Life Storage : Financial Supplement Q1 2023

Financial Supplement

Q1 - 2023

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
Other Data	10
Consolidated Balance Sheet - Trailing Five Quarters	12
Consolidated Statements of Operations - Trailing Five Quarters	13
Same Store Data - Trailing Five Quarters	14
Funds From Operations - Trailing Five Quarters	15
Debt Maturity Schedule, Debt Covenants & Related Data	16
Same Store Performance by Market and Other Data	17
Certificate of Occupancy & Lease-up Performance	18
Unconsolidated Joint Venture Detail	19
Capital Structure	20
Life Storage Property Locations	21

Analyst Coverage

BofA Global Research	Jeffrey Spector
BMO Capital Markets	Juan Sanabria
Citi	Nicholas Joseph / Smedes Rose
Evercore ISI	Steve Sakwa / Samir Khanal
Green Street Advisors	Spenser Allaway
J.P. Morgan	Michael Mueller
Jefferies	Jonathan Petersen
KeyBanc Capital Markets	Todd Thomas
Raymond James & Assoc.	Jonathon Hughes
Stifel Nicolaus	Steve Manaker
Truist Securities	Ki Bin Kim
UBS	Michael Goldsmith
Wolfe Research	Andrew Rosivach

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FOR IMMEDIATE RELEASE

May 2, 2023

Life Storage, Inc. Reports First Quarter 2023 Results

Buffalo, NY, May 2, 2023 - Life Storage, Inc. (NYSE:LSI), a leading national owner and operator of self-storage properties, reported operating results for the quarter ended March 31, 2023.

Highlights for the First Quarter Included:

• Generated net income attributable to common shareholders of $81.6 million, or $0.96 per fully diluted common share.
• Achieved adjusted funds from operations ("FFO")(1) per fully diluted common share of $1.63, a 13.2% increase over the same period in 2022.
• Increased same store revenue by 10.5% and same store net operating income ("NOI")(2) by 12.8%, year-over-year.
• With a joint venture partner, acquired one store for a total cost of $22.4 million, of which the Company invested $4.1 million
• Added 16 stores (12 net) to the Company's third-party management platform.

Joe Saffire, the Company's Chief Executive Officer, stated, "The Life Storage team continues to fire on all cylinders with this quarter marking the 10th straight quarter in which we achieved double-digit adjusted FFO growth. I couldn't be prouder of what the team has accomplished."

FINANCIAL RESULTS:

In the first quarter of 2023, the Company generated net income attributable to common shareholders of $81.6 million, or $0.96 per fully diluted common share, compared to net income attributable to common shareholders of $73.6 million, or $0.88 per fully diluted common share, in the first quarter of 2022.

Funds from operations for the quarter were $1.54 per fully diluted common share compared to $1.44 for the same period last year. Adjusted FFO per fully diluted common share for the quarter was $1.63 after adjusting for a net total of $7.4 million in merger related costs, gain on sale of non-real estate assets, non-controlling interest, and acquisition fees, compared to $1.44 for the same period last year.

OPERATIONS:

Revenues for the 664 stabilized stores wholly owned by the Company since December 31, 2021 increased 10.5% in the first quarter of 2023 compared to the same quarter of 2022. The increase largely resulted from the impact of a 13.6% increase in realized rental rates.

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Same store operating expenses increased 5.2% for the first quarter of 2023 compared to the prior year period, primarily the result of higher real estate taxes, office and other operating expenses, and payroll and benefits. Same store NOI increased 12.8% in the first quarter of 2023 as compared to the first quarter of 2022.

General and administrative expenses for the quarter ended March 31, 2023 were impacted by $8.3 million of merger related costs.

During the first quarter of 2023, the Company achieved 9% or greater same store revenue growth in 25 of its 38 major markets. Overall, the markets with the strongest positive revenue impact were Los Angeles, CA; Miami, FL; Dallas, TX; Orlando, FL; and Tampa, FL.

PORTFOLIO TRANSACTIONS:

Joint Venture Portfolio

During the quarter, the Company with a joint venture partner acquired one store in New Jersey for a total purchase price of $22.4 million, of which the Company invested $4.1 million.

Subsequent to March 31, 2023, the Company and a joint venture partner acquired four self- storage facilities in New York for a total purchase price of $150.0 million, of which the Company invested $15.1 million.

THIRD-PARTY MANAGEMENT:

During the quarter, the Company added 16 stores (12 net) to its third-party management platform. As of quarter end, the Company managed 452 facilities in total, including those in which it owns a noncontrolling interest.

FINANCIAL POSITION:

At March 31, 2023, the Company had approximately $32.8 million of cash on hand, and approximately $631 million available on its line of credit.

Below are key financial ratios as of March 31, 2023:
• Debt to Enterprise Value (at $131.09/share)	23.1%
• Debt to Book Cost of Storage Facilities	39.6%
•	Debt to Recurring Annualized EBITDA	4.9x
•	Debt Service Coverage	5.2x

COMMON STOCK DIVIDEND:

Subsequent to quarter end, the Company's Board of Directors approved a quarterly dividend of $1.20 per share, or $4.80 annualized. The dividend was paid on April 26, 2023 to shareholders of record on April 14, 2023.

YEAR 2023 EARNINGS GUIDANCE:

The Company maintains its previously announced earnings guidance for fiscal 2023. The following assumptions covering operations have been utilized in formulating guidance for 2023:

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