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Segment Information
 9 Months Ended
Sep. 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. 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,

2019
2018
 
2019
2018
Revenues:


 
 
 
     Self-Storage Operations
$
290,917

$
266,728

 
$
841,504

$
772,742

     Tenant Reinsurance
33,588

30,105

 
95,086

85,660

          Total segment revenues
$
324,505

$
296,833

 
$
936,590

$
858,402




 
 
 
Operating expenses:


 
 
 
     Self-Storage Operations
$
88,653

$
73,652

 
$
248,288

$
219,488

     Tenant Reinsurance
7,644

7,720

 
21,593

18,798

          Total segment operating expenses
$
96,297

$
81,372

 
$
269,881

$
238,286




 
 
 
Net operating income:


 
 
 
     Self-Storage Operations
$
202,264

$
193,076

 
$
593,216

$
553,254

     Tenant Reinsurance
25,944

22,385

 
73,493

66,862

          Total segment net operating income:
$
228,208

$
215,461

 
$
666,709

$
620,116




 
 
 
Other components of net income (loss):


 
 
 
Property management fees and other income
$
13,000

$
10,120

 
$
36,063

$
30,849

General and administrative expense
(22,519
)
(19,707
)
 
(68,548
)
(62,822
)
Depreciation and amortization expense
(56,051
)
(52,283
)
 
(165,116
)
(155,924
)
Gain on real estate transactions
—

30,807

 
1,205

30,807

     Interest expense
(46,908
)
(45,926
)
 
(141,716
)
(130,239
)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes
(1,186
)
(1,140
)
 
(3,533
)
(3,525
)
     Interest income
2,799

1,371

 
5,905

3,997

     Equity in earnings of unconsolidated real estate ventures
2,704

3,622

 
8,455

10,648

     Income tax expense
(4,052
)
(2,638
)
 
(8,580
)
(6,077
)
          Net income
$
115,995

$
139,687

 
$
330,844

$
337,830