Segment Information

9 Months Ended

Sep. 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 September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues:
Self-Storage Operations	$	351,355	$	290,423	$	976,448	$	856,438
Tenant Reinsurance	44,258		39,294		126,211		107,985
Total segment revenues	$	395,613	$	329,717	$	1,102,659	$	964,423
Operating expenses:
Self-Storage Operations	$	92,794	$	92,322	$	274,316	$	271,659
Tenant Reinsurance	7,509		7,189		21,405		20,725
Total segment operating expenses	$	100,303	$	99,511	$	295,721	$	292,384
Net operating income:
Self-Storage Operations	$	258,561	$	198,101	$	702,132	$	584,779
Tenant Reinsurance	36,749		32,105		104,806		87,260
Total segment net operating income:	$	295,310	$	230,206	$	806,938	$	672,039
Other components of net income:
Management fees and other income	$	16,879	$	13,307	$	47,320	$	38,299
General and administrative expense	(24,395)		(23,894)		(74,276)		(72,242)
Depreciation and amortization expense	(61,516)		(56,412)		(179,685)		(167,705)
Gain on real estate transactions	—		—		63,883		—
Interest expense	(39,670)		(42,213)		(120,605)		(127,610)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	—		(1,233)		—		(3,675)
Interest income	11,729		3,145		36,871		6,488
Equity in earnings and dividend income from unconsolidated real estate entities	8,255		5,605		23,533		15,692
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		—
Income tax expense	(6,772)		(4,657)		(16,330)		(10,013)
Net income	$	199,820	$	123,854	$	593,900	$	351,273