Segment Information

3 Months Ended

Mar. 31, 2020

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 March 31,
	2020		2019
Revenues:
Self-Storage Operations	$	286,703	$	271,003
Tenant Reinsurance	33,613		29,797
Total segment revenues	$	320,316	$	300,800

Operating expenses:
Self-Storage Operations	$	90,297	$	78,765
Tenant Reinsurance	6,678		6,967
Total segment operating expenses	$	96,975	$	85,732

Net operating income:
Self-Storage Operations	$	196,406	$	192,238
Tenant Reinsurance	26,935		22,830
Total segment net operating income:	$	223,341	$	215,068

Other components of net income (loss):
Property management fees and other income	$	12,136	$	10,746
General and administrative expense	(23,011)		(22,678)
Depreciation and amortization expense	(55,275)		(54,659)

Interest expense	(44,358)		(47,360)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	(1,209)		(1,162)
Interest income	1,674		1,388

Equity in earnings and dividend income from unconsolidated real estate entities	5,043		2,630
Income tax expense	(2,179)		(1,813)
Net income	$	116,162	$	102,160