What changed in this filing

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Item 1. Financial Statements

2025-05-02 compared with 2024-11-04 · 251 added, 322 removed, 473 unchanged (55% of the section changed)

3 unchanged sentences

(amounts in thousands, except share data)

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Real estate assets, net $ 24,683,924 $ 24,587,627

9 unchanged sentences

Unsecured senior notes, net 8,616,517 7,756,968

Revolving lines of credit 884,000 682,000

Revolving lines of credit and commercial paper 978,000 1,362,000

Operating lease liabilities 704,730 705,845

8 unchanged sentences

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

Common stock, $ 0.01 par value, 500,000,000 shares authorized, 211,981,742 and 211,278,803 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively

Common stock, $ 0.01 par value, 500,000,000 shares authorized, 212,225,353 and 211,995,510 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital 14,851,126 14,831,946

3 unchanged sentences

stockholders' equity 13,886,787 13,947,535

Noncontrolling interest represented by Preferred Operating Partnership units, net 191,306 222,360

Noncontrolling interest represented by Preferred Operating Partnership units 53,827 76,092

Noncontrolling interests in Operating Partnership, net and other noncontrolling interests 837,889 835,735

1 unchanged sentence

Total liabilities, noncontrolling interests and equity $ 28,993,918 $ 28,847,926

See accompanying notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

Extra Space Storage Inc.

1 unchanged sentence

(amounts in thousands, except share data)

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

For the Three Months Ended March 31,

Property rental $ 704,380 $ 688,044

4 unchanged sentences

Tenant reinsurance 17,116 18,505

Life Storage Merger transition costs — 54,174 — 54,174

General and administrative 45,974 43,722

1 unchanged sentence

Total expenses 467,028 463,711

Loss on real estate assets held for sale ( 8,961 ) — ( 63,620 ) —

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

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

Income from operations 388,730 335,828

4 unchanged sentences

Equity in earnings and dividend income from unconsolidated real estate entities 19,931 15,007

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

Income tax expense ( 8,991 ) ( 6,742 )

10 unchanged sentences

Cash dividends paid per common share $ 1.62 $ 1.62

See accompanying notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

Extra Space Storage Inc.

1 unchanged sentence

(amounts in thousands)

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

For the Three Months Ended March 31,

Net income $ 284,925 $ 224,074

4 unchanged sentences

Comprehensive income attributable to common stockholders $ 264,273 $ 223,868

See accompanying notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

Extra Space Storage Inc.

Condensed Consolidated Statement of Noncontrolling Interests and Equity

For the three and nine months ended September 30, 2024

Condensed Consolidated Statements of Noncontrolling Interests and Equity

(unaudited, amounts in thousands, except share data)

2 unchanged sentences

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

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

Issuance of common stock for share based compensation, exercise of options and taxes paid upon net settlement — — — 10,515 — 8,224 — — 8,224

Offering costs associated with shelf registration — — — — — ( 28 ) — — ( 28 )

Redemption of Operating Partnership units for stock — ( 3,884 ) — 43,879 — 3,884 — — —

Noncontrolling interest in consolidated joint ventures — — 825 — — — — — 825

Net income 1,932 7,800 3 — — — — 193,210 202,945

Other comprehensive loss — ( 986 ) — — — — ( 23,901 ) — ( 24,887 )

Distributions to Operating Partnership units held by noncontrolling interests ( 1,932 ) ( 13,896 ) — — — — — — ( 15,828 )

Dividends paid on common stock at $ 1.62 per share

— — — — — — — ( 343,408 ) ( 343,408 )

Balances at September 30, 2024 $ 191,306 $ 746,136 $ 10,628 211,981,742 $ 2,120 $ 14,823,018 $ 3,340 $ ( 817,865 ) $ 14,958,683

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

1 unchanged sentence

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

Offering costs associated with shelf registration — — — — — ( 522 ) — — ( 522 )

Redemption of Operating Partnership units for stock ( 3,536 ) ( 22,991 ) — 280,772 3 26,527 — — 3

2 unchanged sentences

Other comprehensive loss — 446 — — — — 10,756 — 11,202

Distributions to Operating Partnership units held by noncontrolling interests ( 6,073 ) ( 41,838 ) — — — — — — ( 47,911 )

Dividends paid on common stock at $ 4.86 per share

— — — — — — — ( 1,031,044 ) ( 1,031,044 )

Balances at September 30, 2024 $ 191,306 $ 746,136 $ 10,628 211,981,742 $ 2,120 $ 14,823,018 $ 3,340 $ ( 817,865 ) $ 14,958,683

Extra Space Storage Inc.

Condensed Consolidated Statement of Noncontrolling Interests and Equity

For the three and nine months ended September 30, 2023

(unaudited, amounts in thousands, except share data)

Noncontrolling Interest Extra Space Storage Inc.

Stockholders' Equity

Balances at June 30, 2023 $ 222,940 $ 553,610 $ 3,079 135,058,897 $ 1,351 $ 3,383,303 $ 47,065 $ ( 175,941 ) $ 4,035,407

Issuance of common stock in connection with share based compensation — — — 1,253 — 6,994 — — 6,994

Taxes paid upon net settlement of share based compensation — — — ( 414 ) — ( 63 ) — — ( 63 )

Restricted stock grants cancelled — — — ( 3,128 ) — — — — —

Redemption of Operating Partnership units for stock — ( 163 ) — 2,119 — 163 — — —

Life Storage Merger issuance of common stock and Operating Partnership units — 249,470 — 76,217,359 762 11,352,576 — — 11,602,808

Noncontrolling interest in consolidated joint ventures — — 5,209 — — — — — 5,209

Net income (loss) 2,253 8,284 ( 31 ) — — — — 188,350 198,856

Other comprehensive loss — ( 111 ) — — — — ( 2,153 ) — ( 2,264 )

Distributions to Operating Partnership units held by noncontrolling interests ( 2,254 ) ( 12,706 ) — — — — — — ( 14,960 )

Distributions to Operating Partnership units and other noncontrolling interests ( 2,208 ) ( 13,975 ) — — — — — — ( 16,183 )

Dividends paid on common stock at $ 1.62 per share

— — — — — — — ( 344,247 ) ( 344,247 )

Balances at September 30, 2023 $ 222,939 $ 798,384 $ 8,257 211,276,086 $ 2,113 $ 14,742,973 $ 44,912 $ ( 252,877 ) $ 15,566,701

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

Balances at 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 in connection with share based compensation — — — 144,640 2 19,431 — — 19,433

Taxes paid upon net settlement of share based compensation — — — ( 8,074 ) — ( 7,606 ) — — ( 7,606 )

Restricted stock grants cancelled — — — ( 6,983 ) — — — — —

Issuance of common stock for share based compensation and taxes paid upon net settlement — — — 74,513 — 400 — — 400

Redemption of Operating Partnership units for stock ( 22,265 ) ( 1,085 ) — 155,330 2 23,348 — — —

Redemption of Preferred A Units in the Operating Partnership for stock ( 16,339 ) — — 851,698 8 11,015 — — ( 5,316 )

Redemption of Preferred D Units in the Operating Partnership for stock ( 22,064 ) — — 154,307 2 22,062 — — —

Life Storage Merger issuance of common stock and Operating Partnership units — 249,470 — 76,217,359 762 11,352,576 — — 11,602,808

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

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

Noncontrolling interest in consolidated joint ventures — — ( 275 ) — — — — — ( 275 )

1 unchanged sentence

Other comprehensive loss — ( 335 ) — — — — ( 6,602 ) — ( 6,937 )

Distributions to Operating Partnership units held by noncontrolling interests ( 6,921 ) ( 36,082 ) — — — — — — ( 43,003 )

Distributions to Operating Partnership units and other noncontrolling interests ( 723 ) ( 15,339 ) ( 17 ) — — — — — ( 16,079 )

Dividends paid on common stock at $ 1.62 per share

— — — — — — — ( 344,203 ) ( 344,203 )

Balances at September 30, 2023 $ 222,939 $ 798,384 $ 8,257 211,276,086 $ 2,113 $ 14,742,973 $ 44,912 $ ( 252,877 ) $ 15,566,701

Extra Space Storage Inc.

Condensed Consolidated Statement of Noncontrolling Interests and Equity

For the three and nine months ended September 30, 2023

(unaudited, amounts in thousands, except share data)

See accompanying notes to unaudited condensed consolidated financial statements.

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

See notes to unaudited condensed consolidated financial statements.

Extra Space Storage Inc.

1 unchanged sentence

(amounts in thousands)

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Cash flows from operating activities:

6 unchanged sentences

Accrual of interest income added to principal of debt securities and notes receivable ( 8,273 ) ( 7,555 )

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

Impairment of Life Storage trade name 51,763 —

Loss on real estate assets held for sale 63,620 —

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

Distributions from unconsolidated real estate ventures 9,192 8,300

6 unchanged sentences

Acquisition of real estate assets and improvements ( 208,624 ) ( 91,050 )

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

Development and redevelopment of real estate assets ( 35,237 ) ( 35,825 )

Proceeds from sale of real estate assets and investments in real estate ventures 4,415 2,132

Proceeds from sale of real estate assets 124,730 —

Investment in unconsolidated real estate entities ( 102,397 ) ( 2,412 )

Return of investment in unconsolidated real estate ventures 12,999 —

Issuance and purchase of notes receivable ( 739,702 ) ( 210,712 )

Principal payments received from notes receivable 153,971 73,514

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

Payments received on notes receivable 39,963 11,823

Proceeds from sale of notes receivable 25,875 —

2 unchanged sentences

Cash flows from financing activities:

Proceeds from unsecured term loans and senior notes and revolving lines of credit 5,542,362 5,194,665

Principal payments on unsecured term loans and senior notes and revolving lines of credit ( 6,062,896 ) ( 4,617,755 )

Proceeds from unsecured term loans, senior notes, revolving lines of credit and commercial paper 3,979,431 1,679,470

Principal payments on unsecured term loans, senior notes, revolving lines of credit and commercial paper ( 4,615,810 ) ( 2,147,191 )

Proceeds from issuance of public bonds, net 850,000 600,000

1 unchanged sentence

Proceeds from share issuances — 592

Offering costs associated with shelf registration ( 522 ) —

Redemption of Preferred A Units for cash — ( 5,000 )

Contributions from noncontrolling interests 15 —

Dividends paid on common stock ( 344,203 ) ( 344,208 )

Distributions to noncontrolling interests ( 48,053 ) ( 43,003 )

Net cash (used in) provided by financing activities ( 612,406 ) 723,479

Net (decrease) increase in cash, cash equivalents, and restricted cash ( 10,758 ) 125,386

Distributions to noncontrolling interests, net of contributions ( 15,511 ) ( 16,231 )

Net cash used in financing activities $ ( 159,621 ) ( 233,182 )

Net decrease in cash, cash equivalents, and restricted cash ( 20,255 ) ( 49,697 )

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

Extra Space Storage Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

For the Nine Months Ended September 30,

Cash, cash equivalents, and restricted cash, end of the period $ 123,048 $ 55,386

4 unchanged sentences

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

Extra Space Storage Inc.

Condensed Consolidated Statements of Cash Flows

(amounts in thousands)

For the Three Months Ended March 31,

Cash and equivalents $ 119,559 $ 50,816

8 unchanged sentences

Common stock and paid-in capital $ 22,265 $ 30,063

Noncontrolling interests in Operating Partnership Note Receivable Payoff — ( 100,000 )

OP Unit Redemption - Cash Proceeds — ( 5,000 )

Acquisitions of real estate assets

Real estate assets, net $ 111,984 $ —

Value of OP units issued ( 5,878 ) —

Value of investment in consolidated real estate ventures ( 105,471 ) —

Net liabilities assumed ( 635 ) —

Accrued construction costs and capital expenditures

1 unchanged sentence

Accounts payable and accrued expenses ( 7,978 ) ( 2,397 )

See accompanying notes to unaudited condensed consolidated financial statements.

See notes to unaudited condensed consolidated financial statements.

EXTRA SPACE STORAGE INC.

2 unchanged sentences

Extra Space Storage Inc.

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

(the “Company”) is a fully integrated, self-administered and self-managed REIT, formed as a Maryland corporation on April 30, 2004, to own, operate, manage, acquire, develop and redevelop self-storage properties (“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 September 30, 2024, the Company had direct and indirect equity interests in 2,401 stores.

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

In addition, the Company managed 1,675 stores for third parties, bringing the total number of stores which it owns and/or manages to 4,099 .

6 unchanged sentences

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

Operating results for the three and nine months ended September 30, 2024 are not necessarily indicative of results that may be expected for the year ending December 31, 2024.

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

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

6 unchanged sentences

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

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

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

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

The compliance with this ASU will be required beginning with the Company's annual report on Form 10-K for the year ending December 31, 2024, followed by interim disclosures in quarterly reports on Form 10-Q thereafter, 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, 2024.

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

Refer to note 15 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, is continuing to research the impact of this amended guidance, and does not expect this standard to have a material impact on its consolidated financial statements.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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.

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 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.

FAIR VALUE DISCLOSURES

3 unchanged sentences

This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.

The fair values of interest rate swaps are determined using the

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts.

The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts.

The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves.

3 unchanged sentences

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

However, as of September 30, 2024, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives.

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

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

The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of September 30, 2024, aggregated by the level in the fair value hierarchy within which those measurements fall.

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

Fair Value Measurements at Reporting Date Using

2 unchanged sentences

Other liabilities - Cash flow hedge swap agreements $ — $ 2,261 $ —

The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of September 30, 2024 or December 31, 2023.

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

9 unchanged sentences

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.

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.

As of September 30, 2024, the Company had 17 stores classified as held for sale which are included in real estate assets, net.

Of the 17 stores, nine had an

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

estimated fair value, net of selling costs, of $ 70,952 .

During the nine months ended September 30, 2024, the Company recorded a loss of $ 63,620 as the fair value of these nine stores was less than the net carrying value.

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

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

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

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.

3 unchanged sentences

If the fair value of the reporting unit is determined to exceed the aggregate carrying amount, no impairment charge is recorded.

Otherwise, an impairment charge is recorded for the amount in which the fair value of the reporting unit exceeds the carrying value.

Otherwise, an impairment charge is recorded for the amount in which the carrying value of the reporting unit exceeds the fair value.

No impairments of goodwill were recorded for any period presented herein.

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

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 values of the Company’s fixed-rate notes payable were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy).

The discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality.

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

September 30, 2024 December 31, 2023

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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:

March 31, 2025 December 31, 2024

Value Carrying

Note receivable from Common Operating Partnership unit holder $ 51,610 $ 50,000 $ 52,112 $ 50,000

Fixed rate notes receivable 41,309 42,000 40,818 42,000

Fixed rate debt 9,607,398 9,976,730 8,949,297 9,420,848

ACQUISITIONS AND DISPOSITIONS

The Life Storage Merger

On July 20, 2023, the Company closed its merger with Life Storage (the “Life Storage Merger”), which included 757 wholly-owned stores and one consolidated joint venture store.

Under the terms of the Life Storage Merger, Life Storage stockholders and holders of units of the Life Storage operating partnership received 0.895 of a share of common stock (or OP Unit, as applicable) of the Company for each issued and outstanding share (or operating partnership unit) of Life Storage they owned for total equity consideration of $ 11,602,808 , based on the Company's closing share price on July 19, 2023.

At closing, the Company retired $ 1,160,000 in balances on Life Storage's line of credit which included $ 375,000 that Life Storage used to pay off its private placement notes in connection with the closing of the Life Storage Merger.

The Company also paid off $ 32,000 in secured loans.

On July 25, 2023, the Company completed obligor exchange offers and consent solicitations (together the “Exchange Offers”) related to Life Storage's various senior notes.

Upon the closing of the Exchange Offers, a total of $ 2,351,100 of Life Storage's senior notes were exchanged for senior notes of the same tenor of Extra Space Storage L.P.

The remaining Life Storage senior note balances which were not exchanged total $ 48,900 and no longer have any financial reporting requirements or covenants.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

Consideration and Purchase Price Allocation

The Life Storage Merger was accounted for as an asset acquisition in accordance with ASC Topic 805 which requires that the cost of an acquisition be allocated on a relative fair value basis to the assets acquired and the liabilities assumed.

The following table summarizes the fair value of total consideration transferred in the Life Storage Merger:

Consideration Type July 20, 2023

Common stock $ 11,353,338

OP units 249,470

Cash for payoff of Life Storage credit facility and debt 1,192,000

Transaction Costs 55,318

Total consideration $ 12,850,127

The following table summarizes the estimated fair values assigned to the assets acquired and liabilities assumed:

July 20, 2023

Real estate assets $ 14,587,735

Equity investment in joint venture partnerships 325,250

Cash and other assets 107,423

Intangible assets - other 82,000

Trade name 50,000

Unsecured senior notes ( 2,106,866 )

Accounts payable, accrued expenses and other liabilities ( 191,077 )

Noncontrolling interests ( 4,338 )

Fair value of net assets acquired $ 12,850,127

Fair Value Measurement

The estimated fair values of assets acquired and liabilities assumed were primarily based on information that was available as of the closing date of the Life Storage Merger.

The methodology used to estimate the fair values to apply purchase accounting and the ongoing financial statement impact, if any, are summarized below.

• Real estate assets – Real estate assets acquired were recorded at fair value using standard valuation methodologies, including the cost and market approaches.

The remaining useful lives for real estate assets, excluding land, were reset to 39 years.

Tenant relationships for storage leases were recorded at fair value based on estimated costs the Company avoided to replace them.

Tenant relationships are amortized to expense over 18 months, which is based on the Company’s historical experience with turnover in its stores.

• Equity investment in joint venture partnerships – Equity investment in joint venture partnerships were recorded at fair value based on a direct capitalization of net operating income.

• Intangible assets - other – Customer relationships relating to tenant reinsurance contracts were recorded at fair value based on the income approach which estimates the potential revenue loss the Company avoided to replace them.

These assets are amortized to expense over 36 months, which is based on the Company’s historical experience with average length of stay for tenants.

• Trade name – Trade names were recorded at fair value based on royalty payments avoided had the trade name been owned by a third party.

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

This method incorporates various assumptions, including projected revenue growth rates, the terminal growth rate, the royalty rate to be applied, and the discount rate utilized.

The trade name is an indefinite lived asset and as such is not amortized.

During the three months ended September 30, 2024, the Company decided to operate

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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.

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

The below-market value of debt is recorded as a debt discount and reported as a reduction of the unsecured senior notes, net balance on the condensed consolidated balance sheets.

The discount is amortized using the effective interest method as an increase to interest expense over the remaining terms of the unsecured senior notes.

• Other assets and liabilities – The carrying values of cash, accounts receivable, prepaids and other assets, accounts payable, accrued expenses and other liabilities represented the fair values.

Store Acquisitions

The following table shows the Company’s acquisitions of stores for the three and nine months ended September 30, 2024 and 2023.

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

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

4 unchanged sentences

Q1 2024 6 35,084 — — — 171 $ — 35,255

Total 2024 20 $ 221,924 $ — $ — $ — $ 1,699 $ — $ 223,623

Q3 2023 3 $ 18,578 $ — $ — $ — $ 86 $ — $ 18,664

Q2 2023 3 32,888 — — — 26 — 32,914

Q1 2023 1 13,111 — — — 6 — 13,117

Total 2023 7 $ 64,577 $ — $ — $ — $ 118 $ — $ 64,695

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.

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

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

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

EXTRA SPACE STORAGE INC.

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The components of real estate assets are summarized as follows:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Land $ 5,015,490 $ 4,994,642

Buildings, improvements and other intangibles 22,554,373 22,336,386

Right of use asset - finance lease 143,286 143,842

Right of use assets - finance lease 140,259 140,259

Intangible assets - tenant relationships 328,413 326,440

6 unchanged sentences

Real estate assets held for sale included in real estate assets, net $ 28,238 $ 103,756

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.

The Company also entered into new triple-net lease agreements for land and buildings related to 12 additional stores.

Both the initial 27 stores and the additional 12 stores added to the triple net lease structure are categorized as operating leases and have been presented in real estate assets - operating lease right-of-use assets and operating lease liabilities on the Company's condensed consolidated balance sheets.

As of September 30, 2024, the Company had 17 stores classified as held for sale which are included in real estate assets, net.

Of the 17 stores, nine had an estimated fair value, net of selling costs, less than the carrying value of the assets.

During the three and nine months ended September 30, 2024, the Company recorded estimated losses of $ 8,961 and $ 63,620 , respectively, in loss on real estate assets held for sale on the Company's condensed consolidated statements of operations.

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

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

The components of other assets are summarized as follows:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Goodwill $ 170,811 $ 170,811

2 unchanged sentences

Other intangible assets, net 26,469 32,206

Trade name — 50,000

Fair value of interest rate swaps 10,137 15,733

3 unchanged sentences

$ 508,729 $ 548,986

During the three months ended September 30, 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

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

of Life Storage trade name on the Company's condensed consolidated statements of operations for the three months ended September 30, 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.

EARNINGS PER COMMON SHARE

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

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

2 unchanged sentences

those that reduce earnings per common share) are included.

For the purposes of computing the diluted impact of the potential exchange of the Preferred Operating Partnership 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 value of the Preferred Operating Partnership units by the average share price for the period presented.

The average share price for the three months ended September 30, 2024 and 2023 was $ 168.78 and $ 134.24 , respectively.

The following table presents the number of Common and Preferred Operating Partnership units as if converted into potential common shares that were excluded from the computation of earnings per share as their effect would have been anti-dilutive.

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

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

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

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

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

For the Three Months Ended March 31,

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

Common OP Units 9,369,704 —

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

For the Three Months Ended March 31,

Net income attributable to common stockholders $ 270,875 $ 213,112

1 unchanged sentence

Earnings for basic computations 270,459 212,758

Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units 7,800 — 24,136 —

Income allocated to noncontrolling interest - Preferred OP Units and OP Units 220 8,764

Net income for diluted computations $ 270,679 $ 221,522

1 unchanged sentence

Average number of common shares outstanding - basic 211,850,618 211,283,335

OP Units 8,597,656 — 8,651,915 —

Common OP Units — 8,731,738

Series D Units 202,124 —

Shares related to dilutive stock options — 3,704

5 unchanged sentences

Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent 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, and the Company's noncontrolling interest in real estate joint ventures.

(“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 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.

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

September 30, December 31,

March 31, December 31,

PRISA Self Storage LLC 85 4 % 4 % $ 8,640 $ 8,967

HF1 Sovran HHF Storage Holdings LLC 37 49 % 49 %- 59 %

302,982 304,526

Storage Portfolio II JV LLC 36 10 % 30 % ( 9,777 ) ( 9,584 )

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PR II EXR JV LLC (2)

— 25 % 25 % — 105,909

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

113,180 114,034

HF5 Life Storage-HIERS Storage LLC 17 20 % 20 % 25,047 25,192

6 unchanged sentences

313,132 314,852

314,864 317,104

SmartStop Self Storage REIT, Inc.

4 unchanged sentences

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

Strategic Storage Growth Trust III, Inc.

Preferred Stock (3)

n/a n/a n/a 100,000 —

Net Investments in and Cash distributions in unconsolidated real estate entities 439 $ 1,244,752 $ 1,257,019

Investments in unconsolidated real estate entities $ 1,320,849 $ 1,332,338

Cash distributions in unconsolidated real estate ventures ( 76,097 ) ( 75,319 )

Net Investments in and Cash distributions in unconsolidated real estate entities $ 1,244,752 $ 1,257,019

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

(2) 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 condensed consolidated balance sheets.

(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 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 condensed consolidated statements of operations for the three months ended September 30, 2024.

(4) 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, subject to increase after five years .

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

(2) 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.

(3) 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 on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company’s condensed consolidated statements of operations.

(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 .

(4) 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 on the equity in earnings and dividend income from unconsolidated real estate entities on the Company’s condensed consolidated statements of operations.

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

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

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

condensed consolidated statements of operations.

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

INVESTMENTS IN DEBT SECURITIES AND NOTES RECEIVABLE

2 unchanged sentences

(“NexPoint”) and receivables due to the Company under its bridge loan program.

Information about these balances is as

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

September 30, 2024 December 31, 2023

Information about these balances is as follows:

March 31, 2025 December 31, 2024

Debt securities - Preferred Stock $ 300,000 $ 300,000

7 unchanged sentences

NexPoint may redeem the Series D Preferred Shares at any time, subject to certain prepayment penalties.

The Company accounts for the Series D Preferred Shares as a held to maturity debt security at amortized cost.

The Company accounts for the Series D Preferred Shares as a held to maturity debt security at amortized cost and evaluates whether the fair value is below the amortized cost basis at each reporting period.

The Series D Preferred Shares have an initial dividend rate of 8.5 %.

2 unchanged sentences

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

As of September 30, 2024, 71 % of the notes held are mortgage receivables.

The Company intends to sell a portion of the mortgage receivables.

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

The Company may sell a portion of the mortgage receivables.

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

During the nine months ended September 30, 2024, the Company sold a total principal amount of $ 175,335 of its mortgage bridge loans receivable to third parties for a total of $ 175,335 in cash, closed on $ 636,215 in initial loan draws and recorded $ 39,709 of draws for interest payments.

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

During the three months ended September 30, 2024, one of the notes receivable entered nonaccrual status.

None of the other notes receivable are in past-due or nonaccrual status.

The allowance for potential credit losses is immaterial.

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

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

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

The components of term debt are summarized as follows:

Term Debt September 30, 2024 December 31, 2023

Term Debt March 31, 2025 December 31, 2024

Secured notes payable (1)

3 unchanged sentences

Total 11,831,851 11,238,661

Discount on unsecured senior notes (2)

Discount on unsecured senior notes, net (2)

( 206,461 ) ( 222,254 )

3 unchanged sentences

(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.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (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 September 30, 2024:

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

2025 $ 534,123

4 unchanged sentences

2030 1,692,473

2031 1,650,000

Thereafter 900,000

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

The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated:

As of September 30, 2024

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

Credit Line 1 (2)

$ 55,000 $ 140,000 6.31 % 7/1/2026 SOFR plus 1.35 %

Credit Line 2 (3)(4)

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

Under the terms of the program, the Company may issue up to $ 1,000,000 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.

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

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

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

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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:

As of March 31, 2025

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

Secured credit line $ 8,000 $ 140,000 5.76 % 7/1/2026 SOFR plus 1.35 %

Unsecured credit line (2)

390,000 2,000,000 5.29 % 6/22/2027 SOFR plus 0.875 %

Commercial paper 580,000 1,000,000 4.66 % (3)

$ 978,000 $ 3,140,000

(1) Daily Simple Secured Overnight Financing Rate (“SOFR”)

(2) Secured by mortgages on certain real estate assets.

On January 13, 2023, the maturity date was extended to July 1, 2026 with one extension of one year available.

(3) Unsecured.

On June 22, 2023, the maturity date was extended to June 22, 2027 with two six -month extensions available.

On August 11, 2023, the capacity was increased by $ 60.0 million.

(4) Basis Rate as of September 30, 2024.

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

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

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

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.

As of September 30, 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.

(3) Commercial paper interest rate is variable based on market rates at the time of each issuance.

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

On August 21, 2024, the Company entered into Amendment 1 to the Third Amended and Restated Credit Agreement (the “Credit Agreement”).

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

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

As of September 30, 2024, the Company was in compliance with all of its financial covenants.

As of September 30, 2024, the Company’s percentage of fixed-rate debt to total debt was 78.3 %.

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

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

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

The combined weighted average interest rate was 4.4 %.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

The Company is exposed to certain risk arising from both its business operations and economic conditions.

9 unchanged sentences

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

During the three and nine months ended September 30, 2024 and 2023, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt.

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

In the coming 12 months, the Company estimates that $ 7,518 will be reclassified as an increase to interest income.

The Company held 14 active derivative financial instruments, which had a total current notional amount of $ 1,382,568 as of September 30, 2024 and two forward-starting derivative financial instruments with effective dates of October 31, 2024 and July 14, 2025.

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

Fair Values of Derivative Instruments

2 unchanged sentences

Derivatives designated as hedging instruments:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Other assets $ 10,137 $ 15,733

3 unchanged sentences

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

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

Type 2024 2023 2024 2023

Swap Agreements $ ( 17,931 ) $ 9,146 Interest expense $ 6,965 $ 11,415

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

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

Type 2025 2024 2025 2024

Swap Agreements $ ( 3,467 ) $ 19,249 Interest expense $ 3,482 $ 8,017

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

Credit-Risk-Related Contingent Features

2 unchanged sentences

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

As of September 30, 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 $ 5,423 .

As of September 30, 2024, the Company had not posted any collateral related to these agreements.

If the Company had breached any of these provisions as of September 30, 2024, it could have been required to cash settle its obligations under these agreements at their termination value of $ 5,423 .

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

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

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

STOCKHOLDERS’ EQUITY

2 unchanged sentences

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

During the year ended December 31, 2023 and the nine months ended September 30, 2024, no shares were repurchased.

As of September 30, 2024, the Company had remaining authorization to repurchase shares with an aggregate value up to $ 500,000 .

On July 20, 2023, the Company issued 76,217,359 shares of its common stock at $ 148.96 for a total value of $ 11,353,338 as part of the Life Storage Merger.

See Acquisitions and Dispositions note above.

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

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

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

6 unchanged sentences

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.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

At September 30, 2024 and December 31, 2023, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company's condensed consolidated balance sheets.

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

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:

September 30, 2024 December 31, 2023

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

March 31, 2025 December 31, 2024

Series B Units $ 33,567 $ 33,567

4 unchanged sentences

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

As of September 30, 2024 and December 31, 2023, there were no outstanding Series A Units.

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

Series B Redeemable Preferred Units

2 unchanged sentences

The Series B Units were issued in 2013 and 2014.

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

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

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

4 unchanged sentences

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

As of September 30, 2024 and December 31, 2023, there were no outstanding Series C Units.

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

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

Series D Redeemable Preferred Units

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

During the nine months ended September 30, 2024, 1,242,168 Series D Units were redeemed for 213,661 shares of common stock.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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

NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP AND OTHER NONCONTROLLING INTERESTS

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

Between its general partner and limited partner interests, the Company held a 95.6 % ownership interest in the Operating Partnership as of September 30, 2024.

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

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 September 30, 2024 and December 31, 2023, the noncontrolling interests in the Operating Partnership are shown on the balance sheet net of a note receivable of $ 1,900 because a borrower under the note receivable is also a holder of OP Units.

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

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

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

As of September 30, 2024, the ten-day average closing price of the Company's common stock was $ 180.16 and there were 8,577,570 OP Units outstanding.

Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on September 30, 2024 and the Company elected to pay the OP Unit holders cash, the Company would have paid $ 1,545,335 in cash consideration to redeem the units.

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

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

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

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

OP Units redeemed for common stock 11,500 259,145

OP Units issued in conjunction with business combination and acquisitions — 1,674,748

Value of OP Units issued in conjunction with business combination and acquisitions $ — $ 249,470

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

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

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.

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If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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 condensed consolidated balance sheets.

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Other Noncontrolling Interests

Other noncontrolling interests represent the ownership interest of partners in nine consolidated joint ventures as of September 30, 2024.

There are a total of 13 stores in consolidated joint ventures, seven of which are operating and the other six of which are under development.

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

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

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

Based on the facts and circumstances of each of the Company’s joint ventures, the Company has determined that one of the joint ventures at September 30, 2024 was a variable interest entity (“VIE”) in accordance with ASC 810, “Consolidation.” The Company has consolidated that joint venture as it was determined that the Company has the power to direct the activities of the joint venture and is the primary beneficiary of the joint venture.

EXTRA SPACE STORAGE INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)

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

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

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 Operating Officer, and Chief Legal Officer.

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

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NOI for the Company’s self-storage operations represents total property revenue less direct property operating expenses.

NOI for the Company's tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense.

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 Company's consolidated revenues equal total segment revenues plus property management fees and other income.

NOI for the Company’s tenant reinsurance segment represents tenant reinsurance revenue less tenant reinsurance expenses.

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.

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 property management fees and other income.

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.

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2024 2023 2024 2023

For the Three Months Ended March 31,

Self-Storage Operations $ 704,380 $ 688,044

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Self-Storage Operations:

Payroll and benefits $ 43,746 $ 43,399

Marketing 15,150 16,625

Office expense 34,994 29,454

Property operating expense 21,225 20,218

Repairs and maintenance 16,257 15,211

Property taxes 79,884 67,680

Insurance 8,432 8,245

Other segment items (1)

Total self-storage operations expenses 223,582 204,518

Tenant Reinsurance:

Tenant reinsurance expense and other segment items (2)

$ 17,116 $ 18,505

Total segment operating expenses $ 240,698 $ 223,023

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Management fees and other income 30,905 30,148

Life Storage Merger transition costs — ( 54,174 ) — ( 54,174 )

General and administrative expense ( 45,974 ) ( 43,722 )

Depreciation and amortization expense ( 180,356 ) ( 196,966 )

Loss on real estate assets held for sale ( 8,961 ) — ( 63,620 ) —

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

Interest expense ( 142,399 ) ( 132,887 )

2 unchanged sentences

Equity in earnings and dividend income from unconsolidated real estate entities 19,931 15,007

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

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

Income tax expense ( 8,991 ) ( 6,742 )

Net income $ 284,925 $ 224,074

COMMITMENTS AND CONTINGENCIES

As of September 30, 2024, the Company was under agreement to acquire seven stores at a total purchase price of $ 74,300 .

Acquisitions of all seven stores are scheduled to close in 2024.

(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 include claims expense, acquisition costs, claims service fees, and miscellaneous administrative items.

EXTRA SPACE STORAGE INC.

1 unchanged sentence

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

As of September 30, 2024, the Company was involved in various legal proceedings and was subject to various claims and complaints arising in the ordinary course of business.

COMMITMENTS AND CONTINGENCIES

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

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

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

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The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties.

The Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period, notwithstanding the fact that the Company is currently vigorously defending any legal proceedings against it.

The Company could incur judgments or enter into settlements of claims in the future that could have a material adverse effect on its results of operations in any particular period, notwithstanding the fact that the Company is currently vigorously defending any legal proceedings against it.

Although there can be no assurance, the Company is not aware of any material environmental liability, for which it believes it will be ultimately responsible, that could have a material adverse effect on its financial condition or results of operations.

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

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

SUBSEQUENT EVENTS

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

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

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

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

What changed 10-Q

Item 1. Financial Statements