Spencer F. Kirk, CEO of publicly traded self-storage real estate investment trust (REIT) and third-party management firm Extra Space Storage Inc., will retire from his position on Dec. 31. Kirk will be replaced by Joseph D. Margolis, presently the company’s chief investment officer, according to a press release. Kirk and Margolis are scheduled to speak tomorrow at the Bank of America Merrill Lynch (BAML) 2016 Global Real Estate Conference in New York City.
Kirk has served as CEO since April 2009. He also served as company chair from 2009 to 2012, and has been president since 2007. "I am grateful to have worked with a dedicated team, and we should all be proud of what we are building together,” Kirk said in a released statement. “Having worked with Joe for nearly two decades, I am confident that we share a common vision for the continued growth of Extra Space. The strength and dedication of our deep executive bench ensures that Extra Space will remain on a successful path, and I look forward to supporting a seamless transition with Joe and the team."
Kirk will continue to serve on the Extra Space board of directors. He intends to devote more time to his non-profit foundation, Kirk Humanitarian, which works to provide micronutrient supplementation to at-risk women and children living in underdeveloped areas of the world. Since 2005, the organization has distributed more than 2 million doses of multi-vitamins and minerals, according to its website.
"The board would like to thank Spencer for his contribution to Extra Space,” said Ken Woolley, founder and executive chairman of Extra Space. “He has been a phenomenal leader, and he will continue to influence our strategic direction for years to come. We are pleased to have him continue to advise Extra Space as a member of the board."
Margolis will begin his new role on Jan. 1. He has served as chief investment officer for Extra Space since July 2015 and been involved with the company in various roles for 18 years. He served on the board of directors from February 2005 to July 2015 and was a member of its audit and compensation, nominating and governance committees. Prior to joining Extra Space, Margolis was partner and senior managing director of Penzance Properties in the Washington, D.C., metropolitan area. He was a co-founding partner of Arsenal Real Estate Funds and previously held senior positions at Prudential Real Estate Investors. Margolis is a graduate of Harvard College and Columbia University School of Law, according to the release.
"It is both an honor and great responsibility to be appointed chief executive officer of Extra Space Storage," Margolis said. "I have worked closely with Spencer, the board and the Extra Space team for more than 18 years, and I have a deep respect and admiration for the strategic focus, track record and unique culture that has been built. Spencer is an exemplary CEO, and I am confident that together we can make this a smooth transition. I look forward to leading a team that will continue the Extra Space legacy of consistently delivering a great product to our customers, providing an enriching workplace for our fellow team members, and striving to execute on our strategy to enhance shareholder value over the long term."
"We heartily welcome Joe as chief executive officer. He has been intimately involved with Extra Space Storage since 1998,” Woolley said. “We are confident that Joe brings the right balance of real estate expertise and leadership skills to take Extra Space through its next phase of growth. We have a deep and experienced management team, and a formidable platform to continue to execute our proven business plan and deliver outstanding shareholder results."
Kirk, Margolis and Scott Stubbs, chief financial officer at Extra Space, are scheduled to participate in a roundtable presentation at the BAML conference at 2:55 p.m. ET on Tuesday. The session will be accessible via webcast by Veracast. A recorded version will be available for viewing through Dec. 12.
Past BAML conferences have featured panel presentations along with one-on-one and small-group meetings with top executives from real estate companies. The 2016 event will be held Tuesday and Wednesday at the Westin Hotel Times Square.
Headquartered in Salt Lake City, Extra Space owns or operates 1,412 self-storage properties in 37 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 945,000 units and 106 million square feet of rentable space.