Segment Information

12 Months Ended

Dec. 31, 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 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,
	2020		2019		2018
Revenues:
Self-Storage Operations	$	1,157,522	$	1,130,177	$	1,039,340
Tenant Reinsurance	146,561		128,387		115,507
Total segment revenues	$	1,304,083	$	1,258,564	$	1,154,847
Operating expenses:
Self-Storage Operations	$	360,615	$	336,050	$	291,695
Tenant Reinsurance	26,494		29,376		25,707
Total segment operating expenses	$	387,109	$	365,426	$	317,402
Net operating income:
Self-Storage Operations	$	796,907	$	794,127	$	747,645
Tenant Reinsurance	120,067		99,011		89,800
Total segment net operating income:	$	916,974	$	893,138	$	837,445
Total segment net operating income	$	916,974	$	893,138	$	837,445
Other components of net income (loss):
Property management fees and other income	52,129		49,890		41,757
General and administrative expense	(96,594)		(89,418)		(81,256)
Depreciation and amortization expense	(224,444)		(219,857)		(209,050)
Gain on real estate transactions	18,075		1,205		30,807
Interest expense	(168,626)		(186,526)		(178,436)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	(3,675)		(4,742)		(4,687)
Interest income	15,192		7,467		5,292
Equity in earnings and dividend income from unconsolidated real estate entities	22,361		11,274		14,452
Income tax expense	(13,810)		(11,308)		(9,244)
Net income	$	517,582	$	451,123	$	447,080