Segment Information

12 Months Ended

Dec. 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. The Company’s segments are comprised of two reportable segments: (1) self-storage operations and (2) tenant reinsurance. NOI for self-storage operations represents total property revenue less direct property operating expenses. NOI for tenant reinsurance represents tenant reinsurance revenues less tenant reinsurance expense.

The self-storage operations activities include rental operations of wholly-owned stores and Bargold. 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 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,
	2022		2021		2020
Revenues:
Self-Storage Operations	$	1,654,735	$	1,340,990	$	1,157,522
Tenant Reinsurance	185,531		170,108		146,561
Total segment revenues	$	1,840,266	$	1,511,098	$	1,304,083
Operating expenses:
Self-Storage Operations	$	435,342	$	368,608	$	360,615
Tenant Reinsurance	33,560		29,488		26,494
Total segment operating expenses	$	468,902	$	398,096	$	387,109
Net operating income:
Self-Storage Operations	$	1,219,393	$	972,382	$	796,907
Tenant Reinsurance	151,971		140,620		120,067
Total segment net operating income:	$	1,371,364	$	1,113,002	$	916,974
Total segment net operating income	$	1,371,364	$	1,113,002	$	916,974
Other components of net income:
Property management fees and other income	83,904		66,264		52,129
Transaction related costs	(1,548)		—		—
General and administrative expense	(129,251)		(102,194)		(96,594)
Depreciation and amortization expense	(288,316)		(241,879)		(224,444)
Gain on real estate transactions	14,249		140,760		18,075
Interest expense	(219,171)		(166,183)		(168,626)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	—		—		(3,675)
Interest income	69,422		49,703		15,192
Equity in earnings and dividend income from unconsolidated real estate entities	41,428		32,358		22,361
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets	—		6,251		—
Income tax expense	(20,925)		(20,324)		(13,810)
Net income	$	921,156	$	877,758	$	517,582