What changed in this filing

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Item 2. Management’s Discussion and Analysis

2026-07-31 compared with 2026-05-01 · 58 added, 57 removed, 246 unchanged (32% of the section changed)

20 unchanged sentences

Our operating results depend materially on our ability to lease available self-storage units, to actively manage unit rental rates, and on the ability of our tenants to make required rental payments.

Consequently, management spends a significant portion of their time maximizing cash flows from our diverse portfolio of stores.

Consequently, management spends a significant portion of its time maximizing cash flows from our diverse portfolio of stores.

Revenue from our tenant reinsurance segment consists of insurance revenues from the reinsurance of risks relating to the loss of goods stored by tenants in our stores.

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We believe that we are able to respond quickly and effectively to changes in local, regional and national economic conditions by adjusting rental rates through the combination of our revenue management team and our industry-leading technology systems.

As of March 31, 2026, we owned or had ownership interests in 2,428 operating stores.

As of June 30, 2026, we owned or had ownership interests in 2,446 operating stores.

Of these stores, 2,026 are wholly-owned, 11 are in consolidated joint ventures, and 409 are in unconsolidated joint ventures.

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Our acquisitions have given us an increased scale in many core markets as well as a foothold in many markets where we had no previous presence.

As of March 31, 2026, approximately 2,480,000 tenants were leasing storage units at the operating stores that we own and/or manage, primarily on a month-to-month basis, providing the flexibility to increase rental rates over time as market conditions permit.

As of June 30, 2026, approximately 2,580,000 tenants were leasing storage units at the operating stores that we own and/or manage, primarily on a month-to-month basis, providing the flexibility to increase rental rates over time as market conditions permit.

Existing tenants generally receive rate increases at least annually, for which no direct correlation has been drawn to our vacancy trends.

Although leases are short-term in duration, the typical tenant tends to remain at our stores for an extended period of time.

For same-store properties as of March 31, 2026, the average length of stay for tenants who had vacated was approximately 16.8 months.

For same-store properties as of June 30, 2026, the average length of stay for tenants who had vacated was approximately 16.8 months.

Our store portfolio is made up of different types of construction and building configurations.

1 unchanged sentence

The following table presents additional information regarding our net rentable square feet and the number of stores by state:

As of March 31, 2026

As of June 30, 2026

REIT Owned Joint Venture Owned Managed Total

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Amounts in thousands, except store and share data

Comparison of the three months ended March 31, 2026 and 2025

Results for the three months ended March 31, 2026 included the operations of 2,428 stores (2,008 wholly-owned, 12 in consolidated joint ventures, and 408 in joint ventures accounted for using the equity method) compared to the results for the three months ended March 31, 2025, which included the operations of 2,424 stores (1,975 wholly-owned, ten in consolidated joint ventures, and 439 in joint ventures accounted for using the equity method).

Comparison of the three and six months ended June 30, 2026 and 2025

Results for the three and six months ended June 30, 2026 included the operations of 2,446 stores (2,026 wholly-owned, 11 in consolidated joint ventures, and 409 in joint ventures accounted for using the equity method) compared to the results for the three and six months ended June 30, 2025, which included the operations of 2,430 stores (2,005 wholly-owned, 11 in consolidated joint ventures, and 414 in joint ventures accounted for using the equity method).

Material or unusual changes in the results of our operations are discussed below:

The following table presents information on revenues earned for the periods indicated:

For the Three Months Ended March 31,

2026 2025 $ Change % Change

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

2026 2025 $ Change % Change 2026 2025 $ Change % Change

Property rental $ 746,164 $ 721,004 $ 25,160 3.5 % $ 1,479,377 $ 1,425,384 $ 53,993 3.8 %

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Total revenues $ 874,152 $ 841,618 $ 32,534 3.9 % $ 1,730,179 $ 1,661,615 $ 68,564 4.1 %

Property rental— The increase in property rental revenues for the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase of $22,679 associated with acquisitions completed in 2025 and acquisitions completed in the first three months of 2026.

The increase in revenue resulting from these acquisitions was partially offset by a decrease in property rental revenue of $6,543 due to property dispositions over the same period.

We acquired one wholly-owned store and disposed of one wholly-owned store during the three months ended March 31, 2026.

We acquired 76 wholly-owned stores and disposed of 37 wholly-owned stores during the year ended December 31, 2025.

In addition, property rental revenue increased by $11,372 due to improved operating results at our same-store properties.

Tenant reinsurance— The increase in tenant reinsurance revenue for the three months ended March 31, 2026 compared to the same period in the prior year was due primarily to an increase in the number of stores operated.

We operated 4,344 stores at March 31, 2026 compared to 4,099 stores at March 31, 2025.

Property rental— The increase in property rental revenue for the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily the result of growth in our portfolio related to acquisitions completed in 2025 and acquisitions completed in the first six months of 2026.

We acquired 18 wholly-owned stores during the six months ended June 30, 2026 and acquired 76 wholly-owned stores during the year ended December 31, 2025.

These increases in revenue resulting from acquisitions were partially offset by property dispositions during the same periods.

Additionally, property rental revenue increased for the three and six months ended June 30, 2026 due to improved operating results from increases in average annual rent per occupied square foot over the comparative periods.

Tenant reinsurance— The increase in tenant reinsurance revenue for the three and six months ended June 30, 2026 compared to the same periods in the prior year was due primarily to an increase in the number of stores operated.

We operated 4,410 stores at June 30, 2026 compared to 4,179 stores at June 30, 2025.

Management fees and other income— Management fees and other income primarily represent the fees collected for our management of stores owned by third parties and unconsolidated joint ventures and other transaction fee income.

The increase for the three months ended March 31, 2026 compared to the same period in the prior year was primarily due to both an increase in the number of stores managed and an increase in the overall revenue of stores under management when compared to the same period last year.

As of March 31, 2026, we managed 1,916 stores for third party owners, compared to 1,675 stores as of March 31, 2025.

The increase for the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily due to both an increase in the number of stores managed and an increase in the overall revenue of stores under management when compared to the same periods last year.

As of June 30, 2026, we managed 1,964 stores for third party owners, compared to 1,749 stores as of June 30, 2025.

These increases are offset by a decrease in management fees attributable to stores in unconsolidated joint ventures, where the number of stores decreased from 414 to 409 over the same period.

The following table presents information on expenses for the periods indicated:

For the Three Months Ended March 31,

2026 2025 $ Change % Change

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

2026 2025 $ Change % Change 2026 2025 $ Change % Change

Property operations $ 231,718 $ 227,621 $ 4,097 1.8 % $ 470,021 $ 451,203 $ 18,818 4.2 %

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Total expenses $ 481,968 $ 466,784 $ 15,184 3.3 % $ 970,442 $ 933,812 $ 36,630 3.9 %

Property operations— The increase in property operations expense during the three months ended March 31, 2026 compared to the same period in the prior year consists primarily of an increase of $9,457 related to acquisitions completed in 2025 and in the first three months of 2026.

We acquired 76 wholly-owned stores in 2025 and one wholly-owned store during the three months ended March 31, 2026.

Additionally, for the three months ended March 31, 2026, there was an increase of $5,243 in property operations expense at our same-store properties primarily due to an increase in repairs and maintenance, insurance, and property operating expenses.

Property operations— The increase in property operations expense during the three and six months ended June 30, 2026 compared to the same periods in the prior year was due to growth in our portfolio related to acquisitions completed in 2025 and in the first six months of 2026.

The increase in expense resulting from acquisitions was partially offset by expense control across our portfolio in most expense categories over the same periods with the exception of property taxes and insurance.

Tenant reinsurance— Tenant reinsurance expense represents the costs that are incurred to provide tenant reinsurance and is subject to volatility due to increased claims arising when significant events occur at stores.

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Depreciation and amortization— We amortize to expense intangible assets-customer intangibles on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months).

Depreciation and amortization expense increased for the three months ended March 31, 2026 compared to the same period in the prior year primarily as a result of the acquisition of new stores.

We acquired 76 wholly-owned stores in 2025 and one wholly-owned store during the three months ended March 31, 2026.

Depreciation and amortization expense increased for the three and six months ended June 30, 2026 compared to the same periods in the prior year primarily as a result of the acquisition of new stores.

We acquired 18 wholly-owned stores and disposed of one wholly-owned store during the six months ended June 30, 2026.

We acquired 76 wholly-owned stores and disposed of 37 wholly-owned stores during the year ended December 31, 2025.

Other Revenues and Expenses

The following table presents information on other revenues and expenses for the periods indicated:

For the Three Months Ended March 31,

2026 2025 $ Change % Change

Gain on real estate assets held for sale and sold, net $ — $ 35,761 $ (35,761) (100.0) %

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

2026 2025 $ Change % Change 2026 2025 $ Change % Change

Gain (loss) on real estate assets held for sale and sold, net $ — $ (864) $ 864 (100.0) % $ — $ 34,897 $ (34,897) (100.0) %

Interest expense (146,720) (146,128) (592) 0.4 % (294,019) (288,527) (5,492) 1.9 %

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Total other revenues & expenses, net $ (116,305) $ (112,118) $ (4,187) 3.7 % $ (231,438) $ (180,162) $ (51,276) 28.5 %

Gain on real estate assets held for sale and sold, net— During the three months ended March 31, 2026, we disposed of one previously held for sale store, resulting in no gain or loss .

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

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

Interest expense— The increase in interest expense during the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of higher outstanding debt.

As of March 31, 2026, we had approximately $13,406,885 in total face value of debt, compared to approximately $12,809,851 as of March 31, 2025.

Gain (loss) on real estate assets held for sale and sold, net— During the six months ended June 30, 2026, we disposed of one previously held for sale store, resulting in no gain or loss .

We disposed of 12 previously held for sale stores during the six months ended June 30, 2025, resulting in a gain of $38,656.

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

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

Interest expense— Represents the cost of our financing activities and primarily consists of interest incurred on borrowings under our commercial paper program, revolving lines of credit, senior notes and secured and unsecured term loans.

Interest expense also includes commitment fees, letter of credit fees, and the amortization of financing costs associated with these arrangements.

Non-cash interest expense related to amortization of discount on unsecured senior notes, net— Represents the amortization of the discount assigned to the fair value of the Life Storage unsecured senior notes assumed as part of our merger with Life Storage and net premium from bond offerings, offset by the discount from assumed debt.

Interest income— Interest income represents interest earned on bridge loans, debt securities and on a note receivable from a common Operating Partnership unit holder.

The increase in interest income during the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase in the amount of bridge loans outstanding.

The balance of bridge loans outstanding was $1,452,159 as of March 31, 2026, compared to $1,369,089 as of March 31, 2025.

The increase is also attributable to interest received on a $50,000 note receivable from a Common Operating Partnership unit holder.

This note receivable originated in December 2024, bears interest at 10% per annum and matures on June 30, 2026.

The decrease in interest income during the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily the result of a decrease in the amount of bridge loans outstanding.

The balance of bridge loans outstanding was $1,445,278 as of June 30, 2026, compared to $1,542,693 as of June 30, 2025.

Equity in earnings and dividend income from unconsolidated real estate entities— Equity in earnings of unconsolidated real estate entities represents the income earned through our ownership interests in unconsolidated joint ventures.

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To the extent that cash or profits in excess of these preferred returns are generated, we receive a higher percentage of the excess cash or profits.

The decrease for the three months ended March 31, 2026 is primarily due to the transfer and distribution of membership interests in the PR II EXR JV LLC joint venture in March 2025 and the acquisition of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures in April 2025.

Also contributing to the decrease is the sale of our membership interests in both the Extra Space Northern Properties VI LLC and the Life Storage Spacemax LLC joint ventures, which occurred in October and July 2025, respectively.

The number of stores in unconsolidated joint ventures in which we have ownership interests was 408 as of March 31, 2026, compared to 439 as of March 31, 2025.

The decrease for the three and six months ended June 30, 2026 was primarily due to the transfer and distribution of membership interests in the PR II EXR JV LLC joint venture in March 2025 and the acquisition of our partners’ membership interests in the ESS-NYFL JV LP and ESS CA-TIVS JV LP joint ventures in April 2025.

Also contributing to the decrease is the sale of our membership interests in both the Life Storage Spacemax LLC and the Extra Space Northern Properties VI LLC joint ventures, which occurred in July and October 2025, respectively.

The number of stores in unconsolidated joint ventures in

which we have ownership interests was 409 as of June 30, 2026, compared to 414 as of June 30, 2025.

Dividend income represents dividends from our investments in preferred stock of Strategic Storage Trust VI, Inc.

and Strategic Storage Growth Trust III, Inc.

Income tax expense —The increase in income tax expense for the three months ended March 31, 2026 compared to the same period in the prior year was primarily the result of an increase in book income and a decrease in permanent tax deductions related to stock awards.

Income tax expense —The increase in income tax expense for the three and six months ended June 30, 2026 compared to the same periods in the prior year was primarily the result of an increase in book income and a decrease in permanent tax deductions related to stock awards.

FUNDS FROM OPERATIONS

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The following table presents the calculation of FFO for the periods indicated:

For the Three Months Ended March 31,

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

2026 2025 2026 2025

Net income attributable to common stockholders $ 263,471 $ 249,731 $ 504,448 $ 520,606

1 unchanged sentence

Amortization of intangibles 2,953 3,225 6,676 14,304

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

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

Unconsolidated joint venture real estate depreciation and amortization 7,864 7,741 15,471 16,430

8 unchanged sentences

The following table presents operating data for our same-store portfolio.

For the Three Months Ended March 31, Percent

2026 2025 Change

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

2026 2025 Change 2026 2025 Change

Same-store rental revenues

16 unchanged sentences

The following table presents additional information for our same-store portfolio:

For the Three Months Ended March 31,

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

Same-store portfolio 2026 2025 2026 2025

3 unchanged sentences

The following table presents a reconciliation of same-store net operating income to net income as presented on our condensed consolidated statements of operations for the periods indicated:

For the Three Months Ended March 31,

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

2026 2025 2026 2025

Net Income $ 275,879 $ 262,716 $ 528,299 $ 547,641

Adjusted to exclude:

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

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

Equity in earnings and dividend income from unconsolidated real estate entities (15,802) (16,284) (31,562) (36,215)

13 unchanged sentences

Same-store net operating income $ 496,078 $ 479,101 $ 972,818 $ 950,024

Cash flows from operating activities for the three months ended March 31, 2026 increased when compared to the same period in the prior year.

Cash flows from operating activities for the six months ended June 30, 2026 increased when compared to the same period in the prior year.

Cash flows used in investing activities relate primarily to our acquisition and development of new stores, sales of stores, investments in unconsolidated real estate entities, and notes receivable from bridge loans and fluctuate depending on our actions in those areas.

1 unchanged sentence

A summary of cash flows along with significant components are as follows:

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Net cash provided by operating activities $ 1,076,266 $ 1,025,265

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Acquisition and development of real estate assets (291,472) (544,077)

Issuance of notes receivable, net of sales and principal payments 55,702 (116,241)

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

Net proceeds (payments) from unsecured term loans, senior notes, revolving lines of credit and commercial paper 385,988 315,488

6 unchanged sentences

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2026, we had $138,986 available in cash and cash equivalents.

As of June 30, 2026, we had $695,171 available in cash and cash equivalents.

Our cash and cash equivalents are held in accounts managed by third party financial institutions and consist of invested cash and cash in our operating accounts.

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The following table presents information relating to our debt:

March 31, 2026

June 30, 2026

Total face value of debt $ 13,867,886

10 unchanged sentences

At any point in time, we expect to maintain available commitments under our credit facility in an amount at least equal to the amount of commercial paper notes outstanding.

At March 31, 2026, we had $850,000 in issuances outstanding under the commercial paper program.

At June 30, 2026, we had $850,000 in issuances outstanding under the commercial paper program.

We hold a BBB+/Stable rating from S&P and a Baa2/Stable rating from Moody’s Investors Service.

1 unchanged sentence

Certain of our real estate assets are pledged as collateral for our debt.

As of March 31, 2026, we had a total of 1,776 unencumbered stores as defined by our public bonds.

As of June 30, 2026, we had a total of 1,794 unencumbered stores as defined by our public bonds.

Our unencumbered asset value was calculated as $31,069,882 and our total asset value was calculated as $36,807,478 according to the calculations as defined by our public bonds.

We are subject to certain restrictive covenants relating to our outstanding debt.

We were in compliance with all financial covenants at March 31, 2026.

We were in compliance with all financial covenants at June 30, 2026.

Our liquidity needs consist primarily of operating expenses, monthly debt service payments, recurring capital expenditures, distributions to unit holders and dividends to stockholders necessary to maintain our REIT qualification.

7 unchanged sentences

333-278690) previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”) and a prospectus supplement and accompanying prospectus, filed with the SEC.

As of March 31, 2026, no shares have been sold under the Equity Distribution Agreement, which we refer to as our “at the market” equity program.

As of June 30, 2026, no shares have been sold under the Equity Distribution Agreement, which we refer to as our “at the market” equity program.

OFF-BALANCE SHEET ARRANGEMENTS

7 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-Q

Item 2. Management’s Discussion and Analysis