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Segment Information
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Segment Information
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 June 30,
 
For the Six Months Ended June 30,

2019
2018
 
2019
2018
Revenues:


 
 
 
     Self-Storage Operations
$
279,584

$
258,128

 
$
550,587

$
506,014

     Tenant Reinsurance
31,701

28,521

 
61,498

55,555

          Total segment revenues
$
311,285

$
286,649

 
$
612,085

$
561,569




 
 
 
Operating expenses:


 
 
 
     Self-Storage Operations
$
80,870

$
73,083

 
$
159,635

$
145,836

     Tenant Reinsurance
6,982

5,471

 
13,949

11,078

          Total segment operating expenses
$
87,852

$
78,554

 
$
173,584

$
156,914




 
 
 
Net operating income:


 
 
 
     Self-Storage Operations
$
198,714

$
185,045

 
$
390,952

$
360,178

     Tenant Reinsurance
24,719

23,050

 
47,549

44,477

          Total segment net operating income:
$
223,433

$
208,095

 
$
438,501

$
404,655




 
 
 
Other components of net income (loss):


 
 
 
Property management fees and other income
$
12,317

$
10,164

 
23,063

20,729

General and administrative expense
(23,351
)
(21,651
)
 
(46,029
)
(43,115
)
Depreciation and amortization expense
(54,406
)
(51,892
)
 
(109,065
)
(103,641
)
Gain on real estate transactions
1,205

—

 
1,205

—

     Interest expense
(47,448
)
(43,347
)
 
(94,808
)
(84,313
)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes
(1,185
)
(1,176
)
 
(2,347
)
(2,385
)
     Interest income
1,718

1,188

 
3,106

2,626

     Equity in earnings of unconsolidated real estate ventures
3,121

3,429

 
5,751

7,026

     Income tax expense
(2,715
)
(2,097
)
 
(4,528
)
(3,439
)
          Net income
$
112,689

$
102,713

 
$
214,849

$
198,143