STATE OF THE COMPANY REITWeek 2016
PSA SSS CUBE PSA SSS CUBE 2016 Q1 SAME-STORE PERFORMANCE 14.0% 12.0% 12.3% 12.9% 10.0% 8.0% 9.1% 8.4% 10.4% 9.9% 6.0% 6.5% 6.7% 4.0% 2.0% 0.0% 1.9% 0.8% -1.0% -2.0% -2.6% -4.0% REVENUE EXPENSES NOI *Data as of March 31, 2016 as reported in public filings
PSA SSS PSA SSS CUBE CUBE 41 QUARTERS OF AVERAGE SAME-STORE OUTPERFORMANCE 8.0% 7.0% 6.0% 6.7% 5.0% 4.0% 3.0% 4.9% 3.4% 4.1% 3.6% 4.6% 5.1% 4.2% 2.0% 2.1% 2.4% 1.0% 1.2% 0.0% REVENUE 0.5% EXPENSES NOI *Data as of March 31, 2016 as reported in public filings
PSA SSS CUBE CUBE Q1 DOUBLE-DIGIT AFFO PER SHARE GROWTH 24.0% 24.6% 20.0% 16.0% 12.0% 13.9% 11.9% 14.3% 8.0% 4.0% 0.0% *Data as of March 31, 2016 as reported in public filings FFO as adjusted growth per share
SIGNIFICANT DIVIDEND GROWTH Quarterly Dividend Per Share $0.90 $0.80 32.2% $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 42.9% 25.0% 60.0% 17.5% 25.5% 5-year total increase of 680.0% $0.10 $0.00 *As reported in public filings
EXR BEST-IN-CLASS REIT PERFORMANCE Total Returns of Public REITs Three-Year Return Five-Year Return Ten-Year Return 1. CyrusOne Inc. (CONE) 152.9% 1. CoreSite Realty (COR) 437.1% 1. Extra Space Storage (EXR) 841.5% 2. CoreSite Realty (COR) 152.9% 2. Extra Space Storage (EXR) 407.2% 2. Digital Realty Trust (DLR) 490.4% 3. Extra Space Storage (EXR) 136.5% 3. Equinix REIT (EQN2) 308.4% 3. National Health Invrs (NHI) 438.7% 4. CubeSmart (CUBE) 106.8% 4. CubeSmart (CUBE) 231.5% 4. Omega Healthcare (OHI) 410.9% 5. Equity LifeStyle (ELS) 96.5% 5. Sovran Self Storage (SSS) 209.2% 5. Sun Communities (SUI) 381.6% *Results from KeyBanc Leaderboard as of May 27, 2016
A HIGH-GROWTH SECTOR Median Projected FFO Growth 14.0% 12.0% 10.0% 8.0% 12.5% 10.4% 11.4% 6.0% 4.0% 2.0% 0.0% 6.5% 6.6% 6.8% 5.5% 6.0% 6.2% 4.6% 4.0% 2.3% Office Multi-family Storage Industrial Triple Net Malls/Shopping Centers 2016 2017 *Data from KeyBanc Leaderboard as of May 27, 2016.
NATIONAL FOOTPRINT 1,371 PROPERTIES 769 WHOLLY-OWNED 56% JOINT 249 VENTURE JOINT VENTURE 18% MANAGED 353 MANAGED 26% *As of March 31, 2016
DIVERSIFIED PORTFOLIO Northwest 15 1% Northeast 222 16% California 292 21% Mtn West 127 9% Midwest 146 11% Southeast 150 11% Mid-Atlantic 141 10% Core Market Secondary Market Hawaii 11 1% Texas 131 10% Florida & P.R. 136 10% No Presence *As of March 31, 2016
Atlanta, GA SMARTSTOP INTEGRATION
Hawthorne, CA SMARTSTOP INTEGRATION
SMARTSTOP INTEGRATION Before After
SMARTSTOP OCCUPANCY UPDATE 96.0% 94.0% 93.6% 93.7% 92.0% 90.0% 88.0% 630 bps Starting Delta 87.3% 360 bps Current Delta 90.1% 86.0% 84.0% 82.0% 09-2015 10-2015 11-2015 12-2015 01-2016 02-2016 03-2016 04-2016 05-2016 EXR SmartStop *Occupancy for the common markets same-store pool as of May 31, 2016.
OPPORTUNITY FOR CONSOLIDATION 6.9% 4.8% 2.2% ~35.0% 2.1% U.S. Market Share by Square Footage Non-REIT Non-Institutional Quality Properties Non-REIT Institutional Quality Properties 0.8% 1.8% 46.4% *REIT data from public filings as of March 31, 2016. U-Haul and total U.S. storage square footage per the 2016 Self-Storage Almanac.
INSTITUTIONAL PURPOSE-BUILT STORES San Antonio, TX
Houston, TX NON-INSTITUTIONAL QUALITY STORES
CONSISTENT GROWTH 1,500 Extra Space Storage Branded Stores 1,400 1,300 1,200 1,347 1,371 1,100 1,000 1,029 1,088 900 800 700 600 882 910 820 766 694 2008 2009 2010 2011 2012 2013 2014 2015 2016 *Data as of March 31, 2016 as reported in public filings
ROBUST ACQUISITION ACTIVITY $2,000 $1,800 $1,600 $1,400 $1,200 $1,000 Annual Acquisition Volume ($ in millions) $1,769 2 $21 - JV 171 Stores $800 $600 $400 $200 $0 $701 $586 91 Stores 78 Stores $531 $712 2012 2013 2014 2015 2016 YTD Wholly Owned 51 Stores Joint Venture 9 49 Stores $191 - JV *As of May 2, 2016. Acquisitions in 2016 include closings YTD and stores under contract to close in 2016. JV s considered at purchase price.
*As of May 2, 2016. Stores are included in projected close totals once they are under contract. CERTIFICATE OF OCCUPANCY ACTIVITY Wholly-owned Joint Venture Stores Price Stores Price EXR Inv. 2013 Closed 1 $13.5M - - - 2014 Closed 2 $29.3M - - - 2015 Closed 5 $46.1M 2 $21.5M $8.6M 2016 Closed 3 $37.7M 3 $86.5M $24.4M 2016 To Close 4 $27.5M 6 $105.0M $20.0M 2017 To Close 3 $45.2M 2 $137.0M $34.3M 2018 To Close 1 $9.3M 1 $8.8M $0.9M
SSS PSA SSS CUBE THIRD-PARTY MANAGEMENT GROWTH 400 Total Stores Managed for Third-Party Owners 350 300 348 353 250 200 250 260 150 100 103 185 181 133 125 139 162 156 50 0 9 15 22 17 21 16 2011 2012 2013 2014 2015 2016 SSS CUBE EXR *Data as of March 31, 2016 as reported in public filings.
INDUSTRY TRENDS Constrained new supply All-time high occupancy Pricing power and rent rate growth Growing per capita usage of storage Ownership and management consolidation Growing technology advantage of REITs
YOY STREET RATE GROWTH RECORD OCCUPANCY LEADS TO PRICING POWER 14.0% 400 12.0% 10.0% 8.0% Stores 260 Stores 334 Stores 281 Stores 350 300 250 200 6.0% Stores 150 4.0% 2.0% 89 Stores 89 Stores 100 50 0.0% <90% 90% to 93% 93% to 95% 95% to 97% >97% OCCUPANCY *Data for mature pool of 1053 stores as of May 31, 2016 0
OCCUPANCY TRENDS 95.0% 94.0% 93.5% 94.2% 93.0% 92.0% 91.0% 90.0% 89.0% 3.2% Max Delta 91.5% 1.7% YE Delta 88.0% 87.0% 86.0% 85.0% 84.0% *Data for Mature pool of 1,005 stores 2014 2015 2016
CBRE Data NATIONAL NEW SUPPLY 2016 600 stores 2017 900 stores Source: CBRE, Chris Sonne - State of Affairs in Self Storage UBS 2016 Annual Self Storage Summit, January 13, 2016
*Only considers storage facilities with 50,000 NRSF or greater. NEW SUPPLY COMPETING WITH EXR CoStar Data Within 3 miles of an EXR store: 45 new facilities built in 2014-2016 YTD 46 new facilities under construction 26 new facilities are proposed
STRONG RENTAL ACTIVITY 50 Average Monthly Rentals Per Store 45 40 35 30 25 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for 607 Core pool. Average: 2008-2014 2015 2016
STABLE VACATES 50 Average Monthly Vacates Per Store 45 40 35 30 25 20 15 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for 607 Core pool. Average: 2008-2014 2015 2016
DISCOUNT REDUCTIONS 100% Percentage of New Customers Receiving a Discount 90% 80% 70% 60% 50% 40% 30% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec *Data for Mature pool of 1,005 stores 2014 2015 2016
INCREASING LENGTH OF STAY 65.0% 60.0% 57.7% 58.2% 60.1% 55.0% 50.0% % of customers >= 12mos 45.0% 40.0% 38.7% 40.3% 42.0% 35.0% % of customers >= 24mos 30.0% *Data measured mid-month to reduce volatility. 607 Core stores.
COMMITMENT TO TECHNOLOGY OPTIMIZATION Internet 29 FTE s BRANDING Call Center 88 FTE s Revenue Mgt. 11 FTE s DATA/ANALYTICS
COMMITMENT TO MOBILE THE AVERAGE AMERICAN LOOKS AT THEIR PHONE 120 TIMES A DAY
MANAGEMENT DEPTH Scott Stubbs CFO 16 years Spencer Kirk CEO 18 years Joe Margolis CIO 11 years* Gwyn McNeal CLO 11 years James Overturf CMO 18 years *Includes Mr. Margolis time as Director on Extra Space Storage s board. Samrat Sondhi COO 11 years Ken Woolley Executive Chairman 39 years
Interest Coverage Ratio: 4.65 Fixed Charge Ratio: 3.21 Net Debt/EBITDA: 6.33 Fixed Debt %: 77.8% SOLID BALANCE SHEET 1,400 1,200 1,000 800 600 400 200-151 282 218 Debt Maturities 384 in millions 1,390 379 639 111 67 120 Weighted Average Interest Rate: 3.2% Average Maturity: 4.8 years Total Revolving Capacity: $355 million ATM Capacity: $400 million *For the quarter ending March 31, 2016. 7 6 5 Coverage Ratios 4.65 4 3.21 2.49 3 2 2.1 2011 2012 2013 2014 2015 2016 Interest Coverage Ratio Fixed-Charge Coverage Ratio
PROACTIVE SITE REDEVELOPMENT Alexandria, VA - before
Alexandria, VA - after PROACTIVE SITE REDEVELOPMENT
Richmond, CA - before PROACTIVE SITE REDEVELOPMENT 36
Richmond, CA - after PROACTIVE SITE REDEVELOPMENT 37
Manhattan, NY CERTIFICATE OF OCCUPANCY STORES
Denver, CO CERTIFICATE OF OCCUPANCY STORES