Financial Supplement Q3 2021

Financial Supplement

Q3 • 2021

Table of Contents
Analyst Coverage ............................................................................	1
Earnings Release Text ......................................................................	2
Balance Sheet Data .........................................................................	7
Consolidated Statements of Operations ..............................................	8
Computation of Funds from Operations (FFO) ......................................	9
Same Store Data (Quarter) ...............................................................	10
Same Store Data (Year) ...................................................................	11
Other Data .....................................................................................	11
Consolidated Balance Sheet - Trailing Five Quarters .............................	13
Consolidated Statements of Operations - Trailing Five Quarters .............	14
Same Store Data - Trailing Five Quarters ...........................................	15
Funds From Operations - Trailing Five Quarters ...................................	16
Debt Maturity Schedule, Debt Covenants & Related Data ......................	17
Same Store Performance by Market and Other Data ............................	18
Certificate of Occupancy & Lease-up Performance ................................	19
Unconsolidated Joint Venture Detail ...................................................	20
Capital Structure .............................................................................	21
Life Storage Property Locations .........................................................	22

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Analyst Coverage

Bank of America Securities	Jeffrey Spector
Berenberg Captial Markets LLC	Keegan Carl
BMO Capital Markets	Juan Sanabria
Citi	Michael Bilerman / Smedes Rose
Evercore ISI	Steve Sakwa / Samir Khanal
Green Street Advisors	Spenser Allaway
Jefferies	Jonathan Petersen
KeyBanc Capital Markets	Todd Thomas
Raymond James & Associates	Jonathan Hughes
Stifel Nicolaus	Steve Manaker
Truist Securities	Ki Bin Kim

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FOR IMMEDIATE RELEASE

November 2, 2021

Life Storage, Inc. Reports Third Quarter 2021 Results

Buffalo, NY, November 2, 2021 - Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter ended September 30, 2021. Certain share and per share information has been retrospectively adjusted to reflect the January 2021 three-for-two stock split made in the form of a 50% stock dividend.

Highlights for the Third Quarter Included:

• Generated net income attributable to common shareholders of $70.3 million, or $0.89 per fully diluted common share.
• Achieved adjusted funds from operations ("FFO")(1) per fully diluted common share of $1.37, a 35.6% increase over the same period in 2020.
• Increased same store revenue by 17.4% and same store net operating income ("NOI")(2) by 24.3%, year-over-year.
• Acquired 29 stores for $336.0 million, including 10 stores from the Company's third- party management platform.
• Added 30 stores (gross) to the Company's third-party management platform.

Joe Saffire, the Company's Chief Executive Officer, stated, "Operating fundamentals remain strong as we continue to enjoy record seasonal occupancy and robust pricing power. We continue to aggressively expand our footprint, having achieved a significant milestone during the quarter when we crossed the 1,000-store threshold. We have more than $1.7 billion of wholly owned acquisitions that have closed this year or are currently under contract. The hard work of our acquisitions and third-party management teams over the past several years executing on our relationship-based strategy to be well positioned when opportunities become available is clearly paying off. The ability of our Operations team to seamlessly onboard such high volumes of stores while also managing elevated occupancy is equally inspiring."

FINANCIAL RESULTS:

In the third quarter of 2021, the Company generated net income attributable to common shareholders of $70.3 million or $0.89 per fully diluted common share, compared to net income attributable to common shareholders of $37.1 million, or $0.52 per fully diluted common share, in the third quarter of 2020.

Funds from operations for the quarter were $1.37 per fully diluted common share compared to $0.99 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.37 compared to $1.01 for the quarter ended September 30, 2020, after adjusting for $1.5 million of uninsured damages and customer reinsurance claims incurred in the third quarter of 2020.

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OPERATIONS:

Revenues for the 531 stabilized stores wholly owned by the Company since December 31, 2019 increased 17.4% in the third quarter of 2021 compared to the same quarter of 2020. The increase largely resulted from the net impact of a 220 basis point increase in average occupancy and the net impact of a 14.3% increase in realized rental rates.

Same store operating expenses increased 3.5% for the third quarter of 2021 compared to the prior year period, primarily due to increased real estate taxes and repair and maintenance costs. The increases were partially offset by decreases in marketing expenses. Same store NOI increased 24.3% in the third quarter of 2021 as compared to the same quarter last year.

During the third quarter of 2021, the Company achieved double digit same store revenue growth in each of its 31 major markets. Overall, the markets with the strongest positive revenue impact were: Las Vegas, NV; Buffalo-Upstate, NY; Austin, TX and various Florida markets.

PORTFOLIO TRANSACTIONS:

Wholly Owned Portfolio

During the quarter, the Company acquired 29 stores in Alabama (7), Georgia (7), Florida (3), New Hampshire (2), Oklahoma (2), South Carolina (2), Texas (2), Arizona (1), Colorado (1), Kentucky (1) and Ohio (1) for a total purchase price of $336.0 million.

At September 30, 2021, the Company was under contract to acquire 33 self-storage facilities in Florida (14), Georgia (8), Texas (4), California (3), Illinois (3) and Virginia (1) for an aggregate purchase price of $548.9 million. Subsequent to quarter end, the Company entered into contracts to acquire 20 self-storage facilities in Connecticut (6), Florida (3), North Carolina (3), Colorado (2), South Carolina (2), Georgia (1), Illinois (1), Maine (1) and Tennessee (1) for an aggregate purchase price of $322.4 million. The Company acquired 13 of these facilities subsequent to quarter end for $234.5 million. The purchases of the remaining facilities are subject to customary conditions to closing, and there is no assurance that any of these facilities will be acquired.

As of the date of this press release, the Company has acquired 75 stores for $1.1 billion since January 1, 2021.

Joint Venture Portfolio

During the quarter, the Company contributed an additional $27.3 million to an existing joint venture with a self-storage facility in Brooklyn, NY.

THIRD-PARTY MANAGEMENT:

The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 30 stores (gross). As of quarter end, the Company managed 357 facilities in total, including those in which it owns a minority interest.

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