Segment Information

6 Months Ended

Jun. 30, 2020

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 June 30,				For the Six Months Ended June 30,
	2020		2019		2020		2019
Revenues:
Self-Storage Operations	$	279,312	$	279,584	$	566,015	$	550,587
Tenant Reinsurance	35,078		31,701		68,691		61,498
Total segment revenues	$	314,390	$	311,285	$	634,706	$	612,085
Operating expenses:
Self-Storage Operations	$	89,040	$	80,870	$	179,337	$	159,635
Tenant Reinsurance	6,858		6,982		13,536		13,949
Total segment operating expenses	$	95,898	$	87,852	$	192,873	$	173,584
Net operating income:
Self-Storage Operations	$	190,272	$	198,714	$	386,678	$	390,952
Tenant Reinsurance	28,220		24,719		55,155		47,549
Total segment net operating income:	$	218,492	$	223,433	$	441,833	$	438,501
Other components of net income (loss):
Management fees and other income	$	12,856	$	12,317	$	24,992	$	23,063
General and administrative expense	(25,337)		(23,351)		(48,348)		(46,029)
Depreciation and amortization expense	(56,018)		(54,406)		(111,293)		(109,065)
Gain on real estate transactions	—		1,205		—		1,205
Interest expense	(41,039)		(47,448)		(85,397)		(94,808)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	(1,233)		(1,185)		(2,442)		(2,347)
Interest income	1,669		1,718		3,343		3,106
Equity in earnings and dividend income from unconsolidated real estate entities	5,044		3,121		10,087		5,751
Income tax expense	(3,177)		(2,715)		(5,356)		(4,528)
Net income	$	111,257	$	112,689	$	227,419	$	214,849