32 unchanged sentences
This program helps us increase our management business, create additional potential future acquisition opportunities, and strengthen our relationships with partners, all while generating interest and fee income.
−Removed: We generally originate mortgage loans and mezzanine loans, with the intent to sell a portion of the mortgage loans to third parties, while retaining our interests in the mezzanine loans.
−Removed: As of December 31, 2023, the total balance of bridge loans receivable was $594.7 million.
+Added: We generally originate mortgage loans and mezzanine loans with the option to sell a portion of the mortgage loans to third parties, while retaining our interests in the mezzanine loans.
+Added: As of December 31, 2024, the total balance of bridge loans receivable was $1.2 billion.
We have made investments in preferred stock of other self-storage companies.
−Removed: These investments benefit us by providing dividend income, increasing our management business, and creating additional potential future acquisition opportunities through relationships with the companies in which we invest.
+Added: These investments benefit us by providing dividend income, creating additional potential future acquisition opportunities through relationships with the companies in which we invest, or increasing our management business.
Operating Segments
12 unchanged sentences
We seek to maximize revenue by responding to changing market conditions through our advanced technology systems' ability to provide real-time, interactive rental rate and discount management.
−Removed: Our size allows us greater ability than the majority of our competitors to implement more dynamic online marketing programs, which we believe will attract more customers to our stores at a lower net cost.
+Added: We have implemented one of the most dynamic online marketing programs in the industry, which we believe will attract more customers to our stores at a lower net cost compared with our competitors.
We continually analyze our portfolio to look for long-term value-enhancing opportunities.
We proactively redevelop properties to add units or modify existing unit mix to better meet the demand in a given market and to maximize revenue.
−Removed: We also redevelop properties to extend their useful life, increase visual appeal, enhance security and to improve brand consistency across the portfolio.
+Added: We also redevelop properties to extend their useful life, increase visual appeal, enhance security and improve brand consistency across the portfolio.
Acquire self-storage stores
3 unchanged sentences
We remain a disciplined buyer and only execute acquisitions that we believe will strengthen our portfolio and increase stockholder value.
−Removed: In addition to the pursuit of operating stores, from time to time we develop stores from the ground up and provide the construction capital.
+Added: In addition to the pursuit of operating stores, from time to time we develop stores from the ground up, frequently in a joint venture with a developer, and provide the construction capital.
We also purchase stores at the completion of construction from third party developers, who build to our specifications.
These stores purchased at completion of construction (a “Certificate of Occupancy store”) create additional long-term value for our stockholders.
−Removed: We are typically able to acquire these assets at a lower price than a stabilized store, and expect greater long term returns on these stores on average.
+Added: We are typically able to acquire these assets at a lower price than a stabilized store, and we expect greater long term returns on these stores on average.
However, in the short term, these acquisitions cause dilution to our earnings during the two-to-four year period required to lease up the Certificate of Occupancy stores.
4 unchanged sentences
We expect to maintain a flexible approach to financing growth.
−Removed: We plan to finance future acquisitions, store development and our bridge loan program through a diverse capital optimization strategy which includes but is not limited to:
−Removed: cash generated from operations, borrowings under our revolving lines of credit (the "Credit Lines"), secured and unsecured financing, equity offerings, joint ventures and the sale of stores.
+Added: We plan to finance future acquisitions, store development and re-development, capital expenditures and our bridge loan program through a diverse capital optimization strategy which includes, but is not limited to, the following:
+Added: cash generated from operations, borrowings under our revolving lines of credit (the “Credit Lines”), commercial paper, secured and unsecured financing, equity offerings, joint ventures and the sale of stores.
Credit Lines - We have two credit lines which we primarily use as short-term bridge financing until we obtain longer-term financing through either debt or equity.
−Removed: As of December 31, 2023, our Credit Lines had available capacity of $2.1 billion, of which $1,458 million was undrawn.
+Added: As of December 31, 2024, our Credit Lines had available capacity of $2.1 billion, of which $1.3 billion was undrawn.
+Added: Commercial Paper - We have a commercial paper program which we use as short-term financing until we obtain longer-term financing through either debt or equity.
+Added: As of December 31, 2024, our commercial paper program had available capacity of $1.0 billion, of which $500 million was undrawn.
Secured and Unsecured Debt - We primarily use public bonds, unsecured private placement bonds and unsecured bank term loans to finance store acquisitions and development efforts.
3 unchanged sentences
We sell stock under the ATM program from time to time to raise capital when we believe conditions are advantageous.
−Removed: During the year ended December 31, 2023, we didn't issue or sell any shares of common stock.
+Added: During the year ended December 31, 2024, we did not issue or sell any shares of common stock.
We view equity interests in our Operating Partnership as another source of capital that can provide an attractive tax planning opportunity to sellers of real estate.
2 unchanged sentences
We may issue additional units in the future when circumstances are favorable.
+Added: During the year ended December 31, 2024, we issued 623,621 Operating Partnership units.
Joint Ventures - As of December 31, 2024, we owned 460 of our stores through unconsolidated joint ventures with third parties.
1 unchanged sentence
Most joint venture agreements include buy-sell rights, as well as rights of first offer in connection with the sale of stores by the joint venture.
−Removed: We manage the day-to-day operations of the stores owned in these joint ventures and have the right to participate in major decisions relating to sales of stores or financings by the applicable joint venture, but do not control the joint ventures.
+Added: We manage the day-to-day operations of the stores owned in these joint ventures and have the right to participate in major decisions relating to sales of stores or financings by the applicable joint venture, but we do not control the joint ventures.
Sale of Properties - We have not historically sold a high volume of stores, as we generally believe we are able to optimize the cash flow from stores through continued operations.
However, we may sell more stores or interests in stores in the future in response to changing economic, financial or investment conditions.
+Added: For the year ended December 31, 2024, we sold six stores for $102.5 million.
For the year ended December 31, 2023, we did not sell any stores.
−Removed: For the year ended December 31, 2022, we sold two stores for $38.7 million.
Industry & Competition
7 unchanged sentences
The mix of residential tenants using a store is determined by a store’s local demographics and often includes people who are experiencing life changes such as downsizing their living space or others who are not yet settled into a permanent residence.
−Removed: Items that tenants place in self-storage are typically furniture, household items and appliances.
+Added: Items that tenants place in self-storage may include furniture, household items and appliances.
Commercial tenants tend to include small business owners who require easy and frequent access to their goods, records, inventory or storage for seasonal goods.
6 unchanged sentences
The self-storage industry is a mature industry with average occupancies that are typically at or above 90%.
−Removed: According to the Self-Storage Almanac (the “Almanac”), the national average physical occupancy rate was 92.8% of net rentable square feet in 2017, compared to an average physical occupancy rate of 91.6% in 2023.
−Removed: Our average occupancy for wholly-owned stores for 2023 was 92.0%.
−Removed: The industry is also characterized by fragmented ownership.
−Removed: According to the Almanac, as of the end of 2023, the top ten self-storage companies in the United States operated approximately 26.1% of the total U.S.
−Removed: stores, and the top 50 self-storage
−Removed: companies operated approximately 32.9% of the total U.S.
−Removed: We believe this fragmentation will contribute to continued consolidation at some level in the future.
+Added: Our average occupancy for our same-store pool for 2024 was 93.9%.
+Added: The self-storage industry is characterized by fragmented ownership, where the largest companies in the industry own a fraction of the operating stores.
+Added: The remainder of the industry is characterized by numerous small, local operators.
+Added: The scarcity of capital available to small operators for acquisitions and expansions, internet marketing, call centers, and the potential for savings through economies of scale are factors that are leading to consolidation in the industry.
+Added: We believe that, as a result of this trend, significant growth opportunities exist for operators with proven management systems and sufficient capital resources to grow through acquisitions and/or third-party management platforms.
We believe that we are well positioned to compete for acquisitions.
2 unchanged sentences
Generally, stores are subject to various laws, ordinances and regulations, including regulations relating to lien sale rights and procedures and the Americans with Disabilities Act of 1990.
−Removed: Changes in any of these laws or regulations, as well as changes in laws, such as the Comprehensive Environmental Response and Compensation Liability Act, which increase the potential liability for environmental conditions or circumstances existing or created by tenants or others on stores, or laws affecting development, construction, operation, limitations on rent increases due to state of emergency or similar orders, upkeep, safety and taxation may result in significant unanticipated expenditures, loss of stores or other impairments to operations, which would adversely affect our financial position, results of operations or cash flows.
+Added: Changes in any of these laws or regulations, as well as changes in laws, such as the Comprehensive Environmental Response and Compensation Liability Act, which increases the potential liability for environmental conditions or circumstances existing or created by tenants or others on stores, or laws affecting development, construction, operation, limitations on rent increases due to state of emergency or similar orders, upkeep, safety and taxation may result in significant unanticipated expenditures, loss of stores or other impairments to operations, which would adversely affect our financial position, results of operations or cash flows.
In addition, noncompliance with any of these laws, ordinances or regulations could result in the imposition of fines or an award of damages to private litigants and also could require substantial capital expenditures to ensure compliance.
1 unchanged sentence
Store management activities may be subject to state real estate brokerage laws and regulations as determined by the particular real estate commission for each state.
−Removed: Our collection and processing of personal information may be subject to various data privacy and security laws, which govern the collection, use, disclosure of personal information and are constantly evolving, may conflict with each other to complicate compliance efforts and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties and restrictions on data processing.
+Added: Our collection and processing of personal information may be subject to various data privacy and security laws, which govern the collection, use, and disclosure of personal information and are constantly evolving, may conflict with each other to complicate compliance efforts and can result in investigations, proceedings, or actions that lead to significant civil and/or criminal penalties and restrictions on data processing.
Changes in any of the laws governing our conduct could have an adverse impact on our ability to conduct our business or could materially affect our financial position, results of operations or cash flows.
4 unchanged sentences
Our employees are not represented by a collective bargaining agreement.
−Removed: In 2023, we invited our employees to participate in an employee satisfaction survey and achieved an overall satisfaction score of 79% with over 95% of our employees participating in our survey.
+Added: In 2024, we invited our employees to participate in an employee satisfaction survey and achieved an overall satisfaction score of 75% with 94% of our employees participating in our survey.
Compensation, Health and Well Being
We offer competitive health benefits and encourage our employees to participate in employee health and wellness programs.
−Removed: Over 56% of our employees who are enrolled in our health plan participate in these programs, which are designed to improve employees' overall health.
−Removed: We offer individualized counseling to our employees to assist them with their journey towards better health and financial wellness.
−Removed: We also offer other health-oriented benefits such as smoking cessation programs and a fitness program that allows for reimbursements to employees for expenses incurred relating to fit-friendly activities, sports or exercise equipment.
+Added: We offer our employees a health concierge service that helps them navigate their healthcare, from finding providers, comparing costs and resolving complex claims issues.
+Added: We also offer other health-oriented benefits such as a fitness program that allows for reimbursements to employees for expenses incurred relating to fit-friendly activities, sports or exercise equipment.
We also provide employees access to a network of childcare and elder care providers.
4 unchanged sentences
Our field employees received an aver age of 17 ho urs of training and each new hire received an average of 82 hours of training in 2024.
−Removed: Diversity, Equity and Inclusion
−Removed: We value diversity, equity and inclusion and undertake a wide spectrum of initiatives to attract and retain a diverse workforce.
−Removed: During 2023, we expanded participation in our employee resource groups that provide our employees a space to build community by celebrating their culture, providing mentoring opportunities and developing educational content for Extra Space.
−Removed: We will continue to implement and pursue diversity, equity and inclusion initiatives and tracking that allow us to attract and retain diverse top talent, improve employee engagement, increase innovation and customer insight and enhance the quality of our decision making.
−Removed: Newsweek recently recognized us as one of America's Greatest Workplaces for Diversity 2024.
−Removed: Our employee population is approximately 49% female and approximately 44% have self-identified as people of color:
−Removed: Black or African American (18%), Hispanic or Latino (18%), Asian (2.4%), of two or more races (4.2%), Native American (0.7%), and Pacific Islander (0.5%).
−Removed: We believe that our emphasis on training and development, employee safety, employee health and well-being, and a commitment to diversity, equity and inclusion leads to an increase in employee productivity and positions us to attract and retain top diverse talent.
+Added: Inclusion and Values
+Added: • We are committed to fostering an inclusive culture and living our core values of integrity, teamwork, excellence, passion and innovation.
+Added: In 2024 , we continued to expand participation in our employee resource groups, which provide employees with opportunities to build connections, celebrate culture, access mentoring, and engage in educational initiatives that strengthen our workplace community.
+Added: • Inclusion is central to our values and culture at Extra Space.
+Added: We believe that excellence and innovation stem from diverse perspectives, integrity is upheld through equitable practices, and optimal teamwork thrives in an inclusive environment.
+Added: We strive to ensure every employee feels engaged and empowered to bring their whole selves to work, fueling their passion and commitment to our shared goals.
+Added: We believe that our emphasis on training and development, employee safety, employee health and well-being, and a commitment to our values leads to an increase in employee engagement and positions us to attract and retain top diverse talent.
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.