EXTRA VALUE: 2019 ANNUAL REPORT
Extra Space has a track record of providing extra return, and 2019 was no exception. Despite a difficult environment with elevated new supply, we maintained a relentless focus on solid operating performance and consistent external growth. Our efforts resulted in core funds from operations per share (Core FFO) growth of 4.5% year-over-year, well above the storage sector average. Not only has short-term performance been good, our long-term Core FFO growth is the best among our storage peers, and among the highest of any REIT. We have produced consistent growth year in and year out through execution of our strategy. 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 1,167%, the highest among all publicly traded REITs during that time period.
"We have produced consistent growth year in and year out through execution of our strategy. 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 1,167%, the highest among all publicly traded REITs during that time period."
SCOTT STUBBS
Executive Vice President and
Chief Financial Officer
Among Extra Space Storage Inc., the S&P 500 Index, and the FTSE Nareit Equity REITs Index
$100 invested on 12/31/14 in stock or index, including reinvestment of dividends. Fiscal year ending December 31.
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We are achieving this exceptional growth without accepting incremental risk or deviating from our core strategy. Same-store performance was solid in 2019, with average same-store occupancy of 92.8%, same-store revenues increasing 3.5%, while NOI grew 2.9%.
In 2019, we completed several significant balance sheet transactions with the goal of increasing our unencumbered pool, further laddering debt maturities and diversifying our balance sheet. This included a transaction which expanded our unsecured credit facility and retired approximately $500 million in secured debt without any prepayment penalties. The transaction unencumbered approximately $1.3 billion in storage properties. We also completed another 10-year $300 million unsecured private placement debt transaction at an attractive coupon, and issued equity of approximately $200 million on our ATM.
These transactions contributed to S&P Global Ratings issuing Extra Space Storage a BBB rating with a stable outlook, and facilitated a reduction in the interest rates of our $1.85 billion credit facility.
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 in any market environment. Our performance and our nimble balance sheet provide extra value to our shareholders.