Extra Space Storage Inc. Reports 2026 Second Quarter Results

Extra Space Storage Inc. Reports 2026 Second Quarter Results SALT LAKE CITY, July 28, 2026 /PRNewswire/ -- Extra Space Storage Inc. (NYSE: EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a member of the S&P 500 index, announced operating results for the three and six months ended June 30, 2026.

Highlights for the three months ended June 30, 2026:

Highlights for the six months ended June 30, 2026:

Joe Margolis, CEO of the Company, stated: "Our operating systems and platform continue to optimize performance as we get deeper into the storage sector's recovery. Core FFO growth of 4.9% for the quarter was driven by strong occupancy, improving store performance, and smart expense control — with meaningful contributions from our ancillary businesses, including third-party management and bridge lending. We are never satisfied with, and always seek to improve, our technology, systems, process, and people, and it is gratifying to see that commitment reflected in our results."

FFO Per Share:

The following table (unaudited) outlines the Company's FFO and Core FFO for the three and six months ended June 30, 2026 and 2025. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

(per share) 1

Net income attributable to

common stockholders

$ 263,471

$ 1.25

$ 249,731

$ 1.18

$ 504,448

$ 2.39

$ 520,606

$ 2.45

Impact of the difference in

weighted average number of

shares – diluted 2

(0.06)

(0.05)

(0.11)

(0.10)

Adjustments:

Real estate depreciation

171,249

0.77

164,707

0.74

342,144

1.55

323,877

1.46

Amortization of intangibles

2,953

0.01

3,225

0.01

6,676

0.03

14,304

0.07

(Gain) loss on real estate

assets held for sale and sold,

net

—

864

—

(34,897)

(0.16)

Unconsolidated joint venture

real estate depreciation and

amortization

7,864

0.04

7,741

0.04

15,471

0.07

16,430

0.07

Equity in earnings of

unconsolidated joint venture

gain on sale of a joint venture

interest

(640)

—

(847)

—

Income allocated to Operating

Partnership and other

noncontrolling interests

12,408

0.06

12,985

0.06

23,851

0.11

27,035

0.12

FFO

$ 457,305

$ 2.07

$ 439,253

$ 1.98

$ 891,743

$ 4.04

$ 867,355

$ 3.91

Adjustments:

Non-cash interest expense

related to amortization of

discount on unsecured senior

notes, net

12,735

0.05

11,770

0.05

25,290

0.10

23,083

0.10

Amortization of other

intangibles related to the Life

Storage Merger, net of tax

benefit

3,917

0.02

3,917

0.02

7,834

0.04

8,448

0.04

Other adjustments (4)

1,771

0.01

—

1,771

0.01

—

CORE FFO

$ 475,728

$ 2.15

$ 454,940

$ 2.05

$ 926,638

$ 4.19

$ 898,886

$ 4.05

Weighted average number of

shares – diluted 3

221,002,914

221,971,567

220,968,158

221,934,254

(1)

Per share amounts may not recalculate due to rounding.

(2)

This adjustment is to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3).

(3)

Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common Operating Partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company's election, shares of the Company's common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares — diluted, as presented above. The computation of weighted average number of shares — diluted, for FFO per share and Core FFO per share also includes the effect of share-based compensation plans.

(4)

Adjustment to Core FFO relates to legal settlement costs with New York City.

Operating Results and Same-Store Performance:

The following table (unaudited) outlines the Company's same-store performance for the three and six months ended June 30, 2026 and 2025 (amounts shown in thousands, except store count data) 1:

For the Three Months Ended

June 30,

Percent

For the Six Months

Ended June 30,

Percent

2026

2025

Change

2026

2025

Change

Same-store property revenues 2

Net rental income

$ 664,926

$ 648,617

2.5 %

$ 1,319,291

$ 1,291,611

2.1 %

Other income

25,266

25,644

(1.5) %

49,510

50,200

(1.4) %

Total same-store revenues

$ 690,192

$ 674,261

2.4 %

$ 1,368,801

$ 1,341,811

2.0 %

Same-store operating expenses 2

Payroll and benefits

$ 40,786

$ 41,744

(2.3) %

$ 82,471

$ 82,816

(0.4) %

Marketing

16,720

17,524

(4.6) %

31,187

31,838

(2.0) %

Office expense 3

18,518

18,016

2.8 %

36,728

35,915

2.3 %

Property operating expense 4

17,476

18,847

(7.3) %

41,576

41,577

— %

Repairs and maintenance

11,289

13,362

(15.5) %

28,003

28,856

(3.0) %

Property taxes

80,818

77,526

4.2 %

158,609

154,716

2.5 %

Insurance

8,507

8,141

4.5 %

17,409

16,069

8.3 %

Total same-store operating expenses

$ 194,114

$ 195,160

(0.5) %

$ 395,983

$ 391,787

1.1 %

Same-store net operating income 2

$ 496,078

$ 479,101

3.5 %

$ 972,818

$ 950,024

2.4 %

Same-store square foot occupancy as of

quarter end

94.2 %

94.4 %

94.2 %

94.4 %

Average same-store square foot occupancy

94.0 %

94.1 %

93.4 %

93.6 %

Properties included in same-store 5

1,870

(1)

A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income."

(2)

Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense.

(3)

Includes general office expenses, computer, bank fees, and credit card merchant fees.

(4)

Includes utilities and miscellaneous other store expenses.

(5)

On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to a casualty loss, reducing the same-store pool to 1,870 stores.

Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three and six months ended June 30, 2026 and 2025 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Investment and Property Management Activity:

The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).

Closed/Completed through

June 30, 2026

Closed /Completed or

Scheduled to Close/Complete

in 2026

Total 2026

Wholly-Owned Investment 1

Stores

Price

Stores

Price

Stores

Price

Operating Stores

$ 99,133

$ 14,200

$ 113,333

Buyout of JV Partners' Interest in

Operating Store

4,080

—

4,080

EXR Investment in Wholly-

Owned Stores

103,213

14,200

117,413

Joint Venture Investment 1

EXR Investment in JV Development

and C of O

14,378

42,370

56,748

EXR Investment in Joint

Ventures

14,378

42,370

56,748

Total EXR Investment

$ 117,591

$ 56,570

$ 174,161

(1)

The locations of certificate of occupancy ("C of O") and development stores and joint venture ownership interest details are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

The projected developments and acquisitions under agreement described above are subject to customary closing conditions and no assurance can be provided that these developments and acquisitions will be completed on the terms described, or at all.

Property Sales:

The Company did not dispose of any properties during the three months ended June 30, 2026, and currently has six properties held for sale.

Bridge Loans:

During the three months ended June 30, 2026, the Company originated $140.6 million in bridge loans. Outstanding balances of the Company's bridge loans were approximately $1.5 billion at the end of the quarter. The Company has an additional $86.3 million in bridge loans that have closed subsequent to quarter end or are under agreement to close in 2026. Additional details related to the Company's loan activity and balances held are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Property Management:

As of June 30, 2026, the Company managed 1,964 stores for third-party owners and 409 stores owned in unconsolidated joint ventures, for a total of 2,373 stores under management. The Company is the largest self-storage management company in the United States.

Balance Sheet:

During the three months ended June 30, 2026, the Company did not issue any shares on its ATM program, and as of June 30, 2026, the Company had $800.0 million available for issuance. Likewise, the Company did not repurchase any shares of common stock using its stock repurchase program during the quarter. As of June 30, 2026, the Company had authorization to purchase up to $349.0 million under the program.

On June 24, 2026, the Company priced a public bond offering issuing $550.0 million aggregate principal amount of 4.90% unsecured senior notes due 2032.

As of June 30, 2026, the Company's commercial paper program had total capacity of $1.0 billion, with $850.0 million in outstanding issuances.

As of June 30, 2026, the Company's percentage of fixed-rate debt to total debt was 78.5%. Net of the impact of variable rate receivables, the effective fixed-rate debt to total debt was 88.4%. The weighted average interest rates of the Company's fixed and variable-rate debt were 4.3% and 4.6%, respectively. The combined weighted average interest rate was 4.3% with a weighted average maturity of approximately 4.0 years. Full details related to the Company's debt schedule are included in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/.

Dividends:

On June 30, 2026, the Company paid a second quarter common stock dividend of $1.62 per share to stockholders of record at the close of business on June 15, 2026.

Outlook:

The following table outlines the Company's Core FFO estimates and assumptions for the year ending December 31, 2026 1.

Current Ranges for 2026

Annual Assumptions

Prior Ranges for 2026

Annual Assumptions

Notes

(July 28, 2026)

(April 28, 2026)

Low

High

Low

High

Core FFO

$8.25

$8.40

$8.05

$8.35

Dilution per share from C of O

and value add acquisitions

$0.17

$0.18

Same-store revenue growth

1.00 %

2.00 %

(0.50) %

1.50 %

Same-store pool of 1,870 stores

Same-store expense growth

1.00 %

2.00 %

3.50 %

Same-store pool of 1,870 stores

Same-store NOI growth

0.50 %

2.50 %

(2.25) %

1.25 %

Same-store pool of 1,870 stores

Weighted average one-month

SOFR

3.73 %

3.65 %

Net tenant reinsurance income

$294,000,000

$296,000,000

$289,000,000

$292,000,000

Management fees and other

income

$139,000,000

$140,000,000

$141,500,000

Interest income

$153,000,000

$154,000,000

$149,500,000

$151,000,000

Includes interest from bridge

loans and dividends from

NexPoint preferred investment

General and administrative

expenses

$188,000,000

$189,500,000

$190,500,000

$192,500,000

Includes non-cash

compensation

Equity in earnings of real

estate ventures

$63,500,000

$64,500,000

$63,500,000

$64,500,000

Includes dividends from

SmartStop preferred

investments

Interest expense

$595,000,000

$598,000,000

$592,000,000

$597,000,000

Excludes non-cash interest

expense shown below

Non-cash interest expense

related to amortization of

discount on unsecured senior

notes, net

$44,000,000

$45,000,000

$42,000,000

$43,000,000

Amortization of debt mark-to-

market; excluded from Core

FFO

Income Tax Expense

$48,000,000

$49,000,000

$47,000,000

$48,000,000

Taxes associated with the

Company's taxable REIT

subsidiary

Acquisitions

$300,000,000

$200,000,000

Includes wholly-owned

acquisitions and the Company's

investment in joint ventures

Bridge loans outstanding

$1,475,000,000

Represents the Company's

average retained loan balances

for the year

Weighted average share count

221,000,000

221,100,000

Assumes redemption of all OP

units for common stock

(1)

A reconciliation of net income outlook to same-store net operating income outlook is provided later in this release entitled "Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income." The reconciliation includes details related to same-store revenue and same-store expense outlooks. A reconciliation of net income per share outlook to funds from operations per share outlook is provided later in this release entitled "Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share."

FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company's estimates are forward-looking and based on management's view of current and future market conditions. The Company's actual results may differ materially from these estimates.

Supplemental Financial Information:

Supplemental unaudited financial information regarding the Company's performance can be found on the Company's website at www.extraspace.com. Under the "Company Info" navigation menu on the home page, click on "Investor Relations," then under the "Financials" navigation menu click on "Quarterly Results." This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.

Conference Call:

The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, July 29, 2026, to discuss its financial results. Telephone participants may avoid any delays in joining the conference call by pre-registering for the call using the following link to receive a special dial-in number and PIN: https://events.q4inc.com/analyst/293950168?pwd=CHtG2oiN

A live webcast of the call will also be available on the Company's investor relations website at https://ir.extraspace.com. To listen to the live webcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software.

A replay of the call will be available for 30 days on the investor relations section of the Company's website beginning at 5:00 p.m. Eastern Time on July 29, 2026.

Forward-Looking Statements:

Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, developments, market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, the competitive landscape, the impact of broader economic trends on the storage industry, our plans or intentions relating to acquisitions and developments, and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," "outlook," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management's expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Definition of FFO:

FFO provides relevant and meaningful information about the Company's operating performance that is necessary, along with net income and cash flows, for an understanding of the Company's operating results. The Company believes FFO is a meaningful disclosure as a supplement to net income. Net income assumes that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company's real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization related to real estate and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company's performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company's consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.

For informational purposes, the Company also presents Core FFO. Core FFO excludes revenues and expenses not core to our operations and transaction costs. It also includes certain costs associated with the Life Storage Merger including non-cash interest related to the amortization of discount on unsecured senior notes and amortization of other intangibles, net of tax benefit. Although the Company's calculation of Core FFO differs from NAREIT's definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding revenues and expenses not core to our operations and non-cash interest charges, stockholders and potential investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Core FFO by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company's performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company's ability to make cash distributions.

Definition of Same-Store:

The Company's same-store pool for the periods presented consists of 1,870 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented, or January 1, 2025. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. The Company believes that by providing same-store results from a stabilized pool of stores, with accompanying operating metrics including, but not limited to occupancy, rental revenue (growth), operating expenses (growth), net operating income (growth), etc., stockholders and potential investors are able to evaluate operating performance without the effects of non-stabilized occupancy levels, rent levels, expense levels, acquisitions or completed developments. Same-store results should not be used as a basis for future same-store performance or for the performance of the Company's stores as a whole.

About Extra Space Storage Inc.:

Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of June 30, 2026, the Company owned and/or operated 4,410 self-storage stores in 42 states and Washington, D.C. The Company's stores comprise approximately 3.0 million units and approximately 341.0 million square feet of rentable space operating under the Extra Space brand. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. It is the largest operator of self-storage properties in the United States.

Extra Space Storage Inc.

Condensed Consolidated Balance Sheets

(In thousands, except share data)

June 30, 2026

December 31, 2025

(Unaudited)

Assets:

Real estate assets, net

$ 24,938,444

$ 25,004,350

Real estate assets - operating lease right-of-use assets

732,490

732,176

Investments in unconsolidated real estate entities

1,065,012

1,066,783

Investments in debt securities and notes receivable

1,751,653

1,806,526

Cash and cash equivalents

695,171

138,920

Other assets, net

477,723

515,291

Total assets

$ 29,660,493

$ 29,264,046

Liabilities, Noncontrolling Interests and Equity:

Secured notes payable, net

$ 1,073,327

$ 1,079,565

Unsecured term loans, net

1,495,365

1,494,659

Unsecured senior notes, net

9,460,928

9,432,427

Revolving lines of credit and commercial paper

1,617,000

1,224,000

Operating lease liabilities

767,584

761,106

Cash distributions in unconsolidated real estate ventures

75,185

73,701

Accounts payable and accrued expenses

445,144

357,583

Other liabilities

548,626

516,969

Total liabilities

15,483,159

14,940,010

Commitments and contingencies

Noncontrolling Interests and Equity:

Extra Space Storage Inc. stockholders' equity:

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, 211,273,076

and 211,155,322 shares issued and outstanding at June 30, 2026 and December

31, 2025, respectively

2,113

2,112

Additional paid-in capital

14,886,836

14,880,646

Accumulated other comprehensive loss

(181)

(420)

Accumulated deficit

(1,630,873)

(1,449,172)

Total Extra Space Storage Inc. stockholders' equity

13,257,895

13,433,166

Noncontrolling interest represented by Preferred Operating Partnership units

47,827

53,827

Noncontrolling interests in Operating Partnership, net and other noncontrolling

interests

871,612

837,043

Total noncontrolling interests and equity

14,177,334

14,324,036

Total liabilities, noncontrolling interests and equity

$ 29,660,493

$ 29,264,046

Consolidated Statement of Operations for the Three and Six Months Ended June 30, 2026 and 2025

(In thousands, except share and per share data) - Unaudited

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Revenues:

Property rental

$ 746,164

$ 721,004

$ 1,479,377

$ 1,425,384

Tenant reinsurance

93,084

88,572

182,203

173,284

Management fees and other income

34,904

32,042

68,599

62,947

Total revenues

874,152

841,618

1,730,179

1,661,615

Expenses:

Property operations

231,718

227,621

470,021

451,203

Tenant reinsurance

17,325

16,945

35,192

34,061

General and administrative

47,315

44,952

93,824

90,926

Depreciation and amortization

185,610

177,266

371,405

357,622

Total expenses

481,968

466,784

970,442

933,812

Gain (loss) on real estate assets held for sale and sold, net

—

(864)

—

34,897

Income from operations

392,184

373,970

759,737

762,700

Interest expense

(146,720)

(146,128)

(294,019)

(288,527)

Non-cash interest expense related to amortization of discount on unsecured senior

notes, net

(12,735)

(11,770)

(25,290)

(23,083)

Interest income

38,777

41,998

78,320

80,965

Income before equity in earnings and dividend income from unconsolidated real

estate entities and income tax expense

271,506

258,070

518,748

532,055

Equity in earnings and dividend income from unconsolidated real estate entities

15,802

16,284

31,562

36,215

Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint

venture interest

640

—

847

—

Income tax expense

(12,069)

(11,638)

(22,858)

(20,629)

Net income

275,879

262,716

528,299

547,641

Net income allocated to Preferred Operating Partnership noncontrolling interests

(674)

(723)

(1,347)

(1,447)

Net income allocated to Operating Partnership and other noncontrolling interests

(11,734)

(12,262)

(22,504)

(25,588)

Net income attributable to common stockholders

$ 263,471

$ 249,731

$ 504,448

$ 520,606

Earnings per common share

Basic

$ 1.25

$ 1.18

$ 2.39

$ 2.45

Diluted

$ 1.25

$ 1.18

$ 2.39

$ 2.45

Weighted average number of shares

Basic

210,962,128

211,940,903

210,929,737

211,895,586

Diluted

220,362,955

211,940,903

220,343,045

211,895,586

Cash dividends paid per common share

$ 1.62

$ 3.24

Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income — for the Three and Six Months Ended

June 30, 2026 and 2025 (In thousands) - Unaudited

For the Three Months Ended

June 30,

For the Six Months Ended

June 30,

2026

2025

2026

2025

Net Income

$ 275,879

$ 262,716

$ 528,299

$ 547,641

Adjusted to exclude:

(Gain) loss on real estate assets held for sale and sold, net

—

864

—

(34,897)

Equity in earnings and dividend income from unconsolidated real

estate entities

(15,802)

(16,284)

(31,562)

(36,215)

Equity in earnings of unconsolidated real estate ventures - gain on sale

of a joint venture interest

(640)

—

(847)

—

Interest expense

146,720

146,128

294,019

288,527

Non-cash interest expense related to amortization of discount on

unsecured senior notes, net

12,735

11,770

25,290

23,083

Depreciation and amortization

185,610

177,266

371,405

357,622

Income tax expense

12,069

11,638

22,858

20,629

General and administrative

47,315

44,952

93,824

90,926

Management fees, other income and interest income

(73,681)

(74,040)

(146,919)

(143,912)

Net tenant insurance

(75,759)

(71,627)

(147,011)

(139,223)

Non same-store rental revenue

(55,972)

(46,743)

(110,576)

(83,573)

Non same-store operating expense

37,604

32,461

74,038

59,416

Total same-store net operating income

$ 496,078

$ 479,101

$ 972,818

$ 950,024

Same-store rental revenues

690,192

674,261

1,368,801

1,341,811

Same-store operating expenses

194,114

195,160

395,983

391,787

Same-store net operating income

$ 496,078

$ 479,101

$ 972,818

$ 950,024

Reconciliation of the Range of Estimated GAAP Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per

Share — for the Year Ending December 31, 2026 - Unaudited

For the Year Ending

December 31, 2026

Low End

High End

Net income attributable to common stockholders per diluted share

$ 4.49

$ 4.64

Income allocated to noncontrolling interest - Preferred Operating

Partnership and Operating Partnership

0.22

Net income attributable to common stockholders for diluted computations

4.71

4.86

Adjustments:

Real estate depreciation

3.10

Amortization of intangibles

0.05

Unconsolidated joint venture real estate depreciation and amortization

0.14

Funds from operations attributable to common stockholders

8.00

8.15

Adjustments:

Non-cash interest expense related to amortization of discount on unsecured

senior notes, net

0.20

Amortization of other intangibles related to the Life Storage Merger, net of

tax benefit

0.04

Other adjustments (1)

0.01

Core funds from operations attributable to common stockholders

$ 8.25

$ 8.40

(1)

Adjustment to Core FFO relates to legal settlement costs with New York City.

Reconciliation of Estimated GAAP Net Income to Estimated Same-Store Net Operating Income — for the Year Ending

December 31, 2026 (In thousands) - Unaudited

For the Year Ending December 31, 2026

Low

High

Net Income

$ 1,037,750

$ 1,085,650

Adjusted to exclude:

Equity in earnings of unconsolidated joint ventures

(63,500)

(64,500)

Interest expense

598,000

595,000

Non-cash interest expense related to amortization of discount on

unsecured senior notes, net

45,000

44,000

Depreciation and amortization

736,000

Income tax expense

49,000

48,000

General and administrative

189,500

188,000

Management fees and other income

(139,000)

(140,000)

Interest income

(153,000)

(154,000)

Net tenant reinsurance income

(294,000)

(296,000)

Non same-store rental revenues

(226,000)

(227,000)

Non same-store operating expenses

149,500

149,000

Total same-store net operating income 1

$ 1,929,250

$ 1,964,150

Same-store rental revenues 1

2,732,000

2,759,000

Same-store operating expenses 1

802,750

794,850

Total same-store net operating income 1

$ 1,929,250

$ 1,964,150

(1)

Estimated same-store rental revenues, operating expenses and net operating income are for the Company's 2026 same-store pool of 1,870 stores. On January 1, 2026, the Company updated the property count of the same-store pool from 1,804 to 1,871 stores. In the quarter ended March 31, 2026, one property was removed due to casualty loss, reducing the same-store pool to 1,870 stores.

SOURCE Extra Space Storage Inc.