Extra Space Storage Inc. (EXR) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that Extra Space Storage Inc. surfaced in its latest filing.

• $13.5 billion of debt outstanding as of December 31, 2025December 31, 2025
• $2.4 billion, or 17.9%, of debt subject to variable interest ratesDecember 31, 2025
• Variable rate debt had a weighted average interest rate of approximately 4.8% per annumDecember 31, 2025
• As of December 31, 2025, we had approximately $13.5 billion of outstanding indebtednessDecember 31, 2025
• As of December 31, 2025, we held interests in 407 operating stores through unconsolidated joint venturesDecember 31, 2025
• Total outstanding balance under investments in debt securities and notes receivable was $1.8 billion as of December 31, 2025December 31, 2025
• $1.5 billion outstanding under bridge loan program as of December 31, 2025December 31, 2025
• Total outstanding balance of investments in unconsolidated real estate entities, net of cash distributions, was $993 million as of December 31, 2025December 31, 2025
• $250 million invested in preferred stock of entities affiliated with SmartStop as of December 31, 2025December 31, 2025
• Ongoing conflict between Russia and Ukraine
• Ongoing conflict between Israel and Hamas
• Ongoing conflict between Israel and Iran
• California Consumer Privacy Act, as amended by the California Privacy Rights Act, imposes disclosure, access, deletion, correction, opt-out, and contractual obligations
• Election to treat certain corporate subsidiaries, including Extra Space Management, Inc., as taxable REIT subsidiaries (TRSs) for U.S. federal income tax purposes
• ESM Reinsurance Limited, a wholly-owned subsidiary of Extra Space Management, Inc., generates income from insurance premiums subject to U.S. federal income tax and state insurance premiums tax
• ESM Reinsurance Limited pays certain insurance royalties to the Company
• The charter limits any person to actual or constructive ownership of no more than 7.0% of outstanding common stock or 7.0% of outstanding capital stock
• Different ownership limits apply to the family of Kenneth M. Woolley, certain affiliates, family members, estates and trusts
• Different ownership limits apply to Spencer F. Kirk, certain affiliates, family members, estates and trusts
• Different ownership limits apply to certain designated investment entities as defined in the charter
• Possible penalty taxes of $50,000 or more for each failure if we fail to qualify as a REIT and use relief provisions
• Must distribute at least 90% of REIT taxable income annually to stockholders
• We hold our assets through a partnership, increasing complexity of applying REIT qualification rules
• We own or may acquire interests in Subsidiary REITs; if a Subsidiary REIT fails to qualify, its shares cease to be qualifying REIT assets and may cause us to fail asset tests
• We have not requested and do not plan to request a ruling from the IRS regarding our REIT qualification
• Geopolitical events such as the ongoing conflict between Russia and Ukraine, Israel and Hamas, and Israel and Iran
• Covenants require maintaining total debt to asset ratios
• Covenants require maintaining secured debt to total asset ratios
• Covenants require maintaining adjusted EBITDA to fixed charge ratios
• Covenants require maintaining minimum ratios of unencumbered assets to unsecured debt