8-KMaterial Agreements

Extra Space Storage Inc. 8-K Report, Material Agreement (Dec 14, 2006)

Filed December 14, 2006For Securities:EXR

Summary

This 8-K filing by Extra Space Storage Inc. (EXR) reports a significant expansion through the acquisition of 13 self-storage facilities from entities affiliated with AAAAA Rent-A-Space. The deal, valued at approximately $150.2 million in cash, includes the assumption of $19 million in debt and will add about 1.04 million square feet of net rentable space across the Bay Area of Northern California and Hawaii. This strategic acquisition is expected to close in the first quarter of 2007, subject to customary closing conditions and due diligence. Investors should note the material impact this transaction could have on Extra Space's market presence, revenue, and operational scale. The company has made a substantial deposit, indicating strong commitment to this growth initiative.

Key Highlights

  • 1Extra Space Storage Inc. is acquiring 13 self-storage facilities.
  • 2The acquisition involves properties in the Bay Area (11 facilities) and Hawaii (2 facilities).
  • 3The total purchase price is approximately $150.2 million in cash.
  • 4The deal includes the assumption of approximately $19 million in third-party debt.
  • 5The acquired properties comprise roughly 14,700 units and 1.04 million square feet of net rentable space.
  • 6A deposit of $14.9 million has been made, signifying the company's commitment.
  • 7The acquisition is expected to close in the first quarter of 2007, contingent on closing conditions.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report Extra Space Storage Inc.'s entry into a material definitive agreement to acquire 13 self-storage facilities.

The total purchase price for the 13 facilities is approximately $150.2 million in cash, which includes the assumption of approximately $19 million of third-party debt.

Eleven of the facilities are located in the Bay Area of Northern California, and two are in Hawaii. Collectively, they contain approximately 14,700 units and about 1.04 million square feet of net rentable space.

The acquisition is currently expected to close in the first quarter of 2007, subject to the satisfaction of certain closing conditions, including satisfactory due diligence and obtaining necessary consents.