025, there were $ 680,000 in issuances outstanding under the commercial paper program with a weighted-average maturity of 21 days.

All of the Company’s lines of credit and commercial paper are guaranteed by the Company.

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

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

As of December 31, 2025

10 unchanged sentences

Therefore, interest rate shown in the table above is a weighted average interest rate.

On June 22, 2023, the Company entered into the Third Amended and Restated Credit Agreement (the “Credit Agreement”).

Pursuant to the terms of the Credit Agreement, the Company may request an extension of the term of the revolving credit facility for up to two additional periods of six months each, after satisfying certain conditions.

On August 11, 2023, the capacity was increased by $ 60 million.

On August 21, 2024, the Company entered into Amendment 1 to the Third Amended and Restated Credit Agreement, which increased the overall term debt borrowings by $ 275,000 and reduced the spread on a portion of term debt borrowings by 30 basis points.

As of December 31, 2024, amounts outstanding under the revolving credit facility bore interest at floating rates, at the Company’s option, equal to either (i) Adjusted Term or Daily Simple SOFR plus the applicable margin or (ii) the applicable base rate which is the applicable margin plus the highest of (a) 0.0 %, (b) the federal funds rate plus 0.50 %, (c) U.S.

Bank’s prime rate or (d) the SOFR rate plus 1.00 %.

Per the Credit Agreement, the applicable SOFR rate margin and applicable base rate margin are based on the Company’s achieved debt rating, with the SOFR rate margin ranging from 0.7 % to 2.2 % per annum and the applicable base rate margin ranging from 0.00 % to 1.20 % per annum.

On August 21, 2025, the Company entered into the Fourth Amended and Restated Credit Agreement (the “Credit Agreement”), which increased the commitment under the revolving credit facility to $ 3,000,000 , extended the maturity of the credit facility to August 2029, and reduced the interest rate by 10 basis points.

In connection with the amendment, the Company also paid off term loans within the credit facility in the amount of $ 655,000 and increased other term loans within the credit facility by $ 200,000 .

The Credit Agreement is guaranteed by the Company and is not secured by any assets of the Company.

1 unchanged sentence

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

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

As of December 31, 2025, the Company’s percentage of fixed-rate debt to total debt was 82.1 %.

6 unchanged sentences

The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to the Company’s borrowings.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Cash Flow Hedges of Interest Rate Risk

6 unchanged sentences

During 2026, the Company estimates that $ 749 will be reclassified as an increase to interest income.

The following table summarizes the terms of the Company’s 13 active derivative financial instruments, which had a total current notional amount of $ 1,381,834 as of December 31, 2024, and one forward-starting derivative financial instruments with an effective date of July 14, 2025.

The following table summarizes the terms of the Company’s eight active derivative financial instruments, which had a total current notional amount of $ 952,000 as of December 31, 2025.

Hedge Product Range of Notional Amounts Strike Effective Dates Maturity Dates

10 unchanged sentences

Effect of Derivative Instruments

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the periods presented.

The table below presents the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the years presented.

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

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Gain (loss) recognized in OCI for the Year Ended December 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI for the Year Ended December 31,

5 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.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

As of December 31, 2024, 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 December 31, 2025, the Company had not posted any collateral related to these agreements.

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

Refer to note 2 for further information regarding the Company’s derivative instruments and hedging activities.

STOCKHOLDERS’ EQUITY

4 unchanged sentences

During the year ended December 31, 2025, the Company sold no shares of common stock.

On April 15, 2024, the Company filed its $ 800,000 “at the market” equity program with the Securities and Exchange Commission using a shelf registration statement on Form S-3, and entered into an equity distribution agreement with nine sales agents.

On April 15, 2024, the Company filed its $ 800,000 “at the market” equity program with the Securities and Exchange Commission (the “SEC”) using a shelf registration statement on Form S-3, and entered into an equity distribution agreement with nine sales agents.

No shares have been sold under the current “at the market” equity program, and no shares were sold under the previous “at the market” equity program, which spanned from August 9, 2021 through April 14, 2024.

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, 2023 and the year ended December 31, 2024, no shares were repurchased.

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

During the year ended December 31, 2025, the Company repurchased 1,158,244 shares at an average price of $ 129.10 per share, paying a total of $ 149,525 .

As of December 31, 2025, the Company had remaining authorization to repurchase shares with an aggregate value up to $ 350,475 .

1 unchanged sentence

See Property Acquisitions and Dispositions note above.

On January 7, 2022, the Company issued 186,766 shares of its common stock to acquire two stores for $ 40,965 .

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

5 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 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.

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 December 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 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 Statement of Noncontrolling Interests and Equity as of the periods indicated are as follows:

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

December 31, 2025 December 31, 2024

20 unchanged sentences

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

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Series D Redeemable Preferred Units

9 unchanged sentences

In exchange, the former holders of the Series D Units were issued notes totaling $ 87,696 , which represented the total liquidation value of the Units, due on January 1, 2050.

Interest will be paid to the former Unit holders quarterly, commencing December 31, 2024, at the existing rate of 3.35 %.

Interest is paid to the former Unit holders quarterly, effective December 31, 2024, at the existing rate of 3.35 %.

The full liquidation value was reclassified from noncontrolling interest represented by preferred operating partnership units to other liabilities on the Company’s consolidated balance sheets.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

On December 27, 2024, 1,100,734 Series D Units were converted to 183,398 Common OP Units.

2 unchanged sentences

In November 2023, 15,093 Series D units were redeemed for cash of $ 377 .

The Series D Units have been issued at various times from 2014 to 2022.

On June 1, 2022, the Operating Partnership

issued a total of 240,000 Series D Units valued at $ 6,000 in connection with the acquisition of Bargold.

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP AND OTHER NONCONTROLLING INTERESTS

3 unchanged sentences

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 December 31, 2023, the noncontrolling interest in the Operating Partnership is shown on the balance sheet net of a note receivable of $ 1,900 because a borrower under the note receivable was also a holder of OP Units.

This note receivable originated in December 2014, bore interest at 5.0 % per annum and matured on December 15, 2024.

As of December 31, 2024, the noncontrolling interest in the Operating Partnership is shown on the balance sheet net of a new 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.

As of December 31, 2025, 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 June 30, 2026.

The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company.

2 unchanged sentences

Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on December 31, 2025 and the Company elected to pay the OP Unit holders cash, the Company would have paid $ 1,232,514 in cash consideration to redeem the units.

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

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

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

For the Year Ended December 31,

3 unchanged sentences

Cash paid for OP Units redeemed $ 1,453 $ 2,341 $ 108

OP Units issued in conjunction with business combination, acquisitions, and preferred unit conversion 807,019 1,674,748 711,037

Value of OP Units issued in conjunction with business combination, acquisitions, and preferred unit conversion $ 127,932 $ 249,470 $ 141,000

OP Units issued in conjunction with acquisitions 131,027 807,019 1,674,748

Value of OP Units issued in conjunction with acquisitions $ 19,736 $ 127,932 $ 249,470

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.

2 unchanged sentences

The Company has evaluated the terms of the OP Units and classifies the noncontrolling interest represented by the OP Units as stockholders’ equity in the accompanying consolidated balance sheets.

The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

consolidated balance sheets.

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

Other Noncontrolling Interests

Other noncontrolling interests represent the ownership interest of partners in ten consolidated joint ventures as of December 31, 2024.

There are a total of 14 stores in consolidated joint ventures, nine of which are operating and the other five of which are under development.

Other noncontrolling interests represent the ownership interest of partners in 12 consolidated joint ventures as of December 31, 2025.

There are a total of 16 stores in consolidated joint ventures, 11 of which are operating and five of which are under development.

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

4 unchanged sentences

Right-of-use assets associated with finance leases are included in real estate assets, net and finance lease liabilities are included in other liabilities on the Company’s consolidated balance sheets.

During the year ended December 31, 2024, the Company recorded no new finance lease right-of-use assets and finance lease liabilities.

During the year ended December 31, 2025, the Company recorded new finance lease right-of-use assets and finance lease liabilities totaling $ 934 associated with one store with a land lease.

The Company is lessee under several types of lease agreements.

4 unchanged sentences

• Leases of its corporate offices and call center.

These leases have original lease terms between five and 14 years, with no extension options.

In 2021 the Company modified and extended the lease of its corporate offices to add additional space and extend the lease until 2034.

These leases have original lease terms between five and 14 years, with the option to extend up to five years .

• Leases of 23 regional offices.

1 unchanged sentence

The Company has the option on certain of these leases to extend the lease term for up to three additional years.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

• Leases of small district offices.

10 unchanged sentences

The Company will recognize costs from these variable lease payments in the period in which the obligation for those payments is incurred.

As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

commencement date in determining the present value of lease payments.

These discount rates vary depending on the term of the specific leases.

18 unchanged sentences

Weighted average discount rate - operating leases 5.75 % 5.73 %

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

The following table presents information about the Company’s undiscounted cash flows on an annual basis for operating and finance leases, including a reconciliation of the undiscounted cash flows to the finance lease and operating lease liabilities recognized in the Company’s consolidated balance sheets:

10 unchanged sentences

Lease liabilities $ 761,106 $ 140,535 $ 901,641

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Lessor Accounting

6 unchanged sentences

STOCK-BASED COMPENSATION

As of December 31, 2024 , 156,341 shares were available for issuance under the Company’s 2015 Incentive Award Plan (the “Plan”).

As of December 31, 2025 , 6,472,477 shares were available for issu ance under the Company’s 2015 Incentive Award Plan (the “Plan”).

The Company added shares to the plan through an S-8 filed with the SEC on August 1, 2025.

Options are exercisable once vested.

7 unchanged sentences

Unless otherwise determined by the Compensation Committee at the time of grant, the forfeiture and transfer restrictions on the shares lapse over a one-year period or a four-year period beginning on the date of grant.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Option Grants

6 unchanged sentences

Outstanding at December 31, 2024 — $ —

Exercised ( 9,272 ) 82.47

Outstanding at December 31, 2025 — $ —

4 unchanged sentences

At December 31, 2025, there was no unrecognized compensation expense related to non-vested stock options under the Plan.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Common Stock Granted to Employees and Directors

20 unchanged sentences

Performance-based Stock Units

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

The performance-based stock units (the “ PSUs ” ) granted to executives represent the right to earn shares of the Company’s common stock.

2 unchanged sentences

Each of these performance components are weighted 50 % and are measured over the performance period, which is defined as the three-year period ending December 31 from the year of grant.

At the end of the performance period, the financial performance components are reviewed to determine the number of shares actually granted to executives, which can be as low as zero shares and up to a maximum of two shares issued for each PSU.

A summary of the PSU activity is as follows:

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

Performance-Based Stock Units Units Weighted-Average Grant-Date Fair Value

9 unchanged sentences

Unvested at December 31, 2025 314,906 $ 165.03

The Company recorded $ 12,183 , $ 12,433 and $ 9,299 of expense in general and administrative expense in its statement of operations related to PSUs granted to employees for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company recorded $ 14,418 , $ 12,183 and $ 12,433 of expense in general and administrative expense in its statement of operations related to PSUs granted to executives for the years ended December 31, 2025, 2024 and 2023, respectively.

The Company estimated the fair value of the PSUs as of the grant date, using the closing trading price of the Company’s common stock on the grant date to value the FFO Target portion.

15 unchanged sentences

For the years ended December 31, 2025, 2024 and 2023, the Company made matching contributions to the plan of $ 9,018 , $ 8,145 , and $ 6,576 respectively, based on 100 % of the first 3 % and up to 50 % of the next 2 % of an employee’s compensation.

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

As a REIT, the Company is generally not subject to U.S.

4 unchanged sentences

federal corporate income tax and may be subject to state and local income taxes.

The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes.” Deferred tax assets and liabilities are determined based on differences between

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

financial reporting and tax bases of assets and liabilities.

The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes.” Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

The Company has elected to use the Tax-Law-Ordering approach to determine when excess tax benefits will be realized.

On August 16, 2022, President Biden signed into law the Inflation Reduction Act (“IRA”).

The provisions include the new Corporate Alternative Minimum Tax (“CAMT”) and an excise tax on stock buybacks, each effective beginning in tax year 2023, as well as significant tax incentives for energy and climate initiatives.

The Company has evaluated the impact of these provisions and does not expect the enactment of these provisions to have a material impact on the Company's consolidated financial statements.

On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law, which included certain modifications to U.S.

tax law, including certain provisions that affect the taxation of REITs and their investors.

The OBBBA permanently extended certain provisions that were enacted in the Tax Cuts and Jobs Act of 2017.

Such extensions included the permanent extension of the 20% deduction for “qualified REIT dividends” for individuals and other non-corporate taxpayers.

The OBBBA also increased the percentage limit under the REIT asset test applicable to taxable REIT subsidiaries (the permissible maximum value of taxable REIT subsidiary securities that a REIT may hold, as a percentage of the value of the REIT’s total assets) from 20% to 25% for taxable years beginning after December 31, 2025.

The Company is still evaluating the provisions of the OBBBA and expects the OBBBA to have an impact on its financial position and results of operations by increasing its federal tax expense due to the expiration of solar tax credits in the coming years and changes to Section 162(m) of the Internal Revenue Code related to executive compensation.

The income tax provision for the years ended December 31, 2025, 2024 and 2023, is comprised of the following components:

3 unchanged sentences

Tax credits/true-up ( 9,326 ) — ( 9,326 )

Change in deferred expense/(benefit) ( 3,236 ) 1,856 ( 1,380 )

Change in deferred expense 3,532 119 3,651

Total tax expense $ 32,721 $ 8,838 $ 41,559

3 unchanged sentences

Tax credits/true-up ( 9,413 ) — ( 9,413 )

Change in deferred expense ( 4,151 ) 901 ( 3,250 )

Change in deferred expense/(benefit) ( 3,236 ) 1,856 ( 1,380 )

Total tax expense $ 24,671 $ 8,807 $ 33,478

3 unchanged sentences

Tax credits/true-up ( 7,742 ) — ( 7,742 )

Change in deferred benefit 1,909 ( 82 ) 1,827

Change in deferred expense/(benefit) ( 4,151 ) 901 ( 3,250 )

Total tax expense $ 14,623 $ 6,936 $ 21,559

A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows:

EXTRA SPACE STORAGE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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

A reconciliation of the statutory income tax provisions to the effective income tax provisions for the years indicated is as follows:

For the Year Ended December 31,

2025 2024 2023

Expected tax at statutory rate $ 196,102 21.0 % $ 183,111 21.0 % $ 197,887 21.0 %

federal statutory tax rate $ 224,010 21.0 % $ 196,102 21.0 % $ 183,111 21.0 %

State and local income taxes, net of federal income tax effect (1)

8,538 0.8 % 8,116 0.9 % 6,451 0.8 %

Solar tax credit ( 9,210 ) ( 0.9 ) % ( 9,285 ) ( 1.0 ) % ( 7,554 ) ( 0.9 ) %

Nontaxable or nondeductible items

Non-taxable REIT income ( 183,656 ) ( 17.2 ) % ( 161,989 ) ( 17.3 ) % ( 161,316 ) ( 18.5 ) %

State and local tax expense - net of federal benefit 8,851 0.9 % 8,779 1.0 % 4,160 0.4 %

Change in valuation allowance — — % ( 1,148 ) ( 0.1 ) % ( 1,093 ) ( 0.1 ) %

Tax credits/true-up ( 9,413 ) ( 1.0 ) % ( 7,742 ) ( 0.9 ) % ( 6,040 ) ( 0.6 ) %

Miscellaneous ( 73 ) — % ( 125 ) — % ( 1,023 ) ( 0.1 ) %

Total provision $ 33,478 3.6 % $ 21,559 2.5 % $ 20,925 2.2 %

Other 1,994 0.2 % 663 — % 1,055 0.1 %

Changes in unrecognized tax benefits ( 117 ) — % ( 129 ) — % ( 188 ) — %

Effective tax rate $ 41,559 3.9 % $ 33,478 3.6 % $ 21,559 2.5 %

(1) In 2025, state and local income taxes in Texas, New Hampshire, and Tennessee comprise the majority of this category.

In 2024, state and local income taxes in Texas, New Hampshire, Tennessee, and California comprise the majority of this category.

In 2023, state and local income taxes in Texas, California, Tennessee, Illinois, and Pennsylvania comprise the majority of this category.

A disaggregation of categories of income taxes paid by jurisdiction for the years indicated is as follows:

For the Year Ended December 31,

2025 2024 2023

Income taxes paid

federal $ 29,599 $ 26,595 $ 17,161

state and local

New Hampshire * 1,708 *

Texas 1,845 * 1,373

Other 3,843 5,469 4,219

Total state and local 5,688 7,177 5,592

Total income taxes paid (federal and state) $ 35,287 $ 33,772 $ 22,753

*The amount of income taxes paid during the year does not meet the 5% disaggregation threshold

EXTRA SPACE STORAGE INC.

19 unchanged sentences

The state income tax net operating losses expire between 2026 and 2045.

The valuation allowance associated with the state income tax net operating losses was released in 2023.

The tax years 2021 through 2024 remain open related to the state returns, and 2022 through 2024 for the federal returns.

SEGMENT INFORMATION

The Company’s segment disclosures present the measure used by the chief operating decision makers (“CODMs”) for purposes of assessing each segment’s performance.

The Company’s CODMs are comprised of several members of its executive management team who use net operating income (“NOI”) to assess the performance of the business for the Company’s reportable operating segments.

The Company’s segment disclosures present the measure used by the chief operating decision maker (“CODM”) for purposes of assessing each segment’s performance.

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 Operations 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 and self-storage units acquired in the Bargold transaction on June 1, 2022.

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.

Excluded from segment revenues and net operating income is management fees and other income.

The Chief Executive Officer (“CEO”) is the primary CODM for self-storage operations, and the Chief Financial Officer (“CFO”) is the primary CODM for tenant reinsurance.

The CODM for each reportable operating segment regularly reviews NOI to assess the performance of each segment and make decisions about resources to be allocated to each segment.

As part of this process, the CODM approves each operating segment’s budget, determines allocation of funds for capital expenditures, and reviews monthly discrete financial information.

Management fees and other income is excluded from segment revenues and net operating income.

The CODM regularly reviews NOI to assess the performance of each segment and makes decisions about resources to be allocated to each segment.

As part of this process, the CODM approves each operating segment’s budget, determines allocation of funds for capital expenditures, and reviews discrete financial information on a quarterly basis.

Based on each segment’s budgeted operating revenues and expenses, resources are allocated to each segment, and these budgeted amounts comprising NOI are compared against actual segment performance.

For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment.

For all years presented, substantially all of the Company’s real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment.

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

30 unchanged sentences

Management fees and other income 129,476 120,855 101,986

Transaction costs — — ( 1,548 )

Life Storage Merger transition costs — — ( 66,732 )

1 unchanged sentence

Depreciation and amortization expense ( 715,177 ) ( 783,023 ) ( 506,053 )

Gain (loss) on real estate assets held for sale and sold, net ( 25,906 ) — 14,249

Loss on real estate assets held for sale and sold, net ( 76,310 ) ( 25,906 ) —

Impairment of Life Storage trade name — ( 51,763 ) —

Interest expense ( 587,613 ) ( 551,354 ) ( 419,035 )

Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes ( 43,720 ) ( 18,786 ) —

Non-cash interest expense related to amortization of discount on unsecured senior notes, net ( 47,519 ) ( 43,720 ) ( 18,786 )

Interest income 163,202 124,422 84,857

Equity in earnings and dividend income from unconsolidated real estate entities 68,815 67,272 54,835

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets 13,730 — —

Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest 54,521 13,730 —

Income tax expense ( 41,559 ) ( 33,478 ) ( 21,559 )

Net income $ 1,022,538 $ 900,232 $ 850,453

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

Income tax expense ( 33,478 ) ( 21,559 ) ( 20,925 )

Net income $ 900,232 $ 850,453 $ 921,156

(1) Other segment items for the Self-Storage Operations segment include miscellaneous items such as legal and professional fees, capital expenditures, taxes, and casualty losses.

(2) Tenant reinsurance expense and other segment items for the Tenant Reinsurance segment includes claims expense, acquisition costs, claims service fees and miscellaneous administrative items.

(2) Tenant reinsurance expense and other segment items for the Tenant Reinsurance segment include claims expense, acquisition costs, claims service fees, and miscellaneous administrative items.

COMMITMENTS AND CONTINGENCIES

As of December 31, 2024, the Company was under agreement to acquire eight stores at a total purchase price of $ 81,533 .

Acquisitions of all eight stores are scheduled to close in 2025.

As of December 31, 2024, the Company was under contract to sell 13 stores at a total sales price of $ 144,550 .

The sales of all 13 stores are scheduled to close in 2025.

As of December 31, 2025, the Company was under agreement to acquire one store at a total purchase price of $ 12,500 , which is scheduled to close in 2026.

As of December 31, 2025, the Company was under agreement to originate $ 57,700 in bridge loans in 2026.

91 unchanged sentences

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-K

Item 8. Financial Statements and Supplementary Data