Segment Information

12 Months Ended

Dec. 31, 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 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,
	2021		2020		2019
Revenues:
Self-Storage Operations	$	1,340,990	$	1,157,522	$	1,130,177
Tenant Reinsurance	170,108		146,561		128,387
Total segment revenues	$	1,511,098	$	1,304,083	$	1,258,564
Operating expenses:
Self-Storage Operations	$	368,608	$	360,615	$	336,050
Tenant Reinsurance	29,488		26,494		29,376
Total segment operating expenses	$	398,096	$	387,109	$	365,426
Net operating income:
Self-Storage Operations	$	972,382	$	796,907	$	794,127
Tenant Reinsurance	140,620		120,067		99,011
Total segment net operating income:	$	1,113,002	$	916,974	$	893,138
Total segment net operating income	$	1,113,002	$	916,974	$	893,138
Other components of net income:
Property management fees and other income	66,264		52,129		49,890
General and administrative expense	(102,194)		(96,594)		(89,418)
Depreciation and amortization expense	(241,879)		(224,444)		(219,857)
Gain on real estate transactions	140,760		18,075		1,205
Interest expense	(166,183)		(168,626)		(186,526)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	—		(3,675)		(4,742)
Interest income	49,703		15,192		7,467
Equity in earnings and dividend income from unconsolidated real estate entities	32,358		22,361		11,274
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	(20,324)		(13,810)		(11,308)
Net income	$	877,758	$	517,582	$	451,123