Segment Information

3 Months Ended

Mar. 31, 2022

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 March 31,
	2022		2021
Revenues:
Self-Storage Operations	$	379,808	$	303,593
Tenant Reinsurance	43,797		39,619
Total segment revenues	$	423,605	$	343,212
Operating expenses:
Self-Storage Operations	$	103,542	$	92,367
Tenant Reinsurance	7,042		7,161
Total segment operating expenses	$	110,584	$	99,528
Net operating income:
Self-Storage Operations	$	276,266	$	211,226
Tenant Reinsurance	36,755		32,458
Total segment net operating income:	$	313,021	$	243,684
Other components of net income:
Management fees and other income	$	19,957	$	15,645
General and administrative expense	(29,762)		(23,540)
Depreciation and amortization expense	(67,906)		(58,599)
Gain on real estate transactions	—		63,883
Interest expense	(42,538)		(40,695)
Interest income	18,989		12,304
Equity in earnings and dividend income from unconsolidated real estate entities	9,097		6,956
Income tax expense	(3,141)		(4,137)
Net income	$	217,717	$	215,501