COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Extra Space Storage Inc., the S&P 500 Index, and the FTSE NAREIT Equity REITs Index- Extra Space Storage Inc.
- S&P 500
- FTSE NAREIT Equity REITs
*$100 invested on 12/31/12 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.
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Financial Results
Our final property of success is our performance. In 2017, core funds from operations per share (Core FFO) grew 13.8% year-over-year, well above Wall Street’s consensus expectations. This growth reflects not only solid operating performance, but also accretive acquisitions, joint ventures, third-party management and an optimized balance sheet. Our Core FFO growth is not only the best among our storage peers, but among the best performing REITs in the country. We have produced consistent growth year in and year out through strong execution of our strategy in a need-based real estate sector. Storage performs well in strong and weak economies, and has proven to be recession resilient. This has led to the highest 5-year and 10-year total returns to shareholders in the storage sector, with a total 10-year return to shareholders of 803%.
We are achieving this exceptional growth without accepting incremental risk or deviating from our core strategy. Same-store performance was solid, with same-store revenues increasing 5.1%, while NOI grew 6.9%.
In 2017, we completed a $300 million unsecured private placement debt transaction, further diversifying our balance sheet and providing another source of capital. Our goal is to have an appropriately levered balance sheet, with financial flexibility to ensure we have multiple sources of capital available to support our operations and finance our growth.