DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 06, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | National Storage Affiliates Trust | |
Entity Central Index Key | 1,618,563 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 56,524,670 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Real estate | ||
Self storage properties | $ 2,475,217 | $ 2,275,233 |
Less accumulated depreciation | (206,827) | (170,358) |
Self storage properties, net | 2,268,390 | 2,104,875 |
Cash and cash equivalents | 16,419 | 13,366 |
Restricted cash | 7,109 | 3,041 |
Debt issuance costs, net | 1,746 | 2,185 |
Investment in unconsolidated real estate venture | 88,725 | 89,093 |
Other assets, net | 78,166 | 52,615 |
Assets held for sale | 0 | 1,555 |
Total assets | 2,460,555 | 2,266,730 |
Liabilities | ||
Debt financing | 1,149,789 | 958,097 |
Accounts payable and accrued liabilities | 26,983 | 24,459 |
Deferred revenue | 13,546 | 12,687 |
Total liabilities | 1,190,318 | 995,243 |
Commitments and contingencies (Note 11) | ||
Equity | ||
Preferred shares of beneficial interest, par value $0.01 per share. 50,000,000 authorized, 6,900,000 issued and outstanding at June 30, 2018 and December 31, 2017, at liquidation preference | 172,500 | 172,500 |
Common shares of beneficial interest, par value $0.01 per share. 250,000,000 shares authorized, 50,539,575 and 50,284,934 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 505 | 503 |
Additional paid-in capital | 701,256 | 711,467 |
Distributions in excess of earnings | (73,307) | (55,729) |
Accumulated other comprehensive income | 20,211 | 12,282 |
Total shareholders' equity | 821,165 | 841,023 |
Noncontrolling interests | 449,072 | 430,464 |
Total equity | 1,270,237 | 1,271,487 |
Total liabilities and equity | $ 2,460,555 | $ 2,266,730 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Series A Preferred shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A Preferred shares of beneficial interest, authorized (in shares) | 50,000,000 | 50,000,000 |
Series A Preferred shares of beneficial interest, issued (in shares) | 6,900,000 | 6,900,000 |
Series A Preferred shares of beneficial interest, outstanding (in shares) | 6,900,000 | 6,900,000 |
Common shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, authorized (in shares) | 250,000,000 | 250,000,000 |
Common shares of beneficial interest, issued (in shares) | 50,539,575 | 50,284,934 |
Common shares of beneficial interest, outstanding (in shares) | 50,539,575 | 50,284,934 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
REVENUE | ||||
Rental revenue | $ 75,019 | $ 60,154 | $ 147,030 | $ 117,998 |
Other property-related revenue | 2,549 | 2,045 | 4,870 | 3,926 |
Management fees and other revenue | 2,155 | 2,142 | 4,316 | 3,980 |
Total revenue | 79,723 | 64,341 | 156,216 | 125,904 |
OPERATING EXPENSES | ||||
Property operating expenses | 25,184 | 19,803 | 50,410 | 39,552 |
General and administrative expenses | 8,460 | 7,405 | 16,766 | 14,586 |
Depreciation and amortization | 22,389 | 17,800 | 43,757 | 36,483 |
Total operating expenses | 56,033 | 45,008 | 110,933 | 90,621 |
Income from operations | 23,690 | 19,333 | 45,283 | 35,283 |
OTHER (EXPENSE) INCOME | ||||
Interest expense | (10,472) | (8,160) | (20,107) | (15,631) |
Equity in earnings (losses) of unconsolidated real estate venture | 100 | (765) | 48 | (1,550) |
Acquisition costs | (150) | (167) | (330) | (311) |
Non-operating expense | 0 | (14) | (84) | (66) |
(Loss) gain on sale of self storage properties | (83) | 5,637 | 391 | 5,637 |
Other expense | (10,605) | (3,469) | (20,082) | (11,921) |
Income before income taxes | 13,085 | 15,864 | 25,201 | 23,362 |
Income tax expense | (44) | (288) | (187) | (605) |
Net income | 13,041 | 15,576 | 25,014 | 22,757 |
Net income attributable to noncontrolling interests | (7,150) | (13,209) | (8,663) | (19,835) |
Net income attributable to National Storage Affiliates Trust | 5,891 | 2,367 | 16,351 | 2,922 |
Distributions to preferred shareholders | (2,587) | 0 | (5,175) | 0 |
Net income attributable to common shareholders | $ 3,304 | $ 2,367 | $ 11,176 | $ 2,922 |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Earnings (loss) per share - basic (in dollars per share) | $ 0.07 | $ 0.05 | $ 0.22 | $ 0.07 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.07 | $ 0.05 | $ 0.19 | $ 0.07 |
Weighted average shares outstanding - basic (in shares) | 50,486 | 44,223 | 50,393 | 43,814 |
Weighted average shares outstanding - diluted (in shares) | 50,486 | 44,223 | 100,492 | 43,814 |
Dividends declared per common share (in dollars per share) | $ 0.29 | $ 0.26 | $ 0.57 | $ 0.5 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,041 | $ 15,576 | $ 25,014 | $ 22,757 |
Other comprehensive income (loss) | ||||
Unrealized gain (loss) on derivative contracts | 4,665 | (3,852) | 13,655 | (2,239) |
Reclassification of other comprehensive (income) loss to interest expense | (281) | 760 | (232) | 1,530 |
Other comprehensive income (loss) | 4,384 | (3,092) | 13,423 | (709) |
Comprehensive income | 17,425 | 12,484 | 38,437 | 22,048 |
Comprehensive income attributable to noncontrolling interests | (8,834) | (11,992) | (13,838) | (19,578) |
Comprehensive income attributable to National Storage Affiliates Trust | $ 8,591 | $ 492 | $ 24,599 | $ 2,470 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) $ in Thousands | Total | Series A-1 preferred units, OP units, and subordinated performance units | OP units | Preferred Shares | Common Shares | Additional Paid-in Capital | Distributions In Excess Of Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests | Noncontrolling InterestsSeries A-1 preferred units, OP units, and subordinated performance units | Noncontrolling InterestsOP units |
Balances (in shares) at Dec. 31, 2017 | 6,900,000 | 6,900,000 | |||||||||
Balances (in shares) at Dec. 31, 2017 | 50,284,934 | 50,284,934 | |||||||||
Balances at Dec. 31, 2017 | $ 1,271,487 | $ 172,500 | $ 503 | $ 711,467 | $ (55,729) | $ 12,282 | $ 430,464 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Issuance of equity units | $ 22,403 | $ 5 | $ 22,403 | $ 5 | |||||||
Redemptions of OP units (in shares) | 246,582 | ||||||||||
Redemptions of OP units | 0 | $ 2 | 3,226 | 87 | (3,315) | ||||||
Effect of changes in ownership for consolidated entities | 0 | (13,498) | (406) | 13,904 | |||||||
Equity-based compensation expense | 1,786 | 136 | 1,650 | ||||||||
Issuance of restricted common shares (in shares) | 12,311 | ||||||||||
Issuance of restricted common shares | 0 | ||||||||||
Vesting and forfeitures of restricted common shares, net (in shares) | (4,252) | ||||||||||
Vesting and forfeitures of restricted common shares, net | (75) | (75) | |||||||||
Reduction in receivables from partners of the operating partnership | 347 | 347 | |||||||||
Preferred share dividends | (5,175) | (5,175) | |||||||||
Common share dividends | (28,754) | (28,754) | |||||||||
Distributions to noncontrolling interests | (30,224) | (30,224) | |||||||||
Other comprehensive income | 13,423 | 8,248 | 5,175 | ||||||||
Net income | $ 25,014 | 16,351 | 8,663 | ||||||||
Balances (in shares) at Jun. 30, 2018 | 6,900,000 | 6,900,000 | |||||||||
Balances (in shares) at Jun. 30, 2018 | 50,539,575 | 50,539,575 | |||||||||
Balances at Jun. 30, 2018 | $ 1,270,237 | $ 172,500 | $ 505 | $ 701,256 | $ (73,307) | $ 20,211 | $ 449,072 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 25,014 | $ 22,757 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 43,757 | 36,483 |
Amortization of debt issuance costs | 1,219 | 1,059 |
Amortization of debt discount and premium, net | (744) | (791) |
Gain on sale of self storage properties | (391) | (5,637) |
Equity-based compensation expense | 1,786 | 1,923 |
Equity in (earnings) losses of unconsolidated real estate venture | (48) | 1,550 |
Distributions from unconsolidated real estate venture | 2,806 | 2,417 |
Change in assets and liabilities, net of effects of self storage property acquisitions: | ||
Other assets | (916) | (3,312) |
Accounts payable and accrued liabilities | 1,863 | (649) |
Deferred revenue | (61) | (256) |
Net Cash Provided by Operating Activities | 74,285 | 55,544 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisition of self storage properties | (162,322) | (86,945) |
Capital expenditures | (10,126) | (7,085) |
Investments in and advances to unconsolidated real estate venture | (2,390) | (12,647) |
Distributions from unconsolidated real estate venture | 0 | 250 |
Deposits and advances for self storage property and other acquisitions | (18,286) | (565) |
Expenditures for corporate furniture, equipment and other | (81) | (157) |
Proceeds from sale of self storage properties | 5,259 | 15,342 |
Net Cash Used In Investing Activities | (187,946) | (91,807) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of subordinated performance units | 0 | 7,000 |
Borrowings under debt financings | 438,500 | 310,500 |
Receipts for OP unit subscriptions | 606 | 567 |
Principal payments under debt financings | (252,417) | (218,762) |
Payment of dividends to common shareholders | (28,754) | (22,073) |
Distributions to preferred shareholders | (5,175) | 0 |
Distributions to noncontrolling interests | (29,918) | (26,866) |
Debt issuance costs | (1,829) | (1,346) |
Equity offering costs | (231) | (549) |
Net Cash Provided By Financing Activities | 120,782 | 48,471 |
Increase in Cash, Cash Equivalents and Restricted Cash | 7,121 | 12,208 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Beginning of period | 16,407 | 15,337 |
End of period | 23,528 | 27,545 |
Supplemental Cash Flow Information | ||
Cash paid for interest | $ 18,981 | $ 15,061 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | ORGANIZATION AND NATURE OF OPERATIONS National Storage Affiliates Trust was organized in the state of Maryland on May 16, 2013 and is a fully integrated, self-administered and self-managed real estate investment trust focused on the self storage sector. As used herein, "NSA," the "Company," "we," "our," and "us" refers to National Storage Affiliates Trust and its consolidated subsidiaries, except where the context indicates otherwise. The Company has elected and believes it has qualified as a real estate investment trust ("REIT") for U.S. federal income tax purposes commencing with its taxable year ending December 31, 2015. Through its controlling interest as the sole general partner of NSA OP, LP (its "operating partnership"), a Delaware limited partnership formed on February 13, 2013, the Company is focused on the ownership, operation, and acquisition of self storage properties located within the top 100 metropolitan statistical areas in the United States. Pursuant to the Agreement of Limited Partnership (as amended, the "LP Agreement") of its operating partnership, the Company's operating partnership is authorized to issue preferred units, Class A Units ("OP units"), different series of Class B Units ("subordinated performance units"), and Long-Term Incentive Plan Units ("LTIP units"). The Company also owns certain of its self storage properties through other consolidated limited partnership subsidiaries of its operating partnership, which the Company refers to as "DownREIT partnerships." The DownREIT partnerships issue equity ownership interests that are intended to be economically equivalent to the Company's OP units ("DownREIT OP units") and subordinated performance units ("DownREIT subordinated performance units"). The Company owned 479 consolidated self storage properties in 26 states with approximately 29.0 million rentable square feet in approximately 230,000 storage units as of June 30, 2018 . These properties are managed with local operational focus and expertise by the Company and its participating regional operators ("PROs"). These PROs are SecurCare Self Storage, Inc. and its controlled affiliates ("SecurCare"), Kevin Howard Real Estate Inc., d/b/a Northwest Self Storage and its controlled affiliates ("Northwest"), Optivest Properties LLC and its controlled affiliates ("Optivest"), Guardian Storage Centers LLC and its controlled affiliates ("Guardian"), Move It Self Storage and its controlled affiliates ("Move It"), Arizona Mini Storage Management Company d/b/a Storage Solutions and its controlled affiliates ("Storage Solutions"), Hide-Away Storage Services, Inc. and its controlled affiliates ("Hide-Away") and an affiliate of Shader Brothers Corporation d/b/a Personal Mini Storage ("Personal Mini") of Orlando, Florida. As of June 30, 2018 , the Company also managed through its iStorage property management platform an additional portfolio of 72 unconsolidated properties owned by the Company's unconsolidated real estate venture (the "2016 Joint Venture"). These properties contain approximately 5.0 million rentable square feet, configured in approximately 40,000 storage units and located across 13 states. The Company owns a 25% equity interest in the 2016 Joint Venture. As of June 30, 2018 , in total, the Company operated and held ownership interests in 551 self storage properties located across 29 states with approximately 34.0 million rentable square feet in approximately 270,000 storage units. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles ("GAAP") and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. The Company's results of operations for the quarterly period ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year or any other future period. Principles of Consolidation The Company's financial statements include the accounts of its operating partnership and its controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation of entities. When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity ("VIE"), and if the Company is deemed to be the primary beneficiary, in accordance with authoritative guidance issued on the consolidation of VIEs. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether the general partner controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates all entities that are VIEs and of which the Company is deemed to be the primary beneficiary. The Company has determined that its operating partnership is a VIE. The sole significant asset of National Storage Affiliates Trust is its investment in its operating partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of its operating partnership. As of June 30, 2018 and December 31, 2017 , the Company's operating partnership was the primary beneficiary of, and therefore consolidated, 21 DownREIT partnerships that are considered VIEs, which owned 34 self storage properties. The net book value of the real estate owned by these VIEs was $244.1 million and $248.0 million as of June 30, 2018 and December 31, 2017 , respectively. For the DownREIT partnerships which are subject to fixed rate mortgages payable, the carrying value of such fixed rate mortgages payable held by these VIEs was $139.4 million and $140.3 million as of June 30, 2018 and December 31, 2017 , respectively. The creditors of the consolidated VIEs do not have recourse to the Company's general credit. Revenue Recognition Rental revenue Rental revenue consists of space rentals and related fees. Management has determined that all of the Company's leases are operating leases. Substantially all leases may be terminated on a month-to-month basis and rental income is recognized ratably over the lease term using the straight-line method. Rents received in advance are deferred and recognized on a straight-line basis over the related lease term associated with the prepayment. Promotional discounts and other incentives are recognized as a reduction to rental income over the applicable lease term. Other property-related revenue Other property-related revenue consists of ancillary revenues such as tenant insurance and/or tenant warranty protection-related access fees and sales of storage supplies which are recognized in the period earned. The Company and certain of the Company’s PROs have tenant insurance- and/or tenant warranty protection plan-related arrangements with insurance companies and the Company’s tenants. During the three months ended June 30, 2018 and 2017 , the Company recognized $1.8 million and $1.4 million , respectively, of tenant insurance and tenant warranty protection plan revenues and during the six months ended June 30, 2018 and 2017 , the Company recognized $3.5 million and $2.8 million , respectively, of tenant insurance and tenant warranty protection plan revenues. The Company sells boxes, packing supplies, locks and other retail merchandise at its properties. During the three months ended June 30, 2018 and 2017 , the Company recognized retail sales of $0.4 million and $0.3 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized retail sales of $0.8 million and $0.6 million , respectively. Management fees and other revenue Management fees and other revenue consist of property management fees, call center fees, platform fees, acquisition fees, and a portion of tenant warranty protection proceeds that the Company earns for managing and operating its 2016 Joint Venture. The property management fees are equal to 6% of monthly gross revenues and net sales revenues from the 2016 Joint Venture assets, the call center fees are equal to 1% of monthly gross revenues and net sales revenues from the 2016 Joint Venture assets, and the platform fees are equal to $1,250 per month per 2016 Joint Venture property. The Company provides supervisory and administrative property management services, centralized call center services, and technology platform and revenue management services to the 2016 Joint Venture properties. During the three months ended June 30, 2018 and 2017 , the Company recognized property management fees, call center fees and platform fees of $1.4 million and $1.2 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized property management fees, call center fees and platform fees of $2.7 million and $2.3 million , respectively. For acquisition fees, the Company provides sourcing, underwriting and administration services to the 2016 Joint Venture. The 2016 Joint Venture paid the Company a $4.1 million acquisition fee equal to 0.65% of the gross capitalization (including debt and equity) of the original 66 -property 2016 Joint Venture portfolio (the "Initial JV Portfolio") in 2016, at the time of the Initial JV Portfolio acquisition. This fee may be refundable to the 2016 Joint Venture, on a prorated basis, if the Company is removed as the 2016 Joint Venture managing member during the initial four year life of the 2016 Joint Venture and as such, the Company's performance obligation for this acquisition fee is satisfied over this period. As of June 30, 2018 and December 31, 2017 , the Company had deferred revenue related to the Initial JV Portfolio acquisition fee of $2.3 million and $2.8 million , respectively. The Company also earns acquisition fees for properties acquired by the 2016 Joint Venture subsequent to the Initial JV Portfolio. These fees are based on a percentage of the gross capitalization of the acquired assets determined by the 2016 Joint Venture members, and are generally earned when the 2016 Joint Venture obtains title and control of the acquired property. During the three months ended June 30, 2018 and 2017 , the Company recognized acquisition fees of $0.3 million and $0.6 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized acquisition fees of $0.6 million and $0.9 million , respectively. An affiliate of the Company provides tenant warranty protection to tenants at the 2016 Joint Venture properties in exchange for 50% of all proceeds from the tenant warranty protection program at each 2016 Joint Venture property. During the three months ended June 30, 2018 and 2017 , the Company recognized $0.5 million and $0.5 million , respectively, of revenue related to these activities and during the six months ended June 30, 2018 and 2017 , the Company recognized $1.0 million and $1.0 million , respectively, of revenue related to these activities. Gain on sale of self storage properties The Company recognizes gains from disposition of facilities only upon closing in accordance with the guidance on sales of nonfinancial assets. Profit on real estate sold is recognized upon closing when all, or substantially all, of the promised consideration has been received and is nonrefundable and the Company has transferred control of the facilities to the purchaser. Investments in Unconsolidated Real Estate Venture The Company’s investment in its unconsolidated real estate venture is recorded under the equity method of accounting in the accompanying condensed consolidated financial statements. Under the equity method, the Company’s investment in unconsolidated real estate venture is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings (losses) is recognized based on the Company’s ownership interest in the earnings (losses) of the unconsolidated real estate venture. The Company follows the "nature of the distribution approach" for classification of distributions from its unconsolidated real estate venture in its condensed consolidated statements of cash flows. Under this approach, distributions are reported on the basis of the nature of the activity or activities that generated the distributions as either a return on investment, which are classified as operating cash flows, or a return of investment (e.g., proceeds from the unconsolidated real estate venture’s sale of assets) which are reported as investing cash flows. Noncontrolling Interests All of the limited partner equity interests in the operating partnership not held by the Company are reflected as noncontrolling interests. Noncontrolling interests also include ownership interests in DownREIT partnerships held by entities other than the operating partnership or its subsidiaries. In the condensed consolidated statements of operations, the Company allocates net income (loss) attributable to noncontrolling interests to arrive at net income (loss) attributable to National Storage Affiliates Trust. For transactions that result in changes to the Company's ownership interest in its operating partnership, the carrying amount of noncontrolling interests is adjusted to reflect such changes. The difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is reflected as an adjustment to additional paid-in capital on the condensed consolidated balance sheets. Allocation of Net Income (Loss) The distribution rights and priorities set forth in the operating partnership's LP Agreement differ from what is reflected by the underlying percentage ownership interests of the unitholders. Accordingly, the Company allocates GAAP income (loss) utilizing the hypothetical liquidation at book value ("HLBV") method, in which the Company allocates income or loss based on the change in each unitholders’ claim on the net assets of its operating partnership at period end after adjusting for any distributions or contributions made during such period. The HLBV method is commonly applied to equity investments where cash distribution percentages vary at different points in time and are not directly linked to an equity holder’s ownership percentage. The HLBV method is a balance sheet-focused approach to income (loss) allocation. A calculation is prepared at each balance sheet date to determine the amount that unitholders would receive if the operating partnership were to liquidate all of its assets (at GAAP net book value) and distribute the resulting proceeds to its creditors and unitholders based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is used to derive each unitholder's share of the income (loss) for the period. Due to the stated liquidation priorities and because the HLBV method incorporates non-cash items such as depreciation expense, in any given period, income or loss may be allocated disproportionately to unitholders as compared to their respective ownership percentage in the operating partnership, and net income (loss) attributable to National Storage Affiliates Trust could be more or less net income than actual cash distributions received and more or less income or loss than what may be received in the event of an actual liquidation. Additionally, the HLBV method could result in net income (or net loss) attributable to National Storage Affiliates Trust during a period when the Company reports consolidated net loss (or net income), or net income (or net loss) attributable to National Storage Affiliates Trust in excess of the Company's consolidated net income (or net loss). The computations of basic and diluted earnings (loss) per share may be materially affected by these disproportionate income (loss) allocations, resulting in volatile fluctuations of basic and diluted earnings (loss) per share. Other Comprehensive Income (Loss) The Company has cash flow hedge derivative instruments that are measured at fair value with unrealized gains or losses recognized in other comprehensive income (loss) with a corresponding adjustment to accumulated other comprehensive income within equity, as discussed further in Note 12. Under the HLBV method of allocating income (loss) discussed above, a calculation is prepared at each balance sheet date by applying the HLBV method including, and excluding, the assets and liabilities resulting from the Company's cash flow hedge derivative instruments to determine comprehensive income (loss) attributable to National Storage Affiliates Trust. As a result of the distribution rights and priorities set forth in the operating partnership's LP Agreement, in any given period, other comprehensive income (loss) may be allocated disproportionately to unitholders as compared to their respective ownership percentage in the operating partnership and as compared to their respective allocation of net income (loss). Restricted Cash The Company's restricted cash consists of escrowed funds deposited with financial institutions for real estate taxes, insurance and other reserves for capital improvements in accordance with the Company's loan agreements and like-kind exchange proceeds. Assets held for sale The Company classifies properties as held for sale when certain criteria are met. At such time, the properties, including significant assets and liabilities that are expected to be transferred as part of a sale transaction, are presented separately on the condensed consolidated balance sheet at the lower of carrying value or estimated fair value less costs to sell and depreciation is no longer recognized. As of December 31, 2017 the Company had one self storage property classified as held for sale. The results of operations for the self storage property classified as held for sale are reflected within income from operations in the Company's condensed consolidated statements of operations. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU 2014-09 effective January 1, 2018, and concluded that its adoption of ASU 2014-09 had no material effect on its condensed consolidated financial statements as most of the Company's revenue is derived from lease contracts, which are excluded from the scope of the new guidance. For the Company’s other property-related revenue and management fees and other revenue subject to the new guidance, the Company performed an evaluation which included identifying its performance obligations and when such performance obligations are satisfied. Based on this evaluation, the Company determined that there was no material change in the timing or pattern of recognition of revenue for these activities as compared to the application of previous revenue recognition guidance. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance for accounting for leases, including requiring lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and lessees to recognize most leases on-balance sheet as lease liabilities with corresponding right-of-use assets. ASU 2016-02 initially required a modified retrospective approach, with entities applying the new guidance at the beginning of the earliest period presented in the financial statements in which they first apply the new standard, with certain elective transition relief. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, which allows entities the option to apply the new standard at adoption date with a cumulative-effect adjustment in the period of adoption. The Company will adopt ASU 2016-02 and ASU 2018-11 effective January 1, 2019. The Company is evaluating the effect that ASU 2016-02 and ASU 2018-11 will have on its operating leases, condensed consolidated financial statements and related disclosures. The Company expects ASU 2016-02 and ASU 2018-11 to primarily impact its accounting for its non-cancelable leasehold interest agreements in which it is the lessee. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS Noncontrolling Interests All of the limited partner equity interests in the Company's operating partnership not held by the Company are reflected as noncontrolling interests. Noncontrolling interests also include ownership interests in DownREIT partnerships held by entities other than the Company's operating partnership. NSA is the general partner of its operating partnership and is authorized to cause its operating partnership to issue additional partner interests, including OP units and subordinated performance units, at such prices and on such other terms as it determines in its sole discretion. As of June 30, 2018 and December 31, 2017 , units reflecting noncontrolling interests consisted of the following: June 30, 2018 December 31, 2017 Series A-1 preferred units 316,103 — OP units 28,961,458 26,719,607 Subordinated performance units 10,663,892 11,604,738 LTIP units 940,597 771,396 DownREIT units DownREIT OP units 1,834,786 1,834,786 DownREIT subordinated performance units 4,386,999 4,386,999 Total 47,103,835 45,317,526 Series A-1 Preferred Units The 6.000% Series A-1 Cumulative Redeemable Preferred Units ("Series A-1 preferred units") rank senior to OP units and subordinated performance units in the Company's operating partnership with respect to distributions and liquidation. The Series A-1 preferred units have a stated value of $25.00 per unit and receive distributions at an annual rate of 6.000% . These distributions are cumulative. The Series A-1 preferred units are redeemable at the option of the holder after the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash in an amount equal to the market value of an equivalent number of the Company's 6.000% Series A cumulative redeemable preferred shares of beneficial interest ("Series A preferred shares") or the issuance of Series A preferred shares on a one -for-one basis, subject to adjustments. The increase in Series A-1 preferred units outstanding from December 31, 2017 to June 30, 2018 was due to the issuance of Series A-1 preferred units in connection with the acquisition of self storage properties during the first quarter of 2018. OP Units and DownREIT OP units OP units in the Company's operating partnership are redeemable for cash or, at the Company's option, exchangeable for the Company's common shares of beneficial interest, $0.01 par value per share ("common shares") on a one -for-one basis, and DownREIT OP units are redeemable for cash or, at the Company's option, exchangeable for OP units in its operating partnership on a one -for-one basis, subject to certain adjustments in each case. The OP unitholders are generally not entitled to elect redemption until one year after the issuance of the OP units. The holders of DownREIT OP units are generally not entitled to elect redemption until five years after the date of the contributor's initial contribution. The increase in OP Units outstanding from December 31, 2017 to June 30, 2018 was due to the issuance of 2,024,170 OP units related to the voluntary conversions of 997,074 subordinated performance units (as discussed further below) and the issuance of 464,263 OP units in connection with the acquisition of self storage properties, partially offset by the redemption of 246,582 OP units for common shares. Subordinated Performance Units and DownREIT Subordinated Performance Units Subordinated performance units may also, under certain circumstances, be convertible into OP units which are exchangeable for common shares as described above, and DownREIT subordinated performance units may, under certain circumstances, be exchangeable for subordinated performance units on a one -for-one basis. Subordinated performance units are only convertible into OP units after a two year lock-out period and then generally (i) at the holder’s election only upon the achievement of certain performance thresholds relating to the properties to which such subordinated performance units relate or (ii) at the Company's election upon a retirement event of a PRO that holds such subordinated performance units or upon certain qualifying terminations. The holders of DownREIT subordinated performance units are generally not entitled to elect redemption until at least five years after the date of the contributor's initial contribution. Following such lock-out period, a holder of subordinated performance units in the Company's operating partnership may elect a voluntary conversion one time each year prior to December 1st to convert a pre-determined portion of such subordinated performance units into OP units in the Company's operating partnership, with such conversion effective January 1st of the following year, with each subordinated performance unit being converted into the number of OP units determined by dividing the average cash available for distribution, or CAD, per unit on the series of specific subordinated performance units over the one-year period prior to conversion by 110% of the CAD per unit on the OP units determined over the same period. CAD per unit on the series of specific subordinated performance units and OP units is determined by the Company based generally upon the application of the provisions of the LP Agreement applicable to the distributions of operating cash flow and capital transactions proceeds. The decrease in subordinated performance units outstanding from December 31, 2017 to June 30, 2018 was due to the voluntary conversion of 997,074 subordinated performance units into 2,024,170 OP units partially offset by the issuance of 56,228 subordinated performance units for co-investment by certain of the Company's PROs in connection with the acquisition of self storage properties. LTIP Units LTIP units are a special class of partnership interest in the Company's operating partnership that allow the holder to participate in the ordinary and liquidating distributions received by holders of the OP units (subject to the achievement of specified levels of profitability by the Company's operating partnership or the achievement of certain events). LTIP units may also, under certain circumstances, be convertible into OP units on a one -for-one basis, which are then exchangeable for common shares as described above. The increase in LTIP units outstanding from December 31, 2017 to June 30, 2018 was due to the issuance of compensatory LTIP units to employees and trustees. |
SELF STORAGE PROPERTIES
SELF STORAGE PROPERTIES | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
SELF STORAGE PROPERTIES | SELF STORAGE PROPERTIES Self storage properties are summarized as follows (dollars in thousands): June 30, 2018 December 31, 2017 Land $ 559,182 $ 528,304 Buildings and improvements 1,910,322 1,741,459 Furniture and equipment 5,713 5,470 Total self storage properties 2,475,217 2,275,233 Less accumulated depreciation (206,827 ) (170,358 ) Self storage properties, net $ 2,268,390 $ 2,104,875 Depreciation expense related to self storage properties amounted to $18.9 million and $14.3 million during the three months ended June 30, 2018 and 2017 , respectively, and $36.9 million and $28.4 million during the six months ended June 30, 2018 and 2017 , respectively. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE As of June 30, 2018 , the Company's 2016 Joint Venture owned and operated a portfolio of 72 properties containing approximately 5.0 million rentable square feet, configured in approximately 40,000 storage units and located across 13 states. The 2016 Joint Venture acquired one self storage property for $9.5 million during the six months ended June 30, 2018 . The 2016 Joint Venture financed the self storage property acquisition with capital contributions from the 2016 Joint Venture members, of which the Company contributed $2.4 million for its 25% proportionate share. The following table presents the condensed financial position of the 2016 Joint Venture as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 ASSETS Self storage properties, net $ 655,989 $ 655,973 Other assets 8,217 8,397 Total assets $ 664,206 $ 664,370 LIABILITIES AND EQUITY Debt financing $ 317,522 $ 317,359 Other liabilities 5,916 4,855 Equity 340,768 342,156 Total liabilities and equity $ 664,206 $ 664,370 The following table presents the condensed operating information of the 2016 Joint Venture for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, 2018 2017 Total revenue $ 15,196 $ 13,059 Property operating expenses 5,000 4,432 Net operating income 10,196 8,627 Supervisory, administrative and other expenses (1,072 ) (941 ) Depreciation and amortization (5,527 ) (7,676 ) Interest expense (2,928 ) (2,802 ) Acquisition and other expenses (275 ) (267 ) Net income (loss) $ 394 $ (3,059 ) Six Months Ended June 30, 2018 2017 Total revenue $ 30,002 $ 25,566 Property operating expenses 10,293 8,500 Net operating income 19,709 17,066 Supervisory, administrative and other expenses (2,129 ) (1,839 ) Depreciation and amortization (11,034 ) (15,165 ) Interest expense (5,827 ) (5,628 ) Acquisition and other expenses (537 ) (633 ) Net income (loss) $ 182 $ (6,199 ) |
SELF STORAGE PROPERTY ACQUISITI
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS | SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS Acquisitions The Company acquired 37 self storage properties and an expansion project at an existing property with an estimated fair value of $198.7 million during the six months ended June 30, 2018 . Of these acquisitions, one self storage property and an expansion project at an existing property with an estimated fair value of $7.4 million were acquired by the Company from its PROs. The 37 self storage property acquisitions were accounted for as asset acquisitions and accordingly, $1.1 million of acquisition costs related to the acquisitions were capitalized as part of the basis of the acquired properties. The Company recognized the estimated fair value of the acquired assets and assumed liabilities on the respective dates of such acquisitions. The Company allocated the total purchase price to the estimated fair value of tangible and intangible assets acquired, and liabilities assumed. The Company allocated a portion of the purchase price to identifiable intangible assets consisting of customer in-place leases which were recorded at estimated fair value of $4.8 million , resulting in a total fair value of $193.9 million allocated to real estate. The following table summarizes the investment in self storage property acquisitions completed by the Company during the six months ended June 30, 2018 (dollars in thousands): Acquisitions Closed During the Three Months Ended: Number of Properties Summary of Investment Cash and Acquisition Costs Value of OP Equity (1) Mortgages Assumed Other Liabilities Total March 31, 2018 25 $ 105,135 $ 22,403 $ 7,581 $ 670 $ 135,789 June 30, 2018 12 62,470 — — 467 62,937 Total 37 $ 167,605 $ 22,403 $ 7,581 $ 1,137 $ 198,726 (1) Value of OP equity represents the fair value of Series A-1 preferred units, OP units, subordinated performance units and LTIP units. Dispositions During the six months ended June 30, 2018 , the Company sold to unrelated third parties two self storage properties, one of which was classified as held for sale as of December 31, 2017. The gross sales price was $5.5 million and the Company recognized $0.4 million of gains on the sales. |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consist of the following (dollars in thousands): June 30, 2018 December 31, 2017 Customer in-place leases, net of accumulated amortization of $7,711 and $3,914, respectively $ 5,064 $ 6,590 Receivables: Trade, net 2,481 2,274 PROs and other affiliates 1,245 979 Receivable from unconsolidated real estate venture 1,421 1,200 Property acquisition and other deposits 18,286 5,050 Interest rate swaps 25,856 12,414 Prepaid expenses and other 4,111 3,949 Corporate furniture, equipment and other, net 1,341 1,444 Trade name 3,200 3,200 Management contract, net of accumulated amortization of $1,210 and $856, respectively 9,411 9,765 Goodwill 5,750 5,750 Total $ 78,166 $ 52,615 Amortization expense related to customer in-place leases amounted to $3.3 million and $3.2 million for the three months ended June 30, 2018 and 2017 , respectively, and $6.3 million and $7.5 million during the six months ended June 30, 2018 and 2017 , respectively. Amortization expense related to the management contract amounted to $0.2 million and $0.2 million for the three months ended June 30, 2018 and 2017 , respectively, and $0.4 million and $0.4 million for the six months ended June 30, 2018 and 2017 , respectively. |
DEBT FINANCING
DEBT FINANCING | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
DEBT FINANCING | DEBT FINANCING The Company's outstanding debt as of June 30, 2018 and December 31, 2017 is summarized as follows (dollars in thousands): Interest Rate (1) June 30, 2018 December 31, 2017 Credit Facility: Revolving line of credit 3.49% $ 80,125 $ 88,500 Term loan A 2.91% 235,000 235,000 Term loan B 2.94% 155,000 155,000 Term loan C 3.71% 105,000 105,000 Term loan D 3.79% 125,000 — Term loan facility 2.95% 175,000 100,000 Fixed rate mortgages payable 4.17% 273,335 271,491 Total principal 1,148,460 954,991 Unamortized debt issuance costs and debt premium, net 1,329 3,106 Total debt $ 1,149,789 $ 958,097 (1) Represents the effective interest rate as of June 30, 2018 . Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate excludes fees for unused borrowings. Credit Facility Increase On January 29, 2018, pursuant to a full exercise by the Company's operating partnership of its remaining expansion option and a partial exercise of its Additional Expansion Option (defined below) under its credit agreement dated as of May 6, 2016, the Company's operating partnership, as borrower, certain of its subsidiaries that are party to the credit agreement, as subsidiary guarantors, and the Company entered into a third increase agreement and amendment (the "Increase Agreement") with a syndicated group of lenders to increase the total borrowing capacity under the Company's credit agreement by adding an additional tranche D term loan facility in an aggregate outstanding principal amount of $125.0 million , for a total credit agreement of over $1.0 billion consisting of the following components: (i) a $400.0 million revolving line of credit (the "Revolver"), (ii) a tranche A term loan facility (the "Term Loan A"), which provides for a total borrowing commitment of up to $235.0 million , (iii) a tranche B term loan facility (the "Term Loan B"), which provides for a total borrowing commitment of up to $155.0 million , (iv) a tranche C term loan facility (the "Term Loan C"), which provides for a total borrowing commitment of up to $105.0 million and (iv) a tranche D term loan facility (the "Term Loan D" and together with the Revolver, the Term Loan A, Term Loan B and Term Loan C, the "credit facility"), which provides for a total borrowing commitment of up to $125.0 million . The Company renewed its expansion option under the credit facility to permit an additional $300.0 million of revolving commitments and/or term loans (the "Additional Expansion Option"), which was partially exercised in the amount of $20.0 million in connection with the Term Loan D. If exercised in full, the Additional Expansion Option would provide for a total borrowing capacity under the credit facility of $1.3 billion . The Term Loan D matures on January 29, 2023. It is not subject to any scheduled reduction or amortization payment prior to maturity. Interest rates applicable to loans under the Term Loan D are determined based on a 1, 2, 3 or 6 month LIBOR period (as elected by the Company at the beginning of any applicable interest period) plus an applicable margin, or a base rate, determined by the greatest of the Key Bank prime rate, the federal funds rate plus 0.50% or one month LIBOR plus 1.00% , plus an applicable margin. The applicable margins for the Term Loan D are leverage based and range from 1.30% to 1.85% for LIBOR loans and 0.30% to 0.85% for base rate loans; provided that after such time as the Company achieves an investment grade rating from at least two rating agencies, the Company may elect (but is not required to elect) that the Term Loan D is subject to the rating based on applicable margins ranging from 0.90% to 1.75% for LIBOR Loans and 0.00% to 0.75% for base rate loans. The Term Loan D may be prepaid at any time without penalty. Other than the increases and amendments related to the Term Loan D and the Additional Expansion Option described above, the Increase Agreement did not impact or amend the credit facility's previously disclosed terms, including its covenants, events of default, or terms of payment. For a summary of the Company's financial covenants and additional detail regarding the Company's credit facility, term loan facility, and fixed rate mortgages payable, please see Note 8 to the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission. As of June 30, 2018 , the Company had outstanding letters of credit totaling $4.7 million and would have had the capacity to borrow remaining Revolver commitments of $315.2 million while remaining in compliance with the credit facility's financial covenants. At June 30, 2018 , the Company was in compliance with all such covenants. Term Loan B Reprice On May 31, 2018, the Company, under its credit agreement dated as of May 6, 2016, the Company's operating partnership, as borrower, and certain of its subsidiaries that are party to the credit agreement, as subsidiary guarantors, entered into a fourth amendment with a syndicated group of lenders to reduce the applicable margins for borrowings under the Term Loan B. The amended applicable margins for LIBOR loans range from 1.30% to 1.70% and for base rate loans range from 0.30% to 0.70% ; provided that after such time as the Company achieves an investment grade rating from at least two rating agencies, the Company may elect (but is not required to elect) that the Term Loan B is subject to the rating based on applicable margins ranging from 0.90% to 1.75% for LIBOR Loans and 0.00% to 0.75% for base rate loans. Other than the reduction in the applicable margins for borrowings under the Term Loan B described above, the fourth amendment did not impact or amend the credit facility's previously disclosed terms, including its covenants, events of default, or terms of payment. Term Loan Facility Increase and Reprice On June 5, 2018, the Company's operating partnership and the Company entered into the Second Amendment (the "Second Amendment") to the Credit Agreement, dated as of June 30, 2016, by and among the Company's operating partnership, as borrower, certain of its subsidiaries that are party thereto, as subsidiary guarantors, the Company, Capital One, National Association, as administrative agent, and the other lenders party thereto. Under the Second Amendment, the Company's operating partnership, among other things, partially exercised its existing $100.0 million expansion option in an aggregate amount equal to $75.0 million , increasing the aggregate amount outstanding under the term loan facility (the "Term Loan Facility") to $175.0 million . The Company also increased the remaining expansion option by $200.0 million , for a total expansion option of $225.0 million . If the remaining expansion option is exercised in full, the total expansion option would provide for a total borrowing capacity under the Term Loan Facility in an aggregate amount of $400.0 million . In addition, the Second Amendment reduces the applicable margin for borrowings under the Term Loan Facility. The amended applicable margins for LIBOR loans range from 1.30% to 1.70% and for base rate loans range from 0.30% to 0.70% ; provided that after such time as the Company achieves an investment grade rating from at least two rating agencies, the Company may elect (but is not required to elect) that the Term Loan Facility is subject to the rating based on applicable margins ranging from 0.90% to 1.75% for LIBOR loans and 0.00% to 0.75% for base rate loans. The covenants, events of default, and terms of payment under the Term Loan Facility are otherwise unchanged. Future Debt Obligations Based on existing debt agreements in effect as of June 30, 2018 , the scheduled principal and maturity payments for the Company's outstanding borrowings are presented in the table below (in thousands): Year Ending December 31, Scheduled Principal and Maturity Payments Amortization of Premium and Unamortized Debt Issuance Costs Total Remainder of 2018 $ 5,197 $ (115 ) $ 5,082 2019 5,128 (253 ) 4,875 2020 119,522 (605 ) 118,917 2021 242,603 (684 ) 241,919 2022 159,205 (308 ) 158,897 2023 377,049 73 377,122 Thereafter 239,756 3,221 242,977 $ 1,148,460 $ 1,329 $ 1,149,789 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and six months ended June 30, 2018 and 2017 , (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Earnings (loss) per common share - basic and diluted Numerator Net income $ 13,041 $ 15,576 $ 25,014 $ 22,757 Net income attributable to noncontrolling interests (7,150 ) (13,209 ) (8,663 ) (19,835 ) Net income attributable to National Storage Affiliates Trust 5,891 2,367 16,351 2,922 Distributions to preferred shareholders (2,587 ) — (5,175 ) — Distributed and undistributed earnings allocated to participating securities (7 ) (7 ) (14 ) (13 ) Net income attributable to common shareholders - basic 3,297 2,360 11,162 2,909 Effect of assumed conversion of dilutive securities — — 8,356 — Net income attributable to common shareholders - diluted $ 3,297 $ 2,360 $ 19,518 $ 2,909 Denominator Weighted average shares outstanding - basic 50,486 44,223 50,393 43,814 Effect of dilutive securities: Weighted average OP units outstanding — — 29,060 — Weighted average DownREIT OP unit equivalents outstanding — — 1,835 — Weighted average LTIP units outstanding — — 323 — Weighted average subordinated performance units and DownREIT subordinated performance unit equivalents — — 18,881 — Weighted average shares outstanding - diluted 50,486 44,223 100,492 43,814 Earnings (loss) per share - basic $ 0.07 $ 0.05 $ 0.22 $ 0.07 Earnings (loss) per share - diluted $ 0.07 $ 0.05 $ 0.19 $ 0.07 As discussed in Note 2 , the Company allocates GAAP income (loss) utilizing the HLBV method, in which the Company allocates income or loss based on the change in each unitholders' claim on the net assets of its operating partnership at period end after adjusting for any distributions or contributions made during such period. Due to the stated liquidation priorities and because the HLBV method incorporates non-cash items such as depreciation expense, in any given period, income or loss may be allocated disproportionately to National Storage Affiliates Trust and noncontrolling interests, resulting in volatile fluctuations of basic and diluted earnings (loss) per share. Outstanding equity interests of the operating partnership and DownREIT partnerships are considered potential common shares for purposes of calculating diluted earnings (loss) per share as the unitholders may, through the exercise of redemption rights, obtain common shares, subject to various restrictions. Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by further adjusting for the dilutive impact using the treasury stock method for unvested LTIP units subject to a service condition outstanding during the period and the if-converted method for any convertible securities outstanding during the period. Generally, following certain lock-out periods, OP units in the operating partnership are redeemable for cash or, at the Company's option, exchangeable for common shares on a one -for-one basis, subject to certain adjustments and DownREIT OP units are redeemable for cash or, at the Company's option, exchangeable for OP units in the operating partnership on a one -for-one basis, subject to certain adjustments in each case. LTIP units may also, under certain circumstances, be convertible into OP units on a one-for-one basis, which are then exchangeable for common shares as described above. Certain LTIP units vested prior to or upon the completion of the Company's initial public offering and certain LTIP units have vested upon the satisfaction of a service condition or will vest upon the satisfaction of future service and market conditions. Vested LTIP units and unvested LTIP units that vest based on a service or market condition are allocated income or loss in a similar manner as OP units. Unvested LTIP units subject to a service or market condition are evaluated for dilution using the treasury stock method. For the three and six months ended June 30, 2018 , 383,712 unvested LTIP units that vest based on a service or market condition are excluded from the calculation of diluted earnings (loss) per share as they are not dilutive to earnings (loss) per share. In addition, certain LTIP units vest upon the future acquisition of properties sourced by PROs. For the three and six months ended June 30, 2018 , 224,000 unvested LTIP units that vest upon the future acquisition of properties are excluded from the calculation of diluted earnings (loss) per share because the contingency for the units to vest has not been attained as of the end of the reported periods. Subordinated performance units may also, under certain circumstances, be convertible into OP units which are exchangeable for common shares as described above, and DownREIT subordinated performance units may, under certain circumstances, be exchangeable for subordinated performance units on a one -for-one basis. Subordinated performance units are only convertible into OP units, after a two year lock-out period and then generally (i) at the holder’s election only upon the achievement of certain performance thresholds relating to the properties to which such subordinated performance units relate or (ii) at the Company's election upon a retirement event of a PRO that holds such subordinated performance units or upon certain qualifying terminations. Although subordinated performance units may only be convertible after a two year lock-out period, the Company assumes a hypothetical conversion of each subordinated performance unit (including each DownREIT subordinated performance unit) into OP units (with subsequently assumed redemption into common shares) for the purposes of calculating diluted weighted average common shares. This hypothetical conversion is calculated using historical financial information, and as a result, is not necessarily indicative of the results of operations, cash flows or financial position of the Company upon expiration of the two -year lock out period on conversions. For the three months ended June 30, 2018 and 2017 , and the six months ended June 30, 2017, potential common shares totaling 50.6 million , 50.3 million and 50.2 million , respectively, related to OP units, DownREIT OP units, subordinated performance units and DownREIT subordinated performance units have been excluded from the calculation of diluted earnings (loss) per share as they are not dilutive to earnings (loss) per share. Participating securities, which consist of unvested restricted common shares, receive dividends equal to those received by common shares. The effect of participating securities for the periods presented above is calculated using the two-class method of allocating distributed and undistributed earnings. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Supervisory and Administrative Fees The Company has entered into asset management agreements with the PROs to provide leasing, operating, supervisory and administrative services related to the Company's self storage properties. The asset management agreements generally provide for fees ranging from 5% to 6% of gross revenue for the managed self storage properties. During the three months ended June 30, 2018 and 2017 , the Company incurred $4.2 million and $3.5 million , respectively, for supervisory and administrative fees to the PROs and during the six months ended June 30, 2018 and 2017 , the Company incurred $8.2 million and $6.8 million , respectively, for supervisory and administrative fees to the PROs. Such fees are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. Payroll Services The employees responsible for operation of the self storage properties are generally employees of the PROs who charge the Company for the costs associated with the respective employees. For the three months ended June 30, 2018 and 2017 , the Company incurred $7.2 million and $5.9 million , respectively, for payroll and related costs reimbursable to these PROs and for the six months ended June 30, 2018 and 2017 , the Company incurred $14.5 million and $11.7 million , respectively, for payroll and related costs reimbursable to these PROs. Such costs are included in property operating expenses in the accompanying condensed consolidated statements of operations. Due Diligence Costs During the three months ended June 30, 2018 and 2017 , the Company incurred $0.1 million and $0.2 million , respectively, of expenses payable to certain PROs related to self storage property acquisitions sourced by the PROs and during the six months ended June 30, 2018 and 2017 , the Company incurred $0.3 million and $0.3 million , respectively, of expenses payable to certain PROs related to self storage property acquisitions sourced by the PROs. These expenses, which are based on the volume of transactions sourced by the PROs, are intended to reimburse the PROs for due diligence costs incurred in the sourcing and underwriting process. These due diligence costs are capitalized as part of the basis of the acquired self storage properties. Self Storage Property Acquisitions During the six months ended June 30, 2018 , the operating partnership issued 11,490 subordinated performance units to an affiliate of Personal Mini (the Company's chairman and chief executive officer, Arlen D. Nordhagen, has a noncontrolling minority ownership interest in this affiliate of Personal Mini), for $0.3 million of co-investment related to the acquisition of a self storage property from an unrelated third party. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is subject to litigation, claims, and assessments that may arise in the ordinary course of its business activities. Such matters include contractual matters, employment related issues, and regulatory proceedings. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on the Company's financial position, results of operations, or liquidity. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The Company sometimes limits its exposure to interest rate fluctuations by entering into interest rate swap agreements. The interest rate swap agreements moderate the Company's exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The Company measures its interest rate swap derivatives at fair value on a recurring basis. The changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income (loss) and are subsequently reclassified into earnings in the period that the hedged transaction affects earnings. Information regarding the Company's interest rate swaps measured at fair value, which are classified within Level 2 of the GAAP fair value hierarchy, is presented below (dollars in thousands): Fair value at December 31, 2016 $ 8,159 Swap ineffectiveness 6 Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive income 1,530 Unrealized losses on interest rate swaps included in accumulated other comprehensive income (2,239 ) Fair value at June 30, 2017 $ 7,456 Fair value at December 31, 2017 $ 12,414 Gains on interest rate swaps reclassified into interest expense from accumulated other comprehensive income (232 ) Unrealized gains on interest rate swaps included in accumulated other comprehensive income 13,655 Fair value at June 30, 2018 $ 25,837 As of June 30, 2018 and December 31, 2017 , the Company had outstanding interest rate swaps with aggregate notional amounts of $720.0 million and $595.0 million , respectively, designated as cash flow hedges. As of June 30, 2018 , the Company's swaps had a weighted average remaining term of approximately 4.4 years . The fair value of these swaps are presented within accounts payable and accrued liabilities and other assets in the Company's balance sheets, and the Company recognizes any changes in the fair value as an adjustment of accumulated other comprehensive income (loss) within equity. If the forward rates at June 30, 2018 remain constant, the Company estimates that during the next 12 months , the Company would reclassify into earnings approximately $4.5 million of the unrealized gains included in accumulated other comprehensive income (loss). If market interest rates are above the 1.77% weighted average fixed rate under these interest rate swaps, the Company benefits from net cash payments due from its swap counterparties. There were no transfers between levels of the three-tier fair value measurement hierarchy during the six months ended June 30, 2018 and 2017 . For financial assets and liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including LIBOR yield curves. The Company uses valuation techniques for Level 2 financial assets and liabilities which include LIBOR yield curves at the reporting date as well as assessing counterparty credit risk. Counterparties to these contracts are highly rated financial institutions. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company's derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the counterparties. As of June 30, 2018 , the Company determined that the effect of credit valuation adjustments on the overall valuation of its derivative positions are not significant to the overall valuation of its derivatives. Therefore, the Company has determined that its derivative valuations are appropriately classified in Level 2 of the fair value hierarchy. Fair Value Disclosures The carrying values of cash and cash equivalents, restricted cash, trade receivables, and accounts payable and accrued liabilities reflected in the balance sheets at June 30, 2018 and December 31, 2017 , approximate fair value due to the short term nature of these financial assets and liabilities. The carrying value of variable rate debt financing reflected in the balance sheets at June 30, 2018 and December 31, 2017 approximates fair value as the changes in their associated interest rates reflect the current market and credit risk is similar to when the loans were originally obtained. The combined principal balance of the Company's fixed rate mortgages payable was approximately $273.3 million as of June 30, 2018 with a fair value of approximately $279.1 million (categorized within Level 2 of the fair value hierarchy). In determining the fair value, the Company estimated a weighted average market interest rate of approximately 4.39% , compared to the weighted average contractual interest rate of 4.85% . The combined principal balance of the Company's fixed rate mortgages was approximately $271.5 million as of December 31, 2017 with a fair value of approximately $282.6 million . In determining the fair value as of December 31, 2017 , the Company estimated a weighted average market interest rate of approximately 4.04% , compared to the weighted average contractual interest rate of 4.87% . |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS 2018 Joint Venture On July 6, 2018, a wholly owned subsidiary of the Company (the "NSA Member") entered into a limited liability company agreement (the "JV Agreement") of NSA HHF JV, LLC (the "2018 Joint Venture") with an affiliate of Heitman America Real Estate REIT LLC (the "JV Investor" and, together with the NSA Member, the "Members"). The JV Agreement contemplates that the 2018 Joint Venture will acquire from Simply Self Storage, which is a portfolio company of a private real estate fund managed by Brookfield Asset Management, two REITs that own a portfolio of self storage properties (the "Portfolio") for an aggregate purchase price of approximately $1.325 billion (the "Acquisition"). The Portfolio consists of 112 self storage properties containing approximately 8.7 million rentable square feet, configured in over 68,000 storage units and located across 17 states and Puerto Rico. The closing of the Acquisition by the 2018 Joint Venture, which is subject to the satisfaction of a number of closing conditions, is expected during the third quarter of 2018. Following the closing, the Company expects to rebrand the majority of the Portfolio under its iStorage brand, and the Company’s iStorage management platform will operate the properties. Under the terms of the JV Agreement, the Company has committed approximately $160.8 million to the 2018 Joint Venture in exchange for a 25% ownership interest. The JV Investor has completed the arrangements for all of the co-investment capital necessary to commit approximately $482.3 million to the 2018 Joint Venture in exchange for the remaining 75% ownership interest necessary to complete the Acquisition. These capital commitments include each Member's pro rata share of $6.0 million in estimated capital expenditures and $19.0 million in estimated transaction expenses. The Company has committed an additional $64.0 million capital contribution to the 2018 Joint Venture to acquire the six self storage properties in the Portfolio located in Puerto Rico and a single self storage property in the Portfolio located in Ohio (the "Distribution Properties"), which will be distributed by the 2018 Joint Venture to the Company immediately following the closing of the Acquisition in redemption of the interest associated with such additional capital contribution. The 105 properties from the Portfolio that will remain in the 2018 Joint Venture post-closing contain approximately 8.1 million rentable square feet configured in approximately 63,000 storage units. As of August 6, 2018, the NSA Member had contributed $34.1 million to the 2018 Joint Venture to fund a portion of the $53.0 million non-refundable cash deposit that was made by the 2018 Joint Venture in connection with the Acquisition. The 2018 Joint Venture has signed a non-binding term sheet with two institutional lenders to provide approximately $643.0 million in secured debt financing to the 2018 Joint Venture, which if obtained, would be used by the 2018 Joint Venture to fund the balance of the purchase price for the Acquisition. The term sheet contemplates that the interest-only financing would carry an interest rate of 4.34% per annum and have a maturity of 10 years . The debt financing would be secured by a first mortgage lien on each self storage property held by the 2018 Joint Venture, except for the Distribution Properties. Although the Company expects the 2018 Joint Venture’s debt financing to be agreed as outlined in the term sheet, the term sheet does not represent a binding commitment, and there can be no assurance that the debt financing needed by the 2018 Joint Venture to complete the Acquisition will actually be arranged on the above terms or at all. A subsidiary of the Company will act as the non-member manager of the 2018 Joint Venture (the "NSA Manager"). The NSA Manager will direct, manage and control the day-to-day operations and affairs of the 2018 Joint Venture. Certain decisions involving the business of the 2018 Joint Venture and its subsidiaries, including, among others, the approval of annual budgets, sales and acquisitions of properties, financings and certain actions relating to bankruptcy matters, require the approval of both the NSA Member and the JV Investor. The Company expects that the 2018 Joint Venture will not be consolidated in the financial statements of the Company, however, the Company does not expect to finalize its consolidation analysis until the closing of the Acquisition. The 2018 Joint Venture will pay certain customary fees to the NSA Manager and its affiliates for managing and operating the properties, including a monthly property management fee equal to 6% of monthly gross revenues and net sales revenues from the 2018 Joint Venture assets, a monthly platform fee equal to $1,250 per property, an acquisition fee equal to $4.0 million , of which one-fourth is earned each year over the first four years of the 2018 Joint Venture, with an additional fee determined on a sliding scale for future acquisitions, and a development management fee for any development projects undertaken by the 2018 Joint Venture equal to 3% of construction costs (excluding "soft costs"). In addition, the 2018 Joint Venture will reimburse NSA Manager and its affiliates for costs associated with the integration and transfer of the properties in the Portfolio in an amount equal to $2.0 million . An affiliate of the NSA Manager will provide tenant warranty protection or tenant insurance to tenants at the 2018 Joint Venture properties in exchange for 50% of all proceeds from such tenant warranty protection or tenant insurance program at each 2018 Joint Venture property. Common Share Offering On July 13, 2018, the Company closed a follow-on offering of 5,900,000 of its common shares at an offering price of $29.86 per share. The Company received aggregate net proceeds from the offering of approximately $175.7 million after deducting estimated expenses associated with the offering. The Company used the net proceeds from the offering to repay all borrowings outstanding under its Revolver, and the Company expects to use the remaining net proceeds from the offering, together with amounts it expects to redraw from its Revolver, to make capital contributions to the 2018 Joint Venture. |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles ("GAAP") and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC") regarding interim financial reporting. Accordingly, certain information and footnote disclosures required by GAAP for complete financial statements have been condensed or omitted in accordance with such rules and regulations. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements have been included. The Company's results of operations for the quarterly period ended June 30, 2018 are not necessarily indicative of the results to be expected for the full year or any other future period. |
Principles of Consolidation | Principles of Consolidation The Company's financial statements include the accounts of its operating partnership and its controlled subsidiaries. All significant intercompany balances and transactions have been eliminated in the consolidation of entities. |
Variable Interest Entity | When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity ("VIE"), and if the Company is deemed to be the primary beneficiary, in accordance with authoritative guidance issued on the consolidation of VIEs. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether the general partner controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates all entities that are VIEs and of which the Company is deemed to be the primary beneficiary. The Company has determined that its operating partnership is a VIE. The sole significant asset of National Storage Affiliates Trust is its investment in its operating partnership, and consequently, substantially all of the Company’s assets and liabilities represent those assets and liabilities of its operating partnership. |
Revenue Recognition | Revenue Recognition Rental revenue Rental revenue consists of space rentals and related fees. Management has determined that all of the Company's leases are operating leases. Substantially all leases may be terminated on a month-to-month basis and rental income is recognized ratably over the lease term using the straight-line method. Rents received in advance are deferred and recognized on a straight-line basis over the related lease term associated with the prepayment. Promotional discounts and other incentives are recognized as a reduction to rental income over the applicable lease term. Other property-related revenue Other property-related revenue consists of ancillary revenues such as tenant insurance and/or tenant warranty protection-related access fees and sales of storage supplies which are recognized in the period earned. The Company and certain of the Company’s PROs have tenant insurance- and/or tenant warranty protection plan-related arrangements with insurance companies and the Company’s tenants. During the three months ended June 30, 2018 and 2017 , the Company recognized $1.8 million and $1.4 million , respectively, of tenant insurance and tenant warranty protection plan revenues and during the six months ended June 30, 2018 and 2017 , the Company recognized $3.5 million and $2.8 million , respectively, of tenant insurance and tenant warranty protection plan revenues. The Company sells boxes, packing supplies, locks and other retail merchandise at its properties. During the three months ended June 30, 2018 and 2017 , the Company recognized retail sales of $0.4 million and $0.3 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized retail sales of $0.8 million and $0.6 million , respectively. Management fees and other revenue Management fees and other revenue consist of property management fees, call center fees, platform fees, acquisition fees, and a portion of tenant warranty protection proceeds that the Company earns for managing and operating its 2016 Joint Venture. The property management fees are equal to 6% of monthly gross revenues and net sales revenues from the 2016 Joint Venture assets, the call center fees are equal to 1% of monthly gross revenues and net sales revenues from the 2016 Joint Venture assets, and the platform fees are equal to $1,250 per month per 2016 Joint Venture property. The Company provides supervisory and administrative property management services, centralized call center services, and technology platform and revenue management services to the 2016 Joint Venture properties. During the three months ended June 30, 2018 and 2017 , the Company recognized property management fees, call center fees and platform fees of $1.4 million and $1.2 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized property management fees, call center fees and platform fees of $2.7 million and $2.3 million , respectively. For acquisition fees, the Company provides sourcing, underwriting and administration services to the 2016 Joint Venture. The 2016 Joint Venture paid the Company a $4.1 million acquisition fee equal to 0.65% of the gross capitalization (including debt and equity) of the original 66 -property 2016 Joint Venture portfolio (the "Initial JV Portfolio") in 2016, at the time of the Initial JV Portfolio acquisition. This fee may be refundable to the 2016 Joint Venture, on a prorated basis, if the Company is removed as the 2016 Joint Venture managing member during the initial four year life of the 2016 Joint Venture and as such, the Company's performance obligation for this acquisition fee is satisfied over this period. As of June 30, 2018 and December 31, 2017 , the Company had deferred revenue related to the Initial JV Portfolio acquisition fee of $2.3 million and $2.8 million , respectively. The Company also earns acquisition fees for properties acquired by the 2016 Joint Venture subsequent to the Initial JV Portfolio. These fees are based on a percentage of the gross capitalization of the acquired assets determined by the 2016 Joint Venture members, and are generally earned when the 2016 Joint Venture obtains title and control of the acquired property. During the three months ended June 30, 2018 and 2017 , the Company recognized acquisition fees of $0.3 million and $0.6 million , respectively, and during the six months ended June 30, 2018 and 2017 , the Company recognized acquisition fees of $0.6 million and $0.9 million , respectively. An affiliate of the Company provides tenant warranty protection to tenants at the 2016 Joint Venture properties in exchange for 50% of all proceeds from the tenant warranty protection program at each 2016 Joint Venture property. During the three months ended June 30, 2018 and 2017 , the Company recognized $0.5 million and $0.5 million , respectively, of revenue related to these activities and during the six months ended June 30, 2018 and 2017 , the Company recognized $1.0 million and $1.0 million , respectively, of revenue related to these activities. Gain on sale of self storage properties The Company recognizes gains from disposition of facilities only upon closing in accordance with the guidance on sales of nonfinancial assets. Profit on real estate sold is recognized upon closing when all, or substantially all, of the promised consideration has been received and is nonrefundable and the Company has transferred control of the facilities to the purchaser. |
Investments in Unconsolidated Real Estate Venture | Investments in Unconsolidated Real Estate Venture The Company’s investment in its unconsolidated real estate venture is recorded under the equity method of accounting in the accompanying condensed consolidated financial statements. Under the equity method, the Company’s investment in unconsolidated real estate venture is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings (losses) is recognized based on the Company’s ownership interest in the earnings (losses) of the unconsolidated real estate venture. The Company follows the "nature of the distribution approach" for classification of distributions from its unconsolidated real estate venture in its condensed consolidated statements of cash flows. Under this approach, distributions are reported on the basis of the nature of the activity or activities that generated the distributions as either a return on investment, which are classified as operating cash flows, or a return of investment (e.g., proceeds from the unconsolidated real estate venture’s sale of assets) which are reported as investing cash flows. |
Noncontrolling Interests | Noncontrolling Interests All of the limited partner equity interests in the operating partnership not held by the Company are reflected as noncontrolling interests. Noncontrolling interests also include ownership interests in DownREIT partnerships held by entities other than the operating partnership or its subsidiaries. In the condensed consolidated statements of operations, the Company allocates net income (loss) attributable to noncontrolling interests to arrive at net income (loss) attributable to National Storage Affiliates Trust. For transactions that result in changes to the Company's ownership interest in its operating partnership, the carrying amount of noncontrolling interests is adjusted to reflect such changes. The difference between the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is reflected as an adjustment to additional paid-in capital on the condensed consolidated balance sheets. |
Allocation of Net Income (Loss) | Allocation of Net Income (Loss) The distribution rights and priorities set forth in the operating partnership's LP Agreement differ from what is reflected by the underlying percentage ownership interests of the unitholders. Accordingly, the Company allocates GAAP income (loss) utilizing the hypothetical liquidation at book value ("HLBV") method, in which the Company allocates income or loss based on the change in each unitholders’ claim on the net assets of its operating partnership at period end after adjusting for any distributions or contributions made during such period. The HLBV method is commonly applied to equity investments where cash distribution percentages vary at different points in time and are not directly linked to an equity holder’s ownership percentage. The HLBV method is a balance sheet-focused approach to income (loss) allocation. A calculation is prepared at each balance sheet date to determine the amount that unitholders would receive if the operating partnership were to liquidate all of its assets (at GAAP net book value) and distribute the resulting proceeds to its creditors and unitholders based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is used to derive each unitholder's share of the income (loss) for the period. Due to the stated liquidation priorities and because the HLBV method incorporates non-cash items such as depreciation expense, in any given period, income or loss may be allocated disproportionately to unitholders as compared to their respective ownership percentage in the operating partnership, and net income (loss) attributable to National Storage Affiliates Trust could be more or less net income than actual cash distributions received and more or less income or loss than what may be received in the event of an actual liquidation. Additionally, the HLBV method could result in net income (or net loss) attributable to National Storage Affiliates Trust during a period when the Company reports consolidated net loss (or net income), or net income (or net loss) attributable to National Storage Affiliates Trust in excess of the Company's consolidated net income (or net loss). The computations of basic and diluted earnings (loss) per share may be materially affected by these disproportionate income (loss) allocations, resulting in volatile fluctuations of basic and diluted earnings (loss) per share. |
Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) The Company has cash flow hedge derivative instruments that are measured at fair value with unrealized gains or losses recognized in other comprehensive income (loss) with a corresponding adjustment to accumulated other comprehensive income within equity, as discussed further in Note 12. Under the HLBV method of allocating income (loss) discussed above, a calculation is prepared at each balance sheet date by applying the HLBV method including, and excluding, the assets and liabilities resulting from the Company's cash flow hedge derivative instruments to determine comprehensive income (loss) attributable to National Storage Affiliates Trust. As a result of the distribution rights and priorities set forth in the operating partnership's LP Agreement, in any given period, other comprehensive income (loss) may be allocated disproportionately to unitholders as compared to their respective ownership percentage in the operating partnership and as compared to their respective allocation of net income (loss). |
Restricted Cash | Restricted Cash The Company's restricted cash consists of escrowed funds deposited with financial institutions for real estate taxes, insurance and other reserves for capital improvements in accordance with the Company's loan agreements and like-kind exchange proceeds. |
Assets Held For Sale | Assets held for sale The Company classifies properties as held for sale when certain criteria are met. At such time, the properties, including significant assets and liabilities that are expected to be transferred as part of a sale transaction, are presented separately on the condensed consolidated balance sheet at the lower of carrying value or estimated fair value less costs to sell and depreciation is no longer recognized. As of December 31, 2017 the Company had one self storage property classified as held for sale. The results of operations for the self storage property classified as held for sale are reflected within income from operations in the Company's condensed consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company adopted ASU 2014-09 effective January 1, 2018, and concluded that its adoption of ASU 2014-09 had no material effect on its condensed consolidated financial statements as most of the Company's revenue is derived from lease contracts, which are excluded from the scope of the new guidance. For the Company’s other property-related revenue and management fees and other revenue subject to the new guidance, the Company performed an evaluation which included identifying its performance obligations and when such performance obligations are satisfied. Based on this evaluation, the Company determined that there was no material change in the timing or pattern of recognition of revenue for these activities as compared to the application of previous revenue recognition guidance. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing guidance for accounting for leases, including requiring lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases and lessees to recognize most leases on-balance sheet as lease liabilities with corresponding right-of-use assets. ASU 2016-02 initially required a modified retrospective approach, with entities applying the new guidance at the beginning of the earliest period presented in the financial statements in which they first apply the new standard, with certain elective transition relief. In July 2018, the FASB issued ASU 2018-11, Leases - Targeted Improvements, which allows entities the option to apply the new standard at adoption date with a cumulative-effect adjustment in the period of adoption. The Company will adopt ASU 2016-02 and ASU 2018-11 effective January 1, 2019. The Company is evaluating the effect that ASU 2016-02 and ASU 2018-11 will have on its operating leases, condensed consolidated financial statements and related disclosures. The Company expects ASU 2016-02 and ASU 2018-11 to primarily impact its accounting for its non-cancelable leasehold interest agreements in which it is the lessee. |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of outstanding equity interests | As of June 30, 2018 and December 31, 2017 , units reflecting noncontrolling interests consisted of the following: June 30, 2018 December 31, 2017 Series A-1 preferred units 316,103 — OP units 28,961,458 26,719,607 Subordinated performance units 10,663,892 11,604,738 LTIP units 940,597 771,396 DownREIT units DownREIT OP units 1,834,786 1,834,786 DownREIT subordinated performance units 4,386,999 4,386,999 Total 47,103,835 45,317,526 |
SELF STORAGE PROPERTIES (Tables
SELF STORAGE PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Real Estate [Abstract] | |
Schedule of self storage properties | Self storage properties are summarized as follows (dollars in thousands): June 30, 2018 December 31, 2017 Land $ 559,182 $ 528,304 Buildings and improvements 1,910,322 1,741,459 Furniture and equipment 5,713 5,470 Total self storage properties 2,475,217 2,275,233 Less accumulated depreciation (206,827 ) (170,358 ) Self storage properties, net $ 2,268,390 $ 2,104,875 |
INVESTMENT IN UNCONSOLIDATED 24
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of condensed financial information of joint ventures | The following table presents the condensed financial position of the 2016 Joint Venture as of June 30, 2018 and December 31, 2017 (in thousands): June 30, 2018 December 31, 2017 ASSETS Self storage properties, net $ 655,989 $ 655,973 Other assets 8,217 8,397 Total assets $ 664,206 $ 664,370 LIABILITIES AND EQUITY Debt financing $ 317,522 $ 317,359 Other liabilities 5,916 4,855 Equity 340,768 342,156 Total liabilities and equity $ 664,206 $ 664,370 The following table presents the condensed operating information of the 2016 Joint Venture for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended June 30, 2018 2017 Total revenue $ 15,196 $ 13,059 Property operating expenses 5,000 4,432 Net operating income 10,196 8,627 Supervisory, administrative and other expenses (1,072 ) (941 ) Depreciation and amortization (5,527 ) (7,676 ) Interest expense (2,928 ) (2,802 ) Acquisition and other expenses (275 ) (267 ) Net income (loss) $ 394 $ (3,059 ) Six Months Ended June 30, 2018 2017 Total revenue $ 30,002 $ 25,566 Property operating expenses 10,293 8,500 Net operating income 19,709 17,066 Supervisory, administrative and other expenses (2,129 ) (1,839 ) Depreciation and amortization (11,034 ) (15,165 ) Interest expense (5,827 ) (5,628 ) Acquisition and other expenses (537 ) (633 ) Net income (loss) $ 182 $ (6,199 ) |
SELF STORAGE PROPERTY ACQUISI25
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of investments in self storage property acquisitions | The following table summarizes the investment in self storage property acquisitions completed by the Company during the six months ended June 30, 2018 (dollars in thousands): Acquisitions Closed During the Three Months Ended: Number of Properties Summary of Investment Cash and Acquisition Costs Value of OP Equity (1) Mortgages Assumed Other Liabilities Total March 31, 2018 25 $ 105,135 $ 22,403 $ 7,581 $ 670 $ 135,789 June 30, 2018 12 62,470 — — 467 62,937 Total 37 $ 167,605 $ 22,403 $ 7,581 $ 1,137 $ 198,726 (1) Value of OP equity represents the fair value of Series A-1 preferred units, OP units, subordinated performance units and LTIP units. |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets consist of the following (dollars in thousands): June 30, 2018 December 31, 2017 Customer in-place leases, net of accumulated amortization of $7,711 and $3,914, respectively $ 5,064 $ 6,590 Receivables: Trade, net 2,481 2,274 PROs and other affiliates 1,245 979 Receivable from unconsolidated real estate venture 1,421 1,200 Property acquisition and other deposits 18,286 5,050 Interest rate swaps 25,856 12,414 Prepaid expenses and other 4,111 3,949 Corporate furniture, equipment and other, net 1,341 1,444 Trade name 3,200 3,200 Management contract, net of accumulated amortization of $1,210 and $856, respectively 9,411 9,765 Goodwill 5,750 5,750 Total $ 78,166 $ 52,615 |
DEBT FINANCING (Tables)
DEBT FINANCING (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The Company's outstanding debt as of June 30, 2018 and December 31, 2017 is summarized as follows (dollars in thousands): Interest Rate (1) June 30, 2018 December 31, 2017 Credit Facility: Revolving line of credit 3.49% $ 80,125 $ 88,500 Term loan A 2.91% 235,000 235,000 Term loan B 2.94% 155,000 155,000 Term loan C 3.71% 105,000 105,000 Term loan D 3.79% 125,000 — Term loan facility 2.95% 175,000 100,000 Fixed rate mortgages payable 4.17% 273,335 271,491 Total principal 1,148,460 954,991 Unamortized debt issuance costs and debt premium, net 1,329 3,106 Total debt $ 1,149,789 $ 958,097 (1) Represents the effective interest rate as of June 30, 2018 . Effective interest rate incorporates the stated rate plus the impact of interest rate cash flow hedges and discount and premium amortization, if applicable. For the revolving line of credit, the effective interest rate excludes fees for unused borrowings. |
Schedule of future debt maturities | Based on existing debt agreements in effect as of June 30, 2018 , the scheduled principal and maturity payments for the Company's outstanding borrowings are presented in the table below (in thousands): Year Ending December 31, Scheduled Principal and Maturity Payments Amortization of Premium and Unamortized Debt Issuance Costs Total Remainder of 2018 $ 5,197 $ (115 ) $ 5,082 2019 5,128 (253 ) 4,875 2020 119,522 (605 ) 118,917 2021 242,603 (684 ) 241,919 2022 159,205 (308 ) 158,897 2023 377,049 73 377,122 Thereafter 239,756 3,221 242,977 $ 1,148,460 $ 1,329 $ 1,149,789 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of the computation of basic and diluted earnings per common share | The following table sets forth the computation of basic and diluted earnings (loss) per common share for the three and six months ended June 30, 2018 and 2017 , (in thousands, except per share amounts): Three Months Ended Six Months Ended 2018 2017 2018 2017 Earnings (loss) per common share - basic and diluted Numerator Net income $ 13,041 $ 15,576 $ 25,014 $ 22,757 Net income attributable to noncontrolling interests (7,150 ) (13,209 ) (8,663 ) (19,835 ) Net income attributable to National Storage Affiliates Trust 5,891 2,367 16,351 2,922 Distributions to preferred shareholders (2,587 ) — (5,175 ) — Distributed and undistributed earnings allocated to participating securities (7 ) (7 ) (14 ) (13 ) Net income attributable to common shareholders - basic 3,297 2,360 11,162 2,909 Effect of assumed conversion of dilutive securities — — 8,356 — Net income attributable to common shareholders - diluted $ 3,297 $ 2,360 $ 19,518 $ 2,909 Denominator Weighted average shares outstanding - basic 50,486 44,223 50,393 43,814 Effect of dilutive securities: Weighted average OP units outstanding — — 29,060 — Weighted average DownREIT OP unit equivalents outstanding — — 1,835 — Weighted average LTIP units outstanding — — 323 — Weighted average subordinated performance units and DownREIT subordinated performance unit equivalents — — 18,881 — Weighted average shares outstanding - diluted 50,486 44,223 100,492 43,814 Earnings (loss) per share - basic $ 0.07 $ 0.05 $ 0.22 $ 0.07 Earnings (loss) per share - diluted $ 0.07 $ 0.05 $ 0.19 $ 0.07 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of interest rate swap derivatives measured at fair value | Information regarding the Company's interest rate swaps measured at fair value, which are classified within Level 2 of the GAAP fair value hierarchy, is presented below (dollars in thousands): Fair value at December 31, 2016 $ 8,159 Swap ineffectiveness 6 Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive income 1,530 Unrealized losses on interest rate swaps included in accumulated other comprehensive income (2,239 ) Fair value at June 30, 2017 $ 7,456 Fair value at December 31, 2017 $ 12,414 Gains on interest rate swaps reclassified into interest expense from accumulated other comprehensive income (232 ) Unrealized gains on interest rate swaps included in accumulated other comprehensive income 13,655 Fair value at June 30, 2018 $ 25,837 |
ORGANIZATION AND NATURE OF OP30
ORGANIZATION AND NATURE OF OPERATIONS (Details) storage_unit in Thousands, ft² in Millions | Jun. 30, 2018ft²storage_unitstateproperty | Dec. 31, 2016property |
Schedule of Equity Method Investments [Line Items] | ||
Number of self storage properties owned and operated | 551 | |
Number of states in which self storage properties are owned and operated | state | 29 | |
Total rentable square feet in self storage properties | ft² | 34 | |
Number of storage units owned and operated | storage_unit | 270 | |
Consolidated Properties | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of self storage properties owned and operated | 479 | |
Number of states in which self storage properties are owned and operated | state | 26 | |
Total rentable square feet in self storage properties | ft² | 29 | |
Number of storage units owned and operated | storage_unit | 230 | |
Joint Venture | Unconsolidated real estate venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of self storage properties owned and operated | 66 | |
Company's proportionate share of its Joint Venture (percent) | 25.00% | |
Joint Venture | Unconsolidated Properties | Unconsolidated real estate venture | ||
Schedule of Equity Method Investments [Line Items] | ||
Number of self storage properties owned and operated | 72 | |
Number of states in which self storage properties are owned and operated | state | 13 | |
Total rentable square feet in self storage properties | ft² | 5 | |
Number of storage units owned and operated | storage_unit | 40 |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | Jun. 30, 2018USD ($)partnershipproperty | Dec. 31, 2017USD ($)property |
Variable Interest Entity [Line Items] | ||
Number of self storage properties | property | 551 | |
Net book value of real estate owned | $ 2,268,390 | $ 2,104,875 |
Carrying value of fixed rate mortgages | 1,148,460 | $ 954,991 |
Number of properties held for sale | property | 1 | |
Mortgages | Fixed Rate Mortgages | ||
Variable Interest Entity [Line Items] | ||
Carrying value of fixed rate mortgages | $ 273,335 | $ 271,491 |
VIE, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of partnerships considered to be VIEs | partnership | 21 | |
Number of self storage properties | property | 34 | |
Net book value of real estate owned | $ 244,100 | 248,000 |
VIE, Primary Beneficiary | Mortgages | Fixed Rate Mortgages | ||
Variable Interest Entity [Line Items] | ||
Carrying value of fixed rate mortgages | $ 139,400 | $ 140,300 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)property | Jun. 30, 2017USD ($) | Dec. 31, 2016USD ($)property | Dec. 31, 2017USD ($) | |
Disaggregation of Revenue [Line Items] | ||||||
Other property-related revenue | $ 2,549,000 | $ 2,045,000 | $ 4,870,000 | $ 3,926,000 | ||
Property management fees, call center fees and platform fees | $ 2,155,000 | 2,142,000 | $ 4,316,000 | 3,980,000 | ||
Number of self storage properties | property | 551 | 551 | ||||
Initial term of Joint Venture agreement | 4 years | |||||
Deferred revenue related to the Initial JV Portfolio | $ 13,546,000 | $ 13,546,000 | $ 12,687,000 | |||
Joint Venture | Unconsolidated real estate venture | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Number of self storage properties | property | 66 | |||||
Tenant Insurance and Protection Plan Fees and Commissions | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other property-related revenue | 1,800,000 | 1,400,000 | 3,500,000 | 2,800,000 | ||
Retail Products and Supplies | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Other property-related revenue | 400,000 | 300,000 | $ 800,000 | 600,000 | ||
Property Management, Call Center, and Platform Fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property management fees as percent of monthly gross revenues and net sales revenue of Joint Venture assets | 6.00% | |||||
Call center fees as percent of monthly gross revenues and net sales revenue of Joint Venture assets | 1.00% | |||||
Platform fees per Joint Venture property per month | $ 1,250 | |||||
Property management fees, call center fees and platform fees | 1,400,000 | 1,200,000 | 2,700,000 | 2,300,000 | ||
Acquisition Fees | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property management fees, call center fees and platform fees | 300,000 | 600,000 | 600,000 | 900,000 | ||
Acquisition fee for the Initial JV Portfolio | $ 4,100,000 | |||||
Acquisition fees received as a percent of gross capitalization of Initial JV Portfolio | 0.65% | |||||
Deferred revenue related to the Initial JV Portfolio | 2,300,000 | 2,300,000 | $ 2,800,000 | |||
Tenant Warranty Protection | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Property management fees, call center fees and platform fees | $ 500,000 | $ 500,000 | $ 1,000,000 | $ 1,000,000 | ||
Percent of total warranty protection plan proceeds received per Joint Venture property (percent) | 50.00% |
NONCONTROLLING INTERESTS - Equi
NONCONTROLLING INTERESTS - Equity Interests (Details) - shares | Jun. 30, 2018 | Dec. 31, 2017 |
Partnership Subsidiaries [Member] | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 47,103,835 | 45,317,526 |
Series A-1 Preferred Units | NSA OP, LP | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 316,103 | 0 |
OP units | NSA OP, LP | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 28,961,458 | 26,719,607 |
OP units | DownREIT Partnership | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 1,834,786 | 1,834,786 |
Subordinated performance units | NSA OP, LP | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 10,663,892 | 11,604,738 |
Subordinated performance units | DownREIT Partnership | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 4,386,999 | 4,386,999 |
LTIP units | NSA OP, LP | ||
Noncontrolling Interest [Line Items] | ||
Outstanding equity interest (in shares) | 940,597 | 771,396 |
NONCONTROLLING INTERESTS - Narr
NONCONTROLLING INTERESTS - Narrative (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Class of Stock [Line Items] | ||
Series A-1 preferred units stated value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares of beneficial interest, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Series A-1 Preferred Units | ||
Class of Stock [Line Items] | ||
Series A-1 preferred units dividend rate (percent) | 6.00% | |
Series A-1 preferred units stated value (in dollars per share) | $ 25 | |
Series A-1 Preferred Units | NSA OP, LP | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 | |
OP units | NSA OP, LP | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 | |
Minimum conversion period (in years) | 1 year | |
Issuance of shares/units (in shares) | 2,024,170 | |
Redemptions/conversions of units (in shares) | 246,582 | |
OP units | NSA OP, LP | Self Storage Properties | ||
Class of Stock [Line Items] | ||
Issuance of shares/units (in shares) | 464,263 | |
OP units | DownREIT Partnership | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 | |
Minimum conversion period (in years) | 5 years | |
Subordinated performance units | ||
Class of Stock [Line Items] | ||
Percentage of cash available for distribution used in conversion ratio calculation | 110.00% | |
Subordinated performance units | NSA OP, LP | ||
Class of Stock [Line Items] | ||
Redemptions/conversions of units (in shares) | 997,074 | |
Subordinated performance units | NSA OP, LP | Self Storage Properties | ||
Class of Stock [Line Items] | ||
Issuance of shares/units (in shares) | 56,228 | |
Subordinated performance units | DownREIT Partnership | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 | |
Minimum conversion period (in years) | 5 years | |
Subordinated performance units | NSA OP, LP And DownREIT Partnership | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 | |
Minimum conversion period (in years) | 2 years | |
Unit conversion, lock out period | 2 years | |
LTIP units | NSA OP, LP | ||
Class of Stock [Line Items] | ||
Unit conversion ratio | 1 |
SELF STORAGE PROPERTIES (Detail
SELF STORAGE PROPERTIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Real Estate [Abstract] | |||||
Land | $ 559,182 | $ 559,182 | $ 528,304 | ||
Buildings and improvements | 1,910,322 | 1,910,322 | 1,741,459 | ||
Furniture and equipment | 5,713 | 5,713 | 5,470 | ||
Total self storage properties | 2,475,217 | 2,475,217 | 2,275,233 | ||
Less accumulated depreciation | (206,827) | (206,827) | (170,358) | ||
Self storage properties, net | 2,268,390 | 2,268,390 | $ 2,104,875 | ||
Depreciation expense related to self storage properties | $ 18,900 | $ 14,300 | $ 36,900 | $ 28,400 |
INVESTMENT IN UNCONSOLIDATED 36
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE - Narrative (Details) storage_unit in Thousands, $ in Thousands, ft² in Millions | 6 Months Ended | ||
Jun. 30, 2018USD ($)ft²storage_unitstateproperty | Jun. 30, 2017USD ($) | Dec. 31, 2016property | |
Schedule of Equity Method Investments [Line Items] | |||
Number of self storage properties | property | 551 | ||
Total rentable square feet in self storage properties owned by the Joint Venture | ft² | 34 | ||
Number of storage units owned by the Joint Venture | storage_unit | 270 | ||
Number of states that the Joint Venture self storage properties are owned in | state | 29 | ||
Contributions to the Joint Venture | $ | $ 2,390 | $ 12,647 | |
Joint Venture | Unconsolidated real estate venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of self storage properties | property | 66 | ||
Number of self storage properties acquired by the Joint Venture | property | 1 | ||
Aggregate purchase price of properties acquired by the Joint Venture | $ | $ 9,500 | ||
Contributions to the Joint Venture | $ | $ 2,400 | ||
Company's proportionate share of its Joint Venture (percent) | 25.00% |
INVESTMENT IN UNCONSOLIDATED 37
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE - Condensed Financial Position (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
ASSETS | ||
Self storage properties, net | $ 655,989 | $ 655,973 |
Other assets | 8,217 | 8,397 |
Total assets | 664,206 | 664,370 |
LIABILITIES AND EQUITY | ||
Debt financing | 317,522 | 317,359 |
Other liabilities | 5,916 | 4,855 |
Equity | 340,768 | 342,156 |
Total liabilities and equity | $ 664,206 | $ 664,370 |
INVESTMENT IN UNCONSOLIDATED 38
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE - Condensed Operating Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Total revenue | $ 15,196 | $ 13,059 | $ 30,002 | $ 25,566 |
Property operating expenses | 5,000 | 4,432 | 10,293 | 8,500 |
Net operating income | 10,196 | 8,627 | 19,709 | 17,066 |
Supervisory, administrative and other expenses | (1,072) | (941) | (2,129) | (1,839) |
Depreciation and amortization | (5,527) | (7,676) | (11,034) | (15,165) |
Interest expense | (2,928) | (2,802) | (5,827) | (5,628) |
Acquisition and other expenses | (275) | (267) | (537) | (633) |
Net income (loss) | $ 394 | $ (3,059) | $ 182 | $ (6,199) |
SELF STORAGE PROPERTY ACQUISI39
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($)property | |
Business Acquisition [Line Items] | |
Acquisition-related costs capitalized | $ 1.1 |
Recognized fair value allocated to real estate | $ 193.9 |
Number of self storage properties sold | property | 2 |
Number of real estate assets held for sale, sold | property | 1 |
Gross selling price of self storage properties sold | $ 5.5 |
Gain on sale of self storage properties | 0.4 |
Customer In-Place Leases | |
Business Acquisition [Line Items] | |
Recognized fair value allocated to in-place leases | $ 4.8 |
Affiliated Entity | Participating Regional Operator (PRO) | |
Business Acquisition [Line Items] | |
Number of self storage properties acquired | property | 1 |
Estimated fair value of acquired self storage properties | $ 7.4 |
Self Storage Properties | |
Business Acquisition [Line Items] | |
Number of self storage properties acquired | property | 37 |
Estimated fair value of acquired self storage properties | $ 198.7 |
SELF STORAGE PROPERTY ACQUISI40
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS - Acquisitions (Details) - 2018 Acquisitions $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018USD ($)property | Mar. 31, 2018USD ($)property | Jun. 30, 2018USD ($)property | |
Business Acquisition [Line Items] | |||
Number of self storage properties acquired | property | 12 | 25 | 37 |
Cash and Acquisition Costs | $ 62,470 | $ 105,135 | $ 167,605 |
Value of OP Equity | 0 | 22,403 | 22,403 |
Mortgages Assumed | 0 | 7,581 | 7,581 |
Other Liabilities | 467 | 670 | 1,137 |
Total | $ 62,937 | $ 135,789 | $ 198,726 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Receivables: | |||||
Trade, net | $ 2,481 | $ 2,481 | $ 2,274 | ||
PROs and other affiliates | 1,245 | 1,245 | 979 | ||
Receivable from unconsolidated real estate venture | 1,421 | 1,421 | 1,200 | ||
Property acquisition and other deposits | 18,286 | 18,286 | 5,050 | ||
Interest rate swaps | 25,856 | 25,856 | 12,414 | ||
Prepaid expenses and other | 4,111 | 4,111 | 3,949 | ||
Corporate furniture, equipment and other, net | 1,341 | 1,341 | 1,444 | ||
Goodwill | 5,750 | 5,750 | 5,750 | ||
Total | 78,166 | 78,166 | 52,615 | ||
Customer In-Place Leases | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | 3,300 | $ 3,200 | 6,300 | $ 7,500 | |
Accumulated amortization | 7,711 | 7,711 | 3,914 | ||
Other Assets [Abstract] | |||||
Intangible assets, net of amortization | 5,064 | 5,064 | 6,590 | ||
Trade Names | |||||
Other Assets [Abstract] | |||||
Intangible assets, net of amortization | 3,200 | 3,200 | 3,200 | ||
Management Contract | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | 200 | $ 200 | 400 | $ 400 | |
Accumulated amortization | 1,210 | 1,210 | 856 | ||
Other Assets [Abstract] | |||||
Intangible assets, net of amortization | $ 9,411 | $ 9,411 | $ 9,765 |
DEBT FINANCING - Debt Summary (
DEBT FINANCING - Debt Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Principal amount | $ 1,148,460 | $ 954,991 |
Unamortized debt issuance costs and debt premium, net | 1,329 | 3,106 |
Total debt | $ 1,149,789 | 958,097 |
Line of Credit | Credit Facility | Revolving line of credit | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 3.49% | |
Principal amount | $ 80,125 | 88,500 |
Unsecured Debt | Credit Facility | Term loan A | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 2.91% | |
Principal amount | $ 235,000 | 235,000 |
Unsecured Debt | Credit Facility | Term loan B | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 2.94% | |
Principal amount | $ 155,000 | 155,000 |
Unsecured Debt | Credit Facility | Term loan C | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 3.71% | |
Principal amount | $ 105,000 | 105,000 |
Unsecured Debt | Credit Facility | Term loan D | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 3.79% | |
Principal amount | $ 125,000 | 0 |
Unsecured Debt | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 2.95% | |
Principal amount | $ 175,000 | 100,000 |
Mortgages | Fixed Rate Mortgages | ||
Debt Instrument [Line Items] | ||
Effective interest rate (percent) | 4.17% | |
Principal amount | $ 273,335 | $ 271,491 |
DEBT FINANCING - Future maturit
DEBT FINANCING - Future maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Scheduled Principal and Maturity Payments | ||
Remainder of 2018 | $ 5,197 | |
2,019 | 5,128 | |
2,020 | 119,522 | |
2,021 | 242,603 | |
2,022 | 159,205 | |
2,023 | 377,049 | |
Thereafter | 239,756 | |
Total principal | 1,148,460 | $ 954,991 |
Amortization of Premium and Unamortized Debt Issuance Costs | ||
Remainder of 2018 | (115) | |
2,019 | (253) | |
2,020 | (605) | |
2,021 | (684) | |
2,022 | (308) | |
2,023 | 73 | |
Thereafter | 3,221 | |
Total premium amortization and unamortized debt issuance costs | 1,329 | |
Total | ||
Remainder of 2018 | 5,082 | |
2,019 | 4,875 | |
2,020 | 118,917 | |
2,021 | 241,919 | |
2,022 | 158,897 | |
2,023 | 377,122 | |
Thereafter | 242,977 | |
Total debt | $ 1,149,789 | $ 958,097 |
DEBT FINANCING - Narrative (Det
DEBT FINANCING - Narrative (Details) - USD ($) | Jun. 05, 2018 | May 31, 2018 | Jan. 29, 2018 | Jun. 30, 2018 | Jun. 04, 2018 |
Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum Borrowing Capacity If Expansion Option Is Exercised | $ 1,300,000,000 | ||||
Unsecured Debt | Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 1,000,000,000 | ||||
Unsecured Debt | Amended Credit Facility | Term loan A | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 235,000,000 | ||||
Unsecured Debt | Amended Credit Facility | Term loan B | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 155,000,000 | ||||
Unsecured Debt | Amended Credit Facility | Term loan B | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 1.30% | ||||
Elective leverage based margin threshold (percent) | 0.90% | ||||
Unsecured Debt | Amended Credit Facility | Term loan B | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 0.30% | ||||
Elective leverage based margin threshold (percent) | 0.00% | ||||
Unsecured Debt | Amended Credit Facility | Term loan B | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 1.70% | ||||
Elective leverage based margin threshold (percent) | 1.75% | ||||
Unsecured Debt | Amended Credit Facility | Term loan B | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 0.70% | ||||
Elective leverage based margin threshold (percent) | 0.75% | ||||
Unsecured Debt | Amended Credit Facility | Term loan C | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 105,000,000 | ||||
Unsecured Debt | Amended Credit Facility | Term loan D | |||||
Debt Instrument [Line Items] | |||||
Term loan D principal amount | 125,000,000 | ||||
Maximum borrowing capacity | 125,000,000 | ||||
Credit facility expansion partial exercise | 20,000,000 | ||||
Unsecured Debt | Credit Facility | Term loan D | Federal Funds Effective Swap Rate | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 0.50% | ||||
Unsecured Debt | Credit Facility | Term loan D | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 1.00% | ||||
Unsecured Debt | Credit Facility | Term loan D | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Leverage based margin threshold (percent) | 1.30% | ||||
Elective leverage based margin threshold (percent) | 0.90% | ||||
Unsecured Debt | Credit Facility | Term loan D | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Leverage based margin threshold (percent) | 0.30% | ||||
Elective leverage based margin threshold (percent) | 0.00% | ||||
Unsecured Debt | Credit Facility | Term loan D | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Leverage based margin threshold (percent) | 1.85% | ||||
Elective leverage based margin threshold (percent) | 1.75% | ||||
Unsecured Debt | Credit Facility | Term loan D | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Leverage based margin threshold (percent) | 0.85% | ||||
Elective leverage based margin threshold (percent) | 0.75% | ||||
Unsecured Debt | Expansion Option of Amended Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility expansion option | 300,000,000 | ||||
Unsecured Debt | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 175,000,000 | $ 100,000,000 | |||
Credit facility expansion option | 225,000,000 | ||||
Credit facility expansion partial exercise | 200,000,000 | ||||
Maximum Borrowing Capacity If Expansion Option Is Exercised | 400,000,000 | ||||
Proceeds from lines of credit | $ 75,000,000 | ||||
Unsecured Debt | Term Loan Facility | Minimum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 1.30% | ||||
Elective leverage based margin threshold (percent) | 0.00% | ||||
Unsecured Debt | Term Loan Facility | Minimum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 0.30% | ||||
Elective leverage based margin threshold (percent) | 0.90% | ||||
Unsecured Debt | Term Loan Facility | Maximum | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 1.70% | ||||
Elective leverage based margin threshold (percent) | 0.75% | ||||
Unsecured Debt | Term Loan Facility | Maximum | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Borrowing rate spread (percent) | 0.70% | ||||
Elective leverage based margin threshold (percent) | 1.75% | ||||
Line of Credit | Amended Credit Facility | Revolving line of credit | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Line of Credit | Credit Facility | Revolving line of credit | |||||
Debt Instrument [Line Items] | |||||
Revolving line of credit remaining borrowing capacity | $ 315,200,000 | ||||
Line of Credit | Credit Facility | Letter of credit | |||||
Debt Instrument [Line Items] | |||||
Letters of credit outstanding | $ 4,700,000 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator | ||||
Net income | $ 13,041 | $ 15,576 | $ 25,014 | $ 22,757 |
Net income attributable to noncontrolling interests | (7,150) | (13,209) | (8,663) | (19,835) |
Net income attributable to National Storage Affiliates Trust | 5,891 | 2,367 | 16,351 | 2,922 |
Distributions to preferred shareholders | (2,587) | 0 | (5,175) | 0 |
Distributed and undistributed earnings allocated to participating securities | (7) | (7) | (14) | (13) |
Net income attributable to common shareholders - basic | 3,297 | 2,360 | 11,162 | 2,909 |
Effect of assumed conversion of dilutive securities | 0 | 0 | 8,356 | 0 |
Net income attributable to common shareholders - diluted | $ 3,297 | $ 2,360 | $ 19,518 | $ 2,909 |
Denominator | ||||
Weighted average shares outstanding - basic (in shares) | 50,486 | 44,223 | 50,393 | 43,814 |
Effect of dilutive securities: | ||||
Weighted average shares outstanding - diluted (in shares) | 50,486 | 44,223 | 100,492 | 43,814 |
Earnings (loss) per share - basic (in dollars per share) | $ 0.07 | $ 0.05 | $ 0.22 | $ 0.07 |
Earnings (loss) per share - diluted (in dollars per share) | $ 0.07 | $ 0.05 | $ 0.19 | $ 0.07 |
OP units | NSA OP, LP | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 29,060 | 0 |
OP units | DownREIT Partnership | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 1,835 | 0 |
LTIP units | NSA OP, LP | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 323 | 0 |
Subordinated performance units | NSA OP, LP And DownREIT Partnership | ||||
Effect of dilutive securities: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 18,881 | 0 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018shares | Jun. 30, 2017shares | Jun. 30, 2018shares | Jun. 30, 2017shares | |
NSA OP, LP | OP units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unit conversion ratio | 1 | |||
Minimum conversion period (in years) | 1 year | |||
DownREIT Partnership | OP units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unit conversion ratio | 1 | |||
Minimum conversion period (in years) | 5 years | |||
DownREIT Partnership | Subordinated performance units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unit conversion ratio | 1 | |||
Minimum conversion period (in years) | 5 years | |||
NSA OP, LP And DownREIT Partnership | Subordinated performance units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Unit conversion ratio | 1 | |||
Minimum conversion period (in years) | 2 years | |||
Long-Term Incentive Plan Unit based on service or market condition | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average outstanding equity interests excluded from computation of diluted earnings per share (in units) | 383,712 | 383,712 | ||
Long-Term Incentive Plan Unit based on future acquisitions | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average outstanding equity interests excluded from computation of diluted earnings per share (in units) | 224,000 | 224,000 | ||
OP units, DownREIT OP units, Subordinated performance units, DownREIT subordinated performance units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average outstanding equity interests excluded from computation of diluted earnings per share (in units) | 50,600,000 | 50,300,000 | 50,200,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Related Party Transaction [Line Items] | ||||
Payroll and related costs reimbursed to the PROs by the Company | $ 25,184 | $ 19,803 | $ 50,410 | $ 39,552 |
Supervisory and Administrative Fee Agreement | Management | Participating Regional Operator (PRO) | ||||
Related Party Transaction [Line Items] | ||||
Supervisory and administrative fees paid to the PROs | 4,200 | 3,500 | $ 8,200 | 6,800 |
Supervisory and Administrative Fee Agreement | Management | Participating Regional Operator (PRO) | Minimum | ||||
Related Party Transaction [Line Items] | ||||
Supervisory and administrative fee agreement of gross revenue, percent | 5.00% | |||
Supervisory and Administrative Fee Agreement | Management | Participating Regional Operator (PRO) | Maximum | ||||
Related Party Transaction [Line Items] | ||||
Supervisory and administrative fee agreement of gross revenue, percent | 6.00% | |||
Payroll Services | Management | Participating Regional Operator (PRO) | ||||
Related Party Transaction [Line Items] | ||||
Payroll and related costs reimbursed to the PROs by the Company | 7,200 | 5,900 | $ 14,500 | 11,700 |
Due Diligence Costs | Management | Participating Regional Operator (PRO) | ||||
Related Party Transaction [Line Items] | ||||
Due diligence expenses payable to the PROs | $ 100 | $ 200 | 300 | $ 300 |
NSA OP, LP | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Value of co-investment in acquisition | $ 300 | |||
Subordinated performance units | NSA OP, LP | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Subordinated performance units issued to an affiliate of Personal Mini | 11,490 |
FAIR VALUE MEASUREMENTS - Inter
FAIR VALUE MEASUREMENTS - Interest Swap Derivatives (Details) - Interest Rate Swap - Level 2 - Designated as Hedging Instrument - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis [Roll Forward] | ||
Fair value at beginning of period | $ 12,414 | $ 8,159 |
Swap ineffectiveness | 6 | |
Losses on interest rate swaps reclassified into interest expense from accumulated other comprehensive income | (232) | 1,530 |
Unrealized gains on interest rate swaps included in accumulated other comprehensive income | 13,655 | (2,239) |
Fair value of end of period | $ 25,837 | $ 7,456 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unrealized gains forecasted to be included in earnings transferred from AOCI in the next twelve months | $ 4.5 | |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed rate mortgages, fair value disclosure | $ 279.1 | $ 282.6 |
Weighted average market interest rate | 4.39% | 4.04% |
Weighted average contractual interest rate | 4.85% | 4.87% |
Designated as Hedging Instrument | Interest Rate Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notional amount | $ 720 | $ 595 |
Weighted average remaining term | 4 years 5 months | |
Weighted average fixed rate | 1.77% | |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fixed rate mortgages, fair value disclosure | $ 273.3 | $ 271.5 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, unit in Thousands, storage_unit in Thousands, $ in Thousands, ft² in Millions | Jul. 13, 2018USD ($)$ / sharesshares | Aug. 06, 2018USD ($) | Sep. 30, 2018USD ($)ft²statepropertyunitlender$ / property | Jun. 30, 2018USD ($)ft²storage_unitstateproperty | Jun. 30, 2017USD ($) | Oct. 01, 2018ft²propertyunit |
Subsequent Event [Line Items] | ||||||
Number of self storage properties | property | 551 | |||||
Total rentable square feet in self storage properties owned by the Joint Venture | ft² | 34 | |||||
Number of storage units owned by the Joint Venture | storage_unit | 270 | |||||
Number of states in which self storage properties are owned and operated | state | 29 | |||||
Contributions to the 2018 Joint Venture by Company for Acquisition Deposit | $ 2,390 | $ 12,647 | ||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Common share offering, number of shares issued | shares | 5,900,000 | |||||
Common share offering, price per share (in dollars per share) | $ / shares | $ 29.86 | |||||
Common share offering, net proceeds | $ 175,700 | |||||
2018 Joint Venture | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Joint venture total cash deposit for Acquisition | $ 53,000 | |||||
2018 Joint Venture | Forecast | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Aggregate purchase of 2018 Joint Venture Acquisition | $ 1,325,000 | |||||
Number of self storage properties | property | 112 | 105 | ||||
Total rentable square feet in self storage properties owned by the Joint Venture | ft² | 8.7 | 8.1 | ||||
Number of storage units owned by the Joint Venture | unit | 68 | 63 | ||||
Number of states in which self storage properties are owned and operated | state | 17 | |||||
Joint venture, estimated transaction expenses | $ 19,000 | |||||
NSA Member | 2018 Joint Venture | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Contributions to the 2018 Joint Venture by Company for Acquisition Deposit | $ 34,100 | |||||
NSA Member | 2018 Joint Venture | Forecast | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Commitment of Company to 2018 Joint Venture | $ 160,800 | |||||
Company's proportionate share of its Joint Venture (percent) | 25.00% | |||||
Joint venture, estimated capital expenditures | $ 6,000 | |||||
Joint venture, Company's additional commitment for Distribution Properties | $ 64,000 | |||||
Joint venture, additional commitment, number of Distribution Properties | property | 6 | |||||
Joint venture, monthly property management fee percent | 6.00% | |||||
Joint venture, monthly platform fee amount | $ / property | 1,250 | |||||
Joint venture, acquisition fee | $ 4,000 | |||||
Joint venture, acquisition fee term | 4 years | |||||
Joint venture, development management fee amount | 3.00% | |||||
Joint venture, reimbursement of integration and transfer of properties | $ 2,000 | |||||
Joint venture, warranty protection proceeds percent | 50.00% | |||||
JV Investor | 2018 Joint Venture | Forecast | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Joint venture commitment of partner | $ 482,300 | |||||
Joint venture, ownership percentage of partner | 75.00% | |||||
2018 Joint Venture | Forecast | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Number of lenders for 2018 Joint Venture financing | lender | 2 | |||||
Face amount of 2018 Joint Venture debt | $ 643,000 | |||||
Interest rate stated percentage of 2018 Joint Venture debt | 4.34% | |||||
Term of 2018 Joint Venture debt | 10 years |