8-KOther EventsExhibits & Filings

Extra Space Storage Inc. 8-K Report, Corporate Update (Jun 11, 2014)

Filed June 11, 2014For Securities:EXR

Summary

Extra Space Storage Inc. (EXR) filed an 8-K on June 11, 2014, to disclose significant property acquisitions completed and probable since the end of fiscal year 2013. The company has acquired 28 properties for approximately $331.0 million and has four additional properties likely to be acquired for about $38.0 million. These acquisitions, while individually insignificant, are material in aggregate, necessitating the disclosure of financial information related to the Mini Price Storage portfolio, which represents a majority of these transactions. The filing includes audited financial statements of revenues and certain operating expenses for the Mini Price Storage properties acquired on January 7, 2014. Additionally, pro forma financial statements are provided, reflecting the impact of the Mini Price Storage acquisition on the company's balance sheet as of March 31, 2014, and its statement of operations for the three months ended March 31, 2014, and the full year ended December 31, 2013. Investors should note that the probable acquisitions are contingent on due diligence and closing conditions.

Key Highlights

  • 1Acquisition of 28 properties for approximately $331.0 million completed since year-end 2013.
  • 2Four additional properties are probable acquisitions, valued at approximately $38.0 million.
  • 3The aggregate value of these acquisitions is considered significant by the SEC, triggering additional financial disclosures.
  • 4Key disclosure includes audited statements of revenues and certain operating expenses for properties acquired from Mini Price Storage.
  • 5Pro forma financial statements are provided to reflect the impact of the Mini Price Storage acquisition.
  • 6These statements include a pro forma balance sheet as of March 31, 2014, and pro forma statements of operations for Q1 2014 and FY 2013.
  • 7Probable acquisitions are subject to standard closing conditions and due diligence, with no assurance of completion.

Frequently Asked Questions

This 8-K filing is primarily to disclose significant property acquisitions completed and probable since the end of 2013. While individually these acquisitions were not material enough to require separate reporting, their aggregate value made them significant, necessitating the disclosure.

The filing includes audited statements of revenues and certain operating expenses for the properties acquired from Mini Price Storage, which represent a majority of the aggregate acquisitions. Unaudited pro forma condensed consolidated financial statements are also provided to show the financial impact of these acquisitions.

No, the probable acquisitions are subject to the satisfactory completion of due diligence and other closing conditions. There is no assurance that these conditions will be met or that the acquisitions will be completed on the terms described.

The company reported approximately $331.0 million for 28 completed property acquisitions and an additional $38.0 million for four probable property acquisitions.