Extra Space Storage & Life Storage Announce Closing of Merger

Creates the largest storage operator and one of the largest REITs in the MSCI U.S. REIT Index

Extra Space Storage Inc. (NYSE: EXR) ("Extra Space") and Life Storage, Inc. ("Life Storage") announced today that the companies have completed their previously announced merger, following approval by the shareholders of both companies. The combined company is now the largest storage operator in the country (based on the number of self-storage locations) with over 3,500 locations, approximately 270 million square feet of rentable storage space, and over two million customers.  The combined entity will be among the largest REITs in the MSCI U.S. REIT Index, with an enterprise value of approximately $46 billion.

"We are prepared for the smooth integration of Life Storage, and we believe this combination gives the combined company an even more formidable portfolio, team, and platform, with over 3,500 stores across 43 states," said Extra Space Storage CEO Joe Margolis.  "We are confident we will achieve at least $100 million in underwritten annual run-rate synergies, and that we will unlock additional synergies resulting from our increased scale."

Merger Highlights:

The combination of Extra Space and Life Storage is expected to deliver significant strategic, operational and financial benefits to shareholders, including:

Transformative scale: Combines two industry leaders with long track records of outperformance and creates the largest U.S. storage operator (based on the number of self-storage locations) and a top ten REIT by enterprise value in the MSCI U.S. REIT Index. Uniting Extra Space's and Life Storage's leading technology and data analytics platforms will also allow the combined company to continue to drive same-store net operating income growth while providing exceptional service to customers.

Enhanced diversification: Creates a highly diversified portfolio of quality storage assets in markets benefiting from compelling demand and population demographic trends.

Significant synergy opportunity: The transaction is expected to generate $100 million in annual run-rate operating synergies from G&A and property operating expense savings as well as improved property operating revenue and tenant insurance income. Extra Space has a demonstrated track record of integrating stores onto its platform and delivering outsized returns to shareholders.

Embedded growth drivers: The combined business's scaled and growing third-party management, joint venture and bridge loan platforms will create a robust pipeline for accelerated external growth.

Positive financial impact: The transaction is expected to be accretive to Core FFO per share within the first year of closing and be leverage neutral.

In connection with the completion of the merger, the Extra Space board has expanded from 10 to 13 directors with the addition of three new directors designated by Life Storage: Mark G. Barberio, Joseph V. Saffire, and Susan Harnett.

Citigroup Global Markets Inc. acted as lead financial advisor and Latham & Watkins LLP served as legal advisor to Extra Space. J.P. Morgan Securities LLC also served as a financial advisor to Extra Space. Wells Fargo Securities and BofA Securities acted as financial advisors and Hogan Lovells US LLP, Phillips Lytle LLP, and Quinn Emanuel Urquhart & Sullivan LLP served as legal advisors to Life Storage.

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