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Extra Space Storage CEO Discusses Q3 2010 Results - Earnings Call Transcript

Extra Space Storage assumes no obligation to update these forward-looking statements in the future because of changing market conditions or other circumstances. I would now like to turn the call over to Spencer Kirk, Chairman and Chief Executive Officer.

Spencer Kirk

Welcome, thank you for joining us today. With me are Kent Christensen, our Chief Financial Officer and Karl Haas, our Chief Operating Officer.

We are pleased to announce another strong quarter. We exceeded the top end of our quarterly FFO guidance by $0.01. We experienced strong internal growth at 3.9% same store revenue gain, at 3.1% same store expense decline resulting in a 7.8% same store NOI growth. We had a productive quarter with respect to our external growth strategy. The early signs of improvement on the acquisitions front that we spoke out on our second quarter call has turned out to be.

We purchased three property sourced from our third party management platform in the quarter and we have purchased three additional properties since the end of the quarter. Our marketing efforts from the third party management program have provided meaningful acceleration.

We added another 21 properties to the platform during the third quarter and one more since the end of the quarter. We opened another state-of-the-art development in Florida and we anticipate completing an additional two to four sites by year end. We will complete the remainder of our development pipeline in 2011.

We continue to make improvements to our balance sheet. Since the apex of the credit crisis, our total debt is down 21%. This has increased our financial flexibility. With just two months remaining in 2010, I believe that it is important to assess what we have accomplished year-to-date.

We have driven internal growth and our pricing has stabilized. We’ve incrementally improved various programs to enhance our operational efficiencies and reduce our cost structure. We have created an infrastructure that has multiple levers to generate earnings growth and we are proud of what we have accomplished. However, we are not satisfied and we will continue to use every effort to optimize our results. I’d now like to turn the time over to Karl.

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