Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 11, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'Strategic Storage Trust, Inc. | ' |
Entity Central Index Key | '0001410567 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 55,968,721 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $64,635,461 | $13,998,391 |
Real estate facilities: | ' | ' |
Land | 183,660,368 | 178,459,163 |
Buildings | 412,247,309 | 389,149,948 |
Site improvements | 38,972,701 | 37,118,784 |
Gross Carrying Amount, Total | 634,880,378 | 604,727,895 |
Accumulated depreciation | -41,921,207 | -29,840,320 |
Property, Plant and Equipment, Net, Total | 592,959,171 | 574,887,575 |
Construction in process | 430,749 | 5,233,426 |
Real estate facilities, net ($16,646,501 and $16,829,789 related to VIEs) | 593,389,920 | 580,121,001 |
Deferred financing costs, net of accumulated amortization | 5,290,252 | 5,989,290 |
Intangible assets, net of accumulated amortization | 5,936,030 | 11,635,112 |
Restricted cash | 8,193,811 | 6,449,225 |
Investments in unconsolidated joint ventures | 8,712,131 | 8,772,005 |
Other assets | 5,014,638 | 4,270,638 |
Total assets | 691,172,243 | 631,235,662 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Secured debt ($10,092,228 and $10,149,024 related to VIEs) | 349,759,505 | 353,440,758 |
Accounts payable and accrued liabilities | 13,790,525 | 12,726,888 |
Due to affiliates | 1,521,106 | 2,282,344 |
Distributions payable | 3,133,425 | 2,724,603 |
Total liabilities | 368,204,561 | 371,174,593 |
Commitments and contingencies (Note 8) | ' | ' |
Redeemable common stock | 1,653,996 | 3,960,664 |
Strategic Storage Trust, Inc. stockholders' equity: | ' | ' |
Common stock, $0.001 par value; 700,000,000 shares authorized; 55,783,103 and 46,184,742 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 55,783 | 46,184 |
Additional paid-in capital | 479,390,352 | 383,072,118 |
Distributions | -97,181,334 | -71,401,126 |
Accumulated deficit | -66,738,693 | -61,929,145 |
Accumulated other comprehensive loss | -991,113 | -682,692 |
Total Strategic Storage Trust, Inc. stockholders' equity | 314,534,995 | 249,105,339 |
Noncontrolling interests in Operating Partnership | 1,054,552 | 1,149,679 |
Other noncontrolling interests | 5,724,139 | 5,845,387 |
Total noncontrolling interests | 6,778,691 | 6,995,066 |
Total stockholders' equity | 321,313,686 | 256,100,405 |
Total liabilities and stockholders' equity | $691,172,243 | $631,235,662 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement Of Financial Position [Abstract] | ' | ' |
Real estate facilities, related to VIEs | $16,646,501 | $16,829,789 |
Secured debt, related to VIEs | $10,092,228 | $10,149,024 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 700,000,000 | 700,000,000 |
Common stock, shares issued | 55,783,103 | 46,184,742 |
Common stock, shares outstanding | 55,783,103 | 46,184,742 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | ' | ' | ' | ' |
Self storage rental income | $20,594,260 | $16,519,825 | $58,653,335 | $46,566,368 |
Ancillary operating income | 698,314 | 578,348 | 1,978,388 | 1,588,996 |
Total revenues | 21,292,574 | 17,098,173 | 60,631,723 | 48,155,364 |
Operating expenses: | ' | ' | ' | ' |
Property operating expenses | 7,235,797 | 6,639,055 | 21,096,360 | 19,437,251 |
Property operating expenses - affiliates | 2,465,677 | 2,120,406 | 7,110,819 | 6,088,422 |
General and administrative | 603,037 | 588,841 | 2,085,577 | 1,796,843 |
Depreciation | 4,343,221 | 3,559,128 | 12,598,849 | 10,347,161 |
Intangible amortization expense | 1,728,352 | 2,723,705 | 6,419,083 | 8,811,619 |
Property acquisition expenses - affiliates | 476,656 | 770,915 | 583,275 | 1,034,065 |
Other property acquisition expenses | 377,255 | 598,210 | 560,961 | 1,076,986 |
Total operating expenses | 17,229,995 | 17,000,260 | 50,454,924 | 48,592,347 |
Operating income (loss) | 4,062,579 | 97,913 | 10,176,799 | -436,983 |
Other income (expense): | ' | ' | ' | ' |
Interest expense | -4,754,577 | -4,170,180 | -14,105,571 | -13,240,452 |
Deferred financing amortization expense | -335,962 | -913,391 | -1,077,073 | -2,900,719 |
Equity in earnings of real estate ventures | 203,178 | 206,761 | 626,013 | 660,764 |
Gain on sale of investment in unconsolidated joint venture | ' | ' | ' | 815,000 |
Other | 135,494 | 158,074 | -426,014 | -60,711 |
Net loss | -689,288 | -4,620,823 | -4,805,846 | -15,163,101 |
Less: Net loss attributable to the noncontrolling interests in our Operating Partnership | 4,506 | 17,784 | 25,249 | 67,480 |
Net income attributable to other noncontrolling interests | -8,463 | -7,611 | -28,951 | -34,197 |
Net loss attributable to Strategic Storage Trust, Inc. | ($693,245) | ($4,610,650) | ($4,809,548) | ($15,129,818) |
Net loss per share - basic | ($0.01) | ($0.11) | ($0.10) | ($0.38) |
Net loss per share - diluted | ($0.01) | ($0.11) | ($0.10) | ($0.38) |
Weighted average shares outstanding - basic | 52,404,653 | 43,774,622 | 49,236,315 | 39,690,382 |
Weighted average shares outstanding - diluted | 52,404,653 | 43,774,622 | 49,236,315 | 39,690,382 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net loss | ($689,288) | ($4,620,823) | ($4,805,846) | ($15,163,101) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | 352,346 | 664,135 | -494,052 | 606,509 |
Change in fair value of interest rate swap | 28,343 | -74,460 | 185,631 | -296,034 |
Other comprehensive income (loss) | 380,689 | 589,675 | -308,421 | 310,475 |
Comprehensive loss | -308,599 | -4,031,148 | -5,114,267 | -14,852,626 |
Comprehensive (income) loss allocated to noncontrolling interests: | ' | ' | ' | ' |
Comprehensive loss attributable to the noncontrolling interests in our Operating Partnership | 2,858 | 14,982 | 26,821 | 65,468 |
Comprehensive income attributable to other noncontrolling interests | -8,463 | -7,611 | -28,951 | -34,197 |
Comprehensive loss attributable to Strategic Storage Trust, Inc. | ($314,204) | ($4,023,777) | ($5,116,397) | ($14,821,355) |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Distributions | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning Balance at Dec. 31, 2012 | $256,100,405 | $46,184 | $383,072,118 | ($71,401,126) | ($61,929,145) | ($682,692) | $6,995,066 |
Beginning Balance (in shares) at Dec. 31, 2012 | ' | 46,184,742 | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock (in shares) | ' | 9,588,116 | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock | 103,127,672 | 9,589 | 103,118,083 | ' | ' | ' | ' |
Offering costs | -10,677,985 | ' | -10,677,985 | ' | ' | ' | ' |
Changes to redeemable common stock | 3,204,581 | ' | 3,204,581 | ' | ' | ' | ' |
Redemptions of common stock (in shares) | ' | -1,096,263 | ' | ' | ' | ' | ' |
Redemptions of common stock | -10,662,359 | -1,096 | -10,661,263 | ' | ' | ' | ' |
Issuance of restricted stock (in shares) | ' | 2,500 | ' | ' | ' | ' | ' |
Issuance of restricted stock | 2 | 2 | ' | ' | ' | ' | ' |
Distributions ($0.70 per share) | -25,780,208 | ' | ' | -25,780,208 | ' | ' | ' |
Distributions for noncontrolling interests | -220,077 | ' | ' | ' | ' | ' | -220,077 |
Issuance of shares for distribution reinvestment plan (in shares) | ' | 1,104,008 | ' | ' | ' | ' | ' |
Issuance of shares for distribution reinvestment plan | 11,316,639 | 1,104 | 11,315,535 | ' | ' | ' | ' |
Stock based compensation expense | 19,283 | ' | 19,283 | ' | ' | ' | ' |
Net loss attributable to Strategic Storage Trust, Inc. | -4,809,548 | ' | ' | ' | -4,809,548 | ' | ' |
Net income attributable to the noncontrolling interests | 3,702 | ' | ' | ' | ' | ' | 3,702 |
Foreign currency translation adjustment | -494,052 | ' | ' | ' | ' | -494,052 | ' |
Change in fair value of interest rate swap | 185,631 | ' | ' | ' | ' | 185,631 | ' |
Ending Balance at Sep. 30, 2013 | $321,313,686 | $55,783 | $479,390,352 | ($97,181,334) | ($66,738,693) | ($991,113) | $6,778,691 |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 55,783,103 | ' | ' | ' | ' | ' |
Consolidated_Statement_of_Stoc1
Consolidated Statement of Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Statement Of Stockholders Equity [Abstract] | ' |
Distributions, per share | $0.70 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities: | ' | ' |
Net loss | ($4,805,846) | ($15,163,101) |
Adjustments to reconcile net loss to cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 20,095,005 | 22,059,499 |
Noncash interest expense | 141,741 | 136,110 |
Expense related to issuance of restricted stock | 19,285 | 18,393 |
Equity in income of unconsolidated joint ventures | -604,299 | -588,852 |
Distributions from unconsolidated joint ventures | 664,173 | 612,201 |
Gain on sale of investment in unconsolidated joint venture | ' | -815,000 |
Foreign currency exchange (gain) loss | 180,157 | -119,864 |
Increase (decrease) in cash from changes in assets and liabilities: | ' | ' |
Restricted cash | -1,744,586 | -542,421 |
Other assets | -122,111 | -526,406 |
Accounts payable and other accrued liabilities | 1,316,849 | 1,916,597 |
Due to affiliates | -1,023,112 | -543,869 |
Net cash flows provided by operating activities | 14,117,256 | 6,443,287 |
Cash flows from investing activities: | ' | ' |
Purchases of real estate | -16,872,155 | -32,300,000 |
Additions to real estate facilities | -3,148,651 | -3,509,437 |
Development and construction of real estate facilities | -6,977,421 | -5,813,966 |
Deposits on acquisitions of real estate facilities | -500,000 | -2,334,059 |
Additional investment in unconsolidated joint venture | ' | -1,879,069 |
Proceeds from land disposition | ' | 1,978,746 |
Proceeds from sale of investment in unconsolidated joint venture | ' | 1,425,000 |
Net cash flows used in investing activities | -27,498,227 | -42,432,785 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of secured debt | 8,810,176 | 12,414,588 |
Principal payments on secured debt | -2,535,436 | -2,328,447 |
Repayment of secured debt | -9,595,526 | -32,500,000 |
Deferred financing costs | -390,084 | -746,774 |
Gross proceeds from issuance of common stock | 103,127,672 | 95,496,404 |
Offering costs | -10,677,985 | -10,193,365 |
Redemptions of common stock | -10,662,359 | -9,160,216 |
Distributions paid | -14,059,546 | -11,503,373 |
Distributions paid to noncontrolling interests | -215,280 | -193,078 |
Escrow receivable | 16,123 | 38,444 |
Due to affiliates | 248,208 | -49,548 |
Repurchase of limited partnership units in our Operating Partnership | ' | -396,738 |
Net cash flows provided by financing activities | 64,065,963 | 40,877,897 |
Effect of exchange rate changes on cash | -47,922 | 47,301 |
Increase in cash and cash equivalents | 50,637,070 | 4,935,700 |
Cash and cash equivalents, beginning of period | 13,998,391 | 13,217,410 |
Cash and cash equivalents, end of period | 64,635,461 | 18,153,110 |
Supplemental cash flow and non-cash transactions: | ' | ' |
Cash paid for interest | 14,205,524 | 13,305,331 |
Interest capitalized | 334,380 | 338,967 |
Distributions payable | 3,133,425 | 2,537,231 |
Issuance of shares pursuant to distribution reinvestment plan | $11,316,639 | $8,853,381 |
Organization
Organization | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization | ' |
Note 1. Organization | |
Strategic Storage Trust, Inc., a Maryland corporation (the “Company”), was formed on August 14, 2007 under the Maryland General Corporation Law for the purpose of engaging in the business of investing in self storage facilities. The Company’s year-end is December 31. As used in this report, “we” “us” and “our” refer to Strategic Storage Trust, Inc. | |
Strategic Capital Holdings, LLC, a Virginia limited liability company (our “Sponsor”), is our sponsor. Our Sponsor was formed on July 21, 2004 to engage in private structured offerings of limited partnerships and other entities with respect to the acquisition, management and disposition of commercial real estate assets. Our Sponsor owns a majority of Strategic Storage Holdings, LLC, which is the sole member of both our advisor and our property manager. | |
Our advisor is Strategic Storage Advisor, LLC, a Delaware limited liability company (our “Advisor”) which was formed on August 13, 2007. Our Advisor is responsible for managing our affairs on a day-to-day basis and identifying and making acquisitions and investments on our behalf under the terms of an advisory agreement we have with our Advisor (our “Advisory Agreement”). Some of the officers of our Advisor are also officers of our Sponsor and of us. | |
On August 24, 2007, our Advisor purchased 100 shares of our common stock for $1,000 and became our initial stockholder. Our Articles of Amendment and Restatement authorize 700,000,000 shares of common stock with a par value of $0.001 and 200,000,000 shares of preferred stock with a par value of $0.001. | |
Our operating partnership, Strategic Storage Operating Partnership, L.P., a Delaware limited partnership (our “Operating Partnership”), was formed on August 14, 2007. On August 24, 2007, our Advisor purchased a limited partnership interest in our Operating Partnership for $200,000 and on August 24, 2007, we contributed the initial $1,000 capital contribution we received to our Operating Partnership in exchange for the general partner interest. Our Operating Partnership owns, directly or indirectly through one or more special purpose entities, all of the self storage properties that we have acquired. As of September 30, 2013, we owned 99.55% of the limited partnership interests of our Operating Partnership. The remaining limited partnership interests are owned by our Advisor (0.04%) and unaffiliated third parties (0.41%). As the sole general partner of our Operating Partnership, we have the exclusive power to manage and conduct business of our Operating Partnership. We will conduct certain activities (such as selling packing supplies and locks and renting trucks or other moving equipment) through our taxable REIT subsidiaries (the “TRSs”), which are our wholly-owned subsidiaries. | |
Our property manager is Strategic Storage Property Management, LLC, a Delaware limited liability company (our “Property Manager”), which was formed in August 2007 to manage our properties. Our Property Manager derives substantially all of its income from the property management services it performs for us. | |
On March 17, 2008, we began our initial public offering of common stock (our “Initial Offering”). On May 22, 2008, we satisfied the minimum offering requirements of the Initial Offering and commenced formal operations. On September 16, 2011, we terminated the Initial Offering, having sold approximately 29 million shares for gross proceeds of approximately $289 million. On September 22, 2011, we commenced our follow-on public offering of stock for a maximum of 110,000,000 shares of common stock, consisting of 100,000,000 shares for sale to the public (our “Primary Offering”) and 10,000,000 shares for sale pursuant to our distribution reinvestment plan (collectively, our “Offering”). We intend to invest a substantial amount of the net proceeds from our Offering in self storage facilities and related self storage real estate investments. Based on the expiration date of our Offering and our sales pace, our board of directors believed that we would raise sufficient capital within the original two-year offering period to move to the next phase of our life cycle. Therefore, our Offering terminated as of the scheduled closing date (September 22, 2013). On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan to make certain minor revisions related to the closing of our Offering. Following the termination of our Offering, on September 23, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares under our amended and restated distribution reinvestment plan. The Form S-3 allows us to continue to offer shares pursuant to our amended and restated distribution reinvestment plan beyond September 22, 2013; however, we may terminate the distribution reinvestment plan offering at any time upon 10 days’ prior written notice to stockholders. The amended and restated distribution reinvestment plan was effective as of September 28, 2013. As of September 30, 2013, we had issued approximately 53 million shares of common stock for approximately $542 million in our Initial Offering and Offering and also issued 6.2 million shares of common stock in a private offering. | |
In connection with the close-down of our Offering and in light of current market conditions, our board of directors has been and is continuing to explore certain strategic alternatives to create stockholder liquidity. Over several months, we interviewed several investment banking firms to assist us in this process. After this extensive interview process, on May 30, 2013, we engaged Citigroup Global Markets Inc. to help us analyze these strategic alternatives. Our management and our board of directors are also exploring the possibility of becoming self-administered. However, there can be no assurance that the exploration of strategic alternatives will result in any particular outcome. In anticipation of a future possible liquidity event, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013. See Notes 8 and 11. | |
Effective June 1, 2012, the offering price of our shares of common stock increased from $10.00 per share to $10.79 per share. This increase was primarily based on the estimated per share value of our common stock of $10.79 that we announced on April 2, 2012, which was calculated based on the estimated value of our assets less the estimated value of our liabilities, or net asset value, divided by the number of shares outstanding on an adjusted fully diluted basis, calculated as of December 31, 2011. In light of the above-described net asset value calculation, our board of directors determined that it was appropriate to increase the per share offering price for new purchases of our shares commencing on June 1, 2012. This determination by our board of directors was subjective and was primarily based on (i) the estimated net asset value per share, which was predominantly based on an independent third party appraiser’s valuation of our properties as of December 31, 2011, (ii) the commissions and dealer manager fees payable in connection with the offering of our shares, (iii) our historical and anticipated results of operations and financial condition, (iv) our current and anticipated distribution payments, (v) our current and anticipated capital and debt structure, and (vi) our Advisor’s recommendations and assessment of our prospects and continued execution of our investment and operating strategies. | |
Our dealer manager is Select Capital Corporation, a California corporation (our “Dealer Manager”). Our Dealer Manager was responsible for marketing our shares that were offered pursuant to the Offering. Our chief executive officer, through a wholly-owned limited liability company, owns a 15% non-voting equity interest in our Dealer Manager. | |
As we accept subscriptions for shares of our common stock, we transfer substantially all of the net offering proceeds to our Operating Partnership as capital contributions in exchange for additional units of interest in our Operating Partnership. However, we are deemed to have made capital contributions in the amount of the gross offering proceeds received from investors, and our Operating Partnership is deemed to have simultaneously paid the sales commissions and other costs associated with the Offering. In addition, our Operating Partnership is structured to make distributions with respect to limited partnership units (except for Class D units) that will be equivalent to the distributions made to holders of our common stock. In March 2011, we adopted Amendment No. 1 to our Operating Partnership’s First Amended and Restated Limited Partnership Agreement, which established Class D Units, and our Operating Partnership issued approximately 120,000 Class D Units in connection with our acquisition of the Las Vegas VII and Las Vegas VIII properties. The Class D Units have all of the rights, powers, duties and preferences of our Operating Partnership’s other limited partnership units, except that they are subject to an annual distribution limit (initially zero percent) and the holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights until the occurrence of a specified event (see Note 8). Finally, a limited partner in our Operating Partnership may later exchange his or her limited partnership units in our Operating Partnership for shares of our common stock at any time after one year following the date of issuance of their limited partnership units, subject to certain restrictions as outlined in the limited partnership agreement. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as it is acting as our Advisor pursuant to our Advisory Agreement. | |
As of September 30, 2013, we wholly-owned 113 self storage facilities located in 17 states (Alabama, Arizona, California, Florida, Georgia, Illinois, Kentucky, Mississippi, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas and Virginia) and Canada comprising approximately 72,190 units and approximately 9.5 million rentable square feet. As of September 30, 2013, we also had noncontrolling interests in eight additional self storage facilities. Of those interests, one has been deemed to be a controlling interest and is therefore consolidated in our consolidated financial statements as discussed in Note 2. Additionally, we have an interest in a net leased industrial property in California with 356,000 rentable square feet leased to a single tenant. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||||||||
Note 2. Summary of Significant Accounting Policies | |||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. | |||||||||||||||||
Effective September 15, 2009, the ASC was established as the single source of authoritative nongovernmental GAAP. Prior to the issuance of the ASC, all GAAP pronouncements were issued in separate topical pronouncements in the form of statements, staff positions or Emerging Issues Task Force Abstracts, and were referred to as such. While the ASC does not change GAAP, it introduces a new structure and supersedes all previously issued non-SEC accounting and reporting standards. In addition to the ASC, the Company is still required to follow SEC rules and regulations relating to the preparation of financial statements. The Company’s accounting policies are consistent with the guidance set forth by both the ASC and the SEC. | |||||||||||||||||
Reclassifications | |||||||||||||||||
Certain amounts previously reported in our 2012 financial statements have been reclassified to conform to the fiscal 2013 presentation. | |||||||||||||||||
Principles of Consolidation | |||||||||||||||||
Our financial statements, the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, the financial statements of Self Storage REIT, LLC (REIT I) and Self Storage REIT II, LLC (REIT II), and the accounts of variable interest entities (VIEs) for which we are the primary beneficiary are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests both as of and during the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
Consolidation Considerations for Our Investments in Joint Ventures | |||||||||||||||||
Current accounting guidance provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of the VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of September 30, 2013 and December 31, 2012, we had entered into contracts/interests that are deemed to be variable interests in VIEs; those variable interests include both lease agreements and equity investments. We have evaluated those variable interests against the criteria for consolidation and determined that we are not the primary beneficiary of certain investments discussed further in the “Equity Investments” section of this note. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, we had an equity interest in a self storage property located in San Francisco, California (“SF property”) which was deemed to be a VIE of which we are the primary beneficiary. As such, the SF property has been consolidated in our consolidated financial statements since we acquired our interest in the property through the REIT I merger. In January 2010, we acquired an approximately 2% additional interest in the SF property, bringing our total interest to approximately 12%. The SF property is owned by a Delaware Statutory Trust (DST), and by virtue of the trust agreement the investors in the trust have no direct or indirect ability through voting rights to make decisions about the DST’s significant activities. The operating partnership of REIT I (the “REIT I Operating Partnership”) has also entered into a lease agreement for the SF property, in which the REIT I Operating Partnership is the tenant, which exposes it to losses of the VIE that could be significant to the VIE and also allows it to direct activities of the VIE that determine its economic performance by means of its operation of the leased facility. The lease has an initial term of ten years which commenced on December 19, 2006. The initial term of the lease may be extended at the option of the REIT I Operating Partnership for up to four successive five year terms. As of September 30, 2013, the consolidated joint venture had net real estate assets of approximately $16.6 million. Such assets are only available to satisfy the obligations of the SF property. We have also consolidated approximately $10.1 million of secured debt and approximately $5.7 million of noncontrolling interest related to this entity. The lenders of the secured debt have no recourse to other Company assets. Our Sponsor has entered into an agreement to indemnify us for any losses as a result of potential shortfalls in the lease payments required to be made by the REIT I Operating Partnership. Despite such indemnification, we continue to be deemed the primary beneficiary, as our Sponsor is not deemed to have a variable interest in the SF property. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets and of assets held by equity method investees, and the useful lives of real estate assets and intangibles. Actual results could materially differ from those estimates. | |||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. | |||||||||||||||||
We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk is mitigated by only investing in or through major financial institutions. | |||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of certain of our loan agreements. | |||||||||||||||||
Real Estate Purchase Price Allocation | |||||||||||||||||
We account for acquisitions in accordance with accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date we have not allocated any portion of the purchase price to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. We preliminarily allocated approximately $0.7 million of purchase price to intangible assets to recognize the value of in-place leases related to our acquisitions in the first nine months of 2013. We do not expect, nor to date have we recorded, intangible assets for the value of tenant relationships because we will not have concentrations of significant tenants and the average tenant turnover is fairly frequent. Our acquisition-related transaction costs are required to be expensed as incurred. During the three months ended September 30, 2013 and 2012, we expensed approximately $0.9 and $1.4 million, respectively, of acquisition related transaction costs and during the nine months ended September 30, 2013 and 2012, we expensed approximately $1.1 and $2.1 million, respectively, of acquisition related transaction costs. | |||||||||||||||||
Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense. | |||||||||||||||||
Evaluation of Possible Impairment of Long-Lived Assets | |||||||||||||||||
Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess | |||||||||||||||||
the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. As of September 30, 2013 and December 31, 2012, no impairment losses have been recognized. | |||||||||||||||||
Equity Investments | |||||||||||||||||
Our investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, our investments in real estate ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements. | |||||||||||||||||
Investments representing passive preferred equity and/or minority interests are accounted for under the cost method. Under the cost method, our investments in real estate ventures are carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments. | |||||||||||||||||
Through mergers with REIT I and REIT II in 2009, we acquired five preferred equity and/or minority interests in unconsolidated joint ventures (one of which became wholly-owned in 2011 and another of which was sold in May 2012), all of which were deemed to be VIEs. We have evaluated each variable interest against the amended criteria for consolidation and determined that we are not the primary beneficiary, generally due to our inability to direct significant activities that determine the economic performance of the VIE. Two of those investments are passive or limited partner interests in self storage facilities (such properties are owned by DSTs, and by virtue of the related trust agreements, the investors have no direct or indirect ability through voting rights to make decisions about the DSTs significant activities) and are therefore accounted for under the cost method; our aggregate investment therein is approximately $0.1 million. Individually our ownership interest in those investments ranged from approximately 0.28% to 1.49%; the carrying value of the investments ranged from approximately $27,000 to $100,000 and our risk of loss is limited to our individual investment therein. | |||||||||||||||||
The remaining interest is in a net leased industrial property (“Hawthorne property”) in California with 356,000 rentable square feet leased to a single tenant. This investment is accounted for under the equity method of accounting and our risk of loss is limited to our investment, including our maximum exposure under the terms of a debt guarantee. We own a 12% interest in Westport LAX LLC, the joint venture that acquired the Hawthorne property and the carrying value in such investment is approximately $1.3 million. Hawthorne LLC, an affiliate of our Sponsor, owns 78% of Westport LAX LLC, and we have a preferred equity interest in Hawthorne LLC which entitles us to distributions equal to 10% per annum on our investment of approximately $6.9 million and a non-interest bearing receivable of approximately $0.4 million. The preferred equity interest has a redemption date in November 2014, subject to extension at our sole discretion. The preferred equity interest may be called at any time in whole or part by Hawthorne LLC or redeemed at any time by us. The remaining 10% interest in Westport LAX LLC is owned by a third party, who is also the co-manager, along with our Sponsor, of the Hawthorne property. Such third party is the acting property manager and directs the operating activities of the property that determine its economic performance. We, along with other non-affiliated parties, are guarantors on the approximately $19.0 million loan used to secure the Hawthorne property; the loan has a maturity date of August 1, 2020. As of September 30, 2013, our maximum exposure to loss as a result of our involvement with this VIE, consisting of our investment balances and our guarantee of the secured debt, totaled approximately $27.6 million. | |||||||||||||||||
Revenue Recognition | |||||||||||||||||
Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets. | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. | |||||||||||||||||
Real Estate Facilities | |||||||||||||||||
Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. | |||||||||||||||||
Depreciation of Real Property Assets | |||||||||||||||||
Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives. | |||||||||||||||||
Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: | |||||||||||||||||
Description | Standard Depreciable Life | ||||||||||||||||
Land | Not Depreciated | ||||||||||||||||
Buildings | 30 to 35 years | ||||||||||||||||
Site Improvements | 7 to 15 years | ||||||||||||||||
Depreciation of Personal Property Assets | |||||||||||||||||
Personal property assets, consisting primarily of furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of September 30, 2013 and December 31, 2012, accumulated amortization of in-place lease intangibles totaled approximately $42.8 million and $36.4 million, respectively. | |||||||||||||||||
Amortization of Deferred Financing Costs | |||||||||||||||||
Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of September 30, 2013 and December 31, 2012, accumulated amortization of deferred financing costs totaled approximately $5.5 million and $4.4 million, respectively. | |||||||||||||||||
Organization and Offering Costs | |||||||||||||||||
Pursuant to our Advisory Agreement, our Advisor may fund organization and offering costs on our behalf. We are required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor must reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Such costs will be recognized as a liability when we have a present responsibility to reimburse our Advisor, which is defined in our Advisory Agreement as the date we satisfied the minimum offering requirements of the primary offering portion of our Initial Offering (which occurred on May 22, 2008). If at any point in time we determine that the total organization and offering costs are expected to exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering, we will recognize such excess as a capital contribution from our Advisor. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organization and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering. Offering costs are recorded as an offset to additional paid-in capital, and organization costs are recorded as an expense. | |||||||||||||||||
Redeemable Common Stock | |||||||||||||||||
We have adopted a share redemption program that may enable stockholders to sell their shares to us in limited circumstances. | |||||||||||||||||
We record amounts that are redeemable under the share redemption program as redeemable common stock in the accompanying consolidated balance sheets since the shares are mandatorily redeemable at the option of the holder and | |||||||||||||||||
therefore their redemption is outside our control. The maximum amount redeemable under our share redemption program is limited to the number of shares we could repurchase with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable but that are contingent on an event that is likely to occur (e.g., the passage of time) should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheets. | |||||||||||||||||
In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. Our redeemable common shares are contingently redeemable at the option of the holder. When we determine we have a mandatory obligation to repurchase shares under the share redemption program, we will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. | |||||||||||||||||
During the three months ended September 30, 2013, we redeemed approximately 0.4 million shares of common stock for approximately $3.7 million ($9.71 per share). As of September 30, 2013, we had redemption requests for approximately 247,000 shares of common stock for approximately $2.4 million that were redeemed pursuant to the terms of the share redemption program on October 31, 2013 and such amount was reclassified from redeemable common stock to accounts payable and accrued liabilities in the consolidated balance sheets as of September 30, 2013. We have funded all redemptions using proceeds from the sale of shares pursuant to our distribution reinvestment plan. Our board of directors may choose to amend, suspend or terminate our share redemption program upon 30 days’ written notice at any time. | |||||||||||||||||
In anticipation of a future possible liquidity event, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013. See Notes 8 and 11 for further discussion of our share redemption program. | |||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in other comprehensive income (loss) as a separate component of stockholders’ equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense). For the three and nine months ended September 30, 2013, we recorded a gain of approximately $140,000 and a loss of approximately $180,000, respectively, and, for the three and nine months ended September 30, 2012, we recorded a gain of approximately $165,000 and $120,000, respectively. | |||||||||||||||||
Accounting for Equity Awards | |||||||||||||||||
The cost of restricted stock is required to be measured based on the grant-date fair value and the cost to be recognized over the relevant service period. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value: | |||||||||||||||||
• | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | ||||||||||||||||
• | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and | ||||||||||||||||
• | Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity. | ||||||||||||||||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety. | |||||||||||||||||
The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we present herein are indicative of amounts that may ultimately be realized upon sale or other disposition of these assets. | |||||||||||||||||
Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related assets and investments in unconsolidated joint ventures and related liabilities assumed and equity consideration related to our acquisitions. The fair values of these assets, liabilities and equity consideration were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets, liabilities and common stock as of the acquisition dates were derived using Level 3 inputs. | |||||||||||||||||
The carrying amounts of cash and cash equivalents, tenant accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments. | |||||||||||||||||
The table below summarizes our fixed rate notes payable at September 30, 2013. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Fixed Rate Secured Debt | $ | 294,382,739 | $ | 285,749,948 | $ | 298,636,303 | $ | 287,912,016 | |||||||||
As of September 30, 2013, we had an interest rate swap on one of our loans (See Notes 5 and 6). The valuation of this instrument was 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 and implied volatilities. 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 curves. | |||||||||||||||||
To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | |||||||||||||||||
Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2013, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of September 30, 2013, we had $360,702 of Level 2 derivatives (interest rate swap) classified in accounts payable and accrued liabilities on our consolidated balance sheet. | |||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||
The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges. | |||||||||||||||||
For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the consolidated statements of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings and subsequently reclassified to earnings when the hedged transaction affects earnings. | |||||||||||||||||
Noncontrolling Interest in Consolidated Entities | |||||||||||||||||
We account for the noncontrolling interest in our Operating Partnership in accordance with amended accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. In addition, we account for the noncontrolling interest in the SF property in accordance with the amended accounting guidance. The noncontrolling interests shall continue to be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interest balance. | |||||||||||||||||
Income Taxes | |||||||||||||||||
We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2008. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to Federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to Federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for Federal income tax purposes. We have concluded that there are no significant uncertain tax positions requiring recognition or disclosure in our consolidated financial statements. | |||||||||||||||||
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and Federal income and excise taxes on our undistributed income. | |||||||||||||||||
We have filed an election to treat the TRSs as taxable REIT subsidiaries. In general, the TRSs may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business. The TRSs are subject to corporate Federal and state income tax. The TRSs follow accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities. | |||||||||||||||||
Per Share Data | |||||||||||||||||
Basic earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares outstanding, including all restricted stock grants as though fully vested. For the three and nine months ended September 30, 2013 and 2012, 6,250 shares, of unvested restricted stock were not included in the diluted weighted average shares as such shares were antidilutive. | |||||||||||||||||
Recently Issued Accounting Guidance | |||||||||||||||||
ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”), was issued in February 2013 and does not change the current requirements for reporting net income or other comprehensive income. However, ASU 2013-02 requires disclosure of significant amounts reclassified out of accumulated other comprehensive income in their entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We adopted this ASU in the interim period ending March 31, 2013 and its adoption did not have a material impact on our consolidated financial statements or financial statement disclosures. |
Madison_County_Self_Storage_DS
Madison County Self Storage, DST Acquisition | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Madison County Self Storage, DST Acquisition | ' |
Note 3. Madison County Self Storage, DST Acquisition | |
During the third and fourth quarters of 2012, we purchased beneficial interests (the “Madison Interests”) in Madison County Self Storage, DST (“Madison DST”), a Delaware statutory trust sponsored by our Sponsor, from 13 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. Such purchases were completed on December 28, 2012, when we acquired the remaining 52%, such that we then owned 100% of the Madison Interests. The agreed upon purchase price of the Madison Interests acquired, based on the aggregate appraised value of the two properties owned by Madison DST, was approximately $10.7 million. Consideration provided consisted of approximately $3.1 million in cash along with the issuance of approximately 84,000 limited partnership units in our Operating Partnership and the assumption of an approximately $6.5 million bank loan held by Madison DST (the “Bank of America Loan – 4”). Madison DST leased its properties to a master tenant (the “Tenant”) on a triple-net basis pursuant to a master lease (the “Lease”). The Tenant is owned by affiliates of the Sponsor. Such Lease was terminated effective December 28, 2012. | |
We paid our Advisor approximately $133,000 in acquisition fees in connection with these acquisitions. | |
The Madison DST owns two self storage facilities located in Mississippi with an aggregate of approximately 895 units and 149,300 rentable square feet. The properties owned by the Madison DST are subject to the Bank of America Loan – 4, which had an aggregate principal balance of approximately $6.5 million as of the acquisition dates of the Madison Interests. The loan bears a fixed interest rate of 6.33% and had an original term of ten years and matures on October 1, 2017. The loan is secured only by the two properties owned by the Madison DST that obtained such loan |
Real_Estate_Facilities
Real Estate Facilities | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||
Real Estate Facilities | ' | ||||||||||||||||||||||
Note 4. Real Estate Facilities | |||||||||||||||||||||||
The following summarizes our activity in real estate facilities during the nine months ended September 30, 2013: | |||||||||||||||||||||||
Real estate facilities | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 604,727,895 | |||||||||||||||||||||
Facility acquisitions | 16,152,155 | ||||||||||||||||||||||
Impact of foreign exchange rate changes | (969,080 | ) | |||||||||||||||||||||
Improvements and additions | 14,969,408 | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 634,880,378 | |||||||||||||||||||||
Accumulated depreciation | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | (29,840,320 | ) | ||||||||||||||||||||
Depreciation expense | (12,080,887 | ) | |||||||||||||||||||||
Balance at September 30, 2013 | $ | (41,921,207 | ) | ||||||||||||||||||||
The following table summarizes the preliminary purchase price allocation for our acquisitions for the nine months ended September 30, 2013: | |||||||||||||||||||||||
Property | Acquisition | Real Estate | Intangibles | Total(1) | 2013 | 2013 | |||||||||||||||||
Date | Assets | Revenue(2) | Property | ||||||||||||||||||||
Operating | |||||||||||||||||||||||
Income(2)(3) | |||||||||||||||||||||||
North Charleston – SC | 7/10/13 | $ | 6,152,000 | $ | 420,000 | $ | 6,572,000 | $ | 166,076 | $ | 80,621 | ||||||||||||
Toms River II – NJ | 8/28/13 | 4,900,000 | 300,000 | 5,200,000 | 49,830 | 31,268 | |||||||||||||||||
Pickering – ONT (4) (5) | 8/29/13 | 5,100,155 | — | 5,100,155 | — | — | |||||||||||||||||
Total | $ | 16,152,155 | $ | 720,000 | $ | 16,872,155 | $ | 215,906 | $ | 111,889 | |||||||||||||
(1) | The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting. | ||||||||||||||||||||||
(2) | The operating results of the facilities acquired above have been included in the Company’s statements of operations since their respective acquisition date. | ||||||||||||||||||||||
(3) | Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses. | ||||||||||||||||||||||
(4) | Allocation (excludes estimated development costs) based on Canadian/U.S. exchange rate as of the date of acquisition. | ||||||||||||||||||||||
(5) | Property is under construction; therefore the property generated no revenue or operating income as of September 30, 2013. | ||||||||||||||||||||||
The purchase price allocations included above are preliminary and therefore, subject to change upon the completion of our analysis of appraisals and other information related to the acquisitions. We anticipate finalizing the purchase price allocations by December 31, 2013, as further evaluations are completed and additional information is received from third parties. | |||||||||||||||||||||||
The above transactions were acquired from unaffiliated third parties and were purchased entirely with cash. Total acquisition fees paid to our Advisor for the three months ended September 30, 2013 were approximately $0.4 million. |
Secured_Debt
Secured Debt | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Secured Debt | ' | ||||||||||||||||
Note 5. Secured Debt | |||||||||||||||||
Our secured debt is summarized as follows: | |||||||||||||||||
Carrying value as of: | |||||||||||||||||
Encumbered Property | September 30, | December 31, | Interest | Maturity | |||||||||||||
2013 | 2012 | Rate | Date | ||||||||||||||
Montgomery | $ | 2,712,776 | $ | 2,768,704 | 6.42 | % | 7/1/16 | ||||||||||
Seabrook | 4,462,788 | 4,516,470 | 5.73 | % | 1/1/16 | ||||||||||||
Greenville | 2,236,323 | 2,263,211 | 5.65 | % | 3/1/16 | ||||||||||||
Kemah | 8,765,556 | 8,858,838 | 6.2 | % | 6/1/16 | ||||||||||||
Memphis | 2,474,814 | 2,502,922 | 5.67 | % | 12/1/16 | ||||||||||||
Tallahassee | 7,469,964 | 7,537,926 | 6.16 | % | 8/1/16 | ||||||||||||
Houston | 1,990,790 | 2,018,754 | 5.67 | % | 2/1/17 | ||||||||||||
San Francisco (consolidated VIE) | 10,290,056 | 10,387,192 | 5.84 | % | 12/1/16 | ||||||||||||
Lake Forest | 18,000,000 | 18,000,000 | 6.47 | % | 10/1/17 | ||||||||||||
Las Vegas I | 1,516,923 | 1,530,923 | 5.72 | % | 6/1/17 | ||||||||||||
Pearland | 3,449,304 | 3,480,298 | 5.93 | % | 7/1/17 | ||||||||||||
Daphne | 1,422,892 | 1,544,325 | 5.47 | % | 8/1/20 | ||||||||||||
Mesa | 2,985,527 | 3,036,098 | 5.38 | % | 4/1/15 | ||||||||||||
Riverdale | 4,800,000 | 4,800,000 | 4 | % | 5/14/14 | ||||||||||||
Prudential Portfolio Loan (1) (2) | 31,173,039 | 31,547,772 | 5.42 | % | 9/5/19 | ||||||||||||
Dufferin – Toronto – Ontario, Canada (3) | 6,427,398 | 6,812,855 | 5.22 | % | 12/15/13 | ||||||||||||
Citi Loan (4) | 28,178,378 | 28,466,942 | 5.77 | % | 2/6/21 | ||||||||||||
Bank of America Loan – 1 (5) | 4,342,021 | 4,400,398 | 5.18 | % | 11/1/15 | ||||||||||||
Bank of America Loan – 2 (6) | 6,579,325 | 6,667,782 | 5.18 | % | 11/1/15 | ||||||||||||
Bank of America Loan – 3 (7) | 11,825,662 | 11,984,654 | 5.18 | % | 11/1/15 | ||||||||||||
Prudential – Long Beach (8) | 6,560,228 | 6,637,926 | 5.27 | % | 9/5/19 | ||||||||||||
SF Bay Area – Morgan Hill (19) | — | 2,928,860 | 5.75 | % | 4/1/13 | ||||||||||||
SF Bay Area – Vallejo | 4,319,591 | 4,390,176 | 6.04 | % | 6/1/14 | ||||||||||||
Citi Las Vegas Loan (9) | 7,463,187 | 7,545,688 | 5.26 | % | 6/6/21 | ||||||||||||
ING Loan (10) | 21,347,698 | 21,587,669 | 5.47 | % | 7/1/21 | ||||||||||||
Ladera Ranch | 6,724,791 | 6,821,300 | 5.84 | % | 6/1/16 | ||||||||||||
SF Bay Area – San Lorenzo | 2,043,702 | 2,099,622 | 6.07 | % | 1/1/14 | ||||||||||||
Las Vegas V | 1,638,699 | 1,667,485 | 5.02 | % | 7/1/15 | ||||||||||||
Second Restated KeyBank Loan (11) | 45,000,000 | 51,666,666 | 4.68 | % | 12/24/14 | (11) | |||||||||||
Mississauga (12) – Ontario, Canada | 7,016,261 | 6,841,134 | 5 | % | 10/31/14 | ||||||||||||
Chantilly (13) | 3,435,376 | 3,474,712 | 4.75 | % | 6/6/22 | ||||||||||||
Brampton (14) – Ontario, Canada | 5,565,898 | 208,086 | 5.25 | % | 6/30/16 | ||||||||||||
Citi Stockade Loan – 1 (15) | 18,200,000 | 18,200,000 | 4.6 | % | 10/1/22 | ||||||||||||
KeyBank CMBS Loan (16) | 31,000,000 | 31,000,000 | 4.65 | % | 11/1/22 | ||||||||||||
Citi Stockade Loan – 2 (17) | 19,362,500 | 19,362,500 | 4.61 | % | 11/6/22 | ||||||||||||
Bank of America Loan – 4 (18) | 6,412,469 | 6,459,043 | 6.33 | % | 10/1/17 | ||||||||||||
Citi SF Bay Area – Morgan Hill Loan (19) | 3,000,000 | — | 4.08 | % | 3/6/23 | ||||||||||||
Net fair value adjustment | (434,431 | ) | (576,173 | ) | |||||||||||||
Total secured debt | $ | 349,759,505 | $ | 353,440,758 | |||||||||||||
(1) | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas II). Each of the individual loans is cross-collateralized by the other ten. | ||||||||||||||||
(2) | Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%. | ||||||||||||||||
(3) | On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank’s floating rate plus 3.5% (subject to a reduction in certain circumstances). The rate in effect at September 30, 2013 was 5.22%. | ||||||||||||||||
(4) | This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago – 95th St., Chicago – Western Ave., Chicago – Ogden Ave., Chicago – Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of September 30, 2013 was approximately $50.2 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(5) | This loan encumbers the Lawrenceville I and II properties. | ||||||||||||||||
(6) | This loan encumbers the Concord, Hickory and Morganton properties. | ||||||||||||||||
(7) | This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property. | ||||||||||||||||
(8) | This loan is cross-collateralized by the 11 properties discussed in footnote (1) to this table. | ||||||||||||||||
(9) | This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of September 30, 2013 was approximately $9.1 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(10) | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans have an original term of 30 years and mature on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021. | ||||||||||||||||
(11) | As of September 30, 2013 and December 31, 2012, this loan was collateralized by the Homeland Portfolio. This loan is a variable rate loan, such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 4.68% as of September 30, 2013; however, we were required to purchase an interest rate swap with a notional amount of $45 million, and, inclusive of the interest rate swap, the effective fixed interest rate is 5.41%. For additional discussion, see “Second Restated KeyBank Loan” below. This loan was paid off in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the “KeyBank Revolver”), with a maturity date of October 25, 2016. The KeyBank Revolver is further described in Note 11. | ||||||||||||||||
(12) | In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2% (totaling 5.00% as of September 30, 2013). | ||||||||||||||||
(13) | The net book value of the Chantilly property as of September 30, 2013 was approximately $6.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(14) | In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2.25% (totaling 5.25% as of September 30, 2013). | ||||||||||||||||
(15) | This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of September 30, 2013 was approximately $34.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(16) | This portfolio loan encumbers nine properties (Los Angeles – La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area – Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of September 30, 2013 was approximately $41.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(17) | This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of September 30, 2013 was approximately $37.6 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(18) | This loan encumbers the Ridgeland and Canton properties. | ||||||||||||||||
(19) | The SF Bay Area – Morgan Hill loan was paid off on March 5, 2013 using proceeds from the Citi SF Bay Area – Morgan Hill Loan. For additional discussion, see “Citi SF Bay Area – Morgan Hill Loan” below. | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, the Company’s secured promissory notes shown above were secured by the properties shown above, which properties had net book values of approximately $583 million and $587 million, respectively. | |||||||||||||||||
Second Restated KeyBank Loan | |||||||||||||||||
On December 27, 2011, in connection with the acquisition of the Homeland Portfolio (an $80 million portfolio of 10 properties in Atlanta, Georgia and two properties in Jacksonville, Florida), our Operating Partnership and various property owning SPEs entered into a second amended and restated secured credit facility with KeyBank, National Association (“KeyBank”) with total commitments of $82 million (such facility replaced our then existing $30 million Restated KeyBank Credit Facility, which had approximately $20 million outstanding before the purchase of the Homeland Portfolio) and we drew down an additional approximately $56.6 million thereunder. On January 12, 2012, we drew down an additional approximately $5.4 million in connection with the repayment of the previously outstanding debt on our Crescent Springs, Florence and Walton properties, bringing the total amount outstanding to $82 million. Such credit facility, as amended (the “Second Restated KeyBank Loan”) was converted from a revolving credit facility to a term loan on August 15, 2012 and the principal balance was reduced on October 10, 2012, from $82 million to $55 million, through the use of the majority of the proceeds from the KeyBank CMBS Loan. | |||||||||||||||||
Beginning on November 30, 2012, we were required to make monthly payments in the amount of $1,666,667 until the outstanding principal balance of the Second Restated KeyBank Loan was reduced to $45 million, which occurred on April 5, 2013. The remaining $45 million matures on December 24, 2014, subject to two, one-year extension options (subject to the fulfillment of certain conditions), and requires monthly interest-only payments. | |||||||||||||||||
We were required to purchase an interest rate swap with a notional amount of $45 million, which requires us to pay an effective fixed interest rate of approximately 5.41% on the hedged portion of the debt. For the remaining amount outstanding, under the terms of the Second Restated KeyBank Loan, our Operating Partnership had the option of selecting one of three variable interest rates which had applicable spreads. | |||||||||||||||||
The Second Restated KeyBank Loan is secured by cross-collateralized first mortgage liens or first lien deeds of trust on all properties in the Homeland Portfolio and is cross-defaulted to any recourse debt of $25 million or greater in the aggregate or non-recourse debt of $75 million or greater in the aggregate. Our Operating Partnership may prepay the Second Restated KeyBank Loan, in whole or in part, at any time without penalty. Pursuant to that certain guaranty dated December 27, 2011 in favor of KeyBank, we serve as a guarantor of all obligations due under the Second Restated KeyBank Loan. | |||||||||||||||||
In connection with the Second Restated KeyBank Loan, our Operating Partnership paid customary lender fees, legal fees and other expenses. | |||||||||||||||||
Per the terms of the Second Restated KeyBank Loan, we were required to fund a $1.55 million interest reserve account at closing, which KeyBank may draw upon on a monthly basis in an amount equal to the shortfall between the net operating income of the mortgaged properties and the interest on the Second Restated KeyBank Loan. We are required to replenish the interest reserve account if it falls below a certain threshold, but will be refunded the entire balance upon achieving (as defined therein) a debt service coverage ratio (“DSCR”) of 1.30 to 1 for two consecutive quarters provided no event of default then exists. | |||||||||||||||||
The Second Restated KeyBank Loan contains a number of customary representations, warranties, indemnities and covenants, including, but not limited to, the following (as defined therein and tested as of the close of each fiscal quarter): | |||||||||||||||||
• | a maximum total leverage ratio (57.5% on October 1, 2012 and decreasing to 55% on October 1, 2013 and 50% on October 1, 2014); | ||||||||||||||||
• | a minimum interest service coverage ratio (currently 1.60 and increasing to 1.75 on January 1, 2014); | ||||||||||||||||
• | a minimum fixed charge ratio (currently 1.35 and increasing to 1.50 on January 1, 2014); | ||||||||||||||||
• | a minimum DSCR (beginning on March 31, 2014 at 1.10 and increasing to 1.30 on March 31, 2015 and 1.40 on March 31, 2016); | ||||||||||||||||
• | a minimum liquidity (unencumbered cash and cash equivalents plus marketable securities) of $2 million; | ||||||||||||||||
• | a minimum tangible net worth of at least $175 million plus 75% of the net proceeds of our ongoing public offering (less funded share redemptions, but in no event may our net worth be less than $175 million); | ||||||||||||||||
• | a required loan to value ratio related to the Homeland Portfolio equal to no more than 65%; and | ||||||||||||||||
• | a required debt yield related to the Homeland Portfolio of 3% commencing on January 1, 2013 and increasing to 4% on July 1, 2013, 6% on January 1, 2014, 8% on July 1, 2014 and 10.5% on January 1, 2015. | ||||||||||||||||
We have ten business days from the date on which any violation of the above covenants occurs in which to cure the violation, to the extent the violation can be cured with a cash payment. The terms of the Second Restated KeyBank Loan also limit the extent to which we and our Operating Partnership may incur additional debt without the consent of KeyBank. | |||||||||||||||||
The Second Restated KeyBank Loan was paid in full in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the “KeyBank Revolver”), as discussed further in Note 11. | |||||||||||||||||
Citi SF Bay Area – Morgan Hill Loan | |||||||||||||||||
On March 5, 2013, we entered into a loan agreement with Citigroup Global Markets Realty Corp. in the principal amount of $3 million. The proceeds from the loan were used to pay down the then outstanding loan collateralized by the SF Bay Area – Morgan Hill property. The new loan matures on March 6, 2023 and bears a fixed interest rate of 4.08% per annum on a 30-year amortization schedule with required monthly payments of interest only for the first five years. The loan contains a number of customary terms and covenants. | |||||||||||||||||
The following table presents the future principal payment requirements on outstanding secured debt as of September 30, 2013: | |||||||||||||||||
2013 | $ | 7,326,186 | |||||||||||||||
2014 | 21,930,121 | ||||||||||||||||
2015 | 30,578,426 | ||||||||||||||||
2016 | 97,233,220 | ||||||||||||||||
2017 | 33,980,454 | ||||||||||||||||
2018 and thereafter | 159,145,529 | ||||||||||||||||
Total payments (1) (2) | 350,193,936 | ||||||||||||||||
Unamortized fair value adjustment | (434,431 | ) | |||||||||||||||
Total | $ | 349,759,505 | |||||||||||||||
-1 | Debt denominated in foreign currency has been converted at the conversion rate in effect as of the end of the period. | ||||||||||||||||
-2 | This table reflects the terms of the KeyBank Revolver discussed in Note 11. | ||||||||||||||||
We record the amortization of debt discounts related to fair value adjustments to interest expense. The weighted average interest rate of the Company’s fixed rate debt as of September 30, 2013 was approximately 5.39%. |
Derivative_Instruments_Cash_Fl
Derivative Instruments - Cash Flow Hedge of Interest Rate Risk | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Derivative Instruments - Cash Flow Hedge of Interest Rate Risk | ' | ||||||||||||
Note 6. Derivative Instruments – Cash Flow Hedge of Interest Rate Risk | |||||||||||||
Our objectives in using interest rate derivatives are to add stability to interest expense and to manage our exposure to interest rate movements. To accomplish this objective, we use interest rate swaps as part of our 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 us making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. | |||||||||||||
The effective portion of the change in the fair value of the derivative designated and that qualifies as a cash flow hedge is recorded in accumulated other comprehensive income (“AOCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During 2012 and 2013, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings, of which there were none during the three and nine months ended September 30, 2013 and 2012. | |||||||||||||
Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate debt. During the three and nine months ended September 30, 2013, approximately $0.1 million and $0.2 million, respectively were reclassified from AOCI to interest expense. Over the next twelve months, we estimate that an additional approximately $0.3 million will be reclassified from AOCI to interest expense. | |||||||||||||
As of September 30, 2013, we had one derivative outstanding, which was an interest rate derivative that was designated as a cash flow hedge of interest rate risk: | |||||||||||||
Interest Rate Derivative | Number of | Notional | |||||||||||
Instruments | |||||||||||||
Interest Rate Swaps | 1 | $ | 45,000,000 | ||||||||||
The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet as of September 30, 2013 and December 31, 2012: | |||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||
Location | Location | ||||||||||||
Interest rate derivatives | |||||||||||||
Assets | Other assets | $ | — | Other assets | $ | — | |||||||
Liabilities | Accounts payable and | $ | 360,702 | Accounts payable and | $ | 546,333 | |||||||
accrued liabilities | accrued liabilities | ||||||||||||
We have agreements with our derivative counterparty that contain a provision where if we either default or are capable of being declared in default, including default where repayment of the indebtedness has not been accelerated, on any of our indebtedness, then we could also be declared in default on our derivative obligations. | |||||||||||||
Certain of our agreements with our derivative counterparties contain provisions where if a specified event or condition (Credit Event Upon Merger) occurs that materially changes our creditworthiness in an adverse manner, we may be required to fully collateralize our obligations under the derivative instrument. As of September 30, 2013, we had not posted any collateral. | |||||||||||||
As of September 30, 2013, 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 approximately $375,000. If we had breached any of these provisions at September 30, 2013, we could have been required to settle our obligations under the agreements at their termination value of approximately $375,000. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
Note 7. Related Party Transactions | |||||||||||||||||
Fees to Affiliates | |||||||||||||||||
Our Advisory Agreement with our Advisor and dealer manager agreement (“Dealer Manager Agreement”) with our Dealer Manager entitle our Advisor and our Dealer Manager to specified fees upon the provision of certain services with regard to the Offering and investment of funds in real estate properties, among other services, as well as reimbursement for organizational and offering costs incurred by our Advisor on our behalf and reimbursement of certain costs and expenses incurred by our Advisor in providing services to us. | |||||||||||||||||
Organization and Offering Costs | |||||||||||||||||
Organization and offering costs of the Offering may be paid by our Advisor on our behalf and will be reimbursed to our Advisor from the proceeds of the Offering. Organization and offering costs consist of all expenses (other than sales commissions and the dealer manager fee) to be paid by us in connection with the Offering, including our legal, accounting, printing, mailing and filing fees, charges of our escrow holder and other accountable offering expenses, including, but not limited to, (i) amounts to reimburse our Advisor for all marketing related costs and expenses such as salaries and direct expenses of employees of our Advisor and its affiliates in connection with registering and marketing our shares; (ii) technology costs associated with the Offering; (iii) our costs of conducting our training and education meetings; (iv) our costs of attending retail seminars conducted by participating broker-dealers; and (v) payment or reimbursement of bona fide due diligence expenses. Our Advisor must reimburse us within 60 days after the end of the month which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organization and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering. | |||||||||||||||||
Advisory Agreement | |||||||||||||||||
We currently do not have any employees. Our Advisor is primarily responsible for managing our business affairs and carrying out the directives of our board of directors. Our Advisor receives various fees and expenses under the terms of our Advisory Agreement. As discussed above, we are required under our Advisory Agreement to reimburse our Advisor for organization and offering costs; provided, however, our Advisor must reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organizational and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering. Our Advisory Agreement also requires our Advisor to reimburse us to the extent that offering expenses, including sales commissions, dealer manager fees and organization and offering expenses, are in excess of 15% of gross proceeds from the Offering. Subsequent to the termination of our Offering on September 22, 2013, we have determined that these expenses did not exceed 15% of gross proceeds from the Offering. Our Advisor receives acquisition fees equal to 2.5% of the contract purchase price of each property we acquire plus reimbursement of any acquisition expenses the Advisor incurs. Our Advisor also receives a monthly asset management fee equal to one-twelfth of 1.0% of the average of the aggregate asset value, as defined, of our assets, excluding those properties acquired through our mergers with REIT I and REIT II and USA Self Storage I, DST (“SS I, DST”) and Madison DST acquisitions; provided, however, that if the average of the aggregate asset value, as defined, of our assets exceeds $500 million, the monthly asset management fee shall be reduced to one-twelfth of 0.75% of the average of the aggregate asset value, as defined, of those assets exceeding $500 million unless our modified funds from operations (as defined in the Advisory Agreement), including payment of the fee, is greater than 100% of our distributions in any month (see footnote (2) in the following table for a discussion of the Advisor’s permanent waiver of certain asset management fees for the three and nine months ended September 30, 2013 and 2012). The monthly asset management fees for our properties acquired through our mergers with REIT I and REIT II and the SS I, DST and Madison DST acquisitions are equal to 2.0% of the gross revenues from the properties and are paid to affiliates of our Sponsor. Under our Advisory Agreement, and our articles of incorporation, as amended, our Advisor may receive disposition fees in an amount equal to the lesser of (i) 3.0% of the contract sale price for each property we sell, or (ii) one-half of the competitive real estate commission, as long as our Advisor provides substantial assistance in connection with the sale. The disposition fees paid to our Advisor are subordinated to the receipt of our stockholders of a 6% cumulative, non-compounded, annual return on such stockholders’ invested capital. The total real estate commissions paid (including disposition fee paid to our Advisor) may not exceed the lesser of a competitive real estate commission or an amount equal to 6.0% of the contract sale price of the property. Our Advisor may also be entitled to various subordinated fees if we (1) list our shares of common stock on a national exchange, (2) terminate our Advisory Agreement, or (3) liquidate our portfolio. | |||||||||||||||||
The advisors of REIT I and REIT II are entitled to various fees related to their properties if we (1) dispose of a property, (2) liquidate our portfolio, or (3) terminate their advisory agreement for cause. | |||||||||||||||||
Our Advisory Agreement provides for reimbursement of our Advisor’s direct and indirect costs of providing administrative and management services to us (see footnote (1) in the following table for a discussion of the Advisor’s permanent waiver of certain reimbursements for the three and nine months ended September 30, 2013 and 2012). Beginning October 1, 2009 (four fiscal quarters after the acquisition of our first real estate asset), our Advisor must pay or reimburse us the amount by which our aggregate annual operating expenses, as defined, exceed the greater of 2% of our average invested assets or 25% of our net income, as defined, unless a majority of our independent directors determine that such excess expenses were justified based on unusual and non-recurring factors. For any fiscal quarter for which total operating expenses for the 12 months then ended exceed the limitation, we will disclose this fact in our next quarterly report or within 60 days of the end of that quarter and send a written disclosure of this fact to our stockholders. In each case, the disclosure will include an explanation of the factors that the independent directors considered in arriving at the conclusion that the excess expenses were justified. For the 12 months ended September 30, 2013, our aggregate annual operating expenses, as defined, did not exceed the thresholds described above. | |||||||||||||||||
On September 27, 2012, we entered into a Second Amended and Restated Advisory Agreement (the “Amended Advisory Agreement”) with our Advisor. The material terms of the Advisory Agreement were not changed. However, certain provisions were added, the most significant of which was a provision restricting us, during the term of the Amended Advisory Agreement and for a period of two years after the termination of the Amended Advisory Agreement, from soliciting or hiring any employee of, or person performing services on behalf of, our Advisor. | |||||||||||||||||
Dealer Manager Agreement | |||||||||||||||||
Our Dealer Manager receives a sales commission of up to 7.0% of gross proceeds from sales in the Primary Offering and a dealer manager fee equal to up to 3.0% of gross proceeds from sales in the Primary Offering under the terms of our Dealer Manager Agreement. Our Dealer Manager has entered into participating dealer agreements with certain other broker-dealers which authorizes them to sell our shares. Upon sale of our shares by such broker-dealers, our Dealer Manager will re-allow all of the sales commissions paid in connection with sales made by these broker-dealers. Our Dealer Manager may also re-allow to these broker-dealers a portion of the 3.0% dealer manager fee as marketing fees, reimbursement of certain costs and expenses of attending training and education meetings sponsored by our Dealer Manager, payment of attendance fees required for employees of our Dealer Manager or other affiliates to attend retail seminars and public seminars sponsored by these broker-dealers, or to defray other distribution related expenses. Our Dealer Manager also receives reimbursement of bona fide due diligence expenses; however, to the extent these due diligence expenses cannot be justified, any excess over actual due diligence expenses will be considered underwriting compensation subject to a 10% FINRA limitation and, when aggregated with all other non-accountable expenses, may not exceed 3% of gross offering proceeds from sales in the Primary Offering. | |||||||||||||||||
Our dealer manager agreement with our prior dealer manager for our Initial Offering was substantially equivalent to the terms described above. | |||||||||||||||||
Affiliated Dealer Manager | |||||||||||||||||
Our chief executive officer owns, through a wholly-owned limited liability company, a 15% non-voting equity interest in our Dealer Manager. | |||||||||||||||||
Property Management Agreement | |||||||||||||||||
Our Property Manager receives a fee for its services in managing our properties, except for those properties acquired in the SS I, DST acquisition, generally equal to 6% of the gross revenues from the properties plus reimbursement of the direct costs of managing the properties under our property management agreement. In the event that our Property Manager assists with the development or redevelopment of a property, we may pay a separate market-based fee for such services. The properties acquired in the SS I, DST acquisition are managed by an affiliate of our Sponsor. As a condition of the REIT II merger transaction, our Property Manager agreed to waive the monthly property management fees for the REIT II properties until the FFO, as defined in the merger agreement, of those properties reached $0.70 per share (which threshold was met in the three months ended March 31, 2013). During the three and nine months ended September 30, 2013, property management fees of approximately $66,000 and $151,000, respectively were recorded relative to the REIT II properties. | |||||||||||||||||
On September 27, 2012, our board of directors approved revisions to our property management agreements that we expect to enter into in the future as we acquire additional properties and as our current property management agreements are renewed. These revisions include increasing the term to three years, with automatic three-year extensions; revising the property owner’s obligation to reimburse the Property Manager for certain expenses; the addition of a construction management fee (as defined); the addition of a tenant insurance administrative fee; adding a nonsolicitation provision; and adding a provision regarding the Property Manager’s use of trademarks and other intellectual property owned by Strategic Storage Holdings, LLC. | |||||||||||||||||
Pursuant to the terms of the agreements described above, the following summarizes the related party costs incurred for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expensed | |||||||||||||||||
Reimbursement of operating expenses (including organizational costs) (1) | $ | 11,992 | $ | 7,965 | $ | 34,093 | $ | 29,760 | |||||||||
Asset management fees (2) | 1,214,561 | 1,152,316 | 3,571,501 | 3,398,273 | |||||||||||||
Property management fees (3)(4) | 1,251,116 | 968,090 | 3,539,318 | 2,690,149 | |||||||||||||
Acquisition expenses | 476,656 | 770,915 | 583,275 | 1,034,065 | |||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Selling commissions | 4,075,472 | 800,431 | 7,004,507 | 6,333,780 | |||||||||||||
Dealer Manager fee | 1,746,632 | 343,042 | 3,001,932 | 2,714,477 | |||||||||||||
Reimbursement of offering costs | 92,665 | 121,233 | 316,794 | 371,155 | |||||||||||||
Total | $ | 8,869,094 | $ | 4,163,992 | $ | 18,051,420 | $ | 16,571,659 | |||||||||
(1) | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $350,000 and $251,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $975,000 and $773,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | ||||||||||||||||
(2) | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $176,000 and $33,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $525,000 and $33,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | ||||||||||||||||
(3) | During the three and nine months ended September 30, 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $177,000 and $521,000, respectively for the three and nine months ended September 30, 2013 and were waived permanently and accordingly, will not be paid to our Property Manager. | ||||||||||||||||
(4) | During the three months ended September 30, 2013 and 2012, property management fees include approximately $0 and $33,000, respectively, of fees paid to the sub-property manager of our Canadian properties. During the nine months ended September 30, 2013 and 2012, property management fees include approximately $27,000 and $90,000, respectively, of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000. | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, we had amounts due to affiliates totaling $1,521,106 and $2,282,344, respectively. | |||||||||||||||||
Tenant Reinsurance Program | |||||||||||||||||
Beginning in 2011, our chief executive officer, through a wholly owned limited liability company in which our chief executive officer is the sole member, began participating in a tenant reinsurance program whereby tenants of our self storage facilities can purchase insurance to cover damage or destruction to their property while stored at our facilities. Such limited liability company has an approximate 5% ownership interest in a Cayman Islands company (the “Reinsurance Company”) that will insure a portion of the insurance required by the program insurer to cover the risks of loss at participating facilities in the program. The program insurer provides fees (approximately 50% of the tenant premium paid) to us as owner of the facilities. The Reinsurance Company may be required to fund additional capital or entitled to receive distributions of profits depending on actual losses incurred under the program. For the three months ended September 30, 2013 and 2012, we recorded revenue of approximately $0.4 million and $0.3 million, respectively, in connection with this tenant reinsurance program. For the nine months ended September 30, 2013 and 2012, we recorded revenue of approximately $1.2 million and $0.9 million, respectively, in connection with this tenant reinsurance program. | |||||||||||||||||
Storage Auction Program | |||||||||||||||||
During the second quarter of 2013, our chief executive officer and our senior vice president – property management, purchased noncontrolling interests in a company (the “Auction Company”) that serves as a web portal for self storage companies to post their auctions online instead of using live auctions conducted at the self storage facilities. Once the contents of a storage unit are sold at auction, we pay the Auction Company a service fee based upon the sale price of the unit. Collectively, these officers own 18% of the voting interests in the Auction Company. For the three and nine months months ended September 30, 2013, we incurred approximately $18,000 and $21,000, respectively, in auction fees with the Auction Company. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2013 | ||||
Commitments And Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Note 8. Commitments and Contingencies | ||||
Distribution Reinvestment Plan | ||||
We have adopted a distribution reinvestment plan that allows our stockholders to have distributions otherwise distributable to them invested in additional shares of our common stock. The plan became effective on the effective date of our Initial Offering. The purchase price per share was the higher of $9.50 per share or 95% of the fair market value of a share of our common stock. On March 28, 2012, the purchase price per share under the distribution reinvestment plan was changed to 95% of the offering price of our shares. On September 18, 2013, our board of directors amended and restated our distribution reinvestment plan to change the purchase price per share from 95% of the offering price to approximately $10.25 (which currently results in the same price as prior to this amendment and restatement) and make other certain minor revisions related to the closing of our Offering. Our board of directors may set or change the purchase price at any time in its sole and absolute discretion based upon such factors as it deems appropriate. | ||||
Following the termination of our Offering, on September 22, 2013, we filed with the SEC a Registration Statement on Form S-3, which incorporated the amended and restated distribution reinvestment plan and registered up to an additional $51.25 million in shares. The Form S-3 allows us to continue to offer shares pursuant to our amended and restated distribution reinvestment plan beyond September 22, 2013; however we may amend or terminate the plan at any time upon 10 days’ prior written notice to stockholders. The plan was effective as of September 28, 2013. | ||||
No sales commission or dealer manager fee will be paid on shares sold through the distribution reinvestment plan. As of September 30, 2013, we have sold approximately 4.1 million shares through our distribution reinvestment plan. | ||||
Share Redemption Program | ||||
We have adopted a share redemption program that may enable stockholders to sell their shares to us in limited circumstances. As long as our common stock is not listed on a national securities exchange or over-the-counter market, our stockholders who have held their stock for at least one year may be able to have all or any portion of their shares of stock redeemed by us. We may redeem the shares of stock presented for redemption for cash to the extent that we have sufficient funds available to fund such redemption. | ||||
Our board of directors may amend, suspend or terminate the share redemption program with 30 days’ notice to our stockholders. We may provide this notice by including such information in a Current Report on Form 8-K or in our annual or quarterly reports, all publicly filed with the SEC, or by a separate mailing to our stockholders. Our share redemption program was amended in October 2011 and March 2012. The complete terms of our share redemption program, as so revised, are described in detail in our prospectus, as supplemented. You may also see our Form 8-K filed with the SEC on February 24, 2012. | ||||
The amount that we may pay to redeem stock for redemptions is the redemption price set forth in the following table which is based upon the number of years the stock is held: | ||||
Number Years Held | Redemption Price | |||
Less than 1 | No Redemption Allowed | |||
1 or more but less than 2 | 90.0% of Redemption Amount | |||
2 or more but less than 3 | 92.5% of Redemption Amount | |||
3 or more but less than 4 | 95.0% of Redemption Amount | |||
4 or more | 100.0% of Redemption Amount | |||
At any time we are engaged in an offering of shares, the Redemption Amount for shares purchased under our share redemption program will always be equal to or lower than the applicable per share offering price. As long as we are engaged in an offering, the Redemption Amount shall be the lesser of the amount the stockholder paid for their shares or the price per share in the current offering. If we are no longer engaged in an offering, the per share Redemption Amount will be determined by our board of directors. Our board will announce any redemption price adjustment and the time period of its effectiveness as a part of its regular communications with our stockholders. Subsequent to the termination of our Offering on September 22, 2013, our board of directors determined that there should be no change to the per share Redemption Amount. At any time the redemption price during an offering is determined by any method other than the offering price, if we have sold property and have made one or more special distributions to our stockholders of all or a portion of the net proceeds from such sales, the per share redemption price will be reduced by the net sale proceeds per share distributed to investors prior to the redemption date as a result of the sale of such property in the special distribution. Our board will, in its sole discretion, determine which distributions, if any, constitute a special distribution. While our board does not have specific criteria for determining a special distribution, we expect that a special distribution will only occur upon the sale of a property and the subsequent distribution of the net sale proceeds. | ||||
There are several limitations on our ability to redeem shares under the share redemption program including, but not limited to: | ||||
• | Unless the shares are being redeemed in connection with a stockholder’s death, “qualifying disability” (as defined under the share redemption program) or bankruptcy, we may not redeem shares until the stockholder has held his or her shares for one year. | |||
• | During any calendar year, we will not redeem in excess of 5% of the weighted-average number of shares outstanding during the prior calendar year. | |||
• | The cash available for redemption is limited to the proceeds from the sale of shares pursuant to our distribution reinvestment plan. | |||
• | We have no obligation to redeem shares if the redemption would violate the restrictions on distributions under Maryland law, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency. | |||
Following the termination of our Offering and in anticipation of a future possible liquidity event, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013. See Note 11 for additional information regarding the termination of the share redemption program. | ||||
Redeemable Common Stock – State of Washington | ||||
In the third quarter of 2012, we discovered that, due to a clerical error, we exceeded our registration amount in the State of Washington during a three month period in 2012. Upon this discovery, we immediately took action to increase our registration amount; however, stockholders who purchased shares in excess of the amount then-registered in the State of Washington were entitled to a rescission of their respective investments (totaling approximately $3.9 million) in our shares, as the shares they originally purchased were unregistered. If any of those stockholders sought a rescission, we would have been required to redeem their shares. | ||||
During the third quarter of 2013, we sent such investors an offer to rescind their respective investments. One investor that held approximately 1,000 shares ($10,000) accepted our offer and such rescission was completed subsequent to September 30, 2013. The remaining investors did not accept our offer, and the rescission offer is now expired. | ||||
Operating Partnership Redemption Rights | ||||
The limited partners of our Operating Partnership have the right to cause our Operating Partnership to redeem their limited partnership units for cash equal to the value of an equivalent number of our shares, or, at our option, we may purchase their limited partnership units by issuing one share of our common stock for each limited partnership unit redeemed. The holders of the Class D Units have agreed to modified exchange rights that prevent them from exercising their exchange rights: (1) until the earlier of (a) a listing of our shares or (b) our merger into another entity whereby our stockholders receive securities listed on a national securities exchange; or (2) until FFO of the properties contributed by the holders of the Class D Units reaches $0.70 per share, based on our fully-loaded cost of equity. These rights may not be exercised under certain circumstances that could cause us to lose our REIT election. Furthermore, limited partners may exercise their redemption rights only after their limited partnership units have been outstanding for one year. Our Advisor is prohibited from exchanging or otherwise transferring its limited partnership units so long as our Sponsor is acting as our sponsor. | ||||
Ground Lease Commitment – SF Bay Area – San Lorenzo | ||||
In connection with the acquisition of our SF Bay Area – San Lorenzo property, we assumed a land lease, with a remaining term of approximately 22 years as of September 30, 2013 and recorded rent expense of approximately $37,000 and $110,000 for the three and nine month periods ended September 30, 2013, respectively, and $37,000 and $110,000 for the three and nine month periods ended September 30, 2012, respectively. The lease has minimum lease payments of approximately $33,000, $133,000, $139,000, $139,000 and $139,000 for the years ending 2013, 2014, 2015, 2016 and 2017, respectively. | ||||
Other Contingencies | ||||
We have been involved in routine litigation and threatened litigation arising in the ordinary course of business. While the outcome of any litigation is inherently unpredictable, we believe the likelihood of these pending legal matters having a material adverse effect on our financial condition or results of operations is remote. |
Declaration_of_Distributions
Declaration of Distributions | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Declaration of Distributions | ' |
Note 9. Declaration of Distributions | |
On September 17, 2013, our board of directors declared a distribution rate for the fourth quarter of 2013 of $0.001917808 per day per share on the outstanding shares of common stock payable to stockholders of record of such shares as shown on our books at the close of business on each day during the period, commencing on October 1, 2013 and continuing on each day thereafter through and including December 31, 2013. |
Selected_Quarterly_Data
Selected Quarterly Data | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Selected Quarterly Data | ' | ||||||||||||||||||||
Note 10. Selected Quarterly Data | |||||||||||||||||||||
The following is a summary of quarterly financial information for the periods shown below: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||
2012 | 2012 | 2013 | 2013 | 2013 | |||||||||||||||||
Total revenues | $ | 17,098,173 | $ | 18,455,140 | $ | 19,407,941 | $ | 19,931,208 | $ | 21,292,574 | |||||||||||
Total operating expenses | $ | 17,000,260 | $ | 17,351,457 | $ | 16,557,885 | $ | 16,667,044 | $ | 17,229,995 | |||||||||||
Operating income | $ | 97,913 | $ | 1,103,683 | $ | 2,850,056 | $ | 3,264,164 | $ | 4,062,579 | |||||||||||
Net loss | $ | (4,620,823 | ) | $ | (3,852,041 | ) | $ | (2,167,459 | ) | $ | (1,949,099 | ) | $ | (689,288 | ) | ||||||
Net loss attributable to the Company | $ | (4,610,650 | ) | $ | (3,843,894 | ) | $ | (2,167,224 | ) | $ | (1,949,079 | ) | $ | (693,245 | ) | ||||||
Net loss per share-basic and diluted | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.01 | ) |
Subsequent_Events
Subsequent Events | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Subsequent Events [Abstract] | ' | ||||||||||||||||||
Subsequent Events | ' | ||||||||||||||||||
Note 11. Subsequent Events | |||||||||||||||||||
Subsequent to September 30, 2013, we acquired the following self storage properties from unaffiliated third parties: | |||||||||||||||||||
Property | Acquisition Date | Acquisition Price | Year Built | Approx. | Approx. Sq. Ft. | ||||||||||||||
Units | (net) | ||||||||||||||||||
Knoxville I – TN | 10/28/13 | $ | 8,530,000 | 1996/2005 | 650 | 101,700 | |||||||||||||
Knoxville II – TN | 10/28/13 | $ | 10,900,000 | 2006 | 680 | 78,500 | |||||||||||||
Knoxville III – TN | 10/28/13 | $ | 8,500,000 | 2005 | 510 | 73,300 | |||||||||||||
Montgomery II – AL | 10/28/13 | $ | 8,600,000 | 2005 | 540 | 65,400 | |||||||||||||
Total | $ | 36,530,000 | 2,380 | 318,900 | |||||||||||||||
These four self storage properties located in Tennessee and Alabama are collectively known as the “Knoxville Portfolio”. The purchase price for the Knoxville Portfolio was approximately $36.5 million, plus closing costs and acquisition fees. | |||||||||||||||||||
We incurred acquisition fees due to our Advisor of approximately $0.9 million in connection with the above acquisitions. | |||||||||||||||||||
Southwest Colonial, DST | |||||||||||||||||||
During the fourth quarter of 2013, we purchased beneficial interests (the “Colonial Interests”) in Southwest Colonial, DST (“Colonial DST”), a Delaware statutory trust sponsored by our Sponsor, from approximately 50 third-party sellers pursuant to separate purchase agreements with each seller. None of the purchases were contingent upon any of the others. Such purchases were fully completed on November 1, 2013. Following the purchase of these interests, we owned 100% of the interests in Colonial DST. The agreed upon purchase price of the Colonial Interests acquired, based on aggregate appraised value of the five properties owned by Colonial DST, was approximately $27.9 million. Consideration provided consisted of approximately $9.0 million in cash along with the issuance of approximately 151,300 limited partnership units in our Operating Partnership and the assumption of an approximately $16.7 million bank loan held by Colonial DST (the “John Hancock Loan”). Colonial DST leased its properties to a master tenant (the “Tenant”) on a triple-net basis pursuant to a master lease (the “Lease”). The Tenant was owned by an affiliate of our Sponsor. We expect that such Lease will be terminated in the fourth Quarter of 2013. | |||||||||||||||||||
We incurred acquisition fees due to our Advisor of approximately $340,000 in connection with these acquisitions. | |||||||||||||||||||
The Colonial DST owns five self storage facilities located in Texas with an aggregate of approximately 2,805 units and 392,000 rentable square feet. The properties owned by Colonial DST are subject to the John Hancock Loan, which had an aggregate principal balance of approximately $16.7 million as of the acquisition date. The loan bears a fixed interest rate of 6.36% and had an original term of ten years and matures in September 2018. The loan is secured only by the five properties owned by the Colonial DST that obtained such loan. | |||||||||||||||||||
Share Redemption Program | |||||||||||||||||||
On November 1, 2013, we filed an 8-K with the SEC that announced the termination of our share redemption program. Our management and board of directors determined that termination of the share redemption program was prudent due to the closure of our Offering and in consideration of our continued pursuit of certain strategic alternatives to provide stockholder liquidity. Pursuant to the terms of the share redemption program, investors have 30 days from the date of the notice (November 1, 2013) to submit any final requests for redemption, thus, all requests must be received by us and in good order by December 1, 2013. We plan to satisfy the redemption requests on or around December 31, 2013, subject to the limitations of the share redemption program. | |||||||||||||||||||
KeyBank Revolver | |||||||||||||||||||
On October 28, 2013, we, through our Operating Partnership and certain property-owning special purpose entities wholly-owned by our Operating Partnership (collectively with the Operating Partnership, the “Borrower”), obtained a revolving loan from KeyBank for borrowings up to $75 million (as amended, the “KeyBank Revolver”). In November 2013, $25 million of the KeyBank Revolver was syndicated to another participating lender. The initial amount funded at closing was $71 million (the “Initial Draw”), $45 million of which was used to pay off the outstanding principal amount under the Second Restated KeyBank Credit Facility, and thereby release the 12 properties comprising the Homeland Portfolio that were serving as collateral for the Second Restated KeyBank Credit Facility, and approximately $26 million of which was used to partially fund the acquisition of the Knoxville Portfolio described above. It is anticipated that future draws on the KeyBank Revolver will be used to help fund our future acquisitions of self storage facilities and for other general corporate purposes. | |||||||||||||||||||
The KeyBank Revolver has an initial term of three years, maturing on October 25, 2016, with two one-year extension options subject to certain conditions outlined further in the credit agreement for the KeyBank Revolver (the “Credit Agreement”). Payments due pursuant to the KeyBank Revolver are interest-only for the life of the loan. The KeyBank Revolver bears interest at the Borrower’s option of either the Alternate Base Rate plus the Applicable Rate or the Adjusted LIBO Rate plus the Applicable Rate (each as defined in the Credit Agreement). The Applicable Rate will vary based on our total leverage ratio. We elected to have the Adjusted LIBO Rate plus the Applicable Rate apply to the Initial Draw, which equated to an initial interest rate of approximately 1.7%. The $45 million interest rate swap originally purchased in connection with the Second Restated KeyBank Credit Facility will remain in place through December 24, 2014, thus fixing the rate on the $45 million at approximately 2.4%, assuming the Applicable Rate remains constant. | |||||||||||||||||||
During the first 18 months of the KeyBank Revolver, we may request increases in the aggregate commitment up to a maximum of $200 million in minimum increments of $10 million. We may also reduce the aggregate commitment in minimum increments of $10 million during the life of the loan, provided, however, that at no time will the aggregate commitment be reduced to less than $25 million unless the KeyBank Revolver is paid in full. | |||||||||||||||||||
The KeyBank Revolver is secured by cross-collateralized first mortgage liens or first lien deeds of trust on the properties in the Homeland Portfolio, the properties in the Knoxville Portfolio, and five of our other self storage properties, and is cross-defaulted to any recourse debt of $25 million or greater in the aggregate or non-recourse debt of $75 million or greater in the aggregate. The KeyBank Revolver may be prepaid or terminated at any time without penalty, provided, however, that KeyBank and any other lender shall be indemnified for any breakage costs associated with any LIBOR borrowings. Pursuant to that certain guaranty dated October 28, 2013 in favor of KeyBank, we serve as a guarantor of all obligations due under the KeyBank Revolver. | |||||||||||||||||||
Under certain conditions, the Borrower may cause the release of one or more of the properties serving as collateral for the KeyBank Revolver in connection with a full or partial pay down of the KeyBank Revolver, provided that there shall at all times be at least four properties serving as collateral. | |||||||||||||||||||
The KeyBank Revolver contains a number of other customary terms and covenants, including the following (capitalized terms are as defined in the Credit Agreement): | |||||||||||||||||||
• | the aggregate borrowing base availability under the KeyBank Revolver is limited to the lesser of: (1) 60% of the Pool Value of the properties in the collateral pool, or (2) an amount that would provide a minimum Debt Service Coverage Ratio of no less than 1.35 to 1.0; and | ||||||||||||||||||
• | we must meet the following financial tests, calculated as of the close of each fiscal quarter: (1) a Total Leverage Ratio of no more than 60%; (2) a Tangible Net Worth of at least $250 million; (3) an Interest Coverage Ratio of no less than 1.85 to 1.0; (4) a Fixed Charge Ratio of no less than 1.6 to 1.0; (5) a ratio of varying rate Indebtedness to total Indebtedness not in excess of 30%; (6) a Loan to Value Ratio of not greater than sixty percent (60%); and (7) a Debt Service Coverage Ratio of not less than 1.35 to 1.0. | ||||||||||||||||||
Distribution Reinvestment Plan | |||||||||||||||||||
As of November 11, 2013, we have issued approximately 0.1 million shares of our common stock for gross proceeds of approximately $1.4 million. | |||||||||||||||||||
Offering Status | |||||||||||||||||||
As of November 11, 2013, in connection with our Initial Offering and Offering we have issued approximately 54 million shares of our common stock for gross proceeds of approximately $545 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of Presentation | ' | ||||||||||||||||
Basis of Presentation | |||||||||||||||||
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and the rules and regulations of the SEC. | |||||||||||||||||
Effective September 15, 2009, the ASC was established as the single source of authoritative nongovernmental GAAP. Prior to the issuance of the ASC, all GAAP pronouncements were issued in separate topical pronouncements in the form of statements, staff positions or Emerging Issues Task Force Abstracts, and were referred to as such. While the ASC does not change GAAP, it introduces a new structure and supersedes all previously issued non-SEC accounting and reporting standards. In addition to the ASC, the Company is still required to follow SEC rules and regulations relating to the preparation of financial statements. The Company’s accounting policies are consistent with the guidance set forth by both the ASC and the SEC. | |||||||||||||||||
Reclassifications | ' | ||||||||||||||||
Reclassifications | |||||||||||||||||
Certain amounts previously reported in our 2012 financial statements have been reclassified to conform to the fiscal 2013 presentation. | |||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
Our financial statements, the financial statements of our Operating Partnership, including its wholly-owned subsidiaries, the financial statements of Self Storage REIT, LLC (REIT I) and Self Storage REIT II, LLC (REIT II), and the accounts of variable interest entities (VIEs) for which we are the primary beneficiary are consolidated in the accompanying consolidated financial statements. The portion of these entities not wholly-owned by us is presented as noncontrolling interests both as of and during the periods presented. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
Consolidation Considerations for Our Investments in Joint Ventures | ' | ||||||||||||||||
Consolidation Considerations for Our Investments in Joint Ventures | |||||||||||||||||
Current accounting guidance provides a framework for identifying VIEs and determining when a company should include the assets, liabilities, noncontrolling interests, and results of activities of the VIE in its consolidated financial statements. In general, a VIE is an entity or other legal structure used to conduct activities or hold assets that either (1) has an insufficient amount of equity to carry out its principal activities without additional subordinated financial support, (2) has a group of equity owners that are unable to make significant decisions about its activities, or (3) has a group of equity owners that do not have the obligation to absorb losses or the right to receive returns generated by its operations. Generally, a VIE should be consolidated if a party with an ownership, contractual, or other financial interest in the VIE (a variable interest holder) has the power to direct the VIE’s most significant activities and the obligation to absorb losses or right to receive benefits of the VIE that could be significant to the VIE. A variable interest holder that consolidates the VIE is called the primary beneficiary. Upon consolidation, the primary beneficiary generally must initially record all of the VIE’s assets, liabilities, and noncontrolling interest at fair value and subsequently account for the VIE as if it were consolidated based on majority voting interest. As of September 30, 2013 and December 31, 2012, we had entered into contracts/interests that are deemed to be variable interests in VIEs; those variable interests include both lease agreements and equity investments. We have evaluated those variable interests against the criteria for consolidation and determined that we are not the primary beneficiary of certain investments discussed further in the “Equity Investments” section of this note. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, we had an equity interest in a self storage property located in San Francisco, California (“SF property”) which was deemed to be a VIE of which we are the primary beneficiary. As such, the SF property has been consolidated in our consolidated financial statements since we acquired our interest in the property through the REIT I merger. In January 2010, we acquired an approximately 2% additional interest in the SF property, bringing our total interest to approximately 12%. The SF property is owned by a Delaware Statutory Trust (DST), and by virtue of the trust agreement the investors in the trust have no direct or indirect ability through voting rights to make decisions about the DST’s significant activities. The operating partnership of REIT I (the “REIT I Operating Partnership”) has also entered into a lease agreement for the SF property, in which the REIT I Operating Partnership is the tenant, which exposes it to losses of the VIE that could be significant to the VIE and also allows it to direct activities of the VIE that determine its economic performance by means of its operation of the leased facility. The lease has an initial term of ten years which commenced on December 19, 2006. The initial term of the lease may be extended at the option of the REIT I Operating Partnership for up to four successive five year terms. As of September 30, 2013, the consolidated joint venture had net real estate assets of approximately $16.6 million. Such assets are only available to satisfy the obligations of the SF property. We have also consolidated approximately $10.1 million of secured debt and approximately $5.7 million of noncontrolling interest related to this entity. The lenders of the secured debt have no recourse to other Company assets. Our Sponsor has entered into an agreement to indemnify us for any losses as a result of potential shortfalls in the lease payments required to be made by the REIT I Operating Partnership. Despite such indemnification, we continue to be deemed the primary beneficiary, as our Sponsor is not deemed to have a variable interest in the SF property. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions. Management adjusts such estimates when facts and circumstances dictate. The most significant estimates made include the allocation of property purchase price to tangible and intangible assets acquired and liabilities assumed at fair value, the determination if certain entities should be consolidated, the evaluation of potential impairment of long-lived assets and of assets held by equity method investees, and the useful lives of real estate assets and intangibles. Actual results could materially differ from those estimates. | |||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||
We consider all short-term, highly liquid investments that are readily convertible to cash with a maturity of three months or less at the time of purchase to be cash equivalents. | |||||||||||||||||
We may maintain cash equivalents in financial institutions in excess of insured limits, but believe this risk is mitigated by only investing in or through major financial institutions. | |||||||||||||||||
Restricted Cash | ' | ||||||||||||||||
Restricted Cash | |||||||||||||||||
Restricted cash consists primarily of impound reserve accounts for property taxes, insurance and capital improvements in connection with the requirements of certain of our loan agreements. | |||||||||||||||||
Real Estate Purchase Price Allocation | ' | ||||||||||||||||
Real Estate Purchase Price Allocation | |||||||||||||||||
We account for acquisitions in accordance with accounting guidance which requires that we allocate the purchase price of the property to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires us to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for an acquisition). Acquisitions of portfolios of facilities are allocated to the individual facilities based upon an income approach or a cash flow analysis using appropriate risk adjusted capitalization rates which take into account the relative size, age, and location of the individual facility along with current and projected occupancy and rental rate levels or appraised values, if available. Allocations to the individual assets and liabilities are based upon comparable market sales information for land and estimates of depreciated replacement cost of equipment, building and site improvements. In allocating the purchase price, we determine whether the acquisition includes intangible assets or liabilities. Substantially all of the leases in place at acquired properties are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date we have not allocated any portion of the purchase price to above or below market leases. We also consider whether in-place, market leases represent an intangible asset. We preliminarily allocated approximately $0.7 million of purchase price to intangible assets to recognize the value of in-place leases related to our acquisitions in the first nine months of 2013. We do not expect, nor to date have we recorded, intangible assets for the value of tenant relationships because we will not have concentrations of significant tenants and the average tenant turnover is fairly frequent. Our acquisition-related transaction costs are required to be expensed as incurred. During the three months ended September 30, 2013 and 2012, we expensed approximately $0.9 and $1.4 million, respectively, of acquisition related transaction costs and during the nine months ended September 30, 2013 and 2012, we expensed approximately $1.1 and $2.1 million, respectively, of acquisition related transaction costs. | |||||||||||||||||
Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to comparative information in our financial statements, potentially including adjustments to interest, depreciation and amortization expense. | |||||||||||||||||
Evaluation of Possible Impairment of Long-Lived Assets | ' | ||||||||||||||||
Evaluation of Possible Impairment of Long-Lived Assets | |||||||||||||||||
Management will continually monitor events and changes in circumstances that could indicate that the carrying amounts of our long-lived assets, including those held through joint ventures, may not be recoverable. When indicators of potential impairment are present that indicate that the carrying amounts of the assets may not be recoverable, we will assess | |||||||||||||||||
the recoverability of the assets by determining whether the carrying value of the long-lived assets will be recovered through the undiscounted future operating cash flows expected from the use of the asset and its eventual disposition. In the event that such expected undiscounted future cash flows do not exceed the carrying value, we will adjust the value of the long-lived assets to the fair value and recognize an impairment loss. As of September 30, 2013 and December 31, 2012, no impairment losses have been recognized. | |||||||||||||||||
Equity Investments | ' | ||||||||||||||||
Equity Investments | |||||||||||||||||
Our investments in unconsolidated real estate joint ventures and VIEs in which we are not the primary beneficiary, where we have significant influence, but not control, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, our investments in real estate ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the allocation of cash distributions upon liquidation of the investment in accordance with the joint venture agreements. | |||||||||||||||||
Investments representing passive preferred equity and/or minority interests are accounted for under the cost method. Under the cost method, our investments in real estate ventures are carried at cost and adjusted for other-than-temporary declines in fair value, distributions representing a return of capital and additional investments. | |||||||||||||||||
Through mergers with REIT I and REIT II in 2009, we acquired five preferred equity and/or minority interests in unconsolidated joint ventures (one of which became wholly-owned in 2011 and another of which was sold in May 2012), all of which were deemed to be VIEs. We have evaluated each variable interest against the amended criteria for consolidation and determined that we are not the primary beneficiary, generally due to our inability to direct significant activities that determine the economic performance of the VIE. Two of those investments are passive or limited partner interests in self storage facilities (such properties are owned by DSTs, and by virtue of the related trust agreements, the investors have no direct or indirect ability through voting rights to make decisions about the DSTs significant activities) and are therefore accounted for under the cost method; our aggregate investment therein is approximately $0.1 million. Individually our ownership interest in those investments ranged from approximately 0.28% to 1.49%; the carrying value of the investments ranged from approximately $27,000 to $100,000 and our risk of loss is limited to our individual investment therein. | |||||||||||||||||
The remaining interest is in a net leased industrial property (“Hawthorne property”) in California with 356,000 rentable square feet leased to a single tenant. This investment is accounted for under the equity method of accounting and our risk of loss is limited to our investment, including our maximum exposure under the terms of a debt guarantee. We own a 12% interest in Westport LAX LLC, the joint venture that acquired the Hawthorne property and the carrying value in such investment is approximately $1.3 million. Hawthorne LLC, an affiliate of our Sponsor, owns 78% of Westport LAX LLC, and we have a preferred equity interest in Hawthorne LLC which entitles us to distributions equal to 10% per annum on our investment of approximately $6.9 million and a non-interest bearing receivable of approximately $0.4 million. The preferred equity interest has a redemption date in November 2014, subject to extension at our sole discretion. The preferred equity interest may be called at any time in whole or part by Hawthorne LLC or redeemed at any time by us. The remaining 10% interest in Westport LAX LLC is owned by a third party, who is also the co-manager, along with our Sponsor, of the Hawthorne property. Such third party is the acting property manager and directs the operating activities of the property that determine its economic performance. We, along with other non-affiliated parties, are guarantors on the approximately $19.0 million loan used to secure the Hawthorne property; the loan has a maturity date of August 1, 2020. As of September 30, 2013, our maximum exposure to loss as a result of our involvement with this VIE, consisting of our investment balances and our guarantee of the secured debt, totaled approximately $27.6 million. | |||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||
Revenue Recognition | |||||||||||||||||
Management believes that all of our leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. Revenues from any long-term operating leases are recognized on a straight-line basis over the term of the lease. The excess of rents received over amounts contractually due pursuant to the underlying leases is included in accounts payable and accrued liabilities in our consolidated balance sheets and contractually due but unpaid rent is included in other assets. | |||||||||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||
Tenant accounts receivable are reported net of an allowance for doubtful accounts. Management’s estimate of the allowance is based upon a review of the current status of tenant accounts receivable. It is reasonably possible that management’s estimate of the allowance will change in the future. | |||||||||||||||||
Real Estate Facilities | ' | ||||||||||||||||
Real Estate Facilities | |||||||||||||||||
Real estate facilities are recorded at cost. We capitalize costs incurred to develop, construct, renovate and improve properties, including interest and property taxes incurred during the construction period. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. | |||||||||||||||||
Depreciation of Real Property Assets | ' | ||||||||||||||||
Depreciation of Real Property Assets | |||||||||||||||||
Our management is required to make subjective assessments as to the useful lives of our depreciable assets. We consider the period of future benefit of the asset to determine the appropriate useful lives. | |||||||||||||||||
Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: | |||||||||||||||||
Description | Standard Depreciable Life | ||||||||||||||||
Land | Not Depreciated | ||||||||||||||||
Buildings | 30 to 35 years | ||||||||||||||||
Site Improvements | 7 to 15 years | ||||||||||||||||
Depreciation of Personal Property Assets | ' | ||||||||||||||||
Depreciation of Personal Property Assets | |||||||||||||||||
Personal property assets, consisting primarily of furniture, fixtures and equipment are depreciated on a straight-line basis over the estimated useful lives generally ranging from 3 to 5 years, and are included in other assets on our consolidated balance sheets. | |||||||||||||||||
Intangible Assets | ' | ||||||||||||||||
Intangible Assets | |||||||||||||||||
We have allocated a portion of our real estate purchase price to in-place leases. We are amortizing in-place leases on a straight-line basis over the estimated future benefit period. As of September 30, 2013 and December 31, 2012, accumulated amortization of in-place lease intangibles totaled approximately $42.8 million and $36.4 million, respectively. | |||||||||||||||||
Amortization of Deferred Financing Costs | ' | ||||||||||||||||
Amortization of Deferred Financing Costs | |||||||||||||||||
Costs incurred in connection with obtaining financing are deferred and amortized on a straight-line basis over the term of the related loan, which is not materially different than the effective interest method. As of September 30, 2013 and December 31, 2012, accumulated amortization of deferred financing costs totaled approximately $5.5 million and $4.4 million, respectively. | |||||||||||||||||
Organization and Offering Costs | ' | ||||||||||||||||
Organization and Offering Costs | |||||||||||||||||
Pursuant to our Advisory Agreement, our Advisor may fund organization and offering costs on our behalf. We are required to reimburse our Advisor for such organization and offering costs; provided, however, our Advisor must reimburse us within 60 days after the end of the month in which the Offering terminates to the extent we paid or reimbursed organization and offering costs (excluding sales commissions and dealer manager fees) in excess of 3.5% of the gross offering proceeds from the Primary Offering. Such costs will be recognized as a liability when we have a present responsibility to reimburse our Advisor, which is defined in our Advisory Agreement as the date we satisfied the minimum offering requirements of the primary offering portion of our Initial Offering (which occurred on May 22, 2008). If at any point in time we determine that the total organization and offering costs are expected to exceed 3.5% of the gross proceeds anticipated to be received from the Primary Offering, we will recognize such excess as a capital contribution from our Advisor. Subsequent to the termination of our Offering on September 22, 2013, we have determined that organization and offering costs did not exceed 3.5% of the gross proceeds from the Primary Offering. Offering costs are recorded as an offset to additional paid-in capital, and organization costs are recorded as an expense. | |||||||||||||||||
Redeemable Common Stock | ' | ||||||||||||||||
Redeemable Common Stock | |||||||||||||||||
We have adopted a share redemption program that may enable stockholders to sell their shares to us in limited circumstances. | |||||||||||||||||
We record amounts that are redeemable under the share redemption program as redeemable common stock in the accompanying consolidated balance sheets since the shares are mandatorily redeemable at the option of the holder and | |||||||||||||||||
therefore their redemption is outside our control. The maximum amount redeemable under our share redemption program is limited to the number of shares we could repurchase with the amount of the net proceeds from the sale of shares under the distribution reinvestment plan. However, accounting guidance states that determinable amounts that can become redeemable but that are contingent on an event that is likely to occur (e.g., the passage of time) should be presented as redeemable when such amount is known. Therefore, the net proceeds from the distribution reinvestment plan are considered to be temporary equity and are presented as redeemable common stock in the accompanying consolidated balance sheets. | |||||||||||||||||
In addition, current accounting guidance requires, among other things, that financial instruments that represent a mandatory obligation of us to repurchase shares be classified as liabilities and reported at settlement value. Our redeemable common shares are contingently redeemable at the option of the holder. When we determine we have a mandatory obligation to repurchase shares under the share redemption program, we will reclassify such obligations from temporary equity to a liability based upon their respective settlement values. | |||||||||||||||||
During the three months ended September 30, 2013, we redeemed approximately 0.4 million shares of common stock for approximately $3.7 million ($9.71 per share). As of September 30, 2013, we had redemption requests for approximately 247,000 shares of common stock for approximately $2.4 million that were redeemed pursuant to the terms of the share redemption program on October 31, 2013 and such amount was reclassified from redeemable common stock to accounts payable and accrued liabilities in the consolidated balance sheets as of September 30, 2013. We have funded all redemptions using proceeds from the sale of shares pursuant to our distribution reinvestment plan. Our board of directors may choose to amend, suspend or terminate our share redemption program upon 30 days’ written notice at any time. | |||||||||||||||||
In anticipation of a future possible liquidity event, on November 1, 2013, our board of directors approved the termination of our share redemption program, effective December 1, 2013. See Notes 8 and 11 for further discussion of our share redemption program. | |||||||||||||||||
Foreign Currency Translation | ' | ||||||||||||||||
Foreign Currency Translation | |||||||||||||||||
For non-U.S. functional currency operations, assets and liabilities are translated to U.S. dollars at current exchange rates. Revenues and expenses are translated at the average rates for the period. All related adjustments are recorded in other comprehensive income (loss) as a separate component of stockholders’ equity. Transactions denominated in a currency other than the functional currency of the related operation are recorded at rates of exchange in effect at the date of the transaction. Gains or losses on foreign currency transactions are recorded in other income (expense). For the three and nine months ended September 30, 2013, we recorded a gain of approximately $140,000 and a loss of approximately $180,000, respectively, and, for the three and nine months ended September 30, 2012, we recorded a gain of approximately $165,000 and $120,000, respectively. | |||||||||||||||||
Accounting for Equity Awards | ' | ||||||||||||||||
Accounting for Equity Awards | |||||||||||||||||
The cost of restricted stock is required to be measured based on the grant-date fair value and the cost to be recognized over the relevant service period. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The accounting standard for fair value measurements and disclosures defines fair value, establishes a framework for measuring fair value, and provides for expanded disclosure about fair value measurements. Fair value is defined by the accounting standard for fair value measurements and disclosures as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three levels. The following summarizes the three levels of inputs and hierarchy of fair value we use when measuring fair value: | |||||||||||||||||
• | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access; | ||||||||||||||||
• | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and | ||||||||||||||||
• | Level 3 inputs are unobservable inputs for the assets or liabilities that are typically based on an entity’s own assumptions as there is little, if any, related market activity. | ||||||||||||||||
In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level that is significant to the fair value measurement in its entirety. | |||||||||||||||||
The accounting guidance for fair value measurements and disclosures provides a framework for measuring fair value and establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty credit risk in our assessment of fair value. Considerable judgment is necessary to interpret Level 2 and 3 inputs in determining fair value of our financial and non-financial assets and liabilities. Accordingly, there can be no assurance that the fair values we present herein are indicative of amounts that may ultimately be realized upon sale or other disposition of these assets. | |||||||||||||||||
Financial and non-financial assets and liabilities measured at fair value on a non-recurring basis in our consolidated financial statements consist of real estate and related assets and investments in unconsolidated joint ventures and related liabilities assumed and equity consideration related to our acquisitions. The fair values of these assets, liabilities and equity consideration were determined as of the acquisition dates using widely accepted valuation techniques, including (i) discounted cash flow analysis, which considers, among other things, leasing assumptions, growth rates, discount rates and terminal capitalization rates, (ii) income capitalization approach, which considers prevailing market capitalization rates, and (iii) comparable sales activity. In general, we consider multiple valuation techniques when measuring fair values. However, in certain circumstances, a single valuation technique may be appropriate. All of the fair values of the assets, liabilities and common stock as of the acquisition dates were derived using Level 3 inputs. | |||||||||||||||||
The carrying amounts of cash and cash equivalents, tenant accounts receivable, other assets, accounts payable and accrued liabilities, distributions payable and amounts due to affiliates approximate fair value because of the relatively short-term nature of these instruments. | |||||||||||||||||
The table below summarizes our fixed rate notes payable at September 30, 2013. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate notes payable was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Fixed Rate Secured Debt | $ | 294,382,739 | $ | 285,749,948 | $ | 298,636,303 | $ | 287,912,016 | |||||||||
As of September 30, 2013, we had an interest rate swap on one of our loans (See Notes 5 and 6). The valuation of this instrument was 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 and implied volatilities. 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 curves. | |||||||||||||||||
To comply with GAAP, we incorporate credit valuation adjustments to appropriately reflect both our own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of our derivative contracts for the effect of nonperformance risk, we have considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. | |||||||||||||||||
Although we have determined that the majority of the inputs used to value our derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with our derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by us and our counterparties. However, as of September 30, 2013, we have assessed the significance of the impact of the credit valuation adjustments on the overall valuation of our derivative positions and have determined that the credit valuation adjustments are not significant to the overall valuation of our derivatives. As a result, we have determined that our derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. As of September 30, 2013, we had $360,702 of Level 2 derivatives (interest rate swap) classified in accounts payable and accrued liabilities on our consolidated balance sheet. | |||||||||||||||||
Derivative Instruments and Hedging Activities | ' | ||||||||||||||||
Derivative Instruments and Hedging Activities | |||||||||||||||||
The accounting for changes in the fair value of derivatives depends on the intended use of the derivative and the resulting designation. Derivatives used to hedge exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk are considered fair value hedges. Derivatives used to hedge the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges. | |||||||||||||||||
For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in the consolidated statements of operations. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income, outside of earnings and subsequently reclassified to earnings when the hedged transaction affects earnings. | |||||||||||||||||
Noncontrolling Interest in Consolidated Entities | ' | ||||||||||||||||
Noncontrolling Interest in Consolidated Entities | |||||||||||||||||
We account for the noncontrolling interest in our Operating Partnership in accordance with amended accounting guidance. Due to our control through our general partnership interest in our Operating Partnership and the limited rights of the limited partner, our Operating Partnership, including its wholly-owned subsidiaries, is consolidated with the Company and the limited partner interest is reflected as a noncontrolling interest in the accompanying consolidated balance sheets. In addition, we account for the noncontrolling interest in the SF property in accordance with the amended accounting guidance. The noncontrolling interests shall continue to be attributed their share of income and losses, even if that attribution results in a deficit noncontrolling interest balance. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
We made an election to be taxed as a Real Estate Investment Trust (“REIT”), under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended (the “Code”), commencing with our taxable year ended December 31, 2008. To qualify as a REIT, we must meet certain organizational and operational requirements, including a requirement to currently distribute at least 90% of the REIT’s ordinary taxable income to stockholders. As a REIT, we generally will not be subject to Federal income tax on taxable income that we distribute to our stockholders. If we fail to qualify as a REIT in any taxable year, we will then be subject to Federal income taxes on our taxable income at regular corporate rates and will not be permitted to qualify for treatment as a REIT for Federal income tax purposes for four years following the year during which qualification is lost unless the IRS grants us relief under certain statutory provisions. Such an event could materially adversely affect our net income and net cash available for distribution to stockholders. However, we believe that we will be organized and operate in such a manner as to qualify for treatment as a REIT and intend to operate in the foreseeable future in such a manner that we will remain qualified as a REIT for Federal income tax purposes. We have concluded that there are no significant uncertain tax positions requiring recognition or disclosure in our consolidated financial statements. | |||||||||||||||||
Even if we qualify for taxation as a REIT, we may be subject to certain state and local taxes on our income and property, and Federal income and excise taxes on our undistributed income. | |||||||||||||||||
We have filed an election to treat the TRSs as taxable REIT subsidiaries. In general, the TRSs may perform additional services for our tenants and generally may engage in any real estate or non-real estate related business. The TRSs are subject to corporate Federal and state income tax. The TRSs follow accounting guidance which requires the use of the asset and liability method. Deferred income taxes will represent the tax effect of future differences between the book and tax bases of assets and liabilities. | |||||||||||||||||
Per Share Data | ' | ||||||||||||||||
Per Share Data | |||||||||||||||||
Basic earnings per share attributable for all periods presented are computed by dividing net income (loss) by the weighted average number of shares outstanding during the period. Diluted earnings per share are computed by dividing net income (loss) by the weighted average number of shares outstanding, including all restricted stock grants as though fully vested. For the three and nine months ended September 30, 2013 and 2012, 6,250 shares, of unvested restricted stock were not included in the diluted weighted average shares as such shares were antidilutive. | |||||||||||||||||
Recently Issued Accounting Guidance | ' | ||||||||||||||||
Recently Issued Accounting Guidance | |||||||||||||||||
ASU No. 2013-02, “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” (“ASU 2013-02”), was issued in February 2013 and does not change the current requirements for reporting net income or other comprehensive income. However, ASU 2013-02 requires disclosure of significant amounts reclassified out of accumulated other comprehensive income in their entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross-referenced to other disclosures that provide additional detail. This standard is effective prospectively for annual and interim reporting periods beginning after December 15, 2012. We adopted this ASU in the interim period ending March 31, 2013 and its adoption did not have a material impact on our consolidated financial statements or financial statement disclosures. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Estimated Useful Lives used to Depreciate Real Property Assets | ' | ||||||||||||||||
Depreciation of our real property assets is charged to expense on a straight-line basis over the estimated useful lives as follows: | |||||||||||||||||
Description | Standard Depreciable Life | ||||||||||||||||
Land | Not Depreciated | ||||||||||||||||
Buildings | 30 to 35 years | ||||||||||||||||
Site Improvements | 7 to 15 years | ||||||||||||||||
Fixed Rate Notes Payable | ' | ||||||||||||||||
Accordingly, the estimates presented below are not necessarily indicative of the amounts we would realize in a current market exchange. | |||||||||||||||||
September 30, 2013 | December 31, 2012 | ||||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||||
Fixed Rate Secured Debt | $ | 294,382,739 | $ | 285,749,948 | $ | 298,636,303 | $ | 287,912,016 |
Real_Estate_Facilities_Tables
Real Estate Facilities (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||
Summary of Activity in Real Estate Facilities | ' | ||||||||||||||||||||||
The following summarizes our activity in real estate facilities during the nine months ended September 30, 2013: | |||||||||||||||||||||||
Real estate facilities | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 604,727,895 | |||||||||||||||||||||
Facility acquisitions | 16,152,155 | ||||||||||||||||||||||
Impact of foreign exchange rate changes | (969,080 | ) | |||||||||||||||||||||
Improvements and additions | 14,969,408 | ||||||||||||||||||||||
Balance at September 30, 2013 | $ | 634,880,378 | |||||||||||||||||||||
Accumulated depreciation | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | (29,840,320 | ) | ||||||||||||||||||||
Depreciation expense | (12,080,887 | ) | |||||||||||||||||||||
Balance at September 30, 2013 | $ | (41,921,207 | ) | ||||||||||||||||||||
Preliminary Purchase Price Allocation for Acquisitions | ' | ||||||||||||||||||||||
The following table summarizes the preliminary purchase price allocation for our acquisitions for the nine months ended September 30, 2013: | |||||||||||||||||||||||
Property | Acquisition | Real Estate | Intangibles | Total(1) | 2013 | 2013 | |||||||||||||||||
Date | Assets | Revenue(2) | Property | ||||||||||||||||||||
Operating | |||||||||||||||||||||||
Income(2)(3) | |||||||||||||||||||||||
North Charleston – SC | 7/10/13 | $ | 6,152,000 | $ | 420,000 | $ | 6,572,000 | $ | 166,076 | $ | 80,621 | ||||||||||||
Toms River II – NJ | 8/28/13 | 4,900,000 | 300,000 | 5,200,000 | 49,830 | 31,268 | |||||||||||||||||
Pickering – ONT (4) (5) | 8/29/13 | 5,100,155 | — | 5,100,155 | — | — | |||||||||||||||||
Total | $ | 16,152,155 | $ | 720,000 | $ | 16,872,155 | $ | 215,906 | $ | 111,889 | |||||||||||||
(1) | The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting. | ||||||||||||||||||||||
(2) | The operating results of the facilities acquired above have been included in the Company’s statements of operations since their respective acquisition date. | ||||||||||||||||||||||
(3) | Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses. | ||||||||||||||||||||||
(4) | Allocation (excludes estimated development costs) based on Canadian/U.S. exchange rate as of the date of acquisition. | ||||||||||||||||||||||
(5) | Property is under construction; therefore the property generated no revenue or operating income as of September 30, 2013. |
Secured_Debt_Tables
Secured Debt (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Secured Debt | ' | ||||||||||||||||
Our secured debt is summarized as follows: | |||||||||||||||||
Carrying value as of: | |||||||||||||||||
Encumbered Property | September 30, | December 31, | Interest | Maturity | |||||||||||||
2013 | 2012 | Rate | Date | ||||||||||||||
Montgomery | $ | 2,712,776 | $ | 2,768,704 | 6.42 | % | 7/1/16 | ||||||||||
Seabrook | 4,462,788 | 4,516,470 | 5.73 | % | 1/1/16 | ||||||||||||
Greenville | 2,236,323 | 2,263,211 | 5.65 | % | 3/1/16 | ||||||||||||
Kemah | 8,765,556 | 8,858,838 | 6.2 | % | 6/1/16 | ||||||||||||
Memphis | 2,474,814 | 2,502,922 | 5.67 | % | 12/1/16 | ||||||||||||
Tallahassee | 7,469,964 | 7,537,926 | 6.16 | % | 8/1/16 | ||||||||||||
Houston | 1,990,790 | 2,018,754 | 5.67 | % | 2/1/17 | ||||||||||||
San Francisco (consolidated VIE) | 10,290,056 | 10,387,192 | 5.84 | % | 12/1/16 | ||||||||||||
Lake Forest | 18,000,000 | 18,000,000 | 6.47 | % | 10/1/17 | ||||||||||||
Las Vegas I | 1,516,923 | 1,530,923 | 5.72 | % | 6/1/17 | ||||||||||||
Pearland | 3,449,304 | 3,480,298 | 5.93 | % | 7/1/17 | ||||||||||||
Daphne | 1,422,892 | 1,544,325 | 5.47 | % | 8/1/20 | ||||||||||||
Mesa | 2,985,527 | 3,036,098 | 5.38 | % | 4/1/15 | ||||||||||||
Riverdale | 4,800,000 | 4,800,000 | 4 | % | 5/14/14 | ||||||||||||
Prudential Portfolio Loan (1) (2) | 31,173,039 | 31,547,772 | 5.42 | % | 9/5/19 | ||||||||||||
Dufferin – Toronto – Ontario, Canada (3) | 6,427,398 | 6,812,855 | 5.22 | % | 12/15/13 | ||||||||||||
Citi Loan (4) | 28,178,378 | 28,466,942 | 5.77 | % | 2/6/21 | ||||||||||||
Bank of America Loan – 1 (5) | 4,342,021 | 4,400,398 | 5.18 | % | 11/1/15 | ||||||||||||
Bank of America Loan – 2 (6) | 6,579,325 | 6,667,782 | 5.18 | % | 11/1/15 | ||||||||||||
Bank of America Loan – 3 (7) | 11,825,662 | 11,984,654 | 5.18 | % | 11/1/15 | ||||||||||||
Prudential – Long Beach (8) | 6,560,228 | 6,637,926 | 5.27 | % | 9/5/19 | ||||||||||||
SF Bay Area – Morgan Hill (19) | — | 2,928,860 | 5.75 | % | 4/1/13 | ||||||||||||
SF Bay Area – Vallejo | 4,319,591 | 4,390,176 | 6.04 | % | 6/1/14 | ||||||||||||
Citi Las Vegas Loan (9) | 7,463,187 | 7,545,688 | 5.26 | % | 6/6/21 | ||||||||||||
ING Loan (10) | 21,347,698 | 21,587,669 | 5.47 | % | 7/1/21 | ||||||||||||
Ladera Ranch | 6,724,791 | 6,821,300 | 5.84 | % | 6/1/16 | ||||||||||||
SF Bay Area – San Lorenzo | 2,043,702 | 2,099,622 | 6.07 | % | 1/1/14 | ||||||||||||
Las Vegas V | 1,638,699 | 1,667,485 | 5.02 | % | 7/1/15 | ||||||||||||
Second Restated KeyBank Loan (11) | 45,000,000 | 51,666,666 | 4.68 | % | 12/24/14 | (11) | |||||||||||
Mississauga (12) – Ontario, Canada | 7,016,261 | 6,841,134 | 5 | % | 10/31/14 | ||||||||||||
Chantilly (13) | 3,435,376 | 3,474,712 | 4.75 | % | 6/6/22 | ||||||||||||
Brampton (14) – Ontario, Canada | 5,565,898 | 208,086 | 5.25 | % | 6/30/16 | ||||||||||||
Citi Stockade Loan – 1 (15) | 18,200,000 | 18,200,000 | 4.6 | % | 10/1/22 | ||||||||||||
KeyBank CMBS Loan (16) | 31,000,000 | 31,000,000 | 4.65 | % | 11/1/22 | ||||||||||||
Citi Stockade Loan – 2 (17) | 19,362,500 | 19,362,500 | 4.61 | % | 11/6/22 | ||||||||||||
Bank of America Loan – 4 (18) | 6,412,469 | 6,459,043 | 6.33 | % | 10/1/17 | ||||||||||||
Citi SF Bay Area – Morgan Hill Loan (19) | 3,000,000 | — | 4.08 | % | 3/6/23 | ||||||||||||
Net fair value adjustment | (434,431 | ) | (576,173 | ) | |||||||||||||
Total secured debt | $ | 349,759,505 | $ | 353,440,758 | |||||||||||||
(1) | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas II). Each of the individual loans is cross-collateralized by the other ten. | ||||||||||||||||
(2) | Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%. | ||||||||||||||||
(3) | On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank’s floating rate plus 3.5% (subject to a reduction in certain circumstances). The rate in effect at September 30, 2013 was 5.22%. | ||||||||||||||||
(4) | This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago – 95th St., Chicago – Western Ave., Chicago – Ogden Ave., Chicago – Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of September 30, 2013 was approximately $50.2 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(5) | This loan encumbers the Lawrenceville I and II properties. | ||||||||||||||||
(6) | This loan encumbers the Concord, Hickory and Morganton properties. | ||||||||||||||||
(7) | This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property. | ||||||||||||||||
(8) | This loan is cross-collateralized by the 11 properties discussed in footnote (1) to this table. | ||||||||||||||||
(9) | This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of September 30, 2013 was approximately $9.1 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(10) | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans have an original term of 30 years and mature on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021. | ||||||||||||||||
(11) | As of September 30, 2013 and December 31, 2012, this loan was collateralized by the Homeland Portfolio. This loan is a variable rate loan, such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 4.68% as of September 30, 2013; however, we were required to purchase an interest rate swap with a notional amount of $45 million, and, inclusive of the interest rate swap, the effective fixed interest rate is 5.41%. For additional discussion, see “Second Restated KeyBank Loan” below. This loan was paid off in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the “KeyBank Revolver”), with a maturity date of October 25, 2016. The KeyBank Revolver is further described in Note 11. | ||||||||||||||||
(12) | In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2% (totaling 5.00% as of September 30, 2013). | ||||||||||||||||
(13) | The net book value of the Chantilly property as of September 30, 2013 was approximately $6.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(14) | In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank’s floating rate, plus 2.25% (totaling 5.25% as of September 30, 2013). | ||||||||||||||||
(15) | This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of September 30, 2013 was approximately $34.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(16) | This portfolio loan encumbers nine properties (Los Angeles – La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area – Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of September 30, 2013 was approximately $41.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(17) | This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of September 30, 2013 was approximately $37.6 million. Such amounts are only available to satisfy the obligations of this loan. | ||||||||||||||||
(18) | This loan encumbers the Ridgeland and Canton properties. | ||||||||||||||||
(19) | The SF Bay Area – Morgan Hill loan was paid off on March 5, 2013 using proceeds from the Citi SF Bay Area – Morgan Hill Loan. For additional discussion, see “Citi SF Bay Area – Morgan Hill Loan” below. | ||||||||||||||||
Future Principal Payment Requirements on Outstanding Secured Debt | ' | ||||||||||||||||
The following table presents the future principal payment requirements on outstanding secured debt as of September 30, 2013: | |||||||||||||||||
2013 | $ | 7,326,186 | |||||||||||||||
2014 | 21,930,121 | ||||||||||||||||
2015 | 30,578,426 | ||||||||||||||||
2016 | 97,233,220 | ||||||||||||||||
2017 | 33,980,454 | ||||||||||||||||
2018 and thereafter | 159,145,529 | ||||||||||||||||
Total payments (1) (2) | 350,193,936 | ||||||||||||||||
Unamortized fair value adjustment | (434,431 | ) | |||||||||||||||
Total | $ | 349,759,505 | |||||||||||||||
-1 | Debt denominated in foreign currency has been converted at the conversion rate in effect as of the end of the period. | ||||||||||||||||
-2 | This table reflects the terms of the KeyBank Revolver discussed in Note 11. |
Derivative_Instruments_Cash_Fl1
Derivative Instruments - Cash Flow Hedge of Interest Rate Risk (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ' | ||||||||||||
Interest Rate Derivative Designated as Cash Flow Hedge of Interest Rate Risk | ' | ||||||||||||
As of September 30, 2013, we had one derivative outstanding, which was an interest rate derivative that was designated as a cash flow hedge of interest rate risk: | |||||||||||||
Interest Rate Derivative | Number of | Notional | |||||||||||
Instruments | |||||||||||||
Interest Rate Swaps | 1 | $ | 45,000,000 | ||||||||||
Fair Value of Derivative Financial Instruments as well as Classification on Balance Sheet | ' | ||||||||||||
The table below presents the fair value of our derivative financial instruments as well as their classification on the consolidated balance sheet as of September 30, 2013 and December 31, 2012: | |||||||||||||
As of September 30, 2013 | As of December 31, 2012 | ||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||
Location | Location | ||||||||||||
Interest rate derivatives | |||||||||||||
Assets | Other assets | $ | — | Other assets | $ | — | |||||||
Liabilities | Accounts payable and | $ | 360,702 | Accounts payable and | $ | 546,333 | |||||||
accrued liabilities | accrued liabilities | ||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Summary of Related Party Costs Incurred | ' | ||||||||||||||||
Pursuant to the terms of the agreements described above, the following summarizes the related party costs incurred for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months | Three Months | Nine Months | Nine Months | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Expensed | |||||||||||||||||
Reimbursement of operating expenses (including organizational costs) (1) | $ | 11,992 | $ | 7,965 | $ | 34,093 | $ | 29,760 | |||||||||
Asset management fees (2) | 1,214,561 | 1,152,316 | 3,571,501 | 3,398,273 | |||||||||||||
Property management fees (3)(4) | 1,251,116 | 968,090 | 3,539,318 | 2,690,149 | |||||||||||||
Acquisition expenses | 476,656 | 770,915 | 583,275 | 1,034,065 | |||||||||||||
Additional Paid-in Capital | |||||||||||||||||
Selling commissions | 4,075,472 | 800,431 | 7,004,507 | 6,333,780 | |||||||||||||
Dealer Manager fee | 1,746,632 | 343,042 | 3,001,932 | 2,714,477 | |||||||||||||
Reimbursement of offering costs | 92,665 | 121,233 | 316,794 | 371,155 | |||||||||||||
Total | $ | 8,869,094 | $ | 4,163,992 | $ | 18,051,420 | $ | 16,571,659 | |||||||||
(1) | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $350,000 and $251,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $975,000 and $773,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | ||||||||||||||||
(2) | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $176,000 and $33,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $525,000 and $33,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | ||||||||||||||||
(3) | During the three and nine months ended September 30, 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $177,000 and $521,000, respectively for the three and nine months ended September 30, 2013 and were waived permanently and accordingly, will not be paid to our Property Manager. | ||||||||||||||||
(4) | During the three months ended September 30, 2013 and 2012, property management fees include approximately $0 and $33,000, respectively, of fees paid to the sub-property manager of our Canadian properties. During the nine months ended September 30, 2013 and 2012, property management fees include approximately $27,000 and $90,000, respectively, of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||
Sep. 30, 2013 | |||
Commitments And Contingencies Disclosure [Abstract] | ' | ||
Stock for Redemptions Based on Number of Years Stock Held | ' | ||
The amount that we may pay to redeem stock for redemptions is the redemption price set forth in the following table which is based upon the number of years the stock is held: | |||
Number Years Held | Redemption Price | ||
Less than 1 | No Redemption Allowed | ||
1 or more but less than 2 | 90.0% of Redemption Amount | ||
2 or more but less than 3 | 92.5% of Redemption Amount | ||
3 or more but less than 4 | 95.0% of Redemption Amount | ||
4 or more | 100.0% of Redemption Amount |
Selected_Quarterly_Data_Tables
Selected Quarterly Data (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Quarterly Financial Information | ' | ||||||||||||||||||||
The following is a summary of quarterly financial information for the periods shown below: | |||||||||||||||||||||
Three months ended | |||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||
2012 | 2012 | 2013 | 2013 | 2013 | |||||||||||||||||
Total revenues | $ | 17,098,173 | $ | 18,455,140 | $ | 19,407,941 | $ | 19,931,208 | $ | 21,292,574 | |||||||||||
Total operating expenses | $ | 17,000,260 | $ | 17,351,457 | $ | 16,557,885 | $ | 16,667,044 | $ | 17,229,995 | |||||||||||
Operating income | $ | 97,913 | $ | 1,103,683 | $ | 2,850,056 | $ | 3,264,164 | $ | 4,062,579 | |||||||||||
Net loss | $ | (4,620,823 | ) | $ | (3,852,041 | ) | $ | (2,167,459 | ) | $ | (1,949,099 | ) | $ | (689,288 | ) | ||||||
Net loss attributable to the Company | $ | (4,610,650 | ) | $ | (3,843,894 | ) | $ | (2,167,224 | ) | $ | (1,949,079 | ) | $ | (693,245 | ) | ||||||
Net loss per share-basic and diluted | $ | (0.11 | ) | $ | (0.08 | ) | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.01 | ) |
Subsequent_Events_Tables
Subsequent Events (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Subsequent Events [Abstract] | ' | ||||||||||||||||||
Acquisition of Self Storage Properties from Unaffiliated Third Parties | ' | ||||||||||||||||||
Subsequent to September 30, 2013, we acquired the following self storage properties from unaffiliated third parties: | |||||||||||||||||||
Property | Acquisition Date | Acquisition Price | Year Built | Approx. | Approx. Sq. Ft. | ||||||||||||||
Units | (net) | ||||||||||||||||||
Knoxville I – TN | 10/28/13 | $ | 8,530,000 | 1996/2005 | 650 | 101,700 | |||||||||||||
Knoxville II – TN | 10/28/13 | $ | 10,900,000 | 2006 | 680 | 78,500 | |||||||||||||
Knoxville III – TN | 10/28/13 | $ | 8,500,000 | 2005 | 510 | 73,300 | |||||||||||||
Montgomery II – AL | 10/28/13 | $ | 8,600,000 | 2005 | 540 | 65,400 | |||||||||||||
Total | $ | 36,530,000 | 2,380 | 318,900 | |||||||||||||||
Organization_Additional_Inform
Organization - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||
Sep. 23, 2013 | Mar. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 01, 2012 | Sep. 22, 2011 | Sep. 16, 2011 | 22-May-08 | Mar. 17, 2008 | Aug. 24, 2007 | Sep. 16, 2011 | Sep. 30, 2013 | Aug. 31, 2007 | Aug. 24, 2007 | Aug. 24, 2007 | |
Store | IPO | IPO | Strategic Storage Operating Partnership, L.P. | Strategic Storage Operating Partnership, L.P. | Strategic Storage Advisor LLC | |||||||||||
sqft | ||||||||||||||||
State | ||||||||||||||||
Organization and Nature of Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of formation of company | ' | ' | 14-Aug-07 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 |
Number of shares purchased | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | 53,000,000 | ' | ' | 100 |
Common stock, shares authorized | ' | ' | 700,000,000 | ' | 700,000,000 | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' |
Common stock, par value | ' | ' | $0.00 | ' | $0.00 | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' |
Number of preferred stock, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' |
Preferred stock, par value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' |
Advisor purchased a limited partnership interest in Operating Partnership | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' |
Initial capital contribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' |
Percentage of limited partnership interests | ' | ' | 99.55% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining limited partnership interests owned by Advisor | ' | ' | 0.04% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining limited partnership interests owned by unaffiliated third parties | ' | ' | 0.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock sold pursuant to the completed initial offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 289,000,000 | ' | ' | ' | ' |
Proceeds from Stock Issuance | ' | ' | 103,127,672 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 542,000,000 | ' | ' | ' |
Date of launch of the Initial Offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17-Mar-08 | ' | ' | ' | ' | ' | ' |
Date of satisfying minimum offering requirements and commencing formal operations | ' | ' | ' | ' | ' | ' | ' | ' | 22-May-08 | ' | ' | ' | ' | ' | ' | ' |
Date of terminating the Initial Offering | ' | ' | ' | ' | ' | ' | ' | 16-Sep-11 | ' | ' | ' | ' | ' | ' | ' | ' |
Date of commencing follow-on public offering | ' | ' | ' | ' | ' | ' | 22-Sep-11 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock | ' | ' | ' | ' | ' | ' | 110,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares for sale to the public | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares for sale pursuant to our distribution reinvestment plan | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of shares pursuant to distribution reinvestment plan | $51,250,000 | ' | $11,316,639 | $8,853,381 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued in a Private Offering | ' | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Original offering price of common stock | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased price per share | ' | ' | ' | ' | ' | $10.79 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Follow-on public offering, date of offering price revised | ' | ' | ' | ' | ' | 1-Jun-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Owned By chief executive officer In Dealer Manager | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Class D Units issued by Operating Partnership in connection with acquisition of the Las Vegas VII and Las Vegas VIII properties | ' | 120,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of wholly-owned self storage facilities | ' | ' | 113 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of states in which wholly-owned self storage facilities are located | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of operation units | ' | ' | 72,190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net rentable square feet of the facilities | ' | ' | 9,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling interests in additional self storage facilities | ' | ' | 8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Area of lease to single tenant | ' | ' | 356,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2010 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
sqft | Y | |||||
sqft | ||||||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Additional interest acquired in VIE as primary beneficiary | 2.00% | ' | ' | ' | ' | ' |
Net interest in property | 12.00% | ' | ' | ' | ' | ' |
Initial term of lease | ' | ' | ' | '10 years | ' | ' |
Number of successive five year terms | ' | ' | ' | 4 | ' | ' |
Extension period of operating lease | ' | ' | ' | '5 years | ' | ' |
Net real estate asset in consolidated joint venture | ' | $16,600,000 | ' | $16,600,000 | ' | ' |
Portion of consolidated secured debt | ' | 10,100,000 | ' | 10,100,000 | ' | ' |
Portion of non-controlling interest | ' | 5,700,000 | ' | 5,700,000 | ' | ' |
Maturity of short-term liquid investments convertible to cash | ' | ' | ' | 'Three months or less | ' | ' |
Preliminary purchase price allocation to intangible assets | ' | 700,000 | ' | 700,000 | ' | ' |
Amount paid as acquisition fees | ' | 900,000 | 1,400,000 | 1,100,000 | 2,100,000 | ' |
Number of preferred equity acquired | ' | 5 | ' | 5 | ' | ' |
Number of wholly-owned preferred equity | ' | ' | ' | 1 | ' | ' |
Aggregate investment | ' | 100,000 | ' | 100,000 | ' | ' |
Area of lease to single tenant | ' | 356,000 | ' | 356,000 | ' | ' |
Amount Receivable as return on investment | ' | ' | ' | 6,900,000 | ' | ' |
Rate of return on investment | ' | ' | ' | 10.00% | ' | ' |
Maximum exposure to loss | ' | 27,600,000 | ' | 27,600,000 | ' | ' |
Maturity date of guaranteed loan | ' | ' | ' | 1-Aug-20 | ' | ' |
Accumulated amortization of deferred financing costs | ' | 5,500,000 | ' | 5,500,000 | ' | 4,400,000 |
Maximum period for reimbursement of offering cost | ' | ' | ' | '60 days | ' | ' |
Maximum offering cost rate | ' | ' | ' | 3.50% | ' | ' |
Number of common stock redeemed | ' | 400,000 | ' | ' | ' | ' |
Common stock redeemed, per share value | ' | $9.71 | ' | ' | ' | ' |
Common stock redeemed, value | ' | 3,700,000 | ' | ' | ' | ' |
Redemption request of common stock, shares | ' | 247,000 | ' | 247,000 | ' | ' |
Redemption request of common stock, value | ' | 2,400,000 | ' | 2,400,000 | ' | ' |
The notice period for termination of the redemption program | ' | '30 days | ' | '30 days | ' | ' |
Net gain (loss) recorded on foreign currency transactions | ' | 140,000 | 165,000 | -180,000 | 120,000 | ' |
Minimum percentage of ordinary taxable income to be distributed to stockholders | ' | ' | ' | 90.00% | ' | ' |
Antidilutive unvested restricted stock not included in diluted weighted average shares | ' | 6,250 | 6,250 | 6,250 | 6,250 | ' |
Non Interest Bearing | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Non-interest bearing distributions receivable | ' | ' | ' | 400,000 | ' | ' |
Westport Lax LLC | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Ownership interest in Westport LAX LLC | ' | 12.00% | ' | 12.00% | ' | ' |
Carrying value in equity method investment | ' | 1,300,000 | ' | 1,300,000 | ' | ' |
Ownership percentage of affiliates | ' | ' | ' | 78.00% | ' | ' |
Remaining interest in Westport owned by third party | ' | ' | ' | 10.00% | ' | ' |
Minimum | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Aggregate investment | ' | 27,000 | ' | 27,000 | ' | ' |
Percentage of ownership interest | ' | ' | ' | 0.28% | ' | ' |
Maximum | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Aggregate investment | ' | 100,000 | ' | 100,000 | ' | ' |
Percentage of ownership interest | ' | ' | ' | 1.49% | ' | ' |
Fair Value, Inputs, Level 2 | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Derivative liabilities classified in accounts payable and accrued liabilities, at fair value | ' | 360,702 | ' | 360,702 | ' | ' |
Actual | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum offering cost rate | ' | ' | ' | 3.50% | ' | ' |
Personal Property | Minimum | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | '3 years | ' | ' |
Personal Property | Maximum | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | '5 years | ' | ' |
In-place lease intangibles | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Accumulated amortization of lease intangibles | ' | 42,800,000 | ' | 42,800,000 | ' | 36,400,000 |
Delaware statutory trust (DST) | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Passive or limited partner interests in storage facilities | ' | ' | ' | 2 | ' | ' |
Hawthorne Property | ' | ' | ' | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' |
Maximum exposure to loss | ' | $19,000,000 | ' | $19,000,000 | ' | ' |
Estimated_Useful_Lives_used_to
Estimated Useful Lives used to Depreciate Real Property Assets (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Land | 'Not Depreciated |
Buildings | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '30 years |
Buildings | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '35 years |
Site Improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '7 years |
Site Improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Standard Depreciable Life | '15 years |
Fixed_Rate_Notes_Payable_Detai
Fixed Rate Notes Payable (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Fixed Rate Secured Debt, Fair Value | $294,382,739 | $298,636,303 |
Fixed Rate Secured Debt, Carrying Value | $285,749,948 | $287,912,016 |
Madison_County_Self_Storage_DS1
Madison County Self Storage, DST Acquisition - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
Store | Madison County Self Storage, DST | Madison County Self Storage, DST | |
sqft | sqft | Remaining Ownership Percentage | |
Property | |||
Vendor | |||
Store | |||
Business Combination, Pro Forma Information [Line Items] | ' | ' | ' |
Beneficial interest acquired | ' | 100.00% | 52.00% |
Business acquisition purchase price | ' | $10,700,000 | ' |
Business acquisition cash paid | ' | 3,100,000 | ' |
Number of limited partnership units issued | ' | 84,000 | ' |
Loan assumed as purchase consideration | ' | 6,500,000 | ' |
Number of third party sellers | ' | 13 | ' |
Acquisition fees paid to the advisor | $400,000 | $133,000 | ' |
Number of wholly-owned self storage facilities | 113 | 2 | ' |
Number of operation units | 72,190 | 895 | ' |
Total rental area | 9,500,000 | 149,300 | ' |
Fixed interest rate on loan | ' | 6.33% | ' |
Term of loan | ' | '10 years | ' |
Number of properties secured on loan | ' | 2 | ' |
Summary_of_Activity_in_Real_Es
Summary of Activity in Real Estate Facilities (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Real estate facilities | ' |
Beginning balance | $604,727,895 |
Facility acquisitions | 16,152,155 |
Impact of foreign exchange rate changes | -969,080 |
Improvements and additions | 14,969,408 |
Ending balance | 634,880,378 |
Accumulated depreciation | ' |
Beginning balance | -29,840,320 |
Depreciation | -12,080,887 |
Ending balance | ($41,921,207) |
Preliminary_Purchase_Price_All
Preliminary Purchase Price Allocation for Acquisitions (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Business Acquisition [Line Items] | ' | |
Real Estate Assets | $16,152,155 | |
Intangibles | 720,000 | |
Total | 16,872,155 | [1] |
2013 Revenue | 215,906 | [2] |
2013 Property Operating Income | 111,889 | [2],[3] |
North Charleston - SC | ' | |
Business Acquisition [Line Items] | ' | |
Acquisition Date | 10-Jul-13 | |
Real Estate Assets | 6,152,000 | |
Intangibles | 420,000 | |
Total | 6,572,000 | [1] |
2013 Revenue | 166,076 | [2] |
2013 Property Operating Income | 80,621 | [2],[3] |
Toms River II - NJ | ' | |
Business Acquisition [Line Items] | ' | |
Acquisition Date | 28-Aug-13 | |
Real Estate Assets | 4,900,000 | |
Intangibles | 300,000 | |
Total | 5,200,000 | [1] |
2013 Revenue | 49,830 | [2] |
2013 Property Operating Income | 31,268 | [2],[3] |
Pickering - ONT | ' | |
Business Acquisition [Line Items] | ' | |
Acquisition Date | 29-Aug-13 | [4],[5] |
Real Estate Assets | 5,100,155 | [4],[5] |
Total | $5,100,155 | [1],[4],[5] |
[1] | The allocations noted above are based on a preliminary determination of the fair value of the total consideration provided. Such valuations may change as we complete our purchase price accounting. | |
[2] | The operating results of the facilities acquired above have been included in the Company's statements of operations since their respective acquisition date. | |
[3] | Property operating income excludes corporate general and administrative expenses, asset management fees, interest expense, depreciation, amortization and acquisition expenses. | |
[4] | Allocation (excludes estimated development costs) based on Canadian/U.S. exchange rate as of the date of acquisition. | |
[5] | Property is under construction; therefore the property generated no revenue or operating income as of September 30, 2013. |
Real_Estate_Facilities_Additio
Real Estate Facilities - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Real Estate Properties Base Purchase Price [Abstract] | ' |
Amount paid as acquisition fees | $0.40 |
Summary_of_Secured_Debt_Detail
Summary of Secured Debt (Detail) (USD $) | 1 Months Ended | 9 Months Ended | |||
Mar. 05, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | $349,759,505 | $353,440,758 | ||
Prudential Portfolio Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 31,173,039 | [1],[2] | 31,547,772 | [1],[2] |
Interest Rate | ' | 5.42% | [1],[2] | ' | |
Maturity date | ' | 5-Sep-19 | [1],[2] | ' | |
Montgomery | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 2,712,776 | 2,768,704 | ||
Interest Rate | ' | 6.42% | ' | ||
Maturity date | ' | 1-Jul-16 | ' | ||
Seabrook | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 4,462,788 | 4,516,470 | ||
Interest Rate | ' | 5.73% | ' | ||
Maturity date | ' | 1-Jan-16 | ' | ||
Greenville | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 2,236,323 | 2,263,211 | ||
Interest Rate | ' | 5.65% | ' | ||
Maturity date | ' | 1-Mar-16 | ' | ||
Kemah | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 8,765,556 | 8,858,838 | ||
Interest Rate | ' | 6.20% | ' | ||
Maturity date | ' | 1-Jun-16 | ' | ||
Memphis | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 2,474,814 | 2,502,922 | ||
Interest Rate | ' | 5.67% | ' | ||
Maturity date | ' | 1-Dec-16 | ' | ||
Tallahassee | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 7,469,964 | 7,537,926 | ||
Interest Rate | ' | 6.16% | ' | ||
Maturity date | ' | 1-Aug-16 | ' | ||
Houston | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 1,990,790 | 2,018,754 | ||
Interest Rate | ' | 5.67% | ' | ||
Maturity date | ' | 1-Feb-17 | ' | ||
San Francisco (consolidated VIE) | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 10,290,056 | 10,387,192 | ||
Interest Rate | ' | 5.84% | ' | ||
Maturity date | ' | 1-Dec-16 | ' | ||
Lake Forest | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 18,000,000 | 18,000,000 | ||
Interest Rate | ' | 6.47% | ' | ||
Maturity date | ' | 1-Oct-17 | ' | ||
Las Vegas I | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 1,516,923 | 1,530,923 | ||
Interest Rate | ' | 5.72% | ' | ||
Maturity date | ' | 1-Jun-17 | ' | ||
Pearland | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 3,449,304 | 3,480,298 | ||
Interest Rate | ' | 5.93% | ' | ||
Maturity date | ' | 1-Jul-17 | ' | ||
Daphne | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 1,422,892 | 1,544,325 | ||
Interest Rate | ' | 5.47% | ' | ||
Maturity date | ' | 1-Aug-20 | ' | ||
Mesa | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 2,985,527 | 3,036,098 | ||
Interest Rate | ' | 5.38% | ' | ||
Maturity date | ' | 1-Apr-15 | ' | ||
Riverdale | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 4,800,000 | 4,800,000 | ||
Interest Rate | ' | 4.00% | ' | ||
Maturity date | ' | 14-May-14 | ' | ||
Dufferin - Toronto - Ontario, Canada | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 6,427,398 | [3] | 6,812,855 | [3] |
Interest Rate | ' | 5.22% | [3] | ' | |
Maturity date | ' | 15-Dec-13 | [3] | ' | |
Citi Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 28,178,378 | [4] | 28,466,942 | [4] |
Interest Rate | ' | 5.77% | [4] | ' | |
Maturity date | ' | 6-Feb-21 | [4] | ' | |
Bank of America Loan - 1 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 4,342,021 | [5] | 4,400,398 | [5] |
Interest Rate | ' | 5.18% | [5] | ' | |
Maturity date | ' | 1-Nov-15 | [5] | ' | |
Bank of America Loan - 2 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 6,579,325 | [6] | 6,667,782 | [6] |
Interest Rate | ' | 5.18% | [6] | ' | |
Maturity date | ' | 1-Nov-15 | [6] | ' | |
Bank of America Loan - 3 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 11,825,662 | [7] | 11,984,654 | [7] |
Interest Rate | ' | 5.18% | [7] | ' | |
Maturity date | ' | 1-Nov-15 | [7] | ' | |
Prudential - Long Beach | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 6,560,228 | [8] | 6,637,926 | [8] |
Interest Rate | ' | 5.27% | [8] | ' | |
Maturity date | ' | 5-Sep-19 | [8] | ' | |
SF Bay Area - Morgan Hill | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | ' | 2,928,860 | [9] | |
Interest Rate | ' | 5.75% | [9] | ' | |
Maturity date | 6-Mar-23 | 1-Apr-13 | [9] | ' | |
SF Bay Area - Vallejo | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 4,319,591 | 4,390,176 | ||
Interest Rate | ' | 6.04% | ' | ||
Maturity date | ' | 1-Jun-14 | ' | ||
Citi Las Vegas Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 7,463,187 | [10] | 7,545,688 | [10] |
Interest Rate | ' | 5.26% | [10] | ' | |
Maturity date | ' | 6-Jun-21 | [10] | ' | |
ING Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 21,347,698 | [11] | 21,587,669 | [11] |
Interest Rate | ' | 5.47% | [11] | ' | |
Maturity date | ' | 1-Jul-21 | [11] | ' | |
Ladera Ranch | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 6,724,791 | 6,821,300 | ||
Interest Rate | ' | 5.84% | ' | ||
Maturity date | ' | 1-Jun-16 | ' | ||
SF Bay Area - San Lorenzo | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 2,043,702 | 2,099,622 | ||
Interest Rate | ' | 6.07% | ' | ||
Maturity date | ' | 1-Jan-14 | ' | ||
Las Vegas V | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 1,638,699 | 1,667,485 | ||
Interest Rate | ' | 5.02% | ' | ||
Maturity date | ' | 1-Jul-15 | ' | ||
Second Restated Key Bank Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 45,000,000 | [12] | 51,666,666 | [12] |
Interest Rate | ' | 4.68% | [12] | ' | |
Maturity date | ' | 24-Dec-14 | [12] | ' | |
Mississauga - Ontario, Canada | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 7,016,261 | [13] | 6,841,134 | [13] |
Interest Rate | ' | 5.00% | [13] | ' | |
Maturity date | ' | 31-Oct-14 | [13] | ' | |
Chantilly | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 3,435,376 | [14] | 3,474,712 | [14] |
Interest Rate | ' | 4.75% | [14] | ' | |
Maturity date | ' | 6-Jun-22 | [14] | ' | |
Brampton - Ontario, Canada | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 5,565,898 | [15] | 208,086 | [15] |
Interest Rate | ' | 5.25% | [15] | ' | |
Maturity date | ' | 30-Jun-16 | [15] | ' | |
Citi Stockade Loan - 1 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 18,200,000 | [16] | 18,200,000 | [16] |
Interest Rate | ' | 4.60% | [16] | ' | |
Maturity date | ' | 1-Oct-22 | [16] | ' | |
KeyBank CMBS Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 31,000,000 | [17] | 31,000,000 | [17] |
Interest Rate | ' | 4.65% | [17] | ' | |
Maturity date | ' | 1-Nov-22 | [17] | ' | |
Citi Stockade Loan - 2 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 19,362,500 | [18] | 19,362,500 | [18] |
Interest Rate | ' | 4.61% | [18] | ' | |
Maturity date | ' | 6-Nov-22 | [18] | ' | |
Bank of America Loan - 4 | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 6,412,469 | [19] | 6,459,043 | [19] |
Interest Rate | ' | 6.33% | [19] | ' | |
Maturity date | ' | 1-Oct-17 | [19] | ' | |
Citi SF Bay Area Morgan Hill Loan | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | 3,000,000 | [9] | ' | |
Interest Rate | ' | 4.08% | [9] | ' | |
Maturity date | ' | 6-Mar-23 | [9] | ' | |
Net Fair Value Adjustment | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Secured debt | ' | $434,431 | $576,173 | ||
[1] | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas II). Each of the individual loans is cross-collateralized by the other ten. | ||||
[2] | Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%. | ||||
[3] | On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank's floating rate plus 3.5% (subject to a reduction in certain circumstances). The rate in effect at September 30, 2013 was 5.22%. | ||||
[4] | This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago - 95th St., Chicago - Western Ave., Chicago - Ogden Ave., Chicago - Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of September 30, 2013 was approximately $50.2 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[5] | This loan encumbers the Lawrenceville I and II properties. | ||||
[6] | This loan encumbers the Concord, Hickory and Morganton properties. | ||||
[7] | This loan encumbers the El Paso II, III, IV & V properties as well as the Dallas property. | ||||
[8] | This loan is cross-collateralized by the 11 properties discussed in footnote (1) to this table. | ||||
[9] | The SF Bay Area-Morgan Hill loan was paid off on March 5, 2013 using proceeds from the Citi SF Bay Area-Morgan Hill Loan. For additional discussion, see "Citi SF Bay Area-Morgan Hill Loan" below. | ||||
[10] | This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of September 30, 2013 was approximately $9.1 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[11] | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans have an original term of 30 years and mature on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021. | ||||
[12] | As of September 30, 2013 and December 31, 2012, this loan was collateralized by the Homeland Portfolio. This loan is a variable rate loan, such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 4.68% as of September 30, 2013; however, we were required to purchase an interest rate swap with a notional amount of $45 million, and, inclusive of the interest rate swap, the effective fixed interest rate is 5.41%. For additional discussion, see "Second Restated KeyBank Loan" below. This loan was paid off in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the "KeyBank Revolver"), with a maturity date of October 25, 2016. The KeyBank Revolver is further described in Note 11. | ||||
[13] | In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2% (totaling 5.00% as of September 30, 2013). | ||||
[14] | The net book value of the Chantilly property as of September 30, 2013 was approximately $6.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[15] | In September 2012, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2.25% (totaling 5.25% as of September 30, 2013). | ||||
[16] | This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of September 30, 2013 was approximately $34.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[17] | This portfolio loan encumbers nine properties (Los Angeles-La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area-Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of September 30, 2013 was approximately $41.9 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[18] | This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of September 30, 2013 was approximately $37.6 million. Such amounts are only available to satisfy the obligations of this loan. | ||||
[19] | This loan encumbers the Ridgeland and Canton properties. |
Summary_of_Secured_Debt_Parent
Summary of Secured Debt (Parenthetical) (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Jan. 12, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | ||||||||||||
Property | Prudential Portfolio Loan | Dufferin - Toronto - Ontario, Canada | Dufferin - Toronto - Ontario, Canada | Citi Loan | Citi Las Vegas Loan | ING Loan | Second Restated Key Bank Loan | Mississauga - Ontario, Canada | Mississauga - Ontario, Canada | Mississauga - Ontario, Canada | Chantilly | Citi Stockade Loan - 1 | KeyBank CMBS Loan | Citi Stockade Loan - 2 | Citi Stockade Loan - 2 | Key Bank Revolver | Canadian dollars denominated loan | Canadian dollars denominated loan | ||||||||||||
Loan | Loan | Property | Property | Property | Property | |||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numbers of discrete mortgage loans related to prudential portfolio loan | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numbers of properties related to prudential portfolio loan | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Number of loans cross-collateralized with each respective loan | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Number of loans with an interest rate of 5.43% | ' | 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate | ' | 5.43% | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | |||||||||||
Interest rate of remaining loan in portfolio | ' | 5.31% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Weighted average interest rate of portfolio | 5.39% | 5.42% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Interest rate premium over bank's floating rate | ' | ' | 3.50% | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | |||||||||||
Effective interest rate | 5.22% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Number of existing encumbered properties | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | 10 | 9 | ' | 6 | ' | ' | ' | |||||||||||
Net book value of encumbered properties | ' | ' | ' | ' | $50,200,000 | $9,100,000 | ' | ' | ' | ' | ' | $6,900,000 | $34,900,000 | $41,900,000 | ' | $37,600,000 | ' | ' | ' | |||||||||||
Prudential long beach cross collateralized by numbers of properties related to prudential portfolio loan | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numbers of properties related to ING loan | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Numbers of discrete mortgage loans related to ING loan | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Term of each individual loans | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Maturity date of ING Loan | ' | ' | ' | ' | ' | ' | 1-Jul-41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Payment of loan, successive period after commencement date | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
ING Loan payment Beginning Term | ' | 5-Sep-19 | [1],[2] | ' | 15-Dec-13 | [3] | 6-Feb-21 | [4] | 6-Jun-21 | [5] | 1-Jul-21 | [6] | 24-Dec-14 | [7] | ' | 31-Oct-14 | [8] | ' | 6-Jun-22 | [9] | 1-Oct-22 | [10] | 1-Nov-22 | [11] | 6-Nov-22 | [12] | ' | ' | ' | ' |
Interest rate of spread | ' | ' | ' | ' | ' | ' | ' | 4.68% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Notional amount for interest rate swap | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Effective interest rate on hedged portion of debt | ' | ' | ' | ' | ' | ' | ' | 5.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revolving loan maturity date | ' | ' | ' | ' | ' | ' | ' | 24-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | 25-Oct-16 | ' | ' | |||||||||||
Commitment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,200,000 | ' | ' | ' | ' | ' | ' | $9,200,000 | ' | |||||||||||
[1] | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Manassas, Marietta, Erlanger, Pittsburgh, Weston, Fort Lee, Oakland Park, Tempe, Phoenix II, Davie and Las Vegas II). Each of the individual loans is cross-collateralized by the other ten. | |||||||||||||||||||||||||||||
[2] | Ten of the loans in this portfolio loan bear an interest rate of 5.43%, and the remaining loan bears an interest rate of 5.31%. The weighted average interest rate of this portfolio is 5.42%. | |||||||||||||||||||||||||||||
[3] | On January 12, 2011, we encumbered the Dufferin property with a Canadian dollar denominated loan which bears interest at the bank's floating rate plus 3.5% (subject to a reduction in certain circumstances). The rate in effect at September 30, 2013 was 5.22%. | |||||||||||||||||||||||||||||
[4] | This portfolio loan encumbers 11 properties (Biloxi, Gulf Breeze I, Alpharetta, Florence II, Jersey City, West Mifflin, Chicago - 95th St., Chicago - Western Ave., Chicago - Ogden Ave., Chicago - Roosevelt Rd. and Las Vegas IV). The net book value of the encumbered properties as of September 30, 2013 was approximately $50.2 million. Such amounts are only available to satisfy the obligations of this loan. | |||||||||||||||||||||||||||||
[5] | This loan encumbers the Las Vegas VII and Las Vegas VIII properties. The net book value of the encumbered properties as of September 30, 2013 was approximately $9.1 million. Such amounts are only available to satisfy the obligations of this loan. | |||||||||||||||||||||||||||||
[6] | This portfolio loan is comprised of 11 discrete mortgage loans on 11 respective properties (Peachtree City, Buford, Jonesboro, Ellenwood, Marietta II, Collegeville, Skippack, Ballston Spa, Trenton, Fredericksburg and Sandston). Each of the individual loans have an original term of 30 years and mature on July 1, 2041. ING has the option to require payment of the loan in full every five years beginning on July 1, 2021. | |||||||||||||||||||||||||||||
[7] | As of September 30, 2013 and December 31, 2012, this loan was collateralized by the Homeland Portfolio. This loan is a variable rate loan, such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 4.68% as of September 30, 2013; however, we were required to purchase an interest rate swap with a notional amount of $45 million, and, inclusive of the interest rate swap, the effective fixed interest rate is 5.41%. For additional discussion, see "Second Restated KeyBank Loan" below. This loan was paid off in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the "KeyBank Revolver"), with a maturity date of October 25, 2016. The KeyBank Revolver is further described in Note 11. | |||||||||||||||||||||||||||||
[8] | In December 2011, we entered into a Canadian dollar denominated construction loan with an aggregate commitment amount of approximately $9.2 million. Such loan bears interest at the bank's floating rate, plus 2% (totaling 5.00% as of September 30, 2013). | |||||||||||||||||||||||||||||
[9] | The net book value of the Chantilly property as of September 30, 2013 was approximately $6.9 million. Such amounts are only available to satisfy the obligations of this loan. | |||||||||||||||||||||||||||||
[10] | This portfolio loan encumbers 10 properties (Savannah I, Savannah II, Columbia, Lexington I, Stuart I, Lexington II, Stuart II, Bluffton, Wilmington Island and Myrtle Beach). The net book value of the encumbered properties as of September 30, 2013 was approximately $34.9 million. Such amounts are only available to satisfy the obligations of this loan. | |||||||||||||||||||||||||||||
[11] | This portfolio loan encumbers nine properties (Los Angeles-La Cienega, Las Vegas III, Las Vegas VI, Hampton, SF Bay Area-Gilroy, Toms River, Crescent Springs, Florence and Walton). The net book value of the encumbered properties as of September 30, 2013 was approximately $41.9 million. Such amounts are only available to satisfy the obligations of this loan. | |||||||||||||||||||||||||||||
[12] | This portfolio loan encumbers six properties (Mt. Pleasant I, Charleston I, Charleston II, Mt. Pleasant II, Charleston III, and Mt. Pleasant III). The net book value of the encumbered properties as of September 30, 2013 was approximately $37.6 million. Such amounts are only available to satisfy the obligations of this loan. |
Secured_Debt_Additional_Inform
Secured Debt - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Oct. 31, 2012 | Jan. 12, 2012 | Dec. 27, 2011 | Dec. 27, 2011 | Dec. 27, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 27, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 05, 2013 | Sep. 30, 2013 | Dec. 27, 2011 | ||
Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Second Restated Key Bank Loan | Homeland Portfolio | Homeland Portfolio | Homeland Portfolio | Homeland Portfolio | SF Bay Area - Morgan Hill | SF Bay Area - Morgan Hill | Restated Key Bank Credit Facility | |||||
Atlanta Georgia | Jacksonville, Florida | Period 1 | Period 2 | Period 3 | Period 1 | Period 2 | ||||||||||||||
Property | Property | |||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net book values of secured properties | $583,000,000 | $587,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Worth of portfolio | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Properties acquired | ' | ' | ' | ' | ' | ' | 10 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net commitments | ' | ' | ' | 55,000,000 | ' | 82,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Operating partnership in financing commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ||
Operating partnership drew down | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ||
Additional facility drew down | ' | ' | ' | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | 56,600,000 | ' | ' | ' | ' | ' | ||
Amount of monthly payments | ' | ' | 1,666,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Amount of reduction in maximum borrowing capacity as per payment terms under amended agreement | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Extension option second restated keybank credit facility | ' | ' | 'Subject to two, one-year extension options (subject to the fulfillment of certain conditions), and requires monthly interest-only payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of credit facility, potential term of extension options | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of credit facility, number of extension options | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Line of credit facility maturity date | ' | ' | 24-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Notional amount for interest rate swap | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Effective interest rate on hedged portion of debt | ' | ' | 5.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other recourse debt | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Other non-recourse debt | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Fund required interest reserve account at closing | ' | ' | 1,550,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt service coverage ratio to replenish the interest reserve account | ' | ' | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum leverage ratio period 2 | ' | ' | 57.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum leverage ratio period 3 | ' | ' | 0.55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum leverage ratio period 4 | ' | ' | 0.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum interest service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | 1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum fixed charge ratio | ' | ' | ' | ' | ' | ' | ' | ' | 1.35 | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum debt service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 1.3 | 1.4 | ' | ' | ' | ' | ' | ' | ' | ||
Minimum liquidity | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Minimum tangible net worth | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Percentage of proceeds from public offering in calculation of basis for minimum tangible net worth | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Maximum percentage of required loan to value ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.65 | ' | ' | ' | ' | ' | ' | ||
Required debt yield related to portfolio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.03 | ' | ' | ' | ' | ' | ' | ||
Required debt yield rate increase year one | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.04 | ' | ' | ' | ' | ' | ' | ||
Required debt yield rate increase year two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.06 | 0.08 | ' | ' | ' | ||
Required debt yield rate increase year three | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.105 | ' | ' | ' | ' | ' | ' | ||
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ||
Term of loan maturity period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ||
Fixed rate of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.08% | ' | ' | ||
Maturity date | ' | ' | 24-Dec-14 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Mar-23 | 1-Apr-13 | [2] | ' |
Weighted average interest rate of portfolio | 5.39% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | As of September 30, 2013 and December 31, 2012, this loan was collateralized by the Homeland Portfolio. This loan is a variable rate loan, such rate is based on 30-day LIBOR, which including the applicable spread equaled an interest rate of 4.68% as of September 30, 2013; however, we were required to purchase an interest rate swap with a notional amount of $45 million, and, inclusive of the interest rate swap, the effective fixed interest rate is 5.41%. For additional discussion, see "Second Restated KeyBank Loan" below. This loan was paid off in October 2013 in connection with entering into a new revolving loan agreement with KeyBank National Association (the "KeyBank Revolver"), with a maturity date of October 25, 2016. The KeyBank Revolver is further described in Note 11. | |||||||||||||||||||
[2] | The SF Bay Area-Morgan Hill loan was paid off on March 5, 2013 using proceeds from the Citi SF Bay Area-Morgan Hill Loan. For additional discussion, see "Citi SF Bay Area-Morgan Hill Loan" below. |
Future_Principal_Payment_Requi
Future Principal Payment Requirements on Outstanding Secured Debt (Detail) (USD $) | Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' | |
2013 | $7,326,186 | |
2014 | 21,930,121 | |
2015 | 30,578,426 | |
2016 | 97,233,220 | |
2017 | 33,980,454 | |
2018 and thereafter | 159,145,529 | |
Total payments | 350,193,936 | [1],[2] |
Unamortized fair value adjustment | -434,431 | |
Total | $349,759,505 | |
[1] | Debt denominated in foreign currency has been converted at the conversion rate in effect as of the end of the period. | |
[2] | This table reflects the terms of the KeyBank Revolver discussed in Note 11. |
Derivative_Instruments_Cash_Fl2
Derivative Instruments - Cash Flow Hedge of Interest Rate Risk - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Ineffective portion of change in fair value of derivatives instruments recognized in earnings | $0 | $0 | $0 | $0 |
Expected interest expense due to reclassification of losses of derivatives from AOCI over next 12 months | 300,000 | ' | 300,000 | ' |
Interest expense | 4,754,577 | 4,170,180 | 14,105,571 | 13,240,452 |
Fair value of derivatives in a net liability position | 375,000 | ' | 375,000 | ' |
Termination value in case of breach of provisions | ' | ' | 375,000 | ' |
Reclassification from AOCI to Interest Expense | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Interest expense | $100,000 | ' | $200,000 | ' |
Interest Rate Swap | ' | ' | ' | ' |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ' | ' | ' | ' |
Number of instruments | 1 | ' | 1 | ' |
Interest_Rate_Derivative_Desig
Interest Rate Derivative Designated as Cash Flow Hedge of Interest Rate Risk (Detail) (Interest Rate Swap, USD $) | Sep. 30, 2013 |
Derivative | |
Interest Rate Swap | ' |
Derivative [Line Items] | ' |
Number of instruments | 1 |
Notional | $45,000,000 |
Fair_Value_of_Derivative_Finan
Fair Value of Derivative Financial Instruments as well as Classification on Balance Sheet (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Other Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Assets | ' | ' |
Accounts Payable and Accrued Liabilities | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Liabilities | $360,702 | $546,333 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Maximum period for reimbursement of offering cost | ' | ' | '60 days | ' | ' |
Maximum offering cost rate | ' | ' | 3.50% | ' | ' |
Rate of acquisition fees of purchase price of contract | 2.50% | ' | 2.50% | ' | ' |
Monthly asset management fee one twelfth of one percentage of asset value | ' | ' | 'One-twelfth of 1.0% | ' | ' |
Monthly asset management fee one twelfth of less than one percentage of asset value payable if asset value exceeds $500 million | ' | ' | 'One-twelfth of 0.75% | ' | ' |
Aggregate asset value specific exceed | ' | ' | $500,000,000 | ' | ' |
Minimum percentage of distribution | ' | ' | 100.00% | ' | ' |
Property management fees percentage of property revenue for REIT I, REIT II and USA Self Storage I, DST | ' | ' | 2.00% | ' | ' |
Advisory fees percentage of sale price of property | ' | ' | 3.00% | ' | ' |
Commission percentage of sale price of property | ' | ' | 6.00% | ' | ' |
Cumulative, non compounded, annual return on such stockholders' invested capital | ' | ' | 6.00% | ' | ' |
Operating expenses reimbursement percentage of average investment in assets | ' | ' | 2.00% | ' | ' |
Operating expenses reimbursement percentage of net income | ' | ' | 25.00% | ' | ' |
Operating expenses exceed limitation | ' | ' | '12 months | ' | ' |
Maximum days for disclosure fact | ' | ' | '60 days | ' | ' |
Sale commission fees percentage of proceed from Primary Offering | ' | ' | 7.00% | ' | ' |
Maximum dealer manager commission fee percentage of proceeds from Primary Offering | ' | ' | 3.00% | ' | ' |
Underwriting commission | ' | ' | 10.00% | ' | ' |
Maximum percentage other non-accountable expenses | ' | ' | 3.00% | ' | ' |
Percentage Owned By chief executive officer In Dealer Manager | ' | ' | 15.00% | ' | ' |
Percentage of fee of property manager | ' | ' | 6.00% | ' | ' |
Return needed for before the Property Manager entitled to property management fees on properties acquired via the REIT II merger | ' | ' | $0.70 | ' | ' |
Amounts due to affiliates | 1,521,106 | ' | 1,521,106 | ' | 2,282,344 |
Percentage of tenant premium paid approximately, fees provided by program insurer | ' | ' | 50.00% | ' | ' |
Percentage of ownership interest | 5.00% | ' | 5.00% | ' | ' |
Fees from tenant reinsurance program | 400,000 | 300,000 | 1,200,000 | 900,000 | ' |
Auction fees | 18,000 | ' | 21,000 | ' | ' |
REIT II | ' | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' |
Property management fees | $66,000 | ' | $151,000 | ' | ' |
Summary_of_Related_Party_Costs
Summary of Related Party Costs Incurred (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |||||
Additional Paid-in Capital | ' | ' | ' | ' | ||||
Selling commissions | $4,075,472 | $800,431 | $7,004,507 | $6,333,780 | ||||
Dealer Manager fee | 1,746,632 | 343,042 | 3,001,932 | 2,714,477 | ||||
Reimbursement of offering costs | 92,665 | 121,233 | 316,794 | 371,155 | ||||
Total | 8,869,094 | 4,163,992 | 18,051,420 | 16,571,659 | ||||
Reimbursement of operating expenses (including organizational costs) | ' | ' | ' | ' | ||||
Expensed | ' | ' | ' | ' | ||||
Related party costs expensed | 11,992 | [1] | 7,965 | [1] | 34,093 | [1] | 29,760 | [1] |
Asset management fees | ' | ' | ' | ' | ||||
Expensed | ' | ' | ' | ' | ||||
Related party costs expensed | 1,214,561 | [2] | 1,152,316 | [2] | 3,571,501 | [2] | 3,398,273 | [2] |
Property management fee | ' | ' | ' | ' | ||||
Expensed | ' | ' | ' | ' | ||||
Related party costs expensed | 1,251,116 | [3],[4] | 968,090 | [3],[4] | 3,539,318 | [3],[4] | 2,690,149 | [3],[4] |
Acquisition expenses | ' | ' | ' | ' | ||||
Expensed | ' | ' | ' | ' | ||||
Related party costs expensed | $476,656 | $770,915 | $583,275 | $1,034,065 | ||||
[1] | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $350,000 and $251,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived certain reimbursable indirect costs, primarily payroll and related overhead costs, related to administrative and management services, totaling approximately $975,000 and $773,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | |||||||
[2] | During the three months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $176,000 and $33,000, respectively. During the nine months ended September 30, 2013 and 2012, our Advisor permanently waived asset management fees related to the Stockade Portfolio totaling approximately $525,000 and $33,000, respectively. Such amounts were waived permanently and accordingly, will not be paid to our Advisor. | |||||||
[3] | During the three and nine months ended September 30, 2013, our Property Manager permanently waived certain costs, reimbursements and fees, including construction management fees, tenant insurance administration fees, accounting administrative fees and expense reimbursements related to certain off-site property management employees. Such amounts totaled approximately $177,000 and $521,000, respectively for the three and nine months ended September 30, 2013 and were waived permanently and accordingly, will not be paid to our Property Manager. | |||||||
[4] | During the three months ended September 30, 2013 and 2012, property management fees include approximately $0 and $33,000, respectively, of fees paid to the sub-property manager of our Canadian properties. During the nine months ended September 30, 2013 and 2012, property management fees include approximately $27,000 and $90,000, respectively, of fees paid to the sub-property manager of our Canadian properties. Such sub-property management agreement was terminated effective March 31, 2013 at a cost of approximately $28,000. |
Summary_of_Related_Party_Costs1
Summary of Related Party Costs Incurred (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Transactions with Third Party [Line Items] | ' | ' | ' | ' | ' |
Reimbursable indirect costs waived | $350,000 | ' | $251,000 | $975,000 | $773,000 |
Property Manager waived certain costs | 177,000 | ' | ' | 521,000 | ' |
Property management fees to the sub-property manager of Canadian properties | 0 | ' | 33,000 | 27,000 | 90,000 |
Sub-property management agreement terminated | ' | 28,000 | ' | ' | ' |
Stockade Portfolio | ' | ' | ' | ' | ' |
Transactions with Third Party [Line Items] | ' | ' | ' | ' | ' |
Waived asset management fees | $176,000 | ' | $33,000 | $525,000 | $33,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 23, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
SF Bay Area - San Lorenzo | SF Bay Area - San Lorenzo | SF Bay Area - San Lorenzo | SF Bay Area - San Lorenzo | Distribution Reinvestment Plan | Distribution Reinvestment Plan | Share Redemption Program | Share Redemption Program | Operating Partnership Redemption Rights | |||
Minimum | |||||||||||
Commitments and Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Previous purchase price per share | ' | ' | ' | ' | ' | ' | ' | $9.50 | ' | ' | ' |
Previous purchase price percentage of fair market value of a share | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' |
Percentage of offering price under distribution reinvestment plan | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' |
Current purchase price per share | ' | ' | ' | ' | ' | ' | ' | $10.25 | ' | ' | ' |
Amendment, suspension or termination period of share | ' | ' | ' | ' | ' | ' | '10 days | ' | '30 days | ' | ' |
Shares distributed through reinvestment plan | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' |
Additional shares registered | ' | ' | ' | ' | ' | ' | 51,250,000 | ' | ' | ' | ' |
Shareholders share holding period | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' |
Maximum weighted-average number of shares outstanding basic percentage | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' |
Unregistered shares sold | ' | $3,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investors holding amount rescinded | -10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investors holding shares rescission | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum return required on property contributed for class D unit holders to modify exchange rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.70 |
Remaining term of lease | ' | ' | '22 years | ' | '22 years | ' | ' | ' | ' | ' | ' |
Rent expense | ' | ' | 37,000 | 37,000 | 110,000 | 110,000 | ' | ' | ' | ' | ' |
Minimum lease payment 2013 | ' | ' | 33,000 | ' | 33,000 | ' | ' | ' | ' | ' | ' |
Minimum lease payment 2014 | ' | ' | 133,000 | ' | 133,000 | ' | ' | ' | ' | ' | ' |
Minimum lease payment 2015 | ' | ' | 139,000 | ' | 139,000 | ' | ' | ' | ' | ' | ' |
Minimum lease payment 2016 | ' | ' | 139,000 | ' | 139,000 | ' | ' | ' | ' | ' | ' |
Minimum lease payment 2017 | ' | ' | $139,000 | ' | $139,000 | ' | ' | ' | ' | ' | ' |
Stock_for_Redemptions_Based_on
Stock for Redemptions Based on Number of Years Stock Held (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Less than 1 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 0.00% |
1 or more but less than 2 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 90.00% |
2 or more but less than 3 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 92.50% |
3 or more but less than 4 | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 95.00% |
4 or more | ' |
Recorded Unconditional Purchase Obligation [Line Items] | ' |
Redemption price | 100.00% |
Declaration_of_Distributions_A
Declaration of Distributions - Additional Information (Detail) (USD $) | Sep. 17, 2013 |
Equity [Abstract] | ' |
Common stock per share outstanding per day declared | $0.00 |
Summary_of_Quarterly_Financial
Summary of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $21,292,574 | $19,931,208 | $19,407,941 | $18,455,140 | $17,098,173 | $60,631,723 | $48,155,364 |
Total operating expenses | 17,229,995 | 16,667,044 | 16,557,885 | 17,351,457 | 17,000,260 | 50,454,924 | 48,592,347 |
Operating income | 4,062,579 | 3,264,164 | 2,850,056 | 1,103,683 | 97,913 | 10,176,799 | -436,983 |
Net loss | -689,288 | -1,949,099 | -2,167,459 | -3,852,041 | -4,620,823 | -4,805,846 | -15,163,101 |
Net loss attributable to the Company | ($693,245) | ($1,949,079) | ($2,167,224) | ($3,843,894) | ($4,610,650) | ($4,809,548) | ($15,129,818) |
Net loss per share-basic and diluted | ($0.01) | ($0.04) | ($0.05) | ($0.08) | ($0.11) | ' | ' |
Acquisition_of_Self_Storage_Pr
Acquisition of Self Storage Properties from Unaffiliated Third Parties (Detail) (Subsequent Event, USD $) | 9 Months Ended |
Sep. 30, 2013 | |
sqft | |
Business Acquisition [Line Items] | ' |
Acquisition Price | $36,530,000 |
Approx. Units | 2,380 |
Approx. Sq. Ft. (net) | 318,900 |
Knoxville I - TN | ' |
Business Acquisition [Line Items] | ' |
Acquisition Date | 28-Oct-13 |
Acquisition Price | 8,530,000 |
Year Built | '1996/2005 |
Approx. Units | 650 |
Approx. Sq. Ft. (net) | 101,700 |
Knoxville II - TN | ' |
Business Acquisition [Line Items] | ' |
Acquisition Date | 28-Oct-13 |
Acquisition Price | 10,900,000 |
Year Built | '2006 |
Approx. Units | 680 |
Approx. Sq. Ft. (net) | 78,500 |
Knoxville III - TN | ' |
Business Acquisition [Line Items] | ' |
Acquisition Date | 28-Oct-13 |
Acquisition Price | 8,500,000 |
Year Built | '2005 |
Approx. Units | 510 |
Approx. Sq. Ft. (net) | 73,300 |
Montgomery II - AL | ' |
Business Acquisition [Line Items] | ' |
Acquisition Date | 28-Oct-13 |
Acquisition Price | $8,600,000 |
Year Built | '2005 |
Approx. Units | 540 |
Approx. Sq. Ft. (net) | 65,400 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 16, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 11, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Oct. 28, 2013 | Nov. 11, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
IPO | IPO | Knoxville Portfolio | Key Bank Revolver | Second Restated Key Bank Loan | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Subsequent Event | Delaware statutory trust (DST) | Delaware statutory trust (DST) | ||
Store | IPO | Knoxville Portfolio | Key Bank Revolver | Key Bank Revolver | Key Bank Revolver | Second Restated Key Bank Loan | Distribution Reinvestment Plan | sqft | Subsequent Event | |||||||
Property | Maximum | Minimum | Property | Facility | Investors | |||||||||||
Property | ||||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition Price | ' | ' | ' | $36,500,000 | ' | ' | $36,530,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Self storage properties | ' | ' | ' | 4 | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' |
Acquisition fees due to advisor | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 340,000 | ' |
Number of third-party sellers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50 |
Beneficial interest owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% |
Business acquisition purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,900,000 |
Business acquisition cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 |
Number of limited partnership units issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 151,300 |
Loan assumed as purchase consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,700,000 |
Termination date of Lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31-Dec-13 |
Self storage facilities volume | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,805 | ' |
Self storage facilities capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 392,000 | ' |
Interest rate on loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.36% | ' |
Term of loan period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Maturity date of term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Sep-18 | ' |
Number of properties | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Maximum borrowings in revolving loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' |
Revolving credit facility syndicated to another participating lender | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Initial amount funded from revolving loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 71,000,000 | ' | ' | ' |
Initial funded amount used to pay off outstanding principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' |
Properties released that were served as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12 | ' | ' | ' |
Initial funded amount used to partially fund acquisition | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | ' | ' | ' | ' | ' | ' |
Revolving loan initial term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' |
Revolving loan maturity date | ' | ' | ' | ' | 25-Oct-16 | 24-Dec-14 | ' | ' | ' | 25-Oct-16 | ' | ' | ' | ' | ' | ' |
Interest rate swap amount | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' |
Initial interest rate of interest rate swap | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.70% | ' | ' | ' | ' | ' | ' |
Current interest rate of interest rate of swap | ' | ' | ' | ' | ' | 5.41% | ' | ' | ' | 2.40% | ' | ' | ' | ' | ' | ' |
Commitment amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | 25,000,000 | ' | ' | ' | ' |
Increments of aggregate commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' |
Reduce aggregate commitments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Other recourse debt | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' |
Other non-recourse debt | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' |
Percent of collateral properties used for aggregate borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' |
Debt Service Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.35 | ' | ' | ' | ' | ' | ' |
Total Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' |
Minimum tangible net worth | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | 250,000,000 | ' | ' | ' | ' | ' | ' |
Minimum interest service coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.85 | ' | ' | ' | ' | ' | ' |
Minimum fixed charge ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.6 | ' | ' | ' | ' | ' | ' |
Ratio of varying rate Indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' |
Percentage of required loan to value ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' |
Gross proceeds from issuance of common stock, shares | ' | 29,000,000 | 53,000,000 | ' | ' | ' | ' | 54,000,000 | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Gross proceeds from issuance of common stock | ' | ' | ' | ' | ' | ' | ' | $545,000,000 | ' | ' | ' | ' | ' | $1,400,000 | ' | ' |