SALT LAKE CITY, April 30, 2024 /PRNewswire/ -- Extra Space Storage Inc. (NYSE:EXR) (the "Company"), a leading owner and operator of self-storage facilities in the United States and a constituent of the S&P 500, announced operating results for the three months ended March 31, 2024. Highlights for the three months ended March 31, 2024: Achieved net income attributable to common stockholders of $1.01 per diluted share, representing a 30.8% decrease compared to the same period in the prior year primarily due to non-cash interest and amortization of intangibles related to the Company's 2023 merger (the "Life Storage Merger") with Life Storage, Inc. ("Life Storage" or "LSI"). Achieved funds from operations attributable to common stockholders and unit holders ("FFO") of $1.87 per diluted share. FFO, excluding adjustments ("Core FFO"), was $1.96 per diluted share, representing a 3.0% decrease compared to the same period in the prior year. Increased same-store revenue by 1.0% and same-store net operating income ("NOI") decreased by (0.5)% compared to the same period in the prior year. Reported ending same-store occupancy of 93.2% as of March 31, 2024, compared to 92.7% as of March 31, 2023. The Company acquired five operating stores and one store at completion of construction ("Certificate of Occupancy stores" or "C of O stores") for a total cost of approximately $35.1 million. In conjunction with a joint venture partner, completed one development for a total cost of approximately $20.4 million, of which the Company invested $19.4 million. Originated $164.3 million in mortgage and mezzanine bridge loans. Added 97 stores (72 stores net) to the Company's third-party management platform. As of March 31, 2024, the Company managed 1,409 stores for third parties and 472 stores in unconsolidated joint ventures, for a total of 1,881 managed stores. Paid a quarterly dividend of $1.62 per share. Joe Margolis, CEO of Extra Space Storage Inc., commented: "We achieved positive year-over-year occupancy growth in the Extra Space and Life Storage same-store pools.  We have also continued to realize G&A savings and to expand our bridge lending and third party management programs.  Rental activity has been strong year to date and vacates remain muted, which positions us well to maximize revenue during the 2024 leasing season." FFO Per Share: The following table (unaudited) outlines the Company's FFO and Core FFO for the three months ended March 31, 2024 and 2023.  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): For the Three Months Ended  March 31, 2024 2023 (per share)1 (per share)1 Net income attributable to common stockholders $   213,112 $       1.01 $   196,304 $       1.46 Impact of the difference in weighted average number of shares – diluted2 (0.05) (0.09) Adjustments: Real estate depreciation 154,372 0.70 71,248 0.50 Amortization of intangibles 29,284 0.12 4,170 0.03 Unconsolidated joint venture real estate depreciation and amortization 7,840 0.04 4,939 0.03 Distributions paid on Series A Preferred Operating Partnership units — — (159) — Income allocated to Operating Partnership and other noncontrolling interests 10,962 0.05 12,574 0.09 FFO $   415,570 $       1.87 $   289,076 $       2.02 Adjustments: Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes 10,705 0.05 — — Amortization of other intangibles related to the Life Storage Merger, net of tax benefit 7,440 0.04 — — CORE FFO $   433,715 $       1.96 $   289,076 $       2.02 Weighted average number of shares – diluted3 221,737,606 143,357,961 (1) Per share amounts may not recalculate due to rounding. (2) The 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 Core FFO per share, which are calculated assuming full redemption of all OP units as described in note (3). (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 Core FFO per share also includes the effect of share-based compensation plans. Operating Results and Same-Store Performance: The following table (unaudited) outlines the Company's same-store performance for the three months ended March 31, 2024 and 2023 (amounts shown in thousands, except store count data)1: For the Three MonthsEnded March 31, Percent 2024 2023 Change Same-store property revenues2 Net rental income $   398,792 $   395,259 0.9 % Other income 15,865 15,320 3.6 % Total same-store revenues $   414,657 $   410,579 1.0 % Same-store operating expenses2 Payroll and benefits $      24,506 $      22,526 8.8 % Marketing 8,853 7,173 23.4 % Office expense3 13,415 13,057 2.7 % Property operating expense4 10,287 11,012 (6.6) % Repairs and maintenance 7,470 7,085 5.4 % Property taxes 38,057 37,416 1.7 % Insurance 5,262 3,921 34.2 % Total same-store operating expenses $   107,850 $   102,190 5.5 % Same-store net operating income2 $   306,807 $   308,389 (0.5) % Same-store square foot occupancy as of quarter end 93.2 % 92.7 % Average same-store square foot occupancy 93.1 % 92.8 % Properties included in same-store5 1,078 1,078 (1) A reconciliation of net income to same-store net operating income is provided later in this release, entitled "Reconciliation of GAAP Net Income to Total Same-Store Net Operating Income." (2) Same-store revenues, operating expenses and net operating income do not include tenant reinsurance revenue or expense. (3) Includes general office expenses, computer, bank fees, and credit card merchant fees. (4) Includes utilities and miscellaneous other store expenses. (5) On January 1, 2024 the Company updated the property count of the same-store pool from 913 to 1,078 stores.   Details related to the same-store performance of stores by metropolitan statistical area ("MSA") for the three months ended March 31, 2024 and 2023 are provided in the supplemental financial information published on the Company's Investor Relations website at https://ir.extraspace.com/. Investment and Property Management Activity: The following table (unaudited) outlines the Company's acquisitions and developments that are closed, completed or under agreement (dollars in thousands).  Closed/Completed throughMarch 31, 2024 Closed/Completed Subsequent to March 31, 2024 Scheduled to Still Close/Completein 2024 Total 2024 To Close/Completein 2025 Wholly-Owned Investment Stores Price Stores Price Stores Price Stores Price Stores Price Operating Stores 5 $     25,150 1 $    8,500 1 $   6,700 7 $    40,350 — $        — C of O and Development Stores1 1 9,923 1 12,448 2 25,166 4 47,537 — — EXR Investment in Wholly-Owned Stores 6 35,073 2 20,948 3 31,866 11 87,887 — —