Segment Information

6 Months Ended

Jun. 30, 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 June 30,				For the Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Self-Storage Operations	$	408,044	$	321,500	$	787,852	$	625,093
Tenant Reinsurance	46,427		42,334		90,224		81,953
Total segment revenues	$	454,471	$	363,834	$	878,076	$	707,046
Operating expenses:
Self-Storage Operations	$	104,252	$	89,155	$	207,794	$	181,522
Tenant Reinsurance	7,537		6,735		14,579		13,896
Total segment operating expenses	$	111,789	$	95,890	$	222,373	$	195,418
Net operating income:
Self-Storage Operations	$	303,792	$	232,345	$	580,058	$	443,571
Tenant Reinsurance	38,890		35,599		75,645		68,057
Total segment net operating income:	$	342,682	$	267,944	$	655,703	$	511,628
Other components of net income:
Management fees and other income	$	20,517	$	14,796	$	40,474	$	30,441
Transaction related costs	(1,465)		—		(1,465)		—
General and administrative expense	(31,251)		(26,341)		(61,013)		(49,881)
Depreciation and amortization expense	(69,067)		(59,570)		(136,973)		(118,169)
Gain on real estate transactions	14,249		—		14,249		63,883
Interest expense	(47,466)		(40,240)		(90,004)		(80,935)
Interest income	15,060		12,838		34,049		25,142
Equity in earnings and dividend income from unconsolidated real estate entities	10,190		8,322		19,287		15,278
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	(5,615)		(5,421)		(8,756)		(9,558)
Net income	$	247,834	$	178,579	$	465,551	$	394,080