Extra Space Storage
S&P 500 Component
|Industry||Real Estate Investment Trust, self storage|
|Headquarters||Cottonwood Heights, Utah, U.S.|
Number of locations
|Products||Climate controlled and non-climate controlled storage units|
|Revenue||US$1.105 billion (2017)|
|US$541.6 million (2017)|
|US$514.2 million (2017)|
|Total assets||US$7.45 billion (2017)|
Number of employees
|More than 3300|
Extra Space Storage (NYSE: EXR) is a US provider of self-storage units, with 1,483 facilities across 39 states plus Washington, D.C. and Puerto Rico. Headquartered in Cottonwood Heights, Utah, Extra Space Storage is the second largest owner and/or operator of self-storage properties in the United States, as well as the largest self-storage management company.
Extra Space Storage has been a publicly traded real estate investment trust (REIT) since 2004, and is traded on the New York Stock Exchange with the ticker symbol EXR. The company was founded in 1977 by Kenneth Woolley, who remains the chairman. Since 2017, Joseph D. Margolis has served as the company's CEO.
Extra Space Storage is the successor to Extra Space Development Co., a limited partnership that was founded in 1979, two years after Kenneth Woolley built his first self-storage facility, under the name Secure-It Mini Storage, in Billings, Montana with Bill Nielson of Nielson Enterprises. Woolley served as a general partner, Neilson Enterprises as limited partner, and Richard S. Tanner, who previously worked with Woolley on a real estate venture in 1975, joined as an additional general partner shortly after its creation.
Between 1979 and 2004, Woolley and Tanner developed self-storage properties in 11 U.S. states. During that time, Tanner served as President of the affiliated Extra Space Management Co. for 15 years, which managed third-party self-storage properties. He later served alongside Woolley as the Senior Vice President of Development and Construction. During that time both Woolley and Tanner served as licensed Real Estate Brokers in multiple states which facilitated third party management and several acquisitions of existing storage properties.
In 1998, after 21 years of developing and selling storage properties across the U.S., Woolley partnered with Spencer F. Kirk – who previously retired after co-founding Megahertz, which was bought out by USRobotics and later 3com.
Through the new partnership formed between Woolley and Kirk, Extra Space Storage went on to create several joint ventures partnerships including with Prudential Real Estate.
In August 2004, Extra Space Storage completed its initial public offering on the New York Stock Exchange using the symbol "EXR". Shares opened at $12.50 per share. With the announcement, Woolley was named CEO and Chairman of the Board.
In 2005, as part of a joint venture with PGIM, Extra Space acquired Storage USA for $2.3 Billion. The purchase added more than 400 additional properties and expanded Extra Space Storage's portfolio into 34 states. At the time of the purchase, it was the largest transaction made within the self-storage industry. Following the deal to acquire Storage USA, Extra Space Storage continued to grow through developments exceeding $100 million per year and through additional acquisitions of existing properties and expansion of its 3rd party management contracts.
With the downturn in the economy during 2008, development and construction by Extra Space Storage was wound down by 2010. Extra Space Storage refocused its growth efforts on selective acquisitions and third party management of properties under the Extra Space Storage brand.
In 2009, Kenneth Woolley stepped down as CEO. Woolley was then succeeded by Kirk, who had previously served as the Company's President and had been a Director on the Extra Space Storage board of directors since 2004.
By the end of 2013, Extra Space Storage had expanded their portfolio beyond 1,000 total stores after making large acquisitions in California and Virginia and were now operating in 35 states, Washington D.C., and Puerto Rico.
On December 31, 2016, Kirk announced his retirement. Effective on January 1, 2017, Joseph D. Margolis succeeded Kirk as the company's third CEO. Prior to being named CEO, Margolis served as the CIO for Extra Space Storage and had been a member of the board of directors for over 10 years, serving from February 2005 to July 2015.
Extra Space Storage is a self-administered and self-managed REIT. As of December 31, 2017, the company owned and/or operated a total of 1,483 self-storage stores across 39 states, Washington D.C., and Puerto Rico. The stores comprise approximately 1,020,000 units and approximately 112 million square feet of rentable space.
During 2017, Extra Space Storage increased same-store revenue by 5.1% and same-store operating income by 6.9% compared to the same period in 2016. They also acquired 30 operating stores, nine Certificate of Occupancy stores and purchased their joint venture partners’ interest in six stores, totaling an investment of approximately $576.1 million.
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