SALT LAKE CITY—Locally based Extra Space Storage Inc. has revealed its operating results—results that CEO Spencer Kirk called “record breaking.” According to Kirk, “2015 was a record-breaking year for Extra Space in all operational categories including occupancy, revenue, NOI growth, and the expansion of our footprint by 24%.”

He continues that the “performance and growth resulted in our inclusion in the S&P 500. Market conditions continue to be favorable for the storage sector in 2016, and we are poised to extract efficiencies from our size and scale.”

That sentiment was echoed by analyst Wes Golladay of RBC Capital Markets who expects strong organic growth with elevated acquisition pace going forward.

Golladay says that the firm met and beat consensus estimates. “EXR reported adjusted FFO/share of $0.87, which met our estimate and beat the consensus estimate of $0.82. Total NOI was in line with our expectation while higher tenant reinsurance income was offset by high income taxes. Same store revenue growth excluding tenant reinsurance remained elevated at 9.8%, leading to another healthy quarter of NOI growth of 11.8%. Excluding tenant reinsurance, NOI grew by double digits in each quarter of 2015.”

Golladay also notes that West Coast and Florida markets outperformed. “EXR's largest West Coast and Florida markets outperformed in 4Q15, posting average year-over-year revenue of 12%. Demand continued to outpace supply, with occupancy at same store and total stabilized properties up 160bps and 180bps year-over-year, respectively.”

See below for more highlights:

Highlights for the three months ended December 31, 2015:

–  Achieved funds from operations attributable to common stockholders

(“FFO”) of $0.38 per diluted share. Excluding costs associated with

acquisitions and non-cash interest, FFO as adjusted was $0.87 per

diluted share, representing a 27.9% increase compared to the same period

in 2014.

–  Increased same-store revenue by 9.6% and same-store net operating income

(“NOI”) by 11.5% compared to the same period in 2014.

–  Increased same-store occupancy by 150 basis points to 92.9% as of

December 31, 2015, compared to 91.4% as of December 31, 2014.

–  Acquired SmartStop Self Storage, Inc. including 122 wholly-owned stores

and the third-party management of 43 stores for a total of approximately

$1.3 billion.

–  Acquired six additional operating stores and three stores at completion

of construction for a total of approximately $75.4 million.

–  Paid a quarterly dividend of $0.59 per share.

Highlights for the year ended December 31, 2015:

–  Achieved FFO of $2.58 per diluted share. Excluding costs associated with

acquisitions and non-cash interest, FFO as adjusted was $3.13 per

diluted share, representing a 19.9% increase compared to the same period

in 2014.

–  Increased same-store revenue by 9.3% and same-store NOI by 11.9%

compared to the same period in 2014.

–  Acquired 166 operating stores and five stores at completion of

construction for a total of approximately $1.75 billion.

–  Increased the third-party management portfolio by 88 stores to a total

of 348 stores at year end.

SALT LAKE CITY—Locally based Extra Space Storage Inc. has revealed its operating results—results that CEO Spencer Kirk called “record breaking.” According to Kirk, “2015 was a record-breaking year for Extra Space in all operational categories including occupancy, revenue, NOI growth, and the expansion of our footprint by 24%.”

He continues that the “performance and growth resulted in our inclusion in the S&P 500. Market conditions continue to be favorable for the storage sector in 2016, and we are poised to extract efficiencies from our size and scale.”

That sentiment was echoed by analyst Wes Golladay of RBC Capital Markets who expects strong organic growth with elevated acquisition pace going forward.

Golladay says that the firm met and beat consensus estimates. “EXR reported adjusted FFO/share of $0.87, which met our estimate and beat the consensus estimate of $0.82. Total NOI was in line with our expectation while higher tenant reinsurance income was offset by high income taxes. Same store revenue growth excluding tenant reinsurance remained elevated at 9.8%, leading to another healthy quarter of NOI growth of 11.8%. Excluding tenant reinsurance, NOI grew by double digits in each quarter of 2015.”

Golladay also notes that West Coast and Florida markets outperformed. “EXR's largest West Coast and Florida markets outperformed in 4Q15, posting average year-over-year revenue of 12%. Demand continued to outpace supply, with occupancy at same store and total stabilized properties up 160bps and 180bps year-over-year, respectively.”

See below for more highlights:

Highlights for the three months ended December 31, 2015:

–  Achieved funds from operations attributable to common stockholders

(“FFO”) of $0.38 per diluted share. Excluding costs associated with

acquisitions and non-cash interest, FFO as adjusted was $0.87 per

diluted share, representing a 27.9% increase compared to the same period

in 2014.

–  Increased same-store revenue by 9.6% and same-store net operating income

(“NOI”) by 11.5% compared to the same period in 2014.

–  Increased same-store occupancy by 150 basis points to 92.9% as of

December 31, 2015, compared to 91.4% as of December 31, 2014.

–  Acquired SmartStop Self Storage, Inc. including 122 wholly-owned stores

and the third-party management of 43 stores for a total of approximately

$1.3 billion.

–  Acquired six additional operating stores and three stores at completion

of construction for a total of approximately $75.4 million.

–  Paid a quarterly dividend of $0.59 per share.

Highlights for the year ended December 31, 2015:

–  Achieved FFO of $2.58 per diluted share. Excluding costs associated with

acquisitions and non-cash interest, FFO as adjusted was $3.13 per

diluted share, representing a 19.9% increase compared to the same period

in 2014.

–  Increased same-store revenue by 9.3% and same-store NOI by 11.9%

compared to the same period in 2014.

–  Acquired 166 operating stores and five stores at completion of

construction for a total of approximately $1.75 billion.

–  Increased the third-party management portfolio by 88 stores to a total

of 348 stores at year end.