8-K/AEarnings & ResultsAcquisitions & DispositionsExhibits & Filings

Extra Space Storage Inc. 8-K/A Report, Acquisition Completed (Sep 27, 2005)

Filed September 27, 2005For Securities:EXR

Summary

This 8-K/A filing from Extra Space Storage Inc. (EXR), filed on September 27, 2005, serves as an amendment to a previous filing, primarily to include pro forma financial information and financial statements related to a significant acquisition. The core of this report details the completion of the acquisition of the Storage USA self-storage business on July 14, 2005. This transaction involved acquiring 61 wholly-owned properties, equity interests in 54 joint venture properties, and assuming management of 84 franchise and managed properties. Furthermore, the filing outlines a complex joint venture structure involving 259 properties contributed to five separate limited liability companies co-owned with Prudential. This section details the ownership percentages, preferred returns, and management agreements for these joint ventures. The pro forma financial statements presented offer investors a view of the company's financial position and operational results as if the acquisition had occurred at an earlier date, providing a basis for evaluating the impact of this transformative transaction.

Key Highlights

  • 1Acquisition of the Storage USA self-storage business closed on July 14, 2005.
  • 2Acquired 61 wholly-owned self-storage properties, equity in 54 joint venture properties, and assumed management of 84 franchise/managed properties.
  • 3Established five joint ventures with Prudential involving 259 properties, detailing ownership structures and management agreements.
  • 4Pro forma financial statements are provided to reflect the combined entity's financial position and results of operations.
  • 5Report includes Funds from Operations (FFO) calculations, showing a pro forma FFO per share of $0.40 for the six months ended June 30, 2005, compared to $0.29 historically.
  • 6The acquisition involved significant financing transactions, detailed in the pro forma balance sheet and statements of operations.
  • 7The filing includes detailed combined financial statements for the Storage USA Carve-out Company.

Frequently Asked Questions

This Form 8-K/A filing was primarily to provide the necessary pro forma financial information and financial statements related to the acquisition of the Storage USA self-storage business, which had been previously announced.

Extra Space Storage Inc. acquired 61 wholly-owned self-storage properties, the equity interest in 54 joint venture properties, and assumed the management of 84 franchise and managed properties as part of the Storage USA transaction.

259 of the acquired self-storage properties were contributed to five separate limited liability companies. These entities are co-owned by subsidiaries of Extra Space Storage and Prudential, with specific agreements governing their operations and management.

Funds from Operations (FFO) is a non-GAAP measure used by REITs to provide a meaningful indication of operating performance. It excludes gains/losses from property sales, and includes depreciation and amortization. Extra Space Storage presents FFO alongside net income and cash flows to give investors a clearer understanding of operational results, especially after significant transactions like the Storage USA acquisition.