Item 8. Financial Statements and Supplementary Data

| --- | --- |

EXTRA SPACE STORAGE INC.

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

AND SCHEDULES

Report of Independent Registered Public Accounting Firm			50
Consolidated Balance Sheets as of December 31, 2015 and 2014			51
Consolidated Statements of Operations for the years ended December 31, 2015, 2014 and 2013			52
Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013			53
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013			54
Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013			57
Notes to Consolidated Financial Statements			58
Schedule III			99

All other schedules have been omitted since the required information is not present or not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements or notes thereto.

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Report of Independent Registered Public Accounting Firm

The Board of Directors and Stockholders of Extra Space Storage Inc.

We have audited the accompanying consolidated balance sheets of Extra Space Storage Inc. (“the Company”) as of December 31, 2015 and 2014, and the related consolidated statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2015. Our audits also included the financial statement schedule listed in the index at Item 8. These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2015 and 2014, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2015, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

As discussed in Note 2 to the consolidated financial statements, the Company changed its reporting of debt issuance costs as a result of the adoption of the amendments to the FASB Accounting Standards Codification resulting from Accounting Standards Update No. 2015-03, “Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.”

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Extra Space Storage Inc.’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework”) and our report dated February 26, 2016 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

Salt Lake City, Utah

February 29, 2016

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Extra Space Storage Inc.

Consolidated Balance Sheets

(dollars in thousands, except share data)

		December 31, 2015				December 31, 2014
Assets:
Real estate assets, net		$	5,689,309			$	4,135,696
Investments in unconsolidated real estate ventures			103,007				85,711
Cash and cash equivalents			75,799				47,663
Restricted cash			30,738				25,245
Receivables from related parties and affiliated real estate joint ventures			2,205				11,778
Other assets, net			170,349				75,894
Total assets		$	6,071,407			$	4,381,987
Liabilities, Noncontrolling Interests and Equity:
Notes payable, net		$	2,758,567			$	1,858,981
Exchangeable senior notes, net			623,863				235,724
Notes payable to trusts, net			117,191				117,059
Lines of credit			36,000				138,000
Accounts payable and accrued expenses			82,693				65,521
Other liabilities			80,489				54,719
Total liabilities			3,698,803				2,470,004
Commitments and contingencies
Noncontrolling Interests and Equity:
Extra Space Storage Inc. stockholders’ equity:
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding			—				—
Common stock, $0.01 par value, 500,000,000 shares authorized, 124,119,531 and 116,360,239 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively			1,241				1,163
Additional paid-in capital			2,431,754				1,995,484
Accumulated other comprehensive loss			(6,352	)			(1,484	)
Accumulated deficit			(337,566	)			(257,738	)
Total Extra Space Storage Inc. stockholders’ equity			2,089,077				1,737,425
Noncontrolling interest represented by Preferred Operating Partnership units, net of $120,230 notes receivable			80,531				81,152
Noncontrolling interests in Operating Partnership			202,834				92,422
Other noncontrolling interests			162				984
Total noncontrolling interests and equity			2,372,604				1,911,983
Total liabilities, noncontrolling interests and equity		$	6,071,407			$	4,381,987

See accompanying notes.

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Extra Space Storage Inc.

Consolidated Statements of Operations

(dollars in thousands, except share data)

		For the Year Ended December 31,
		2015				2014				2013
Revenues:
Property rental		$	676,138			$	559,868			$	446,682
Tenant reinsurance			71,971				59,072				47,317
Management fees and other income			34,161				28,215				26,614
Total revenues			782,270				647,155				520,613
Expenses:
Property operations			203,965				172,416				140,012
Tenant reinsurance			13,033				10,427				9,022
Acquisition related costs			69,401				9,826				8,618
General and administrative			67,758				60,942				54,246
Depreciation and amortization			133,457				115,076				95,232
Total expenses			487,614				368,687				307,130
Income from operations			294,656				278,468				213,483
Gain (loss) on real estate transactions and earnout from prior acquisitions			1,501				(10,285	)			960
Property casualty loss, net			—				(1,724	)			—
Loss on extinguishment of debt related to portfolio acquisition			—				—				(9,153	)
Interest expense			(95,682	)			(81,330	)			(71,630	)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes			(3,310	)			(2,683	)			(1,404	)
Interest income			3,461				1,607				749
Interest income on note receivable from Preferred Operating Partnership unit holder			4,850				4,850				4,850
Income before equity in earnings of unconsolidated real estate ventures and income tax expense			205,476				188,903				137,855
Equity in earnings of unconsolidated real estate ventures			12,351				10,541				11,653
Equity in earnings of unconsolidated real estate ventures—gain on sale of real estate assets and purchase of joint venture partners’ interests			2,857				4,022				46,032
Income tax expense			(11,148	)			(7,570	)			(9,984	)
Net income			209,536				195,896				185,556
Net income allocated to Preferred Operating Partnership noncontrolling interests			(11,718	)			(10,991	)			(8,006	)
Net income allocated to Operating Partnership and other noncontrolling interests			(8,344	)			(6,550	)			(5,474	)
Net income attributable to common stockholders		$	189,474			$	178,355			$	172,076
Earnings per common share
Basic		$	1.58			$	1.54			$	1.54
Diluted		$	1.56			$	1.53			$	1.53
Weighted average number of shares
Basic			119,816,743				115,713,807				111,349,361
Diluted			126,918,869				121,435,267				113,105,094

See accompanying notes.

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Extra Space Storage Inc.

Consolidated Statements of Comprehensive Income

(amounts in thousands)

		For the Year Ended December 31,
		2015				2014				2013
Net income		$	209,536			$	195,896			$	185,556
Other comprehensive income (loss):
Change in fair value of interest rate swaps			(4,929	)			(12,061	)			25,335
Total comprehensive income			204,607				183,835				210,891
Less: comprehensive income attributable to noncontrolling interests			20,001				17,120				14,386
Comprehensive income attributable to common stockholders		$	184,606			$	166,715			$	196,505

See accompanying notes

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Extra Space Storage Inc.

Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

		Noncontrolling Interests																								Extra Space Storage Inc. Stockholders’ Equity
		Preferred Operating Partnership																Operating Partnership																Additional Paid-in Captial				Accumulated Other Comprehensive Loss				Accumulated Deficit				Total Noncontrolling Interests and Equity
		Series A				Series B				Series C				Series D					Other				Shares				Par Value
Balances at December 31, 2012		$	29,918			$	—			$	—			$	—			$	22,492			$	1,114				110,737,205			$	1,107			$	1,740,037			$	(14,273	)		$	(235,064	)		$	1,545,331
Issuance of common stock upon the exercise of options			—				—				—				—				—				—				391,543				4				5,892				—				—				5,896
Restricted stock grants issued			—				—				—				—				—				—				137,602				1				—				—				—				1
Restricted stock grants cancelled			—				—				—				—				—				—				(23,323	)			—				—				—				—				—
Issuance of common stock, net of offering costs			—				—				—				—				—				—				4,500,000				45				205,943				—				—				205,988
Compensation expense related to stock-based awards			—				—				—				—				—				—				—				—				4,819				—				—				4,819
Purchase of additional equity interests in existing consolidated joint ventures			—				—				—				—				—				(1,008	)			—				—				(1,481	)			—				—				(2,489	)
Noncontrolling interest related to consolidated joint venture			—				—				—				—				—				870				—				—				—				—				—				870
Issuance of exchangeable senior notes—equity component			—				—				—				—				—				—				—				—				14,496				—				—				14,496
Issuance of Operating Partnership units in conjunction with store acquisitions			—				33,568				17,177				—				68,471				—				—				—				—				—				—				119,216
Redemption of Operating Partnership units for common stock			—				—				—				—				(260	)			—				12,500				—				260				—				—				—
Redemption of Operating Partnership units for cash			—				—				—				—				(41	)			—				—				—				—				—				—				(41	)
Net income			7,255				673				78				—				5,425				49				—				—				—				—				172,076				185,556
Other comprehensive income			214				—				—				—				692				—				—				—				—				24,429				—				25,335
Tax effect from vesting of restricted stock grants and stock option exercises			—				—				—				—				—				—				—				—				3,193				—				—				3,193
Distributions to Operating Partnership units held by noncontrolling interests			(7,185	)			(673	)			(78	)			—				(5,326	)			—				—				—				—				—				—				(13,262	)
Distributions to other noncontrolling interests			—				—				—				—				—				—				—				—				—				—				—				—
Dividends paid on common stock at $1.45 per share			—				—				—				—				—				—				—				—				—				—				(163,014	)			(163,014	)
Balances at December 31, 2013		$	30,202			$	33,568			$	17,177			$	—			$	91,453			$	1,025				115,755,527			$	1,157			$	1,973,159			$	10,156			$	(226,002	)		$	1,931,895

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.		Noncontrolling Interests																								Extra Space Storage Inc. Stockholders’ Equity
		Preferred Operating Partnership																Operating Partnership																Additional Paid-in Capital				Accumulated Other Comprehensive Loss				Accumulated Deficit				Total Noncontrolling Interests and Equity
		Series A				Series B				Series C				Series D					Other				Shares				Par Value
Issuance of common stock upon the exercise of options			—				—				—				—				—				—				211,747				2				3,093				—				—				3,095
Restricted stock grants issued			—				—				—				—				—				—				117,370				1				—				—				—				1
Restricted stock grants cancelled			—				—				—				—				—				—				(23,595	)			—				—				—				—				—
Compensation expense related to stock-based awards			—				—				—				—				—				—				—				—				4,984				—				—				4,984
Issuance of Operating Partnership units in conjunction with store acquisitions			—				8,334				13,783				13,710				2,982				—				—				—				—				—				—				38,809
Redemption of Operating Partnership units for common stock			(10,240	)			—				—				—				(398	)			—				299,190				3				10,635				—				—				—
Redemption of Operating Partnership units for cash			(4,794	)			—				—				—				—				—				—				—				—				—				—				(4,794	)
Issuance of note receivable to Series C unit holders			—				—				(20,230	)			—				—				—				—				—				—				—				—				(20,230	)
Net income			7,036				2,387				1,551				17				6,538				12				—				—				—				—				178,355				195,896
Other comprehensive loss			(74	)			—				—				—				(347	)			—				—				—				—				(11,640	)			—				(12,061	)
Tax effect from vesting of restricted stock grants and stock option exercises			—				—				—				—				—				—				—				—				3,613				—				—				3,613
Distributions to Operating Partnership units held by noncontrolling interests			(7,321	)			(2,386	)			(1,551	)			(17	)			(7,806	)			—				—				—				—				—				—				(19,081	)
Distributions to other noncontrolling interests			—				—				—				—				—				(53	)			—				—				—				—				—				(53	)
Dividends paid on common stock at $1.81 per share			—				—				—				—				—				—				—				—				—				—				(210,091	)			(210,091	)
Balances at December 31, 2014		$	14,809			$	41,903			$	10,730			$	13,710			$	92,422			$	984				116,360,239			$	1,163			$	1,995,484			$	(1,484	)		$	(257,738	)		$	1,911,983

See accompanying notes.

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Extra Space Storage Inc.

Consolidated Statements of Stockholders’ Equity

(amounts in thousands, except share data)

		Noncontrolling Interests																								Extra Space Storage Inc. Stockholders’ Equity
		Preferred Operating Partnership																Operating Partnership				Other				Shares				Par Value				Additional Paid-in Capital				Accumulated Other Comprehensive Loss				Accumulated Deficit				Total Noncontrolling Interests and Equity
		Series A				Series B				Series C				Series D
Issuance of common stock upon the exercise of options			—				—				—				—				—				—				79,974				1				1,541				—				—				1,542
Restricted stock grants issued			—				—				—				—				—				—				174,558				2				—				—				—				2
Restricted stock grants cancelled			—				—				—				—				—				—				(18,090	)			—				—				—				—				—
Issuance of common stock, net of offering costs			—				—				—				—				—				—				6,735,000				67				446,810				—				—				446,877
Compensation expense related to stock-based awards			—				—				—				—				—				—				—				—				6,055				—				—				6,055
Purchase of remaining equity interest in existing consolidated joint venture			—				—				—				—				—				(822	)			—				—				(446	)			—				—				(1,268	)
Issuance of Operating Partnership units in conjunction with acquisitions			—				—				—				—				142,399				—				—				—				—				—				—				142,399
Redemption of Operating Partnership units for common stock			—				—				—				—				(28,106	)			—				787,850				8				28,098				—				—				—
Repurchase of equity portion of 2013 exchangeable senior notes			—				—				—				—				—				—				—				—				(70,112	)			—				—				(70,112	)
Issuance of 2015 exchangeable senior notes—equity component			—				—				—				—				—				—				—				—				22,597				—				—				22,597
Net income			6,445				2,514				2,074				685				8,344				—				—				—				—				—				189,474				209,536
Other comprehensive loss			(15	)			—				—				—				(46	)			—				—				—				—				(4,868	)			—				(4,929	)
Tax effect from vesting of restricted stock grants and stock option exercises			—				—				—				—				—				—				—				—				1,727				—				—				1,727
Distributions to Operating Partnership units held by noncontrolling interests			(7,050	)			(2,515	)			(2,074	)			(685	)			(12,179	)			—				—				—				—				—				—				(24,503	)
Dividends paid on common stock at $2.24 per share			—				—				—				—				—				—				—				—				—				—				(269,302	)			(269,302	)
Balances at December 31, 2015		$	14,189			$	41,902			$	10,730			$	13,710			$	202,834			$	162				124,119,531			$	1,241			$	2,431,754			$	(6,352	)		$	(337,566	)		$	2,372,604

See accompanying notes.

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Extra Space Storage Inc.

Consolidated Statements of Cash Flows

(amounts in thousands)

		For the Year Ended December 31,
		2015				2014				2013
Cash flows from operating activities:
Net income		$	209,536			$	195,896			$	185,556
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			133,457				115,076				95,232
Amortization of deferred financing costs			7,779				6,592				5,997
Loss (gain) on real estate transactions and earnout from prior acquisitions			(1,501	)			2,500				—
Property casualty loss			—				1,724				—
Loss on extinguishment of debt related to portfolio acquisition			—				—				9,153
Gain on sale of real estate assets			—				—				(960	)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes			3,310				2,683				1,404
Non-cash interest expense related to amortization of premium on notes payable			(2,409	)			(3,079	)			(1,194	)
Compensation expense related to stock-based awards			6,055				4,984				4,819
Gain on sale of real estate assets and purchase of joint venture partners’ interests			(2,857	)			(3,438	)			(46,032	)
Distributions from unconsolidated real estate ventures in excess of earnings			4,531				4,510				4,838
Changes in operating assets and liabilities:
Receivables from related parties and affiliated real estate joint ventures			(1,436	)			71				1,277
Other assets			(1,172	)			(1,498	)			8,725
Accounts payable and accrued expenses			108				4,920				8,302
Other liabilities			11,928				6,640				(5,858	)
Net cash provided by operating activities			367,329				337,581				271,259
Cash flows from investing activities:
Acquisition of SmartStop, net of cash acquired			(1,200,853	)			—				—
Acquisition of real estate assets			(349,897	)			(503,538	)			(349,959	)
Development and redevelopment of real estate assets			(26,931	)			(23,528	)			(6,466	)
Proceeds from sale of real estate assets			800				—				6,964
Change in restricted cash			1,282				(3,794	)			(4,475	)
Investment in unconsolidated real estate ventures			(3,434	)			—				(1,516	)
Return of investment in unconsolidated real estate ventures			45,080				—				—
Purchase/issuance of notes receivable			(84,331	)			(29,258	)			(5,000	)
Purchase of equipment and fixtures			(7,380	)			(4,830	)			(6,524	)
Net cash used in investing activities			(1,625,664	)			(564,948	)			(366,976	)
Cash flows from financing activities:
Proceeds from the sale of common stock, net of offering costs			446,877				—				205,988
Net proceeds from the issuance of exchangeable senior notes			563,500				—				246,250
Repurchase of exchangeable senior notes			(227,212	)			—				—
Proceeds from notes payable and lines of credit			2,121,802				917,664				582,185
Principal payments on notes payable and lines of credit			(1,313,570	)			(533,128	)			(664,372	)
Deferred financing costs			(9,779	)			(5,305	)			(7,975	)
Net proceeds from exercise of stock options			1,542				3,095				5,896
Purchase of interest rate cap			(2,884	)			—				—
Redemption of Operating Partnership units held by noncontrolling interests			—				(4,794	)			(41	)
Dividends paid on common stock			(269,302	)			(210,091	)			(163,014	)
Distributions to noncontrolling interests			(24,503)				(19,134)				(13,262)
Net cash provided by financing activities			1,286,471				148,307				191,655
Net increase (decrease) in cash and cash equivalents			28,136				(79,060	)			95,938
Cash and cash equivalents, beginning of the period			47,663				126,723				30,785
Cash and cash equivalents, end of the period		$	75,799			$	47,663			$	126,723
Supplemental schedule of cash flow information
Interest paid		$	89,507			$	75,218			$	66,705
Income taxes paid			1,782				3,418				1,916
Supplemental schedule of noncash investing and financing activities:
Redemption of Operating Partnership units held by noncontrolling interests for common stock:
Noncontrolling interests in Operating Partnership		$	(28,106	)		$	10,638			$	260
Common stock and paid-in capital			28,106				(10,638	)			(260	)
Tax effect from vesting of restricted stock grants and option exercises
Other assets		$	1,727			$	3,613			$	3,193
Paid-in capital			(1,727	)			(3,613	)			(3,193	)
Acquisitions of real estate assets
Real estate assets, net		$	158,009			$	77,158			$	331,230
Notes payable assumed			—				(38,347	)			(110,803	)
Notes payable assumed and immediately defeased			—				—				(98,960	)
Value of Operating Partnership units issued			(142,399	)			(38,811	)			(119,216	)
Receivables from related parties and affiliated real estate joint ventures			(15,610	)			—				(2,251	)

See accompanying notes.

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Extra Space Storage Inc.

Notes to Consolidated Financial Statements

December 31, 2015

(amounts in thousands, except store and share data)

1.	DESCRIPTION OF BUSINESS

Extra Space Storage Inc. (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, to own, operate, manage, acquire, develop and redevelop professionally managed self-storage properties located throughout the United States. The Company continues the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. The Company’s interest in its stores is held through its operating partnership, Extra Space Storage LP (the “Operating Partnership”), which was formed on May 5, 2004. The Company’s primary assets are general partner and limited partner interests in the Operating Partnership. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). To the extent the Company continues to qualify as a REIT, it will not be subject to tax, with certain limited exceptions, on the taxable income that is distributed to its stockholders.

The Company invests in stores by acquiring wholly-owned stores or by acquiring an equity interest in real estate entities. At December 31, 2015, the Company had direct and indirect equity interests in 999 storage facilities. In addition, the Company managed 348 stores for third parties bringing the total number of stores which it owns and/or manages to 1,347. These stores are located in 36 states, Washington, D.C. and Puerto Rico.

The Company operates in three distinct segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. The rental operations activities include rental operations of stores in which we have an ownership interest. No single tenant accounts for more than 5.0% of rental income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the Company’s stores. The Company’s property management, acquisition and development activities include managing, acquiring, developing and selling stores.

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly- or majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Variable Interest Entities

The Company accounts for arrangements that are not controlled through voting or similar rights as variable interest entities (“VIEs”). An enterprise is required to consolidate a VIE if it is the primary beneficiary of the VIE. A VIE is created when (i) the equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) the entity’s equity holders as a group either: (a) lack the power, through voting or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance, (b) are not obligated to absorb expected losses of the entity if they occur, or (c) do not have the right to receive expected residual returns of the entity if they occur. If an entity is deemed to be a VIE, the enterprise that is deemed to have a variable interest, or combination of variable interests, that provides the enterprise with a controlling financial interest in the VIE, is considered the primary beneficiary and must consolidate the VIE.

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The Company has concluded that under certain circumstances when the Company enters into arrangements for the formation of joint ventures, a VIE may be created under condition (i), (ii) (b) or (c) of the previous paragraph. For each VIE created, the Company has performed a qualitative analysis, including considering which party, if any, has the power to direct the activities most significant to the economic performance of each VIE and whether that party has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If the Company is determined to be the primary beneficiary of the VIE, the assets, liabilities and operations of the VIE are consolidated with the Company’s financial statements. Additionally, the Operating Partnership has notes payable to three trusts that are VIEs under condition (ii)(a) above. Since the Operating Partnership is not the primary beneficiary of the trusts, these VIEs are not consolidated.

The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control, and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting on the accompanying consolidated financial statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Fair Value Disclosures

Derivative financial instruments

Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves.

The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. In conjunction with the Financial Accounting Standard Board’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2015, the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy.

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The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2015, aggregated by the level in the fair value hierarchy within which those measurements fall.

						Fair Value Measurements at Reporting Date Using
Description		December 31, 2015				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Other assets—Cash Flow Hedge Swap Agreements		$	4,996			$	—			$	4,996			$	—
Other liabilities—Cash Flow Hedge Swap Agreements		$	(6,991	)		$	—			$	(6,991	)		$	—

There were no transfers of assets and liabilities between Level 1 and Level 2 during the year ended December 31, 2015. The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of December 31, 2015 or 2014.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount. For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company reviews stores in the lease-up stage and compares actual operating results to original projections.

When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets.

When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize a loss on the disposal group classified as held for sale. The operations of assets held for sale or sold during the period are presented as part of normal operations for all periods presented. As of December 31, 2015, the Company had seven stores classified as held for sale. The estimated fair value less selling costs of each of these assets is greater than the carrying value of the assets, and therefore no loss has been recorded.

The Company assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be impaired annually and when events or circumstances indicate that there may be impairment. An investment is impaired if management’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount of the investment over the fair value of the investment.

As of December 31, 2015 and 2014, the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis.

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Fair Value of Financial Instruments

The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable-rate notes payable, lines of credit and other liabilities reflected in the consolidated balance sheets at December 31, 2015 and 2014, approximate fair value.

The fair values of the Company’s notes receivable from Preferred Operating Partnership unit holders and other fixed rate notes receivable was based on the discounted estimated future cash flow of the notes (categorized within Level 3 of the fair value hierarchy); the discount rate used approximated the current market rate for loans with similar maturities and credit quality. The fair values of the Company’s fixed rate notes payable and notes payable to trusts were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality. The fair value of the Company’s exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party.

The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated:

		December 31, 2015								December 31, 2014
		Fair Value				Carrying Value				Fair Value				Carrying Value
Notes receivable from Preferred Operating Partnership unit holders		$	128,216			$	120,230			$	126,380			$	120,230
Fixed rate notes receivable		$	86,814			$	84,331			$	—			$	—
Fixed rate notes payable and notes payable to trusts		$	1,828,486			$	1,806,904			$	1,320,370			$	1,283,893
Exchangeable senior notes		$	770,523			$	660,364			$	276,095			$	250,000

Real Estate Assets

Real estate assets are stated at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Interest, property taxes, and other costs associated with development incurred during the construction period are capitalized. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use.

Expenditures for maintenance and repairs are charged to expense as incurred. Major replacements and betterments that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and improvements, which are generally between five and 39 years.

In connection with the Company’s acquisition of stores, the purchase price is allocated to the tangible and intangible assets and liabilities acquired based on their fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its stores. Debt assumed as part of an acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transaction costs are expensed as incurred.

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Intangible lease rights represent: (1) purchase price amounts allocated to leases on three stores that cannot be classified as ground or building leases; these rights are amortized to expense over the life of the leases and (2) intangibles related to ground leases on six stores where the leases were assumed by the Company at rates that were lower than the current market rates for similar leases. The values associated with these assumed leases were recorded as intangibles, which will be amortized over the lease terms.

Investments in Unconsolidated Real Estate Ventures

The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting in the accompanying consolidated financial statements.

Under the equity method, the Company’s investment in real estate ventures is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated real estate ventures. For the purposes of presentation in the statement of cash flows, the Company follows the “look through” approach for classification of distributions from joint ventures. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the joint venture’s sale of assets), in which case it is reported as an investing activity.

Cash and Cash Equivalents

The Company’s cash is deposited with financial institutions located throughout the United States and at times may exceed federally insured limits. The Company considers all highly liquid debt instruments with a maturity date of three months or less to be cash equivalents.

Restricted Cash

Restricted cash is comprised of letters of credit and escrowed funds deposited with financial institutions located throughout the United States relating to earnest money deposits on potential acquisitions, real estate taxes, insurance and capital expenditures.

Other Assets

Other assets consist primarily of equipment and fixtures, customer accounts receivable, investments in trusts, notes receivable, other intangible assets, income taxes receivable, deferred tax assets, prepaid expenses and the fair value of interest rate swaps. Depreciation of equipment and fixtures is computed on a straight-line basis over three to five years.

Derivative Instruments and Hedging Activities

The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged

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forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting.

The Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio.

Risk Management and Use of Financial Instruments

In the normal course of its ongoing business operations, the Company encounters economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk on its interest-bearing liabilities. Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments. Market risk is the risk of declines in the value of stores due to changes in rental rates, interest rates or other market factors affecting the value of stores held by the Company. The Company has entered into interest rate swap agreements to manage a portion of its interest rate risk.

Exchange of Common Operating Partnership Units

Redemption of common Operating Partnership units for shares of common stock, when redeemed under the original provisions of the Operating Partnership agreement, are accounted for by reclassifying the underlying net book value of the units from noncontrolling interest to the Company’s equity.

Revenue and Expense Recognition

Rental revenues are recognized as earned based upon amounts that are currently due from tenants. Leases are generally on month-to-month terms. Prepaid rents are recognized on a straight-line basis over the term of the leases. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees, merchandise sales and truck rentals are recognized as income when earned. Management fee revenues are recognized monthly as services are performed and in accordance with the terms of the related management agreements. Equity in earnings of unconsolidated real estate entities is recognized based on our ownership interest in the earnings of each of the unconsolidated real estate entities. Interest income is recognized as earned.

Property expenses, including utilities, property taxes, repairs and maintenance and other costs to manage the facilities are recognized as incurred. The Company accrues for property tax expense based upon invoice amounts, estimates and historical trends. If these estimates are incorrect, the timing of expense recognition could be affected.

Tenant reinsurance premiums are recognized as revenue over the period of insurance coverage. The Company records an unpaid claims liability at the end of each period based on existing unpaid claims and historical claims payment history. The unpaid claims liability represents an estimate of the ultimate cost to settle all unpaid claims as of each period end, including both reported but unpaid claims and claims that may have been incurred but have not been reported. The Company uses a third party claims administrator to adjust all tenant reinsurance claims received. The administrator evaluates each claim to determine the ultimate claim loss and includes an estimate for claims that may have been incurred but not reported. Annually, a third party actuary evaluates the adequacy of the unpaid claims liability. Prior year claim reserves are adjusted as experience develops or new information becomes known. The impact of such adjustments is included in the current period operations. The unpaid claims liability is not discounted to its present value. Each tenant chooses the amount of insurance coverage they want through the tenant reinsurance program. Tenants can purchase policies in amounts of two thousand dollars to ten thousand dollars of insurance coverage in exchange for a monthly fee. As of December 31, 2015, the average insurance coverage for tenants was approximately two thousand six hundred dollars. The Company’s exposure per claim is limited by the maximum amount of coverage chosen by each

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tenant. The Company purchases reinsurance for losses exceeding a set amount for any one event. The Company does not currently have any amounts recoverable under the reinsurance arrangements.

Real Estate Sales

In general, sales of real estate and related profits/losses are recognized when all consideration has changed hands and risks and rewards of ownership have been transferred. Certain types of continuing involvement preclude sale treatment and related profit recognition; other forms of continuing involvement allow for sale recognition but require deferral of profit recognition.

Advertising Costs

The Company incurs advertising costs primarily attributable to internet, directory and other advertising. These costs are expensed as incurred. The Company recognized $8,539, $8,370, and $6,482 in advertising expense for the years ended December 31, 2015, 2014 and 2013, respectively.

Income Taxes

The Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code. In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. The Company is subject to certain state and local taxes. Provision for such taxes has been included in income tax expense on the Company’s consolidated statements of operations. For the year ended December 31, 2015, 0.0% (unaudited) of all distributions to stockholders qualified as a return of capital.

The Company has elected to treat its corporate subsidiary, Extra Space Management, Inc. (“ESMI”), as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRS may perform additional services for tenants and may engage in any real estate or non-real estate related business. A TRS is subject to corporate federal income tax. ESM Reinsurance Limited, a wholly-owned subsidiary of ESMI, generates income from insurance premiums that are subject to corporate federal income tax and state insurance premiums tax.

Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. At December 31, 2015 and 2014, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of December 31, 2015 and 2014, the Company had no interest or penalties related to uncertain tax provisions.

Stock-Based Compensation

The measurement and recognition of compensation expense for all share-based payment awards to employees and directors are based on estimated fair values. Awards granted are valued at fair value and any compensation element is recognized on a straight line basis over the service periods of each award.

Earnings Per Common Share

Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating

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securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using either the two-class, treasury stock or as if-converted method, whichever is most dilutive. Potential common shares are securities (such as options, convertible debt, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series C Convertible Redeemable Preferred Units (“Series C Units”), Series D Redeemable Preferred Units (“Series D Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right.

In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (those that reduce earnings per common share) are included. For the years ended December 31, 2015, 2014 and 2013, options to purchase approximately 62,254, 27,374, and 44,958 shares of common stock, respectively, were excluded from the computation of earnings per share as their effect would have been anti-dilutive.

The following table presents the number of Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive:

		For the Year Ended December 31,
		2015								2014								2013
		Number of Units				Equivalent Shares (if converted)				Number of Units				Equivalent Shares (if converted)				Number of Units				Equivalent Shares (if converted)
Series B Units			1,676,087				579,640				1,592,062				764,385				453,302				257,266
Series C Units			704,016				410,002				605,256				489,366				33,226				33,302
Series D Units			548,390				189,649				13,522				6,492				—				—
			2,928,493				1,179,291				2,210,840				1,260,243				486,528				290,568

The Operating Partnership had $85,364 of its 2.375% Exchangeable Senior Notes due 2033 (the “2013 Notes”) issued and outstanding as of December 31, 2015. The 2013 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2013 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2013 Notes. The exchange price of the 2013 Notes was $54.99 per share as of December 31, 2015, and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2013 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock.

The Operating Partnership had $575,000 of its 3.125% Exchangeable Senior Notes due 2035 (the “2015 Notes”) issued and outstanding as of December 31, 2015. The 2015 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2015 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2015 Notes. The exchange price of the 2015 Notes was $95.40 per share as of December 31, 2015, and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2015 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock.

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Though the Company has retained that right, Accounting Standards Codification (“ASC”) 260, “Earnings per Share,” requires an assumption that shares would be used to pay the exchange obligation in excess of the accreted principal amount, and requires that those shares be included in the Company’s calculation of weighted average common shares outstanding for the diluted earnings per share computation. For the years ended December 31, 2015, 2014 and 2013, 513,040 shares, 130,883 shares, and no shares, respectively, related to the 2013 Notes were included in the computation for diluted earnings per share. For the year ended December 31, 2015, no shares related to the 2015 Notes were included in the computation for diluted earnings per share as the exchange price exceeded the per share price of the Company’s common stock during this period. For the years ended December 31, 2014 and 2013, no shares related to the 2015 Notes were included in the computation for diluted earnings per share as the 2015 Notes were not outstanding.

For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series A Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the positive intent and ability to settle at least $115,000 of the instrument in cash (or net settle a portion of the Series A Units against the related outstanding note receivable), only the amount of the instrument in excess of $115,000 is considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46.

For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series B Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total value of the Series B Units outstanding as of December 31, 2015 of $41,902 by the closing price of the Company’s common stock as of December 31, 2015 of $88.21 per share. Assuming full exchange for common shares as of December 31, 2015, 475,027 shares would have been issued to the holders of the Series B Units.

For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series C Units into common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total value of the Series C Units outstanding as of December 31, 2015 of $29,639 by the closing price of the Company’s common stock as of December 31, 2015 of $88.21 per share. Assuming full exchange for common shares as of December 31, 2015, 336,006 shares would have been issued to the holders of the Series C Units.

For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series D Units into common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total value of the Series D Units outstanding as of December 31, 2015 of $13,710 by the closing price of the Company’s common stock as of December 31, 2015 of $88.21 per share. Assuming full exchange for common shares as of December 31, 2015, 155,422 shares would have been issued to the holders of Series D Units.

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The computation of earnings per share is as follows for the periods presented:

		For the Year Ended December 31,
		2015				2014				2013
Net income attributable to common stockholders		$	189,474			$	178,355			$	172,076
Earnings and dividends allocated to participating securities			(601	)			(490	)			(567	)
Earnings for basic computations			188,873				177,865				171,509
Earnings and dividends allocated to participating securities			—				—				567
Income allocated to noncontrolling interest—Preferred Operating Partnership (Series A Units) and Operating Partnership			14,790				13,575				7,255
Fixed component of income allocated to noncontrolling interest—Preferred Operating Partnership (Series A Units)			(5,088	)			(5,586	)			(5,750	)
Net income for diluted computations		$	198,575			$	185,854			$	173,581
Weighted average common shares outstanding:
Average number of common shares outstanding—basic			119,816,743				115,713,807				111,349,361
Series A Units			875,480				961,747				989,980
OP Units			5,451,357				4,335,837				—
Unvested restricted stock awards included for treasury stock method			—				—				425,705
Shares related to exchangeable senior notes and dilutive stock options			775,289				423,876				340,048
Average number of common shares outstanding—diluted			126,918,869				121,435,267				113,105,094
Earnings per common share
Basic		$	1.58			$	1.54			$	1.54
Diluted		$	1.56			$	1.53			$	1.53

Recently Issued Accounting Standards

In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” Under this guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. The guidance also requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company adopted this guidance effective January 1, 2015. The Company has not previously had discontinued operations and as such, this guidance did not have a significant impact on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. ASU 2014-09 outlines a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. ASU 2014-09 was originally effective for reporting periods beginning after December 15, 2016. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. In July 2015, the FASB approved a one-year deferral of the effective date of the standard. The new standard will now become effective for annual and interim periods beginning after December 15, 2017 with early adoption on the original effective date permitted. The Company has not yet selected a transition method. The Company is currently assessing the impact of the adoption of ASU 2014-09 on the Company’s consolidated financial statements.

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In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” This guidance is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. ASU 2015-02 amends the criteria for determining if a service provider possesses a variable interest in a variable interest entity (“VIE”), and eliminates the presumption that a general partner should consolidate a limited partnership. The Company does not expect the adoption of this standard to materially impact its consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03, “Interest—Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs related to a recognized debt liability to be presented as a direct deduction from the carrying amount of that debt liability. The new guidance only impacts financial statement presentation. The guidance is effective in the first quarter of 2016 and allows for early adoption. The Company adopted this guidance October 1, 2015. The Company adopted ASU 2015-03 on a retrospective basis. As a result $20,120 of unamortized debt issuance costs that had been included in the Other assets line on the consolidated balance sheets as of December 31, 2014 are now presented as direct deductions from the carrying amounts of the related debt liabilities.

In April 2015, the FASB issued ASU 2015-05, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)—Customers Accounting for Fees Paid in a Cloud Computing Arrangement,” which provides guidance regarding the accounting for fees paid by a customer in cloud computing arrangements. If a cloud computing arrangement includes a software license, the payment of fees should be accounted for in the same manner as the acquisition of other software licenses. If there is no software license, the fees should be accounted for as a service contract. The guidance is effective in fiscal years beginning after December 15, 2015 and early adoption is permitted. An entity can elect to adopt the amendments either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2015, the FASB issued ASU 2015-15, “Interest—Imputation of Interest (Subtopic 835-30) Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which provides guidance regarding the classification of debt issuance costs associated with lines of credit. Specifically, deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement is allowed. The Company adopted this guidance effective October 1, 2015. The Company continued to present the debt issuance costs and related accumulated amortization relating to its lines of credit as assets.

3.	REAL ESTATE ASSETS

The components of real estate assets are summarized as follows:

		December 31, 2015				December 31, 2014
Land—operating		$	1,384,009			$	1,132,175
Land—development			17,313				21,062
Buildings and improvements			4,886,397				3,487,935
Intangible assets—tenant relationships			95,891				72,293
Intangible lease rights			8,877				8,697
			6,392,487				4,722,162
Less: accumulated depreciation and amortization			(728,087	)			(604,336	)
Net operating real estate assets			5,664,400				4,117,826
Real estate under development/redevelopment			24,909				17,870
Net real estate assets		$	5,689,309			$	4,135,696
Real estate assets held for sale included in net real estate assets		$	10,774			$	—

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The real estate assets held for sale consist of a portfolio of six stores located in Ohio and Indiana, a single store located in Indiana, and a portion of land at an operating store in New Jersey. The estimated fair value less selling costs of each of these assets is greater than the carrying value of the assets, and therefore no loss has been recorded. The six-store portfolio is under contract, and the sale is expected to close by the second quarter of 2016. The single store located in Indiana is currently listed for sale but is not yet under contract. The Company expects that this property will be sold by the end of 2016. The land in New Jersey is also under contract and the sale is expected to close by the end of 2016. These assets held for sale are included in the rental operations segment of the Company’s segment information.

The Company amortizes to expense intangible assets—tenant relationships on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months). The Company amortizes to expense the intangible lease rights over the terms of the related leases. Amortization related to the tenant relationships and lease rights was $11,695, $12,996, and $12,065 for the years ended December 31, 2015, 2014 and 2013, respectively. The remaining balance of the unamortized lease rights will be amortized over the next 3 to 46 years.

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4.	PROPERTY ACQUISITIONS AND DISPOSITIONS

The following table shows the Company’s acquisition of operating stores for the years ended December 31, 2015 and 2014, and does not include purchases of raw land or improvements made to existing assets:

						Consideration Paid																																				Acquisition Date Fair Value
Property Location		Number of Stores		Date of Acquisition		Total				Cash Paid				Non-cash gain				Loan Assumed				Notes Issued to/ from Seller				Previous equity interest				Net Liabilities/ (Assets) Assumed				Value of OP Units Issued				Number of OP Units Issued				Land				Building				Intangible				Closing costs - expensed (1)
California		1		12/11/2015		$	9,712			$	9,716			$	—			$	—			$	—			$	—			$	(4	)		$	—				—			$	2,679			$	7,029			$	—			$	4
North Carolina		1		12/8/2015			5,307				5,333				—				—				—				—				(26	)			—				—				1,372				3,925				4				6
Oregon		1		11/24/2015			10,011				10,013				—				—				—				—				(2	)			—				—				732				9,157				103				19
Florida		3		11/19/2015			20,017				19,965				—				—				—				—				52				—				—				2,012				17,662				329				14
Texas		1		11/13/2015			14,397				7,116				—				—				—				—				60				7,221				91,434				6,643				7,551				202				1
Texas		1		10/23/2015			8,707				8,685				—				—				—				—				22				—				—				1,140				7,560				—				7
New Jersey		1		10/7/2015			7,430				7,394				—				—				—				—				36				—				—				1,057				6,037				146				190
Various (2)		122		10/1/2015			1,230,976				1,272,256				—				—				—				—				(69,936	)			28,656				376,848				179,700				978,368				18,830				54,083
Maryland		1		9/10/2015			6,165				6,183				—				—				—				—				(18	)			—				—				794				5,178				119				74
North Carolina		1		6/19/2015			6,987				6,926				—				—				—				—				61				—				—				1,408				5,461				107				11
Florida		1		6/18/2015			17,657				12,677				—				—				—				—				207				4,773				71,054				—				17,220				327				110
Florida (3)		1		6/17/2015			6,076				412				1,100				—				4,601				—				(37	)			—				—				534				5,364				125				53
Illinois		1		6/8/2015			10,046				9,970				—				—				—				—				76				—				—				964				9,085				—				(3	)
Massachusetts		1		5/13/2015			12,512				12,515				—				—				—				—				(3	)			—				—				1,625				10,875				—				12
Georgia		1		5/7/2015			6,498				6,458				—				—				—				—				40				—				—				2,087				4,295				114				2
North Carolina		1		5/5/2015			11,007				10,976				—				—				—				—				31				—				—				4,050				6,867				77				13
Georgia		1		4/24/2015			6,500				6,451				—				—				—				—				49				—				—				370				6,014				114				2
Arizona, Texas		22		4/15/2015			178,252				75,681				—				—				—				—				822				101,749				1,504,277				24,087				151,465				2,121				579
Texas		1		4/14/2015			8,650				8,580				—				—				—				—				70				—				—				619				7,861				160				10
California (4)		1		3/30/2015			12,699				1,700				1,629				—				11,009				(1,264	)			(375	)			—				—				1,025				11,479				195				—
South Carolina		2		3/30/2015			13,165				13,143				—				—				—				—				22				—				—				1,763				11,229				144				29
Virginia		1		3/17/2015			5,073				5,065				—				—				—				—				8				—				—				118				4,797				81				77
Texas		1		2/24/2015			13,570				13,519				—				—				—				—				51				—				—				1,511				11,861				182				16
Texas		3		1/13/2015			41,904				41,806				—				—				—				—				98				—				—				12,080				29,489				300				35
2015 Totals		171				$	1,663,318			$	1,572,540			$	2,729			$	—			$	15,610			$	(1,264	)		$	(68,696	)		$	142,399				2,043,613			$	248,370			$	1,335,829			$	23,780			$	55,344
Florida		4		12/23/2014		$	32,954			$	19,122			$	—			$	—			$	—			$	—			$	122			$	13,710				548,390			$	12,502			$	19,640			$	482			$	330
New Jersey, Virginia (5)		5		12/18/2014			47,747				42,167				—				—				—				—				5,580				—				—				4,259				42,440				688				360
New York (6)		1		12/11/2014			20,115				20,125				—				—				—				—				(10	)			—				—				12,085				7,665				—				365
North Carolina, South Carolina, Texas (7)		7		12/11/2014			60,279				60,086				—				—				—				—				193				—				—				19,661				36,339				876				3,403
California		1		12/9/2014			9,298				6,300				—				—				—				—				15				2,983				50,620				4,508				4,599				178				13
Colorado		1		10/24/2014			6,253				6,202				—				—				—				—				51				—				—				2,077				4,087				82				7
Georgia		1		10/22/2014			11,030				11,010				—				—				—				—				20				—				—				588				10,295				121				26
Florida		1		9/3/2014			4,259				4,225				—				—				—				—				34				—				—				529				3,604				81				45
Texas		1		8/8/2014			11,246				6,134				—				5,157				—				—				(45	)			—				—				1,047				9,969				181				49
Georgia		1		8/6/2014			11,337				11,290				—				—				—				—				47				—				—				1,132				10,080				111				14
North Carolina		1		6/18/2014			7,310				7,307				—				—				—				—				3				—				—				2,940				4,265				93				12

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						Consideration Paid																																				Acquisition Date Fair Value
Property Location		Number of Stores		Date of Acquisition		Total				Cash Paid				Non-cash gain				Loan Assumed				Notes Issued to/ from Seller				Previous equity interest				Net Liabilities/ (Assets) Assumed				Value of OP Units Issued				Number of OP Units Issued				Land				Building				Intangible				Closing costs - expensed (1)
California		1		5/28/2014			17,614				294				—				14,079				—				—				(92	)			3,333				69,735				4,707				12,604				265				38
Washington		1		4/30/2014			4,388				4,388				—				—				—				—				—				—				—				437				3,808				102				41
California (8)		3		4/25/2014			35,275				2,726				3,438				19,111				—				129				(580	)			10,451				226,285				6,853				27,666				579				177
Florida		1		4/15/2014			10,186				10,077				—				—				—				—				109				—				—				1,640				8,358				149				39
Georgia		1		4/3/2014			23,649				15,158				—				—				—				—				157				8,334				333,360				2,961				19,819				242				627
Alabama		1		3/20/2014			13,813				13,752				—				—				—				—				61				—				—				2,381				11,224				200				8
Connecticut		1		3/17/2014			15,138				15,169				—				—				—				—				(31	)			—				—				1,072				14,028				—				38
California (9)		1		3/4/2014			7,000				6,974				—				—				—				—				26				—				—				2,150				4,734				113				3
Texas		1		2/5/2014			14,191				14,152				—				—				—				—				39				—				—				1,767				12,368				38				18
Virginia		17		1/7/2014			200,588				200,525				—				—				—				—				63				—				—				53,878				142,840				2,973				897
2014 Totals		52				$	563,670			$	477,183			$	3,438			$	38,347			$	—			$	129			$	5,762			$	38,811				1,228,390			$	139,174			$	410,432			$	7,554			$	6,510

(1)	This column represents costs paid at closing. The amounts shown exclude other acquisition costs paid before or after the closing date.

(2)	This represents the acquisition of SmartStop Self Storage, Inc. (“SmartStop”). See below for more detailed information about this acquisition.

(3)	The Company determined the consideration paid for this store was below its market value, and recognized a $1,100 gain, representing the difference between the fair value of the store and the consideration paid.

(4)

This represents the acquisition of a joint venture partners’ interest in Extra Space of Sacramento One LLC (“Sacramento One”), an existing joint venture, for $1,700 in cash. The result of the acquisition is that the Company owns 100% of Sacramento One, which owned one store located in California. Prior to the acquisition date, the Company accounted for its interest in Sacramento One as an equity-method investment, and the Company also held mortgage notes receivable from Sacramento One totalling $11,009, including related interest. The total acquisition date fair value of the Company’s previous equity interest was approximately $365 and is included in consideration transfered. The Company recognized a non-cash gain of $1,629 as a result of remeasuring the fair value of its equity interest held prior to the acquisition. The store is consolidated subsequent to the acquisition as the Company owns 100% of the store.

(5)	Included in net liabilities/(assets) assumed is a $5,400 liability related to an earnout provision.

(6)	This represents the acquisition of a non-operating property that the Company plans to convert to a self-storage store.

(7)	Included in closing costs is approximately $3,271 of defeasance costs.

(8)

The Company previously held no equity interest in two of the three properties acquired. The Company acquired its joint venture partner’s 60% interest in an existing joint venture which held one property in California, resulting in full ownership by the Company. Prior to the acquisition date, the Company accounted for its 40% interest in this joint venture as an equity method investment. The total acquisition date fair value of the previous equity interest was approximately $3,567 and is included as consideration transferred. The Company recognized a non-cash gain of $3,438 as a result of remeasuring its prior equity interest in this joint venture held before the acquisition. The three properties were acquired in exchange for approximately $2,726 of cash and 226,285 Series C Units valued at $10,451.

(9)	This property was owned by Spencer F. Kirk, the Company’s Chief Executive Officer, and Kenneth M. Woolley, the Company’s Executive Chairman. The Company acquired the building on March 4, 2014. In a separate transaction on March 5, 2014, the Company acquired the land for $2,150 from a third party unrelated to the Company’s executives and terminated the existing ground lease.

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Acquisition of SmartStop

On October 1, 2015, the Company completed its previously announced acquisition of SmartStop, a public non-traded REIT (the “Transaction”), pursuant to an Agreement and Plan of Merger, dated June 15, 2015 (the “Merger Agreement”). The Company completed the Transaction as part of its strategy to acquire stores and portfolios of stores that can increase stockholder value. Under the terms of the Merger Agreement, SmartStop shareholders received $13.75 per share in cash, which represented a total purchase price of approximately $1,391,272.

In connection with the Transaction, it was agreed that certain assets would be excluded from the Company’s acquisition of SmartStop (the “Excluded Assets”). The Company had determined that the Excluded Assets were not complementary to the Company’s business or otherwise not of primary interest to the Company. These Excluded Assets were instead sold by SmartStop to Strategic 1031, LLC, a Delaware limited liability company (“Strategic 1031”), prior to the Transaction. The Excluded Assets included five SmartStop stores located in Canada, one parcel of land located in California that is under development, and SmartStop’s non-traded REIT platform. Strategic 1031 is owned by and controlled by SmartStop’s former Chief Executive Officer, President and Chairman of the Board of Directors.

The following table reconciles the purchase price to cash paid by the Company and total consideration transferred to acquire SmartStop:

Total purchase price		$	1,391,272
Less: amount paid for Excluded Assets by Strategic 1031			(90,360	)
Total purchase price attributable to the Company		$	1,300,912
Total cash paid by the Company		$	1,272,256
Fair value of OP Units issued to certain SmartStop unit holders			28,656
			1,300,912
Less: Cash paid for transaction costs			8,053
Less: Cash paid for defeasance and prepayment fees			38,360
Less: Severance and share-based compensation to SmartStop employees			7,665
Total consideration transferred		$	1,246,834

As part of this acquisition, we recorded an expense of $38,360 related to defeasance costs and prepayment penalties incurred related to the repayment of SmartStop’s existing debt as of the acquisition date. We incurred $8,053 of professional fees/closing costs, $6,338 of severance-related costs, and $1,327 of other payroll-related costs for a total of $54,078 that was paid at closing. Another $9,043 of other acquisition related costs were incurred that were not paid in connection with the closing for a total of $63,121.

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The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. The company is in the process of finalizing a third party valuation. As such the allocation of fair value between land, buildings and intangibles is subject to change. The Company’s allocation of consideration transferred for SmartStop is as follows:

Land		$	179,700
Buildings			978,368
Intangibles			18,830
Investments in unconsolidated real estate ventures			60,981
Other assets			34,500
Total assets acquired			1,272,379
Accounts payable and accrued liabilities assumed			17,064
Other liabilities assumed			8,481
Total net assets acquired		$	1,246,834

The Company agreed to loan Strategic 1031 $84,331 to finance the purchase of the Excluded Assets. The loans are secured by an interest in the Excluded Assets and accrue interest at 7.0% per annum. The loans have a term of 365 days after the closing of the Transaction, due on September 30, 2016. These loans receivable are included in Other assets on the Company’s consolidated balance sheets.

Pro Forma Information

As noted above, during the year ended December 31, 2015, the Company acquired 171 operating stores, including the 122 stores acquired in conjunction with the acquisition of SmartStop. The following pro forma financial information includes 137 of the 171 operating stores acquired. 34 stores were excluded as it was impractical to obtain the historical information from the previous owners and in total they represent and immaterial amount of total revenues. The following pro forma financial information is based on the combined historical financial statements of the Company and 137 of the stores acquired, and presents the Company’s results as if the acquisitions had occurred as of January 1, 2014 (unaudited):

		For the Year Ended December 31,
		2015				2014
		Pro Forma				Pro Forma
Total revenues		$	860,550			$	746,601
Net income attributable to common stockholders		$	253,476			$	163,898

The Total revenues for SmartStop in the table above represent the revenues of SmartStop for the period prior to acquisition, less revenues attributed to the Excluded Assets. The Net income attributable to common stockholders for SmartStop in the table above represents primarily the expenses of SmartStop for the period prior to acquisition (less expenses related to the Excluded Assets), plus estimated additional depreciation, amortization, interest expenses and the elimination of non-recurring acquisition costs recorded by SmartStop and the Company.

The unaudited pro forma results do not reflect any operating efficiency or potential cost savings which may result from the acquisition of SmartStop. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operation of the combined company would have been if the acquisition had occurred at the beginning of the period presented nor are they indicative of future results of operations and are not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of January 1, 2014.

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The following table summarizes the revenues and earnings related to the 171 stores acquired during 2015 since their acquisition dates, which are included in the Company’s consolidated income statement for the year ended December 31, 2015:

		For the Year Ended December 31, 2015
Total revenues		$	46,490
Net income attributable to common stockholders		$	8,393

Other Acquisitions and Disposals

On December 11, 2013, the Company sold 50% of its ownership in a parcel of undeveloped land held for sale located in California for $2,025. The buyer holds their 50% interest as a tenant in common. No gain or loss was recorded as a result of the sale. As the Company’s interest is now held as a tenant in common, the value of the land was reclassified from land to investment in unconsolidated real estate ventures on the Company’s consolidated balance sheets.

On December 6, 2013, the Company sold a store located in Florida for $3,250 in cash. As a result of this transaction, a gain of $160 was recorded.

In June 2013, the Company recorded a gain of $800 due to the condemnation of a portion of land at one store in California that resulted from eminent domain.

On May 16, 2013, the Company sold a store located in New York for $950. No gain or loss was recorded as a result of the sale.

Losses on Earnouts from Prior Acquisitions

During 2012, the Company acquired a portfolio of ten stores located in New Jersey and New York. As part of this acquisition, the Company agreed to make an additional cash payment to the sellers if the acquired stores exceeded a specified amount of net rental income two years after the acquisition date. At the acquisition date, the Company believed that it was unlikely that any significant payment would be made as a result of this earnout provision. The rental growth of the stores was significantly higher than expected, resulting in a payment to the sellers of $7,785. This amount is included in gain (loss) on real estate transactions and earnout from prior acquisitions on the Company’s consolidated statements of operations for the year ended December 31, 2014.

During 2011, the Company acquired a store located in Florida. As part of this acquisition, the Company agreed to make an additional cash payment to the sellers if the acquired store exceeded a specified amount of net rental income for any twelve-month period prior to June 30, 2015. At the acquisition date, $133 was recorded as the estimated amount that would be due, and the Company believed that it was unlikely that any significant additional payment would be made as a result of this earnout provision. Because the rental growth of the stores was trending significantly higher than expected, the Company estimated that an additional earnout payment of $2,500 would be due to the seller as of December 31, 2014. This amount is included in gain (loss) on real estate transactions and earnout from prior acquisitions on the Company’s consolidated statements of operations for the year ended December 31, 2014. During the year ended December 31, 2015, the Company recorded a gain of $400 to adjust the existing liability to the actual amount owed to the sellers as of June 30, 2015. This gain is included in gain (loss) on real estate transactions and earnout from prior acquisitions on the Company’s consolidated statements of operations for the year ended December 31, 2015.

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5.	INVESTMENTS IN UNCONSOLIDATED REAL ESTATE VENTURES

Investments in unconsolidated real estate ventures consist of the following:

		Equity Ownership %		Excess Profit Participation %		Investment Balance at December 31,
				2015				2014
VRS Self Storage LLC (“VRS”)		45%		54%		$	39,091			$	40,363
Storage Portfolio I LLC (“SP I”)		25%		25-40%			11,813				12,042
PRISA Self Storage LLC (“PRISA”)		2%		17%			10,309				10,520
PRISA II Self Storage LLC (“PRISA II”)		2%		17%			8,323				9,008
Extra Space West Two LLC (“ESW II”)		5%		40%			4,122				4,197
WCOT Self Storage LLC (“WCOT”)		5%		20%			3,783				3,972
Clarendon Storage Associates Limited Partnership (“Clarendon”)		50%		50%			3,131				3,148
Extra Space of Santa Monica LLC (“ESSM”)		48%		48%			1,200				1,153
Extra Space West One LLC (“ESW”)		5%		40%			(405	)			(95	)
Extra Space Northern Properties Six LLC (“ESNPS”)		10%		35%			(470	)			(87	)
Other minority owned properties		18-50%		19-50%			6,148				1,490
							87,045				85,711
Investments in Strategic Storage Growth Trust							15,962				—
Total						$	103,007			$	85,711

In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash/profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash/profits than its equity interest.

In accordance with ASC 810, the Company reviews all of its joint venture relationships quarterly to ensure that there are no entities that require consolidation. As of December 31, 2015, there were no previously unconsolidated entities that were required to be consolidated as a result of this review.

On December 30, 2015, the Company entered into a new joint venture, ESS-H Bloomfield Investment LLC (“Bloomfield”). Bloomfield owns a single store in New Jersey. The Company contributed $2,885 for a 50% interest in Bloomfield. The Company’s investment in Bloomfield is included in Other minority owned properties in the table above.

In December 2013 and May 2014, the Company acquired twelve stores located in California from entities associated with Grupe Properties Co. Inc. (“Grupe.”) As part of the Grupe acquisition, the Company acquired its joint venture partners’ 60% to 65% equity interests in six stores. The Company previously held the remaining 35% to 40% interests in these stores through six separate joint ventures with Grupe. Prior to the acquisition, the Company accounted for its interests in these joint ventures as equity-method investments. The Company recognized a non-cash gain of $3,438 during the year ended December 31, 2014 as a result of re-measuring the fair value of its equity interest in one of these joint ventures held before the acquisition. During the year ended December 31, 2014, the Company recorded a gain of $584 as a result of the final cash distributions received from the other five joint ventures associated with the acquisitions that were completed during 2013. The Company recognized non-cash gains of $9,339 during the year ended December 31, 2013 as a result of re-measuring its prior equity interests in five joint ventures held before the acquisition.

On November 1, 2013, the Company acquired its joint venture partner’s 49% interest in HSRE-ESP IA, LLC (“HSRE”), an existing joint venture, for $43,475 in cash and the assumption of a $96,516 loan. The

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result of this acquisition is that the Company owns a 99% interest in HSRE. The joint venture partner retained a 1% interest, valued at $870, which was recorded at fair value based on the fair value of the assets in the joint venture and is included in other noncontrolling interests on the Company’s consolidated balance sheets. HSRE

owns 19 stores in various states. The stores are now consolidated as the Company owns the majority interest in the joint venture. Prior to the acquisition date, the Company accounted for its 50% interest in the joint venture as an equity-method investment. The acquisition date fair value of the previous equity interest was approximately $43,500, and is included as consideration transferred. The Company recognized a non-cash gain of $34,137 during the year ended December 31, 2013 as a result of re-measuring its prior equity interest in HSRE held before the acquisition. On June 11, 2015, the Company acquired its joint venture partners’ remaining 1% interest in HSRE for $1,267. Since the Company retained its controlling interest, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to zero to reflect this purchase, and the difference between the price paid by the Company and the carrying amount of the noncontrolling interest was recorded as an adjustment to equity attributable to the Company.

On February 13, 2013, the Company acquired its joint venture partner’s 48% equity interest in Extra Space of Eastern Avenue LLC (“Eastern Avenue”), which owned one store located in Maryland, for approximately $5,979. Prior to the acquisition, the remaining 52% interest was owned by the Company, which accounted for its investment in Eastern Avenue using the equity method. The Company recorded a non-cash gain of $2,215 related to this transaction, which represents the increase in fair value of the Company’s interest in Eastern Avenue from its formation to the acquisition date.

On February 13, 2013, the Company acquired its joint venture partner’s 61% equity interest in Extra Space of Montrose Avenue LLC (“Montrose”), which owned one store located in Illinois, for approximately $6,878. Prior to the acquisition, the remaining 39% interest was owned by the Company, which accounted for its investment in Montrose using the equity method. The Company recorded a non-cash gain of $341 related to this transaction, which represents the increase in fair value of the Company’s interest in the joint venture from its formation to the acquisition date.

Equity in earnings of unconsolidated real estate ventures consists of the following:

		For the Year Ended December 31,
		2015				2014				2013
Equity in earnings of VRS		$	4,041			$	3,510			$	3,464
Equity in earnings of SP I			1,951				1,541				1,243
Equity in earnings of PRISA			1,013				929				890
Equity in earnings of PRISA II			793				764				703
Equity in earnings of ESW II			145				102				50
Equity in earnings of WCOT			569				498				448
Equity in earnings of Clarendon			581				551				516
Equity in earnings of ESSM			493				424				369
Equity in earnings of ESW			1,875				1,571				1,406
Equity in earnings of ESNPS			633				513				461
Equity in earnings of HSRE			—				—				1,428
Equity in earnings of other minority owned properties			257				138				675
		$	12,351			$	10,541			$	11,653

Equity in earnings of ESW II, SP I and VRS includes the amortization of the Company’s excess purchase price of $26,806 of these equity investments over its original basis. The excess basis is amortized over 40 years.

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Information (unaudited) related to the real estate ventures’ debt at December 31, 2015, is presented below:

		Loan Amount				Current Interest Rate				Debt Maturity
VRS—Swapped to fixed		$	52,100				3.19	%		June 2020
SP I—Fixed			88,975				4.66	%		April 2018
PRISA			—				—			Unleveraged
PRISA II			—				—			Unleveraged
ESW II—Swapped to fixed			18,505				3.57	%		February 2019
WCOT—Swapped to fixed			87,500				3.34	%		August 2019
Clarendon—Swapped to fixed			7,746				5.93	%		September 2018
ESSM—Variable			13,629				4.88	%		May 2021
ESW—Variable			17,150				1.67	%		August 2020
ESNPS—Variable			34,500				2.44	%		July 2025
Other minority owned properties			20,614				Various			Various

Combined, condensed unaudited financial information of VRS, SP I, PRISA, PRISA II, ESW II, WCOT, ESW and ESNPS as of December 31, 2015 and 2014, and for the years ended December 31, 2015, 2014 and 2013, follows:

		December 31,
		2015				2014
Balance Sheets:
Assets:
Net real estate assets		$	1,389,974			$	1,442,755
Other			33,703				34,636
		$	1,423,677			$	1,477,391
Liabilities and members’ equity:
Notes payable		$	299,730			$	301,267
Other liabilities			25,715				23,490
Members’ equity			1,098,232				1,152,634
		$	1,423,677			$	1,477,391

		For the Year Ended December 31,
		2015				2014				2013
Statements of Income:
Rents and other income		$	286,857			$	273,231			$	260,487
Expenses			(155,851	)			(153,973	)			(149,595	)
Gain on sale of real estate			60,495				—				—
Net income		$	191,501			$	119,258			$	110,892

In March 2015, PRISA II sold a single store located in New York and recorded a gain of $60,495.

The Company had no consolidated VIEs for the years ended December 31, 2015 or 2014.

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6.	OTHER ASSETS

The components of other assets are summarized as follows:

		December 31, 2015				December 31, 2014
Equipment and fixtures		$	30,547			$	24,913
Less: accumulated depreciation			(19,609	)			(15,183	)
Other intangible assets			2,172				7,130
Deferred financing costs, net-lines of Credit			1,735				1,363
Prepaid expenses and deposits			11,463				8,891
Receivables, net			46,774				31,946
Notes receivable from Strategic 1031			84,331				—
Other notes receivable			4,350				9,661
Investments in Trusts			3,590				3,590
Fair value of interest rate swaps			4,996				3,583
		$	170,349			$	75,894

The notes receivable from Strategic 1031 represents the $84,331 principal amount loaned to Strategic 1031 to finance Strategic 1031’s acquisition of the Excluded Assets in conjunction with the Company’s acquisition of SmartStop.

7.	NOTES PAYABLE

The components of notes payable are summarized as follows:

		December 31, 2015				December 31, 2014
Fixed Rate
Mortgage loans with banks (including loans subject to interest rate swaps) bearing interest at fixed rates between 2.8% and 6.7%. The loans are collateralized by mortgages on real estate assets and the assignment of rents. Principal and interest payments are made monthly with all outstanding principal and interest due between March 2016 and February 2023.		$	1,613,490			$	1,164,303
Unsecured loan with bank (loan subject to an interest rate swap) bearing interest at a fixed rate of 3.1%. Principal and interest payments are made monthly with outstanding principal and interest due March 2020.			73,825				—
Variable Rate
Mortgage loans with banks bearing floating interest rates based on 1 month LIBOR. Interest rates based on LIBOR are between LIBOR plus 1.6% (2.0% at December 31, 2015 and 1.8% at December 31, 2014) and LIBOR plus 2.0% (2.4% at December 31, 2015 and 2.2% at December 31, 2014). The loans are collateralized by mortgages on real estate assets and the assignment of rents. Principal and interest payments are made monthly with all outstanding principal and interest due between July 2016 and March 2021.			1,094,985				707,764
Total			2,782,300				1,872,067
Plus: Premium on notes payable			872				3,281
Less: unamortized debt issuance costs			(24,605	)			(16,367	)
Total		$	2,758,567			$	1,858,981

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The following table summarizes the scheduled maturities of notes payable at December 31, 2015:

2016		$	167,477
2017			418,179
2018			416,512
2019			438,244
2020			872,441
Thereafter			469,447
		$	2,782,300

Certain mortgage and construction loans with variable interest rates are subject to interest rate floors starting at 1.90%. Real estate assets are pledged as collateral for the notes payable. Of the Company’s $2,782,300 principal amount in notes payable outstanding at December 31, 2015, $2,430,623 were recourse due to guarantees or other security provisions. The Company is subject to certain restrictive covenants relating to the outstanding notes payable. The Company was in compliance with all financial covenants at December 31, 2015.

8.	DERIVATIVES

The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings.

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (“OCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A portion of these changes is excluded from accumulated other comprehensive income as it is allocated to noncontrolling interests. During the years ended December 31, 2015, 2014 and 2013, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. During 2016, the Company estimates that an additional $12,440 will be reclassified as an increase to interest expense.

The following table summarizes the terms of the Company’s 29 derivative financial instruments, which have a total combined notional amount of $1,743,790 as of December 31, 2015:

Hedge Product		Range of Notional Amounts		Strike		Effective Dates		Maturity Dates
Swap Agreements		$5,058 – $126,000		0.8% – 3.9%		10/3/2011 – 11/1/2015		9/20/2018 – 2/1/2023

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Fair Values of Derivative Instruments

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets:

		Asset (Liability) Derivatives
		December 31, 2015				December 31, 2014
Derivatives designated as hedging instruments:		Fair Value
Other assets		$	4,996			$	3,583
Other liabilities		$	(6,991	)		$	(3,533	)

Effect of Derivative Instruments

The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the periods presented. No tax effect has been presented as the derivative instruments are held by the Company:

Type		Classification of Income (Expense)				For the Year Ended December 31,
		2015				2014				2013
Swap Agreements			Interest expense			$	(12,487	)		$	(8,780	)		$	(8,917	)

		Gain (loss) recognized in OCI								Location of amounts reclassified from OCI into income				Gain (loss) reclassifed from OCI
		For the Year Ended December 31,									For the Year Ended December 31,
Type		2015				2014					2015				2014
Swap Agreements		$	(17,669	)		$	(18,557	)			Interest expense			$	(12,487	)		$	(8,780	)

Credit-Risk-Related Contingent Features

The Company has agreements with some of its derivative counterparties that contain provisions pursuant to which, the Company could be declared in default of its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender.

The Company also has an agreement with some of its derivative counterparties that incorporates the loan covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement.

As of December 31, 2015, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $6,991. As of December 31, 2015, the Company had not posted any collateral related to these agreements. If the Company had breached any of these provisions as of December 31, 2015, it could have been required to settle its obligations under the agreements at their termination value of $2,995, including accrued interest.

9.	NOTES PAYABLE TO TRUSTS

During July 2005, ESS Statutory Trust III (the “Trust III”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership, issued an aggregate of $40,000 of preferred securities which mature on July 31, 2035. In addition, the Trust III issued 1,238 of Trust common securities to the Operating Partnership for a purchase price of $1,238. On July 27, 2005, the proceeds from the sale of the preferred and common securities of $41,238 were loaned in the form of a note to the Operating

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Partnership (“Note 3”). Note 3 had a fixed rate of 6.91% through July 31, 2010, and then was payable at a variable rate equal to the three-month LIBOR plus 2.40% per annum. Effective July 11, 2011, the Trust III entered into an interest rate swap that fixes the interest rate to be paid at 4.99% per annum and matures July 11, 2018. The interest on Note 3, payable quarterly, will be used by the Trust III to pay dividends on the trust preferred securities. The trust preferred securities became redeemable by the Trust III with no prepayment premium on July 27, 2010.

During May 2005, ESS Statutory Trust II (the “Trust II”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership of the Company, issued an aggregate of $41,000 of preferred securities which mature on June 30, 2035. In addition, the Trust II issued 1,269 of Trust common securities to the Operating Partnership for a purchase price of $1,269. On May 24, 2005, the proceeds from the sale of the preferred and common securities of $42,269 were loaned in the form of a note to the Operating Partnership (“Note 2”). Note 2 had a fixed rate of 6.67% through June 30, 2010, and then was payable at a variable rate equal to the three-month LIBOR plus 2.40% per annum. Effective July 11, 2011, the Trust II entered into an interest rate swap that fixes the interest rate to be paid at 4.99% per annum and matures July 11, 2018. The interest on Note 2, payable quarterly, will be used by the Trust II to pay dividends on the trust preferred securities. The trust preferred securities became redeemable by the Trust II with no prepayment premium on June 30, 2010.

During April 2005, ESS Statutory Trust I (the “Trust”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership of the Company issued an aggregate of $35,000 of trust preferred securities which mature on June 30, 2035. In addition, the Trust issued 1,083 of Trust common securities to the Operating Partnership for a purchase price of $1,083. On April 8, 2005, the proceeds from the sale of the trust preferred and common securities of $36,083 were loaned in the form of a note to the Operating Partnership (the “Note”). The Note has a variable rate equal to the three-month LIBOR plus 2.25% per annum. Effective June 30, 2010, the Trust entered into an interest rate swap that fixes the interest rate to be paid at 5.14% per annum and matures on June 30, 2018. The interest on the Note, payable quarterly, will be used by the Trust to pay dividends on the trust preferred securities. The trust preferred securities are redeemable by the Trust with no prepayment premium.

Trust, Trust II and Trust III (together, the “Trusts”) are VIEs because the holders of the equity investment at risk (the trust preferred securities) do not have the power to direct the activities of the entities that most significantly affect the entities’ economic performance because of their lack of voting or similar rights. Because the Operating Partnership’s investment in the Trusts’ common securities was financed directly by the Trusts as a result of its loan of the proceeds to the Operating Partnership, that investment is not considered to be an equity investment at risk. The Operating Partnership’s investment in the Trusts is not a variable interest because equity interests are variable interests only to the extent that the investment is considered to be at risk, and therefore the Operating Partnership cannot be the primary beneficiary of the Trusts. Since the Company is not the primary beneficiary of the Trusts, they have not been consolidated. A debt obligation has been recorded in the form of notes as discussed above for the proceeds, which are owed to the Trusts by the Company. The Company has also recorded its investment in the Trusts’ common securities as other assets.

The Company has not provided financing or other support during the periods presented to the Trusts that it was not previously contractually obligated to provide. The Company’s maximum exposure to loss as a result of its involvement with the Trusts is equal to the total amount of the notes discussed above less the amounts of the Company’s investments in the Trusts’ common securities. The net amount is the notes payable that the Trusts owe to third parties for their investments in the Trusts’ preferred securities.

The notes payable to trusts are presented net of unamortized deferred financing costs of $2,399 and $2,531 as of December 31, 2015 and 2014, respectively.

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Following is a tabular comparison of the liabilities the Company has recorded as a result of its involvements with the Trusts to the maximum exposure to loss the Company is subject to related to the Trusts as of December 31, 2015:

		Notes payable				Investment				Maximum
		to Trusts				Balance				exposure to loss				Difference
Trust		$	36,083			$	1,083			$	35,000			$	—
Trust II			42,269				1,269				41,000				—
Trust III			41,238				1,238				40,000				—
			119,590				3,590				116,000
Unamortized debt issuance costs			(2,399	)
		$	117,191			$	3,590			$	116,000			$	—

10.	EXCHANGEABLE SENIOR NOTES

In September 2015, the Operating Partnership issued $575,000 of its 3.125% Exchangeable Senior Notes due 2035. Costs incurred to issue the 2015 Notes were approximately $11,992, consisting primarily of a 2% underwriting fee. These costs are being amortized as an adjustment to interest expense over five years, which represents the estimated term based on the first available redemption date, and are included in other assets in the condensed consolidated balance sheets. The 2015 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on April 1 and October 1 of each year beginning April 1, 2016, until the maturity date of October 1, 2035. The Notes bear interest at 3.125% per annum and contain an exchange settlement feature, which provides that the 2015 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2015 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2015 Notes as of December 31, 2015 was approximately 10.48 shares of the Company’s common stock per $1,000 principal amount of the 2015 Notes.

The Operating Partnership may redeem the 2015 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after October 5, 2020, the Operating Partnership may redeem the 2015 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2015 Notes. The holders of the 2015 Notes have the right to require the Operating Partnership to repurchase the 2015 Notes for cash, in whole or in part, on October 1 of the years 2020, 2025 and 2030, (unless the Operating Partnership has called the 2015 Notes for redemption), and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2015 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2015 Notes, which may result in the accelerated maturity of the 2015 Notes.

On June 21, 2013, the Operating Partnership issued $250,000 of its 2.375% Exchangeable Senior Notes due 2033 at a 1.5% discount, or $3,750. Costs incurred to issue the 2013 Notes were approximately $1,672. These costs are being amortized as an adjustment to interest expense over five years, which represents the estimated term based on the first available redemption date, and are included in other assets in the condensed consolidated balance sheets. The 2013 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2014, until the maturity date of July 1, 2033. The 2013 Notes bear interest at 2.375% per annum and contain an exchange settlement feature, which provides that the 2013 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2013 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2013 Notes as of December 31, 2015 was approximately 18.18 shares of the Company’s common stock per $1,000 principal amount of the 2013 Notes.

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Additionally, the 2013 Notes and the 2015 Notes can be exchanged during any calendar quarter, if the last reported sale price of the common stock of the Company is greater than or equal to 130% of the exchange price for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter. The price of the Company’s common stock exceeded 130% of the exchange price for the required time period for the 2013 Notes during the quarter ended December 31, 2015. Therefore, holders of the 2013 Notes may elect to exchange such notes during the quarter ending March 31, 2016. The price of the Company’s common stock did not exceed 130% of the exchange price for the required time period for the 2015 Notes during the quarter ended December 31, 2015.

The Operating Partnership may redeem the 2013 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after July 5, 2018, the Operating Partnership may redeem the 2013 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2013 Notes. The holders of the 2013 Notes have the right to require the Operating Partnership to repurchase the 2013 Notes for cash, in whole or in part, on July 1 of the years 2018, 2023 and 2028, and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2013 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2013 Notes, which may result in the accelerated maturity of the 2013 Notes.

GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the condensed consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date, July 1, 2018 for the 2013 Notes and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0%, which approximates the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance.

Information about the carrying amount of the equity component, the principal amount of the liability component, its unamortized discount and its net carrying amount were as follows for the periods indicated:

		December 31, 2015				December 31, 2014
Carrying amount of equity component—2013 Notes		$	—			$	14,496
Carrying amount of equity component—2015 Notes			22,597				—
Carrying amount of equity components		$	22,597			$	14,496
Principal amount of liability component 2013 Notes		$	85,364			$	250,000
Principal amount of liability component 2015 Notes			575,000				—
Unamortized discount—equity component—2013 Notes			(2,605	)			(10,448	)
Unamortized discount—equity component—2015 Notes			(21,565	)			—
Unamortized cash discount—2013 Notes			(633	)			(2,606	)
Unamortized debt issuance costs			(11,698	)			(1,222	)
Net carrying amount of liability components		$	623,863			$	235,724

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The amount of interest cost recognized relating to the contractual interest rate and the amortization of the discount on the liability component for the 2013 and 2015 senior notes was as follows for the periods indicated:

		For the Year Ended December 31,
		2015				2014				2013
Contractual interest		$	9,939			$	5,936			$	3,134
Amortization of discount			3,310				2,683				1,404
Total interest expense recognized		$	13,249			$	8,619			$	4,538

Repurchase of 2013 Notes

As part of the 2015 Notes offering, the Company repurchased $164,636 of the 2013 Notes for $227,212 on September 15, 2015. The Company allocated the value of the consideration paid to repurchase the 2013 Notes (1) to the extinguishment of the liability component and (2) to the reacquisition of the equity component. The amount allocated to the extinguishment of the liability component is equal to the fair value of that component immediately prior to extinguishment. The difference between the consideration attributed to the extinguishment of the liability component and the sum of (a) the net carrying amount of the repurchased liability component, and (b) the related unamortized debt issuance costs, is recognized as a gain on debt extinguishment. The remaining settlement consideration is allocated to the reacquisition of the equity component of the repurchased 2013 Notes and recognized as a reduction of stockholders’ equity.

Information about the repurchase is as follows:

		September 15, 2015
Principal amount repurchased		$	164,636
Amount allocated to:
Extinguishment of liability component		$	157,100
Reacquisition of equity component			70,112
Total cash paid for repurchase		$	227,212
Exchangeable senior notes repurchased		$	164,636
Extinguishment of liability component			(157,100	)
Discount on exchangeable senior notes			(6,931	)
Related debt issuance costs			(605	)
Gain/(Loss) on repurchase		$	—

11.	LINES OF CREDIT

All of the Company’s lines of credit are guaranteed by the Company and secured by mortgages on certain real estate assets. The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated:

		As of December 31, 2015
Line of Credit		Amount Drawn				Capacity				Interest Rate		Origination Date		Maturity		Basis Rate (1)		Notes
Credit Line 1		$	36,000			$	180,000			2.1%		6/4/2010		6/30/2018		LIBOR plus 1.7%		(2)
Credit Line 2			—				50,000			2.2%		11/16/2010		2/13/2017		LIBOR plus 1.8%		(3)
Credit Line 3			—				80,000			2.1%		4/29/2011		11/18/2016		LIBOR plus 1.7%		(3)
Credit Line 4			—				50,000			2.1%		9/29/2014		9/29/2017		LIBOR plus 1.7%		(3)
		$	36,000			$	360,000

(1)	30-day USD LIBOR

(2)	One two-year extension available

(3)	Two one-year extensions available

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12.	OTHER LIABILITIES

The components of other liabilities are summarized as follows:

		December 31, 2015				December 31, 2014
Deferred rental income		$	35,904			$	28,485
Lease obligation liability			—				713
Fair value of interest rate swaps			6,991				3,533
Income taxes payable			2,223				672
Deferred tax liability			10,728				5,367
Earnout provisions on acquisitions			5,510				8,033
Unpaid claims liability			11,313				1,832
Other miscellaneous liabilities			7,820				6,084
		$	80,489			$	54,719

Included in the unpaid claims liability are claims related to the Company’s tenant reinsurance program. For the years ended December 31, 2015, 2014 and 2013, the number of claims made were 3,959, 2,942 and 2,316, respectively. The following table presents information on the portion of the Company’s unpaid claims liability that relates to tenant insurance for the periods indicated:

		For the Year Ended December 31,
Tenant Reinsurance Claims:		2015				2014				2013
Unpaid claims liability at beginning of year		$	3,121			$	2,112			$	1,414
Claims and claim adjustment expense for claims incurred in the current year			6,421				5,126				3,817
Claims and claim adjustment expense for claims incurred in the prior years			—				(345	)			(116	)
Payments for current year claims			(4,283	)			(2,954	)			(1,751	)
Payments for prior year claims			(1,351	)			(818	)			(1,252	)
Unpaid claims liability at the end of the year		$	3,908			$	3,121			$	2,112

13.	RELATED PARTY AND AFFILIATED REAL ESTATE JOINT VENTURE TRANSACTIONS

The Company provides management services to certain joint ventures, third parties and other related party stores. Management agreements provide generally for management fees of 6.0% of cash collected from total revenues for the management of operations at the stores. In addition, the Company receives an asset management fee equal to 50 basis points multiplied by the total asset value of the stores owned by the SPI joint venture, provided certain requirements are met.

Management fee revenues for related party and affiliated real estate joint ventures and other income are summarized as follows:

				For the Year Ended December 31,
Entity		Type		2015				2014				2013
ESW		Affiliated real estate joint ventures		$	515			$	480			$	450
ESW II		Affiliated real estate joint ventures			452				410				382
ESNPS		Affiliated real estate joint ventures			584				550				528
ESSM		Affiliated real estate joint ventures			152				132				117
HSRE		Affiliated real estate joint ventures			—				1,201				1,146
PRISA		Affiliated real estate joint ventures			5,809				5,466				5,215
PRISA II		Affiliated real estate joint ventures			4,703				4,635				4,397
VRS		Affiliated real estate joint ventures			1,398				1,326				1,286
WCOT		Affiliated real estate joint ventures			1,799				1,680				1,601
SP I		Affiliated real estate joint ventures			2,075				1,999				1,953
Other		Franchisees, third parties and other			16,674				10,336				9,539
				$	34,161			$	28,215			$	26,614

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Receivables from related parties and affiliated real estate joint ventures balances are summarized as follows:

		December 31, 2015				December 31, 2014
Mortgage notes receivable		$	—			$	10,590
Other receivables from stores			2,205				1,188
		$	2,205			$	11,778

Other receivables from stores consist of amounts due for management fees, asset management fees and expenses paid on behalf of the stores that the Company manages. The Company believes that all of these related party and affiliated real estate joint venture receivables are fully collectible. The Company does not have any payables to related parties at December 31, 2015 or 2014.

The Company has entered into an annual aircraft dry lease and service and management agreement with SpenAero, L.C. (“SpenAero”), an affiliate of Spencer F. Kirk, the Company’s Chief Executive Officer. Under the terms of the agreement, the Company pays a defined hourly rate for use of the aircraft. During the years ended December 31, 2015, 2014 and 2013, the Company paid SpenAero $1,163, $1,059 and $803, respectively. The services that the Company receives from SpenAero are similar in nature and comparable in price to those that are provided to other outside third parties.

14.	STOCKHOLDERS’ EQUITY

The Company’s charter provides that it can issue up to 500,000,000 shares of common stock, $0.01 par value per share and 50,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2015, 124,119,531 shares of common stock were issued and outstanding, and no shares of preferred stock were issued or outstanding.

All holders of the Company’s common stock are entitled to receive dividends and to one vote on all matters submitted to a vote of stockholders. The transfer agent and registrar for the Company’s common stock is American Stock Transfer & Trust Company.

On June 22, 2015, the Company issued and sold 6,325,000 shares of its common stock in a public offering at a price of $68.15 per share. The Company received gross proceeds of $431,049. The underwriting discount and transaction costs were $14,438, resulting in net proceeds of $416,611.

On August 28, 2015, the Company filed a $400,000 “at the market” equity program with the Securities and Exchange Commission, and entered into separate equity distribution agreements with five sales agents. Under the terms of the equity distribution agreements, the Company may from time to time offer and sell shares of common stock, up to the aggregate offering price of $400,000, through its sales agents. During the year ended December 31, 2015, the Company sold 410,000 shares of common stock at an average sales price of $75.17 per share, resulting in net proceeds of $30,266.

On November 8, 2013, the Company issued and sold 4,500,000 shares of its common stock in a public offering at a price to the underwriter of $45.81 per share. The Company received gross proceeds of $206,145. Transaction costs were $157, resulting in net proceeds of $205,988.

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15.	NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS

Classification of Noncontrolling Interests

GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity.

The Company has evaluated the terms of the Operating Partnership’s preferred units and classifies the noncontrolling interest represented by such preferred units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made.

Series A Participating Redeemable Preferred Units

On June 15, 2007, the Operating Partnership entered into a Contribution Agreement with various limited partnerships affiliated with AAAAA Rent-A-Space to acquire ten stores in exchange for 989,980 Series A Units. The stores are located in California and Hawaii.

The partnership agreement of the Operating Partnership (as amended, the “Partnership Agreement”) provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

Under the Partnership Agreement, Series A Units in the amount of $115,000 bear a fixed priority return of 5.0% and have a fixed liquidation value of $115,000. The remaining balance participates in distributions with, and has a liquidation value equal to, that of the common OP Units. The Series A Units became redeemable at the option of the holder on September 1, 2008, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock.

On June 25, 2007, the Operating Partnership loaned the holders of the Series A Units $100,000. The note receivable bears interest at 4.85%. During 2013, a loan amendment was signed extending the maturity date to September 1, 2020. The loan is secured by the borrower’s Series A Units. The holders of the Series A Units could redeem up to 114,500 Series A Units prior to the maturity date of the loan. If any redemption in excess of 114,500 Series A Units occurs prior to the maturity date, the holder of the Series A Units is required to repay the loan as of the date of that redemption. On October 3, 2014, the holders of the Series A Units redeemed 114,500 Series A Units for $4,794 in cash and 280,331 shares of common stock. No additional redemption of Series A Units can be made without repayment of the loan. The Series A Units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan receivable is also the holder of the Series A Units.

Series B Redeemable Preferred Units

On April 3, 2014, the Operating Partnership completed the purchase of a store located in Georgia. This store was acquired in exchange for $15,158 of cash and 333,360 Series B Units valued at $8,334.

On August 29, 2013, the Operating Partnership completed the purchase of 19 out of 20 stores affiliated with All Aboard Mini Storage, all of which are located in California. On September 26, 2013, the Operating

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Partnership completed the purchase of the remaining facility. These stores were acquired in exchange for $100,876 in cash (including $98,960 of debt assumed and immediately defeased at closing), 1,342,727 Series B Units valued at $33,569, and 1,448,108 common OP Units valued at $62,341.

The Partnership Agreement provides for the designation and issuance of the Series B Units. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

The Series B Units have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,903. Holders of the Series B Units receive distributions at an annual rate of 6.0%. These distributions are cumulative. The Series B Units are redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash or shares of its common stock.

Series C Convertible Redeemable Preferred Units

On November 19, 2013, the Operating Partnership entered into Contribution Agreements with various entities affiliated with Grupe, under which the Company agreed to acquire twelve stores, all of which are located in California. The Company completed the purchase of these stores between December 2013 and May 2014. The Company previously held a 35% interest in five of these stores and a 40% interest in one store through six separate joint ventures with Grupe. These stores were acquired in exchange for a total of approximately $45,722 of cash, the assumption of $37,532 in existing debt, and the issuance of 704,016 Series C Units valued at $30,960.

The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units rank junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation.

The Series C Units have a liquidation value of $42.10 per unit for a fixed liquidation value of $29,639. From issuance to the fifth anniversary of issuance, each Series C Unit holder will receive quarterly distributions equal to the quarterly distribution for common OP Unit plus $0.18. Beginning on the fifth anniversary of issuance, each Series C Unit holder will receive a fixed quarterly distribution equal to the aggregate quarterly distribution payable in respect of such Series C Unit during the four quarters immediately preceding the fifth anniversary of issuance divided by four. These distributions are cumulative. The Series C Units will become redeemable at the option of the holder one year from the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. The Series C Units will also become convertible into common OP Units at the option of the holder one year from the date of issuance, at a rate of 0.9145 common OP Units per Series C Unit converted. This conversion option expires upon the fifth anniversary of the date of issuance.

In December 2014, the Operating Partnership loaned holders of the Series C Units $20,230. The notes receivable, which are collateralized by the Series C Units, bear interest at 5.0% and mature on December 15, 2024. The Series C Units are shown on the balance sheet net of the $20,230 loan because the borrower under the loan receivable is also the holder of the Series C Units.

Series D Redeemable Preferred Units

In December 2014, the Operating Partnership completed the acquisition of a store located in Florida. This store was acquired in exchange for $5,621 in cash and 548,390 Series D Units valued at $13,710.

The Partnership Agreement provides for the designation and issuance of the Series D Units. The Series D Units rank junior to the Series A Units, on parity with the Series B Units and Series C Units, and senior to all other partnership interest of the Operating Partnership with respect to distributions and liquidation.

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The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $13,710. Holders of the Series D Units receive distributions at an annual rate of 5.0%. These distributions are cumulative. The Series D Units will become redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock.

16.	NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP

The Company’s interest in its stores is held through the Operating Partnership. ESS Holding Business Trust I, a wholly-owned subsidiary of the Company, is the sole general partner of the Operating Partnership. ESS Business Trust II, also a wholly-owned subsidiary of the Company, is a limited partner of the Operating Partnership. Between its general partner and limited partner interests, the Company held a 92.9% majority ownership interest therein as of December 31, 2015. The remaining ownership interests in the Operating Partnership (including Preferred Operating Partnership units) of 7.1% are held by certain former owners of assets acquired by the Operating Partnership. As of December 31, 2015, the Operating Partnership had 5,621,642 OP Units outstanding.

The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. In conjunction with the formation of the Company and as a result of subsequent acquisitions, certain persons and entities contributing interests in stores to the Operating Partnership received limited partnership units in the form of OP Units. Limited partners who received OP Units in the formation transactions or in exchange for contributions for interests in stores have the right to require the Operating Partnership to redeem part or all of their OP Units for cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (10 day average) at the time of the redemption. Alternatively, the Company may, at its sole discretion, elect to acquire those OP Units in exchange for shares of its common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Operating Partnership agreement. The ten day average closing stock price at December 31, 2015, was $88.75 and there were 5,621,642 OP Units outstanding. Assuming that all of the unit holders exercised their right to redeem all of their OP Units on December 31, 2015 and the Company elected to pay the non-controlling members cash, the Company would have paid $498,921 in cash consideration to redeem the units.

During the year ended December 31, 2015, a total of 787,850 OP Units were redeemed in exchange for the Company’s common stock.

On November 13, 2015, the Company purchased one store located in Texas. As part of the consideration for this acquisition, 91,434 OP Units were issued with a total value of $7,221.

On October 1, 2015, the Company acquired SmartStop. As part of the consideration for this acquisition, 376,848 OP Units were issued with a total value of $28,656.

On June 18, 2015, the Company purchased one store located in Florida. As part of the consideration for this acquisition, 71,054 OP Units were issued with a total value of $4,773.

On April 15, 2015, the Company purchased 22 stores located in Arizona and Texas. As part of the consideration for this acquisition, 1,504,277 OP Units were issued with a total value of $101,749.

In December 2014, the Company purchased a single store in California. As part of the consideration, 50,620 OP Units were issued for a value of $2,983.

During the year ended December 31, 2014, a total of 18,859 OP Units were redeemed in exchange for the Company’s common stock.

In October 2013, 12,500 OP Units were redeemed in exchange for the Company’s common stock. In March and April 2013, 1,000 OP Units were redeemed in exchange for $41 in cash.

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On August 29, 2013 and September 26, 2013, the Company purchased 20 stores in California. As part of the consideration, 1,448,108 OP Units were issued for a value of $62,341.

GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity.

The Company has evaluated the terms of the common OP Units and classifies the noncontrolling interest represented by the common OP Units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made.

17.	OTHER NONCONTROLLING INTERESTS

Other noncontrolling interests represent the ownership interest of third parties in two consolidated joint ventures as of December 31, 2015. One of these consolidated joint ventures owns a single operating store in California, and the other owns a store under development in Texas. The voting interests of the third-party owners range from 17.5% to 20.0%. Other noncontrolling interests are included in the stockholders’ equity section of the Company’s condensed consolidated balance sheets. The income or losses attributable to this third-party owner based on its ownership percentage are reflected in net income allocated to Operating Partnership and other noncontrolling interests in the condensed consolidated statements of operations

On June 11, 2015, the Company purchased its joint venture partner’s remaining 1% interest in HSRE for $1,267. HSRE owned 19 properties in California, Florida, Nevada, Ohio, Pennsylvania, Tennessee, Texas and Virginia, and as a result of this purchase, these properties became wholly-owned by the Company. Prior to this acquisition, the partner’s interest was reported in other noncontrolling interests. Since the Company retained its controlling interest in the subsidiary, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase, and the difference between the price paid by the Company and the carrying value of the noncontrolling interest was recorded as an adjustment to equity attributable to the Company.

In November 2013, the Company purchased its joint venture partner’s 10% membership interest in an existing joint venture for $1,292. The joint venture owned a single store located in California, and as a result of the acquisition, the store became wholly-owned by the Company. Since the Company retained its controlling financial interest in the subsidiary, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase, and the difference between the price paid by the Company and the adjustment to the carrying value of the noncontrolling interest was recorded as an adjustment to equity attributable to the parent.

In May 2013, the Company purchased one of its joint venture partner’s 27.6% capital interest and 35% profit interest in a previously unconsolidated joint venture for $950. The partner’s interest was reported in other noncontrolling interests prior to the purchase. As a result of the acquisition, the store became wholly-owned by the Company. Since the Company retained its controlling financial interest in the subsidiary, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase and the difference between the price paid by the Company and the carrying value of the noncontrolling interest was recorded as an adjustment to equity attributable to the parent.

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In February 2013, the Company purchased one of its joint venture partner’s 1.7% capital interest and 17% profit interest in a consolidated store for $200. As a result, the Company’s capital interest percentage in this joint venture increased from 95% to 96.7%. Since the Company retained its controlling financial interest in the subsidiary, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to reflect the purchase and the difference between the price paid by the Company and the adjustment to the carrying value of the noncontrolling interest was recorded as an adjustment to equity attributable to the parent.

18.	STOCK-BASED COMPENSATION

As of December 31, 2015, 4,658,171 shares were available for issuance under the Company’s 2015 Incentive Award Plan (the “Plan”).

Option grants are issued with an exercise price equal to the closing price of stock on the date of grant. Unless otherwise determined by the Compensation, Nominating and Governance Committee (“CNG Committee”) at the time of grant, options shall vest ratably over a four-year period beginning on the date of grant. Each option will be exercisable once it has vested. Options are exercisable at such times and subject to such terms as determined by the CNG Committee, but under no circumstances may be exercised if such exercise would cause a violation of the ownership limit in the Company’s charter. Options expire 10 years from the date of grant.

Also as defined under the terms of the Plan, restricted stock grants may be awarded. The stock grants are subject to a vesting period over which the restrictions are released and the stock certificates are given to the grantee. During the performance or vesting period, the grantee is not permitted to sell, transfer, pledge, encumber or assign shares of restricted stock granted under the Plan; however, the grantee has the ability to vote the shares and receive nonforfeitable dividends paid on shares. Unless otherwise determined by the CNG Committee at the time of grant, the forfeiture and transfer restrictions on the shares lapse over a four-year period beginning on the date of grant.

Option Grants

A summary of stock option activity is as follows:

Options		Number of Shares				Weighted Average Exercise Price				Weighted Average Remaining Contractual Life (Years)				Aggregate Intrinsic Value as of December 31, 2015
Outstanding at December 31, 2012			1,097,092			$	13.89
Granted			49,075				38.40
Exercised			(391,543	)			14.81
Forfeited			—				—
Outstanding at December 31, 2013			754,624			$	15.01
Granted			31,000				47.50
Exercised			(211,747	)			14.85
Forfeited			(5,150	)			28.28
Outstanding at December 31, 2014			568,727			$	16.62
Granted			89,575				69.93
Exercised			(79,974	)			18.79
Forfeited			(5,699	)			39.83
Outstanding at December 31, 2015			572,629			$	24.42				4.87			$	36,525
Vested and Expected to Vest			562,672			$	23.70				4.79			$	36,297
Ending Exercisable			429,348			$	13.16				3.63			$	32,222

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The aggregate intrinsic value in the table above represents the total value (the difference between the Company’s closing stock price on the last trading day of 2015 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2015. The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock.

The weighted average fair value of stock options granted in 2015, 2014 and 2013, was $16.89, $12.03 and $9.74, respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:

		For the Year Ended December 31,
		2015				2014				2013
Expected volatility			38	%			40	%			42	%
Dividend yield			4	%			4	%			4	%
Risk-free interest rate			1.5	%			1.5	%			0.9	%
Average expected term (years)			5				5				5

The Black-Scholes model incorporates assumptions to value stock-based awards. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the estimated life of the option. The Company uses actual historical data to calculate the expected price volatility, dividend yield and average expected term. The forfeiture rate, which is estimated at a weighted-average of 5.0% of unvested options outstanding as of December 31, 2015, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimates.

A summary of stock options outstanding and exercisable as of December 31, 2015, is as follows:

		Options Outstanding												Options Exercisable
Exercise Price		Shares				Weighted Average Remaining Contractual Life				Weighted Average Exercise Price				Shares				Weighted Average Exercise Price
$6.22			167,000				3.13			$	6.22				167,000			$	6.22
$11.59—$15.07			182,410				3.14				13.28				182,410				13.28
$15.30—$47.50			133,644				6.37				31.87				79,938				27.38
$65.36—$65.45			39,575				9.14				65.40				—				—
$73.52			50,000				9.58				73.52				—				—
$6.22—$73.52			572,629				4.87			$	24.42				429,348			$	13.16

The Company recorded compensation expense relating to outstanding options of $510, $456 and $536 in general and administrative expense for the years ended December 31, 2015, 2014 and 2013, respectively. Total cash received for the years ended December 31, 2015, 2014 and 2013, related to option exercises was $1,542, $3,095 and $5,896, respectively. At December 31, 2015, there was $1,427 of total unrecognized compensation expense related to non-vested stock options under the Company’s 2004 Long-Term Incentive Compensation Plan. That cost is expected to be recognized over a weighted-average period of 2.58 years. The valuation model applied in this calculation utilizes subjective assumptions that could potentially change over time, including the expected forfeiture rate. Therefore, the amount of unrecognized compensation expense at December 31, 2015, noted above does not necessarily represent the expense that will ultimately be realized by the Company in the statement of operations.

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Common Stock Granted to Employees and Directors

The Company recorded $5,545, $4,528 and $4,283 of expense in general and administrative expense in its statement of operations related to outstanding shares of common stock granted to employees and directors for the years ended December 31, 2015, 2014 and 2013, respectively. The forfeiture rate, which is estimated at a weighted-average of 10.2% of unvested awards outstanding as of December 31, 2015, is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimates. At December 31, 2015 there was $11,868 of total unrecognized compensation expense related to non-vested restricted stock awards under the Company’s 2004 Long-Term Incentive Compensation Plan. That cost is expected to be recognized over a weighted-average period of 2.45 years.

The fair value of common stock awards is determined based on the closing trading price of the Company’s common stock on the grant date.

A summary of the Company’s employee and director share grant activity is as follows:

Restricted Stock Grants		Shares				Weighted-Average Grant-Date Fair Value
Unreleased at December 31, 2012			540,272			$	17.93
Granted			137,602				39.51
Released			(259,191	)			15.11
Cancelled			(23,323	)			23.62
Unreleased at December 31, 2013			395,360			$	26.96
Granted			117,370				49.25
Released			(197,386	)			23.07
Cancelled			(23,595	)			37.19
Unreleased at December 31, 2014			291,749			$	37.73
Granted			174,558				69.18
Released			(129,808	)			34.86
Cancelled			(18,090	)			44.54
Unreleased at December 31, 2015			318,409			$	55.75

19.	EMPLOYEE BENEFIT PLAN

The Company has a retirement savings plan under Section 401(k) of the Internal Revenue Code under which eligible employees can contribute up to 15% of their annual salary, subject to a statutory prescribed annual limit. For the years ended December 31, 2015, 2014 and 2013, the Company made matching contributions to the plan of $1,680, $1,529 and $1,013, respectively, based on 100% of the first 3% and up to 50% of the next 2% of an employee’s compensation.

20.	INCOME TAXES

As a REIT, the Company is generally not subject to federal income tax with respect to that portion of its income which is distributed annually to its stockholders. However, the Company has elected to treat one of its corporate subsidiaries, Extra Space Management, Inc., as a taxable REIT subsidiary. In general, the Company’s TRS may perform additional services for tenants and generally may engage in any real estate or non-real estate related business. A TRS is subject to corporate federal income tax. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes.” Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. The Company has elected to use the Tax-Law-Ordering approach to determine when excess tax benefits will be realized.

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The income tax provision for the years ended December 31, 2015, 2014 and 2013, is comprised of the following components:

		For the Year Ended December 31, 2015
		Federal				State				Total
Current expense		$	3,736			$	1,640			$	5,376
Tax credits/True-up			274				—				274
Change in deferred benefit			7,016				(1,518	)			5,498
Total tax expense		$	11,026			$	122			$	11,148

		For the Year Ended December 31, 2014
		Federal				State				Total
Current expense		$	6,020			$	1,374			$	7,394
Tax credits/True-up			(2,176	)			—				(2,176	)
Change in deferred benefit			803				1,549				2,352
Total tax expense		$	4,647			$	2,923			$	7,570

		For the Year Ended December 31, 2013
		Federal				State				Total
Current expense		$	9,572			$	615			$	10,187
Tax credits/True-up			(4,556	)			—				(4,556	)
Change in deferred benefit			4,353				—				4,353
Total tax expense		$	9,369			$	615			$	9,984

A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows:

		For the Year Ended December 31,
		2015								2014
Expected tax at statutory rate		$	77,151				35.0	%		$	71,215				35.0	%
Non-taxable REIT income			(67,084	)			(30.4	%)			(64,402	)			(31.7	%)
State and local tax expense—net of federal benefit			1,249				0.6	%			1,109				0.6	%
Change in valuation allowance			(624	)			(0.3	%)			1,663				0.8	%
Tax Credits/True-up (WOTC & Solar)			274				0.1	%			(2,176	)			(1.1	%)
Miscellaneous			182				0.1	%			161				0.1	%
Total provision		$	11,148				5.1	%		$	7,570				3.7	%

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The major sources of temporary differences stated at their deferred tax effects are as follows:

		December 31, 2015				December 31, 2014
Deferred Tax Liabilities:
Fixed Assets		$	(17,360	)		$	(16,586	)
Other			(221	)			(269	)
State Deferred Taxes			(1,523	)			(1,576	)
Total Deferred Tax Liabilities			(19,104	)			(18,431	)
Deferred Tax Assets:
Capitive Insurance Subsidiary			429				447
Accrued liabilities			2,633				1,232
Stock compensation			1,346				1,176
Solar Credit			2,167				9,342
Other			309				840
SmartStop TRS			1,085				—
State Deferred Taxes			6,016				6,260
Total Deferred Tax Assets			13,985				19,297
Valuation Allowance			(5,609	)			(6,233	)
Net deferred income tax liabilities		$	(10,728	)		$	(5,367	)

The state income tax net operating losses expire between 2016 and 2033. The valuation allowance is associated with the state income tax net operating losses. The solar tax credit carryforwards expire between 2030 and 2034. The tax years 2011 through 2014 remain open related to the state returns, and 2012 through 2014 for the federal returns.

21.	SEGMENT INFORMATION

The Company operates in three distinct segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. Management fees collected for wholly-owned stores are eliminated in consolidation. Financial information for the Company’s business segments is set forth below:

		December 31, 2015				December 31, 2014
Balance Sheet
Investment in unconsolidated real estate ventures
Rental operations		$	103,007			$	85,711
Total assets
Rental operations		$	5,674,030			$	4,089,553
Tenant reinsurance			37,696				39,383
Property management, acquisition and development			359,681				253,051
		$	6,071,407			$	4,381,987

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		For the Year Ended December 31,
		2015				2014				2013
Statement of Operations
Total revenues
Rental operations		$	676,138			$	559,868			$	446,682
Tenant reinsurance			71,971				59,072				47,317
Property management, acquisition and development			34,161				28,215				26,614
			782,270				647,155				520,613
Operating expenses, including depreciation and amortization
Rental operations			328,380				279,497				229,229
Tenant reinsurance			13,033				10,427				9,022
Property management, acquisition and development			146,201				78,763				68,879
			487,614				368,687				307,130
Income (loss) from operations
Rental operations			347,758				280,371				217,453
Tenant reinsurance			58,938				48,645				38,295
Property management, acquisition and development			(112,040	)			(50,548	)			(42,265	)
			294,656				278,468				213,483
Gain (loss) on real estate transactions and earnout from prior acquisitions
Property management, acquisition and development			1,501				(10,285	)			960
Property casualty loss, net
Rental operations			—				(1,724	)			—
Loss on extinguishment of debt related to portfolio acquisition
Property management, acquisition and development			—				—				(9,153	)
Interest expense
Rental operations			(93,711	)			(80,160	)			(69,702	)
Property management, acquisition and development			(1,971	)			(1,170	)			(1,928	)
			(95,682	)			(81,330	)			(71,630	)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes
Property management, acquisition and development			(3,310	)			(2,683	)			(1,404	)
Interest income
Tenant reinsurance			15				17				17
Property management, acquisition and development			3,446				1,590				732
			3,461				1,607				749
Interest income on note receivable from Preferred Operating Partnership unit holder
Property management, acquisition and development			4,850				4,850				4,850
Equity in earnings of unconsolidated real estate ventures
Rental operations			12,351				10,541				11,653
Equity in earnings of unconsolidated real estate ventures—gain on sale of real estate assets and purchase of partners’ interests
Rental operations			2,857				4,022				46,032
Income tax (expense) benefit
Rental operations			(1,729	)			(1,157	)			(149	)
Tenant reinsurance			(9,780	)			(8,662	)			(13,409	)
Property management, acquisition and development			361				2,249				3,574
			(11,148	)			(7,570	)			(9,984	)
Net income (loss)
Rental operations			267,526				213,617				205,287
Tenant reinsurance			49,173				40,000				24,903
Property management, acquisition and development			(107,163	)			(57,721	)			(44,634	)
		$	209,536			$	195,896			$	185,556
Depreciation and amortization expense
Rental operations		$	124,415			$	107,081			$	89,217
Property management, acquisition and development			9,042				7,995				6,015
		$	133,457			$	115,076			$	95,232
Statement of Cash Flows
Acquisition of real estate assets
Property management, acquisition and development		$	(1,550,750	)		$	(503,538	)		$	(349,959	)
Development and redevelopment of real estate assets
Property management, acquisition and development		$	(26,931	)		$	(23,528	)		$	(6,466	)

Table of Contents

22.	COMMITMENTS AND CONTINGENCIES

The Company has operating leases on its corporate offices and owns 19 stores that are subject to leases. At December 31, 2015, future minimum rental payments under these non-cancelable operating leases were as follows (unaudited):

Less than 1 year		$	5,655
Year 2			4,326
Year 3			3,479
Year 4			2,861
Year 5			2,808
Thereafter			60,797
		$	79,926

The monthly rental amounts for two of the ground leases include contingent rental payments based on the level of revenue achieved at the stores. The Company recorded expense of $3,858, $3,406 and $3,032 related to these ground leases in the years ended December 31, 2015, 2014 and 2013, respectively.

The Company is involved in various legal proceedings and is subject to various claims and complaints arising in the ordinary course of business. Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty. In accordance with applicable accounting guidance, management establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. Therefore, any estimate(s) of loss disclosed below represents what management believes to be an estimate of loss only for certain matters meeting these criteria and does not represent our maximum loss exposure. The Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period, notwithstanding the fact that the Company is currently vigorously defending any legal proceedings against it.

The Company currently has several legal proceedings pending against it that include causes of action alleging wrongful foreclosure, violations of various state specific self-storage statutes, and violations of various consumer fraud acts. As a result of these litigation matters, the Company recorded a liability of $850 during the year ended December 31, 2014, which is included in other liabilities on the consolidated balance sheets.

Although there can be no assurance, the Company is not aware of any material environmental liability, for which it believes it will be ultimately responsible, that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to its properties could result in future material environmental liabilities.

Table of Contents

23.	SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED)

		For the Three Months Ended
		March 31, 2015				June 30, 2015				September 30, 2015				December 31, 2015
Revenues		$	173,154			$	185,860			$	197,497			$	225,759
Cost of operations			97,718				104,253				100,193				185,450
Revenues less cost of operations		$	75,436			$	81,607			$	97,304			$	40,309
Net income		$	58,636			$	60,956			$	78,200			$	11,744
Net income attributable to common stockholders		$	53,742			$	55,339			$	71,718			$	8,675
Earnings per common share—basic		$	0.46			$	0.47			$	0.58			$	0.07
Earnings per common share—diluted		$	0.46			$	0.47			$	0.58			$	0.07
		For the Three Months Ended
		March 31, 2014				June 30, 2014				September 30, 2014				December 31, 2014
Revenues		$	152,587			$	160,724			$	169,067			$	164,777
Cost of operations			92,189				90,063				91,574				94,861
Revenues less cost of operations		$	60,398			$	70,661			$	77,493			$	69,916
Net income		$	41,209			$	46,008			$	59,193			$	49,486
Net income attributable to common stockholders		$	37,340			$	41,665			$	54,228			$	45,122
Earnings per common share—basic		$	0.32			$	0.36			$	0.47			$	0.39
Earnings per common share—diluted		$	0.32			$	0.36			$	0.47			$	0.39

24.	SUBSEQUENT EVENTS

Subsequent to year end the Company has purchased 16 stores for a total of $144,573. This includes the buyout of a joint venture partner’s interest in six stores at the value of the JV partner’s interest. These stores are located in Florida, Maryland, New Mexico, New York, Nevada, Tennessee and Texas.

Subsequent to year end, the Company sold 831,300 shares of common stock at an average sale price of $89.66 per share, resulting in net proceeds of $73,785.

Subsequent to year end, the Company repurchased $19,639 principal amount of the 2013 Notes and issued 130,909 shares of common stock for the value in excess of the principal amount.

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
08/23/2010		Auburn / Dean Rd			AL			$	4,605			$	324			$	1,895			$	135							$	325			$	2,029			$	2,354			$	336
08/23/2010		Auburn / Opelika Rd			AL				1,787				92				138				177								92				315				407				101
07/02/2012		Birmingham / Grace Baker Rd			AL				4,506				790				9,369				148								790				9,517				10,307				850
03/20/2014		Birmingham / Lorna Rd			AL				7,382				2,381				11,224				105								2,381				11,329				13,710				523
10/01/2015		Daphne			AL				—				970				4,182				28								970				4,210				5,180				27
08/31/2007		Hoover			AL				4,055				1,313				2,858				701								1,313				3,559				4,872				1,159
10/01/2015		Montgomery / Carmichael Rd			AL				4,852				540				9,048				2								540				9,050				9,590				58
10/01/2015		Montgomery / Monticello Dr			AL				—				1,280				4,056				31								1,280				4,087				5,367				26
10/01/2015		Chandler / W Chandler Blvd			AZ				—				950				3,707				16								950				3,723				4,673				24
07/25/2013		Chandler / W Elliot Rd			AZ				4,169				547				4,213				194								547				4,407				4,954				305
04/15/2015		Glendale			AZ				—				608				8,461				241								608				8,702				9,310				160
10/01/2015		Mesa / E Guadalupe Rd			AZ				—				1,350				6,290				105								1,350				6,395				7,745				41
12/27/2012		Mesa / E Southern Ave			AZ				5,435				2,973				5,545				343								2,973				5,888				8,861				482
08/18/2004		Mesa / Madero Ave			AZ				3,153				849				2,547				222								849				2,769				3,618				874
07/02/2012		Mesa / N. Alma School Rd			AZ				3,073				1,129				4,402				99								1,129				4,501				5,630				408
07/25/2013		Mesa / Southern Ave			AZ				4,113				1,453				2,897				166								1,453				3,063				4,516				207
04/01/2006		Peoria / 75th Ave			AZ				4,459				652				4,105				162								652				4,267				4,919				1,099
01/31/2011		Peoria / W Beardsley Rd			AZ				—				1,060				4,731				34								1,060				4,765				5,825				615
01/02/2007		Phoenix / E Greenway Pkwy			AZ				—				669				4,135				485								668				4,621				5,289				1,135
07/01/2005		Phoenix / East Bell Rd			AZ				—				1,441				7,982				699								1,441				8,681				10,122				2,590
10/01/2015		Phoenix / Missouri Ave			AZ				—				470				1,702				9								470				1,711				2,181				11
11/30/2012		Phoenix / N 32nd St			AZ				6,897				2,257				7,820				198								2,257				8,018				10,275				656
06/30/2006		Phoenix / N Cave Creek Rd			AZ				3,265				552				3,530				273								551				3,804				4,355				1,035
10/01/2015		Phoenix / Washington			AZ				2,995				1,200				3,767				58								1,200				3,825				5,025				24
10/01/2015		Tempe / S Priest Dr			AZ				—				850				3,283				21								850				3,304				4,154				21
10/01/2015		Tempe / W Broadway Rd			AZ				2,566				1,040				3,562				94								1,040				3,656				4,696				24
11/30/2012		Tucson			AZ				—				1,090				7,845				115								1,090				7,960				9,050				648
06/25/2007		Alameda			CA				—				2,919				12,984				2,123								2,919				15,107				18,026				4,103
08/29/2013		Alhambra			CA				—				10,109				6,065				351								10,109				6,416				16,525				400
04/25/2014		Anaheim / Old Canal Rd			CA				10,216				2,765				12,680				158								2,765				12,838				15,603				572
08/29/2013		Anaheim / S Adams St			CA				7,156				3,593				3,330				224								3,593				3,554				7,147				238
08/29/2013		Anaheim / S State College Blvd			CA				6,538				2,519				2,886				215								2,519				3,101				5,620				209
07/01/2008		Antelope			CA				4,000				1,525				8,345				(267	)			(a	)			1,185				8,418				9,603				1,589
10/19/2011		Bellflower			CA				1,230				640				1,350				98								639				1,449				2,088				167
05/15/2007		Belmont			CA				—				3,500				7,280				81								3,500				7,361				10,861				1,602
06/25/2007		Berkeley			CA				20,811				1,716				19,602				1,998								1,715				21,601				23,316				5,142
10/19/2011		Bloomington / Bloomington Ave			CA				2,765				934				1,937				171								934				2,108				3,042				304
10/19/2011		Bloomington / Linden Ave			CA				—				647				1,303				186								647				1,489				2,136				205
08/29/2013		Burbank / Thornton Ave			CA				—				4,061				5,318				289								4,061				5,607				9,668				360
08/10/2000		Burbank / W Verdugo Ave			CA				13,003				3,199				5,082				2,027								3,619				6,689				10,308				2,676

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
04/08/2011		Burlingame			CA				5,213				2,211				5,829				142						2,211				5,971				8,182				753
03/14/2011		Carson			CA				—				—				9,709				102						—				9,811				9,811				1,215
06/25/2007		Castro Valley			CA				—				—				6,346				455						—				6,801				6,801				1,504
10/19/2011		Cerritos			CA				16,707				8,728				15,895				2,685						8,728				18,580				27,308				1,951
11/01/2013		Chatsworth			CA				—				9,922				7,599				408						9,922				8,007				17,929				1,317
06/01/2004		Claremont / South Mills Ave			CA				2,949				1,472				2,012				273						1,472				2,285				3,757				762
10/19/2011		Claremont / W Arrow Hwy			CA				3,415				1,375				1,434				212						1,375				1,646				3,021				206
06/25/2007		Colma			CA				23,788				3,947				22,002				2,340						3,947				24,342				28,289				6,005
09/01/2008		Compton			CA				4,572				1,426				7,582				57						1,426				7,639				9,065				1,442
08/29/2013		Concord			CA				5,226				3,082				2,822				249						3,082				3,071				6,153				194
09/21/2009		El Cajon			CA				—				1,100				6,380				108						1,100				6,488				7,588				1,050
06/25/2007		El Sobrante			CA				—				1,209				4,018				1,562						1,209				5,580				6,789				1,565
12/02/2013		Elk Grove / Power Inn Rd			CA				5,657				894				6,949				83						894				7,032				7,926				371
12/02/2013		Elk Grove / Stockton Blvd			CA				6,675				640				8,640				57						640				8,697				9,337				458
05/01/2010		Emeryville			CA				—				3,024				11,321				171						3,024				11,492				14,516				1,669
12/02/2013		Fair Oaks			CA				4,209				644				11,287				63						644				11,350				11,994				592
10/19/2011		Fontana / Baseline Ave			CA				4,774				778				4,723				134						777				4,858				5,635				569
10/19/2011		Fontana / Foothill Blvd 1			CA				—				768				4,208				226						768				4,434				5,202				513
10/19/2011		Fontana / Foothill Blvd 2			CA				—				684				3,951				241						684				4,192				4,876				486
09/15/2002		Fontana / Valley Blvd 1			CA				3,095				961				3,846				456						1,000				4,263				5,263				1,514
10/15/2003		Fontana / Valley Blvd 2			CA				5,524				1,246				3,356				515						1,300				3,817				5,117				1,240
06/01/2004		Gardena			CA				—				3,710				6,271				2,263						4,110				8,134				12,244				2,363
10/01/2015		Gilroy			CA				8,207				1,140				14,265				126						1,140				14,391				15,531				92
06/01/2004		Glendale			CA				—				—				6,084				253						—				6,337				6,337				1,984
07/02/2012		Hawaiian Gardens			CA				9,178				2,964				12,478				209						2,964				12,687				15,651				1,196
10/01/2015		Hawthorne / La Cienega Blvd			CA				11,981				2,500				18,562				75						2,500				18,637				21,137				120
06/01/2004		Hawthorne / Rosselle Ave			CA				3,743				1,532				3,871				267						1,532				4,138				5,670				1,339
06/26/2007		Hayward			CA				8,329				3,149				8,006				3,148						3,148				11,155				14,303				3,020
07/01/2005		Hemet			CA				3,085				1,146				6,369				350						1,146				6,719				7,865				1,937
10/19/2011		Hesperia			CA				—				156				430				174						156				604				760				110
07/02/2012		Hollywood			CA				9,793				4,555				10,590				112						4,555				10,702				15,257				962
08/10/2000		Inglewood			CA				5,638				1,379				3,343				974						1,530				4,166				5,696				1,805
10/19/2011		Irvine			CA				4,919				3,821				3,999				142						3,821				4,141				7,962				472
05/28/2014		La Quinta			CA				13,025				4,706				12,604				145						4,706				12,749				17,455				545
10/01/2015		Ladera Ranch			CA				—				6,440				24,500				15						6,440				24,515				30,955				157
10/19/2011		Lake Elsinore / Central Ave			CA				3,134				587				4,219				229						587				4,448				5,035				513
10/19/2011		Lake Elsinore / Collier Ave			CA				—				294				2,105				104						294				2,209				2,503				261
10/01/2015		Lake Forest			CA				17,974				15,093				18,895				37						15,093				18,932				34,025				121
10/17/2009		Lancaster / 23rd St W			CA				—				1,425				5,855				102						1,425				5,957				7,382				944
07/28/2006		Lancaster / West Ave J-8			CA				5,543				1,347				5,827				303						1,348				6,129				7,477				1,605

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
06/01/2004		Livermore			CA				—				1,134				4,615				276						1,134				4,891				6,025				1,531
10/19/2011		Long Beach / E Artesia Blvd			CA				2,659				1,772				2,539				300						1,772				2,839				4,611				332
10/01/2015		Long Beach / E Wardlow Rd			CA				13,179				6,340				17,050				23						6,340				17,073				23,413				109
11/01/2013		Long Beach / W Wardlow Rd			CA				—				5,859				4,992				45						5,859				5,037				10,896				913
03/23/2000		Los Angeles / Casitas Ave			CA				8,661				1,431				2,976				766						1,611				3,562				5,173				1,464
07/02/2012		Los Angeles / Fountain Ave			CA				4,994				3,099				4,889				104						3,099				4,993				8,092				458
12/31/2007		Los Angeles / La Cienega			CA				9,887				3,991				9,774				116						3,992				9,889				13,881				2,049
09/01/2008		Los Angeles / S Central Ave			CA				8,162				2,200				8,108				72						2,200				8,180				10,380				1,548
12/02/2013		Los Angeles / S Western Ave			CA				1,434				287				2,011				367						287				2,378				2,665				151
04/25/2014		Los Angeles / Slauson Ave			CA				7,380				2,400				8,605				305						2,401				8,909				11,310				401
07/17/2012		Los Gatos			CA				—				2,550				8,257				66						2,550				8,323				10,873				835
01/01/2004		Manteca			CA				3,574				848				2,543				196						848				2,739				3,587				882
11/01/2013		Marina Del Rey			CA				—				19,928				18,742				246						19,928				18,988				38,916				2,615
08/29/2013		Menlo Park			CA				9,562				7,675				1,812				256						7,675				2,068				9,743				136
06/01/2007		Modesto / Crows Landing			CA				3,294				909				3,043				296						909				3,339				4,248				843
08/29/2013		Modesto / Sylvan Ave			CA				4,258				1,647				4,215				201						1,647				4,416				6,063				272
07/02/2012		Moreno Valley			CA				2,048				482				3,484				47						482				3,531				4,013				322
10/01/2015		Morgan Hill			CA				7,278				1,760				11,772				59						1,760				11,831				13,591				75
11/01/2013		North Highlands			CA				—				799				2,801				97						799				2,898				3,697				469
08/29/2013		North Hollywood / Coldwater Canyon			CA				—				4,501				4,465				373						4,501				4,838				9,339				312
05/01/2006		North Hollywood / Van Owen			CA				6,659				3,125				9,257				244						3,125				9,501				12,626				2,361
08/29/2013		Northridge			CA				6,614				3,641				2,872				293						3,641				3,165				6,806				216
08/29/2013		Oakland / 29th Ave			CA				10,149				6,359				5,753				273						6,359				6,026				12,385				382
04/24/2000		Oakland / Fallon St			CA				4,104				—				3,777				1,138						—				4,915				4,915				2,053
12/02/2013		Oakland / San Leandro St			CA				7,719				1,668				7,652				286						1,668				7,938				9,606				427
07/01/2005		Oceanside / Oceanside Blvd 1			CA				—				3,241				11,361				890						3,241				12,251				15,492				3,583
12/09/2014		Oceanside / Oceanside Blvd 2			CA				6,050				4,508				4,599				49						4,508				4,648				9,156				124
11/30/2012		Orange			CA				12,124				4,847				12,341				312						4,847				12,653				17,500				1,048
12/02/2013		Oxnard			CA				8,571				5,421				6,761				331						5,421				7,092				12,513				380
08/01/2009		Pacoima			CA				2,166				3,050				7,597				101						3,050				7,698				10,748				1,262
01/01/2005		Palmdale			CA				4,602				1,225				5,379				2,233						1,225				7,612				8,837				2,151
10/19/2011		Paramount			CA				2,559				1,404				2,549				207						1,404				2,756				4,160				331
08/31/2000		Pico Rivera / Beverly Blvd			CA				—				1,150				3,450				234						1,150				3,684				4,834				1,373
03/04/2014		Pico Rivera / San Gabriel River Pkwy			CA				4,445				2,150				4,734				43						2,150				4,777				6,927				220
10/19/2011		Placentia			CA				6,647				4,798				5,483				288						4,798				5,771				10,569				658
05/24/2007		Pleasanton			CA				7,267				1,208				4,283				449						1,208				4,732				5,940				1,265
06/01/2004		Richmond / Lakeside Dr			CA				4,796				953				4,635				629						953				5,264				6,217				1,745
09/26/2013		Richmond / Meeker Ave			CA				—				3,139				7,437				225						3,139				7,662				10,801				469
08/18/2004		Riverside			CA				4,801				1,075				4,042				554						1,075				4,596				5,671				1,502
12/02/2013		Rocklin			CA				6,394				1,745				8,005				58						1,745				8,063				9,808				425

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
11/04/2013		Rohnert Park			CA				6,389				990				8,094				163								990				8,257				9,247				449
07/01/2005		Sacramento / Auburn Blvd			CA				—				852				4,720				750								852				5,470				6,322				1,611
03/31/2015		Sacramento / B Street			CA				7,611				1,025				11,479				429								1,025				11,908				12,933				241
10/01/2010		Sacramento / Franklin Blvd			CA				2,988				1,738				5,522				118								1,844				5,534				7,378				767
12/31/2007		Sacramento / Stockton Blvd			CA				2,836				952				6,936				462								1,075				7,275				8,350				998
06/01/2006		San Bernardino / Sterling Ave.			CA				—				750				5,135				160								750				5,295				6,045				1,259
06/01/2004		San Bernardino / W Club Center Dr			CA				—				1,213				3,061				138								1,173				3,239				4,412				1,026
08/29/2013		San Diego / Cedar St			CA				13,188				5,919				6,729				448								5,919				7,177				13,096				443
12/11/2015		San Diego / Del Sol Blvd			CA				—				2,679				7,029				5								2,679				7,034				9,713				—
10/19/2011		San Dimas			CA				5,318				1,867				6,354				266								1,867				6,620				8,487				752
08/29/2013		San Francisco / Egbert Ave			CA				10,636				5,098				4,054				261								5,098				4,315				9,413				275
06/14/2007		San Francisco / Folsom			CA				18,102				8,457				9,928				1,837								8,457				11,765				20,222				3,124
10/01/2015		San Francisco / Otis Street			CA				—				5,460				18,741				101								5,460				18,842				24,302				121
07/26/2012		San Jose / Charter Park Dr			CA				4,652				2,428				2,323				260								2,428				2,583				5,011				272
09/01/2009		San Jose / N 10th St			CA				10,784				5,340				6,821				287								5,340				7,108				12,448				1,142
08/01/2007		San Leandro / Doolittle Dr			CA				15,102				4,601				9,777				3,422								4,601				13,199				17,800				3,345
10/01/2010		San Leandro / Washington Ave			CA				—				3,343				6,630				(4	)			(f	)			3,291				6,678				9,969				913
10/01/2015		San Lorenzo			CA				—				—				8,784				108								—				8,892				8,892				57
08/29/2013		San Ramon			CA				—				4,819				5,819				272								4,819				6,091				10,910				375
08/29/2013		Santa Ana			CA				4,139				3,485				2,382				233								3,485				2,615				6,100				179
07/30/2009		Santa Clara			CA				7,914				4,750				8,218				34								4,750				8,252				13,002				1,343
07/02/2012		Santa Cruz			CA				8,357				1,588				11,160				123								1,588				11,283				12,871				1,010
10/04/2007		Santa Fe Springs			CA				6,334				3,617				7,022				368								3,617				7,390				11,007				1,712
10/19/2011		Santa Maria / Farnel Rd			CA				2,908				1,556				2,740				462								1,556				3,202				4,758				389
10/19/2011		Santa Maria / Skyway Dr			CA				3,141				1,310				3,526				109								1,309				3,636				4,945				412
08/31/2004		Sherman Oaks			CA				16,279				4,051				12,152				603								4,051				12,755				16,806				3,763
08/29/2013		Stanton			CA				6,895				5,022				2,267				220								5,022				2,487				7,509				179
05/19/2002		Stockton / Jamestown			CA				2,364				649				3,272				243								649				3,515				4,164				1,273
12/02/2013		Stockton / Pacific Ave			CA				—				3,619				2,443				82								3,619				2,525				6,144				139
04/25/2014		Sunland			CA				4,968				1,688				6,381				71								1,688				6,452				8,140				289
08/29/2013		Sunnyvale			CA				—				10,732				5,004				243								10,732				5,247				15,979				327
05/02/2008		Sylmar			CA				6,278				3,058				4,671				277								3,058				4,948				8,006				1,112
02/28/2013		Thousand Oaks			CA				10,883				4,500				8,834				(964	)			(d	)			3,500				8,870				12,370				123
07/15/2003		Tracy / E 11th St 1			CA				5,260				778				2,638				789								911				3,294				4,205				1,093
04/01/2004		Tracy / E 11th St 2			CA				3,035				946				1,937				303								946				2,240				3,186				815
06/25/2007		Vallejo / Sonoma Blvd			CA				2,847				1,177				2,157				1,077								1,177				3,234				4,411				1,065
10/01/2015		Vallejo / Tennessee St			CA				8,596				2,640				13,870				123								2,640				13,993				16,633				89
08/29/2013		Van Nuys			CA				—				7,939				2,576				343								7,939				2,919				10,858				206
08/31/2004		Venice			CA				—				2,803				8,410				(3,057	)			(b	)			2,803				5,353				8,156				1,443
08/29/2013		Ventura			CA				—				3,453				2,837				223								3,453				3,060				6,513				209

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
10/19/2011		Victorville			CA				—				151				751				161						151				912				1,063				131
07/01/2005		Watsonville			CA				—				1,699				3,056				299						1,699				3,355				5,054				998
09/01/2009		West Sacramento			CA				—				2,400				7,425				111						2,400				7,536				9,936				1,232
06/19/2002		Whittier			CA				3,257				—				2,985				205						—				3,190				3,190				1,140
08/29/2013		Wilmington			CA				—				6,792				10,726				25						6,792				10,751				17,543				636
09/15/2000		Arvada			CO				1,753				286				1,521				703						286				2,224				2,510				1,097
05/25/2011		Castle Rock / Industrial Way 1			CO				1,027				407				3,077				260						407				3,337				3,744				429
07/23/2015		Castle Rock / Industrial Way 2			CO				—				531				—				—						531				—				531				—
06/10/2011		Colorado Springs / Austin Bluffs Pkwy			CO				1,667				296				4,199				270						296				4,469				4,765				592
08/31/2007		Colorado Springs / Dublin Blvd			CO				3,698				781				3,400				281						781				3,681				4,462				901
11/25/2008		Colorado Springs / S 8th St			CO				3,875				1,525				4,310				418						1,525				4,728				6,253				957
10/24/2014		Colorado Springs / Stetson Hills Blvd			CO				3,979				2,077				4,087				264						2,077				4,351				6,428				144
09/15/2000		Denver / E 40th Ave			CO				2,482				602				2,052				1,527						745				3,436				4,181				1,396
07/01/2005		Denver / W 96th Ave			CO				3,537				368				1,574				287						368				1,861				2,229				616
07/18/2012		Fort Carson			CO				—				—				6,945				112						—				7,057				7,057				641
09/01/2006		Parker			CO				4,531				800				4,549				816						800				5,365				6,165				1,512
09/15/2000		Thornton			CO				2,718				212				2,044				1,151						248				3,159				3,407				1,414
09/15/2000		Westminster			CO				2,051				291				1,586				1,201						299				2,779				3,078				1,361
03/17/2014		Bridgeport			CT				—				1,072				14,028				132						1,072				14,160				15,232				654
07/02/2012		Brookfield			CT				5,010				991				7,891				126						991				8,017				9,008				740
01/15/2004		Groton			CT				5,112				1,277				3,992				444						1,276				4,437				5,713				1,550
12/31/2007		Middletown			CT				2,722				932				2,810				194						932				3,004				3,936				665
11/04/2013		Newington			CT				2,328				1,363				2,978				609						1,363				3,587				4,950				208
08/16/2002		Wethersfield			CT				6,667				709				4,205				228						709				4,433				5,142				1,576
11/19/2015		Apopka / Park Ave			FL				—				613				5,228				—						613				5,228				5,841				—
11/19/2015		Apopka / Semoran Blvd			FL				—				888				5,737				6						888				5,743				6,631				—
05/02/2012		Auburndale			FL				1,244				470				1,076				152						470				1,228				1,698				139
07/15/2009		Bonita Springs			FL				—				2,198				8,215				127						2,198				8,342				10,540				1,351
12/23/2014		Bradenton			FL				—				1,333				3,677				565						1,333				4,242				5,575				114
11/30/2012		Brandon			FL				4,537				1,327				5,656				174						1,327				5,830				7,157				489
06/19/2008		Coral Springs			FL				6,109				3,638				6,590				278						3,638				6,868				10,506				1,468
10/01/2015		Davie			FL				7,907				4,890				11,679				91						4,890				11,770				16,660				76
01/06/2006		Deland			FL				2,736				1,318				3,971				348						1,318				4,319				5,637				1,172
11/30/2012		Fort Lauderdale / Commercial Blvd			FL				5,015				1,576				5,397				329						1,576				5,726				7,302				483
08/26/2004		Fort Lauderdale / NW 31st Ave			FL				7,348				1,587				4,205				385						1,587				4,590				6,177				1,465
05/04/2011		Fort Lauderdale / S State Rd 7			FL				6,963				2,750				7,002				561						2,750				7,563				10,313				955
08/26/2004		Fort Myers / Cypress Lake Dr			FL				6,023				1,691				4,711				359						1,691				5,070				6,761				1,579
07/01/2005		Fort Myers / San Carlos Blvd			FL				—				1,985				4,983				615						1,985				5,598				7,583				1,675
03/08/2005		Greenacres			FL				2,535				1,463				3,244				153						1,463				3,397				4,860				1,019
10/01/2015		Gulf Breeze / Gulf Breeze Pkwy			FL				2,900				620				2,886				14						620				2,900				3,520				18

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
10/01/2015		Gulf Breeze / McClure Dr			FL				6,170				660				12,590				14								660				12,604				13,264				81
01/01/2010		Hialeah / E 65th Street			FL				5,838				1,750				7,150				111								1,750				7,261				9,011				1,129
08/01/2008		Hialeah / Okeechobee Rd			FL				—				2,800				7,588				126								2,800				7,714				10,514				1,489
09/01/2010		Hialeah / W 84th St			FL				5,838				1,678				6,807				81								1,678				6,888				8,566				945
11/20/2007		Hollywood			FL				6,616				3,214				8,689				366								3,214				9,055				12,269				2,017
10/01/2015		Jacksonville / Monument Rd			FL				5,571				490				10,708				77								490				10,785				11,275				70
10/01/2015		Jacksonville / Timuquana Rd			FL				4,600				1,000				3,744				140								1,000				3,884				4,884				26
12/28/2012		Kenneth City			FL				2,245				805				3,345				58								805				3,403				4,208				274
05/02/2012		Lakeland / Harden Blvd			FL				3,767				593				4,701				209								593				4,910				5,503				518
05/02/2012		Lakeland / South Florida Ave			FL				5,412				871				6,905				248								871				7,153				8,024				704
09/03/2014		Lakeland / US Hwy 98			FL				—				529				3,604				104								529				3,708				4,237				132
12/27/2012		Land O Lakes			FL				6,333				798				4,490				2								799				4,491				5,290				377
08/26/2004		Madeira Beach			FL				3,473				1,686				5,163				298								1,686				5,461				7,147				1,669
08/10/2000		Margate			FL				3,234				430				3,139				1,495								469				4,595				5,064				1,579
07/02/2012		Miami / Coral Way			FL				7,892				3,257				9,713				179								3,257				9,892				13,149				907
10/25/2011		Miami / Hammocks Blvd			FL				6,324				521				5,198				133								521				5,331				5,852				631
08/10/2000		Miami / NW 12th St			FL				7,629				1,325				4,395				2,103								1,419				6,404				7,823				2,194
07/02/2012		Miami / NW 2nd Ave			FL				5,559				1,979				6,513				191								1,979				6,704				8,683				630
02/04/2011		Miami / SW 147th Ave			FL				—				2,375				5,543				111								2,374				5,655				8,029				666
05/31/2007		Miami / SW 186th St			FL				4,312				1,238				7,597				368								1,238				7,965				9,203				1,897
11/08/2013		Miami / SW 68th Ave			FL				9,887				3,305				11,997				53								3,305				12,050				15,355				659
08/10/2000		Miami / SW 72nd Street			FL				7,730				5,315				4,305				2,113								5,859				5,874				11,733				2,086
11/30/2009		Miami Gardens			FL				6,660				4,798				9,475				136								4,798				9,611				14,409				1,515
06/18/2015		Naples / Goodlette Road			FL				—				—				17,220				70								—				17,290				17,290				221
11/01/2013		Naples / Old US 41			FL				—				1,990				4,887				419								1,990				5,306				7,296				652
11/08/2013		Naranja			FL				8,429				603				11,223				104								603				11,327				11,930				620
08/10/2000		North Lauderdale			FL				4,016				428				3,516				1,015								459				4,500				4,959				2,010
06/01/2004		North Miami			FL				8,429				1,256				6,535				634								1,256				7,169				8,425				2,345
10/01/2015		Oakland Park			FL				9,764				2,030				19,241				126								2,030				19,367				21,397				125
03/08/2005		Ocoee			FL				2,982				872				3,642				328								872				3,970				4,842				1,205
11/19/2015		Orlando / Hoffner Ave			FL				—				512				6,697				—								512				6,697				7,209				—
03/08/2005		Orlando / Hunters Creek			FL				9,760				2,233				9,223				515								2,233				9,738				11,971				2,888
08/26/2004		Orlando / LB McLeod Rd			FL				8,454				1,216				5,008				482								1,216				5,490				6,706				1,724
06/17/2015		Orlando / Lee Rd			FL				—				535				5,364				2								535				5,366				5,901				64
03/08/2005		Orlando / Metrowest			FL				5,566				1,474				6,101				304								1,474				6,405				7,879				1,897
07/15/2010		Orlando / Orange Blossom Trail			FL				—				625				2,133				88								625				2,221				2,846				351
03/08/2005		Orlando / Waterford Lakes			FL				3,603				1,166				4,816				1,301								1,166				6,117				7,283				1,733
11/07/2013		Palm Springs			FL				—				2,108				8,028				159								2,108				8,187				10,295				468
05/31/2013		Plantation			FL				—				3,850				—				(1,504	)			(d	)			2,346				—				2,346				—
08/26/2004		Port Charlotte			FL				—				1,389				4,632				267								1,389				4,899				6,288				1,497

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
08/26/2004		Riverview			FL				4,595				654				2,953				311						654				3,264				3,918				1,030
11/30/2012		Sarasota / Clark Rd			FL				7,803				4,666				9,016				287						4,666				9,303				13,969				777
12/23/2014		Sarasota / Washington Blvd			FL				—				1,192				2,919				29						1,192				2,948				4,140				78
12/03/2012		Seminole			FL				2,324				1,133				3,017				188						1,133				3,205				4,338				271
12/23/2014		South Pasadena			FL				9,420				8,890				10,106				96						8,890				10,202				19,092				273
04/15/2014		Stuart / Gran Park Way			FL				6,895				1,640				8,358				143						1,640				8,501				10,141				391
10/01/2015		Stuart / Kanner Hwy			FL				—				1,250				5,007				76						1,250				5,083				6,333				33
10/01/2015		Stuart / NW Federal Hwy 1			FL				—				760				3,125				83						760				3,208				3,968				21
10/01/2015		Tallahassee			FL				9,225				1,460				21,471				—						1,460				21,471				22,931				138
11/01/2013		Tamiami			FL				—				5,042				7,164				329						5,042				7,493				12,535				1,014
11/22/2006		Tampa / Cypress St			FL				3,523				883				3,533				160						881				3,695				4,576				928
03/27/2007		Tampa / W Cleveland St			FL				3,551				1,425				4,766				316						1,425				5,082				6,507				1,307
12/23/2014		Tampa / W Hillsborough Ave			FL				2,374				1,086				2,937				385						1,086				3,322				4,408				87
08/26/2004		Valrico			FL				4,358				1,197				4,411				284						1,197				4,695				5,892				1,475
01/13/2006		Venice			FL				6,714				1,969				5,903				320						1,970				6,222				8,192				1,748
08/10/2000		West Palm Beach / Forest Hill Bl			FL				—				1,164				2,511				733						1,246				3,162				4,408				1,340
08/10/2000		West Palm Beach / N Military Trail 1			FL				4,415				1,312				2,511				953						1,416				3,360				4,776				1,436
11/01/2013		West Palm Beach / N Military Trail 2			FL				—				1,595				2,833				105						1,595				2,938				4,533				429
12/01/2011		West Palm Beach / S Military Trail			FL				3,340				1,729				4,058				102						1,730				4,159				5,889				463
07/01/2005		West Palm Beach / Southern Blvd			FL				—				1,752				4,909				450						1,752				5,359				7,111				1,696
10/01/2015		Weston			FL				7,009				1,680				11,342				89						1,680				11,431				13,111				74
08/26/2004		Alpharetta / Holcomb Bridge Rd			GA				—				1,973				1,587				295						1,973				1,882				3,855				623
10/01/2015		Alpharetta / Jones Bridge Rd			GA				5,781				1,420				8,902				28						1,420				8,930				10,350				57
08/08/2006		Alpharetta / North Main St			GA				5,075				1,893				3,161				191						1,894				3,351				5,245				884
08/06/2014		Atlanta / Chattahoochee Ave			GA				—				1,132				10,080				103						1,132				10,183				11,315				368
08/26/2004		Atlanta / Cheshire Bridge Rd NE			GA				11,791				3,737				8,333				726						3,738				9,058				12,796				2,763
10/22/2014		Atlanta / Edgewood Ave SE			GA				7,699				588				10,295				59						588				10,354				10,942				320
04/03/2014		Atlanta / Mt Vernon Hwy			GA				—				2,961				19,819				94						2,961				19,913				22,874				877
08/26/2004		Atlanta / Roswell Rd			GA				—				1,665				2,028				292						1,665				2,320				3,985				762
02/28/2005		Atlanta / Virginia Ave			GA				6,294				3,319				8,325				729						3,319				9,054				12,373				2,706
11/04/2013		Augusta			GA				2,025				710				2,299				85						710				2,384				3,094				133
10/01/2015		Austell			GA				3,325				540				6,550				32						540				6,582				7,122				42
10/01/2015		Buford			GA				—				500				5,484				23						500				5,507				6,007				35
05/07/2015		Dacula / Auburn Rd			GA				4,468				2,087				4,295				136						2,087				4,431				6,518				56
01/17/2006		Dacula / Braselton Hwy			GA				3,670				1,993				3,001				180						1,993				3,181				5,174				863
06/17/2010		Douglasville			GA				—				1,209				719				398						1,209				1,117				2,326				241
10/01/2015		Duluth / Berkeley Lake Rd			GA				4,014				1,350				5,718				31						1,350				5,749				7,099				37
10/01/2015		Duluth / Breckinridge Blvd			GA				3,834				1,160				6,336				63						1,160				6,399				7,559				41
10/01/2015		Duluth / Peachtree Industrial Blvd			GA				4,163				440				7,516				26						440				7,542				7,982				48
11/30/2012		Eastpoint			GA				5,497				1,718				6,388				171						1,718				6,559				8,277				540

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
10/01/2015		Ellenwood			GA				2,666				260				3,992				26						260				4,018				4,278				26
06/14/2007		Johns Creek			GA				3,373				1,454				4,151				177						1,454				4,328				5,782				1,000
10/01/2015		Jonesboro			GA				—				540				6,174				14						540				6,188				6,728				40
06/17/2010		Kennesaw / Cobb Parkway NW			GA				—				673				1,151				195						673				1,346				2,019				237
10/01/2015		Kennesaw / George Busbee Pkwy			GA				4,702				500				9,126				—						500				9,126				9,626				59
11/04/2013		Lawrenceville / Hurricane Shoals Rd			GA				3,335				2,117				2,784				291						2,117				3,075				5,192				191
10/01/2015		Lawrenceville / Lawrenceville Hwy 1			GA				—				730				3,058				27						730				3,085				3,815				20
10/01/2015		Lawrenceville / Lawrenceville Hwy 2			GA				3,025				1,510				4,674				31						1,510				4,705				6,215				30
10/01/2015		Lawrenceville / Old Norcross Rd			GA				—				870				3,705				—						870				3,705				4,575				24
11/12/2009		Lithonia			GA				—				1,958				3,645				137						1,958				3,782				5,740				625
10/01/2015		Marietta / Austell Rd SW			GA				—				1,070				3,560				11						1,070				3,571				4,641				23
06/17/2010		Marietta / Cobb Parkway N			GA				—				887				2,617				332						887				2,949				3,836				488
10/01/2015		Marietta / Powers Ferry Rd			GA				5,421				430				9,242				24						430				9,266				9,696				59
10/01/2015		Marietta / West Oak Pkwy			GA				4,343				500				6,395				21						500				6,416				6,916				41
10/01/2015		Peachtree City			GA				—				1,080				8,628				12						1,080				8,640				9,720				55
04/24/2015		Powder Springs			GA				4,595				370				6,014				61						370				6,075				6,445				78
10/01/2015		Sandy Springs			GA				6,919				1,740				11,439				23						1,740				11,462				13,202				73
10/01/2015		Savannah / King George Blvd 1			GA				2,935				390				4,889				17						390				4,906				5,296				31
10/01/2015		Savannah / King George Blvd 2			GA				—				390				3,370				18						390				3,388				3,778				22
10/01/2015		Sharpsburg			GA				4,852				360				8,455				21						360				8,476				8,836				54
10/01/2015		Smyrna			GA				4,553				1,360				7,002				35						1,360				7,037				8,397				45
08/26/2004		Snellville			GA				—				2,691				4,026				330						2,691				4,356				7,047				1,384
08/26/2004		Stone Mountain / Annistown Rd			GA				2,784				1,817				4,382				328						1,817				4,710				6,527				1,464
07/01/2005		Stone Mountain / S Hairston Rd			GA				2,518				925				3,505				407						925				3,912				4,837				1,157
06/14/2007		Sugar Hill / Nelson Brogdon Blvd 1			GA				—				1,371				2,547				223						1,371				2,770				4,141				684
06/14/2007		Sugar Hill / Nelson Brogdon Blvd 2			GA				—				1,368				2,540				270						1,367				2,811				4,178				689
10/15/2013		Tucker			GA				5,848				1,773				10,456				67						1,773				10,523				12,296				598
10/01/2015		Wilmington Island			GA				5,571				760				9,423				32						760				9,455				10,215				60
05/03/2013		Honolulu			HI				17,382				4,674				18,350				183						4,674				18,533				23,207				1,257
06/25/2007		Kahului			HI				—				3,984				15,044				917						3,984				15,961				19,945				3,724
06/25/2007		Kapolei / Farrington Hwy 1			HI				9,289				—				24,701				564						—				25,265				25,265				5,686
12/06/2013		Kapolei / Farrington Hwy 2			HI				7,137				—				7,776				63						—				7,839				7,839				412
05/03/2013		Wahiawa			HI				3,553				1,317				2,626				120						1,317				2,746				4,063				194
11/04/2013		Bedford Park			IL				2,469				922				3,289				351						922				3,640				4,562				209
06/08/2015		Berwyn			IL				—				965				9,085				145						965				9,230				10,195				119
11/04/2013		Chicago / 60th St			IL				4,910				1,363				5,850				149						1,363				5,999				7,362				336
11/04/2013		Chicago / 87th St			IL				5,846				2,881				6,324				95						2,881				6,419				9,300				349
10/01/2015		Chicago / 95th St			IL				—				750				7,828				97						750				7,925				8,675				51
02/13/2013		Chicago / Montrose			IL				8,276				1,318				9,485				66						1,318				9,551				10,869				718
11/04/2013		Chicago / Pulaski Rd			IL				3,615				1,143				6,138				308						1,143				6,446				7,589				352

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
07/01/2005		Chicago / South Wabash			IL				—				621				3,428				2,226								621				5,654				6,275				1,618
11/10/2004		Chicago / Stony Island			IL				—				1,925				—				—								1,925				—				1,925				—
07/01/2005		Chicago / West Addison			IL				5,433				449				2,471				804								449				3,275				3,724				1,122
07/01/2005		Chicago / West Harrison			IL				4,477				472				2,582				2,820								472				5,402				5,874				1,186
10/01/2015		Chicago / Western Ave			IL				—				670				4,718				101								670				4,819				5,489				32
10/01/2015		Cicero / Ogden Ave			IL				—				1,590				9,371				68								1,590				9,439				11,029				61
10/01/2015		Cicero / Roosevelt Rd			IL				—				910				3,224				80								910				3,304				4,214				21
07/15/2003		Crest Hill			IL				2,340				847				2,946				812								968				3,637				4,605				1,187
10/01/2007		Gurnee			IL				—				1,374				8,296				128								1,374				8,424				9,798				1,803
12/01/2011		Highland Park			IL				11,852				5,798				6,016				105								5,798				6,121				11,919				667
11/04/2013		Lincolnshire			IL				3,585				1,438				5,128				34								1,438				5,162				6,600				281
12/01/2008		Naperville / Ogden Avenue			IL				—				2,800				7,355				(711	)			(d	)			1,950				7,494				9,444				1,385
12/01/2011		Naperville / State Route 59			IL				4,734				1,860				5,793				108								1,860				5,901				7,761				636
05/03/2008		North Aurora			IL				2,409				600				5,833				143								600				5,976				6,576				1,210
07/02/2012		Skokie			IL				3,857				1,119				7,502				208								1,119				7,710				8,829				710
10/15/2002		South Holland			IL				2,382				839				2,879				374								865				3,227				4,092				1,147
08/01/2008		Tinley Park			IL				—				1,823				4,794				993								1,548				6,062				7,610				985
10/10/2008		Carmel			IN				4,929				1,169				4,393				284								1,169				4,677				5,846				985
06/27/2011		Connersville			IN				1,097				472				315				120								472				435				907				82
10/31/2008		Ft Wayne			IN				—				1,899				3,292				293								1,899				3,585				5,484				789
10/10/2008		Indianapolis / Dandy Trail-Windham Lake Dr			IN				5,537				850				4,545				409								850				4,954				5,804				1,105
08/31/2007		Indianapolis / E 65th St			IN				—				588				3,457				335								588				3,792				4,380				965
11/30/2012		Indianapolis / E 86th St			IN				1,060				646				1,294				164								646				1,458				2,104				144
10/10/2008		Indianapolis / Southport Rd-Kildeer Dr			IN				—				426				2,903				389								426				3,292				3,718				748
10/10/2008		Mishawaka			IN				4,862				630				3,349				299								630				3,648				4,278				798
06/27/2011		Richmond			IN				—				723				482				438								723				920				1,643				155
04/13/2006		Wichita			KS				2,045				366				1,897				433								366				2,330				2,696				745
06/27/2011		Covington			KY				1,951				839				2,543				146								839				2,689				3,528				358
10/01/2015		Crescent Springs			KY				—				120				5,313				5								120				5,318				5,438				34
10/01/2015		Erlanger			KY				3,731				220				7,132				10								220				7,142				7,362				46
10/01/2015		Florence / Centennial Circle			KY				—				240				8,234				7								240				8,241				8,481				53
10/01/2015		Florence / Steilen Dr			KY				6,181				540				13,616				2								540				13,618				14,158				87
07/01/2005		Louisville / Bardstown Rd			KY				—				586				3,244				402								586				3,646				4,232				1,137
07/01/2005		Louisville / Warwick Ave			KY				4,137				1,217				4,611				214								1,217				4,825				6,042				1,417
12/01/2005		Louisville / Wattbourne Ln			KY				4,612				892				2,677				266								892				2,943				3,835				823
10/01/2015		Walton			KY				—				290				6,245				13								290				6,258				6,548				40
08/26/2004		Metairie			LA				3,688				2,056				4,216				314								2,056				4,530				6,586				1,362
08/26/2004		New Orleans			LA				5,213				4,058				4,325				703								4,059				5,027				9,086				1,652
06/01/2003		Ashland			MA				5,643				474				3,324				370								474				3,694				4,168				1,454

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
05/01/2004		Auburn			MA				—				918				3,728				365						919				4,092				5,011				1,667
11/04/2013		Billerica			MA				8,008				3,023				6,697				192						3,023				6,889				9,912				384
05/01/2004		Brockton / Centre St / Rte 123			MA				—				647				2,762				193						647				2,955				3,602				1,140
11/04/2013		Brockton / Oak St			MA				5,029				829				6,195				479						829				6,674				7,503				384
11/09/2012		Danvers			MA				7,662				3,115				5,736				188						3,115				5,924				9,039				487
02/06/2004		Dedham / Allied Dr			MA				—				2,443				7,328				1,411						2,443				8,739				11,182				2,949
03/04/2002		Dedham / Milton St			MA				5,935				2,127				3,041				935						2,127				3,976				6,103				1,540
05/13/2015		Dedham / Providence Highway			MA				—				1,625				10,875				9						1,625				10,884				12,509				139
02/06/2004		East Somerville			MA				—				—				—				159						—				159				159				120
07/01/2005		Everett			MA				—				692				2,129				1,092						692				3,221				3,913				1,069
05/01/2004		Foxboro			MA				—				759				4,158				479						759				4,637				5,396				2,031
07/02/2012		Framingham			MA				—				—				—				47						—				47				47				14
05/01/2004		Hudson			MA				3,287				806				3,122				471						806				3,593				4,399				1,590
12/31/2007		Jamaica Plain			MA				9,245				3,285				11,275				637						3,285				11,912				15,197				2,526
10/18/2002		Kingston			MA				5,351				555				2,491				215						555				2,706				3,261				1,078
06/22/2001		Lynn			MA				—				1,703				3,237				438						1,703				3,675				5,378				1,490
03/31/2004		Marshfield			MA				4,533				1,039				4,155				270						1,026				4,438				5,464				1,414
11/14/2002		Milton			MA				—				2,838				3,979				6,656						2,838				10,635				13,473				2,774
11/04/2013		North Andover			MA				3,679				773				4,120				126						773				4,246				5,019				240
10/15/1999		North Oxford			MA				3,780				482				1,762				515						527				2,232				2,759				993
02/28/2001		Northborough			MA				4,489				280				2,715				571						280				3,286				3,566				1,445
08/15/1999		Norwood			MA				6,523				2,160				2,336				1,824						2,221				4,099				6,320				1,570
07/01/2005		Plainville			MA				4,913				2,223				4,430				461						2,223				4,891				7,114				1,728
02/06/2004		Quincy			MA				6,910				1,359				4,078				426						1,360				4,503				5,863				1,451
05/15/2000		Raynham			MA				—				588				2,270				762						670				2,950				3,620				1,200
12/01/2011		Revere			MA				4,821				2,275				6,935				183						2,275				7,118				9,393				774
06/01/2003		Saugus			MA				9,142				1,725				5,514				581						1,725				6,095				7,820				2,207
06/15/2001		Somerville			MA				11,664				1,728				6,570				939						1,731				7,506				9,237				2,757
07/01/2005		Stoneham			MA				5,826				944				5,241				187						944				5,428				6,372				1,568
05/01/2004		Stoughton			MA				—				1,754				2,769				323						1,755				3,091				4,846				1,315
07/02/2012		Tyngsboro			MA				3,403				1,843				5,004				71						1,843				5,075				6,918				463
02/06/2004		Waltham			MA				5,095				3,770				11,310				1,120						3,770				12,430				16,200				3,984
09/14/2000		Weymouth			MA				—				2,806				3,129				231						2,806				3,360				6,166				1,424
02/06/2004		Woburn			MA				—				—				—				283						—				283				283				146
12/01/2006		Worcester / Ararat St			MA				3,989				1,350				4,433				182						1,350				4,615				5,965				1,129
05/01/2004		Worcester / Millbury St			MA				4,383				896				4,377				3,206						896				7,583				8,479				2,754
08/31/2007		Annapolis / Renard Ct / Annex			MD				15,544				1,375				8,896				341						1,376				9,236				10,612				2,153
04/17/2007		Annapolis / Trout Rd			MD				6,291				5,248				7,247				219						5,247				7,467				12,714				1,755
07/01/2005		Arnold			MD				8,835				2,558				9,446				500						2,558				9,946				12,504				2,844
05/31/2012		Baltimore / Eastern Ave 1			MD				4,434				1,185				5,051				166						1,185				5,217				6,402				502

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Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
02/13/2013		Baltimore / Eastern Ave 2			MD				6,997				1,266				10,789				134								1,266				10,923				12,189				821
11/01/2008		Baltimore / Moravia Rd			MD				4,360				800				5,955				160								800				6,115				6,915				1,163
06/01/2010		Baltimore / N Howard St			MD				—				1,900				5,277				155								1,900				5,432				7,332				807
07/01/2005		Bethesda			MD				11,900				3,671				18,331				1,347								3,671				19,678				23,349				6,084
10/20/2010		Capitol Heights			MD				8,105				1,461				9,866				244								1,461				10,110				11,571				1,429
03/07/2012		Cockeysville			MD				3,743				465				5,600				304								465				5,904				6,369				624
07/01/2005		Columbia			MD				7,810				1,736				9,632				377								1,736				10,009				11,745				2,819
12/02/2005		Edgewood / Pulaski Hwy 1			MD				—				1,000				—				(575	)			(d	)			425				—				425				—
09/10/2015		Edgewood / Pulaski Hwy 2			MD				—				794				5,178				97								794				5,275				6,069				45
01/11/2007		Ft. Washington			MD				8,848				4,920				9,174				231								4,920				9,405				14,325				2,252
07/02/2012		Gambrills			MD				4,758				1,905				7,104				207								1,905				7,311				9,216				652
07/08/2011		Glen Burnie			MD				11,247				1,303				4,218				347								1,303				4,565				5,868				623
06/10/2013		Hanover			MD				—				2,160				11,340				67								2,160				11,407				13,567				750
02/06/2004		Lanham			MD				11,753				3,346				10,079				706								2,618				11,513				14,131				3,797
12/27/2007		Laurel			MD				5,849				3,000				5,930				197								3,000				6,127				9,127				1,325
12/27/2012		Lexington Park			MD				—				4,314				8,412				160								4,314				8,572				12,886				688
09/17/2008		Pasadena / Fort Smallwood Rd			MD				10,025				1,869				3,056				706								1,869				3,762				5,631				966
03/24/2011		Pasadena / Mountain Rd			MD				—				3,500				7,407				155								3,500				7,562				11,062				911
08/01/2011		Randallstown			MD				4,450				764				6,331				314								764				6,645				7,409				809
09/01/2006		Rockville			MD				12,011				4,596				11,328				392								4,596				11,720				16,316				2,890
07/01/2005		Towson / East Joppa Rd 1			MD				3,810				861				4,742				249								861				4,991				5,852				1,472
07/02/2012		Towson / East Joppa Rd 2			MD				6,018				1,094				9,598				156								1,094				9,754				10,848				882
07/02/2012		Belleville			MI				3,763				954				4,984				116								954				5,100				6,054				464
07/01/2005		Grandville			MI				—				726				1,298				432								726				1,730				2,456				641
07/01/2005		Mt Clemens			MI				—				798				1,796				517								798				2,313				3,111				739
08/31/2007		Florissant			MO				3,311				1,241				4,648				346								1,241				4,994				6,235				1,254
07/01/2005		Grandview			MO				—				612				1,770				417								612				2,187				2,799				784
06/01/2000		St Louis / Forest Park			MO				2,479				156				1,313				634								173				1,930				2,103				899
08/31/2007		St Louis / Gravois Rd			MO				2,607				676				3,551				351								676				3,902				4,578				994
06/01/2000		St Louis / Halls Ferry Rd			MO				2,507				631				2,159				691								690				2,791				3,481				1,178
08/31/2007		St Louis / Old Tesson Rd			MO				6,397				1,444				4,162				366								1,444				4,528				5,972				1,139
10/01/2015		Biloxi			MS				—				770				3,947				24								770				3,971				4,741				25
10/01/2015		Canton			MS				—				1,240				7,767				9								1,240				7,776				9,016				50
10/01/2015		Ridgeland			MS				—				410				9,135				32								410				9,167				9,577				59
10/15/2013		Cary			NC				4,229				3,614				1,788				13								3,614				1,801				5,415				102
05/05/2015		Charlotte / Monroe Rd			NC				—				4,050				6,867				136								4,050				7,003				11,053				90
12/08/2015		Charlotte / S Tryon St			NC				—				1,372				3,931				1								1,372				3,932				5,304				—
06/19/2015		Charlotte / Wendover Rd			NC				—				1,408				5,461				55								1,408				5,516				6,924				71
10/01/2015		Concord			NC				—				770				4,873				27								770				4,900				5,670				31
12/11/2014		Greensboro / High Point Rd			NC				3,712				1,069				4,199				70								1,069				4,269				5,338				113

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
12/11/2014		Greensboro / Lawndale Drive			NC				6,502				3,725				7,036				112								3,723				7,150				10,873				189
10/01/2015		Hickory			NC				—				400				5,844				18								400				5,862				6,262				37
12/11/2014		Hickory			NC				3,329				875				5,418				60								875				5,478				6,353				146
10/01/2015		Morganton			NC				—				600				5,724				22								600				5,746				6,346				37
06/18/2014		Raleigh			NC				—				2,940				4,265				72								2,940				4,337				7,277				174
12/11/2014		Winston-Salem / Peters Creek Pkwy			NC				3,011				1,548				3,495				97								1,548				3,592				5,140				95
12/11/2014		Winston-Salem / University Pkwy			NC				4,266				1,131				5,084				66								1,131				5,150				6,281				136
04/15/1999		Merrimack			NH				3,793				754				3,299				612								817				3,848				4,665				1,410
07/01/2005		Nashua			NH				—				—				755				116								—				871				871				366
01/01/2005		Avenel			NJ				—				1,518				8,037				426								1,518				8,463				9,981				2,536
12/28/2004		Bayville			NJ				3,648				1,193				5,312				398								1,193				5,710				6,903				1,767
09/01/2008		Bellmawr			NJ				3,296				3,600				4,765				390								3,675				5,080				8,755				908
07/18/2012		Berkeley Heights			NJ				6,887				1,598				7,553				197								1,598				7,750				9,348				703
12/18/2014		Burlington			NJ				3,846				477				6,534				153								477				6,687				7,164				182
10/07/2015		Cherry Hill / Church Rd			NJ				—				1,057				6,037				7								1,057				6,044				7,101				—
11/30/2012		Cherry Hill / Marlton Pike			NJ				2,534				2,323				1,549				321								2,323				1,870				4,193				171
12/18/2014		Cherry Hill / Rockhill Rd			NJ				1,960				536				3,407				56								536				3,463				3,999				96
11/30/2012		Cranbury			NJ				6,910				3,543				5,095				771								3,543				5,866				9,409				480
12/18/2014		Denville			NJ				8,926				584				14,398				110								584				14,508				15,092				386
12/31/2001		Edison			NJ				8,591				2,519				8,547				1,638								2,518				10,186				12,704				3,536
12/31/2001		Egg Harbor Township			NJ				3,980				1,724				5,001				723								1,724				5,724				7,448				2,315
03/15/2007		Ewing			NJ				—				1,552				4,720				(44	)			(c, d	)			1,562				4,666				6,228				1,136
07/18/2012		Fairfield			NJ				6,001				—				9,402				105								—				9,507				9,507				862
11/30/2012		Fort Lee / Bergen Blvd			NJ				12,649				4,402				9,831				319								4,402				10,150				14,552				836
10/01/2015		Fort Lee / Main St			NJ				—				2,280				27,409				33								2,280				27,442				29,722				176
03/15/2001		Glen Rock			NJ				—				1,109				2,401				559								1,222				2,847				4,069				1,048
12/18/2014		Hackensack / Railroad Ave			NJ				7,630				2,053				9,882				95								2,053				9,977				12,030				268
07/01/2005		Hackensack / South River St			NJ				—				2,283				11,234				911								2,283				12,145				14,428				3,650
08/23/2012		Hackettstown			NJ				5,879				2,144				6,660				144								2,144				6,804				8,948				619
07/02/2012		Harrison			NJ				3,529				300				6,003				260								300				6,263				6,563				574
12/31/2001		Hazlet			NJ				7,580				1,362				10,262				1,781								1,362				12,043				13,405				4,100
07/02/2002		Hoboken			NJ				7,765				2,687				6,092				324								2,687				6,416				9,103				2,302
12/31/2001		Howell			NJ				3,259				2,440				3,407				450								2,440				3,857				6,297				1,559
12/31/2001		Iselin			NJ				4,696				505				4,524				584								505				5,108				5,613				2,048
10/01/2015		Jersey City			NJ				—				8,050				16,342				113								8,050				16,455				24,505				106
11/30/2012		Lawnside			NJ				5,000				1,249				5,613				284								1,249				5,897				7,146				497
02/06/2004		Lawrenceville			NJ				5,261				3,402				10,230				534								3,402				10,764				14,166				3,466
07/01/2005		Linden			NJ				3,673				1,517				8,384				291								1,517				8,675				10,192				2,440
12/22/2004		Lumberton			NJ				3,986				831				4,060				292								831				4,352				5,183				1,395
03/15/2001		Lyndhurst			NJ				—				2,679				4,644				1,032								2,928				5,427				8,355				1,951

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
08/23/2012		Mahwah			NJ				10,934				1,890				13,112				275						1,890				13,387				15,277				1,225
12/16/2011		Maple Shade			NJ				4,043				1,093				5,492				180						1,093				5,672				6,765				631
12/07/2001		Metuchen			NJ				5,491				1,153				4,462				355						1,153				4,817				5,970				1,796
08/28/2012		Montville			NJ				7,958				1,511				11,749				130						1,511				11,879				13,390				1,054
02/06/2004		Morrisville			NJ				—				2,487				7,494				2,202						1,688				10,495				12,183				2,855
07/02/2012		Mt Laurel			NJ				2,993				329				5,217				184						329				5,401				5,730				508
11/02/2006		Neptune			NJ				7,235				4,204				8,906				380						4,204				9,286				13,490				2,297
07/18/2012		Newark			NJ				7,330				806				8,340				137						806				8,477				9,283				775
07/01/2005		North Bergen / 83rd St			NJ				10,002				2,299				12,728				540						2,299				13,268				15,567				3,768
10/06/2011		North Bergen / Kennedy Blvd			NJ				—				861				17,127				242						861				17,369				18,230				1,902
07/25/2003		North Bergen / River Rd			NJ				8,935				2,100				6,606				330						2,100				6,936				9,036				2,366
07/18/2012		North Brunswick			NJ				6,128				2,789				4,404				150						2,789				4,554				7,343				435
12/31/2001		Old Bridge			NJ				5,525				2,758				6,450				1,005						2,758				7,455				10,213				2,917
05/01/2004		Parlin / Cheesequake Rd			NJ				—				—				5,273				458						—				5,731				5,731				2,418
07/01/2005		Parlin / Route 9 North			NJ				—				2,517				4,516				560						2,517				5,076				7,593				1,728
07/18/2012		Parsippany			NJ				6,322				2,353				7,798				142						2,354				7,939				10,293				739
06/02/2011		Pennsauken			NJ				3,667				1,644				3,115				362						1,644				3,477				5,121				487
10/01/2015		Riverdale			NJ				7,158				2,000				14,541				21						2,000				14,562				16,562				93
12/09/2009		South Brunswick			NJ				2,915				1,700				5,835				161						1,700				5,996				7,696				944
07/01/2005		Toms River / Route 37 East 1			NJ				4,843				1,790				9,935				468						1,790				10,403				12,193				3,058
10/01/2015		Toms River / Route 37 East 2			NJ				—				1,800				10,765				14						1,800				10,779				12,579				69
10/01/2015		Toms River / Route 9			NJ				—				980				4,717				25						980				4,742				5,722				30
10/01/2015		Trenton			NJ				—				2,180				8,007				42						2,180				8,049				10,229				51
12/28/2004		Union / Green Ln			NJ				6,222				1,754				6,237				424						1,754				6,661				8,415				2,061
11/30/2012		Union / Route 22 West			NJ				6,908				1,133				7,239				200						1,133				7,439				8,572				612
11/30/2012		Watchung			NJ				6,811				1,843				4,499				242						1,843				4,741				6,584				405
11/30/2012		Albuquerque / Airport Dr NW			NM				—				755				1,797				77						755				1,874				2,629				160
08/31/2007		Albuquerque / Calle Cuervo NW			NM				4,506				1,298				4,628				670						1,298				5,298				6,596				1,303
07/02/2012		Santa Fe			NM				5,724				3,066				7,366				431						3,066				7,797				10,863				725
10/01/2015		Henderson / Racetrack Rd			NV				4,672				1,470				6,348				66						1,470				6,414				7,884				41
11/30/2012		Henderson / Stephanie Pl			NV				8,048				2,934				8,897				270						2,934				9,167				12,101				757
10/01/2015		Las Vegas / Bonanza Rd			NV				3,984				820				6,716				62						820				6,778				7,598				43
10/01/2015		Las Vegas / Durango Dr			NV				—				1,140				4,384				50						1,140				4,434				5,574				28
06/22/2011		Las Vegas / Jones Blvd			NV				2,402				1,441				1,810				140						1,441				1,950				3,391				272
10/01/2015		Las Vegas / Las Vegas Blvd			NV				—				2,830				6,834				90						2,830				6,924				9,754				45
02/22/2000		Las Vegas / N Lamont St			NV				1,144				251				717				539						278				1,229				1,507				610
11/01/2013		Las Vegas / North Lamb Blvd			NV				2,601				279				3,900				18						279				3,918				4,197				652
10/01/2015		Las Vegas / Pecos Rd			NV				—				1,420				5,900				65						1,420				5,965				7,385				38
10/01/2015		Las Vegas / Rancho Dr			NV				—				590				5,899				53						590				5,952				6,542				38
10/01/2015		Las Vegas / W Charleston Blvd			NV				—				550				1,319				70						550				1,389				1,939				8

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
11/30/2012		Las Vegas / W Sahara Ave			NV				4,321				773				6,006				182						773				6,188				6,961				514
11/30/2012		Las Vegas / W Tropicana Ave			NV				4,222				400				4,936				86						400				5,022				5,422				425
10/01/2015		North Las Vegas			NV				—				1,260				4,589				59						1,260				4,648				5,908				29
10/01/2015		Ballston Spa			NY				—				890				9,941				22						890				9,963				10,853				64
12/19/2007		Bohemia			NY				—				1,456				1,398				394						1,456				1,792				3,248				439
12/01/2011		Bronx / Edson Av			NY				17,369				3,450				21,210				422						3,450				21,632				25,082				2,320
08/26/2004		Bronx / Fordham Rd			NY				9,289				3,995				11,870				798						3,995				12,668				16,663				3,948
10/02/2008		Brooklyn / 3rd Ave			NY				19,087				12,993				10,405				386						12,993				10,791				23,784				2,108
07/02/2012		Brooklyn / 64th St			NY				21,188				16,188				23,309				347						16,257				23,587				39,844				2,146
05/21/2010		Brooklyn / Atlantic Ave			NY				7,790				2,802				6,536				282						2,802				6,818				9,620				1,063
12/11/2014		Brooklyn / Avenue M			NY				—				12,085				7,665				—						12,085				7,665				19,750				—
10/02/2008		Centereach			NY				4,073				2,226				1,657				222						2,226				1,879				4,105				427
08/10/2012		Central Valley			NY				—				2,800				12,173				475						2,800				12,648				15,448				1,182
11/23/2010		Freeport			NY				—				5,676				3,784				892						5,676				4,676				10,352				844
07/02/2012		Hauppauge			NY				5,482				1,238				7,095				352						1,238				7,447				8,685				697
07/02/2012		Hicksville			NY				8,633				2,581				10,677				88						2,581				10,765				13,346				966
07/02/2012		Kingston			NY				4,789				837				6,199				131						837				6,330				7,167				582
11/26/2002		Mt Vernon / N Mac Questen Pkwy			NY				7,950				1,926				7,622				977						1,926				8,599				10,525				2,946
07/01/2005		Mt Vernon / Northwest St			NY				—				1,585				6,025				2,838						1,585				8,863				10,448				2,679
02/07/2002		Nanuet			NY				3,588				2,072				4,644				1,723						2,738				5,701				8,439				2,094
07/01/2005		New Paltz			NY				4,335				2,059				3,715				469						2,059				4,184				6,243				1,367
07/01/2005		New York			NY				18,346				3,060				16,978				779						3,060				17,757				20,817				5,088
12/04/2000		Plainview			NY				7,475				4,287				3,710				734						4,287				4,444				8,731				1,889
07/18/2012		Poughkeepsie			NY				5,879				1,038				7,862				135						1,038				7,997				9,035				736
07/02/2012		Ridge			NY				6,050				1,762				6,934				59						1,762				6,993				8,755				626
06/27/2011		Cincinnati / Glencrossing Way			OH				—				1,217				1,941				185						1,217				2,126				3,343				283
06/27/2011		Cincinnati / Glendale-Milford Rd			OH				4,444				1,815				5,733				272						1,815				6,005				7,820				805
06/27/2011		Cincinnati / Hamilton Ave			OH				—				2,941				2,177				272						2,941				2,449				5,390				375
06/27/2011		Cincinnati / Wooster Pk			OH				5,349				1,445				3,755				269						1,445				4,024				5,469				556
07/01/2005		Columbus / Innis Rd			OH				—				483				2,654				703						483				3,357				3,840				1,181
11/01/2013		Columbus / Kenny Rd			OH				—				1,227				5,057				78						1,227				5,135				6,362				788
11/04/2013		Fairfield			OH				3,769				904				3,856				302						904				4,158				5,062				250
06/27/2011		Greenville			OH				—				189				302				78						189				380				569				66
06/27/2011		Hamilton			OH				—				673				2,910				139						673				3,049				3,722				389
11/30/2012		Hilliard			OH				2,021				1,613				2,369				241						1,613				2,610				4,223				260
07/01/2005		Kent			OH				—				220				1,206				265						220				1,471				1,691				539
06/27/2011		Lebanon			OH				4,039				1,657				1,566				340						1,657				1,906				3,563				281
11/30/2012		Mentor / Heisley Rd			OH				1,226				658				1,267				332						658				1,599				2,257				157
07/02/2012		Mentor / Mentor Ave			OH				1,254				409				1,609				153						409				1,762				2,171				188
06/27/2011		Middletown			OH				1,223				534				1,047				116						533				1,164				1,697				171

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
06/27/2011		Sidney			OH				—				201				262				81						201				343				544				63
06/27/2011		Troy			OH				—				273				544				127						273				671				944				118
06/27/2011		Washington Court House			OH				—				197				499				71						197				570				767				90
11/01/2013		Whitehall			OH				—				726				1,965				115						726				2,080				2,806				295
07/02/2012		Willoughby			OH				1,035				155				1,811				78						155				1,889				2,044				172
06/27/2011		Xenia			OH				—				302				1,022				64						302				1,086				1,388				153
07/01/2005		Aloha / NW 185th Ave			OR				6,022				1,221				6,262				298						1,221				6,560				7,781				1,942
07/02/2012		Aloha / SW 229th Ave			OR				4,569				2,014				5,786				165						2,014				5,951				7,965				542
11/24/2015		Hillsboro			OR				—				732				9,158				16						732				9,174				9,906				—
09/15/2009		King City			OR				2,957				2,520				6,845				67						2,520				6,912				9,432				1,081
12/28/2004		Bensalem / Bristol Pike			PA				3,188				1,131				4,525				323						1,131				4,848				5,979				1,509
03/30/2006		Bensalem / Knights Rd.			PA				—				750				3,015				197						750				3,212				3,962				894
10/01/2015		Collegeville			PA				—				490				6,947				103						490				7,050				7,540				46
11/15/1999		Doylestown			PA				—				220				3,442				1,129						521				4,270				4,791				1,592
05/01/2004		Kennedy Township			PA				2,529				736				3,173				285						736				3,458				4,194				1,431
02/06/2004		Philadelphia / Roosevelt Bl			PA				5,473				1,965				5,925				1,237						1,965				7,162				9,127				2,372
11/01/2013		Philadelphia / Wayne Ave			PA				—				596				10,368				44						596				10,412				11,008				1,148
08/03/2000		Pittsburgh / E Entry Dr			PA				2,529				991				1,990				924						1,082				2,823				3,905				1,154
10/01/2015		Pittsburgh / Landings Dr			PA				—				400				3,936				31						400				3,967				4,367				25
05/01/2004		Pittsburgh / Penn Ave			PA				3,730				889				4,117				636						889				4,753				5,642				1,991
10/01/2015		Skippack			PA				—				720				4,552				80						720				4,632				5,352				29
10/01/2015		West Mifflin			PA				—				840				8,931				68						840				8,999				9,839				57
01/01/2011		Willow Grove			PA				5,058				1,297				4,027				343						1,297				4,370				5,667				624
07/01/2005		Johnston / Hartford Ave			RI				—				2,658				4,799				643						2,658				5,442				8,100				1,691
12/01/2011		Johnston / Plainfield			RI				1,827				533				2,127				76						533				2,203				2,736				243
10/01/2015		Bluffton			SC				—				1,010				8,673				—						1,010				8,673				9,683				56
10/01/2015		Charleston / Ashley River Rd			SC				—				500				5,390				19						500				5,409				5,909				35
08/26/2004		Charleston / Glenn McConnell Pkwy			SC				3,416				1,279				4,171				272						1,279				4,443				5,722				1,371
10/01/2015		Charleston / Maybank Hwy			SC				5,601				600				9,364				31						600				9,395				9,995				60
10/01/2015		Charleston / Savannah Hwy			SC				—				370				3,794				21						370				3,815				4,185				24
03/30/2015		Columbia / Clemson Rd			SC				—				1,483				5,415				61						1,483				5,476				6,959				111
07/19/2012		Columbia / Decker Blvd			SC				3,208				1,784				2,745				136						1,784				2,881				4,665				262
08/26/2004		Columbia / Harban Ct			SC				2,737				838				3,312				339						839				3,650				4,489				1,153
10/01/2015		Columbia / Percival Rd			SC				—				480				2,115				—						480				2,115				2,595				14
08/26/2004		Goose Creek			SC				—				1,683				4,372				1,088						1,683				5,460				7,143				1,594
10/01/2015		Greenville			SC				—				620				8,467				—						620				8,467				9,087				54
10/01/2015		Lexington / Northpoint Dr			SC				—				780				5,732				3						780				5,735				6,515				37
10/01/2015		Lexington / St Peters Church Rd			SC				—				750				1,481				—						750				1,481				2,231				9
10/01/2015		Mt Pleasant / Bowman Rd			SC				—				1,740				3,094				69						1,740				3,163				4,903				20
10/01/2015		Mt Pleasant / Hwy 17 N			SC				4,702				4,600				2,342				2						4,600				2,344				6,944				15

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
10/01/2015		Mt Pleasant / Stockade Ln			SC				14,347				11,680				19,626				—						11,680				19,626				31,306				126
10/01/2015		Myrtle Beach			SC				—				510				3,921				—						510				3,921				4,431				25
10/01/2015		North Charleston			SC				5,809				1,250				8,753				19						1,250				8,772				10,022				57
03/30/2015		North Charleston / Dorchester Road			SC				—				280				5,814				71						280				5,885				6,165				119
08/26/2004		Summerville / Old Trolley Rd			SC				—				450				4,454				239						450				4,693				5,143				1,442
12/11/2014		Taylors			SC				5,398				1,433				6,071				77						1,433				6,148				7,581				166
07/02/2012		Bartlett			TN				2,346				632				3,798				109						632				3,907				4,539				357
04/15/2011		Cordova / Houston Levee Rd			TN				1,971				652				1,791				94						652				1,885				2,537				265
07/01/2005		Cordova / N Germantown Pkwy 1			TN				—				852				2,720				319						852				3,039				3,891				989
11/01/2013		Cordova / N Germantown Pkwy 2			TN				6,794				8,187				4,628				80						8,187				4,708				12,895				1,077
01/05/2007		Cordova / Patriot Cove			TN				—				894				2,680				161						894				2,841				3,735				717
11/30/2012		Franklin			TN				7,000				3,357				8,984				195						3,357				9,179				12,536				778
10/01/2015		Knoxville / Ebenezer Rd			TN				7,338				470				13,299				—						470				13,299				13,769				85
10/01/2015		Knoxville / Lovell Rd			TN				5,152				1,360				8,475				—						1,360				8,475				9,835				54
10/01/2015		Lenoir City			TN				5,481				850				10,738				—						850				10,738				11,588				69
10/01/2015		Memphis			TN				—				570				8,893				26						570				8,919				9,489				57
07/02/2012		Memphis / Covington Way			TN				1,599				274				2,623				39						274				2,662				2,936				244
11/30/2012		Memphis / Mt Moriah			TN				2,518				1,617				2,875				164						1,617				3,039				4,656				260
11/01/2013		Memphis / Mt Moriah Terrace			TN				7,925				1,313				2,928				274						1,313				3,202				4,515				428
07/02/2012		Memphis / Raleigh-LaGrange			TN				972				110				1,280				68						110				1,348				1,458				126
11/01/2013		Memphis / Riverdale Bend			TN				—				803				4,635				134						803				4,769				5,572				588
11/30/2012		Memphis / Summer Ave			TN				3,388				1,040				3,867				172						1,040				4,039				5,079				347
04/13/2006		Nashville			TN				2,810				390				2,598				961						390				3,559				3,949				1,211
11/22/2006		Allen			TX				4,410				901				5,553				292						901				5,845				6,746				1,463
04/15/2015		Arlington / Debbie Lane			TX				—				742				7,072				38						742				7,110				7,852				129
08/26/2004		Arlington / E Pioneer Pkwy			TX				—				534				2,525				467						534				2,992				3,526				1,054
10/01/2015		Arlington / Randol Mill Rd			TX				—				630				5,214				22						630				5,236				5,866				33
04/15/2015		Arlington / US 287 Frontage Rd			TX				2,674				567				5,340				192						567				5,532				6,099				105
04/15/2015		Arlington / Watson Rd			TX				2,701				698				3,862				247						698				4,109				4,807				79
01/13/2015		Austin / 1st Street			TX				—				807				7,689				170						807				7,859				8,666				197
01/13/2015		Austin / Brodie Lane			TX				5,717				1,155				8,552				185						1,155				8,737				9,892				222
08/26/2004		Austin / Burnet Rd			TX				8,893				870				4,455				377						870				4,832				5,702				1,542
01/13/2015		Austin / Capital of Texas Hwy			TX				—				10,117				13,248				156						10,117				13,404				23,521				336
11/01/2013		Austin / McNeil Dr			TX				—				3,411				4,502				76						3,411				4,578				7,989				613
08/08/2014		Austin / North Lamar Blvd			TX				5,041				1,047				9,969				157						1,047				10,126				11,173				362
04/14/2015		Baytown			TX				6,586				619				7,861				55						619				7,916				8,535				103
04/15/2015		Coppell / Belt Line Rd			TX				4,295				724				5,743				206						724				5,949				6,673				108
10/01/2015		Coppell / Denton Tap Rd			TX				—				2,270				9,333				16						2,270				9,349				11,619				60
04/15/2015		Dallas / Clark Rd			TX				5,011				1,837				8,426				390						1,837				8,816				10,653				162
08/26/2004		Dallas / E Northwest Hwy			TX				—				4,432				6,181				1,199						4,432				7,380				11,812				2,261

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
04/13/2006		Dallas / Garland Rd			TX				1,974				337				2,216				638						337				2,854				3,191				947
04/15/2015		Dallas / Haskell Ave			TX				—				275				11,183				255						275				11,438				11,713				209
05/04/2006		Dallas / Inwood Rd			TX				11,106				1,980				12,501				507						1,979				13,009				14,988				3,364
04/15/2015		Dallas / Lyndon B Johnson Freeway			TX				4,615				1,729				7,876				427						1,729				8,303				10,032				153
11/01/2013		Dallas / N Central Expressway			TX				17,137				13,392				15,019				56						13,392				15,075				28,467				1,250
07/02/2012		Dallas / Preston Rd 1			TX				5,082				921				7,656				119						921				7,775				8,696				719
08/10/2012		Dallas / Preston Rd 2			TX				3,806				2,542				3,274				269						2,542				3,543				6,085				365
04/15/2015		Dallas / Shiloh Rd			TX				3,293				781				7,104				287						781				7,391				8,172				138
10/01/2015		Dallas / W Northwest Hwy			TX				—				1,320				6,547				34						1,320				6,581				7,901				42
04/15/2015		Dallas / Walton Walker Blvd			TX				2,904				547				5,970				294						547				6,264				6,811				116
04/15/2015		DeSoto			TX				5,404				821				8,298				223						821				8,521				9,342				157
04/15/2015		Duncanville / E Hwy 67			TX				4,053				1,328				4,997				234						1,328				5,231				6,559				97
04/15/2015		Duncanville / E Wheatland Rd			TX				—				793				7,062				231						793				7,293				8,086				137
10/01/2015		El Paso / Desert Blvd			TX				—				890				3,207				24						890				3,231				4,121				21
10/01/2015		El Paso / Dyer St			TX				—				1,510				5,034				21						1,510				5,055				6,565				32
10/01/2015		El Paso / Joe Battle Blvd 1			TX				—				1,010				5,238				36						1,010				5,274				6,284				34
10/01/2015		El Paso / Joe Battle Blvd 2			TX				—				850				2,775				28						850				2,803				3,653				18
10/01/2015		El Paso / Woodrow Bean Dr			TX				—				420				1,752				11						420				1,763				2,183				11
05/08/2013		Euless / Mid-Cities Blvd			TX				4,342				1,374				5,636				125						1,374				5,761				7,135				405
04/01/2011		Euless / W Euless Blvd			TX				2,845				671				3,213				704						671				3,917				4,588				642
12/09/2013		Fort Worth / Mandy Lane			TX				2,093				2,033				2,495				143						2,033				2,638				4,671				156
08/26/2004		Fort Worth / W Rosedale St			TX				4,236				631				5,794				390						630				6,185				6,815				1,908
11/04/2013		Fort Worth / White Settlement Rd			TX				3,663				3,158				2,512				81						3,158				2,593				5,751				153
11/04/2013		Garland / Beltline Rd			TX				3,319				1,424				2,209				199						1,424				2,408				3,832				145
04/15/2015		Garland / Texas 66			TX				4,598				991				6,999				188						991				7,187				8,178				135
08/26/2004		Grand Prairie / N Hwy 360 1			TX				2,437				551				2,330				426						551				2,756				3,307				888
08/10/2012		Grand Prairie / N Hwy 360 2			TX				3,121				2,327				1,551				178						2,327				1,729				4,056				184
11/13/2015		Houston / 3535 Katy Freeway			TX				—				6,643				7,551				—						6,643				7,551				14,194				32
02/05/2014		Houston / Katy Fwy			TX				—				1,767				12,368				48						1,767				12,416				14,183				599
12/14/2010		Houston / Ryewater Dr			TX				—				402				1,870				219						402				2,089				2,491				327
10/01/2015		Houston / Senate Ave			TX				—				1,510				5,235				3						1,510				5,238				6,748				34
11/01/2013		Houston / South Main			TX				—				2,017				4,181				125						2,017				4,306				6,323				636
04/13/2006		Houston / Southwest Freeway			TX				8,661				2,596				8,735				419						2,596				9,154				11,750				2,394
02/29/2012		Houston / Space Center Blvd			TX				5,652				1,036				8,133				104						1,036				8,237				9,273				847
04/15/2015		Irving / N State Hwy 161			TX				—				951				5,842				195						951				6,037				6,988				110
04/15/2015		Irving / Story Rd			TX				—				585				5,445				177						585				5,622				6,207				103
10/01/2015		Kemah			TX				12,220				2,720				26,547				12						2,720				26,559				29,279				170
11/04/2013		Killeen			TX				2,601				1,207				1,688				361						1,207				2,049				3,256				131
12/14/2010		La Porte			TX				—				1,608				2,351				324						1,608				2,675				4,283				443
04/15/2015		Lewisville			TX				5,029				2,665				6,399				219						2,665				6,618				9,283				121

Table of Contents

Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes				Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
04/15/2015		Mansfield			TX				4,330				925				7,411				158								925				7,569				8,494				142
04/15/2015		Mesquite			TX				5,536				1,910				6,580				125								1,910				6,705				8,615				123
10/01/2015		Midland / Andrews Hwy			TX				—				1,430				8,353				23								1,430				8,376				9,806				54
10/01/2015		Midland / Loop 250 N			TX				—				1,320				10,291				—								1,320				10,291				11,611				66
10/01/2015		Pearland			TX				5,691				3,400				7,812				2								3,400				7,814				11,214				50
04/15/2015		Plano / 14th Street			TX				5,354				1,681				7,606				215								1,681				7,821				9,502				145
04/15/2015		Plano / K Ave 1			TX				5,445				1,631				8,498				425								1,631				8,923				10,554				168
04/15/2015		Plano / K Ave 2			TX				4,124				1,298				5,293				149								1,298				5,442				6,740				100
11/22/2006		Plano / Plano Parkway			TX				5,049				1,010				6,203				502								1,010				6,705				7,715				1,664
11/22/2006		Plano / Spring Creek			TX				4,386				614				3,775				345								613				4,121				4,734				1,053
11/01/2013		Plano / Wagner Way			TX				—				2,753				4,353				131								2,753				4,484				7,237				682
08/10/2006		Rowlett			TX				2,092				1,002				2,601				345								1,003				2,945				3,948				806
08/26/2004		San Antonio / Culebra Rd			TX				2,279				1,269				1,816				714								1,270				2,529				3,799				936
12/14/2007		San Antonio / DeZavala Rd			TX				6,194				2,471				3,556				(172	)			(e	)			2,471				3,384				5,855				789
10/23/2015		San Antonio / San Pedro Ave			TX				—				1,140				7,560				7								1,140				7,567				8,707				—
08/26/2004		San Antonio / Westchase Dr			TX				2,405				253				1,496				238								253				1,734				1,987				572
10/01/2015		Seabrook			TX				—				1,910				8,564				20								1,910				8,584				10,494				55
04/13/2006		South Houston			TX				2,955				478				4,069				824								478				4,893				5,371				1,449
07/02/2012		Spring / I-45 North			TX				3,208				506				5,096				226								506				5,322				5,828				511
08/02/2011		Spring / Treaschwig Rd			TX				1,897				978				1,347				244								979				1,590				2,569				210
02/24/2015		The Woodlands			TX				7,744				1,511				11,861				202								1,511				12,063				13,574				275
04/08/2015		Trenton			TX				—				—				2,375				—								—				2,375				2,375				20
10/01/2015		Weatherford			TX				—				630				5,932				12								630				5,944				6,574				38
10/20/2010		East Millcreek			UT				2,925				986				3,455				165								986				3,620				4,606				527
11/23/2010		Murray			UT				3,709				571				986				2,139								571				3,125				3,696				443
04/01/2011		Orem			UT				1,981				841				2,335				190								841				2,525				3,366				348
06/01/2004		Salt Lake City			UT				3,383				642				2,607				393								642				3,000				3,642				991
07/01/2005		Sandy / South 700 East 1			UT				5,229				1,349				4,372				552								1,349				4,924				6,273				1,467
09/28/2012		Sandy / South 700 East 2			UT				8,867				2,063				5,202				1,498								2,063				6,700				8,763				505
11/23/2010		West Jordan			UT				2,034				735				2,146				422								735				2,568				3,303				406
07/01/2005		West Valley City			UT				2,665				461				1,722				193								461				1,915				2,376				602
07/02/2012		Alexandria / N Henry St			VA				14,752				5,029				18,943				54								5,029				18,997				24,026				1,698
06/06/2007		Alexandria / S Dove St			VA				—				1,620				13,103				604								1,620				13,707				15,327				3,393
10/20/2010		Arlington			VA				—				—				4,802				889								—				5,691				5,691				2,198
11/01/2013		Burke			VA				—				11,534				7,347				55								11,534				7,402				18,936				1,303
10/01/2015		Chantilly			VA				6,230				1,100				10,606				64								1,100				10,670				11,770				68
01/07/2014		Chesapeake / Bruce Rd			VA				—				1,074				9,464				116								1,074				9,580				10,654				491
01/07/2014		Chesapeake / Military Hwy			VA				2,507				332				4,106				115								332				4,221				4,553				221
01/07/2014		Chesapeake / Poplar Hill Rd			VA				5,964				540				9,977				114								541				10,090				10,631				513
01/07/2014		Chesapeake / Woodlake Dr			VA				8,714				4,014				14,872				94								4,014				14,966				18,980				759

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Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

Date acquired or development completed		Store Name		State				Debt				Land initial cost				Building and improvements initial cost				Adjustments and costs subsequent to acquisition				Notes		Gross carrying amount at December 31, 2015												Accumulated depreciation
								Land				Building and improvements				Total
05/26/2011		Dumfries			VA				—				932				9,349				178						932				9,527				10,459				1,201
11/30/2012		Falls Church / Hollywood Rd			VA				8,780				5,703				13,307				302						5,703				13,609				19,312				1,134
07/01/2005		Falls Church / Seminary Rd			VA				9,283				1,259				6,975				416						1,259				7,391				8,650				2,177
11/30/2012		Fredericksburg / Jefferson Davis Hwy			VA				2,926				1,438				2,459				173						1,438				2,632				4,070				240
07/02/2012		Fredericksburg / Plank Rd 1			VA				4,191				2,128				5,398				117						2,128				5,515				7,643				501
10/01/2015		Fredericksburg / Plank Rd 2			VA				—				3,170				6,717				38						3,170				6,755				9,925				43
12/18/2014		Glen Allen			VA				5,037				609				8,220				48						609				8,268				8,877				220
10/01/2015		Hampton / Big Bethel Rd			VA				4,043				550				6,697				45						550				6,742				7,292				43
10/01/2015		Hampton / LaSalle Ave			VA				—				610				8,883				101						610				8,984				9,594				58
01/07/2014		Hampton / Pembroke Ave			VA				—				7,849				7,040				124						7,849				7,164				15,013				366
10/01/2015		Manassas			VA				—				750				6,242				38						750				6,280				7,030				40
01/07/2014		Newport News / Denbigh Blvd			VA				5,614				4,619				5,870				126						4,619				5,996				10,615				312
01/07/2014		Newport News / J Clyde Morris Blvd			VA				5,347				4,838				6,124				138						4,838				6,262				11,100				327
01/07/2014		Newport News / Tyler Ave			VA				4,503				2,740				4,955				124						2,740				5,079				7,819				271
01/07/2014		Norfolk / Granby St			VA				4,835				1,785				8,543				101						1,785				8,644				10,429				443
01/07/2014		Norfolk / Naval Base Rd			VA				4,314				4,078				5,975				137						4,078				6,112				10,190				322
03/17/2015		Portsmouth			VA				2,687				118				4,797				234						118				5,031				5,149				108
01/07/2014		Richmond / Hull St			VA				6,514				2,016				9,425				111						2,016				9,536				11,552				488
01/07/2014		Richmond / Laburnum Ave			VA				8,385				5,945				7,613				150						5,945				7,763				13,708				406
01/07/2014		Richmond / Midlothian Turnpike			VA				4,925				2,735				5,699				121						2,735				5,820				8,555				304
01/07/2014		Richmond / Old Staples Mill Rd			VA				6,861				5,905				6,869				121						5,905				6,990				12,895				365
08/26/2004		Richmond / W Broad St			VA				4,445				2,305				5,467				372						2,305				5,839				8,144				1,759
10/01/2015		Sandston			VA				6,470				570				10,525				65						570				10,590				11,160				68
09/20/2012		Stafford / Jefferson Davis Hwy			VA				4,309				1,172				5,562				138						1,172				5,700				6,872				511
01/23/2009		Stafford / SUSA Dr			VA				4,305				2,076				5,175				146						2,076				5,321				7,397				975
01/07/2014		Virginia Beach / General Booth Blvd			VA				7,265				1,142				11,721				107						1,142				11,828				12,970				600
01/07/2014		Virginia Beach / Kempsville Rd			VA				7,513				3,934				11,413				85						3,934				11,498				15,432				582
01/07/2014		Virginia Beach / Village Dr			VA				9,548				331				13,175				113						331				13,288				13,619				681
02/15/2006		Lakewood / 80th St			WA				4,350				1,389				4,780				320						1,390				5,099				6,489				1,393
02/15/2006		Lakewood / Pacific Hwy			WA				4,352				1,917				5,256				227						1,918				5,482				7,400				1,467
04/30/2014		Puyallup			WA				—				437				3,808				72						437				3,880				4,317				172
07/01/2005		Seattle			WA				7,159				2,727				7,241				360						2,727				7,601				10,328				2,152
02/15/2006		Tacoma			WA				3,353				1,031				3,103				155						1,031				3,258				4,289				901
07/02/2012		Vancouver			WA				3,025				709				4,280				154						709				4,434				5,143				403
Various		Other corporate assets							—				—				2,202				78,352						—				80,554				80,554				17,442
Various		Construction in progress							—				—				—				24,909						—				24,909				24,909				—
Various		Intangible tenant relationships and lease rights							—				—				83,610				21,159						—				104,769				104,769				80,503
								$	2,774,378			$	1,402,731			$	4,654,170			$	360,495					$	1,401,322			$	5,016,074			$	6,417,396			$	728,087

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Extra Space Storage Inc.

Schedule III

Real Estate and Accumulated Depreciation (Continued)

(Dollars in thousands)

(a)	Adjustment relates to partial disposition of land

(b)	Adjustment relates to property casualty loss

(c)	Adjustment relates to asset transfers between land, building and/or equipment

(d)	Adjustment relates to impairment charge

(e)	Adjustment relates to a purchase price adjustment

(f)	Adjustment relates to the acquisition of a joint venture partner’s interest

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Activity in real estate facilities during the years ended December 31, 2015, 2014 and 2013 is as follows:

		2015				2014				2013
Operating facilities
Balance at beginning of year		$	4,722,162			$	4,126,648			$	3,379,512
Acquisitions			1,609,608				557,158				711,710
Improvements			46,696				32,861				37,949
Transfers from construction in progress			19,971				12,308				3,643
Dispositions and other			(5,950	)			(6,813	)			(6,166	)
Balance at end of year		$	6,392,487			$	4,722,162			$	4,126,648
Accumulated depreciation:
Balance at beginning of year		$	604,336			$	496,754			$	391,928
Depreciation expense			123,751				109,531				104,963
Dispositions and other			—				(1,949	)			(137	)
Balance at end of year		$	728,087			$	604,336			$	496,754
Real estate under development/redevelopment:
Balance at beginning of year		$	17,870			$	6,650			$	4,138
Current development			27,010				23,528				6,466
Transfers to operating facilities			(19,971	)			(12,308	)			(3,954	)
Dispositions and other			—				—				—
Balance at end of year		$	24,909			$	17,870			$	6,650
Net real estate assets		$	5,689,309			$	4,135,696			$	3,636,544

The aggregate cost of real estate for U.S. federal income tax purposes is $5,758,588.

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