10-KPeriod: FY2012

Extra Space Storage Inc. Annual Report, Year Ended Dec 31, 2012

Filed February 28, 2013For Securities:EXR

Summary

Extra Space Storage Inc.'s (EXR) 2012 10-K filing reveals a company focused on growth and operational efficiency within the self-storage sector. The company has significantly expanded its property portfolio, acquiring 91 wholly-owned properties in 2012 and completing one development project. This expansion, coupled with organic growth through increased occupancy and rental rates at existing stabilized properties, led to a substantial increase in revenues. The company's strategy emphasizes maximizing property performance through proactive management, strategic acquisitions, and expanding its management business. Financially, EXR demonstrated strong revenue growth driven by its expanding property base and improved rental rates. While expenses also increased due to acquisitions and operational growth, the company managed its costs effectively. The filing highlights EXR's commitment to its REIT status and its strategy to fund future growth through a combination of cash flow, debt, joint ventures, and equity offerings. Investors should note the company's active management of its portfolio, its focus on key demographic markets, and its ongoing efforts to enhance shareholder value through acquisitions and operational improvements.

Financial Highlights

35 data points
Beta

Net Income

$117.03M

EPS (Diluted)

$1.14

Total Assets

$3.22B

Cash & Equivalents

$30.79M

Free Cash Flow

$215.88M

Financial Statements
Beta
Cost of Revenue$114.03M
Operating Expenses$252.16M
Operating Income$157.24M
Interest Expense$71.85M
Net Income$117.03M
EPS (Basic)$1.15
EPS (Diluted)$1.14
Shares Outstanding (Basic)101.77M
Shares Outstanding (Diluted)103.77M

Key Highlights

  • 1Reported strong revenue growth, primarily driven by acquisitions and increased occupancy/rental rates at existing properties.
  • 2Expanded its property portfolio significantly, acquiring 91 wholly-owned properties and managing a total of 910 properties.
  • 3Maintained a focus on strategic acquisitions and operational efficiencies to maximize stockholder value.
  • 4Demonstrated progress in its lease-up properties, with improved occupancy rates.
  • 5Secured significant financing through a combination of stock offerings, notes payable, and lines of credit to support growth and operations.
  • 6Managed interest rate risk through the use of interest rate swaps.
  • 7The company's FFO (Funds From Operations) increased to $169.4 million, reflecting its operational performance.

Frequently Asked Questions

EXR's primary strategies for growth in 2012 included maximizing the performance of its existing properties through efficient management, acquiring new self-storage properties from strategic partners and third parties, and expanding its property management business. The company actively pursued acquisitions, completing 91 wholly-owned property acquisitions during the year.

In 2012, EXR significantly expanded its property portfolio. As of December 31, 2012, the company owned or had ownership interests in 729 operating properties, with 448 being wholly-owned and 281 in joint ventures. Additionally, it managed 181 third-party owned properties, bringing the total number of owned and/or managed properties to 910. This represents growth from the previous year's portfolio.

EXR's revenue growth in 2012 was primarily driven by two factors: the acquisition of 91 new properties and increases in occupancy and rental rates at its stabilized properties. Property rental revenue saw a significant increase due to these acquisitions and improved performance in existing locations, complemented by increased occupancy at lease-up properties.

EXR financed its operations and growth initiatives through a multi-faceted approach. This included generating cash flow from operations, utilizing its lines of credit, securing traditional secured mortgage financing, entering into joint ventures with third parties, and raising capital through additional equity offerings. The company also repaid some existing debt while taking on new debt to support its expansion.