Extra Space Storage Inc. (NYSE:EXR) Q4 2015 Earnings Conference Call - Final Transcript
Feb 24, 2016 • 01:00 pm ET
Good day, ladies and gentlemen and welcome to the Extra Space Storage Inc. Fourth Quarter 2015 Earnings Conference Call. [Operator Instructions]
I would now like to introduce your host for today's program Mr. Jeff Norman, Director of Investor Relations. Please go ahead.
Thank you, Jonathan. Welcome to Extra Space Storage's Fourth Quarter and Year End 2015 Conference Call. In addition to our press release, we have furnished unaudited supplemental financial information on our website. Please remember that management's prepared remarks and answers to your questions may contain forward-looking statements as defined in the Private Securities Litigation Reform Act. Actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with the Company's business. These forward-looking statements are qualified by the cautionary statements contained in the Company's latest filings with the SEC, which we encourage our listeners to review.
Forward-looking statements represent management's estimates as of today, Wednesday, February 24, 2016. The Company assumes no obligation to revise or update any forward-looking statements because of changing market conditions or other circumstances after the date of this conference call.
I would now like to turn the call over to Spencer Kirk, Chief Executive Officer.
Hello, everyone. 2015 was a record breaking year. We executed at a high level and produced outstanding results despite difficult comps. For the fourth quarter, same-store revenue growth was 9.3%, NOI growth was 11.9%, year-end occupancy was 92.9% and FFO as adjusted grew 28%, this marks 21 consecutive quarters of double-digit increases.
We delivered these exceptional same-store operating results while expanding our physical real estate and digital real estate footprint by 24%. In 2015, we added 259 stores to our platform and our year end EXR branded store count was 1,347. For the year, we closed on 1.8 billion in acquisitions, seller expectations are high and we expect pricing to remain competitive in 2016.
However, we're finding accretive acquisitions including off market transactions and we're off to a solid start in 2016.
I'd now like to turn this time over to Scott.
Thanks, Spence. Last night, we reported FFO as adjusted of $0.87 per share meeting the high end of our guidance. Including costs associated with acquisitions and non-cash interest, FFO was $0.38 per share for the quarter. This was below our Q4 guidance due to additional transaction related costs.
We paid $16 million in SmartStop transactional cost, $8 million for SmartStop's investment bankers and $8 million severance expenses. These costs were expenses on our books rather than on SmartStop's in essence we paid SmartStop's transactional costs with SmartStop's working capital. These costs were included in our original purchase price estimates and had no effect on the transaction on a net-net basis.
For the year, FFO as adjusted was $3.13 per share meeting the high end of our guidance. Including acquisition and non-cash interest cost FFO was $2.58 per share. Our same-store revenue growth was driven by higher rates to new and existing customers, increased occupancy and lower discounts.