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 the Company's self-storage operations represents total property revenue less direct property operating expenses. NOI for the Company's tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense.

The Company has two reportable segments: (1) self-storage operations and (2) tenant reinsurance. The self-storage operations activities include rental operations of wholly-owned stores. The Company's consolidated revenues equal total segment revenues plus property management fees and other income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Excluded from segment revenues and net operating income is property management fees and other income.

For all periods presented, substantially all of the Company's real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. 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 March 31,
	2019			2018
Revenues:
Self-Storage Operations	$	271,003		$	247,886
Tenant Reinsurance	29,797			27,034
Total segment revenues	$	300,800		$	274,920

Operating expenses:
Self-Storage Operations	$	78,765		$	72,753
Tenant Reinsurance	6,967			5,607
Total segment operating expenses	$	85,732		$	78,360

Net operating income:
Self-Storage Operations	$	192,238		$	175,133
Tenant Reinsurance	22,830			21,427
Total segment net operating income:	$	215,068		$	196,560

Other components of net income (loss):
Property management fees and other income	$	10,746		$	10,565
General and administrative expense	(22,678		)	(21,464		)
Depreciation and amortization expense	(54,659		)	(51,749		)
Interest expense	(47,360		)	(40,966		)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes	(1,162		)	(1,209		)
Interest income	1,388			1,438
Equity in earnings of unconsolidated real estate ventures	2,630			3,597
Income tax expense	(1,813		)	(1,342		)
Net income	$	102,160		$	95,430