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2020 Annual Report

Innovating for a better tomorrow


“Despite the headwinds of 2020, Extra Space delivered another year of strong Core-FFO growth of 8.2% and is positioned for additional growth in 2021. We continue to strengthen our balance sheet and reduce our cost of capital. As a result of these efforts, our stock continues to be one of the highest returning in the REIT sector.”

Scott Stubbs
Chief Financial Officer

Extra Space has a track record of reliable returns regardless of the economic climate. Despite the difficult operating environment due to elevated new supply, and significant business interruption due to COVID-19 lockdowns, government moratoriums, health and safety concerns, and economic volatility, we maintained a focus on steady internal operations and efficient external growth.

In a year where same-store revenue growth was in the red in many sectors, Extra Space managed to maintain approximately flat same-store revenue growth, while continuing to grow many of our other income sources including management fees, income from bridge loans and preferred investments, tenant reinsurance and income from lease-up properties outside of our same-store pool. We focused on managing store level and corporate expenses, keeping same-store expense growth at 1.3% despite pressure from increasing property taxes and marketing expenses. Our efforts resulted in core funds from operations per share (Core FFO) growth of 8.2% percent year-over-year, well above the real estate and storage sector averages.


Outstanding 10-Year Total Return

  1. 831%
  2. 587%
  3. 490%
  4. 449%
  5. 293%
  6. 267%
  7. 220%
  8. 189%
  9. 102%
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  • 8.2%
    Core ffo growth

  • 831.3%
    10-year total shareholder return

  • BBB Stable (S&P) and Baa2 Stable (Moody’s) Investment Grade Issuer Credit Ratings

We are proud we were able to deliver strong Core FFO growth despite the headwinds related to the pandemic, and we are well positioned for 2021. Average same-store occupancy in the 2nd half of 2020 reached all-time highs at 95.6%, resulting in double-digit rental rate pricing power, which will carry into 2021 and sets us up for another strong year of performance.

As we have continued to grow our Core FFO, our stock growth has continued as well. In 2020, our one-year total return to shareholders was 13.6% and our three-year return was 47.2%. Our 10-year return was 831.3%, the highest in the storage sector, and the third highest total shareholder return to any public REIT.

In 2020, we continued to evolve our balance sheet, increasing the size of our unencumbered pool, further laddering our debt maturities, and expanding our sources of capital. We completed a 10-year $425 million unsecured private placement debt transaction at an attractive coupon right in the middle of the recession, demonstrating our ability to access debt markets in uncertain times. We retired our $575 million convertible senior notes, and issued equity of approximately $109 million on our ATM.

These transactions led to a second investment grade issuer credit rating of Baa2 stable from Moody’s Investor Service in January 2021. Our Moody’s rating, in addition to our existing BBB rating with a stable outlook from S&P Global Ratings, provides us access to the public investment grade debt markets, another significant milestone for our already durable balance sheet. These advancements will further allow Extra Space to efficiently capitalize our growth for many years to come.

Comparison of 5 year cumulative total return*

Among Extra Space Storage Inc., the S&P 500 Index, and the FTSE Nareit Equity REITs Index

5 year cumulative total return line graph