Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | EXR | |
Entity Registrant Name | Extra Space Storage Inc. | |
Entity Central Index Key | 1,289,490 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 126,000,114 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets: | ||
Real estate assets, net | $ 6,782,788 | $ 6,770,447 |
Investments in unconsolidated real estate ventures | 79,294 | 79,570 |
Cash and cash equivalents | 31,648 | 43,858 |
Restricted cash | 16,764 | 13,884 |
Receivables from related parties and affiliated real estate joint ventures | 4,676 | 16,611 |
Other assets, net | 122,293 | 167,076 |
Total assets | 7,037,463 | 7,091,446 |
Liabilities, Noncontrolling Interests and Equity: | ||
Notes payable, net | 3,429,153 | 3,213,588 |
Exchangeable senior notes, net | 614,173 | 610,314 |
Notes payable to trusts, net | 117,383 | 117,321 |
Revolving lines of credit | 128,000 | 365,000 |
Accounts payable and accrued expenses | 92,678 | 101,388 |
Other liabilities | 77,393 | 87,669 |
Total liabilities | 4,458,780 | 4,495,280 |
Commitments and contingencies | ||
Extra Space Storage Inc. stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 500,000,000 shares authorized, 125,977,670 and 125,881,460 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively | 1,260 | 1,259 |
Additional paid-in capital | 2,569,965 | 2,566,120 |
Accumulated other comprehensive income | 17,003 | 16,770 |
Accumulated deficit | (366,437) | (339,257) |
Total Extra Space Storage Inc. stockholders' equity | 2,221,791 | 2,244,892 |
Noncontrolling interest represented by Preferred Operating Partnership units, net of $120,230 notes receivable | 154,490 | 147,920 |
Noncontrolling interests in Operating Partnership | 200,596 | 203,354 |
Other noncontrolling interests | 1,806 | 0 |
Total noncontrolling interests and equity | 2,578,683 | 2,596,166 |
Total liabilities, noncontrolling interests and equity | $ 7,037,463 | $ 7,091,446 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 125,977,670 | 125,881,460 |
Common stock, shares outstanding | 125,977,670 | 125,881,460 |
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units | $ 120,230 | $ 120,230 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Property rental | $ 240,796 | $ 211,791 | $ 472,289 | $ 411,279 |
Tenant reinsurance | 24,313 | 21,654 | 47,168 | 42,209 |
Management fees and other income | 10,894 | 10,828 | 19,554 | 20,188 |
Total revenues | 276,003 | 244,273 | 539,011 | 473,676 |
Expenses: | ||||
Property operations | 67,295 | 62,430 | 133,940 | 123,542 |
Tenant reinsurance | 3,804 | 3,941 | 7,724 | 8,252 |
Acquisition related costs and other | 0 | 3,138 | 0 | 7,191 |
General and administrative | 21,865 | 20,512 | 40,673 | 43,914 |
Depreciation and amortization | 46,632 | 43,950 | 96,064 | 86,847 |
Total expenses | 139,596 | 133,971 | 278,401 | 269,746 |
Income from operations | 136,407 | 110,302 | 260,610 | 203,930 |
Gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate | (6,019) | 11,358 | (6,019) | 9,814 |
Interest expense | (37,456) | (32,802) | (73,426) | (64,161) |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (1,290) | (1,240) | (2,559) | (2,473) |
Interest income | 826 | 1,625 | 1,928 | 3,339 |
Interest income on note receivable from Preferred Operating Partnership unit holder | 659 | 1,212 | 1,872 | 2,425 |
Income before equity in earnings of unconsolidated real estate ventures and income tax expense | 93,127 | 90,455 | 182,406 | 152,874 |
Equity in earnings of unconsolidated real estate ventures | 3,838 | 3,358 | 7,417 | 6,188 |
Equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest | 0 | 0 | 0 | 26,923 |
Income tax expense | (2,867) | (3,773) | (5,991) | (6,538) |
Net income | 94,098 | 90,040 | 183,832 | 179,447 |
Net income allocated to Preferred Operating Partnership noncontrolling interests | (3,430) | (3,434) | (7,381) | (6,614) |
Net income allocated to Operating Partnership and other noncontrolling interests | (3,662) | (3,562) | (7,163) | (7,197) |
Net income attributable to common stockholders | $ 87,006 | $ 83,044 | $ 169,288 | $ 165,636 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.69 | $ 0.66 | $ 1.34 | $ 1.33 |
Diluted (in dollars per share) | $ 0.69 | $ 0.66 | $ 1.33 | $ 1.32 |
Weighted average number of shares | ||||
Basic (in shares) | 125,673,156 | 124,914,467 | 125,639,480 | 124,678,293 |
Diluted (in shares) | 132,783,402 | 132,025,915 | 132,759,354 | 132,152,519 |
Cash dividends paid per common share (in dollars per share) | $ 0.78 | $ 0.78 | $ 1.56 | $ 1.37 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 94,098 | $ 90,040 | $ 183,832 | $ 179,447 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate swaps | (6,101) | (18,797) | 233 | (49,945) |
Total comprehensive income | 87,997 | 71,243 | 184,065 | 129,502 |
Less: comprehensive income attributable to noncontrolling interests | 6,804 | 6,105 | 14,544 | 11,359 |
Comprehensive income attributable to common stockholders | $ 81,193 | $ 65,138 | $ 169,521 | $ 118,143 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Noncontrolling Interests and Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands | Total | Series A Preferred Operating Partnership [Member] | Series B Preferred Operating Partnership [Member] | Series C Preferred Operating Partnership [Member] | Series D Preferred Operating Partnership [Member] | Common Operating Partnership [Member] | Other [Member] | Par Value [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Preferred Partner [Member]Series D Preferred Stock [Member]Series D Preferred Operating Partnership [Member] |
Balance, beginning of period at Dec. 31, 2016 | $ 2,596,166 | $ 14,385 | $ 41,902 | $ 10,730 | $ 80,903 | $ 203,354 | $ 0 | $ 1,259 | $ 2,566,120 | $ 16,770 | $ (339,257) | |
Balance, beginning of period (in shares) at Dec. 31, 2016 | 125,881,460 | 125,881,460 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Issuance of common stock upon the exercise of options | $ 163 | $ 0 | 163 | |||||||||
Issuance of common stock upon the exercise of options (in shares) | 8,300 | |||||||||||
Restricted stock grants issued | 0 | $ 1 | (1) | |||||||||
Restricted stock grants issued (in shares) | 90,708 | |||||||||||
Restricted stock grants canceled (in shares) | (2,798) | |||||||||||
Compensation expense related to stock-based awards | 4,955 | 0 | 0 | 0 | 0 | 4,955 | 0 | 0 | ||||
Redemption of Operating Partnership units for cash | (2,510) | (1,238) | (1,272) | |||||||||
Redemption of Operating Partnership units for cash (in shares) | 0 | |||||||||||
Issuance of Preferred D Units in the Operating Partnership in conjunction with acquisitions | $ 6,810 | |||||||||||
Noncontrolling Interest in consolidated joint venture | 1,827 | 1,827 | ||||||||||
Net income (loss) | 183,832 | 3,101 | 1,257 | 1,352 | 1,671 | 7,184 | (21) | 169,288 | ||||
Other comprehensive income | 233 | 0 | 0 | 233 | ||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (16,325) | (3,341) | (1,257) | (1,352) | (1,671) | (8,704) | ||||||
Dividends paid on common stock at $1.56 per share | (196,468) | (196,468) | ||||||||||
Balance, end of period at Jun. 30, 2017 | $ 2,578,683 | $ 14,145 | $ 41,902 | $ 10,730 | $ 87,713 | $ 200,596 | $ 1,806 | $ 1,260 | $ 2,569,965 | $ 17,003 | $ (366,437) | |
Balance, end of period (in shares) at Jun. 30, 2017 | 125,977,670 | 125,977,670 |
Condensed Consolidated Stateme7
Condensed Consolidated Statement of Noncontrolling Interests and Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid on common stock, per share (in dollars per share) | $ 0.78 | $ 0.78 | $ 1.56 | $ 1.37 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 183,832 | $ 179,447 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 96,064 | 86,847 |
Amortization of deferred financing costs | 6,083 | 5,617 |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | 2,559 | 2,473 |
Non-cash interest expense related to amortization of premium on notes payable | 0 | (696) |
Compensation expense related to stock-based awards | 4,955 | 4,093 |
Gain on purchase of joint venture partner's interest | 0 | (26,923) |
(Gain) loss on real estate transactions, earnout from prior acquisition and impairment of real estate | 6,019 | (9,814) |
Distributions from unconsolidated real estate ventures in excess of earnings | 2,365 | 1,936 |
Changes in operating assets and liabilities: | ||
Receivables from related parties and affiliated real estate joint ventures | 137 | 1,720 |
Other assets | 15,066 | (1,186) |
Accounts payable and accrued expenses | (18,090) | (402) |
Other liabilities | (9,941) | (3,442) |
Net Cash Provided by (Used in) Operating Activities | 289,049 | 239,670 |
Cash flows from investing activities: | ||
Acquisition of real estate assets | (72,651) | (435,298) |
Development and redevelopment of real estate assets | (12,274) | (14,400) |
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | 101 | 17,582 |
Change in restricted cash | (2,880) | 15,506 |
Investment in unconsolidated real estate ventures | (2,670) | (19,309) |
Return of investment in unconsolidated real estate ventures | 581 | 1,318 |
Purchase/issuance of notes receivable | 0 | (10,656) |
Principal payments received from notes receivable | 44,869 | 41,393 |
Purchase of equipment and fixtures | (4,110) | (2,128) |
Net Cash Provided by (Used in) Investing Activities | (49,034) | (405,992) |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock, net of offering costs | 0 | 73,369 |
Repurchase of exchangeable senior notes | 0 | (22,192) |
Proceeds from notes payable and revolving lines of credit | 652,446 | 492,880 |
Principal payments on notes payable and revolving lines of credit | (686,443) | (222,923) |
Deferred financing costs | (2,925) | (5,702) |
Net proceeds from exercise of stock options | 0 | 313 |
Proceeds from termination of interest rate cap | 0 | 1,650 |
Redemption of Operating Partnership units held by noncontrolling interests | (2,510) | 0 |
Dividends paid on common stock | (196,468) | (171,514) |
Distributions to noncontrolling interests | (16,325) | (14,300) |
Net cash provided by (used in) financing activities | (252,225) | 131,581 |
Net decrease in cash and cash equivalents | (12,210) | (34,741) |
Cash and cash equivalents, beginning of the period | 43,858 | 75,799 |
Cash and cash equivalents, end of the period | 31,648 | 41,058 |
Supplemental schedule of cash flow information | ||
Interest paid | 67,808 | 59,676 |
Income taxes paid | 7,544 | 8,516 |
Redemption of Operating Partnership units held by noncontrolling interests for common stock: | ||
Noncontrolling interests in Operating Partnership | 0 | (829) |
Common stock and paid-in capital | 0 | 829 |
Tax effect from vesting of restricted stock grants and option exercises | ||
Other assets | 0 | 1,267 |
Additional paid-in capital | 0 | (1,267) |
Accrued construction costs and capital expenditures | ||
Acquisition of real estate assets | 6,580 | 7,567 |
Development and redevelopment of real estate assets | 2,798 | 1,298 |
Other liabilities | (9,378) | (8,865) |
Distribution of real estate from investments in unconsolidated real estate ventures | ||
Real estate assets, net | 0 | 17,261 |
Investments in unconsolidated real estate ventures | 0 | (17,261) |
Disposition of real estate assets | ||
Real estate assets, net | 0 | (7,689) |
Acquisitions Of Real Estate [Member] | ||
Value of OP Units Issued | (6,810) | (56,237) |
Loan Assumed | (9,463) | (9,723) |
Acquisitions of real estate assets | ||
Real estate assets, net | 18,100 | 65,960 |
Other noncontrolling interests | (1,827) | 0 |
Redemption Of Operating Partnership Units [Member] | ||
Disposition of real estate assets | ||
Operating Partnership units redeemed | $ 0 | $ 7,689 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Extra Space Storage Inc. (the “Company”) is a fully-integrated, self-administered and self-managed real estate investment trust (“REIT”), formed as a Maryland corporation on April 30, 2004, to own, operate, manage, acquire, develop and redevelop professionally managed self-storage properties (“stores”) located throughout the United States. The Company continues the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. The Company’s interests in its stores is held through its operating partnership, Extra Space Storage LP (the “Operating Partnership”), which was formed on May 5, 2004. The Company’s primary assets are general partner and limited partner interests in the Operating Partnership. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. To the extent the Company continues to qualify as a REIT, it will not be subject to tax, with certain limited exceptions, on the taxable income that is distributed to its stockholders. The Company invests in stores by acquiring wholly-owned stores or by acquiring an equity interest in real estate entities. At June 30, 2017 , the Company had direct and indirect equity interests in 1,023 stores. In addition, the Company managed 447 stores for third parties, bringing the total number of stores which it owns and/or manages to 1,470 . These stores are located in 38 states, Washington, D.C. and Puerto Rico. The Company operates in three distinct segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. The rental operations activities include rental operations of stores in which we have an ownership interest. No single tenant accounts for more than 5.0% of rental income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the Company’s stores. The Company’s property management, acquisition and development activities include managing, acquiring and developing stores. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017 . The condensed consolidated balance sheet as of December 31, 2016 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 , as filed with the Securities and Exchange Commission. Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers, ” which amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. ASU 2014-09 outlines a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new standard will become effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company has determined that its property rental revenue and tenant reinsurance revenue will not be subject to the guidance in ASU 2014-09, as they qualify as lease contracts and insurance contracts, which are excluded from its scope. The Company's management fee revenue will be included in the scope of the standard. However, based on the Company's initial assessment, it appears that revenue recognized under the standard will not differ materially from revenue recognized under existing guidance. The Company continues to assess the potential impacts of ASU 2014-09. The Company anticipates adopting the standard using the modified retrospective transition method as of January 1, 2018. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which modifies the accounting for leases, intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. ASU 2016-02 will require entities to recognize a liability for their lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at their present value and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For financing leases, the leased asset is depreciated on a straight-line basis and depreciation expense is recorded separately from the interest expense in the statements of operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. ASU 2016-02 requires that assets and liabilities be presented or disclosed separately, and requires additional disclosure of certain qualitative and quantitative information related to these lease agreements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. The Company is currently assessing the impact of the adoption of ASU 2016-02 on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships." ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted this guidance on January 1, 2017. The adoption of ASU 2016-05 did not have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this guidance prospectively on January 1, 2017, and prior periods have not been adjusted. As a result of the adoption of this guidance, the Company no longer presents the tax effects from vesting of restricted stock grants and stock option exercises on its condensed consolidated statement of noncontrolling interests and equity. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance on several specific cash flow issues, including the classification of debt prepayment or debt extinguishment costs, contingent consideration payments, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-18, " Statement of Cash Flows (Topic 230): Restricted Cash," which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which provides guidance on whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Specifically, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or group of similar identifiable assets, the set of assets is not a business. Additionally, ASU 2017-01 also provides other guidance providing a more robust framework to use in determining whether a set of assets and activities is a business. This guidance is effective for annual periods beginning after December 15, 2017. Early adoption is permitted for transactions for which the acquisition or disposition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued. The Company adopted ASU 2017-01 for new acquisitions beginning on January 1, 2017. The costs related to the acquisitions of stores that qualify as asset acquisitions will be capitalized as part of the purchase. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | FAIR VALUE DISCLOSURES Derivative Financial Instruments Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of June 30, 2017 , the Company had assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets - Cash Flow Hedge Swap Agreements $ 23,510 $ — $ 23,510 $ — Other liabilities - Cash Flow Hedge Swap Agreements $ (2,019 ) $ — $ (2,019 ) $ — The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of June 30, 2017 or December 31, 2016 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount. For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company carefully reviews stores in the lease-up stage and compares actual operating results to original projections. When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets. When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize an impairment loss on the assets held for sale. The operations of assets held for sale or sold during the period are presented as part of normal operations for all periods presented. As of June 30, 2017 , the Company had one parcel of undeveloped land and 36 operating stores classified as held for sale. The estimated fair value less selling costs of each of these operating stores is greater than the carrying value of the assets, and therefore no loss has been recorded related to the operating stores held for sale. As of June 30, 2017 , the Company recorded an impairment loss of $6,100 relating to one parcel of land held for sale and an additional two parcels of undeveloped land where the carrying value was greater than the fair value. The Company assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be impaired annually and when events or circumstances indicate that there may be impairment. An investment is impaired if management’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount of the investment over the fair value of the investment. In connection with the Company’s acquisition of stores, the purchase price is allocated to the tangible and intangible assets and liabilities acquired based on their relative fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its stores. Debt assumed as part of an acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transaction costs, for those qualifying as asset acquisitions, are capitalized as a component of the cost of the assets acquired. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable-rate notes payable, lines of credit and other liabilities reflected in the condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 approximate fair value. The fair values of the Company’s notes receivable from Preferred Operating Partnership unit holders and other fixed rate notes receivable were based on the discounted estimated future cash flows of the notes (categorized within Level 3 of the fair value hierarchy); the discount rate used approximated the current market rate for loans with similar maturities and credit quality. The fair values of the Company’s fixed-rate notes payable and notes payable to trusts were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality. The fair value of the Company’s exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party. The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: June 30, 2017 December 31, 2016 Fair Carrying Fair Carrying Notes receivable from Preferred Operating Partnership unit holders $ 114,593 $ 120,230 $ 125,642 $ 120,230 Fixed rate notes receivable $ 21,553 $ 20,608 $ 53,450 $ 52,201 Fixed rate notes payable and notes payable to trusts $ 2,648,758 $ 2,663,207 $ 2,404,996 $ 2,417,558 Exchangeable senior notes $ 692,462 $ 638,170 $ 706,827 $ 638,170 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using either the two-class, treasury stock or as if-converted method, whichever is most dilutive. Potential common shares are securities (such as options, convertible debt, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series C Convertible Redeemable Preferred Units (“Series C Units”), Series D Redeemable Preferred Units (“Series D Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right. In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (those that reduce earnings per common share) are included. For the three months ended June 30, 2017 and 2016 , options to purchase approximately 97,701 and 39,564 shares of common stock, respectively, and for the six months ended June 30, 2017 and 2016 , options to purchase approximately 98,966 and 28,721 shares of common stock, respectively, were excluded from the computation of earnings per share as their effect would have been anti-dilutive. For the purposes of computing the diluted impact of the potential exchange of the Preferred Operating Partnership units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, the Company divided the total value of the Preferred Operating Partnership units by the average share price for the period presented. The average share price for the three months ended June 30, 2017 and 2016 was $76.68 and $90.31 , respectively, and for the six months ended June 30, 2017 and 2016 , the average share price was $76.08 and $88.65 , respectively. The following table presents the number of Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive. For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Series B Units 546,455 463,982 550,765 472,670 Series C Units 386,529 328,193 389,578 334,338 Series D Units 1,073,610 292,443 1,072,784 226,285 2,006,594 1,084,618 2,013,127 1,033,293 The Operating Partnership had $63,170 of its 2.375% Exchangeable Senior Notes due 2033 (the “2013 Notes”) issued and outstanding as of June 30, 2017 . The 2013 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2013 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2013 Notes. The exchange price of the 2013 Notes was $53.54 per share as of June 30, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2013 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. The Operating Partnership had $575,000 of its 3.125% Exchangeable Senior Notes due 2035 (the “2015 Notes”) issued and outstanding as of June 30, 2017 . The 2015 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2015 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2015 Notes. The exchange price of the 2015 Notes was $94.24 per share as of June 30, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2015 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. Although the Company has retained the right to satisfy the exchange obligation in excess of the accreted principal amount of the 2013 Notes and 2015 Notes in cash and/or common stock, Accounting Standards Codification (“ASC”) 260, “Earnings per Share,” requires an assumption that shares would be used to pay such exchange obligation, and requires that those shares be included in the Company’s calculation of weighted average common shares outstanding for the diluted earnings per share computation. For the three and six months ended June 30, 2017 and 2016 , 356,000 and 456,768 shares, respectively, related to the 2013 Notes were included in the computation for diluted earnings per share. For the three and six months ended June 30, 2017 and 2016 , no shares related to the 2015 Notes were included in the computation for diluted earnings per share as the exchange price exceeded the per share price of the Company’s common stock during these periods. For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series A Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the positive intent and ability to settle at least $115,000 of the instrument in cash (or net settle a portion of the Series A Units against the related outstanding note receivable), only the amount of the instrument in excess of $115,000 is considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46. Accordingly, the number of shares included in the computation for diluted earnings per share related to the Series A Units is equal to the number of Series A Units outstanding, with no additional shares included related to the fixed $115,000 amount. The computation of earnings per common share was as follows for the periods presented: For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Net income attributable to common stockholders $ 87,006 $ 83,044 $ 169,288 $ 165,636 Earnings and dividends allocated to participating securities (207 ) (214 ) (403 ) (380 ) Earnings for basic computations 86,799 82,830 168,885 165,256 Earnings and dividends allocated to participating securities — — — 380 Income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) and Operating Partnership 4,965 5,398 10,285 10,872 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) (704 ) (1,271 ) (1,975 ) (2,542 ) Net income for diluted computations $ 91,060 $ 86,957 $ 177,195 $ 173,966 Weighted average common shares outstanding: Average number of common shares outstanding - basic 125,673,156 124,914,467 125,639,480 124,678,293 OP Units 5,574,364 5,517,607 5,585,218 5,569,537 Series A Units 875,480 875,480 875,480 875,480 Unvested restricted stock awards included for treasury stock method — — — 309,987 Shares related to exchangeable senior notes and dilutive stock options 660,402 718,361 659,176 719,222 Average number of common shares outstanding - diluted 132,783,402 132,025,915 132,759,354 132,152,519 Earnings per common share Basic $ 0.69 $ 0.66 $ 1.34 $ 1.33 Diluted $ 0.69 $ 0.66 $ 1.33 $ 1.32 |
Store Acquisitions
Store Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Store Acquisitions | STORE ACQUISITIONS The following table shows the Company’s acquisitions of operating stores for the six months ended June 30, 2017 . The table excludes purchases of raw land or improvements made to existing assets. Consideration Paid Total Property Location Number of Stores Date of Acquisition Total Cash Paid Loan Assumed Non- controlling interests Net Liabilities/(Assets) Assumed Value of OP Units Issued Number of OP Units Issued Real estate assets Florida 1 6/12/2017 $ 11,100 $ 4,270 $ — $ — $ 20 $ 6,810 272,400 $ 11,100 Florida 1 4/25/2017 7,377 7,400 — — (23 ) — — 7,377 Pennsylvania 1 4/11/2017 16,164 4,938 9,463 1,827 (64 ) — — 16,164 Illinois 1 2/1/2017 9,028 9,020 — — 8 — — 9,028 Georgia 1 1/6/2017 16,528 16,521 — — 7 — — 16,528 2017 Totals 5 $ 60,197 $ 42,149 $ 9,463 $ 1,827 $ (52 ) $ 6,810 272,400 $ 60,197 Store Dispositions On April 20, 2016, the Company closed on the sale of seven operating stores located in Ohio and Indiana that had been classified as held for sale for $17,555 in cash. The Company recognized a gain of $11,265 related to this disposition. On April 1, 2016, the Company disposed of a single store in Texas in exchange for 85,452 of our OP Units valued at $7,689 . The Operating Partnership has canceled the OP Units received in this disposition. The Company recognized a gain of $93 related to this disposition. Losses on Earnout from Prior Acquisition In December 2014, the Company acquired a portfolio of five stores located in New Jersey and Virginia. As part of this acquisition, the Company agreed to make an additional cash payment to the sellers if the acquired stores exceeded a specified amount of net operating income for the years ending December 31, 2015 and 2016. At the acquisition date, the Company recorded an estimated liability related to this earnout provision. The operating income of these stores during the earnout period was higher than expected, resulting in an increase in the estimate of the amount due to the sellers of $1,544 , which was recorded as a loss and included in gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate in the Company’s condensed consolidated statements of operations for the six months ended June 30, 2016. |
Variable Interests
Variable Interests | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interests | VARIABLE INTERESTS The Operating Partnership has three wholly-owned unconsolidated subsidiaries (“Trust,” “Trust II” and “Trust III,” together, the “Trusts”) that have issued trust preferred securities to third parties and common securities to the Operating Partnership. The proceeds from the sale of the preferred and common securities were loaned in the form of notes to the Operating Partnership. The Trusts are VIEs because the holders of the equity investment at risk (the trust preferred securities) do not have the power to direct the activities of the entities that most significantly affect the entities’ economic performance because of their lack of voting or similar rights. Because the Operating Partnership’s investment in the Trusts’ common securities was financed directly by the Trusts as a result of its loan of the proceeds to the Operating Partnership, that investment is not considered an equity investment at risk. The Operating Partnership’s investment in the Trusts is not a variable interest because equity interests are variable interests only to the extent that the investment is considered to be at risk, and therefore the Operating Partnership cannot be the primary beneficiary of the Trusts. Since the Company is not the primary beneficiary of the Trusts, they have not been consolidated. A debt obligation has been recorded in the form of notes for the proceeds as discussed above, which are owed to the Trusts. The Company has also included its investment in the Trusts’ common securities in other assets on the condensed consolidated balance sheets. The Company has not provided financing or other support during the periods presented to the Trusts that it was not previously contractually obligated to provide. The Company’s maximum exposure to loss as a result of its involvement with the Trusts is equal to the total amount of the notes discussed above less the amounts of the Company’s investments in the Trusts’ common securities. The net amount is equal to the notes payable that the Trusts owe to third parties for their investments in the Trusts’ preferred securities. Following is a tabular comparison of the assets and liabilities the Company has recorded as a result of its involvement with the Trusts to the maximum exposure to loss the Company is subject to as a result of such involvement as of June 30, 2017 : Notes payable Investment Maximum Difference Trust $ 36,083 $ 1,083 $ 35,000 $ — Trust II 42,269 1,269 41,000 — Trust III 41,238 1,238 40,000 — 119,590 $ 3,590 $ 116,000 — Unamortized debt issuance costs (2,207 ) $ 117,383 The Company had no consolidated VIEs during the six months ended June 30, 2017 . |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its debt funding and by using derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposure that arises from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish these objectives, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (“OCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A portion of these changes is excluded from accumulated other comprehensive income as it is allocated to noncontrolling interests. During the three and six months ended June 30, 2017 and 2016 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. In the coming 12 months, the Company estimates that an additional $3,310 will be reclassified as an increase to interest expense. The Company held 32 derivative financial instruments which had a total combined notional amount of $2,341,756 as of June 30, 2017 . Fair Values of Derivative Instruments The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets: Asset (Liability) Derivatives June 30, 2017 December 31, 2016 Derivatives designated as hedging instruments: Fair Value Other assets $ 23,510 $ 23,844 Other liabilities $ (2,019 ) $ (2,447 ) Effect of Derivative Instruments The tables below present the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations for the periods presented. No tax effect has been presented as the derivative instruments are held by the Company: Gain (loss) recognized in OCI For the Three Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Three Months Ended June 30, Type 2017 2016 2017 2016 Swap Agreements $ (8,693 ) $ (23,655 ) Interest expense $ (2,594 ) $ (4,861 ) Gain (loss) recognized in OCI For the Six Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Six Months Ended June 30, Type 2017 2016 2017 2016 Swap Agreements $ (5,687 ) $ (58,616 ) Interest expense $ (5,924 ) $ (9,314 ) Credit-risk-related Contingent Features The Company has agreements with some of its derivative counterparties that contain provisions pursuant to which the Company could be declared in default of its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. The Company also has an agreement with some of its derivative counterparties that incorporates the loan covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. As of June 30, 2017 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $1,846 . As of June 30, 2017 , the Company had not posted any collateral related to these agreements. If the Company had breached any of these provisions as of June 30, 2017 , it could have been required to settle its obligations under the agreements at their termination value of $2,272 , including accrued interest. |
Exchangeable Senior Notes
Exchangeable Senior Notes | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Exchangeable Senior Notes | EXCHANGEABLE SENIOR NOTES In September 2015, the Operating Partnership issued $575,000 of its 3.125% Exchangeable Senior Notes due 2035. Costs incurred to issue the 2015 Notes were approximately $11,992 , consisting primarily of a 2.0% underwriting fee. These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in exchangeable senior notes, net, in the condensed consolidated balance sheets. The 2015 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on April 1 and October 1 of each year beginning April 1, 2016, until the maturity date of October 1, 2035. The 2015 Notes bear interest at 3.125% per annum and contain an exchange settlement feature, which provides that the 2015 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2015 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2015 Notes as of June 30, 2017 was approximately 10.61 shares of the Company’s common stock per $1,000 principal amount of the 2015 Notes. The Operating Partnership may redeem the 2015 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after October 5, 2020, the Operating Partnership may redeem the 2015 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2015 Notes. The holders of the 2015 Notes have the right to require the Operating Partnership to repurchase the 2015 Notes for cash, in whole or in part, on October 1 of the years 2020, 2025 and 2030 (unless the Operating Partnership has called the 2015 Notes for redemption), and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2015 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2015 Notes, which may result in the accelerated maturity of the 2015 Notes. On June 21, 2013, the Operating Partnership issued $250,000 of its 2.375% Exchangeable Senior Notes due 2033 at a 1.5% discount, or $3,750 . Costs incurred to issue the 2013 Notes were approximately $1,672 . These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in exchangeable senior notes, net, in the condensed consolidated balance sheets. The 2013 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2014, until the maturity date of July 1, 2033. The 2013 Notes bear interest at 2.375% per annum and contain an exchange settlement feature, which provides that the 2013 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2013 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2013 Notes as of June 30, 2017 was approximately 18.68 shares of the Company’s common stock per $1,000 principal amount of the 2013 Notes. The Operating Partnership may redeem the 2013 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after July 5, 2018, the Operating Partnership may redeem the 2013 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2013 Notes. The holders of the 2013 Notes have the right to require the Operating Partnership to repurchase the 2013 Notes for cash, in whole or in part, on July 1 of the years 2018, 2023 and 2028, and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2013 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2013 Notes, which may result in the accelerated maturity of the 2013 Notes. Additionally, the 2013 Notes and the 2015 Notes can be exchanged during any calendar quarter, if the last reported sale price of the common stock of the Company is greater than or equal to 130% of the exchange price for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter. The price of the Company’s common stock exceeded 130% of the exchange price for the required time period for the 2013 Notes during the quarter ended June 30, 2017 . Therefore, holders of the 2013 Notes may elect to exchange such notes during the quarter ending September 30, 2017. The price of the Company’s common stock did not exceed 130% of the exchange price for the required time period for the 2015 Notes during the quarter ended June 30, 2017 . GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the condensed consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date: July 1, 2018 for the 2013 Notes, and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0% , which approximated the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance. Information about the Company’s 2013 Notes and 2015 Notes, including the total carrying amounts of the equity components, the principal amounts of the liability components, the unamortized discounts and the net carrying amounts was as follows for the periods indicated: June 30, 2017 December 31, 2016 Carrying amount of equity component - 2013 Notes $ — $ — Carrying amount of equity component - 2015 Notes 22,597 22,597 Carrying amount of equity components $ 22,597 $ 22,597 Principal amount of liability component - 2013 Notes $ 63,170 $ 63,170 Principal amount of liability component - 2015 Notes 575,000 575,000 Unamortized discount - equity component - 2013 Notes (797 ) (1,187 ) Unamortized discount - equity component - 2015 Notes (15,186 ) (17,355 ) Unamortized cash discount - 2013 Notes (187 ) (281 ) Unamortized debt issuance costs (7,827 ) (9,033 ) Net carrying amount of liability components $ 614,173 $ 610,314 The amount of interest cost recognized relating to the contractual interest rates and the amortization of the discounts on the liability components of the Notes were as follows for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Contractual interest $ 4,867 $ 4,867 $ 9,734 $ 9,749 Amortization of discount 1,290 1,240 2,559 2,473 Total interest expense recognized $ 6,157 $ 6,107 $ 12,293 $ 12,222 Repurchases of 2013 Notes During April 2016, the Company repurchased a total principal amount of $2,555 of the 2013 Notes. The Company paid cash for the principal amount and issued a total of 18,031 shares of common stock valued at $1,686 for the exchange value in excess of the principal amount. During February 2016, the Company repurchased a total principal amount of $19,639 of the 2013 Notes. The Company paid cash for the principal amount, and issued a total of 130,909 shares of common stock valued at $11,380 for the exchange value in excess of the principal amount. The Company allocated the value of the consideration paid to repurchase the 2013 Notes (1) to the extinguishment of the liability component and (2) to the reacquisition of the equity component. The amount allocated to the extinguishment of the liability component is equal to the fair value of that component immediately prior to extinguishment. The difference between the consideration attributed to the extinguishment of the liability component and the sum of (a) the net carrying amount of the repurchased liability component, and (b) the related unamortized debt issuance costs, is recognized as a gain on debt extinguishment. The remaining settlement consideration is allocated to the reacquisition of the equity component of the repurchased 2013 Notes and recognized as a reduction of stockholders’ equity. Information about the repurchases is as follows: February 2016 April 2016 Principal amount repurchased $ 19,639 $ 2,555 Amount allocated to: Extinguishment of liability component $ 18,887 $ 2,476 Reacquisition of equity component 12,132 1,766 Total consideration paid for repurchase $ 31,019 $ 4,242 Exchangeable senior notes repurchased $ 19,639 $ 2,555 Extinguishment of liability component (18,887 ) (2,476 ) Discount on exchangeable senior notes (716 ) (72 ) Related debt issuance costs (36 ) (7 ) Gain/(loss) on repurchase $ — $ — |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY On May 6, 2016, the Company filed its current $400,000 "at the market" equity program with the Securities and Exchange Commission using a new shelf registration statement on Form S-3, and entered into separate equity distribution agreements with five sales agents. Under the terms of the current equity distribution agreements, the Company may from time to time offer and sell shares of common stock, up to the aggregate offering price of $400,000 , through its sales agents. During the three and six months ended June 30, 2017 , the Company did not issue any shares and had $349,375 available for issuance under the existing equity distribution agreements. |
Noncontrolling Interest Represe
Noncontrolling Interest Represented by Preferred Operating Partnership Units | 6 Months Ended |
Jun. 30, 2017 | |
Preferred Operating Partnership Units [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest Represented by Preferred Operating Partnership Units | NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS Classification of Noncontrolling Interests GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the Operating Partnership’s preferred units and classifies the noncontrolling interest represented by such preferred units as stockholders’ equity in the accompanying condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the condensed consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount and (2) the redemption value as of the end of the period in which the determination is made. Series A Participating Redeemable Preferred Units On June 15, 2007, the Operating Partnership entered into a Contribution Agreement with various limited partnerships affiliated with AAAAA Rent-A-Space to acquire ten stores in exchange for 989,980 Series A Units of the Operating Partnership. The stores are located in California and Hawaii. The partnership agreement of the Operating Partnership (as amended, the “Partnership Agreement”) provides for the designation and issuance of the Series A Units. The Series A Units will have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. Under the Partnership Agreement, Series A Units in the amount of $115,000 bear a fixed priority return of 2.3% and have a fixed liquidation value of $115,000 . The remaining balance participates in distributions with, and has a liquidation value equal to, that of the OP Units. The Series A Units are redeemable at the option of the holder, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock. On April 18, 2017, the holders of the Series A Units and the Operating Partnership agreed to reduce the fixed priority return on the Series A Units from 5.0% to 2.3% in exchange for a reduction in the interest rate of the related loan, as more fully described below. On June 25, 2007, the Operating Partnership loaned the holders of the Series A Units $100,000 . The note receivable bears interest at 2.1% . On April 18, 2017, a loan amendment was signed modifying the maturity date of the loan to the later of the death of the Series A Unit holder or his spouse. The loan amendment also lowered the interest rate of the loan from 4.9% to 2.1% . The loan amendment was determined to be a loan modification under GAAP, and therefore no change in value was recognized. The loan is secured by the borrower’s Series A Units. The holders of the Series A Units could redeem up to 114,500 Series A Units prior to the maturity date of the loan. If any redemption in excess of 114,500 Series A Units occurs prior to the maturity date, the holder of the Series A Units is required to repay the loan as of the date of that redemption. On October 3, 2014, the holders of the Series A Units redeemed 114,500 Series A Units for $4,794 in cash and 280,331 shares of common stock. No additional redemption of Series A Units can be made without repayment of the loan. The Series A Units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan receivable is also the holder of the Series A Units. Series B Redeemable Preferred Units On April 3, 2014, the Operating Partnership completed the purchase of a store located in Georgia. This store was acquired in exchange for $15,158 of cash and 333,360 Series B Units valued at $8,334 . On August 29, 2013, the Operating Partnership completed the purchase of 19 out of 20 stores affiliated with All Aboard Mini Storage, all of which are located in California. On September 26, 2013, the Operating Partnership completed the purchase of the remaining store. These stores were acquired in exchange for $100,876 of cash (including $98,960 of debt assumed and immediately defeased at closing), 1,342,727 Series B Units valued at $33,568 , and 1,448,108 OP Units valued at $62,341 . The Partnership Agreement provides for the designation and issuance of the Series B Units. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The outstanding Series B Units have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902 . Holders of the Series B Units receive distributions at an annual rate of 6.0% . These distributions are cumulative. The Series B Units became redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. Series C Convertible Redeemable Preferred Units The Company completed the purchase of twelve stores in California between December 2013 and May 2014. The Company previously held 35% interests in five of these stores and a 40% interest in one store through six separate joint ventures. These stores were acquired in exchange for a total of approximately $45,722 of cash, the assumption of $37,532 in existing debt, and the issuance of 704,016 Series C Units valued at $30,960 . The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units rank junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The outstanding Series C Units have a liquidation value of $42.10 per unit for a fixed liquidation value of $29,639 . From issuance to the fifth anniversary of issuance, each Series C Unit holder will receive quarterly distributions equal to the quarterly distribution per OP Unit plus $0.18 . Beginning on the fifth anniversary of issuance, each Series C Unit holder will receive a fixed quarterly distribution equal to the aggregate quarterly distribution payable in respect of such Series C Unit during the four quarters immediately preceding the fifth anniversary of issuance, divided by four. These distributions are cumulative. The Series C Units became redeemable at the option of the holder one year from the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. The Series C Units are convertible into OP Units at the option of the holder at a rate of 0.9145 OP Units per Series C Unit converted. This conversion option expires upon the fifth anniversary of the date of issuance. In December 2014, the Operating Partnership loaned certain holders of the Series C Units $20,230 . The notes receivable, which are collateralized by the Series C Units, bear interest at 5.0% per annum and mature on December 15, 2024 . The Series C Units are shown on the balance sheet net of the $20,230 loan because the borrower under the loan receivable is also the holder of the Series C Units. Series D Redeemable Preferred Units On June 12, 2017, the Operating Partnership completed the acquisition of a store located in Florida. This store was acquired in exchange for $4,270 in cash and 272,400 Series D-5 Preferred Units ("D-5 Units") valued at $6,810 . On November 8, 2016, the Operating Partnership completed the acquisition of a store located in Illinois. This store was acquired in exchange for 486,244 Series D-4 Preferred Units ("D-4 Units") valued at $12,156 . On June 10, 2016, the Operating Partnership completed the acquisition of four stores located in Illinois. These stores were acquired in exchange for 2,201,467 Series D-3 Preferred Units ("D-3 Units") valued at $ 55,037 . In December 2014, the Operating Partnership completed the acquisition of a store located in Florida. This store was acquired in exchange for $5,621 in cash and 548,390 Series D-1 Preferred Units ("D-1 Units," and together with the D-3 Units, D-4 Units and D-5 Units, "Series D Units") valued at $13,710 . The Partnership Agreement provides for the designation and issuance of the Series D Units. The Series D Units rank junior to the Series A Units, on parity with the Series B Units and Series C Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $87,713 . Holders of the Series D Units receive distributions at an annual rate between 3.5% to 5.0% . These distributions are cumulative. The Series D Units become redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. In addition, the D-3 Units are convertible into OP Units at the option of the holder until the tenth anniversary of the date of issuance, with the number of OP Units to be issued equal to $25.00 per D-3 Unit, divided by the value of a share of common stock as of the exchange date. |
Noncontrolling Interest in Oper
Noncontrolling Interest in Operating Partnership | 6 Months Ended |
Jun. 30, 2017 | |
Common Operating Partnership [Member] | |
Noncontrolling Interest [Line Items] | |
Noncontrolling Interest in Operating Partnership | NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP The Company’s interest in its stores is held through the Operating Partnership. ESS Holding Business Trust I, a wholly-owned subsidiary of the Company, is the sole general partner of the Operating Partnership. ESS Holding Business Trust II, also a wholly-owned subsidiary of the Company, is a limited partner of the Operating Partnership. Between its general partner and limited partner interests, the Company held a 91.1% ownership interest in the Operating Partnership as of June 30, 2017 . The remaining ownership interests in the Operating Partnership (including Preferred Operating Partnership units) of 8.9% are held by certain former owners of assets acquired by the Operating Partnership. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. In conjunction with the formation of the Company, and as a result of subsequent acquisitions, certain persons and entities contributing interests in stores to the Operating Partnership received limited partnership interests in the form of OP Units. Limited partners who received OP Units in the formation transactions or in exchange for contributions for interests in stores have the right to require the Operating Partnership to redeem part or all of their OP Units for cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (based on the ten -day average trading price) at the time of the redemption. Alternatively, the Company may, in its sole discretion, elect to acquire those OP Units in exchange for shares of its common stock on a one-for-one basis , subject to anti-dilution adjustments provided in the Partnership Agreement. The ten-day average closing stock price at June 30, 2017 was $78.09 and there were 5,574,142 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on June 30, 2017 and the Company elected to pay the OP Unit holders cash, the Company would have paid $435,285 in cash consideration to redeem the units. During the quarter, 10,100 OP Units were redeemed for $756 in cash. GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations, and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the OP Units and classifies the noncontrolling interest represented by the OP Units as stockholders’ equity in the accompanying condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the condensed consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount and (2) the redemption value as of the end of the period in which the determination is made. |
Other Noncontrolling Interests
Other Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2017 | |
Other Noncontrolling Interests [Member] | |
Noncontrolling Interest [Line Items] | |
Other Noncontrolling Interests | OTHER NONCONTROLLING INTERESTS Other noncontrolling interests represent the ownership interests of a third party in two consolidated joint ventures as of June 30, 2017 . One joint venture owns an operating store in Texas, and the other owns a store in Pennsylvania. The voting interests of the third-party owners are between 20.0% and 27.0% . |
Equity in Earnings of Unconsoli
Equity in Earnings of Unconsolidated Real Estate Ventures - Gain on Sale of Real Estate and Purchase of Joint Venture Partner's Interest | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity in Earnings of Unconsolidated Real Estate Ventures - Gain on Sale of Real Estate and Purchase of Joint Venture Partner's Interest | EQUITY IN EARNINGS OF UNCONSOLIDATED REAL ESTATE VENTURES—GAIN ON PURCHASE OF JOINT VENTURE PARTNER'S INTEREST On February 2, 2016, the Company acquired six stores from its VRS Self Storage LLC joint venture (“VRS”) in a step acquisition. These stores are located in Florida, Maryland, Nevada, New York, and Tennessee. The Company owns 45.0% of VRS, with the other 55.0% owned by affiliates of Prudential Global Investment Management ("Prudential"). VRS created a new subsidiary, Extra Space Properties 122 LLC (“ESP 122”) and transferred six stores into ESP 122. VRS then distributed ESP 122 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the stores of $17,261 . Immediately after the distribution, the Company acquired Prudential’s 55.0% interest in ESP 122 for $53,940 , resulting in 100% ownership of ESP 122 and the related six stores. Based on the purchase price of Prudential’s share of ESP 122, the Company determined that the fair value of its investment in ESP 122 immediately prior to the acquisition of Prudential’s share was $44,184 , and the Company recorded a gain of $26,923 during the six months ended June 30, 2016 as a result of remeasuring to fair value its existing equity interest in ESP 122. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest on the Company’s condensed consolidated statements of operations. The Company recorded fixed assets related to this acquisition of $98,082 , which includes total cash paid, the investment in ESP 122, and the step acquisition gain, less net assets acquired. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company operates in three distinct segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. Management fees collected for consolidated joint venture stores are eliminated in consolidation. Financial information for the Company’s business segments is presented below: June 30, 2017 December 31, 2016 Balance Sheet Investment in unconsolidated real estate ventures Rental operations $ 79,294 $ 79,570 Total assets Rental operations $ 6,734,180 $ 6,731,292 Tenant reinsurance 33,331 44,524 Property management, acquisition and development 269,952 315,630 $ 7,037,463 $ 7,091,446 For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Statement of Operations Total revenues Rental operations $ 240,796 $ 211,791 $ 472,289 $ 411,279 Tenant reinsurance 24,313 21,654 47,168 42,209 Property management, acquisition and development 10,894 10,828 19,554 20,188 276,003 244,273 539,011 473,676 Operating expenses, including depreciation and amortization Rental operations 110,672 104,161 226,029 205,859 Tenant reinsurance 3,804 3,941 7,724 8,252 Property management, acquisition and development 25,120 25,869 44,648 55,635 139,596 133,971 278,401 269,746 Income (loss) from operations Rental operations 130,124 107,630 246,260 205,420 Tenant reinsurance 20,509 17,713 39,444 33,957 Property management, acquisition and development (14,226 ) (15,041 ) (25,094 ) (35,447 ) 136,407 110,302 260,610 203,930 Gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate Property management, acquisition and development (6,019 ) 11,358 (6,019 ) 9,814 Interest expense Rental operations (36,214 ) (31,941 ) (71,035 ) (62,506 ) Property management, acquisition and development (1,242 ) (861 ) (2,391 ) (1,655 ) (37,456 ) (32,802 ) (73,426 ) (64,161 ) Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes Property management, acquisition and development (1,290 ) (1,240 ) (2,559 ) (2,473 ) Interest income Property management, acquisition and development 826 1,625 1,928 3,339 Interest income on note receivable from Preferred Operating Partnership unit holder Property management, acquisition and development 659 1,212 1,872 2,425 Equity in earnings of unconsolidated real estate ventures Rental operations 3,838 3,358 7,417 6,188 Equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest Property management, acquisition and development — — — 26,923 Income tax (expense) benefit Rental operations (462 ) (445 ) (925 ) (1,290 ) Tenant reinsurance (3,866 ) (3,185 ) (7,129 ) (5,848 ) Property management, acquisition and development 1,461 (143 ) 2,063 600 (2,867 ) (3,773 ) (5,991 ) (6,538 ) Net income (loss) Rental operations 97,286 78,602 181,717 147,812 Tenant reinsurance 16,643 14,528 32,315 28,109 Property management, acquisition and development (19,831 ) (3,090 ) (30,200 ) 3,526 $ 94,098 $ 90,040 $ 183,832 $ 179,447 For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Depreciation and amortization expense Rental operations $ 43,377 $ 41,731 $ 92,089 $ 82,317 Property management, acquisition and development 3,255 2,219 3,975 4,530 $ 46,632 $ 43,950 $ 96,064 $ 86,847 Statement of Cash Flows Acquisition of real estate assets Property management, acquisition and development $ (72,651 ) $ (435,298 ) Development and redevelopment of real estate assets Property management, acquisition and development $ (12,274 ) $ (14,400 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of June 30, 2017 , the Company is involved in various legal proceedings and is subject to various claims and complaints arising in the ordinary course of business. Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty. In accordance with applicable accounting guidance, management establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. The Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period, notwithstanding the fact that the Company is currently vigorously defending any legal proceedings against it. During the three months ended June 30, 2017 the Company settled a legal proceeding against it and made a payment against the related accrued liability on the condensed consolidated balance sheet. As of June 30, 2017 , the Company was under agreement to acquire three operating stores and 12 stores to be acquired upon the completion of construction. The total purchase price of all stores with commitments was $166,631 . Of these stores, five are scheduled to close in 2017. The remaining stores will close upon completion of construction, expected to occur on various dates in 2018 and 2019. Additionally, the Company is under agreement to acquire 24 stores with joint venture partners, for a total purchase price of $134,386 . Eleven of these stores are scheduled to close in 2017, while the remaining 13 stores are expected to close in 2018. Although there can be no assurance, the Company is not aware of any material environmental liability, for which it believes it will be ultimately responsible, that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s stores, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to its stores could result in future material environmental liabilities. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers, ” which amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. ASU 2014-09 outlines a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. The new standard will become effective for annual and interim periods beginning after December 15, 2017 with early adoption permitted. The Company has determined that its property rental revenue and tenant reinsurance revenue will not be subject to the guidance in ASU 2014-09, as they qualify as lease contracts and insurance contracts, which are excluded from its scope. The Company's management fee revenue will be included in the scope of the standard. However, based on the Company's initial assessment, it appears that revenue recognized under the standard will not differ materially from revenue recognized under existing guidance. The Company continues to assess the potential impacts of ASU 2014-09. The Company anticipates adopting the standard using the modified retrospective transition method as of January 1, 2018. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which modifies the accounting for leases, intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. ASU 2016-02 will require entities to recognize a liability for their lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at their present value and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For financing leases, the leased asset is depreciated on a straight-line basis and depreciation expense is recorded separately from the interest expense in the statements of operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. ASU 2016-02 requires that assets and liabilities be presented or disclosed separately, and requires additional disclosure of certain qualitative and quantitative information related to these lease agreements. ASU 2016-02 is effective for annual and interim periods beginning after December 15, 2018. The Company is currently assessing the impact of the adoption of ASU 2016-02 on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships." ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted this guidance on January 1, 2017. The adoption of ASU 2016-05 did not have a material impact on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “ Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this guidance prospectively on January 1, 2017, and prior periods have not been adjusted. As a result of the adoption of this guidance, the Company no longer presents the tax effects from vesting of restricted stock grants and stock option exercises on its condensed consolidated statement of noncontrolling interests and equity. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance on several specific cash flow issues, including the classification of debt prepayment or debt extinguishment costs, contingent consideration payments, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-18, " Statement of Cash Flows (Topic 230): Restricted Cash," which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements. |
Fair Value Disclosures | Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount. For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company carefully reviews stores in the lease-up stage and compares actual operating results to original projections. When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets. When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize an impairment loss on the assets held for sale. The operations of assets held for sale or sold during the period are presented as part of normal operations for all periods presented. As of June 30, 2017 , the Company had one parcel of undeveloped land and 36 operating stores classified as held for sale. The estimated fair value less selling costs of each of these operating stores is greater than the carrying value of the assets, and therefore no loss has been recorded related to the operating stores held for sale. As of June 30, 2017 , the Company recorded an impairment loss of $6,100 relating to one parcel of land held for sale and an additional two parcels of undeveloped land where the carrying value was greater than the fair value. The Company assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be impaired annually and when events or circumstances indicate that there may be impairment. An investment is impaired if management’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount of the investment over the fair value of the investment. In connection with the Company’s acquisition of stores, the purchase price is allocated to the tangible and intangible assets and liabilities acquired based on their relative fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its stores. Debt assumed as part of an acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transaction costs, for those qualifying as asset acquisitions, are capitalized as a component of the cost of the assets acquired. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable-rate notes payable, lines of credit and other liabilities reflected in the condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 approximate fair value. The fair values of the Company’s notes receivable from Preferred Operating Partnership unit holders and other fixed rate notes receivable were based on the discounted estimated future cash flows of the notes (categorized within Level 3 of the fair value hierarchy); the discount rate used approximated the current market rate for loans with similar maturities and credit quality. The fair values of the Company’s fixed-rate notes payable and notes payable to trusts were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality. The fair value of the Company’s exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party. Derivative Financial Instruments Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques, including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts and guarantees. In conjunction with the FASB’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by the Company and its counterparties. However, as of June 30, 2017 , the Company had assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using either the two-class, treasury stock or as if-converted method, whichever is most dilutive. Potential common shares are securities (such as options, convertible debt, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series C Convertible Redeemable Preferred Units (“Series C Units”), Series D Redeemable Preferred Units (“Series D Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right. In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (those that reduce earnings per common share) are included. |
Derivatives | The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its debt funding and by using derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposure that arises from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. |
Convertible Debt | GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the condensed consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date: July 1, 2018 for the 2013 Notes, and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0% , which approximated the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description June 30, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets - Cash Flow Hedge Swap Agreements $ 23,510 $ — $ 23,510 $ — Other liabilities - Cash Flow Hedge Swap Agreements $ (2,019 ) $ — $ (2,019 ) $ — |
Schedule of Fair Value of Financial Instruments | The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: June 30, 2017 December 31, 2016 Fair Carrying Fair Carrying Notes receivable from Preferred Operating Partnership unit holders $ 114,593 $ 120,230 $ 125,642 $ 120,230 Fixed rate notes receivable $ 21,553 $ 20,608 $ 53,450 $ 52,201 Fixed rate notes payable and notes payable to trusts $ 2,648,758 $ 2,663,207 $ 2,404,996 $ 2,417,558 Exchangeable senior notes $ 692,462 $ 638,170 $ 706,827 $ 638,170 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Shares Excluded from Computation of Earnings Per Share | The following table presents the number of Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive. For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Series B Units 546,455 463,982 550,765 472,670 Series C Units 386,529 328,193 389,578 334,338 Series D Units 1,073,610 292,443 1,072,784 226,285 2,006,594 1,084,618 2,013,127 1,033,293 |
Schedule of Computation of Earnings Per Common Share | The computation of earnings per common share was as follows for the periods presented: For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Net income attributable to common stockholders $ 87,006 $ 83,044 $ 169,288 $ 165,636 Earnings and dividends allocated to participating securities (207 ) (214 ) (403 ) (380 ) Earnings for basic computations 86,799 82,830 168,885 165,256 Earnings and dividends allocated to participating securities — — — 380 Income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) and Operating Partnership 4,965 5,398 10,285 10,872 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) (704 ) (1,271 ) (1,975 ) (2,542 ) Net income for diluted computations $ 91,060 $ 86,957 $ 177,195 $ 173,966 Weighted average common shares outstanding: Average number of common shares outstanding - basic 125,673,156 124,914,467 125,639,480 124,678,293 OP Units 5,574,364 5,517,607 5,585,218 5,569,537 Series A Units 875,480 875,480 875,480 875,480 Unvested restricted stock awards included for treasury stock method — — — 309,987 Shares related to exchangeable senior notes and dilutive stock options 660,402 718,361 659,176 719,222 Average number of common shares outstanding - diluted 132,783,402 132,025,915 132,759,354 132,152,519 Earnings per common share Basic $ 0.69 $ 0.66 $ 1.34 $ 1.33 Diluted $ 0.69 $ 0.66 $ 1.33 $ 1.32 |
Store Acquisitions (Tables)
Store Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Operating Properties Acquired | The following table shows the Company’s acquisitions of operating stores for the six months ended June 30, 2017 . The table excludes purchases of raw land or improvements made to existing assets. Consideration Paid Total Property Location Number of Stores Date of Acquisition Total Cash Paid Loan Assumed Non- controlling interests Net Liabilities/(Assets) Assumed Value of OP Units Issued Number of OP Units Issued Real estate assets Florida 1 6/12/2017 $ 11,100 $ 4,270 $ — $ — $ 20 $ 6,810 272,400 $ 11,100 Florida 1 4/25/2017 7,377 7,400 — — (23 ) — — 7,377 Pennsylvania 1 4/11/2017 16,164 4,938 9,463 1,827 (64 ) — — 16,164 Illinois 1 2/1/2017 9,028 9,020 — — 8 — — 9,028 Georgia 1 1/6/2017 16,528 16,521 — — 7 — — 16,528 2017 Totals 5 $ 60,197 $ 42,149 $ 9,463 $ 1,827 $ (52 ) $ 6,810 272,400 $ 60,197 |
Variable Interests (Tables)
Variable Interests (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Assets and Liabilities and Maximum Exposure to Loss Related to Trusts | Following is a tabular comparison of the assets and liabilities the Company has recorded as a result of its involvement with the Trusts to the maximum exposure to loss the Company is subject to as a result of such involvement as of June 30, 2017 : Notes payable Investment Maximum Difference Trust $ 36,083 $ 1,083 $ 35,000 $ — Trust II 42,269 1,269 41,000 — Trust III 41,238 1,238 40,000 — 119,590 $ 3,590 $ 116,000 — Unamortized debt issuance costs (2,207 ) $ 117,383 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Balance Sheet Classification and Fair Value of Entity's Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the condensed consolidated balance sheets: Asset (Liability) Derivatives June 30, 2017 December 31, 2016 Derivatives designated as hedging instruments: Fair Value Other assets $ 23,510 $ 23,844 Other liabilities $ (2,019 ) $ (2,447 ) |
Schedule of Information Relating to Gain (Loss) Recognized on Swap Agreements | The tables below present the effect of the Company’s derivative financial instruments on the condensed consolidated statements of operations for the periods presented. No tax effect has been presented as the derivative instruments are held by the Company: Gain (loss) recognized in OCI For the Three Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Three Months Ended June 30, Type 2017 2016 2017 2016 Swap Agreements $ (8,693 ) $ (23,655 ) Interest expense $ (2,594 ) $ (4,861 ) Gain (loss) recognized in OCI For the Six Months Ended June 30, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Six Months Ended June 30, Type 2017 2016 2017 2016 Swap Agreements $ (5,687 ) $ (58,616 ) Interest expense $ (5,924 ) $ (9,314 ) |
Exchangeable Senior Notes (Tabl
Exchangeable Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Information about Total Carrying Amounts of Equity Components, Principal Amounts of Liability Components, Unamortized Discounts and Net Carrying Amounts for Notes | Information about the Company’s 2013 Notes and 2015 Notes, including the total carrying amounts of the equity components, the principal amounts of the liability components, the unamortized discounts and the net carrying amounts was as follows for the periods indicated: June 30, 2017 December 31, 2016 Carrying amount of equity component - 2013 Notes $ — $ — Carrying amount of equity component - 2015 Notes 22,597 22,597 Carrying amount of equity components $ 22,597 $ 22,597 Principal amount of liability component - 2013 Notes $ 63,170 $ 63,170 Principal amount of liability component - 2015 Notes 575,000 575,000 Unamortized discount - equity component - 2013 Notes (797 ) (1,187 ) Unamortized discount - equity component - 2015 Notes (15,186 ) (17,355 ) Unamortized cash discount - 2013 Notes (187 ) (281 ) Unamortized debt issuance costs (7,827 ) (9,033 ) Net carrying amount of liability components $ 614,173 $ 610,314 |
Summary of Amount of Interest Cost Recognized Relating to Contractual Interest Rates and Amortization of Discounts on Liability Components of Notes | The amount of interest cost recognized relating to the contractual interest rates and the amortization of the discounts on the liability components of the Notes were as follows for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Contractual interest $ 4,867 $ 4,867 $ 9,734 $ 9,749 Amortization of discount 1,290 1,240 2,559 2,473 Total interest expense recognized $ 6,157 $ 6,107 $ 12,293 $ 12,222 |
Summary of Repurchase of Debt | Information about the repurchases is as follows: February 2016 April 2016 Principal amount repurchased $ 19,639 $ 2,555 Amount allocated to: Extinguishment of liability component $ 18,887 $ 2,476 Reacquisition of equity component 12,132 1,766 Total consideration paid for repurchase $ 31,019 $ 4,242 Exchangeable senior notes repurchased $ 19,639 $ 2,555 Extinguishment of liability component (18,887 ) (2,476 ) Discount on exchangeable senior notes (716 ) (72 ) Related debt issuance costs (36 ) (7 ) Gain/(loss) on repurchase $ — $ — |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Business Segments | Financial information for the Company’s business segments is presented below: June 30, 2017 December 31, 2016 Balance Sheet Investment in unconsolidated real estate ventures Rental operations $ 79,294 $ 79,570 Total assets Rental operations $ 6,734,180 $ 6,731,292 Tenant reinsurance 33,331 44,524 Property management, acquisition and development 269,952 315,630 $ 7,037,463 $ 7,091,446 For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Statement of Operations Total revenues Rental operations $ 240,796 $ 211,791 $ 472,289 $ 411,279 Tenant reinsurance 24,313 21,654 47,168 42,209 Property management, acquisition and development 10,894 10,828 19,554 20,188 276,003 244,273 539,011 473,676 Operating expenses, including depreciation and amortization Rental operations 110,672 104,161 226,029 205,859 Tenant reinsurance 3,804 3,941 7,724 8,252 Property management, acquisition and development 25,120 25,869 44,648 55,635 139,596 133,971 278,401 269,746 Income (loss) from operations Rental operations 130,124 107,630 246,260 205,420 Tenant reinsurance 20,509 17,713 39,444 33,957 Property management, acquisition and development (14,226 ) (15,041 ) (25,094 ) (35,447 ) 136,407 110,302 260,610 203,930 Gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate Property management, acquisition and development (6,019 ) 11,358 (6,019 ) 9,814 Interest expense Rental operations (36,214 ) (31,941 ) (71,035 ) (62,506 ) Property management, acquisition and development (1,242 ) (861 ) (2,391 ) (1,655 ) (37,456 ) (32,802 ) (73,426 ) (64,161 ) Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes Property management, acquisition and development (1,290 ) (1,240 ) (2,559 ) (2,473 ) Interest income Property management, acquisition and development 826 1,625 1,928 3,339 Interest income on note receivable from Preferred Operating Partnership unit holder Property management, acquisition and development 659 1,212 1,872 2,425 Equity in earnings of unconsolidated real estate ventures Rental operations 3,838 3,358 7,417 6,188 Equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest Property management, acquisition and development — — — 26,923 Income tax (expense) benefit Rental operations (462 ) (445 ) (925 ) (1,290 ) Tenant reinsurance (3,866 ) (3,185 ) (7,129 ) (5,848 ) Property management, acquisition and development 1,461 (143 ) 2,063 600 (2,867 ) (3,773 ) (5,991 ) (6,538 ) Net income (loss) Rental operations 97,286 78,602 181,717 147,812 Tenant reinsurance 16,643 14,528 32,315 28,109 Property management, acquisition and development (19,831 ) (3,090 ) (30,200 ) 3,526 $ 94,098 $ 90,040 $ 183,832 $ 179,447 For the Three Months Ended June 30, For the Six Months Ended June 30, 2017 2016 2017 2016 Depreciation and amortization expense Rental operations $ 43,377 $ 41,731 $ 92,089 $ 82,317 Property management, acquisition and development 3,255 2,219 3,975 4,530 $ 46,632 $ 43,950 $ 96,064 $ 86,847 Statement of Cash Flows Acquisition of real estate assets Property management, acquisition and development $ (72,651 ) $ (435,298 ) Development and redevelopment of real estate assets Property management, acquisition and development $ (12,274 ) $ (14,400 ) |
Organization - Additional Infor
Organization - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017segmentstorestate | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of operating storage facilities in which the entity has equity interests (in stores) | 1,023 |
Number of stores owned by franchisees and third parties | 447 |
Number of operating stores owned and/or managed | 1,470 |
Number of states in which operating storage facilities are located | state | 38 |
Number of reportable segments | segment | 3 |
Rental Revenue [Member] | Customer Concentration Risk [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Percentage of rental income accounted for by any single tenant (no more than) | 5.00% |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - Recurring Basis [Member] $ in Thousands | Jun. 30, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | $ 23,510 |
Other liabilities - Cash Flow Hedge Swap Agreements | (2,019) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 0 |
Other liabilities - Cash Flow Hedge Swap Agreements | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 23,510 |
Other liabilities - Cash Flow Hedge Swap Agreements | (2,019) |
Significant Unobservable Inputs (Level 3) [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 0 |
Other liabilities - Cash Flow Hedge Swap Agreements | $ 0 |
Fair Value Disclosures - Sche34
Fair Value Disclosures - Schedule of Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred Operating Partnership unit holders | $ 120,230 | $ 120,230 |
Fixed rate notes payable and notes payable to trusts | 3,429,153 | 3,213,588 |
Exchangeable senior notes | 614,173 | 610,314 |
Fair Value [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred Operating Partnership unit holders | 114,593 | 125,642 |
Fixed rate notes receivable | 21,553 | 53,450 |
Fixed rate notes payable and notes payable to trusts | 2,648,758 | 2,404,996 |
Exchangeable senior notes | 692,462 | 706,827 |
Carrying Value [Member] | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred Operating Partnership unit holders | 120,230 | 120,230 |
Fixed rate notes receivable | 20,608 | 52,201 |
Fixed rate notes payable and notes payable to trusts | 2,663,207 | 2,417,558 |
Exchangeable senior notes | $ 638,170 | $ 638,170 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) $ in Thousands | Jun. 30, 2017USD ($)land_parcelstore |
Fair Value Disclosures [Abstract] | |
Number of parcels of undeveloped land classified as held for sale | 1 |
Number of operating stores held for sale | store | 36 |
Loss on parcels of land held for sale | $ | $ 6,100 |
Number of parcels of land where the carrying value was great than the fair value | 2 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Antidilutive Shares Excluded from Computation of Earnings Per Share (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares (if converted) (in shares) | 2,006,594 | 1,084,618 | 2,013,127 | 1,033,293 |
Series B Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares (if converted) (in shares) | 546,455 | 463,982 | 550,765 | 472,670 |
Series C Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares (if converted) (in shares) | 386,529 | 328,193 | 389,578 | 334,338 |
Series D Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Equivalent shares (if converted) (in shares) | 1,073,610 | 292,443 | 1,072,784 | 226,285 |
Earnings Per Common Share - S37
Earnings Per Common Share - Schedule of Computation of Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Line Items] | ||||
Net income attributable to common stockholders | $ 87,006 | $ 83,044 | $ 169,288 | $ 165,636 |
Earnings and dividends allocated to participating securities | (207) | (214) | (403) | (380) |
Earnings for basic computations | 86,799 | 82,830 | 168,885 | 165,256 |
Undistributed Earnings, Diluted | 0 | 0 | 0 | 380 |
Income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) and Operating Partnership | 4,965 | 5,398 | 10,285 | 10,872 |
Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) | (704) | (1,271) | (1,975) | (2,542) |
Net income for diluted computations | $ 91,060 | $ 86,957 | $ 177,195 | $ 173,966 |
Weighted average common shares outstanding: | ||||
Average number of common shares outstanding - basic (in shares) | 125,673,156 | 124,914,467 | 125,639,480 | 124,678,293 |
OP Units (in shares) | 5,574,364 | 5,517,607 | 5,585,218 | 5,569,537 |
Preferred series units (in shares) | 875,480 | 875,480 | 875,480 | 875,480 |
Unvested restricted stock awards included for treasure stock method | 0 | 0 | 0 | 309,987 |
Shares related to exchangeable senior notes and dilutive stock options (in shares) | 660,402 | 718,361 | 659,176 | 719,222 |
Average number of common shares outstanding - diluted (in shares) | 132,783,402 | 132,025,915 | 132,759,354 | 132,152,519 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.69 | $ 0.66 | $ 1.34 | $ 1.33 |
Diluted (in dollars per share) | $ 0.69 | $ 0.66 | $ 1.33 | $ 1.32 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Apr. 30, 2016 | Feb. 29, 2016 | Sep. 30, 2015 | Jun. 21, 2013 | |
Earnings Per Share [Line Items] | |||||||||
Average share price (in dollars per share) | $ 76.68 | $ 90.31 | $ 76.08 | $ 88.65 | |||||
Principal amount of notes outstanding | $ 614,173,000 | $ 614,173,000 | $ 610,314,000 | ||||||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | |||||||||
Earnings Per Share [Line Items] | |||||||||
Principal amount of notes outstanding | $ 63,170,000 | $ 63,170,000 | 63,170,000 | $ 2,555,000 | $ 19,639,000 | ||||
Interest rate | 2.375% | 2.375% | 2.375% | ||||||
Exchange price (in dollars per share) | $ 53.54 | $ 53.54 | |||||||
Shares related to the Notes included in the computation for diluted earnings per share (in shares) | 356,000 | 456,768 | 336,848 | 441,598 | |||||
Operating Partnership [Member] | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | |||||||||
Earnings Per Share [Line Items] | |||||||||
Principal amount of notes outstanding | $ 575,000,000 | $ 575,000,000 | $ 575,000,000 | ||||||
Interest rate | 3.125% | 3.125% | 3.125% | ||||||
Exchange price (in dollars per share) | $ 94.24 | $ 94.24 | |||||||
Shares related to the Notes included in the computation for diluted earnings per share (in shares) | 0 | 0 | 0 | 0 | |||||
Stock Options [Member] | |||||||||
Earnings Per Share [Line Items] | |||||||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 97,701 | 39,564 | 98,966.16 | 28,721 | |||||
Series A Units [Member] | |||||||||
Earnings Per Share [Line Items] | |||||||||
Exchangeable preferred operating partnership units settled in cash, minimum | $ 115,000,000 | $ 115,000,000 |
Store Acquisitions - Schedule o
Store Acquisitions - Schedule of Operating Properties Acquired (Detail) $ in Thousands | Apr. 20, 2016USD ($)store | Apr. 01, 2016USD ($)shares | Jun. 30, 2017store | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Dec. 31, 2014store |
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 5 | ||||||
Total | $ 60,197 | ||||||
Cash Paid | 42,149 | ||||||
Loan Assumed | 9,463 | ||||||
Non- controlling interests | $ 1,827 | ||||||
Net Liabilities/(Assets) Assumed | (52) | ||||||
Value of OP Units Issued | $ 6,810 | ||||||
Number of OP Units Issued | shares | 272,400 | ||||||
Real estate assets | $ 60,197 | ||||||
Florida Property 6/12/2017 [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 1 | ||||||
Total | 11,100 | ||||||
Cash Paid | 4,270 | ||||||
Loan Assumed | 0 | ||||||
Net Liabilities/(Assets) Assumed | 20 | ||||||
Value of OP Units Issued | $ 6,810 | ||||||
Number of OP Units Issued | shares | 272,400 | ||||||
Real estate assets | $ 11,100 | ||||||
Florida Property 4/25/2017 [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 1 | ||||||
Total | 7,377 | ||||||
Cash Paid | 7,400 | ||||||
Loan Assumed | 0 | ||||||
Net Liabilities/(Assets) Assumed | (23) | ||||||
Value of OP Units Issued | $ 0 | ||||||
Number of OP Units Issued | shares | 0 | ||||||
Real estate assets | $ 7,377 | ||||||
Pennsylvania Property 3/11/2017 [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 1 | ||||||
Total | 16,164 | ||||||
Cash Paid | 4,938 | ||||||
Loan Assumed | 9,463 | ||||||
Non- controlling interests | $ 1,827 | ||||||
Net Liabilities/(Assets) Assumed | (64) | ||||||
Value of OP Units Issued | $ 0 | ||||||
Number of OP Units Issued | shares | 0 | ||||||
Real estate assets | $ 16,164 | ||||||
Illinois Property 2/1/2017 [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 1 | ||||||
Total | 9,028 | ||||||
Cash Paid | 9,020 | ||||||
Loan Assumed | 0 | ||||||
Net Liabilities/(Assets) Assumed | 8 | ||||||
Value of OP Units Issued | $ 0 | ||||||
Number of OP Units Issued | shares | 0 | ||||||
Real estate assets | $ 9,028 | ||||||
Georgia Property 1/6/2017 [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of Stores | store | 1 | ||||||
Total | 16,528 | ||||||
Cash Paid | 16,521 | ||||||
Loan Assumed | 0 | ||||||
Net Liabilities/(Assets) Assumed | 7 | ||||||
Value of OP Units Issued | $ 0 | ||||||
Number of OP Units Issued | shares | 0 | ||||||
Real estate assets | $ 16,528 | ||||||
New Jersey And Virginia Five Stores Acquired In Two Thousand And Fourteen [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of stores acquired | store | 5 | ||||||
Increase in payments due to sellers | $ 1,544 | ||||||
Disposal Of Ohio And Indiana Stores, April 20, 2016 [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Number of stores sold | store | 7 | ||||||
Proceeds from sale of real estate held-for-investment | $ 17,555 | ||||||
Gain (loss) on disposition of assets | $ 11,265 | ||||||
Disposal Of Texas Store, April 1, 2016 [Member] | Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | |||||||
Property Acquisitions [Line Items] | |||||||
Partner capital units (in units) | shares | 85,452 | ||||||
Operating Partnership unit value | $ 7,689 | ||||||
Gain (loss) on disposition of assets | $ 93 |
Variable Interests - Schedule o
Variable Interests - Schedule of Assets and Liabilities and Maximum Exposure to Loss Related to Trusts (Detail) - Operating Partnership [Member] - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Unamortized debt issuance costs | $ (7,827,000) | $ (9,033,000) |
Net carrying amount of liability components | 614,173,000 | $ 610,314,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | ||
Maximum exposure to loss | ||
Difference | ||
Variable Interest Entity, Not Primary Beneficiary [Member] | Notes Payable to Trusts [Member] | ||
Variable Interest Entity [Line Items] | ||
Unamortized debt issuance costs | (2,207,000) | |
Net carrying amount of liability components | 117,383,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust I [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,083,000 | |
Maximum exposure to loss | 35,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust I [Member] | Notes Payable to Trusts [Member] | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 36,083,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust II [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,269,000 | |
Maximum exposure to loss | 41,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust II [Member] | Notes Payable to Trusts [Member] | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 42,269,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust III [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,238,000 | |
Maximum exposure to loss | 40,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Trust III [Member] | Notes Payable to Trusts [Member] | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 41,238,000 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Subtotal [Member] | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 3,590,000 | |
Maximum exposure to loss | 116,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Subtotal [Member] | Notes Payable to Trusts [Member] | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | $ 119,590,000 |
Variable Interests - Additional
Variable Interests - Additional Information (Detail) | Jun. 30, 2017joint_venturesubsidiary |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of wholly-owned unconsolidated subsidiaries | subsidiary | 3 |
Number of interests in consolidated VIE joint ventures | joint_venture | 0 |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet Classification and Fair Value of Entity's Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets [Member] | ||
Derivative [Line Items] | ||
Other assets | $ 23,510 | $ 23,844 |
Other Liabilities [Member] | ||
Derivative [Line Items] | ||
Other liabilities | $ (2,019) | $ (2,447) |
Derivatives - Schedule of Infor
Derivatives - Schedule of Information Relating to Gain (Loss) Recognized on Swap Agreements (Detail) - Cash Flow Hedging [Member] - Interest Rate Swap [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative [Line Items] | ||||
Swap agreements gain (loss) recognized in OCI | $ (8,693) | $ (23,655) | $ (5,687) | $ (58,616) |
Swap agreements gain (loss) reclassified from OCI - Interest expense | $ (2,594) | $ (4,861) | $ (5,924) | $ (9,314) |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands | Jun. 30, 2017USD ($)derivative |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated amount of unrealized gains or losses expected to be reclassified as interest expense in next fiscal year | $ 3,310 |
Number of derivative financial instruments | derivative | 32 |
Combined notional amount | $ 2,341,756 |
Credit risk derivative, fair value of derivatives in a net liability position | 1,846 |
Estimated termination value on settlement | $ 2,272 |
Exchangeable Senior Notes - Sch
Exchangeable Senior Notes - Schedule of Information about Total Carrying Amounts of Equity Components, Principal Amounts of Liability Components, Unamortized Discounts and Net Carrying Amounts for Notes (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Feb. 29, 2016 | Sep. 30, 2015 | Jun. 21, 2013 |
Debt Instrument [Line Items] | ||||||
Principal amount of liability components | $ 614,173 | $ 610,314 | ||||
Operating Partnership [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of equity components | 22,597 | 22,597 | ||||
Unamortized debt issuance costs | (7,827) | (9,033) | ||||
Net carrying amount of liability components | 614,173 | 610,314 | ||||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of equity components | 0 | 0 | ||||
Principal amount of liability components | 63,170 | 63,170 | $ 2,555 | $ 19,639 | ||
Unamortized discount - equity components | (797) | (1,187) | ||||
Unamortized cash discount - 2013 Notes | (187) | (281) | (72) | (716) | $ (3,750) | |
Unamortized debt issuance costs | $ (7) | $ (36) | $ (1,672) | |||
Operating Partnership [Member] | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of equity components | 22,597 | 22,597 | ||||
Principal amount of liability components | 575,000 | 575,000 | ||||
Unamortized discount - equity components | $ (15,186) | $ (17,355) | ||||
Unamortized debt issuance costs | $ (11,992) |
Exchangeable Senior Notes - Sum
Exchangeable Senior Notes - Summary of Amount of Interest Cost Recognized Relating to Contractual Interest Rates and Amortization of Discounts on Liability Components of Notes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Debt Disclosure [Abstract] | ||||
Contractual interest | $ 4,867 | $ 4,867 | $ 9,734 | $ 9,749 |
Amortization of discount | 1,290 | 1,240 | 2,559 | 2,473 |
Total interest expense recognized | $ 6,157 | $ 6,107 | $ 12,293 | $ 12,222 |
Exchangeable Senior Notes - S47
Exchangeable Senior Notes - Summary of Repurchase of Debt (Detail) - USD ($) $ in Thousands | Apr. 30, 2016 | Feb. 29, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 21, 2013 |
Debt Instrument [Line Items] | |||||
Exchangeable senior notes repurchased | $ 614,173 | $ 610,314 | |||
Operating Partnership [Member] | |||||
Debt Instrument [Line Items] | |||||
Related debt issuance costs | 7,827 | 9,033 | |||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount repurchased | $ 2,555 | $ 19,639 | |||
Extinguishment of liability component | (2,476) | (18,887) | |||
Reacquisition of equity component | 1,766 | 12,132 | |||
Total consideration paid for repurchase | 4,242 | 31,019 | |||
Exchangeable senior notes repurchased | 2,555 | 19,639 | 63,170 | 63,170 | |
Extinguishment of liability component | (2,476) | (18,887) | |||
Discount on exchangeable senior notes | (72) | (716) | $ (187) | $ (281) | $ (3,750) |
Related debt issuance costs | 7 | 36 | $ 1,672 | ||
Gain/(loss) on repurchase | $ 0 | $ 0 |
Exchangeable Senior Notes - Add
Exchangeable Senior Notes - Additional Information (Detail) | Jun. 21, 2013USD ($) | Apr. 30, 2016USD ($)shares | Feb. 29, 2016USD ($)shares | Sep. 30, 2015USD ($) | Jun. 30, 2017USD ($)d | Dec. 31, 2016USD ($) |
Par Value [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued for value of notes in excess of principal amount | shares | 18,031 | 130,909 | ||||
Value of notes in excess of principal amount | $ 1,686,000 | $ 11,380,000 | ||||
Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Effective interest rate on the liability component | 4.00% | |||||
Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes exchange, threshold percentage | 130.00% | |||||
Notes exchange, threshold trading days | d | 20 | |||||
Notes exchange, threshold consecutive trading days | 30 days | |||||
Effective interest rate on the liability component | 4.00% | |||||
Operating Partnership [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Related debt issuance costs | $ 7,827,000 | $ 9,033,000 | ||||
Operating Partnership [Member] | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of notes issued | $ 575,000,000 | |||||
Interest rate | 3.125% | 3.125% | ||||
Underwriting fee percentage | 2.00% | |||||
Amortization period | 5 years | |||||
Conversion ratio, number of shares per $1,000 principal amount, numerator | 10.61 | |||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | |||||
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest | 100.00% | |||||
Redemption price as percentage of principal amount of notes at request of debt holders and upon occurrence of designated event | 100.00% | |||||
Related debt issuance costs | $ 11,992,000 | |||||
Operating Partnership [Member] | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days of written notice to holders of notes required for redemption | 30 days | |||||
Operating Partnership [Member] | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days of written notice to holders of notes required for redemption | 60 days | |||||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of notes issued | $ 250,000,000 | |||||
Interest rate | 2.375% | 2.375% | ||||
Conversion ratio, number of shares per $1,000 principal amount, numerator | 18.68 | |||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | |||||
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest | 100.00% | |||||
Redemption price as percentage of principal amount of notes at request of debt holders and upon occurrence of designated event | 100.00% | |||||
Discount rate | 1.50% | |||||
Unamortized cash discount | $ 3,750,000 | 72,000 | 716,000 | $ 187,000 | $ 281,000 | |
Related debt issuance costs | $ 1,672,000 | 7,000 | 36,000 | |||
Amortization period | 5 years | |||||
Principal amount repurchased | $ 2,555,000 | $ 19,639,000 | ||||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days of written notice to holders of notes required for redemption | 30 days | |||||
Operating Partnership [Member] | Exchangeable Senior Notes 2.375% due 2033 (the 2013 Notes) [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Number of days of written notice to holders of notes required for redemption | 60 days |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - At the Market Equity Distribution Agreement [Member] | May 06, 2016USD ($)sales_agent | Jun. 30, 2017USD ($)shares | Jun. 30, 2017USD ($)shares |
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||
Aggregate offering price of common share | $ 400,000,000 | ||
Number of sales agents | sales_agent | 5 | ||
Shares, issued | shares | 0 | 0 | |
Value of stock available for issuance under ATM | $ 349,375,000 | $ 349,375,000 |
Noncontrolling Interest Repre50
Noncontrolling Interest Represented by Preferred Operating Partnership Units - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 04, 2016USD ($)shares | Jun. 15, 2016USD ($) | May 21, 2016USD ($)storeshares | Oct. 03, 2014USD ($)shares | Apr. 03, 2014USD ($)storeshares | Nov. 19, 2013store | Sep. 26, 2013USD ($)storeshares | Aug. 29, 2013store | Jun. 25, 2007USD ($)shares | Jun. 15, 2007storeshares | Dec. 31, 2014USD ($)storeshares | Jun. 30, 2017USD ($)sharesstore$ / shares | Jun. 30, 2016USD ($) | May 31, 2014USD ($)storeshares | Dec. 31, 2016USD ($)shares |
Noncontrolling Interest [Line Items] | |||||||||||||||
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units | $ 120,230 | $ 120,230 | |||||||||||||
Cash Paid | 42,149 | ||||||||||||||
Redemption of Operating Partnership units held by noncontrolling interests | $ 2,510 | $ 0 | |||||||||||||
Loan Assumed | $ 9,463 | ||||||||||||||
Number of stores acquired | store | 5 | ||||||||||||||
Number of OP units issued for store acquisition (in units) | shares | 272,400 | ||||||||||||||
Net Liabilities/(Assets) Assumed | $ (52) | ||||||||||||||
Value of OP Units Issued | $ 6,810 | ||||||||||||||
Series B Redeemable Preferred Units [Member] | Series B Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | ||||||||||||||
Fixed liquidation value | $ 41,902 | ||||||||||||||
Annual rate of return (as a percent) | 6.00% | ||||||||||||||
Series B Redeemable Preferred Units [Member] | Series B Units [Member] | Georgia, 1 Property Acquired 4/3/2014 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Preferred units issued as part of acquisition (in units) | shares | 333,360 | ||||||||||||||
Preferred units issued as part of acquisition | $ 8,334 | ||||||||||||||
Series C Convertible Redeemable Preferred Units [Member] | California, Properties Acquired December 2013 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 12 | ||||||||||||||
Ownership interests in five stores through joint ventures prior to the acquisition | 35.00% | ||||||||||||||
Number of stores in which ownership interest was held prior to acquisition of remaining properties | store | 5 | ||||||||||||||
Ownership interest in one store through joint ventures prior to the acquisition | 40.00% | ||||||||||||||
Number of stores in which ownership interest was held prior to acquisition | store | 1 | ||||||||||||||
Series C Convertible Redeemable Preferred Units [Member] | Series C Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units | $ 20,230 | ||||||||||||||
Note receivable interest rate | 5.00% | ||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 42.1 | ||||||||||||||
Fixed liquidation value | $ 29,639 | ||||||||||||||
Quarterly distribution per preferred OP unit payable above quarterly distribution for common OP Unit (in dollars per share) | $ / shares | $ 0.18 | ||||||||||||||
Number of months immediately preceding the fifth anniversary of issuance for which distribution is payable | 12 months | ||||||||||||||
Period from date of issuance after which preferred OP units will become redeemable at the option of the holder | 1 year | ||||||||||||||
Preferred OP units conversion ratio | shares | 0.9145 | ||||||||||||||
Note receivable maturity date | Dec. 15, 2024 | ||||||||||||||
Series D Redeemable Preferred Units [Member] | Series D Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | ||||||||||||||
Fixed liquidation value | $ 87,713 | ||||||||||||||
Series D Redeemable Preferred Units [Member] | D-1 Units[Member] | Minimum [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Annual rate of return (as a percent) | 3.50% | ||||||||||||||
Series D Redeemable Preferred Units [Member] | D-1 Units[Member] | Maximum [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Annual rate of return (as a percent) | 5.00% | ||||||||||||||
Operating Partnership [Member] | Illinois Property Acquired 5/21/2016 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 4 | ||||||||||||||
Operating Partnership [Member] | Series A Participating Redeemable Preferred Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 10 | ||||||||||||||
Operating Partnership [Member] | Series A Participating Redeemable Preferred Units [Member] | Series A Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Preferred units issued as part of acquisition (in units) | shares | 989,980 | ||||||||||||||
Fixed priority return on preferred OP units, amount | $ 115,000 | ||||||||||||||
Fixed priority return on preferred OP units, stated return rate | 5.00% | 2.25% | |||||||||||||
Fixed priority return on preferred OP units, liquidation value | $ 115,000 | ||||||||||||||
Operating Partnership [Member] | Series B Redeemable Preferred Units [Member] | Georgia, 1 Property Acquired 4/3/2014 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 1 | ||||||||||||||
Cash portion of payment for acquisition | $ 15,158 | ||||||||||||||
Operating Partnership [Member] | Series B Redeemable Preferred Units [Member] | California, 20 Properties Acquired 2013-September [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 1 | 19 | |||||||||||||
Cash portion of payment for acquisition | $ 100,876 | ||||||||||||||
Number of stores acquired as part of portfolio acquisition | store | 20 | ||||||||||||||
Loan Assumed | $ 98,960 | ||||||||||||||
Number of common units issued as part of acquisition (in units) | shares | 1,448,108 | ||||||||||||||
OP units issued as part of the acquisition | $ 62,341 | ||||||||||||||
Operating Partnership [Member] | Series B Redeemable Preferred Units [Member] | Series B Units [Member] | California, 20 Properties Acquired 2013-September [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Preferred units issued as part of acquisition (in units) | shares | 1,342,727 | ||||||||||||||
Preferred units issued as part of acquisition | $ 33,568 | ||||||||||||||
Operating Partnership [Member] | Series C Convertible Redeemable Preferred Units [Member] | California, Properties Acquired December 2013 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Cash portion of payment for acquisition | $ 45,722 | ||||||||||||||
Loan Assumed | $ 37,532 | ||||||||||||||
Number of stores acquired | store | 6 | ||||||||||||||
Operating Partnership [Member] | Series C Convertible Redeemable Preferred Units [Member] | Series C Units [Member] | California, Properties Acquired December 2013 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Preferred units issued as part of acquisition (in units) | shares | 704,016 | ||||||||||||||
Preferred units issued as part of acquisition | $ 30,960 | ||||||||||||||
Operating Partnership [Member] | Series D Redeemable Preferred Units [Member] | Self Storage Facility in Florida [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of stores acquired | store | 1 | ||||||||||||||
Cash portion of payment for acquisition | $ 5,621 | ||||||||||||||
Operating Partnership [Member] | Series D Redeemable Preferred Units [Member] | D-4 Preferred Units [Member] | Illinois Property Acquired 5/21/2016 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of OP units issued for store acquisition (in units) | shares | 486,244 | ||||||||||||||
Value of OP Units Issued | $ 12,156 | ||||||||||||||
Operating Partnership [Member] | Series D Redeemable Preferred Units [Member] | D-3 Units [Member] | Illinois Property Acquired 5/21/2016 [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Number of OP units issued for store acquisition (in units) | shares | 2,201,467 | ||||||||||||||
Value of OP Units Issued | $ 55,037 | ||||||||||||||
Operating Partnership [Member] | Series D Redeemable Preferred Units [Member] | Series D Units [Member] | Self Storage Facility in Florida [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Preferred units issued as part of acquisition (in units) | shares | 548,390 | ||||||||||||||
Preferred units issued as part of acquisition | $ 13,710 | ||||||||||||||
Operating Partnership Holders of A Units [Member] | Series A Participating Redeemable Preferred Units [Member] | |||||||||||||||
Noncontrolling Interest [Line Items] | |||||||||||||||
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units | $ 100,000 | ||||||||||||||
Note receivable interest rate | 4.85% | 2.13% | |||||||||||||
Maximum number of preferred OP units converted prior to the maturity date of the loan (in units) | shares | 114,500 | ||||||||||||||
A units redeemed | shares | 114,500 | ||||||||||||||
Redemption of Operating Partnership units held by noncontrolling interests | $ 4,794 | ||||||||||||||
Common shares issued in Preferred Unit redemption (in shares) | shares | 280,331 | ||||||||||||||
Additional units redeemed (in units) | shares | 0 |
Noncontrolling Interest in Op51
Noncontrolling Interest in Operating Partnership - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | |
Noncontrolling Interest [Line Items] | ||
Period used as a denomination to determine the average closing price of common stock | 10 days | |
OP units conversion basis | one-for-one basis | |
OP units conversion ratio | 1 | |
Ten day average closing stock price (in dollars per share) | $ / shares | $ 78.09 | $ 78.09 |
Consideration to be paid on redemption of common OP units | $ | $ 756 | $ 756 |
Operating Partnership [Member] | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest held by entity | 91.10% | 91.10% |
Ownership percentage in joint venture | 8.90% | 8.90% |
OP units outstanding (in units) | shares | 5,574,142 | 5,574,142 |
Consideration to be paid on redemption of common OP units | $ | $ 435,285 | $ 435,285 |
Number of OP units issued for remaining interest in joint venture (in units) | shares | 10,100 |
Other Noncontrolling Interests
Other Noncontrolling Interests - Additional Information (Detail) - Other [Member] | Jun. 30, 2017joint_venture |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | 2 |
Maximum [Member] | |
Noncontrolling Interest [Line Items] | |
Voting interests of third-party owners | 27.00% |
Equity in Earnings of Unconso53
Equity in Earnings of Unconsolidated Real Estate Ventures - Gain on Sale of Real Estate and Purchase of Joint Venture Partner's Interest - Additional Information (Detail) $ in Thousands | Feb. 02, 2016USD ($)store | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Real estate assets | $ 60,197 | ||
VRS [Member] | |||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Number of stores acquired | store | 6 | ||
Ownership interest percentage | 45.00% | ||
Extra Space Properties One Two Two LLC [Member] | |||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Number of stores acquired | store | 6 | ||
Number of transferred stores | store | 6 | ||
Net carrying amount of properties distributed | $ 17,261 | ||
Business combination, step acquisition, equity interest in acquiree, including subsequent acquisition, percentage | 100.00% | ||
Business combination, step acquisition, equity interest in acquiree, fair value | $ 44,184 | ||
Equity interest fair value remeasurement non-cash gain | $ 26,923 | ||
Prudential Real Estate and Affiliates [Member] | VRS [Member] | |||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 55.00% | ||
Prudential Real Estate and Affiliates [Member] | Extra Space Properties One Two Two LLC [Member] | |||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Business acquisition, percentage of voting interests acquired | 55.00% | ||
Business combination amount paid to acquire joint venture partner's interest | $ 53,940 | ||
Various States Properties Feb 2, 2016 [Member] | |||
Schedule Of Results Related To Equity Accounted Investees [Line Items] | |||
Real estate assets | $ 98,082 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information of Business Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Investment in unconsolidated real estate ventures | $ 79,294 | $ 79,294 | $ 79,570 | ||
Total assets | 7,037,463 | 7,037,463 | 7,091,446 | ||
Total revenues | 276,003 | $ 244,273 | 539,011 | $ 473,676 | |
Operating expenses, including depreciation and amortization | 139,596 | 133,971 | 278,401 | 269,746 | |
Income (loss) from operations | 136,407 | 110,302 | 260,610 | 203,930 | |
Gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate | (6,019) | 11,358 | (6,019) | 9,814 | |
Interest expense | (37,456) | (32,802) | (73,426) | (64,161) | |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (1,290) | (1,240) | (2,559) | (2,473) | |
Interest income | 826 | 1,625 | 1,928 | 3,339 | |
Interest income on note receivable from Preferred Operating Partnership unit holder | 659 | 1,212 | 1,872 | 2,425 | |
Equity in earnings of unconsolidated real estate ventures | 3,838 | 3,358 | 7,417 | 6,188 | |
Equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest | 0 | 0 | 0 | 26,923 | |
Income tax (expense) benefit | (2,867) | (3,773) | (5,991) | (6,538) | |
Net income (loss) | 94,098 | 90,040 | 183,832 | 179,447 | |
Depreciation and amortization expense | 46,632 | 43,950 | 96,064 | 86,847 | |
Acquisition of real estate assets | (72,651) | (435,298) | |||
Development and redevelopment of real estate assets | (12,274) | (14,400) | |||
Rental Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Investment in unconsolidated real estate ventures | 79,294 | 79,294 | 79,570 | ||
Total assets | 6,734,180 | 6,734,180 | 6,731,292 | ||
Total revenues | 240,796 | 211,791 | 472,289 | 411,279 | |
Operating expenses, including depreciation and amortization | 110,672 | 104,161 | 226,029 | 205,859 | |
Income (loss) from operations | 130,124 | 107,630 | 246,260 | 205,420 | |
Interest expense | (36,214) | (31,941) | (71,035) | (62,506) | |
Equity in earnings of unconsolidated real estate ventures | 3,838 | 3,358 | 7,417 | 6,188 | |
Income tax (expense) benefit | (462) | (445) | (925) | (1,290) | |
Net income (loss) | 97,286 | 78,602 | 181,717 | 147,812 | |
Depreciation and amortization expense | 43,377 | 41,731 | 92,089 | 82,317 | |
Tenant Reinsurance [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 33,331 | 33,331 | 44,524 | ||
Total revenues | 24,313 | 21,654 | 47,168 | 42,209 | |
Operating expenses, including depreciation and amortization | 3,804 | 3,941 | 7,724 | 8,252 | |
Income (loss) from operations | 20,509 | 17,713 | 39,444 | 33,957 | |
Income tax (expense) benefit | (3,866) | (3,185) | (7,129) | (5,848) | |
Net income (loss) | 16,643 | 14,528 | 32,315 | 28,109 | |
Property Management, Acquisition and Development [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 269,952 | 269,952 | $ 315,630 | ||
Total revenues | 10,894 | 10,828 | 19,554 | 20,188 | |
Operating expenses, including depreciation and amortization | 25,120 | 25,869 | 44,648 | 55,635 | |
Income (loss) from operations | (14,226) | (15,041) | (25,094) | (35,447) | |
Gain (loss) on real estate transactions, earnout from prior acquisition and impairment of real estate | (6,019) | 11,358 | (6,019) | 9,814 | |
Interest expense | (1,242) | (861) | (2,391) | (1,655) | |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (1,290) | (1,240) | (2,559) | (2,473) | |
Interest income | 826 | 1,625 | 1,928 | 3,339 | |
Interest income on note receivable from Preferred Operating Partnership unit holder | 659 | 1,212 | 1,872 | 2,425 | |
Equity in earnings of unconsolidated real estate ventures - gain on purchase of a joint venture partner's interest | 0 | 0 | 0 | (26,923) | |
Income tax (expense) benefit | 1,461 | (143) | 2,063 | 600 | |
Net income (loss) | (19,831) | (3,090) | (30,200) | 3,526 | |
Depreciation and amortization expense | 3,255 | 2,219 | 3,975 | 4,530 | |
Acquisition of real estate assets | (72,651) | (435,298) | |||
Development and redevelopment of real estate assets | $ (12,274) | $ (14,400) |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2017segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)store | |
Commitment to acquire retail space [Member] | |
Commitments And Contingencies [Line Items] | |
Number of real estate properties to be acquired | 3 |
Purchase price | $ | $ 166,631 |
Number of stores scheduled to be closed | 5 |
Commitment to acquire retail space [Member] | Construction in progress [Member] | |
Commitments And Contingencies [Line Items] | |
Number of real estate properties to be acquired | 12 |
Commitment to acquire real estate with joint venture partners [Member] | |
Commitments And Contingencies [Line Items] | |
Number of real estate properties to be acquired | 24 |
Purchase price | $ | $ 134,386 |
Number of stores scheduled to be closed | 11 |
Number of stores expected to be closed | 13 |