Extra Space Storage Inc.

“As of December 31, 2025, we owned and/or operated 4,281 stores in 43 states, and Washington, D.C., comprising approximately 330.4 million square feet of net rentable space in approximately 2.9 million units.”

“We are a fully integrated, self-administered and self-managed REIT that owns, operates, manages, acquires, develops and redevelops self-storage properties ("stores") and provides lending to owners of stores located throughout the United States.”

“The Company’s segments are comprised of two reportable segments: (1) self-storage operations and (2) tenant reinsurance.”

“We derive substantially all of our revenues from our two segments: self-storage operations and tenant reinsurance.”

“As of December 31, 2025, we managed 1,856 stores for third party owners.”

“As of December 31, 2025, the total balance of bridge loans receivable was $1.5 billion.”

“A wholly-owned, consolidated subsidiary fully reinsures such policies and thereby assumes all risk of losses under these policies and receives reinsurance premiums, substantially equal to the premiums collected from our tenants, from the non-affiliated insurance company.”

“Property rental$2,895,190 $2,803,252 $91,938 3.3 % Tenant reinsurance352,876 332,795 20,081 6.0 % Management fees and other income129,476 120,855 8,621 7.1 % Total revenues$3,377,542 $3,256,902 $120,640 3.7 %”

“Self-Storage Operations$2,895,190 $2,803,252 $2,222,578 Tenant Reinsurance352,876 332,795 235,680 Total segment revenues$3,248,066 $3,136,047 $2,458,258”

“we employ industry-leading revenue management systems. Developed by our management team, these systems enable us to analyze, set and adjust rental rates daily across our portfolio”

“We operate in competitive markets, often where consumers have multiple stores from which to choose. Competition has impacted, and will continue to impact, our store results.”

“For the year ended December 31, 2025, we sold 37 stores for $305.8 million. For the year ended December 31, 2024 we sold six stores for $102.5 million.”

“an increase of $104,706 associated with acquisitions completed in 2024 and 2025. The increase in revenue resulting from these acquisitions was partially offset by a decrease in property rental revenue of $21,728 due to property dispositions”

“We are the largest self-storage operator in the United States. Our three primary competitors who are public self-storage REITs are CubeSmart, National Storage Affiliates and Public Storage.”

“these acquisitions cause dilution to our earnings during the two-to-four year period required to lease up the Certificate of Occupancy stores.”

“an increase of $35,689 at our same-store properties primarily due to an increase in property taxes, payroll and benefits, marketing, and repairs and maintenance expenses.”

“As of December 31, 2025, we had $1.1 billion of secured notes payable and $11.2 billion of unsecured notes payable outstanding.”

“As of December 31, 2025, the total outstanding balance under investments in debt securities and notes receivable was $1.8 billion, including $1.5 billion outstanding under our bridge loan program.”

“Our tenant reinsurance business is subject to significant governmental regulation.”

“increases in unemployment rates, rising interest rates, changing demographics, decreases in the volume of housing market transactions, recessions”

“We may record losses as a result of the bankruptcy, insolvency, or other credit failure of the borrowers under our bridge lending program or other companies in which we have invested.”

“limit any person to actual or constructive ownership of no more than 7.0% (by value or by number of shares, whichever is more restrictive) of our outstanding common stock”

“Our information technology systems and those of our third-party service providers, strategic partners and other contractors or consultants are vulnerable to attack and damage or interruption from computer viruses and malware (e.g. ransomware)”

“Nearly all of our leases are on a month-to-month basis. Any delay in re-letting units as vacancies arise would reduce our revenues and harm our operating results.”

“Development of self-storage facilities has increased in recent years, which has intensified competition, and we expect it will continue to do so as newly developed facilities are opened.”

“We use AI in assessing marketing decisions and operating our stores. However, there can be no assurance that we will realize the desired or anticipated benefits”

“such as losses due to earthquakes, hurricanes, tornadoes, riots, acts of war, terrorism, or social engineering. Should an uninsured loss occur, we could lose both our investment in and anticipated profits and cash flow from a store.”

“could lead to lower demand for storage facilities, lower rental rates, inability to raise rents, reduced late fee collection and impaired ability to hold auctions resulting in higher accounts receivable and bad debt.”

“the failure to maintain our REIT status for U.S. federal income tax purposes.”

“the California Consumer Privacy Act, as amended by the California Privacy Rights Act, requires certain businesses that process personal information of California residents”

“Real property taxes on our properties may increase as our properties are reassessed by taxing authorities or as property tax rates change.”