8-KAcquisitions & DispositionsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Acquisition Completed (Jul 9, 2012)

Filed July 9, 2012For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) announced on July 9, 2012, the completion of its acquisition of the remaining 94.9% equity interest in its joint venture, ESS PRISA III LLC, from Prudential Real Estate Investors (PREI). This transaction, which closed on July 2, 2012, results in Extra Space Storage gaining full ownership of the joint venture. The total consideration for PREI's stake was approximately $300.0 million, composed of $162.0 million in cash and the assumption of a $145.0 million loan, with $138.0 million attributable to the acquired interest. This acquisition significantly consolidates the company's control over its assets and is expected to be funded through existing cash and new debt facilities, with the existing loan maturing in August 2012 requiring repayment or refinancing. Investors should note that while the transaction is complete, the detailed financial statements and pro forma information for the acquired business are yet to be filed. This will provide a clearer picture of the financial impact and operational integration of the former joint venture into Extra Space Storage's portfolio.

Key Highlights

  • 1Extra Space Storage (EXR) acquired the remaining 94.9% equity interest in its joint venture, ESS PRISA III LLC, from Prudential Real Estate Investors (PREI).
  • 2The transaction was completed on July 2, 2012, giving EXR full ownership of the joint venture.
  • 3The total acquisition cost was approximately $300.0 million.
  • 4The payment structure included $162.0 million in cash and the assumption of a $145.0 million loan (with $138.0 million related to the acquired interest).
  • 5The assumed loan matures in August 2012 and will be repaid using existing cash and proceeds from new loans.
  • 6The company has committed to filing the necessary financial statements and pro forma information for the acquired business via amendment within 71 days.
  • 7This move consolidates control over previously jointly owned assets.

Frequently Asked Questions

This filing formally announces the completion of EXR's acquisition of the remaining 94.9% interest in its joint venture, ESS PRISA III LLC, from Prudential Real Estate Investors (PREI). This means EXR now has full ownership and control of the assets previously held in this joint venture.

The total cost for PREI's stake was approximately $300.0 million. This was comprised of $162.0 million in cash and the assumption of a $145.0 million loan, of which $138.0 million directly relates to the acquired interest. The company intends to use existing cash and proceeds from new loans to address the assumed loan, which matures in August 2012.

The filing states that financial statements and pro forma financial information for the acquired joint venture will be filed by amendment as soon as practicable, but no later than 71 days from the report date (July 9, 2012). This means investors should expect to see this detailed information filed by early September 2012.