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Self-Storage REIT Extra Space Recognized for Sustainability Efforts

Extra Space Storage Inc., a publicly traded self-storage real estate investment trust (REIT) and third-party management firm, has received recognition for its sustainability practices from multiple organizations. The notoriety includes being ranked the No. 1 sustainable U.S. self-storage company by GRESB B.V. (Global Real Estate Sustainability Benchmark), a data-services firm that issues an annual, international assessment of sustainability performance of property companies and real estate funds, according to a press release.

This is the third consecutive year Extra Space has been ranked atop the U.S. self-storage sector by GRESB. Around 1,200 funds and companies participate in the annual benchmark rating. Each company receives an overall score, a comparison against its peer group and a star rating. The REIT improved its overall score by 5 percent from 2019 and received an “A” grade for public disclosure, the release stated.

“Good environmental, social and governance policies have always been a part of Extra Space’s company culture,” said Gwyn McNeal, chief legal officer and executive-in-charge of the REIT’s sustainability committee. “We now see investors showing additional interest in these policies, and we’re glad to share our responsible business practices. We’re also pleased to see that GRESB and other sustainability-rating agencies have recognized our efforts.”

In addition, Just Capital, a group that ranks publicly traded companies based on environmental practices and social issues, placed Extra Space at 142 in its 2021 top 200, and No. 5 among real estate companies. Sustainalytics, a company affiliate of financial services firm Morningstar Inc., placed Extra Space at 99 out of 941 real estate firms in its ESG (environmental, social and governance) Risk Rating rankings. The REIT also improved its rating “substantially” in the SAM Corporate Sustainability Assessment issued by financial information and analytics firm S&P Global Inc., according to the release.

“Each survey has different priorities,” McNeal said. “The fact that we are consistently recognized as a leader across many reports is a good indicator of how sustainability is built into the DNA of our company.”

Extra Space sustainability initiatives include environmental efforts in energy efficiency, recycling, solar production and water reduction. The REIT also has initiatives for improving company culture, diversity and inclusion. “We are particularly proud of our solar program, which we started over a decade ago. In 2019, we grew the program to include over 400 solar-powered locations across the country,” McNeal said. “We have grown our solar production again in 2020 with new installations completed across several states. Solar has been a perfect example for us of how sustainability efforts can create positive returns for every stakeholder.”

Headquartered in Salt Lake City, Extra Space owns or operates 1,906 self-storage properties in 40 states; Washington, D.C.; and Puerto Rico. The company’s properties comprise approximately 1.4 million units and 147.5 million square feet of rentable space.

Sources:
Extra Space, Extra Space Storage Leads U.S. Self-storage Industry In Sustainability
GRESB, GRESB 2020 Results: Infrastructure Sector Maturing Its Approach to ESG Reporting and Benchmarking
Just Capital, 2021 Overall Rankings
Sustainalytics, Company ESG Risk Ratings

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