Spencer F. Kirk, Chairman and Chief Executive Officer, and Scott Stubbs, Executive Vice President and Chief Financial Officer of Extra Space Storage Inc. (EXR) Interview with the Wall Street Transcript

Wall Street Transcript

67 WALL STREET, New York - October 23, 2012 - The Wall Street Transcript has just published its REITs Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Acquisition and Financing Costs - Pricing Power Outlook - Residential and Commercial REITs - Real Estate New Supply - Inexpensive Access to Capital - Apartment, Lodging, Self-Storage and Office REITs

Companies include: Extra Space Storage Inc. (EXR) and many others.

In the following excerpt from the REITs Report, the CEO and CFO of Extra Space Storage discuss the outlook for their company for investors:

TWST: Please start by introducing our readers to Extra Space Storage with a company history and an overview of its operations and portfolio today.

Mr. Kirk: Extra Space was founded in 1977 by a merchant developer by the name of Ken Woolley. Properties would be built and then sold off, but about a dozen properties were held inside Extra Space in 1998, when Ken Woolley decided to recapitalize and reorganize the company. I had been in the high-tech world and had become acquainted with Ken, and he invited me to join his quest to build Extra Space into a much larger company. So in 1998, with 12 Extra Space-branded properties, we went out and obtained some institutional capital and began a quest to build a company.

Today, Extra Space is the second-largest operator of self storage in the world. We are primarily located in the United States. We have 908 facilities in 34 states plus Washington, D.C., and Puerto Rico. We employ 2,400 people. And along the way, we have also become the largest third-party management company in the self-storage sector. With that, we have behaved more like a growth company.

It's interesting to note that five years ago, in 2007, we had 567 properties; and a year later, in 2008, when the economy went into the recession, Extra Space hunkered down, solved the issues regarding the credit crisis as it pertained to our company - without having to dilute shareholders - and we continued to grow. We went from 567 properties in 2007 to the current count of 908 today.

What is unique about Extra Space are a couple of things. We have produced for 26 consecutive quarters on average the best revenue growth, the best operating expense control and the best NOI growth of any of the four publicly traded self-storage companies. And we have produced an outstanding return for the shareholders. Extra Space is ranked number one on five-year total return to investors for all 125 REITs. And I think this is part of the fact that we have been behaving much more like a growth company rather than just a sleepy real estate company that's in the storage sector.

One of the other things is Extra Space has grown because it is focused on key markets. Of the operators out in the self-storage industry, around our properties in a three-mile concentric ring, we have the highest median household income and the best population density. Those are things that have driven us to produce best-in-class results.

TWST: Do you expect EXR to continue growing at a similar pace, and is there more focus on acquisitions versus third-party management?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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