2020 was a year of change for everyone, including Extra Space Storage. We implemented plexiglass barriers, modified office layouts, launched Rapid Rental to support social distancing, and other COVID-conscious safety measures throughout our 1,900+ facilities. Despite the challenges of the past year, our employees worked tirelessly to provide our customers with the best storage experience in the industry—and the results show it. Keep reading to see some highlights from our 2020 Annual Report.
CEO Letter
In a letter from our CEO, Joe Margolis talks about how, like most companies, Extra Space Storage faced many unexpected challenges in 2020. Extra Space Storage was especially innovative in the last year. From operations to sustainability efforts, our team was able to adapt and still meet the needs of our customers and our stakeholders.
Portfolio
In this last year, our portfolio has grown. Currently, we have 1,921 facilities in 40 states, including Washington, DC and Puerto Rico. Not to mention, we operate stores in each of the 50 largest metropolitan areas. Extra Space Storage attributes steady growth to our ownership structure, which includes wholly-owned properties, managed properties, and joint-venture properties. In addition, 2020 showed a rise in rental activity. Extra Space Storage had the highest same-store occupancy we’ve ever seen, averaging at 94.8%.
Platform
As our portfolio continues to grow, we’re always finding new ways to expand our platform. With over 1.2 million customers, we continue to innovate for a better tomorrow. Customers continue to find our stores through social media, YouTube videos, Google Ads, and driving by our buildings and signs. With the self storage market being so competitive, it’s essential that we continually refine our approach to marketing, customer experience, and pricing. This year, we also saw the release of Rapid Rental, which is contributing to 22% of our rentals.
People
Our resilient employees took the challenges of 2020 head-on, they put the needs of customers first. At Extra Space Storage, we focus on building a diverse team that’s inclusive, transparent, strategic, and passionate about our company values. With the right people in place, we can ensure employee job satisfaction. Our focus on all-level employee learning and development, as well as our passion to provide a career path instead of just a job, has resulted in making Extra Space Storage the best place to work in the industry. Continued employee growth and satisfaction has led to national and local accolades, including Utah Business’ Best Companies to Work For 2020, Glassdoor’s Best Places to Work 2020, and Forbes’ America’s Best Employers For Diversity 2020.
Performance
Despite uncertain economic environments, COVID-19 lockdowns, and safety concerns, Extra Space Storage continued to have strong company performance. Our Core FFO Growth for 2020 was 8.2%. We’ve managed to maintain same-store revenue growth in addition to growing other income sources. This has led to impressive stock performance. Our shareholders’ one-year total return was 13.6%, and Extra Space Storage has an industry-leading 10-year return of 831.3%.
External Growth
Extra Space Storage continues to find innovative ways to create external growth through acquisitions, structured finance programs, third-party management, and joint ventures. In this past year, we acquired and developed 30 stores for a total investment of $288 million and added 165 new third-party managed stores. Extra Space Storage’s Bridge Loan program finished its second year with over $400 million in approved loans during the year, resulting in a strong pipeline heading into 2021.
Sustainability
At Extra Space Storage, we take our sustainability initiatives seriously. These initiatives are not only for our shareholders, staff, customers, and communities, and but also for the environment. Recently, we’ve been recognized for our efforts by industry leaders like GRESB, SAM, Sustainalytics, Just Capital, and NAREIT. Extra Space Storage has produced enough solar power over the last ten years to offset over three million gallons of consumable gasoline, or 30 million pounds of burned coal.
Read more about Extra Space Storage’s achievements in our 2020 Annual Report.
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