Segment Information

6 Months Ended

Jun. 30, 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 June 30,				For the Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Self-Storage Operations	$	440,747	$	408,044	$	874,709	$	787,852
Tenant Reinsurance	48,433		46,427		96,137		90,224
Total segment revenues	$	489,180	$	454,471	$	970,846	$	878,076
Operating expenses:
Self-Storage Operations	$	114,637	$	104,252	$	231,803	$	207,794
Tenant Reinsurance	9,482		7,537		18,571		14,579
Total segment operating expenses	$	124,119	$	111,789	$	250,374	$	222,373
Net operating income:
Self-Storage Operations	$	326,110	$	303,792	$	642,906	$	580,058
Tenant Reinsurance	38,951		38,890		77,566		75,645
Total segment net operating income:	$	365,061	$	342,682	$	720,472	$	655,703
Other components of net income:
Management fees and other income	$	22,206	$	20,517	$	43,590	$	40,474
Transaction related costs	—		(1,465)		—		(1,465)
General and administrative expense	(34,842)		(31,251)		(69,605)		(61,013)
Depreciation and amortization expense	(79,086)		(69,067)		(157,576)		(136,973)
Gain on real estate transactions	—		14,249		—		14,249
Interest expense	(86,372)		(47,466)		(166,471)		(90,004)
Interest income	21,077		15,060		40,515		34,049
Equity in earnings and dividend income from unconsolidated real estate entities	13,254		10,190		23,559		19,287
Income tax expense	(5,986)		(5,615)		(10,294)		(8,756)
Net income	$	215,312	$	247,834	$	424,190	$	465,551