Life Storage : Financial Supplement Q2 2021

Financial Supplement

Q2 • 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
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, Inc.	Jonathan Hughes
Stifel Nicolaus	Stephen Manaker
Truist Securities	Ki Bin Kim
Wells Fargo Securities	Todd Stender

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FOR IMMEDIATE RELEASE

August 3, 2021

Life Storage, Inc. Reports Second Quarter 2021 Results

Buffalo, NY, August 3, 2021 - Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter ended June 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 Second Quarter Included:

• Generated net income attributable to common shareholders of $57.5 million, or $0.74 per fully diluted common share.
• Achieved adjusted funds from operations ("FFO")(1) per fully diluted common share of $1.20, a 27.7% increase over the same period in 2020.
• Increased same store revenue by 14.7% and same store net operating income ("NOI")(2) by 20.2%, year-over-year.
• Acquired 17 stores for $267.5 million, including nine stores from the Company's third-party management platform.
• Added 26 stores (gross) to the Company's third-party management platform.

Joe Saffire, the Company's Chief Executive Officer, stated, "I cannot be more pleased with how our team has performed during the past year. We continue to grow occupancy and drive revenue growth while controlling costs. We also continue to find accretive acquisitions, having invested a record $534 million in wholly owned stores during the first half of the year and our acquisition pipeline remains robust. We are excited about our new joint venture, which is adding 17 class A lease-up stores to our platform and providing further opportunity for growth. Our third-party management business continues to surpass our expectations as independent owners are attracted to our performance and innovative technology. Warehouse Anywhere, our unique and innovative tech-enabled business, continues to successfully execute on its growing pipeline of new clients in search of inventory management and last-mile logistics support."

FINANCIAL RESULTS:

In the second quarter of 2021, the Company generated net income attributable to common shareholders of $57.5 million or $0.74 per fully diluted common share, compared to net income attributable to common shareholders of $36.5 million, or $0.52 per fully diluted common share, in the second quarter of 2020.

Funds from operations for the quarter were $1.22 per fully diluted common share compared to $0.94 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.20, after adjusting for a $1.3 million acquisition fee, compared to $0.94 for the quarter ended June 30, 2020.

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OPERATIONS:

Revenues for the 531 stabilized stores wholly owned by the Company since December 31, 2019 increased 14.7% in the second quarter of 2021 compared to the same quarter of 2020. The increase largely resulted from the net impact of a 420 basis point increase in average occupancy and the net impact of an 8.3% increase in realized rental rates.

Same store operating expenses increased 3.9% for the second 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 20.2% in the second quarter of 2021 as compared to the same quarter last year.

During the second quarter of 2021, the Company achieved same store revenue growth in each of its 31 major markets. Overall, the markets with the strongest positive revenue impact were: New York-Newark-Jersey City; Houston, TX; Chicago, IL; New England-Other and Buffalo-Upstate.

PORTFOLIO TRANSACTIONS:

Wholly Owned Portfolio

During the quarter, the Company acquired 17 stores in New Jersey (5), Texas (4), Florida (3), North Carolina (3) and New Hampshire (2) for a total purchase price of $267.5 million.

At June 30, 2021, the Company was under contract to acquire four self-storage facilities in New Hampshire (2), Arizona (1) and Florida (1) for an aggregate purchase price of $54.1 million. The Company acquired two of these facilities subsequent to quarter end for $22.1 million. Also subsequent to quarter end, the Company entered into a contract to acquire four self-storage facilities in Texas for an aggregate purchase price of $47.5 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 35 stores for $555.8 million since January 1, 2021.

Joint Venture Portfolio

During the quarter, the Company acquired a 20% minority interest, for which the Company contributed $28.7 million, in 17 stores in Wisconsin (5), Florida (4), Georgia (2), Illinois (2), Connecticut (1), New Jersey (1), New York (1) and North Carolina (1).

THIRD-PARTY MANAGEMENT:

The Company continues to aggressively and profitably grow its third-party management platform. During the quarter, the Company added 26 stores (gross). As of quarter end, the Company managed 340 facilities in total, including those in which it owns a minority interest.

FINANCIAL POSITION:

At June 30, 2021, the Company had approximately $29.9 million of cash on hand, and approximately $359.9 million available on its line of credit.

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