AddedRisk Factors
information; and enter into specific contractual provisions with service providers that process California resident personal information on the business’s behalf.
EXRExtra Space Storage
Extra Space Storage Inc. (“we,” “our,” “us” or the “Company”) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”) formed as a Maryland corporation on April 30, 2004. 10-K, Item 1
- Employees
- 8,393
- Headquarters
- Salt Lake City, UT
- CEO
- Joseph D. Margolis
- Next results
- around Feb 18, 2027
10-K 0001289490-26-000011 (2026-02-20) vs 10-K 0001628280-25-009060 (2025-02-28)
| Section | Compared text | Words now | Changed |
|---|---|---|---|
| Risk Factors | Item 1A | 7,726 | 10.5% |
| MD&A | Item 7 | 5,796 | 19.3% |
| Legal Proceedings | Item 3, via Note 18 – COMMITMENTS AND CONTINGENCIES | 379 | 5.7% |
| Accounting Policies | Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 4,880 | 10.7% |
The redline: what was cut and what was added
In each section, the paragraph that changed most, marked against last year's 10-K:
cut words struck through, new words highlighted and underlined.
MD&A 189 words changed in this paragraph; it is 37% similar to last year's version.
The following table presents a reconciliation the calculation of same-store net operating income to net income as presented on our consolidated statements of operations FFO for the periods years indicated:For the Year Ended December 31, 2025 2024 2023 Net Income income attributable to common stockholders $ 900,232 973,999 $ 850,453 Adjusted to exclude: 854,681 $ 803,198 Adjustments: Real estate depreciation 655,452 618,189 418,149 Amortization of intangibles 20,316 113,886 59,295 Loss on real estate assets held for sale and sold, net 76,310 25,906 — Equity in earnings and dividend income from unconsolidated Unconsolidated joint venture real estate entities (67,272) (54,835) Equity in earnings of unconsolidated real estate ventures - depreciation and amortization 32,748 32,678 24,400 Unconsolidated joint venture gain on sale of real estate assets and sale of a joint venture interest (54,521) (13,730) — Interest expense 551,354 419,035 Non-cash interest expense related Distributions paid on Series A Preferred Operating Partnership units — — (159) Income allocated to amortization of discount on Life Storage unsecured senior notes 43,720 18,786 Depreciation Operating Partnership noncontrolling interests 48,539 45,551 47,255 Funds from operations attributable to common stockholders and amortization 783,023 506,053 Income tax expense 33,478 21,559 Life Storage Merger transition costs — 66,732 General and administrative 167,398 146,408 Impairment of Life Storage trade name 51,763 — Management fees, other income and interest income (245,277) (186,843) Net tenant insurance (258,909) (176,806) Non same-store rental revenue (1,137,497) (560,874) Non same-store operating expense 399,517 203,109 Total same-store net operating income unit holders $ 1,233,706 1,752,843 $ 1,252,777 1,677,161 $ 1,352,138
Source: Item 7, 10-K 0001289490-26-000011 vs Item 7, 10-K 0001628280-25-009060
Risk Factors 120 words changed in this paragraph; it is 69% similar to last year's version.
Qualification as a REIT involves the application of highly technical and complex Internal Revenue Code provisions for which there are only limited judicial and administrative interpretations. The complexity of these provisions and of the applicable Treasury regulations that have been promulgated under the Internal Revenue Code is greater in the case of a REIT that, like us, holds its assets through a partnership. The determination of various factual matters and circumstances not entirely within our control may affect our ability to qualify as a REIT. In order to qualify as a REIT, we must satisfy a number of requirements, including requirements regarding the composition of our assets, the sources of our gross income and the owners of our stock. Our ability to satisfy the asset tests depends upon our analysis of the fair market value of our assets, some of which are not susceptible to precise determination, and for which we will not obtain independent appraisals. Our ability to satisfy the income tests depends on the sources and amounts of our gross income, which we may not be able to control. Also, we must make distributions to stockholders aggregating annually at least 90% of our REIT taxable income, determined without regard to the dividends paid deduction and excluding net capital gains, and we will be subject to U.S. federal corporate income tax to the extent we distribute for any year less than 100% of our REIT taxable income, determined without regard to the dividends paid deduction and including net capital gains.
Source: Item 1A, 10-K 0001289490-26-000011 vs Item 1A, 10-K 0001628280-25-009060
Accounting Policies 105 words changed in this paragraph; it is 58% similar to last year's version.
In December 2023, the FASB issued ASU No. 2023-09 – “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”. Disclosures.” The amended guidance focuses on providing more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. Pursuant to this ASU, the footnotes to the Company's Company’s consolidated financial statements may include incremental disclosures related to income taxes. This The Company has adopted this standard is effective for annual periods beginning after December 15, 2024, therefore, compliance with this ASU will be required beginning with the Company's annual report on Form 10-K for the year ending as of December 31, 2025, with early adoption permitted. The Company expects 2025. Refer to adopt this ASU note 16 for its annual report on Form 10-K further discussion of the Company’s accounting for the year ending December 31, 2025, income taxes and is continuing to research the impact of this amended guidance, however, does not expect this standard to have a material impact on its consolidated financial statements. related disclosures.
Source: Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001289490-26-000011 vs Item 8, Note 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, 10-K 0001628280-25-009060
Legal Proceedings 12 words changed in this paragraph; it is 80% similar to last year's version.
As of December 31, 2024, 2025, the Company was under agreement to acquire eight stores one store at a total purchase price of $81,533. Acquisitions of all eight stores are $12,500, which is scheduled to close in 2025. 2026.
Source: Item 3, via Note 18 – COMMITMENTS AND CONTINGENCIES, 10-K 0001289490-26-000011 vs Item 3, via Note 18 – COMMITMENTS AND CONTINGENCIES, 10-K 0001628280-25-009060
Every change, by type
Sentences and paragraphs of EXR's Risk Factors and MD&A, 10-K 2026-02-20 against 10-K 2025-02-28. Each links to the text at sec.gov.
Quiet changes are sentences kept from last year with one to four words changed, at least one of them a hedge, a modal or a qualifier
(may, could, will, not, significant, material…). A year or date rolling forward is not counted.
The full word list
adverse, adversely, all, although, anticipate, anticipates, any, approximately, believe, believes, can, cannot, certain, could, expect, expects, generally, however, if, intend, intends, largely, likely, many, material, materially, may, might, most, must, never, no, not, possible, primarily, probable, should, significant, significantly, some, substantial, substantially, unlikely, will, would
AddedRisk Factors
The use of, or inability to take advantage of the benefits of, artificial intelligence by us presents risks and challenges that may adversely impact our business and operating results or may adversely impact the demand for storage with the Company.
AddedRisk Factors
We have begun and may continue to use artificial intelligence and machine learning (collectively, “AI”) tools in our operations. 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, or any benefits, and we may fail to properly implement such technology. While AI tools may facilitate optimization and operational efficiencies, they also have the potential for inaccuracy, bias, infringement or misappropriation of intellectual property. The use of AI tools may introduce errors or inadequacies that are not easily detectable, including deficiencies, inaccuracies, or biases in the data used for AI training, or in the content, analyses, or recommendations generated by AI applications. Additionally, if our peers use AI tools to optimize operations and we fail to utilize AI tools in a comparable manner, we may be competitively disadvantaged.
AddedRisk Factors
New laws and regulations are being adopted, and existing laws and regulations may be interpreted, in ways that could affect our business operations and the way in which we use AI. Our ongoing efforts to comply with privacy and data protection laws, as well as initiatives to comply with new legal regulations relating to privacy, data protection and AI, impose significant costs and challenges that are likely to increase over time. Additionally, this complex and rapidly evolving landscape around AI may expose us to claims, inquiries, demands and proceedings by private parties and global regulatory authorities and subject us to legal liability as well as reputational harm.
AddedRisk Factors
Uncertainty around the safety and security of new and emerging AI applications may require additional investment in the development of proprietary datasets, machine learning models and systems to test for security, accuracy, bias and other variables, which are often complex, may be costly and could impact our operating results. Cybersecurity threat actors may also utilize AI tools to automate and enhance cybersecurity attacks against us and could lead to data breaches, loss of confidential or sensitive information, and financial or reputational harm.
AddedRisk Factors
These outcomes could impair our ability to compete effectively, damage our reputation, result in the loss of valuable property or information and adversely affect our business, financial condition, and results of operations.
RewordedRisk Factors
In addition, our Operating Partnership is required to indemnify us, our affiliates and each of our respective trustees, officers, directors, employees and agents to the fullest extent permitted by applicable law against any and all losses, claims, damages, liabilities (whether joint or several), expenses (including, without limitation, attorneys’ fees and other legal fees and expenses), judgments, fines, settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings, civil, criminal, administrative or investigative, that relate to the operations of the Operating Partnership, provided that our Operating Partnership will not indemnify for (1) willful misconduct or a knowing violation of the law, (2) any transaction for which such person received an improper personal benefit in violation or breach of any provision of the partnership agreement, or (3) in the case of a criminal proceeding, the person had reasonable cause to believe the act or omission was unlawful.
RewordedRisk Factors
For example, the California Consumer Privacy Act, as amended by the California Privacy Rights Act, requires certain businesses that process personal information of California residents to, among other things, provide certain disclosures to California residents regarding the business’s collection, use, and disclosure of their personal information; receive and respond to requests from California residents to access, delete, and correct their personal information, or to opt-out of certain disclosures of their personal information; and enter into specific contractual provisions with service providers that process California resident personal information on the business’s behalf.
RewordedRisk Factors
This means that our U.S. individual stockholders would be taxed on our dividends at capital gains rates, and our U.S. corporate stockholders would be entitled to the dividends received deduction with respect to such dividends, subject, in each case, to applicable limitations under the Internal Revenue Code.
RewordedRisk Factors
To qualify as a REIT, we generally must distribute to our stockholders annually at least 90% of our REIT taxable income each year, income, determined without regard to the dividends paid deduction and excluding net capital gains, and we are subject to U.S. federal corporate income tax to the extent that we distribute for any year less than 100% of our REIT taxable income each year, income, determined without regard to the deduction for dividends paid and including net capital gains.
RewordedRisk Factors
Dividends paid by REITs to such stockholders are generally not eligible for that rate, but under current tax law, such stockholders may deduct up to 20% of ordinary dividends (i.e., dividends not designated as capital gain dividends or qualified dividend income) received from a REIT for taxable years beginning before January 1, 2026. REIT.
RewordedRisk Factors
Further, as of December 31, 2024, 2025, the total outstanding balance of our investments in unconsolidated real estate entities, net of cash distributions, was $1.3 billion, $993 million, of which $350 $250 million was invested in the preferred stock of entities affiliated with SmartStop.
RewordedRisk Factors
Any failure to maintain the proper functioning, confidentiality, security integrity and availability of our or our third-party service providers' providers’ information technology systems or our Confidential Information could interrupt our operations, damage our reputation, divert significant management attention and resources to remedy any damages that result, subject us to liability and claims (including class actions) or regulatory investigations and enforcement actions, which could result in, among other things, fines and penalties, and have a material adverse effect on our business, financial condition and results of operations.
RewordedRisk Factors
Costs associated with complying with the Americans with Disabilities Act of 1990 ADA may result in unanticipated expenses.
RewordedRisk Factors
Credit and financial markets can be volatile and may be impacted by diminished liquidity and credit availability, rising interest and inflation rates, declines in economic growth and uncertainty about economic stability as well as geopolitical events such as the ongoing conflict between Russia and Ukraine, Israel and Hamas, and Israel and Iran, terrorism, civil unrest and acts of war.
RewordedRisk Factors
As of December 31, 2024, 2025, the total outstanding balance under investments in debt securities and notes receivable was $1.6 $1.8 billion, including $1.2 $1.5 billion outstanding under our bridge loan program.
RewordedRisk Factors
As of December 31, 2024, 2025, we held interests in 469 407 operating stores through unconsolidated joint ventures.
AddedMD&A
The following table presents information on revenues earned for the years indicated:For the Year Ended December 31, 2025 2024 $ Change % Change Property rental $ 2,895,190 $ 2,803,252 $ 91,938 3.3% Tenant reinsurance 352,876 332,795 20,081 6.0% Management fees and other income 129,476 120,855 8,621 7.1% Total revenues $ 3,377,542 $ 3,256,902 $ 120,640 3.7%
AddedMD&A
Tenant reinsurance—Tenant reinsurance expense represents the costs that are incurred to provide tenant reinsurance and is subject to volatility due to increased claims arising when significant events occur at stores.
AddedMD&A
Depreciation and amortization—We amortize to expense intangible assets-customer intangibles on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months). Depreciation and amortization expense decreased for the year ended December 31, 2025, primarily due to the customer intangibles associated with our merger with Life Storage being fully expensed in January 2025.
RemovedMD&A
RemovedMD&A
RemovedMD&A
RewordedMD&A
Net income $ 1,022,538 $ 900,232 $ 850,453 $ 921,156 Depreciation and amortization 715,177 783,023 506,053 288,316 Acquisition and development of real estate assets (1,069,292) (779,153) (420,892) (1,353,510) Life Storage Merger, net of cash acquired — — (1,182,411) — Impairment Proceeds from sale of Life Storage trade name 51,763 — — real estate assets 368,183 124,928 2,132 Investment in unconsolidated real estate entities (127,105) (301,917) (180,279) (118,963) Return of investment in unconsolidated real estate ventures 291,312 15,413 — Issuance of notes receivable, net of sales and principal payments (256,172) (635,677) (20,812) (35,561) Proceeds Net proceeds (payments) from unsecured term loans, senior notes, revolving lines of credit and commercial paper 8,685,933 7,113,003 5,188,011 Principal payments on unsecured term loans, senior notes, revolving lines of credit and commercial paper (8,724,444) (7,088,984) (4,207,700) (1,065,497) (38,511) 24,019 Proceeds from issuance of public bonds, net 1,650,000 1,300,000 1,550,000 396,100 Repurchase of common stock (149,548) — — Dividends paid on common stock (1,374,298) (1,375,003) (1,046,341) (805,311)
RewordedMD&A
For the Year Ended December 31, Percent 2025 2024 2023 Change Same-store rental revenues Net rental income $1,601,455 $1,596,015 $ 2,549,537 $ 2,540,782 0.3% Other operating income $64,300 $65,689 (2.1)% 99,277 104,752 (5.2)% Total same-store rental revenues $1,665,755 $1,661,704 0.2% 2,648,814 2,645,534 0.1% Same-store operating expenses Payroll and benefits $95,696 $91,329 4.8% 164,241 158,699 3.5% Marketing $34,038 $30,237 12.6% 63,166 60,059 5.2% Office expense $51,606 $51,655 (0.1)% 80,381 80,565 (0.2)% Property operating expense $37,646 $38,491 (2.2)% 69,649 69,108 0.8% Repairs and maintenance $27,934 $26,469 5.5% 55,391 51,742 7.1% Property taxes $165,617 $152,028 8.9% 298,563 277,569 7.6% Insurance $19,512 $18,718 4.2% 32,626 30,586 6.7% Total same-store operating expenses $432,049 $408,927 5.7% 764,017 728,328 4.9% Same-store net operating income $1,233,706 $1,252,777 (1.5)% $ 1,884,797 $ 1,917,206 (1.7)%
RewordedMD&A
The following table presents information on other revenues and expenses for the years indicated:For the Year Ended December 31, 2025 2024 2023 $ Change % Change Loss on real estate assets held for sale and sold, net $ (76,310) $ (25,906) $ — $ (25,906) 100.0% (50,404) 194.6% Impairment of Life Storage trade name (51,763) — (51,763) 100.0% 51,763 (100.0)% Interest expense (587,613) (551,354) (419,035) (132,319) 31.6% (36,259) 6.6% Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes notes, net (47,519) (43,720) (18,786) (24,934) 132.7% (3,799) 8.7% Interest income 163,202 124,422 84,857 39,565 46.6% 38,780 31.2% Equity in earnings and dividend income from unconsolidated real estate entities 68,815 67,272 54,835 12,437 22.7% 1,543 2.3% Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest 54,521 13,730 — 13,730 100.0% 40,791 297.1% Income tax expense (41,559) (33,478) (21,559) (11,919) 55.3% (8,081) 24.1% Total other expense, revenues & expenses, net $ (466,463) $ (500,797) $ (319,688) $ (181,109) 56.7% 34,334 (6.9)%
RewordedMD&A
Loss on Real Estate Assets Held real estate assets held for Sale sale and Sold, Net—During sold, net—During the year ended December 31, 2024, 2025, we had 18 stores recognized estimated losses of $115,830 related to properties sold or classified as held for sale. sale given their estimated fair value, net of selling costs, was less than the carrying value of the assets.
RewordedMD&A
Loss on real estate assets held for sale and sold, net 76,310 25,906 — Equity in earnings and dividend income from unconsolidated real estate entities (68,815) (67,272) (54,835) Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and sale of a joint venture interest (54,521) (13,730) — Interest expense 587,613 551,354 419,035 Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes notes, net 47,519 43,720 18,786 Depreciation and amortization 715,177 783,023 506,053 Income tax expense 41,559 33,478 21,559 Life Storage Merger transition costs — 66,732 General and administrative 186,343 167,398 146,408 Impairment of Life Storage trade name — 51,763 — Management fees, other income and interest income (292,678) (245,277) (186,843) Net tenant insurance (284,003) (258,909) (176,806) Non same-store rental revenue (1,137,497) (560,874) (246,376) (157,718) Non same-store operating expense 399,517 203,109 154,131 103,238 Total same-store net operating income $ 1,233,706 1,884,797 $ 1,252,777 1,917,206
RewordedMD&A
RewordedMD&A
RewordedMD&A
Non-cash Interest Expense Related interest expense related to Amortization amortization of Discount discount on Life Storage Unsecured Senior Notes—Represents unsecured senior notes, net—Represents the amortization of the discount assigned to the fair value of the Life Storage unsecured senior notes assumed as part of the Life Storage Merger. Merger and net premium from bond offerings, offset by the discount from assumed debt.
RewordedMD&A
RewordedMD&A
In addition to the increase attributable to the Merger, addition, property rental revenue increased by $5,440 $8,755 due to improved operating results at our same-store pool and increased by $4,892 as a result of increases in occupancy at our lease-up stores. properties.
RewordedMD&A
Tenant Reinsurance—The reinsurance—The increase in tenant reinsurance revenue was due primarily to an increase in the number of stores operated, as well as the Life Storage stores being on our platform for a full 12 months in 2024 in comparison with five months in 2023. operated.
RewordedMD&A
Income Tax Expense—The tax expense—The increase in income tax expense for the year ended December 31, 2024 2025 was primarily the result of a full year of TRS an increase in book income for Life Storage stores, compared to a partial year in 2023, as well as and a decrease in permanent tax deductions related to stock awards.
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