Segment Information

6 Months Ended

Jun. 30, 2024

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 on June 1, 2022. 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,
	2024		2023		2024		2023
Revenues:
Self-Storage Operations	$	697,100	$	440,747	$	1,385,144	$	874,709
Tenant Reinsurance	83,705		48,433		165,052		96,137
Total segment revenues	$	780,805	$	489,180	$	1,550,196	$	970,846
Operating expenses:
Self-Storage Operations	$	196,902	$	114,637	$	401,420	$	231,803
Tenant Reinsurance	19,631		9,482		38,136		18,571
Total segment operating expenses	$	216,533	$	124,119	$	439,556	$	250,374
Net operating income:
Self-Storage Operations	$	500,198	$	326,110	$	983,724	$	642,906
Tenant Reinsurance	64,074		38,951		126,916		77,566
Total segment net operating income:	$	564,272	$	365,061	$	1,110,640	$	720,472
Other components of net income:
Management fees and other income	$	29,858	$	22,206	$	60,006	$	43,590
General and administrative expense	(39,901)		(34,842)		(83,623)		(69,605)
Depreciation and amortization expense	(194,809)		(79,086)		(391,775)		(157,576)
Interest expense	(137,133)		(86,372)		(270,020)		(166,471)
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes	(10,853)		—		(21,558)		—
Interest income	31,226		21,077		54,799		40,515
Equity in earnings and dividend income from unconsolidated real estate entities	17,255		13,254		32,262		23,559
Income tax expense	(9,844)		(5,986)		(16,586)		(10,294)
Net income	$	195,412	$	215,312	$	419,486	$	424,190