EXTRA VALUE: 2019 ANNUAL REPORT
JOSEPH D. MARGOLIS, CHIEF EXECUTIVE OFFICER
"We are finding innovative ways to continue to grow and improve, even in a competitive environment. Across our strong platform, consistent portfolio and people focused team, we’re finding ways to bring extra value to our shareholders, no matter the economic cycle."
Joseph D. Margolis, Chief Executive Officer
As we moved into 2020, I reflected upon the growth and accomplishments of Extra Space Storage over the last 10 years, and the value our extraordinary team created. During the decade, we acquired or developed 751 properties with an investment of $6.8 billion, more than any of our public peers. We established the largest third-party management business in the industry, which at year-end included 646 stores managed for outside owners, with an additional 241 managed on behalf of joint venture partners. The Company grew from 766 stores, to over 1,800 stores in 40 states, Washington D.C. and Puerto Rico -- an increase of 137 percent. Our workforce increased from approximately 2,000 employees to 4,000 employees. Our market capitalization grew from $2.5 billion to $14.7 billion, a 488 percent increase and we were added to the S&P 500. Importantly, we accomplished all of this without changing who we are – a values driven company that cares deeply about our employees, our partners, our community and our shareholders.
Our fast growth rate has not compromised our property level performance either. In fact, when compared to the storage companies operating the full decade, we led the sector in same-store revenue growth in eight out of the last 10 years, and Core FFO growth in nine of the last 10 years. We evolved our balance sheet to an investment grade level, which currently holds a BBB rating with a stable outlook from S&P Global Ratings. We have greater access to capital today than ever before, positioning us for continued stability and future expansion. Our growth and our performance have created extra value for our shareholders.
Our dividend has increased 800 percent since 2010, and our stock has appreciated significantly. Our total 10-year return was not only the highest in the storage sector, but of any publicly traded REIT in the United States, at 1,167 percent. That isn't just a standout in the real estate world. Our growth exceeds that of other high growth large cap companies such as Apple (1,021%) Costco (540%), Disney (415%), Google (332%) and JP Morgan Chase (326%).
The extra value created has been the result of a strategy to consistently grow Core FFO per share while prudently managing risk. We have executed our strategy through consistent same-store operations coupled with creative external growth, resulting in a broadly diversified portfolio of high-quality stores in many high-growth and varied markets. We have maximized the revenue generated by our portfolio by creating and refining a sophisticated operating platform built upon a foundation of data analytics and technological innovation. Our strategy has been designed and executed by some of the industry's most experienced, talented and hard-working people. Our commitment to constant improvement has kept Extra Space Storage ahead of the competition for ten years and counting.
While we are proud of our accomplishments, and believe it is important to celebrate our past successes, we are more focused on our future. The storage sector is facing the headwinds of new supply, a competitive labor environment and pressure on internet marketing and property tax expenses. We are also in a very unusual macro-environment with concerns related to COVID-19, the health of our employees, customers and partners, and the potential impact on our economy.
While we acknowledge the challenges these macro and sector-specific dynamics create for our industry, we believe we are well positioned to navigate them. Our portfolio has no single metropolitan statistical area which contributes more than 12 percent of our same-store revenue. This diversification reduces volatility and contributes to our consistent performance. Demand continues to be very steady in our need-based sector, and our highly sophisticated customer acquisition platform continues to drive elevated levels of traffic to Extra Space locations, which are converted to rentals. We entered 2020, with our highest same-store occupancy since 2015 at 92.4%, 70 basis points ahead of the prior year mark, and our predictive revenue management system is able to maximize the revenue from those rentals.
In short, no matter the challenges, we are committed to leveraging our experience, our technological prowess, our portfolio and the skill sets of our team to extend our track record of success in the decade ahead of us. We will work relentlessly for our shareholders to continue to provide the extra value that you have come to expect from Extra Space Storage this year and the decade ahead.