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Investments in Unconsolidated Real Estate Entities
 6 Months Ended
Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract]  
Investments in Unconsolidated Real Estate Entities INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES
Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's interest in preferred stock of SmartStop Self Storage REIT, Inc. (“SmartStop”) and Strategic Storage Trust VI, Inc. (“Strategic Storage”), an affiliate of SmartStop, and the Company's noncontrolling interest in real estate joint ventures. The Company accounts for its investments in SmartStop and Strategic Storage preferred stock, which do not have a readily determinable fair value, at the transaction price less impairment, if any. The Company accounts for its investments in joint ventures using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for cash contributions, distributions and net equity in income or loss, which is allocated in accordance with the provisions of the applicable partnership or joint venture agreement.
In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash or profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash or profits, as applicable, than its equity interest.
The Company separately reports investments with net equity less than zero in cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company's investment in and share of income from these joint ventures. This is generally the result of financing distributions, capital events or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization while distributions do not.
Net investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures consist of the following:
 Number of StoresEquity Ownership %
Excess Profit % (1)
June 30,December 31,
 20242023
PRISA Self Storage LLC 854%4%$9,209 $9,435 
HF1 Sovran HHF Storage Holdings LLC 3720%20%103,775 105,339 
Storage Portfolio II JV LLC 3610%30%(8,846)(8,314)
Storage Portfolio IV JV LLC3210%30%47,685 48,184 
Storage Portfolio I LLC 2434%49%(43,060)(42,487)
PR II EXR JV LLC2325%25%106,930 108,160 
HF2 Sovran HHF Storage Holdings II LLC 2215%15%41,376 41,613 
HF5 Life Storage-HIERS Storage LLC 1720%20%25,586 26,051 
HF6 191 V Life Storage Holdings LLC 1720%20%11,566 12,702 
ESS-CA TIVS JV LP1655%
55%-65%
28,302 29,128 
VRS Self Storage, LLC 1645%54%(17,069)(16,386)
HF10 Life Storage HHF Wasatch Holdings LLC 1620%20%19,849 20,019 
Other unconsolidated real estate ventures131
10%-50%
10%-50%
316,719 317,104 
SmartStop Self Storage REIT, Inc. Preferred Stock (2)
n/an/an/a200,000 200,000 
Strategic Storage Trust VI, Inc. Preferred Stock (3)
n/an/an/a150,000 150,000 
Net Investments in and Cash distributions in unconsolidated real estate entities472$992,022 $1,000,548 
(1)    Includes pro-rata equity ownership share and promoted interest.
(2)    In October 2019, the Company invested $200,000 in shares of convertible preferred stock of SmartStop with a dividend rate of 6.25% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations.
(3)    In May 2023, the Company invested $150,000 in shares of convertible preferred stock of Strategic Storage with a dividend rate of 8.35% per annum, subject to increase after five years. The preferred shares are generally not redeemable for three years, except in the case of a change of control or initial listing of Strategic Storage. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations.