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 Extra Space Storage Inc. Reports 2015 Fourth Quarter and Year-End Results
   Tuesday, February 23, 2016 4:01:00 PM ET

Extra Space Storage Inc. (EXR ) (the "Company"), a leading owner and operator of self-storage facilities in the United States, announced operating results for the three months and year ended December 31, 2015.

http://photos.prnewswire.com/prnvar/20141028/154912LOGO

Highlights for the three months ended December 31, 2015:

-- Achieved funds from operations attributable to common stockholders ("FFO") of $0.38 per diluted share. Excluding costs associated with acquisitions and non-cash interest, FFO as adjusted was $0.87 per diluted share, representing a 27.9% increase compared to the same period in 2014.

-- Increased same-store revenue by 9.6% and same-store net operating income ("NOI") by 11.5% compared to the same period in 2014.

-- Increased same-store occupancy by 150 basis points to 92.9% as of December 31, 2015, compared to 91.4% as of December 31, 2014.

-- Acquired SmartStop Self Storage, Inc. including 122 wholly-owned stores and the third-party management of 43 stores for a total of approximately $1.3 billion.

-- Acquired six additional operating stores and three stores at completion of construction for a total of approximately $75.4 million.

-- Paid a quarterly dividend of $0.59 per share.

Highlights for the year ended December 31, 2015:

-- Achieved FFO of $2.58 per diluted share. Excluding costs associated with acquisitions and non-cash interest, FFO as adjusted was $3.13 per diluted share, representing a 19.9% increase compared to the same period in 2014.

-- Increased same-store revenue by 9.3% and same-store NOI by 11.9% compared to the same period in 2014.

-- Acquired 166 operating stores and five stores at completion of construction for a total of approximately $1.75 billion.

-- Increased the third-party management portfolio by 88 stores to a total of 348 stores at year end.

Spencer F. Kirk, CEO of Extra Space Storage Inc., commented: "2015 was a record-breaking year for Extra Space in all operational categories including occupancy, revenue, NOI growth, and the expansion of our footprint by 24%. Notably, our performance and growth resulted in our inclusion in the S&P 500. Market conditions continue to be favorable for the storage sector in 2016, and we are poised to extract efficiencies from our size and scale."

FFO Per Share: The following table outlines the Company’s FFO and FFO as adjusted for the three months and year ended December 31, 2015 and 2014. The table also provides a reconciliation to GAAP net income attributable to common stockholders and earnings per diluted share for each period presented (amounts shown in thousands, except share and per share data -- unaudited)1:

                                                                                                             For the Three Months Ended December 31,                For the Year Ended December 31,
                                                                                                             2015                        2014                       2015                    2014
                                                                                                             (per share)                 (per share)                (per share)             (per share)
Net income attributable to common stockholders                                                               $    8,675 $       0.07     $   45,122 $       0.39    $ 189,474   $      1.56 $ 178,355   $      1.53
Impact of the difference in weighted average number of shares - diluted(2)                                              -                           (0.02 )                     (0.08)                  (0.08 )
Adjustments:
Real estate depreciation                                                                                     34,703     0.26             24,852     0.20            115,924     0.89        96,819      0.79
Amortization of intangibles                                                                                  4,408      0.03             2,800      0.02            11,094      0.09        12,394      0.10
(Gain) loss on real estate transactions and earnout from prior acquisitions                                  -          -                -          -               (1,501)     (0.01)      10,285      0.08
Unconsolidated joint venture real estate depreciation and amortization                                       1,066      0.01             1,091      0.01            4,233       0.03        4,395       0.04
Unconsolidated joint venture gain on sale of properties and purchase of partners’ interests                  -          -                (206)      -               (2,857)     (0.02)      (4,022)     (0.03)
Distributions paid on Series A Preferred Operating Partnership units                                         (1,271)    (0.01)           (1,437)    (0.01 )         (5,088)     (0.04)      (5,750)     (0.05)
Income allocated to Operating Partnership noncontrolling interests                                           3,070      0.02             4,360      0.03            20,064      0.16        17,530      0.14
FFO attributable to common stockholders                                                                      $  50,651  $       0.38     $   76,582 $      0.62     $ 331,343   $      2.58 $ 310,006   $      2.52
Adjustments:
Property casualty loss, net                                                                                  -          -                1,724      0.01            -           -           1,724       0.01
Non-cash interest expense related to amortization of discount on equity portion of exchangeable senior notes 1,112      0.01             679        -               3,310       0.03        2,683       0.02
Non-cash interest benefit related to out of market debt                                                      (363)      -                (729)      -               (2,410)     (0.02)      (3,079)     (0.02)
Acquisition related costs                                                                                    63,698     0.48             5,941      0.05            69,401      0.54        9,826       0.08
FFO as adjusted attributable to common stockholders                                                          $ 115,098  $           0.87 $   84,197 $      0.68     $ 401,644   $      3.13 $ 321,160   $      2.61
Weighted average number of shares - diluted(3)                                                               132,381,162                 123,217,554                128,391,862             123,009,720
(1)      Per share amounts may not recalculate due to rounding.
(2)      Adjustment to account for the difference between the number of shares used to calculate earnings per share and the number of shares used to calculate FFO per share. Earnings per share is calculated using the two-class method, which uses a lower number of shares than the calculation for FFO per share and FFO as adjusted per share, which are calculated assuming full redemption of all OP units as described in note (2).
(3)      Extra Space Storage LP (the "Operating Partnership") has outstanding preferred and common operating partnership units ("OP units"). These OP units can be redeemed for cash or, at the Company’s election, shares of the Company’s common stock. Redemption of all OP units for common stock has been assumed for purposes of calculating the weighted average number of shares -- diluted as presented above. The computation of weighted average number of shares -- diluted for FFO per share and FFO as adjusted per share also includes the effect of share-based compensation plans and shares related to the exchangeable senior notes using the treasury stock method.

Operating Results and Same-Store Performance: The following table outlines the Company’s same-store performance for the three months and year ended December 31, 2015 and 2014 (amounts shown in thousands, except store count data--unaudited):

                                                         For the Three Months Ended  Percent For the Year Ended    Percent
                                                         December 31,                Change  December 31,          Change
                                                         2015          2014                  2015       2014
Same-store rental and tenant reinsurance revenues        $ 151,761     $ 138,471     9.6%    $ 590,979  $ 540,664  9.3%
Same-store operating and tenant reinsurance expenses     41,702        39,802        4.8%    166,166    161,135    3.1%
Same-store net operating income                          $ 110,059     $   98,669    11.5%   $ 424,813  $ 379,529  11.9%
Non same-store rental and tenant reinsurance revenues    $   63,806    $   21,665    194.5%  $ 157,130  $   78,276 100.7%
Non same-store operating and tenant reinsurance expenses $   21,146    $     5,838   262.2%  $   50,832 $   21,708 134.2%
Total rental and tenant reinsurance revenues             $ 215,567     $ 160,136     34.6%   $ 748,109  $ 618,940  20.9%
Total operating and tenant reinsurance expenses          $   62,848    $   45,640    37.7%   $ 216,998  $ 182,843  18.7%
Same-store square foot occupancy as of quarter end       92.9%         91.4%                 92.9%      91.4%
Properties included in same-store                        503           503                   503        503

Same-store revenues for the three months and year ended December 31, 2015 increased due to gains in occupancy, higher rental rates for both new and existing customers and reduced customer discounts. Expenses were higher for the three months ended December 31, 2015 due to increases in tenant reinsurance expense, credit card merchant fees and property taxes. Increases in expenses were partially offset by decreases in utility expenses during the three months ended December 31, 2015.

Expenses were higher for the year ended December 31, 2015 due to increases in tenant reinsurance expense, credit card merchant fees and property taxes. Increases in expenses were partially offset by decreases in utility expenses and property insurance expense during the year ended December 31, 2015.

Major markets with revenue growth above the Company’s portfolio average for the year ended December 31, 2015 included Denver, Los Angeles, Orlando, Sacramento, San Francisco and Tampa/St. Petersburg. Major markets performing below the Company’s portfolio average included Chicago, Memphis, Philadelphia and Washington D.C./Baltimore.

Acquisition and Third-Party Management Activity: The following table outlines the acquisitions completed by the Company during the three months and year ended December 31, 2015 (dollars in thousands - unaudited):

                                     For the Three Months Ended   For the Year Ended
                                     December 31, 2015            December 31, 2015
                                     Stores        Purchase Price Stores Purchase Price
Operating Stores1                    128           $1,371,650     166    $1,701,742
Stores Purchased Upon Completion     3             23,708         5      46,108
Wholly Owned Total                   131           $1,395,358     171    $1,747,850
JV Stores Purchased Upon Completion2 1             16,100         2      21,529
Total                                132           $1,411,458     173    $1,769,379
1.     Purchase price includes $69.4 million in working capital associated with the acquisition of SmartStop Self Storage, Inc.
2.     Extra Space holds a 50% interest in a joint venture which acquired one store for $16.1 million, and holds a 10% interest in a joint venture which acquired one store for $5.4 million.

The following table outlines the Company’s 2016 year-to-date acquisitions and stores under contract (dollars in thousands - unaudited):

                                     Closed Through          Under Contract to       2016                     2017-18
                                     February 23, 2016       Close in 2016           Total Acquisitions       Acquisitions
                                     Stores   Purchase Price Stores   Purchase Price Stores    Purchase Price Stores Purchase Price
Operating Stores1                    15       $128,423       16       $165,035       31        $293,458       -      $    -
Stores Purchased Upon Completion     1        16,150         6        48,950         7         65,100         2      30,633
Wholly Owned Total                   16       $144,573       22       $213,985       38        $358,558       2      $30,633
JV Stores Purchased Upon Completion2 -        -              7        159,500        7         159,500        5      167,900
Total                                16       $144,573       29       $373,485       45        $518,058       7      $198,533
1. Includes the buyout of a joint venture partner’s interest in six stores on February 2, 2016 at the value of the JV partner’s interest (55% of total purchase price).
2. Extra Space holds a 10% interest in a joint venture with seven stores under contract totaling $75.4 million and anticipates a 25% interest in a proposed joint venture for five stores under contract totaling $252.0 million of acquisitions under contract.

The operating and other store acquisitions described above are subject to customary closing conditions and no assurance can be provided that these acquisitions will be completed on the terms described, or at all.

Property Management: As of December 31, 2015, the Company managed 348 stores for third-party owners. With an additional 253 stores owned and operated in joint ventures, the Company had a total of 601 stores under management. The Company continues to be the largest self-storage management company in the United States.

Balance Sheet: During the quarter, the Company did not sell any shares of common stock using its "at the market" ("ATM") equity program. At December 31, 2015 the Company had $369.2 million available for issuance under the existing equity distribution agreements.

As of December 31, 2015, the Company’s percentage of fixed-rate debt to total debt was 68.6%. The weighted average interest rates of the Company’s fixed and variable-rate debt were 3.6% and 2.1%, respectively. The combined weighted average interest rate was 3.1% with a weighted average maturity of approximately 4.9 years.

Dividends: On December 31, 2015, the Company paid a fourth quarter common stock dividend of $0.59 per share to stockholders of record at the close of business on December 15, 2015.

Outlook: The following table outlines the Company’s FFO estimates and annual assumptions for the year ending December 31, 2016:

                                                                      Ranges for 2016                        Notes
                                                                      Annual Assumptions
                                                                      Low                High
Funds from operations attributable to common stockholders             $             3.57 $              3.65
Funds from operations as adjusted attributable to common stockholders $             3.65 $              3.73
Same-store property revenue growth                                    6.50 %             7.50 %              Assumes a same-store pool of 564 stores and includes tenant reinsurance
Same-store property expense growth                                    3.00 %             4.00 %              Assumes a same-store pool of 564 stores and includes tenant reinsurance
Same-store property NOI growth                                        7.50 %             9.00 %              Assumes a same-store pool of 564 stores and includes tenant reinsurance
Weighted average one-month LIBOR                                      0.84 %             0.84 %
Net tenant reinsurance income                                         $   71,000,000     $   72,000,000
General and administrative expenses                                   $   74,000,000     $   75,000,000      Includes non-cash compensation expense of $7.25 million
Average monthly cash balance                                          $   20,000,000     $   20,000,000
Equity in earnings of real estate ventures                            $   12,000,000     $   13,000,000
Acquisition of operating stores                                       $ 530,000,000      $ 530,000,000
Acquisition of other stores upon completion of development            $   70,000,000     $   70,000,000
Interest expense                                                      $ 127,000,000      $ 128,500,000
Non-cash interest expense related to exchangeable senior  notes       $     5,000,000    $     5,000,000     Excluded from FFO as adjusted
Non-cash interest benefit related to out of market debt               $     1,000,000    $     1,000,000     Excluded from FFO as adjusted
Taxes associated with the Company’s taxable REIT  subsidiary          $   16,500,000     $   17,500,000
Acquisition related costs                                             $     6,000,000    $     6,000,000     Excluded from FFO as adjusted
Weighted average share count                                          134,400,000        134,400,000         Assumes redemption of all OP units for common stock

FFO estimates for the year are fully diluted for an estimated average number of shares and OP units outstanding during the year. The Company’s estimates are forward-looking and based on management’s view of current and future market conditions. The Company’s actual results may differ materially from these estimates.

Supplemental Financial Information: Supplemental unaudited financial information regarding the Company’s performance can be found on the Company’s website at www.extraspace.com. Click on the "Investor Relations" link on the home page, then on "Financials & Stock Info," then on "Quarterly Earnings" in the navigation menu. This supplemental information provides additional detail on items that include store occupancy and financial performance by portfolio and market, debt maturity schedules and performance of lease-up assets.

Conference Call: The Company will host a conference call at 1:00 p.m. Eastern Time on Wednesday, February 24, 2016, to discuss its financial results. To participate in the conference call, please dial 855-791-2026 or 631-485-4899 for international participants; conference passcode: 23605042. The conference call will also be available on the Company’s website at www.extraspace.com. To listen to a live broadcast, go to the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. A replay of the call will be available for 30 days on the Company’s website in the Investor Relations section.

A replay of the call will also be available by telephone, from 4:00 p.m. Eastern Time on February 24, 2016, until 11:59 p.m. Eastern Time on February 29, 2016. The replay dial-in numbers are 855-859-2056 or 404-537-3406 for international callers; conference passcode: 23605042.

Forward-Looking Statements: Certain information set forth in this release contains "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements include statements concerning the benefits of store acquisitions, favorable market conditions, our outlook and estimates for the year and other statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as "believes," "estimates," "expects," "may," "will," "should," "anticipates," or "intends," or the negative of such terms or other comparable terminology, or by discussions of strategy. We may also make additional forward-looking statements from time to time. All such subsequent forward-looking statements, whether written or oral, by us or on our behalf, are also expressly qualified by these cautionary statements. There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this release. Any forward-looking statements should be considered in light of the risks referenced in the "Risk Factors" section included in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Such factors include, but are not limited to:

-- adverse changes in general economic conditions, the real estate industry and the markets in which we operate;

-- failure to close pending acquisitions on expected terms, or at all;

-- the effect of competition from new and existing stores or other storage alternatives, which could cause rents and occupancy rates to decline;

-- difficulties in our ability to evaluate, finance, complete and integrate acquisitions and developments successfully and to lease up those stores, which could adversely affect our profitability;

-- potential liability for uninsured losses and environmental contamination;

-- the impact of the regulatory environment as well as national, state and local laws and regulations, including, without limitation, those governing real estate investment trusts ("REITs"), tenant reinsurance and other aspects of our business, which could adversely affect our results;

-- disruptions in credit and financial markets and resulting difficulties in raising capital or obtaining credit at reasonable rates or at all, which could impede our ability to grow;

-- the failure to effectively manage our growth and expansion into new markets or to successfully operate acquired properties and operations;

-- increased interest rates and operating costs;

-- reductions in asset valuations and related impairment charges;

-- the failure of our joint venture partners to fulfill their obligations to us or their pursuit of actions that are inconsistent with our objectives;

-- the failure to maintain our REIT status for federal income tax purposes;

-- economic uncertainty due to the impact of war or terrorism, which could adversely affect our business plan; and

-- difficulties in our ability to attract and retain qualified personnel and management members.

All forward-looking statements are based upon our current expectations and various assumptions. Our expectations, beliefs and projections are expressed in good faith and we believe there is a reasonable basis for them, but there can be no assurance that management’s expectations, beliefs and projections will result or be achieved. All forward-looking statements apply only as of the date made. We undertake no obligation to publicly update or revise forward-looking statements which may be made to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.

Definition of FFO: FFO provides relevant and meaningful information about the Company’s operating performance that is necessary, along with net income and cash flows, for an understanding of the Company’s operating results. The Company believes FFO is a meaningful disclosure as a supplement to net earnings. Net earnings assume that the values of real estate assets diminish predictably over time as reflected through depreciation and amortization expenses. The values of real estate assets fluctuate due to market conditions and the Company believes FFO more accurately reflects the value of the Company’s real estate assets. FFO is defined by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT") as net income computed in accordance with U.S. generally accepted accounting principles ("GAAP"), excluding gains or losses on sales of operating stores and impairment write downs of depreciable real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. The Company believes that to further understand the Company’s performance, FFO should be considered along with the reported net income and cash flows in accordance with GAAP, as presented in the Company’s consolidated financial statements. FFO should not be considered a replacement of net income computed in accordance with GAAP.

For informational purposes, the Company also presents FFO as adjusted which excludes non-recurring revenues and expenses, acquisition related costs and non-cash interest. Although the Company’s calculation of FFO as adjusted differs from NAREIT’s definition of FFO and may not be comparable to that of other REITs and real estate companies, the Company believes it provides a meaningful supplemental measure of operating performance. The Company believes that by excluding non-recurring revenues and expenses, the costs related to acquiring stores and non-cash interest charges, stockholders and potential investors are presented with an indicator of its operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. FFO as adjusted by the Company should not be considered a replacement of the NAREIT definition of FFO. The computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income as an indication of the Company’s performance, as an alternative to net cash flow from operating activities as a measure of liquidity, or as an indicator of the Company’s ability to make cash distributions.

Definition of Same-Store: The Company’s same-store pool for the periods presented consists of 503 stores that are wholly-owned and operated and that were stabilized by the first day of the earliest calendar year presented. The Company considers a store to be stabilized once it has been open for three years or has sustained average square foot occupancy of 80.0% or more for one calendar year. Same-store results provide information relating to store operations without the effects of acquisitions or completed developments and should not be used as a basis for future same-store performance or for the performance of the Company’s stores as a whole.

About Extra Space Storage Inc.: Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT. As of December 31, 2015, the Company owned and/or operated 1,347 self-storage stores in 36 states, Washington, D.C. and Puerto Rico. The Company’s stores comprise approximately 900,000 units and approximately 101 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.

Extra Space Storage Inc.
Consolidated Balance Sheets
(In thousands, except share data)
                                                                                                                                                                                 December 31, 2015          December 31, 2014
                                                                                                                                                                                 (Unaudited)
Assets:
Real estate assets, net                                                                                                                                                          $                5,689,309 $                4,135,696
Investments in unconsolidated real estate ventures                                                                                                                               103,007                    85,711
Cash and cash equivalents                                                                                                                                                        75,799                     47,663
Restricted cash                                                                                                                                                                  30,738                     25,245
Receivables from related parties and affiliated real estate joint ventures                                                                                                       2,205                      11,778
Other assets, net                                                                                                                                                                170,349                    75,894
Total assets                                                                                                                                                                     $                6,071,407 $                4,381,987
Liabilities, Noncontrolling Interests and Equity:
Notes payable, net                                                                                                                                                               $                2,758,567 $                  1,858,981
Exchangeable senior notes, net                                                                                                                                                   623,863                    235,724
Notes payable to trusts, net                                                                                                                                                     117,191                    117,059
Lines of credit                                                                                                                                                                  36,000                     138,000
Accounts payable and accrued expenses                                                                                                                                            82,693                     65,521
Other liabilities                                                                                                                                                                80,489                     54,719
Total liabilities                                                                                                                                                                3,698,803                  2,470,004
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding                                                                                  -                          -
Common stock, $0.01 par value, 500,000,000 shares authorized, 124,119,531 and 116,360,239 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively 1,241                      1,163
Additional paid-in capital                                                                                                                                                       2,431,754                  1,995,484
Accumulated other comprehensive loss                                                                                                                                             (6,352)                    (1,484)
Accumulated deficit                                                                                                                                                              (337,566)                  (257,738)
Total Extra Space Storage Inc. stockholders’ equity                                                                                                                              2,089,077                  1,737,425
Noncontrolling interest represented by Preferred Operating Partnership units, net of $120,230 notes receivable                                                                   80,531                     81,152
Noncontrolling interests in Operating Partnership                                                                                                                                202,834                    92,422
Other noncontrolling interests                                                                                                                                                   162                        984
Total noncontrolling interests and equity                                                                                                                                        2,372,604                  1,911,983
Total liabilities, noncontrolling interests and equity                                                                                                                           $                6,071,407 $                  4,381,987
Consolidated Statement of Operations for the three months and year ended December 31, 2015 (unaudited) and 2014
(In thousands, except share and per share data)
                                                                                                                                                 For the Three Months Ended December 31,            For the Year Ended December 31,
                                                                                                                                                 2015                        2014                   2015                   2014
                                                                                                                                                 (Unaudited)                 (Unaudited)            (Unaudited)
Revenues:
Property rental                                                                                                                                  $                195,672    $         144,420      $           676,138    $         559,868
Tenant reinsurance                                                                                                                               19,895                      15,716                 71,971                 59,072
Management fees and other income                                                                                                                 10,192                      5,048                  34,161                 28,215
Total revenues                                                                                                                                   225,759                     165,184                782,270                647,155
Expenses:
Property operations                                                                                                                              59,634                      43,346                 203,965                172,416
Tenant reinsurance                                                                                                                               3,214                       2,294                  13,033                 10,427
Acquisition related costs                                                                                                                        63,698                      5,941                  69,401                 9,826
General and administrative                                                                                                                       18,138                      14,506                 67,758                 60,942
Depreciation and amortization                                                                                                                    40,766                      29,181                 133,457                115,076
Total expenses                                                                                                                                   185,450                     95,268                 487,614                368,687
Income from operations                                                                                                                           40,309                      69,916                 294,656                278,468
Gain (loss) on real estate transactions and earnout from prior acquisitions                                                                      -                           -                      1,501                  (10,285)
Property casualty loss, net                                                                                                                      -                           (1,724)                -                      (1,724)
Interest expense                                                                                                                                 (30,629)                    (20,393)               (95,682)               (81,330)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes                                   (1,112)                     (679)                  (3,310)                (2,683)
Interest income                                                                                                                                  1,821                       440                    3,461                  1,607
Interest income on note receivable from Preferred Operating Partnership unit holder                                                              1,212                       1,212                  4,850                  4,850
Income before equity in earnings of unconsolidated real estate ventures and income tax expense                                                   11,601                      48,772                 205,476                188,903
Equity in earnings of unconsolidated real estate ventures                                                                                        3,297                       2,741                  12,351                 10,541
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners’ interests -                           206                    2,857                  4,022
Income tax expense                                                                                                                               (3,154)                     (2,233)                (11,148)               (7,570)
Net income                                                                                                                                       11,744                      49,486                 209,536                195,896
Net income allocated to Preferred Operating Partnership noncontrolling interests                                                                 (2,673)                     (2,710)                (11,718)               (10,991)
Net income allocated to Operating Partnership and other noncontrolling interests                                                                 (396)                       (1,654)                (8,344)                (6,550)
Net income attributable to common stockholders                                                                                                   $                    8,675  $           45,122     $           189,474    $         178,355
Earnings per common share
Basic                                                                                                                                            $                      0.07 $               0.39   $                 1.58 $               1.54
Diluted                                                                                                                                          $                      0.07 $               0.39   $                 1.56 $               1.53
Weighted average number of shares
Basic                                                                                                                                            123,531,844                 116,032,453            119,816,743            115,713,807
Diluted                                                                                                                                          131,021,387                 121,652,351            126,918,869            121,435,267
Reconciliation of the Range of Estimated Fully Diluted Earnings Per Share to Estimated Fully Diluted FFO Per Share -- for the Three Months
Ending March 31, 2016 and Year Ending December 31, 2016 -- Unaudited
                                                                                                             For the Three Months Ending              For the Year Ending
                                                                                                             March 31, 2016                           December 31, 2016
                                                                                                             Low End              High End            Low End              High End
Net income attributable to common stockholders per diluted share                                             $            0.47    $           0.48    $          2.21      $           2.29
Income allocated to noncontrolling interest - Preferred Operating Partnership and Operating Partnership      0.05                 0.05                0.20                 0.20
Fixed component of income allocated to non-controlling interest - Preferred Operating Partnership            (0.01)               (0.01)              (0.04)               (0.04)
Net income attributable to common stockholders for diluted computations                                      0.51                 0.52                2.37                 2.45
Adjustments:
Real estate depreciation                                                                                     0.27                 0.27                1.08                 1.08
Amortization of intangibles                                                                                  0.03                 0.03                0.08                 0.08
Unconsolidated joint venture real estate depreciation and amortization                                       0.01                 0.01                0.04                 0.04
Funds from operations attributable to common stockholders                                                    $            0.82    $           0.83    $          3.57      $           3.65
Adjustments:
Non-cash interest related to out of market debt                                                              -                    -                   (0.01 )              (0.01 )
Non-cash interest expense related to amortization of discount on equity portion of exchangeable senior notes 0.01                 0.01                0.04                 0.04
Acquisition related costs                                                                                    0.01                 0.01                0.05                 0.05
Funds from operations as adjusted attributable to common stockholders                                        $            0.84    $           0.85    $          3.65      $           3.73

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/extra-space-storage-inc-reports-2015-fourth-quarter-and-year-end-results-300224877.html

SOURCE Extra Space Storage Inc.

http://rt.prnewswire.com/rt.gif?NewsItemId=LA30009&Transmission_Id=201602231601PR_NEWS_USPR_____LA30009&DateId=20160223



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