10-KPeriod: FY2008

Extra Space Storage Inc. Annual Report, Year Ended Dec 31, 2008

Filed February 27, 2009For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) filed its 2008 Annual Report on Form 10-K on February 27, 2009. The report details the company's performance and financial condition as of December 31, 2008. EXR operates a significant portfolio of self-storage facilities across 33 states and Washington D.C., managing 694 properties encompassing approximately 50 million square feet. The company's business model focuses on property management, acquisition, development, and rental operations. Despite facing a challenging economic environment, EXR demonstrated resilience, with growth in property rental revenues driven by acquisitions and rental rate increases. The report highlights EXR's strategic focus on maximizing property performance through efficient management, expanding its management business, strategic acquisitions, and selective development of new properties. The company also outlines its financing strategies, leveraging both debt and equity to fund its growth initiatives. Key risks identified include adverse economic conditions, competition, and potential liabilities, alongside proactive strategies to mitigate these. The filing also notes a leadership transition with the upcoming CEO change. Financially, the company reported total revenues of $273.25 million for 2008, an increase from $238.87 million in 2007. Net income attributable to common stockholders was $46.89 million in 2008, up from $34.58 million in 2007. Funds From Operations (FFO) also showed a healthy increase. EXR's balance sheet reflects total assets of $2.29 billion and total liabilities of $1.36 billion as of December 31, 2008. The company's liquidity appears stable, with cash and cash equivalents of $63.97 million available.

Financial Highlights

26 data points
Beta

Net Income

$35.78M

EPS (Diluted)

$0.46

Cash & Equivalents

$63.97M

Free Cash Flow

$98.39M

Financial Statements
Beta
Cost of Revenue$84.52M
Operating Expenses$180.27M
Operating Income$92.46M
Interest Expense$64.61M
Net Income$35.78M
EPS (Basic)$0.46
EPS (Diluted)$0.46
Shares Outstanding (Basic)77.00M
Shares Outstanding (Diluted)82.35M

Key Highlights

  • 1Extra Space Storage Inc. operated 694 self-storage properties across 33 states and D.C. as of December 31, 2008, with approximately 50 million square feet of rentable space.
  • 2Total revenues for 2008 increased by 14.4% to $273.25 million, compared to $238.87 million in 2007.
  • 3Net income attributable to common stockholders grew by 35.6% to $46.89 million in 2008, up from $34.58 million in 2007.
  • 4Funds From Operations (FFO) increased significantly to $96.59 million in 2008, compared to $76.62 million in 2007.
  • 5The company's growth strategies include property optimization, management business expansion, strategic acquisitions, and new property development.
  • 6EXR maintained compliance with its debt covenants and had $63.97 million in cash and cash equivalents at year-end 2008.
  • 7A leadership transition was announced, with Spencer F. Kirk set to succeed Kenneth M. Woolley as Chairman and CEO effective April 1, 2009.

Frequently Asked Questions

In 2008, Extra Space Storage reported total revenues of $273.25 million, an increase from $238.87 million in 2007. Net income attributable to common stockholders rose to $46.89 million, up from $34.58 million in the prior year. Funds From Operations (FFO) also showed a strong increase, reaching $96.59 million in 2008.

Extra Space Storage's primary growth strategies involve maximizing the performance of existing properties through efficient management, expanding its property management business, strategically acquiring new self-storage properties, and selectively developing new facilities.

The company identified several risks, including adverse economic conditions impacting occupancy and rental rates, increased competition, potential liabilities from uninsured losses or environmental issues, difficulties in integrating acquired properties, and the impact of regulatory changes. The report also highlights risks related to the company's debt financing and its REIT qualification.

On a same-store basis (comparing wholly-owned, stabilized properties owned throughout the period), rental revenues increased by 1.6% in 2008, while operating expenses saw a minimal increase of 0.3%. This resulted in a 2.3% increase in same-store net operating income, although year-end occupancy slightly decreased to 82.5% from 84.2%.