Segment Information

12 Months Ended

Dec. 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 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,
	2023		2022		2021
Revenues:
Self-Storage Operations	$	2,222,578	$	1,654,735	$	1,340,990
Tenant Reinsurance	235,680		185,531		170,108
Total segment revenues	$	2,458,258	$	1,840,266	$	1,511,098
Operating expenses:
Self-Storage Operations	$	612,036	$	435,342	$	368,608
Tenant Reinsurance	58,874		33,560		29,488
Total segment operating expenses	$	670,910	$	468,902	$	398,096
Net operating income:
Self-Storage Operations	$	1,610,542	$	1,219,393	$	972,382
Tenant Reinsurance	176,806		151,971		140,620
Total segment net operating income:	$	1,787,348	$	1,371,364	$	1,113,002
Total segment net operating income	$	1,787,348	$	1,371,364	$	1,113,002
Other components of net income:
Property management fees and other income	101,986		83,904		66,264
Transaction costs	—		(1,548)		—
Life Storage Merger transition costs	(66,732)		—		—
General and administrative expense	(146,408)		(129,251)		(102,194)
Depreciation and amortization expense	(506,053)		(288,316)		(241,879)
Gain on real estate transactions	—		14,249		140,760
Interest expense	(419,035)		(219,171)		(166,183)
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes	(18,786)		—		—
Interest income	84,857		69,422		49,703
Equity in earnings and dividend income from unconsolidated real estate entities	54,835		41,428		32,358
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets	—		—		6,251
Income tax expense	(21,559)		(20,925)		(20,324)
Net income	$	850,453	$	921,156	$	877,758