Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-32269 | |
Entity Registrant Name | EXTRA SPACE STORAGE INC. | |
Entity Central Index Key | 0001289490 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1076777 | |
Entity Address, Address Line One | 2795 East Cottonwood Parkway, SuiteĀ 300 | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84121 | |
City Area Code | 801 | |
Local Phone Number | 365-4600 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | EXR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,069,911 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Real estate assets, net | $ 7,673,724 | $ 7,696,864 |
Real estate assets - operating lease right-of-use assets | 261,304 | 264,643 |
Investments in unconsolidated real estate entities | 344,177 | 338,054 |
Cash and cash equivalents | 56,397 | 65,746 |
Restricted cash | 5,354 | 4,987 |
Other assets, net | 188,938 | 162,083 |
Total assets | 8,529,894 | 8,532,377 |
Liabilities, Noncontrolling Interests and Equity: | ||
Notes payable, net | 4,300,744 | 4,318,973 |
Exchangeable senior notes, net | 573,154 | 569,513 |
Revolving lines of credit | 207,000 | 158,000 |
Operating lease liabilities | 271,875 | 274,783 |
Cash distributions in unconsolidated real estate ventures | 46,100 | 45,264 |
Accounts payable and accrued expenses | 132,257 | 111,382 |
Other liabilities | 253,246 | 132,768 |
Total liabilities | 5,784,376 | 5,610,683 |
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, 129,069,555 and 129,534,407 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 1,291 | 1,295 |
Additional paid-in capital | 2,884,940 | 2,868,681 |
Accumulated other comprehensive loss | (119,256) | (28,966) |
Accumulated deficit | (391,285) | (301,049) |
Total Extra Space Storage Inc. stockholders' equity | 2,375,690 | 2,539,961 |
Noncontrolling interest represented by Preferred Operating Partnership units, net | 172,542 | 175,948 |
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests | 197,286 | 205,785 |
Total noncontrolling interests and equity | 2,745,518 | 2,921,694 |
Total liabilities, noncontrolling interests and equity | $ 8,529,894 | $ 8,532,377 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 129,069,555 | 129,534,407 |
Common stock, outstanding (in shares) | 129,069,555 | 129,534,407 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Property rental | $ 279,312 | $ 279,584 | $ 566,015 | $ 550,587 |
Tenant reinsurance | 35,078 | 31,701 | 68,691 | 61,498 |
Management fees and other income | 12,856 | 12,317 | 24,992 | 23,063 |
Total revenues | 327,246 | 323,602 | 659,698 | 635,148 |
Expenses: | ||||
Property operations | 89,040 | 80,870 | 179,337 | 159,635 |
Tenant reinsurance | 6,858 | 6,982 | 13,536 | 13,949 |
General and administrative | 25,337 | 23,351 | 48,348 | 46,029 |
Depreciation and amortization | 56,018 | 54,406 | 111,293 | 109,065 |
Total expenses | 177,253 | 165,609 | 352,514 | 328,678 |
Gain on real estate transactions | 0 | 1,205 | 0 | 1,205 |
Income from operations | 149,993 | 159,198 | 307,184 | 307,675 |
Interest expense | (85,397) | (94,808) | ||
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (1,233) | (1,185) | (2,442) | (2,347) |
Interest income | 1,669 | 1,718 | 3,343 | 3,106 |
Income before equity in earnings of unconsolidated real estate ventures and income tax expense | 109,390 | 112,283 | 222,688 | 213,626 |
Equity in earnings and dividend income from unconsolidated real estate entities | 5,044 | 3,121 | 10,087 | 5,751 |
Income tax expense | (3,177) | (2,715) | (5,356) | (4,528) |
Net income | 111,257 | 112,689 | 227,419 | 214,849 |
Net income allocated to Preferred Operating Partnership noncontrolling interests | (3,139) | (3,128) | (6,250) | (6,291) |
Net income allocated to Operating Partnership and other noncontrolling interests | (5,207) | (4,733) | (10,079) | (8,960) |
Net income attributable to common stockholders | $ 102,911 | $ 104,828 | $ 211,090 | $ 199,598 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.80 | $ 0.82 | $ 1.63 | $ 1.56 |
Diluted (in dollars per share) | $ 0.80 | $ 0.81 | $ 1.63 | $ 1.55 |
Weighted average number of shares | ||||
Basic (in shares) | 128,932,152 | 127,585,436 | 129,110,131 | 127,349,299 |
Diluted (in shares) | 129,082,468 | 135,654,761 | 129,285,675 | 135,166,456 |
Cash dividends paid per common share (in dollars per share) | $ 0.90 | $ 0.90 | $ 1.80 | $ 1.76 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 111,257 | $ 112,689 | $ 227,419 | $ 214,849 |
Other comprehensive income (loss): | ||||
Change in fair value of interest rate swaps | (5,728) | (41,302) | (94,972) | (65,295) |
Total comprehensive income | 105,529 | 71,387 | 132,447 | 149,554 |
Less: comprehensive income attributable to noncontrolling interests | 8,034 | 5,842 | 11,647 | 12,082 |
Comprehensive income attributable to common stockholders | $ 97,495 | $ 65,545 | $ 120,800 | $ 137,472 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Noncontrolling Interests and Equity - USD ($) $ in Thousands | Total | Noncontrolling Interest - Preferred Operating Partnership | Noncontrolling Interest - Operating Partnership | Noncontrolling Interest - Other | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance, beginning of period at Dec. 31, 2018 | $ 2,785,422 | $ 153,096 | $ 218,362 | $ 240 | $ 1,271 | $ 2,640,705 | $ 34,650 | $ (262,902) |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 127,103,750 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon the exercise of options | 1,757 | $ 3 | 1,754 | |||||
Issuance of common stock upon the exercise of options (in shares) | 169,021 | |||||||
Restricted stock grants issued (in shares) | 35,022 | |||||||
Restricted stock grants cancelled (in shares) | (1,244) | |||||||
Compensation expense related to stock-based awards | 2,954 | 2,954 | ||||||
Redemption of Operating Partnership units for stock | (3,310) | 3,310 | ||||||
Redemption of Operating Partnership units (in shares) | 85,501 | |||||||
Issuance of Preferred D Units in the Operating Partnership in conjunction with acquisitions | 23,447 | 23,447 | ||||||
Net income | 102,160 | 3,164 | 4,235 | (9) | 94,770 | |||
Other comprehensive loss | (23,993) | (147) | (1,003) | (22,843) | ||||
Distributions to Operating Partnership units held by noncontrolling interests | (8,412) | (3,296) | (5,116) | |||||
Dividends paid on common stock | (109,523) | (109,523) | ||||||
Balance, end of period at Mar. 31, 2019 | 2,773,812 | 176,264 | 213,168 | 231 | $ 1,274 | 2,648,723 | 11,807 | (277,655) |
Balance, end of period (in shares) at Mar. 31, 2019 | 127,392,050 | |||||||
Balance, beginning of period at Dec. 31, 2018 | 2,785,422 | 153,096 | 218,362 | 240 | $ 1,271 | 2,640,705 | 34,650 | (262,902) |
Balance, beginning of period (in shares) at Dec. 31, 2018 | 127,103,750 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 214,849 | |||||||
Balance, end of period at Jun. 30, 2019 | 2,828,811 | 176,108 | 210,235 | 259 | $ 1,285 | 2,756,799 | (27,476) | (288,399) |
Balance, end of period (in shares) at Jun. 30, 2019 | 128,513,095 | |||||||
Balance, beginning of period at Mar. 31, 2019 | 2,773,812 | 176,264 | 213,168 | 231 | $ 1,274 | 2,648,723 | 11,807 | (277,655) |
Balance, beginning of period (in shares) at Mar. 31, 2019 | 127,392,050 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon the exercise of options | 468 | $ 0 | 468 | |||||
Issuance of common stock upon the exercise of options (in shares) | 17,042 | |||||||
Restricted stock grants issued | 2 | $ 2 | ||||||
Restricted stock grants issued (in shares) | 53,789 | |||||||
Restricted stock grants cancelled (in shares) | (4,786) | |||||||
Issuance of common stock, net of offering costs (in shares) | 930,000 | |||||||
Issuance of common stock, net of offering costs | 98,796 | $ 9 | 98,787 | |||||
Compensation expense related to stock-based awards | 3,998 | 3,998 | ||||||
Redemption of Operating Partnership units for stock | (4,823) | 4,823 | ||||||
Redemption of Operating Partnership units (in shares) | 125,000 | |||||||
Issuance of Preferred D Units in the Operating Partnership in conjunction with acquisitions | 4,575 | 4,575 | ||||||
Noncontrolling interest in consolidated joint venture | 50 | 50 | ||||||
Conversion of Preferred C Units in the Operating Partnership for Common Operating Partnership Units | (4,374) | 4,374 | ||||||
Net income | 112,689 | 3,129 | 4,754 | (22) | 104,828 | |||
Other comprehensive loss | (41,302) | (254) | (1,765) | (39,283) | ||||
Distributions to Operating Partnership units held by noncontrolling interests | (8,705) | (3,232) | (5,473) | |||||
Dividends paid on common stock | (115,572) | (115,572) | ||||||
Balance, end of period at Jun. 30, 2019 | 2,828,811 | 176,108 | 210,235 | 259 | $ 1,285 | 2,756,799 | (27,476) | (288,399) |
Balance, end of period (in shares) at Jun. 30, 2019 | 128,513,095 | |||||||
Balance, beginning of period at Dec. 31, 2019 | $ 2,921,694 | 175,948 | 205,419 | 366 | $ 1,295 | 2,868,681 | (28,966) | (301,049) |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 129,534,407 | 129,534,407 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon the exercise of options | $ 944 | $ 1 | 943 | |||||
Issuance of common stock upon the exercise of options (in shares) | 77,400 | |||||||
Issuance of common stock in connection with share based compensation | 2,980 | $ 1 | 2,979 | |||||
Issuance of common stock in connection with share based compensation (in shares) | 73,602 | |||||||
Restricted stock grants cancelled | 0 | |||||||
Restricted stock grants cancelled (in shares) | (1,767) | |||||||
Buyback of common stock, net of offering costs | (52,204) | $ (7) | (52,197) | |||||
Buyback of common stock, net of offering costs (in shares) | (653,597) | |||||||
Redemption of Operating Partnership units for stock | 0 | (330) | 330 | |||||
Redemption of Operating Partnership units (in shares) | 8,862 | |||||||
Net income | 116,162 | 3,112 | 4,877 | (6) | 108,179 | |||
Other comprehensive loss | (89,244) | (563) | (3,807) | (84,874) | ||||
Distributions to Operating Partnership units held by noncontrolling interests | (8,505) | (3,178) | (5,327) | |||||
Dividends paid on common stock | (117,197) | (117,197) | ||||||
Balance, end of period at Mar. 31, 2020 | 2,774,630 | 175,319 | 200,832 | 360 | $ 1,290 | 2,872,933 | (113,840) | (362,264) |
Balance, end of period (in shares) at Mar. 31, 2020 | 129,038,907 | |||||||
Balance, beginning of period at Dec. 31, 2019 | $ 2,921,694 | 175,948 | 205,419 | 366 | $ 1,295 | 2,868,681 | (28,966) | (301,049) |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 129,534,407 | 129,534,407 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Buyback of common stock, net of offering costs (in shares) | (826,197) | |||||||
Net income | $ 227,419 | |||||||
Balance, end of period at Jun. 30, 2020 | $ 2,745,518 | 172,542 | 196,867 | 419 | $ 1,291 | 2,884,940 | (119,256) | (391,285) |
Balance, end of period (in shares) at Jun. 30, 2020 | 129,069,555 | 129,069,555 | ||||||
Balance, beginning of period at Mar. 31, 2020 | $ 2,774,630 | 175,319 | 200,832 | 360 | $ 1,290 | 2,872,933 | (113,840) | (362,264) |
Balance, beginning of period (in shares) at Mar. 31, 2020 | 129,038,907 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of common stock upon the exercise of options | 726 | $ 0 | 726 | |||||
Issuance of common stock upon the exercise of options (in shares) | 13,610 | |||||||
Issuance of common stock in connection with share based compensation | 4,884 | $ 1 | 4,883 | |||||
Issuance of common stock in connection with share based compensation (in shares) | 60,032 | |||||||
Restricted stock grants cancelled | 0 | |||||||
Restricted stock grants cancelled (in shares) | (889) | |||||||
Buyback of common stock, net of offering costs | (15,615) | $ (1) | (15,614) | |||||
Buyback of common stock, net of offering costs (in shares) | (172,600) | |||||||
Redemption of Operating Partnership units for stock | 0 | (3,675) | $ 1 | 3,674 | ||||
Redemption of Operating Partnership units (in shares) | 100,000 | |||||||
Redemption of Preferred D Units in the Operating Partnership for Stock (in shares) | 30,495 | |||||||
Noncontrolling interest in consolidated joint venture | 68 | 68 | ||||||
Conversion of Preferred C Units in the Operating Partnership for Common Operating Partnership Units | (2,724) | 2,724 | ||||||
Net income | 111,257 | 3,139 | 5,216 | (9) | 102,911 | |||
Other comprehensive loss | (5,728) | (41) | (271) | (5,416) | ||||
Distributions to Operating Partnership units held by noncontrolling interests | (8,386) | (3,151) | (5,235) | |||||
Dividends paid on common stock | (116,318) | (116,318) | ||||||
Balance, end of period at Jun. 30, 2020 | $ 2,745,518 | $ 172,542 | $ 196,867 | $ 419 | $ 1,291 | $ 2,884,940 | $ (119,256) | $ (391,285) |
Balance, end of period (in shares) at Jun. 30, 2020 | 129,069,555 | 129,069,555 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Noncontrolling Interests and Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid on common stock (in dollars per share) | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.86 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 227,419 | $ 214,849 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 111,293 | 109,065 |
Amortization of deferred financing costs | 4,946 | 6,006 |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | 2,442 | 2,347 |
Non-cash lease expense | 430 | 0 |
Compensation expense related to stock-based awards | 7,864 | 6,952 |
Gain on real estate transactions | 0 | (1,205) |
Distributions from unconsolidated real estate ventures in excess of earnings | 4,254 | 3,334 |
Changes in operating assets and liabilities: | ||
Other assets | (10,185) | 1,890 |
Accounts payable and accrued expenses | 19,963 | 21,632 |
Other liabilities | 23,647 | (1,463) |
Net cash provided by operating activities | 392,073 | 363,407 |
Cash flows from investing activities: | ||
Acquisition of real estate assets | (45,246) | (248,808) |
Development and redevelopment of real estate assets | (29,991) | (20,891) |
Proceeds from sale of real estate assets | 0 | 11,254 |
Investment in unconsolidated real estate entities | (9,541) | (31,344) |
Return of investment in unconsolidated real estate ventures | 0 | 3,982 |
Issuance of notes receivable | (24,325) | (152,599) |
Purchase of equipment and fixtures | (2,765) | (2,023) |
Net cash used in investing activities | (111,868) | (440,429) |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock, net of offering costs | 0 | 98,796 |
Proceeds from notes payable and revolving lines of credit | 594,000 | 757,000 |
Principal payments on notes payable and revolving lines of credit | (566,689) | (524,370) |
Principal payments on notes payable to trusts | 0 | (30,928) |
Deferred financing costs | (12) | (587) |
Net proceeds from exercise of stock options | 1,670 | 2,227 |
Repurchase of common stock | (67,819) | 0 |
Contributions from noncontrolling interests | 68 | 50 |
Dividends paid on common stock | (233,515) | (225,095) |
Distributions to noncontrolling interests | (16,890) | (17,117) |
Net cash provided by (used in) financing activities | (289,187) | 59,976 |
Net decrease in cash, cash equivalents, and restricted cash | (8,982) | (17,046) |
Cash, cash equivalents, and restricted cash, beginning of the period | 70,733 | 72,690 |
Cash, cash equivalents, and restricted cash, end of the period | 61,751 | 55,644 |
Supplemental schedule of cash flow information | ||
Interest paid | 81,950 | 88,455 |
Income taxes paid | 1,792 | 4,095 |
Redemption of Operating Partnership units held by noncontrolling interests for common stock | ||
Noncontrolling interests in Operating Partnership | (4,005) | (8,133) |
Common stock and paid-in capital | 4,005 | 8,133 |
Establishment of operating lease right of use assets and lease liabilities | ||
Real estate assets - operating lease right-of-use assets | 6,779 | 225,017 |
Operating lease liabilities | (6,779) | (234,374) |
Accounts payable and accrued expenses | 0 | 9,357 |
Acquisitions of real estate assets | ||
Real estate assets, net | 0 | 19,937 |
Notes payable assumed | 0 | (17,157) |
Investment in unconsolidated real estate ventures | 0 | (2,780) |
Accrued construction costs and capital expenditures | ||
Acquisition of real estate assets | 912 | 1,368 |
Accounts payable and accrued expenses | (912) | (1,368) |
Redemption of Preferred Operating Partnership units for common stock | ||
Noncontrolling interests in Operating Partnership | (2,724) | 0 |
Common stock and paid-in capital | 2,724 | 0 |
Establishment of finance lease assets and lease liabilities | ||
Real estate assets, net | 8,514 | 0 |
Other liabilities | (8,514) | 0 |
Preferred Operating Partnership Units [Abstract] | ||
Conversion Of Preferred Operating Units To Common Units | 0 | (4,374) |
Contribution of Preferred OP Units to unconsolidated real estate venture | ||
Contribution of Preferred OP Units to unconsolidated real estate venture | ||
Investments in unconsolidated real estate ventures | 0 | (28,022) |
Value of Preferred Operating Partnership units issued | $ 0 | $ 28,022 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION Extra Space Storage Inc. (the āCompanyā) is a fully integrated, self-administered and self-managed real estate investment trust (āREITā), 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 was formed to continue the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. The Companyās interest in its stores is held through its operating partnership, Extra Space Storage LP (the āOperating Partnershipā), which was formed on May 5, 2004. The Companyās 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 invests in stores by acquiring wholly-owned stores or by acquiring an equity interest in real estate entities. At June 30, 2020, the Company had direct and indirect equity interests in 1,178 stores. In addition, the Company managed 700 stores for third parties, bringing the total number of stores which it owns and/or manages to 1,878. These stores are located in 40 states, Washington, D.C. and Puerto Rico. The Company also offers tenant reinsurance at its owned and managed stores that insures the value of goods in the storage units. |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2020 | |
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 (āGAAPā) 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, 2020 are not necessarily indicative of results that may be expected for the year ending December 31, 2020. The condensed consolidated balance sheet as of December 31, 2019 has been derived from the Companyās 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 Companyās Annual Report on Form 10-K for the year ended December 31, 2019, as filed with the Securities and Exchange Commission. Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which clarified that receivables arising from operating leases are within the scope of the leasing standard (ASU 2016-02), and not within the scope of ASU 2016-13. This new standard became effective for the Company on January 1, 2020. The adoption of this standard by the Company did not have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
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 counterpartyās 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 FASBās 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, 2020, the Company 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 has determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. The table below presents the Companyās assets and liabilities measured at fair value on a recurring basis as of June 30, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description 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 $ ā $ ā $ ā Other liabilities - Cash flow hedge swap agreements $ ā $ 119,658 $ ā 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, 2020 or December 31, 2019. 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 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, 2020, the Company had one parcel of land classified as held for sale which is included in real estate assets, net. The estimated fair values less selling costs for these assets is greater than the carrying values of the assets, and therefore no loss has been recorded. The Company assesses annually whether there are any indicators that the value of the Companyās 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 managementās 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 Companyās 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 Companyās historical experience with turnover in its stores. Any 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 are capitalized as part of the purchase price. 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, 2020 and December 31, 2019 approximate fair value. Restricted cash is comprised of escrowed funds deposited with financial institutions located throughout the United States relating to earnest money deposits on potential acquisitions, real estate taxes, loan collateral, operating reserves, insurance and capital expenditures. The fair values of the Companyās notes receivable from Preferred and Common Operating Partnership unit holders, 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 Companyās fixed-rate notes payable 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 Companyās exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party. The fair values of the Companyās fixed-rate assets and liabilities were as follows for the periods indicated: June 30, 2020 December 31, 2019 Fair Carrying Fair Carrying Notes receivable from Preferred and Common Operating Partnership unit holders $ 119,976 $ 118,524 $ 116,184 $ 118,524 Fixed rate notes payable $ 3,613,096 $ 3,454,701 $ 3,511,151 $ 3,417,928 Exchangeable senior notes $ 620,281 $ 575,000 $ 673,831 $ 575,000 |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2020 | |
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 (āSeries A Unitsā), Series B Redeemable Preferred Units (āSeries B Unitsā), Series D Redeemable Preferred Units (āSeries D Unitsā and, together with the Series A Units and Series B Units, the āPreferred OP Unitsā) and common Operating Partnership units (āOP Unitsā)) 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 (i.e. those that reduce earnings per common share) are included. For the three and six months ended June 30, 2020, and 2019, there were no anti-dilutive options. 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, 2020 and 2019 was $92.95 and $105.06, respectively. The average share price for the six months ended June 30, 2020 and 2019 was $98.49 and $100.63, 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, 2020 2019 2020 2019 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Common OP Units 5,876,356 ā 5,898,029 ā Series A Units (Variable Only) 875,480 ā 875,480 ā Series B Units 450,803 398,840 425,446 416,398 Series D Units 1,282,322 1,109,048 1,214,732 1,096,259 8,484,961 1,507,888 8,413,687 1,512,657 The Operating Partnership had $575,000 of its 3.125% Exchangeable Senior Notes due 2035 (the ā2015 Notesā) issued and outstanding as of June 30, 2020. The 2015 Notes could potentially have a dilutive impact on the Companyās earnings per share calculations. The 2015 Notes are exchangeable by holders into shares of the Companyās common stock under certain circumstances per the terms of the indenture governing the 2015 Notes. The exchange price of the 2015 Notes was $91.16 per share as of June 30, 2020, 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 2015 Notes in cash and/or common stock, Accounting Standards Codification (āASCā) 260, āEarnings per Share,ā requires an assumption that shares would be used to pay the exchange obligation in excess of the accreted principal amount, and requires that those shares be included in the Companyās calculation of weighted average common shares outstanding for the diluted earnings per share computation. For the three and six months ended June 30, 2020 and 2019, 121,283 and 757,811 shares, respectively, related to the 2015 Notes were included in the computation for diluted earnings per share. 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 $101,700 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 $101,700 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 $101,700 amount. The computation of earnings per common share is as follows for the periods presented: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to common stockholders $ 102,911 $ 104,828 $ 211,090 $ 199,598 Earnings and dividends allocated to participating securities (173) (176) (336) (343) Earnings for basic computations 102,738 104,652 210,754 199,255 Earnings and dividends allocated to participating securities ā 176 ā ā Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units ā 6,010 ā 11,439 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) ā (572) ā (1,144) Net income for diluted computations $ 102,738 $ 110,266 $ 210,754 $ 209,550 Weighted average common shares outstanding: Average number of common shares outstanding - basic 128,932,152 127,585,436 129,110,131 127,349,299 OP Units ā 6,085,976 ā 6,023,822 Series A Units ā 875,480 ā 875,480 Unvested restricted stock awards included for treasury stock method ā 218,686 ā ā Shares related to exchangeable senior notes and dilutive stock options 150,316 889,183 175,544 917,855 Average number of common shares outstanding - diluted 129,082,468 135,654,761 129,285,675 135,166,456 Earnings per common share Basic $ 0.80 $ 0.82 $ 1.63 $ 1.56 Diluted $ 0.80 $ 0.81 $ 1.63 $ 1.55 |
Store Acquisitions
Store Acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Store Acquisitions | STORE ACQUISITIONS The following table shows the Companyās acquisitions of stores for the three and six months ended June 30, 2020 and 2019. The table excludes purchases of raw land and improvements made to existing assets. All acquisitions are considered asset acquisitions under ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ." Consideration Paid Total Quarter Number of Stores Total Cash Paid Loan Assumed Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Real estate assets Q2 2020 ā $ ā $ ā $ ā $ ā $ ā $ ā Q1 2020 2 19,399 19,354 ā ā 45 19,399 2 $ 19,399 $ 19,354 $ ā $ ā $ 45 $ 19,399 Q2 2019 1 $ 8,424 $ 8,424 $ ā $ ā $ ā $ 8,424 Q1 2019 14 (1) 223,740 202,890 17,157 2,780 913 223,740 15 $ 232,164 $ 211,314 $ 17,157 $ 2,780 $ 913 $ 232,164 (1) Store acquisitions during the three months ended March 31, 2019 include the acquisition of 12 stores previously held in joint ventures where the Company held a noncontrolling interest. The Company purchased its partners' remaining equity interests in the joint ventures, and the properties owned by the joint ventures became wholly owned by the Company. No gain or loss was recognized as a result of these acquisitions. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Ventures | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Real Estate Ventures | INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's interest in preferred stock of SmartStop Self Storage REIT, Inc. ("SmartStop") and the Company's noncontrolling interest in real estate joint ventures that own stores. The Company accounts for its investment in SmartStop preferred stock, which does not have a readily determinable fair value, at the transaction price less impairment, if any. The Company accounts for its investments in joint ventures using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for cash contributions, distributions and net equity in income or loss, which is allocated in accordance with the provisions of the applicable partnership or joint venture agreement. In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash or profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash or profits than its equity interest. The Company separately reports investments with net equity less than zero in cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company's investment in and share of income from these joint ventures. This is generally the result of financing distributions, capital events or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization while distributions do not. During the six months ended June 30, 2020, the Company contributed a total of $9,541 to its joint ventures for the purchase of one operating store and three stores acquired at the issuance of certificate of occupancy. Net investments in unconsolidated real estate ventures and cash distributions in unconsolidated real estate ventures consist of the following: Number of Stores Equity Ownership % Excess Profit % (1) June 30, December 31, 2020 2019 PR EXR Self Storage, LLC 5 25% 40% $ 58,921 $ 59,391 WICNN JV LLC 10 10% 25% 36,291 36,552 VRS Self Storage, LLC 16 45% 54% 17,103 17,639 ESS-NYFL JV LP 11 16% 24% 12,470 13,320 GFN JV, LLC 7 10% 30% 18,563 12,168 PRISA Self Storage LLC 85 4% 4% 8,925 9,133 Alan Jathoo JV LLC 9 10% 10% 7,870 7,977 Storage Portfolio III JV LLC 5 10% 30% 5,799 3,995 ESS Bristol Investments LLC 8 10% 28% 2,855 3,046 Extra Space Northern Properties Six LLC 10 10% 35% (2,314) (2,091) Storage Portfolio II JV LLC 36 10% 30% (5,089) (4,827) Storage Portfolio I LLC 24 34% 49% (38,698) (38,345) Other minority owned stores 19 10-50% 19-50% 25,381 24,832 SmartStop Self Storage REIT, Inc. Preferred Stock (2) n/a n/a n/a 150,000 150,000 Net Investments in and Cash distributions in unconsolidated real estate entities 245 $ 298,077 $ 292,790 (1) Includes pro-rata equity ownership share and promoted interest. (2) In October 2019, the Company invested $150,000 in shares of newly issued convertible preferred stock of SmartStop,with an additional commitment to purchase up to $50,000 of the preferred shares over the 12 months after the original purchase. The dividend rate for the preferred shares is 6.25% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations. |
Variable Interests
Variable Interests | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interests | VARIABLE INTERESTS The Operating Partnership had three wholly-owned unconsolidated subsidiaries (āTrust,ā āTrust IIā and āTrust III,ā together, the āTrustsā) that had issued trust preferred securities to third parties and common securities to the Operating Partnership during 2005. The proceeds from the sale of the preferred and common securities were loaned in the form of notes to the Operating Partnership. The Trusts were variable interest entities ("VIEs") because the holders of the equity investment at risk (the trust preferred securities) did not have the power to direct the activities of the entities that most significantly affect the entitiesā economic performance because of their lack of voting or similar rights. Because the Operating Partnershipās investment in the Trustsā common securities was financed directly by the Trusts as a result of its loan of the proceeds to the Operating Partnership, that investment was not considered an equity investment at risk. The Operating Partnershipās investment in the Trusts was 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 was not the primary beneficiary of the Trusts, they were not consolidated. A debt obligation was recorded in the form of notes for the proceeds as discussed above, which were owed to the Trusts. The Company had also included its investment in the Trustsā common securities in other assets on the condensed consolidated balance sheets. During the year ended December 31, 2018, the Company repaid a total principal amount of $88,662, representing all of the notes payable to Trust III, all of the notes payable to Trust II, and all but $30,928 of the notes payable to Trust. The Trusts used the proceeds from these repayments to redeem their preferred and common securities. In January 2019, the Company repaid the remaining balance of $30,928 of notes payable to Trust. During the time they were outstanding, the Company did not provide financing or other support during the periods presented to the Trusts that it was not previously contractually obligated to provide. The Companyās maximum exposure to loss as a result of its involvement with the Trusts was equal to the total amount of the notes discussed above less the amounts of the Companyās investments in the Trustsā common securities. The net amount was equal to the notes payable that the Trusts owed to third parties for their investments in the Trustsā preferred securities. The Company had no consolidated VIEs during the three and six months ended June 30, 2020. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
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 Companyās derivative financial instruments are used to manage differences in the amount, timing and duration of the Companyās known or expected cash receipts and its known or expected cash payments principally related to the Companyās investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Companyās 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 (āOCIā) 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, 2020 and 2019, 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 $35,790 will be reclassified and increase interest expense. The Company held 25 derivative financial instruments which had a total combined notional amount of $2,391,806 as of June 30, 2020. Fair Values of Derivative Instruments The table below presents the fair value of the Companyās derivative financial instruments as well as their classification on the condensed consolidated balance sheets: Asset / Liability Derivatives June 30, 2020 December 31, 2019 Derivatives designated as hedging instruments: Fair Value Other assets $ ā $ 6,214 Other liabilities $ 119,658 $ 31,400 Effect of Derivative Instruments The table below presents the effect of the Companyās 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 2020 2019 2020 2019 Swap Agreements $ (13,350) $ (36,294) Interest expense $ (7,639) $ 4,338 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 2020 2019 2020 2019 Swap Agreements $ (103,060) $ (55,870) Interest expense $ (8,202) $ 8,799 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 Companyās 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, 2020, 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 $123,251. As of June 30, 2020, the Company had not posted any collateral related to these agreements. If the Company had breached any of these provisions as of June 30, 2020, it could have been required to cash settle its obligations under the agreements at their termination value of $123,251, including accrued interest. |
Exchangeable Senior Notes
Exchangeable Senior Notes | 6 Months Ended |
Jun. 30, 2020 | |
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 Companyās common stock, or a combination of cash and shares of the Companyās common stock, at the Companyās option. The exchange rate of the 2015 Notes as of June 30, 2020 was approximately 10.97 shares of the Companyās 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 Companyās 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 āEvents of Default,ā as defined in the indenture governing the 2015 Notes, which may result in the accelerated maturity of the 2015 Notes. Additionally, 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 Companyās 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, 2020. 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 issuerās economic interest cost. The Company therefore accounts for the liability and equity components of the 2015 Notes separately. The equity components are included in paid-in capital in stockholdersā 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 amortized as interest expense over the remaining period of the debt through its first redemption date of October 1, 2020. The effective interest rate on the liability components of 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 Companyās 2015 Notes, including the total carrying amount of the equity component, the principal amount of the liability component, the unamortized discount and the net carrying amount was as follows for the periods indicated: June 30, 2020 December 31, 2019 Carrying amount of equity component $ 22,597 $ 22,597 Principal amount of liability component $ 575,000 $ 575,000 Unamortized discount - equity component (1,233) (3,675) Unamortized debt issuance costs (613) (1,812) Net carrying amount of liability component $ 573,154 $ 569,513 The amount of interest cost recognized relating to the contractual interest rate and the amortization of the discount on the liability component of the Notes were as follows for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Contractual interest $ 4,492 $ 4,492 $ 8,984 $ 8,984 Amortization of discount 1,233 1,185 2,442 2,347 Total interest expense recognized $ 5,725 $ 5,677 $ 11,426 $ 11,331 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERSā EQUITY On May 15, 2019, the Company filed its $500,000 "at the market" equity program with the Securities and Exchange Commission using a shelf registration statement on Form S-3, and entered into separate equity distribution agreements with nine sales agents. During the six months ended June 30, 2020, the Company sold no shares of common stock under its "at the market" equity program and had $298,621 available for issuance under the equity distribution agreements. |
Noncontrolling Interest Represe
Noncontrolling Interest Represented by Preferred Operating Partnership Units | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
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 companyās 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 Partnershipās preferred units and classifies the noncontrolling interest represented by such preferred units as stockholdersā 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. At June 30, 2020 and December 31, 2019, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company's condensed consolidated balance sheets. The partnership agreement of the Operating Partnership (as amended, the "Partnership Agreement") provides for the designation and issuance of the OP Units. As of June 30, 2020 and December 31, 2019, noncontrolling interests in Preferred OP Units were presented net of notes receivable from Preferred OP Unit holders of $100,000 as more fully described below. Series A Participating Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series A Units were issued in June 2007. Series A Units in the amount of $101,700 bear a fixed priority return of 2.3% and originally had 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 Companyās option, in cash or shares of its common stock. As a result of the redemption of 114,500 Series A Units in October 2014, the remaining fixed liquidation value was reduced to $101,700, which represents 875,480 Series A Units. On June 25, 2007, the Operating Partnership loaned the holder of the Series A Units $100,000. The loan bears interest at 2.1%. The loan is secured by the borrowerās Series A Units. No future redemption of Series A Units can be made unless the loan secured by the Series A Units is also repaid. 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 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 Series B Units were issued in 2013 and 2014 and have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902, which represents 1,676,087 Series B Units. 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 Companyās option in cash or shares of its common stock. Series C Convertible Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units ranked 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 Series C Units were issued in 2013 and 2014 and had a liquidation value of $42.10 per unit. The Series C Units became redeemable at the option of the holder one year from the date of issuance, which redemption obligation could be satisfied at the Companyās option in cash or shares of its common stock. The Series C Units were 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 expired 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 loan receivable, which was collateralized by the Series C Units, bears interest at 5.0% per annum and matures on December 15, 2024. The Series C Units were shown on the balance sheet net of the loan balance because the borrower under the loan receivable was also the holder of the Series C Units. On December 1, 2018, certain holders of the Series C Units converted their Series C Units into OP Units, with a total of 407,996 Series C Units being converted into a total of 373,113 OP Units. On April 25, 2019, the remaining 296,020 Series C Units were converted into 270,709 OP Units. The remaining outstanding balance of the loan receivable of $18,524 is shown as a reduction of the noncontrolling interests related to the OP Units as of December 31, 2019 and June 30, 2020. See footnote 12 for further discussion of noncontrolling interests. Series D Redeemable Preferred Units 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 been issued at various times from 2014 to 2019. During the six months ended June 30, 2019, the Operating Partnership issued 1,120,924 Series D Units valued at $28,022 in conjunction with joint venture acquisitions. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $117,362, which represents 4,694,485 Series D Units. Holders of the Series D Units receive distributions at an annual rate between 3.0% and 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 Companyās option in cash or shares of its common stock. In addition, certain of the Series D Units are exchangeable for 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 Series D Unit, divided by the value of a share of common stock as of the exchange date. Noncontrolling Interest in Operating Partnership The Companyās interest in its stores is held through the Operating Partnership. Between its general partner and limited partner interests, the Company held a 93.9% ownership interest in the Operating Partnership as of June 30, 2020. The remaining ownership interests in the Operating Partnership (including Preferred OP Units) of 6.1% are held by certain former owners of assets acquired by the Operating Partnership. As of June 30, 2020 and December 31, 2019, the noncontrolling interests in the Operating Partnership are shown on the balance sheet net of notes receivable of $18,524 because the borrowers under the loan receivable are also holders of OP Units (Note 11). This loan receivable bears interest at 5.0% per annum and matures on December 15, 2024. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company's option in cash, based upon the fair market value of an equivalent number of shares of the Companyās common stock (based on the ten-day average trading price) at the time of the redemption, or shares of the Company's common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement. As of June 30, 2020, the ten-day average closing price of the Company's common stock was $92.75 and there were 5,815,916 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on June 30, 2020 and the Company elected to pay the OP Unit holders cash, the Company would have paid $539,426 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Six Months Ended June 30, 2020 2019 OP Units redeemed for common stock 108,862 210,501 OP Units issued upon redemption of Series C Units ā 270,709 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 companyās 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 stockholdersā 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 |
Noncontrolling Interest in Oper
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests | 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 companyās 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 Partnershipās preferred units and classifies the noncontrolling interest represented by such preferred units as stockholdersā 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. At June 30, 2020 and December 31, 2019, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company's condensed consolidated balance sheets. The partnership agreement of the Operating Partnership (as amended, the "Partnership Agreement") provides for the designation and issuance of the OP Units. As of June 30, 2020 and December 31, 2019, noncontrolling interests in Preferred OP Units were presented net of notes receivable from Preferred OP Unit holders of $100,000 as more fully described below. Series A Participating Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series A Units were issued in June 2007. Series A Units in the amount of $101,700 bear a fixed priority return of 2.3% and originally had 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 Companyās option, in cash or shares of its common stock. As a result of the redemption of 114,500 Series A Units in October 2014, the remaining fixed liquidation value was reduced to $101,700, which represents 875,480 Series A Units. On June 25, 2007, the Operating Partnership loaned the holder of the Series A Units $100,000. The loan bears interest at 2.1%. The loan is secured by the borrowerās Series A Units. No future redemption of Series A Units can be made unless the loan secured by the Series A Units is also repaid. 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 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 Series B Units were issued in 2013 and 2014 and have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902, which represents 1,676,087 Series B Units. 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 Companyās option in cash or shares of its common stock. Series C Convertible Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units ranked 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 Series C Units were issued in 2013 and 2014 and had a liquidation value of $42.10 per unit. The Series C Units became redeemable at the option of the holder one year from the date of issuance, which redemption obligation could be satisfied at the Companyās option in cash or shares of its common stock. The Series C Units were 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 expired 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 loan receivable, which was collateralized by the Series C Units, bears interest at 5.0% per annum and matures on December 15, 2024. The Series C Units were shown on the balance sheet net of the loan balance because the borrower under the loan receivable was also the holder of the Series C Units. On December 1, 2018, certain holders of the Series C Units converted their Series C Units into OP Units, with a total of 407,996 Series C Units being converted into a total of 373,113 OP Units. On April 25, 2019, the remaining 296,020 Series C Units were converted into 270,709 OP Units. The remaining outstanding balance of the loan receivable of $18,524 is shown as a reduction of the noncontrolling interests related to the OP Units as of December 31, 2019 and June 30, 2020. See footnote 12 for further discussion of noncontrolling interests. Series D Redeemable Preferred Units 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 been issued at various times from 2014 to 2019. During the six months ended June 30, 2019, the Operating Partnership issued 1,120,924 Series D Units valued at $28,022 in conjunction with joint venture acquisitions. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $117,362, which represents 4,694,485 Series D Units. Holders of the Series D Units receive distributions at an annual rate between 3.0% and 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 Companyās option in cash or shares of its common stock. In addition, certain of the Series D Units are exchangeable for 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 Series D Unit, divided by the value of a share of common stock as of the exchange date. Noncontrolling Interest in Operating Partnership The Companyās interest in its stores is held through the Operating Partnership. Between its general partner and limited partner interests, the Company held a 93.9% ownership interest in the Operating Partnership as of June 30, 2020. The remaining ownership interests in the Operating Partnership (including Preferred OP Units) of 6.1% are held by certain former owners of assets acquired by the Operating Partnership. As of June 30, 2020 and December 31, 2019, the noncontrolling interests in the Operating Partnership are shown on the balance sheet net of notes receivable of $18,524 because the borrowers under the loan receivable are also holders of OP Units (Note 11). This loan receivable bears interest at 5.0% per annum and matures on December 15, 2024. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company's option in cash, based upon the fair market value of an equivalent number of shares of the Companyās common stock (based on the ten-day average trading price) at the time of the redemption, or shares of the Company's common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement. As of June 30, 2020, the ten-day average closing price of the Company's common stock was $92.75 and there were 5,815,916 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on June 30, 2020 and the Company elected to pay the OP Unit holders cash, the Company would have paid $539,426 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Six Months Ended June 30, 2020 2019 OP Units redeemed for common stock 108,862 210,501 OP Units issued upon redemption of Series C Units ā 270,709 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 companyās 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 stockholdersā 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 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Companyās segment disclosures present the measure used by the chief operating decision makers ("CODMs") for purposes of assessing each segmentās performance. The Companyās CODMs are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Companyās reportable operating segments. NOI for the Company's self-storage operations represents total property revenue less direct property operating expenses. NOI for the Company's tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense. The Company has two reportable segments: (1) self-storage operations and (2) tenant reinsurance. The self-storage operations activities include rental operations of wholly-owned stores. The Company's consolidated revenues equal total segment revenues plus property management fees and other income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Excluded from segment revenues and net operating income is property management fees and other income. For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. Financial information for the Companyās business segments is set forth below: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Self-Storage Operations $ 279,312 $ 279,584 $ 566,015 $ 550,587 Tenant Reinsurance 35,078 31,701 68,691 61,498 Total segment revenues $ 314,390 $ 311,285 $ 634,706 $ 612,085 Operating expenses: Self-Storage Operations $ 89,040 $ 80,870 $ 179,337 $ 159,635 Tenant Reinsurance 6,858 6,982 13,536 13,949 Total segment operating expenses $ 95,898 $ 87,852 $ 192,873 $ 173,584 Net operating income: Self-Storage Operations $ 190,272 $ 198,714 $ 386,678 $ 390,952 Tenant Reinsurance 28,220 24,719 55,155 47,549 Total segment net operating income: $ 218,492 $ 223,433 $ 441,833 $ 438,501 Other components of net income (loss): Management fees and other income $ 12,856 $ 12,317 $ 24,992 $ 23,063 General and administrative expense (25,337) (23,351) (48,348) (46,029) Depreciation and amortization expense (56,018) (54,406) (111,293) (109,065) Gain on real estate transactions ā 1,205 ā 1,205 Interest expense (41,039) (47,448) (85,397) (94,808) Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes (1,233) (1,185) (2,442) (2,347) Interest income 1,669 1,718 3,343 3,106 Equity in earnings and dividend income from unconsolidated real estate entities 5,044 3,121 10,087 5,751 Income tax expense (3,177) (2,715) (5,356) (4,528) Net income $ 111,257 $ 112,689 $ 227,419 $ 214,849 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of June 30, 2020, the Company was involved in various legal proceedings and was 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. As of June 30, 2020, the Company was under agreement to acquire ten stores at a total purchase price of $105,250. Nine stores are scheduled to close in 2020 and the remaining store is expected to close in 2021. Additionally, the Company is under agreement to acquire three stores with joint venture partners, for a total investment of $11,393. Two of these stores are scheduled to close in 2020 and the remaining store is expected to close in 2021. 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 Companyās 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. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS In July 2020, the Company purchased a senior mezzanine note receivable with a principal amount of $103,000. The note receivable bears interest at 5.5%, and matures in December 2023. The Company paid cash of $101,000 for the loan receivable. Subsequent to June 30, 2020, the Company purchased one store located in Texas for a total purchase price of $10,500. This acquisition is included in the amounts shown in the commitments and contingencies footnote. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
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 (āGAAPā) for interim financial information, and in accordance with the instructions to FormĀ 10-Q and ArticleĀ 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, 2020 are not necessarily indicative of results that mayĀ be expected for the year ending DecemberĀ 31, 2020. The condensed consolidated balance sheet as of DecemberĀ 31, 2019 has been derived from the Companyās 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 Companyās Annual Report on FormĀ 10-K for the year ended DecemberĀ 31, 2019, as filed with the Securities and Exchange Commission. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which clarified that receivables arising from operating leases are within the scope of the leasing standard (ASU 2016-02), and not within the scope of ASU 2016-13. This new standard became effective for the Company on January 1, 2020. The adoption of this standard by the Company did not have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, " Reference Rate Reform (Topic 848) |
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 counterpartyās 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 FASBās 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, 2020, the Company 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 has determined that its derivative valuations in their entirety were classified in Level 2 of the fair value hierarchy. 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 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, 2020, the Company had one parcel of land classified as held for sale which is included in real estate assets, net. The estimated fair values less selling costs for these assets is greater than the carrying values of the assets, and therefore no loss has been recorded. The Company assesses annually whether there are any indicators that the value of the Companyās 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 managementās 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 Companyās 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 Companyās historical experience with turnover in its stores. Any 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 are capitalized as part of the purchase price. 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, 2020 and December 31, 2019 approximate fair value. Restricted cash is comprised of escrowed funds deposited with financial institutions located throughout the United States relating to earnest money deposits on potential acquisitions, real estate taxes, loan collateral, operating reserves, insurance and capital expenditures. |
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 (āSeries A Unitsā), Series B Redeemable Preferred Units (āSeries B Unitsā), Series D Redeemable Preferred Units (āSeries D Unitsā and, together with the Series A Units and Series B Units, the āPreferred OP Unitsā) and common Operating Partnership units (āOP Unitsā)) 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 (i.e. those that reduce earnings per common share) are included. For the three and six months ended June 30, 2020, and 2019, there were no anti-dilutive options. |
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 Companyās derivative financial instruments are used to manage differences in the amount, timing and duration of the Companyās known or expected cash receipts and its known or expected cash payments principally related to the Companyās investments and borrowings.The Companyās 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 (āOCIā) 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. |
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 issuerās economic interest cost. The Company therefore accounts for the liability and equity components of the 2015 Notes separately. The equity components are included in paid-in capital in stockholdersā 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 amortized as interest expense over the remaining period of the debt through its first redemption date of OctoberĀ 1, 2020. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the Companyās assets and liabilities measured at fair value on a recurring basis as of June 30, 2020, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description 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 $ ā $ ā $ ā Other liabilities - Cash flow hedge swap agreements $ ā $ 119,658 $ ā |
Schedule of Fair Value of Financial Instruments | The fair values of the Companyās fixed-rate assets and liabilities were as follows for the periods indicated: June 30, 2020 December 31, 2019 Fair Carrying Fair Carrying Notes receivable from Preferred and Common Operating Partnership unit holders $ 119,976 $ 118,524 $ 116,184 $ 118,524 Fixed rate notes payable $ 3,613,096 $ 3,454,701 $ 3,511,151 $ 3,417,928 Exchangeable senior notes $ 620,281 $ 575,000 $ 673,831 $ 575,000 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2020 2019 2020 2019 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Common OP Units 5,876,356 ā 5,898,029 ā Series A Units (Variable Only) 875,480 ā 875,480 ā Series B Units 450,803 398,840 425,446 416,398 Series D Units 1,282,322 1,109,048 1,214,732 1,096,259 8,484,961 1,507,888 8,413,687 1,512,657 |
Schedule of Computation of Earnings Per Common Share | The computation of earnings per common share is as follows for the periods presented: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to common stockholders $ 102,911 $ 104,828 $ 211,090 $ 199,598 Earnings and dividends allocated to participating securities (173) (176) (336) (343) Earnings for basic computations 102,738 104,652 210,754 199,255 Earnings and dividends allocated to participating securities ā 176 ā ā Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units ā 6,010 ā 11,439 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) ā (572) ā (1,144) Net income for diluted computations $ 102,738 $ 110,266 $ 210,754 $ 209,550 Weighted average common shares outstanding: Average number of common shares outstanding - basic 128,932,152 127,585,436 129,110,131 127,349,299 OP Units ā 6,085,976 ā 6,023,822 Series A Units ā 875,480 ā 875,480 Unvested restricted stock awards included for treasury stock method ā 218,686 ā ā Shares related to exchangeable senior notes and dilutive stock options 150,316 889,183 175,544 917,855 Average number of common shares outstanding - diluted 129,082,468 135,654,761 129,285,675 135,166,456 Earnings per common share Basic $ 0.80 $ 0.82 $ 1.63 $ 1.56 Diluted $ 0.80 $ 0.81 $ 1.63 $ 1.55 |
Store Acquisitions (Tables)
Store Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Schedule of Operating Properties Acquired | The following table shows the Companyās acquisitions of stores for the three and six months ended June 30, 2020 and 2019. The table excludes purchases of raw land and improvements made to existing assets. All acquisitions are considered asset acquisitions under ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ." Consideration Paid Total Quarter Number of Stores Total Cash Paid Loan Assumed Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Real estate assets Q2 2020 ā $ ā $ ā $ ā $ ā $ ā $ ā Q1 2020 2 19,399 19,354 ā ā 45 19,399 2 $ 19,399 $ 19,354 $ ā $ ā $ 45 $ 19,399 Q2 2019 1 $ 8,424 $ 8,424 $ ā $ ā $ ā $ 8,424 Q1 2019 14 (1) 223,740 202,890 17,157 2,780 913 223,740 15 $ 232,164 $ 211,314 $ 17,157 $ 2,780 $ 913 $ 232,164 (1) Store acquisitions during the three months ended March 31, 2019 include the acquisition of 12 stores previously held in joint ventures where the Company held a noncontrolling interest. The Company purchased its partners' remaining equity interests in the joint ventures, and the properties owned by the joint ventures became wholly owned by the Company. No gain or loss was recognized as a result of these acquisitions. |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Ventures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated real estate ventures | Net investments in unconsolidated real estate ventures and cash distributions in unconsolidated real estate ventures consist of the following: Number of Stores Equity Ownership % Excess Profit % (1) June 30, December 31, 2020 2019 PR EXR Self Storage, LLC 5 25% 40% $ 58,921 $ 59,391 WICNN JV LLC 10 10% 25% 36,291 36,552 VRS Self Storage, LLC 16 45% 54% 17,103 17,639 ESS-NYFL JV LP 11 16% 24% 12,470 13,320 GFN JV, LLC 7 10% 30% 18,563 12,168 PRISA Self Storage LLC 85 4% 4% 8,925 9,133 Alan Jathoo JV LLC 9 10% 10% 7,870 7,977 Storage Portfolio III JV LLC 5 10% 30% 5,799 3,995 ESS Bristol Investments LLC 8 10% 28% 2,855 3,046 Extra Space Northern Properties Six LLC 10 10% 35% (2,314) (2,091) Storage Portfolio II JV LLC 36 10% 30% (5,089) (4,827) Storage Portfolio I LLC 24 34% 49% (38,698) (38,345) Other minority owned stores 19 10-50% 19-50% 25,381 24,832 SmartStop Self Storage REIT, Inc. Preferred Stock (2) n/a n/a n/a 150,000 150,000 Net Investments in and Cash distributions in unconsolidated real estate entities 245 $ 298,077 $ 292,790 (1) Includes pro-rata equity ownership share and promoted interest. (2) In October 2019, the Company invested $150,000 in shares of newly issued convertible preferred stock of SmartStop,with an additional commitment to purchase up to $50,000 of the preferred shares over the 12 months after the original purchase. The dividend rate for the preferred shares is 6.25% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations. |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Companyās derivative financial instruments as well as their classification on the condensed consolidated balance sheets: Asset / Liability Derivatives June 30, 2020 December 31, 2019 Derivatives designated as hedging instruments: Fair Value Other assets $ ā $ 6,214 Other liabilities $ 119,658 $ 31,400 |
Schedule of information relating to gain (loss) recognized on swap agreements | The table below presents the effect of the Companyās 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 2020 2019 2020 2019 Swap Agreements $ (13,350) $ (36,294) Interest expense $ (7,639) $ 4,338 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 2020 2019 2020 2019 Swap Agreements $ (103,060) $ (55,870) Interest expense $ (8,202) $ 8,799 |
Exchangeable Senior Notes (Tabl
Exchangeable Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Companyās 2015 Notes, including the total carrying amount of the equity component, the principal amount of the liability component, the unamortized discount and the net carrying amount was as follows for the periods indicated: June 30, 2020 December 31, 2019 Carrying amount of equity component $ 22,597 $ 22,597 Principal amount of liability component $ 575,000 $ 575,000 Unamortized discount - equity component (1,233) (3,675) Unamortized debt issuance costs (613) (1,812) Net carrying amount of liability component $ 573,154 $ 569,513 |
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 rate and the amortization of the discount on the liability component of the Notes were as follows for the periods indicated: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Contractual interest $ 4,492 $ 4,492 $ 8,984 $ 8,984 Amortization of discount 1,233 1,185 2,442 2,347 Total interest expense recognized $ 5,725 $ 5,677 $ 11,426 $ 11,331 |
Noncontrolling Interest in Op_2
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | OP Unit activity is summarized as follows for the periods presented: For the Six Months Ended June 30, 2020 2019 OP Units redeemed for common stock 108,862 210,501 OP Units issued upon redemption of Series C Units ā 270,709 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Business Segments | Financial information for the Companyās business segments is set forth below: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Revenues: Self-Storage Operations $ 279,312 $ 279,584 $ 566,015 $ 550,587 Tenant Reinsurance 35,078 31,701 68,691 61,498 Total segment revenues $ 314,390 $ 311,285 $ 634,706 $ 612,085 Operating expenses: Self-Storage Operations $ 89,040 $ 80,870 $ 179,337 $ 159,635 Tenant Reinsurance 6,858 6,982 13,536 13,949 Total segment operating expenses $ 95,898 $ 87,852 $ 192,873 $ 173,584 Net operating income: Self-Storage Operations $ 190,272 $ 198,714 $ 386,678 $ 390,952 Tenant Reinsurance 28,220 24,719 55,155 47,549 Total segment net operating income: $ 218,492 $ 223,433 $ 441,833 $ 438,501 Other components of net income (loss): Management fees and other income $ 12,856 $ 12,317 $ 24,992 $ 23,063 General and administrative expense (25,337) (23,351) (48,348) (46,029) Depreciation and amortization expense (56,018) (54,406) (111,293) (109,065) Gain on real estate transactions ā 1,205 ā 1,205 Interest expense (41,039) (47,448) (85,397) (94,808) Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes (1,233) (1,185) (2,442) (2,347) Interest income 1,669 1,718 3,343 3,106 Equity in earnings and dividend income from unconsolidated real estate entities 5,044 3,121 10,087 5,751 Income tax expense (3,177) (2,715) (5,356) (4,528) Net income $ 111,257 $ 112,689 $ 227,419 $ 214,849 |
Organization (Detail)
Organization (Detail) | Jun. 30, 2020storestate |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating storage facilities in which the entity has equity interests (in stores) | 1,178 |
Number of stores owned by franchisees and third parties | 700 |
Number of operating stores owned and/or managed | 1,878 |
Number of states in which operating storage facilities are located | state | 40 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities on a Recurring Basis (Detail) - Recurring Basis $ in Thousands | Jun. 30, 2020USD ($) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
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) | |
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 | 119,658 |
Significant Unobservable Inputs (Level 3) | |
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 - Additi
Fair Value Disclosures - Additional Information (Detail) | Jun. 30, 2020land_parcel |
Fair Value Disclosures [Abstract] | |
Number of parcels of land held-for-sale | 1 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred and Common Operating Partnership unit holders | $ 119,976 | $ 116,184 |
Fixed rate notes payable | 3,613,096 | 3,511,151 |
Exchangeable senior notes | 620,281 | 673,831 |
Carrying Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred and Common Operating Partnership unit holders | 118,524 | 118,524 |
Fixed rate notes payable | 3,454,701 | 3,417,928 |
Exchangeable senior notes | $ 575,000 | $ 575,000 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 8,484,961 | 1,507,888 | 8,413,687 | 1,512,657 | |
Average share price (in dollars per share) | $ 92.95 | $ 105.06 | $ 98.49 | $ 100.63 | |
Exchangeable senior notes, net | $ 573,154,000 | $ 573,154,000 | $ 569,513,000 | ||
Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exchangeable senior notes, net | $ 575,000,000 | $ 575,000,000 | |||
Debt stated interest rate | 3.125% | 3.125% | |||
Exchange price (in dollars per share) | $ 91.16 | $ 91.16 | |||
Shares related to the Notes included in the computation for diluted earnings per share (in shares) | 121,283 | 757,811 | 121,283 | 757,811 | |
Series A Units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exchangeable preferred operating partnership units settled in cash, minimum | $ 101,700,000 | $ 101,700,000 | |||
Stock Options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Antidilutive Shares (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 8,484,961 | 1,507,888 | 8,413,687 | 1,512,657 |
Common OP Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 5,876,356 | 0 | 5,898,029 | 0 |
Series A Units (Variable Only) | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 875,480 | 0 | 875,480 | 0 |
Series B Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 450,803 | 398,840 | 425,446 | 416,398 |
Series D Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 1,282,322 | 1,109,048 | 1,214,732 | 1,096,259 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common stockholders | $ 102,911 | $ 104,828 | $ 211,090 | $ 199,598 |
Earnings and dividends allocated to participating securities | (173) | (176) | (336) | (343) |
Earnings for basic computations | 102,738 | 104,652 | 210,754 | 199,255 |
Earnings and dividends allocated to participating securities | 0 | 176 | 0 | 0 |
Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units | 0 | 6,010 | 0 | 11,439 |
Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) | 0 | (572) | 0 | (1,144) |
Net income for diluted computations | $ 102,738 | $ 110,266 | $ 210,754 | $ 209,550 |
Weighted average common shares outstanding: | ||||
Average number of common shares outstanding - basic (in shares) | 128,932,152 | 127,585,436 | 129,110,131 | 127,349,299 |
OP Units (in shares) | 0 | 6,085,976 | 0 | 6,023,822 |
Preferred Units (in shares) | 0 | 875,480 | 0 | 875,480 |
Unvested restricted stock awards included for treasury stock method (in shares) | 0 | 218,686 | 0 | 0 |
Shares related to exchangeable senior notes and dilutive stock options (in shares) | 150,316 | 889,183 | 175,544 | 917,855 |
Average number of common shares outstanding - diluted (in shares) | 129,082,468 | 135,654,761 | 129,285,675 | 135,166,456 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.80 | $ 0.82 | $ 1.63 | $ 1.56 |
Diluted (in dollars per share) | $ 0.80 | $ 0.81 | $ 1.63 | $ 1.55 |
Store Acquisitions (Detail)
Store Acquisitions (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020USD ($)store | Mar. 31, 2020USD ($)store | Jun. 30, 2019USD ($)store | Mar. 31, 2019USD ($)store | Jun. 30, 2020USD ($)store | Jun. 30, 2019USD ($)store | |
Real Estate [Abstract] | ||||||
Number of Stores | store | 0 | 2 | 1 | 14 | 2 | 15 |
Total Consideration Paid | $ 0 | $ 19,399 | $ 8,424 | $ 223,740 | $ 19,399 | $ 232,164 |
Cash Paid | 0 | 19,354 | 8,424 | 202,890 | 19,354 | 211,314 |
Loan Assumed | 0 | 0 | 0 | 17,157 | 0 | 17,157 |
Investments in Real Estate Ventures | 0 | 0 | 0 | 2,780 | 0 | 2,780 |
Net Liabilities/ (Assets) Assumed | $ 0 | $ 45 | $ 0 | $ 913 | $ 45 | $ 913 |
Number of stores acquired, previously held noncontrolling interest | store | 12 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Ventures - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)store | |
Equity Method Investments and Joint Ventures [Abstract] | |
Number of operating stores acquired | 1 |
Number of stores acquired at certificate of occupancy | 3 |
Contribution to joint venture | $ | $ 9,541 |
Investments in Unconsolidated_4
Investments in Unconsolidated Real Estate Ventures - Schedule of Investments (Details) $ in Thousands | 1 Months Ended | ||
Oct. 31, 2019USD ($) | Jun. 30, 2020USD ($)property | Dec. 31, 2019USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 245 | ||
Investment balance | $ 298,077 | $ 292,790 | |
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Ownership % | 10.00% | ||
Excess Profit % | 19.00% | ||
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Ownership % | 50.00% | ||
Excess Profit % | 50.00% | ||
PR EXR Self Storage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 5 | ||
Equity Ownership % | 25.00% | ||
Excess Profit % | 40.00% | ||
Investment balance | $ 58,921 | 59,391 | |
WICNN JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 10 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 25.00% | ||
Investment balance | $ 36,291 | 36,552 | |
VRS Self Storage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 16 | ||
Equity Ownership % | 45.00% | ||
Excess Profit % | 54.00% | ||
Investment balance | $ 17,103 | 17,639 | |
ESS-NYFL JV LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 11 | ||
Equity Ownership % | 16.00% | ||
Excess Profit % | 24.00% | ||
Investment balance | $ 12,470 | 13,320 | |
GFN JV, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 7 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ 18,563 | 12,168 | |
PRISA Self Storage LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 85 | ||
Equity Ownership % | 4.00% | ||
Excess Profit % | 4.00% | ||
Investment balance | $ 8,925 | 9,133 | |
Alan Jathoo JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 9 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 10.00% | ||
Investment balance | $ 7,870 | 7,977 | |
Storage Portfolio III JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 5 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ 5,799 | 3,995 | |
ESS Bristol Investments LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 8 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 28.00% | ||
Investment balance | $ 2,855 | 3,046 | |
Extra Space Northern Properties Six LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 10 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 35.00% | ||
Investment balance | $ (2,314) | (2,091) | |
Storage Portfolio II JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 36 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ (5,089) | (4,827) | |
Storage Portfolio I LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 24 | ||
Equity Ownership % | 34.00% | ||
Excess Profit % | 49.00% | ||
Investment balance | $ (38,698) | (38,345) | |
Other minority owned stores | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 19 | ||
Investment balance | $ 25,381 | 24,832 | |
SmartStop Self Storage REIT, Inc. Preferred Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment balance | $ 150,000 | $ 150,000 | |
Amount invested | $ 150 | ||
Investment commitment | $ 50 | ||
Investment commitment, period | 5 years | ||
Investment, preferred dividend rate | 6.25% | ||
Period after which preferred stock dividend is subject to increase | 5 years |
Variable Interests (Detail)
Variable Interests (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 31, 2019USD ($) | Jun. 30, 2020joint_venture | Jun. 30, 2020USD ($)joint_venture | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017subsidiary | |
Variable Interest Entity [Line Items] | ||||||
Number of wholly-owned unconsolidated subsidiaries | subsidiary | 3 | |||||
Repayments of debt | $ 0 | $ 30,928 | ||||
Number of interests in consolidated VIE joint ventures | joint_venture | 0 | 0 | ||||
Notes payable to Trusts | Variable Interest Entity, Not Primary Beneficiary | ||||||
Variable Interest Entity [Line Items] | ||||||
Repayments of debt | $ 30,928 | $ 88,662 | ||||
Notes payable to Trusts | $ 30,928 |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands | Jun. 30, 2020USD ($)derivative |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated amount of unrealized gains (losses) expected to be reclassified as interest expense in next fiscal year | $ 35,790 |
Number of derivative financial instruments | derivative | 25 |
Combined notional amount | $ 2,391,806 |
Fair value - net liability position | 123,251 |
Contingent cash settlement value | $ 123,251 |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet Classification and Fair Value of Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other assets | ||
Derivative [Line Items] | ||
Other assets - Cash flow hedge swap agreements | $ 0 | $ 6,214 |
Other liabilities | ||
Derivative [Line Items] | ||
Derivative liability, fair value | $ 119,658 | $ 31,400 |
Derivatives - Gain (Loss) Recog
Derivatives - Gain (Loss) Recognized on Swap Agreements (Detail) - Swap Agreements - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (loss) recognized in OCI | $ (13,350) | $ (36,294) | $ (103,060) | $ (55,870) |
Gain (loss) reclassified from OCI | $ (7,639) | $ 4,338 | $ (8,202) | $ 8,799 |
Exchangeable Senior Notes - Add
Exchangeable Senior Notes - Additional Information (Detail) - Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) | 1 Months Ended | 6 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2020day | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Principal amount of notes issued | $ | $ 575,000,000 | ||
Debt stated interest rate | 3.125% | ||
Related debt issuance costs | $ | $ 11,992,000 | ||
Underwriting fee percentage | 2.00% | ||
Amortization period | 5 years | ||
Conversion ratio | 0.01097 | ||
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% | ||
Notes exchange, threshold percentage | 130.00% | ||
Notes exchange, threshold trading days | day | 20 | ||
Notes exchange, threshold consecutive trading days | day | 30 | ||
Effective interest rate on the liability component | 4.00% | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Number of days of written notice to holders of notes required for redemption | 30 days | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Number of days of written notice to holders of notes required for redemption | 60 days |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Principal amount of liability component | $ 573,154 | $ 569,513 | |
Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) | |||
Debt Instrument [Line Items] | |||
Principal amount of liability component | 575,000 | ||
Unamortized debt issuance costs | $ (11,992) | ||
Senior Notes | Exchangeable Senior Notes 3.125% due 2035 (the 2015 Notes) | |||
Debt Instrument [Line Items] | |||
Carrying amount of equity component | 22,597 | 22,597 | |
Principal amount of liability component | 575,000 | 575,000 | |
Unamortized discount - equity component | (1,233) | (3,675) | |
Unamortized debt issuance costs | (613) | (1,812) | |
Net carrying amount of liability component | $ 573,154 | $ 569,513 |
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, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | ||||
Contractual interest | $ 4,492 | $ 4,492 | $ 8,984 | $ 8,984 |
Amortization of discount | 1,233 | 1,185 | 2,442 | 2,347 |
Total interest expense recognized | $ 5,725 | $ 5,677 | $ 11,426 | $ 11,331 |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) | May 15, 2019USD ($)sales_agent | Nov. 08, 2017USD ($) | Jun. 30, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) |
Class of Stock [Line Items] | ||||
Number of sales agents | sales_agent | 9 | |||
Share repurchase program, period | 3 years | |||
Share repurchase program, authorized amount | $ 400,000,000 | |||
Repurchase of common stock (in shares) | shares | 826,197 | |||
Repurchase of common stock (usd per share) | $ / shares | $ 82.09 | |||
Repurchase of common stock | $ 67,819,000 | $ 0 | ||
Share repurchase program, remaining authorization | $ 332,181,000 | |||
At the Market Equity Distribution Agreement | ||||
Class of Stock [Line Items] | ||||
Aggregate offering price of common shares | $ 500,000,000 | |||
Shares issued (in shares) | shares | 0 | |||
Value of stock available for issuance under ATM | $ 298,621,000 |
Noncontrolling Interest Repre_2
Noncontrolling Interest Represented by Preferred Operating Partnership Units (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 25, 2019 | Dec. 01, 2018 | Apr. 18, 2017 | Dec. 31, 2014 | Oct. 31, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2007 | Jun. 25, 2007 |
Noncontrolling Interest [Line Items] | |||||||||
Loans and notes to affiliates | $ 100,000 | ||||||||
Note receivable interest rate | 5.00% | ||||||||
Loan to affiliates | $ 20,230 | ||||||||
Note receivable, reduction of noncontrolling interests | $ 18,524 | ||||||||
Series A Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Fixed priority return on preferred OP units, amount | $ 101,700 | ||||||||
Fixed priority return on preferred OP units, stated return rate | 2.30% | ||||||||
Fixed priority return on preferred OP units, liquidation value | $ 101,700 | $ 115,000 | |||||||
Preferred units outstanding (in shares) | 875,480 | ||||||||
Series B Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Preferred units outstanding (in shares) | 1,676,087 | ||||||||
Liquidation value (in dollars per share) | $ 25 | ||||||||
Fixed liquidation value | $ 41,902 | ||||||||
Annual rate of return percentage | 6.00% | ||||||||
Series C Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Liquidation value (in dollars per share) | $ 42.10 | ||||||||
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 | 0.9145 | ||||||||
Units converted (in shares) | 296,020 | 407,996 | |||||||
Series D Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Preferred units outstanding (in shares) | 4,694,485 | ||||||||
Liquidation value (in dollars per share) | $ 25 | ||||||||
Fixed liquidation value | $ 117,362 | ||||||||
Units converted (in shares) | 108,960 | ||||||||
Number of units issued (in shares) | 1,120,924 | ||||||||
Value of units issued | $ 28,022 | ||||||||
Series D Units | Minimum | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Annual rate of return percentage | 3.00% | ||||||||
Series D Units | Maximum | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Annual rate of return percentage | 5.00% | ||||||||
Operating Partnership Holders of A Units | Series A Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Loans and notes to affiliates | $ 100,000 | ||||||||
Maximum number of preferred OP units converted prior to the maturity date of the loan (in shares) | 114,500 | ||||||||
Note receivable interest rate | 2.10% | ||||||||
Noncontrolling Interest - Operating Partnership | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Issuance of units upon conversion (in shares) | 270,709 | 373,113 | 30,495 | ||||||
Note receivable, reduction of noncontrolling interests | $ 18,524 |
Noncontrolling Interest in Op_3
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests - Additional Information (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)propertyjoint_venture$ / sharesshares | |
Noncontrolling Interest [Line Items] | |
Note receivable, reduction of noncontrolling interests | $ 18,524 |
Note receivable interest rate | 5.00% |
Period used as a denomination to determine the average closing price of common stock | 10 days |
Ten day average closing stock price (in dollars per share) | $ / shares | $ 92.75 |
OP units outstanding (in shares) | shares | 5,815,916 |
Consideration to be paid on redemption of common OP units | $ 539,426 |
Noncontrolling Interest - Operating Partnership | |
Noncontrolling Interest [Line Items] | |
Note receivable, reduction of noncontrolling interests | $ 18,524 |
Common Stock | |
Noncontrolling Interest [Line Items] | |
OP units conversion ratio | 1 |
Noncontrolling Interest - Operating Partnership | |
Noncontrolling Interest [Line Items] | |
Ownership interest held | 93.90% |
Ownership interest held by joint venture partner | 6.10% |
Other noncontrolling interests | |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | joint_venture | 2 |
Joint Venture 1 | Other noncontrolling interests | |
Noncontrolling Interest [Line Items] | |
Number of operating stores owned | property | 4 |
Joint Venture 2 | Other noncontrolling interests | |
Noncontrolling Interest [Line Items] | |
Number of operating stores owned | property | 2 |
Noncontrolling Interest in Op_4
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests - Schedule of OP Unit Activity (Details) - shares | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |||
OP Units redeemed for common stock (in units) | 108,862 | 210,501 | |
OP Units issued upon redemption of Series C Units (in shares) | 0 | 270,709 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||||
Revenues: | $ 327,246 | $ 323,602 | $ 659,698 | $ 635,148 | ||
Operating expenses: | 177,253 | 165,609 | 352,514 | 328,678 | ||
Income from operations | 149,993 | 159,198 | 307,184 | 307,675 | ||
Management fees and other income | 12,856 | 12,317 | 24,992 | 23,063 | ||
General and administrative expense | (25,337) | (23,351) | (48,348) | (46,029) | ||
Depreciation and amortization expense | (56,018) | (54,406) | (111,293) | (109,065) | ||
Interest expense | (41,039) | (47,448) | (85,397) | (94,808) | ||
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (1,233) | (1,185) | (2,442) | (2,347) | ||
Interest income | 1,669 | 1,718 | 3,343 | 3,106 | ||
Equity in earnings and dividend income from unconsolidated real estate entities | 5,044 | 3,121 | 10,087 | 5,751 | ||
Income tax expense | (3,177) | (2,715) | (5,356) | (4,528) | ||
Net income | 111,257 | $ 116,162 | 112,689 | $ 102,160 | 227,419 | 214,849 |
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues: | 314,390 | 311,285 | 634,706 | 612,085 | ||
Operating expenses: | 95,898 | 87,852 | 192,873 | 173,584 | ||
Income from operations | 218,492 | 223,433 | 441,833 | 438,501 | ||
Self-Storage Operations | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues: | 279,312 | 279,584 | 566,015 | 550,587 | ||
Operating expenses: | 89,040 | 80,870 | 179,337 | 159,635 | ||
Income from operations | 190,272 | 198,714 | 386,678 | 390,952 | ||
Tenant Reinsurance | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenues: | 35,078 | 31,701 | 68,691 | 61,498 | ||
Operating expenses: | 6,858 | 6,982 | 13,536 | 13,949 | ||
Income from operations | $ 28,220 | $ 24,719 | $ 55,155 | $ 47,549 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Thousands | Jun. 30, 2020USD ($)store |
Commitment to acquire stores | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 10 |
Purchase price | $ | $ 105,250 |
Commitment to acquire stores, scheduled to close in 2020 | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 9 |
Commitment to acquire stores with joint venture partners | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 3 |
Purchase price | $ | $ 11,393 |
Commitment to acquire stores with joint venture partners, scheduled to close in 2020 | |
Other Commitments [Line Items] | |
Number of stores scheduled to be closed | 2 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | ||
Aug. 05, 2020USD ($)store | Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Subsequent Event [Line Items] | ||||
Cash paid to acquire loans receivable | $ 24,325 | $ 152,599 | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Loan receivable purchased, principal amount | $ 103,000 | |||
Loan receivable, stated interest rate | 5.50% | |||
Cash paid to acquire loans receivable | $ 101,000 | |||
Number of stores purchased | store | 1 | |||
Purchase price | $ 10,500 |