Segment Information

12 Months Ended

Dec. 31, 2019

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 are comprised of 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 our 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:



	Year Ended December 31,
	2019			2018			2017
Revenues:
Self-Storage Operations	$	1,130,177		$	1,039,340		$	967,229
Tenant Reinsurance	128,387			115,507			98,401
Total segment revenues	$	1,258,564		$	1,154,847		$	1,065,630

Operating expenses:
Self-Storage Operations	$	336,050		$	291,695		$	271,974
Tenant Reinsurance	29,376			25,707			19,173
Total segment operating expenses	$	365,426		$	317,402		$	291,147

Net operating income:
Self-Storage Operations	$	794,127		$	747,645		$	695,255
Tenant Reinsurance	99,011			89,800			79,228
Total segment net operating income:	$	893,138		$	837,445		$	774,483

Total segment net operating income	$	893,138		$	837,445		$	774,483
Other components of net income (loss):
Property management fees and other income	49,890			41,757			39,379
General and administrative expense	(89,418		)	(81,256		)	(78,961		)
Depreciation and amortization expense	(219,857		)	(209,050		)	(193,296		)
Gain on real estate transactions and impairment of real estate	1,205			30,807			112,789
Interest expense	(186,526		)	(178,436		)	(153,511		)
Non-cash interest expense related to the amortization of discount on equity component of exchangeable senior notes	(4,742		)	(4,687		)	(5,103		)
Interest income	7,467			5,292			6,736
Equity in earnings of unconsolidated real estate entities	11,274			14,452			15,331
Income tax expense	(11,308		)	(9,244		)	(3,625		)
Net income	$	451,123		$	447,080		$	514,222