Dear Fellow Shareholders,

In 2025, we delivered positive FFO per share growth and maintained positive same-store revenue growth despite facing the headwinds of a difficult supply cycle – a testament to our operational resilience and the strength of our diversified portfolio. As new supply moderated throughout the year, we regained pricing power with new customers for the first time in three years. New customer growth rates improved every month from May through December, while maintaining sector-leading occupancy. Our marketing effectiveness and revenue management platform allowed us to capture a greater share of available demand and demonstrated that as competitive pressure from new supply eases, we are able to push rates and drive revenue more quickly than the industry as a whole.

Existing customer behavior also remained strong in 2025. We have experienced low levels of vacates and bad debt, while being able to improve existing customer rental rates. These are not temporary wins. They are evidence that our customer service and revenue management platform, refined over years and enhanced with machine learning, is converting improving market conditions into tangible performance.

As we enter 2026, I am increasingly confident in our company's long-term growth potential. After navigating three difficult years of elevated new supply and challenging fundamentals, we saw tangible improvements throughout 2025, and the momentum is building. New supply is declining across many of our markets, our operating metrics are strengthening, and the strategic investments we have made in our platform, portfolio, and team are delivering results that reinforce our confidence in the year ahead.

Demand for self storage remains resilient, triggered by life events and space needs that persist across all economic cycles. Utilization rates and average lengths of stay are rising, which are both positive long-term indicators. Self storage adoption spans multiple generations, from Baby Boomers downsizing their homes to members of Gen Z navigating frequent moves. The industry's long-term fundamentals remain durable and are improving into 2026.

We have the largest and most diverse portfolio in the industry, which provides Extra Space with a data and scale advantage. We leverage our data in our digital marketing infrastructure to efficiently drive customers to our website, call center, and stores, while our revenue management systems use data from millions of rental transactions to continuously evolve to optimize conversion. Using sophisticated data-driven pricing and promotions, we are capturing maximum value from every customer interaction. We are thoughtfully integrating AI and machine learning where it delivers tangible benefits, whether enhancing operational efficiency, sharpening execution, or elevating the customer experience. These are not experiments but data-driven decisions based on years of testing that position us as the sector's strongest operator.

Our balance sheet remains a competitive advantage. We actively manage and extend our maturities, optimize interest costs, and preserve access to diverse capital sources. In 2025, we strengthened our financial position and lowered our interest cost by establishing a commercial paper program and increasing the capacity of our credit facility to $3 billion, providing us with enhanced flexibility and funding capacity. We maintained strong liquidity and broad capital access, ensuring we have the resources to pursue growth opportunities and weather cycles. This fortress-like positioning equips us to act decisively as conditions evolve.

Our flexible balance sheet enabled us to pursue growth through diverse and strategic external channels. We executed almost $1 billion in accretive acquisitions. We also entered, exited, and restructured joint ventures, which generated $xxx million in backend promotes. Additionally, we deployed $xxx million of capital into bridge loan investments. Our disciplined capital allocation decisions enhanced our portfolio quality and return profile. Our third-party management platform delivered exceptional industry leading growth, adding xxx stores that generate fee income and reinforce our brand presence. With over 4,200 stores now operating under the Extra Space Storage brand across 43 states plus DC and nearly all major metros, our scale and diversification provide stability and minimize concentration risk.

Our strong execution is possible due to the depth and quality of talent across Extra Space Storage. Our executive team brings deep tenure and a proven track record, while our focus on attracting, developing, and retaining diverse talent ensures we are building tomorrow's leaders today. Succession planning is embedded at all senior levels. We have created a true career destination, and our people deliver exceptional service and performance that sets us apart.

Extra Space Storage has thrived across cycles, through booms and downturns, supply waves and supply droughts, rising and falling interest rates and cap rates. Our disciplined yet opportunistic approach to capital allocation has consistently driven value creation. The landscape evolves constantly, but our ability to perform at the top of the sector endures. As we look ahead, we are optimistic: the operational momentum we built in 2025, combined with declining new supply and our platform's proven strengths, positions us to unlock sustained growth and lasting shareholder value.

Sincerely,
Joseph Margolis
Chief Executive Officer

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