Segment Information

6 Months Ended

Jun. 30, 2021

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,
	2021		2020		2021		2020
Revenues:
Self-Storage Operations	$	321,500	$	279,312	$	625,093	$	566,015
Tenant Reinsurance	42,334		35,078		81,953		68,691
Total segment revenues	$	363,834	$	314,390	$	707,046	$	634,706
Operating expenses:
Self-Storage Operations	$	89,155	$	89,040	$	181,522	$	179,337
Tenant Reinsurance	6,735		6,858		13,896		13,536
Total segment operating expenses	$	95,890	$	95,898	$	195,418	$	192,873
Net operating income:
Self-Storage Operations	$	232,345	$	190,272	$	443,571	$	386,678
Tenant Reinsurance	35,599		28,220		68,057		55,155
Total segment net operating income:	$	267,944	$	218,492	$	511,628	$	441,833
Other components of net income:
Management fees and other income	$	14,796	$	12,856	$	30,441	$	24,992
General and administrative expense	(26,341)		(25,337)		(49,881)		(48,348)
Depreciation and amortization expense	(59,570)		(56,018)		(118,169)		(111,293)
Gain on real estate transactions	—		—		63,883		—
Interest expense	(40,240)		(41,039)		(80,935)		(85,397)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	—		(1,233)		—		(2,442)
Interest income	12,838		1,669		25,142		3,343
Equity in earnings and dividend income from unconsolidated real estate entities	8,322		5,044		15,278		10,087
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partner's interest	6,251		—		6,251		—
Income tax expense	(5,421)		(3,177)		(9,558)		(5,356)
Net income	$	178,579	$	111,257	$	394,080	$	227,419