Segment Information

3 Months Ended

Mar. 31, 2023

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 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 self-storage operations activities include rental operations of wholly-owned stores and self-storage units acquired in the Bargold transaction. 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,
	2023		2022
Revenues:
Self-Storage Operations	$	433,962	$	379,808
Tenant Reinsurance	47,704		43,797
Total segment revenues	$	481,666	$	423,605
Operating expenses:
Self-Storage Operations	$	117,166	$	103,542
Tenant Reinsurance	9,089		7,042
Total segment operating expenses	$	126,255	$	110,584
Net operating income:
Self-Storage Operations	$	316,796	$	276,266
Tenant Reinsurance	38,615		36,755
Total segment net operating income:	$	355,411	$	313,021
Other components of net income:
Management fees and other income	$	21,384	$	19,957
General and administrative expense	(34,763)		(29,762)
Depreciation and amortization expense	(78,490)		(67,906)
Interest expense	(80,099)		(42,538)
Interest income	19,438		18,989
Equity in earnings and dividend income from unconsolidated real estate entities	10,305		9,097
Income tax expense	(4,308)		(3,141)
Net income	$	208,878	$	217,717