SEGMENT INFORMATION

The Company’s segment disclosures present the measure used by the chief operating decision makers ("CODMs") for purposes of assessing each segment’s performance. The Company’s CODMs are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company’s reportable operating segments. NOI for our self-storage operations represents total property revenue less direct property operating expenses. NOI for our tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense.

The Company’s segments were historically comprised of three reportable segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. Based on how the CODMs review performance and make decisions, the Company realigned its segments as of December 31, 2017 into two reportable segments: (1) self-storage operations and (2) tenant reinsurance. The self-storage operations activities include rental operations of wholly-owned stores. The Company's consolidated revenues equal total segment revenues plus property management fees and other income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Excluded from segment revenues and net operating income is property management fees and other income.

For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. The prior periods have been restated to conform to the current presentation. Financial information for the Company’s business segments is set forth below:



	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2018			2017			2018			2017
Revenues:
Self-Storage Operations	$	266,728		$	248,589		$	772,742		$	720,878
Tenant Reinsurance	30,105			25,882			85,660			73,050
Total segment revenues	296,833			274,471			858,402			793,928

Operating expenses:
Self-Storage Operations	$	73,652		$	70,430		$	219,488		$	204,370
Tenant Reinsurance	7,720			6,272			18,798			13,996
Total segment operating expenses	$	81,372		$	76,702		$	238,286		$	218,366

Net operating income:
Self-Storage Operations	193,076			178,159			553,254			516,508
Tenant Reinsurance	22,385			19,610			66,862			59,054
Total segment net operating income:	$	215,461		$	197,769		$	620,116		$	575,562

Other components of net income (loss):
Property management fees and other income	10,120			9,685			30,849			29,239
General and administrative expense	(19,707		)	(19,498		)	(62,822		)	(60,171		)
Depreciation and amortization expense	(52,283		)	(48,075		)	(155,924		)	(144,139		)
Gain/(loss) on real estate transactions and impairment of real estate	30,807			—			30,807			(6,019		)
Interest expense	(45,926		)	(39,766		)	(130,239		)	(113,192		)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes	(1,140		)	(1,268		)	(3,525		)	(3,827		)
Interest income	1,371			1,401			3,997			5,201
Equity in earnings of unconsolidated real estate ventures	3,622			3,990			10,648			11,407
Income tax expense	(2,638		)	(3,163		)	(6,077		)	(9,154		)
Net income	$	139,687		$	101,075		$	337,830		$	284,907