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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases LEASES
Lessee Accounting
The Company accounts for leases under ASC 842, “Leases.” Right-of-use assets associated with operating leases are included in real estate assets - operating lease right-of-use assets and operating lease liabilities are included in operating lease liabilities on the Company's consolidated balance sheets. Right-of-use assets associated with finance leases are included in real estate assets, net and finance lease liabilities are included in other liabilities on the Company's consolidated balance sheets.
During the year ended December 31, 2024, the Company recorded no new finance lease right-of-use assets and finance lease liabilities.
The Company is lessee under several types of lease agreements. Generally, these leases fall into the following categories:
•Leases of real estate at 77 stores classified as wholly-owned or in consolidated joint ventures. These leases generally have original lease terms between 10-99 years. Under these leases, the Company typically has the option to extend the lease term for additional terms of 5-35 years.
•Leases of its corporate offices and call center. These leases have original lease terms between five and 14 years, with no extension options. In 2021 the Company modified and extended the lease of its corporate offices to add additional space and extend the lease until 2034.
•Leases of 21 regional offices. These leases have original lease terms between two and five years. The Company has the option on certain of these leases to extend the lease term for up to three additional years.
•Leases of small district offices. These leases generally have terms of 12 months or less. The Company has made an election to account for these under the short-term lease exception outlined under ASC 842. Therefore, no lease assets or liabilities are recorded related to these leases.
The Company has included lease extension options in the lease term for calculations of its right-of-use assets and liabilities related to the real estate asset leases at its stores when it is reasonably certain that the Company plans to extend the lease terms as the options arise.
Several of the leases of real estate at the Company’s stores include escalation clauses based on an index or rate, such as the Consumer Price Index (CPI). The Company included these lease payments in its calculations of right-of-use assets and liabilities based on the prevailing index or rate as of the adoption date. The Company will recognize changes to these variable lease payments in earnings in the period of change.
One of the real estate leases includes variable lease payments that are based upon a percentage of gross revenues. Certain other leases include additional variable payments relating to a percentage of sales in excess of a specified amount, common area maintenance, property taxes, and similar items. These payments are variable lease payments that do not depend on an index or rate and are excluded from the measurement of the lease liabilities and right-of-use-assets for these leases. The Company will recognize costs from these variable lease payments in the period in which the obligation for those payments is incurred.
As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease
commencement date in determining the present value of lease payments. These discount rates vary depending on the term of the specific leases.
The following is information on our total lease costs as of the period indicated:
For the Year Ended December 31,
20242023
Finance lease cost:
     Amortization of finance lease right-of-use assets$4,018$3,961
     Interest expense related to finance lease liabilities4,7224,483
Operating lease cost42,56035,783
Variable lease cost16,00511,632
Short-term lease cost2424
          Total lease cost$67,329$55,883
Cash paid for amounts included in the measurement of lease liabilities
    Operating cash outflows for finance lease payments$4,440$4,483
    Operating cash outflows for operating lease payments29,70529,234
Total cash flows for lease liability measurement$34,145$33,717
Right-of-use assets obtained in exchange for new operating lease liabilities$486,266 $265 
Right-of-use assets obtained in exchange for new finance lease liabilities$— $— 
Weighted average remaining lease term - finance leases (years)55.0054.00
Weighted average remaining lease term - operating leases (years)24.0018.68
Weighted average discount rate - finance leases3.32 %3.31 %
Weighted average discount rate - operating leases5.73 %3.91 %
The following table presents information about the Company’s undiscounted cash flows on an annual basis for operating and finance leases, including a reconciliation of the undiscounted cash flows to the finance lease and operating lease liabilities recognized in the Company’s consolidated balance sheets:
Operating FinanceTotal
2025$47,392 $6,571 $53,963 
202648,322 6,715 55,037 
202748,724 6,842 55,566 
202849,186 6,955 56,141 
202949,863 7,094 56,957 
Thereafter1,129,756 346,684 1,476,440 
Total$1,373,243 $380,861 $1,754,104 
Present value adjustments (Less: future interest expense)(667,398)(239,078)(906,476)
Lease liabilities$705,845 $141,783 $847,628 
Lessor Accounting
The Company's property rental revenue is primarily related to rents received from tenants at its operating stores. The Company's leases with its self-storage tenants are generally on month-to-month terms, include automatic monthly renewals, allow flexibility to increase rental rates over time as market conditions permit, and provide for the collection of contingent fees such as late fees. These leases do not include any terms or conditions that allow the tenants to purchase the leased space. All self-storage leases for which the Company acts as lessor have been classified as operating leases. The real estate assets related to the Company's stores are included in real estate assets, net on the Company's consolidated balance sheets and are presented at historical cost less accumulated depreciation and impairment, if any. Rental income related to these operating leases is included in property rental revenue on the Company's consolidated statements of operations, and is recognized each month as part of the month-to-month terms at the rental rate in place during each month.
Leases LEASES
Lessee Accounting
The Company accounts for leases under ASC 842, “Leases.” Right-of-use assets associated with operating leases are included in real estate assets - operating lease right-of-use assets and operating lease liabilities are included in operating lease liabilities on the Company's consolidated balance sheets. Right-of-use assets associated with finance leases are included in real estate assets, net and finance lease liabilities are included in other liabilities on the Company's consolidated balance sheets.
During the year ended December 31, 2024, the Company recorded no new finance lease right-of-use assets and finance lease liabilities.
The Company is lessee under several types of lease agreements. Generally, these leases fall into the following categories:
•Leases of real estate at 77 stores classified as wholly-owned or in consolidated joint ventures. These leases generally have original lease terms between 10-99 years. Under these leases, the Company typically has the option to extend the lease term for additional terms of 5-35 years.
•Leases of its corporate offices and call center. These leases have original lease terms between five and 14 years, with no extension options. In 2021 the Company modified and extended the lease of its corporate offices to add additional space and extend the lease until 2034.
•Leases of 21 regional offices. These leases have original lease terms between two and five years. The Company has the option on certain of these leases to extend the lease term for up to three additional years.
•Leases of small district offices. These leases generally have terms of 12 months or less. The Company has made an election to account for these under the short-term lease exception outlined under ASC 842. Therefore, no lease assets or liabilities are recorded related to these leases.
The Company has included lease extension options in the lease term for calculations of its right-of-use assets and liabilities related to the real estate asset leases at its stores when it is reasonably certain that the Company plans to extend the lease terms as the options arise.
Several of the leases of real estate at the Company’s stores include escalation clauses based on an index or rate, such as the Consumer Price Index (CPI). The Company included these lease payments in its calculations of right-of-use assets and liabilities based on the prevailing index or rate as of the adoption date. The Company will recognize changes to these variable lease payments in earnings in the period of change.
One of the real estate leases includes variable lease payments that are based upon a percentage of gross revenues. Certain other leases include additional variable payments relating to a percentage of sales in excess of a specified amount, common area maintenance, property taxes, and similar items. These payments are variable lease payments that do not depend on an index or rate and are excluded from the measurement of the lease liabilities and right-of-use-assets for these leases. The Company will recognize costs from these variable lease payments in the period in which the obligation for those payments is incurred.
As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease
commencement date in determining the present value of lease payments. These discount rates vary depending on the term of the specific leases.
The following is information on our total lease costs as of the period indicated:
For the Year Ended December 31,
20242023
Finance lease cost:
     Amortization of finance lease right-of-use assets$4,018$3,961
     Interest expense related to finance lease liabilities4,7224,483
Operating lease cost42,56035,783
Variable lease cost16,00511,632
Short-term lease cost2424
          Total lease cost$67,329$55,883
Cash paid for amounts included in the measurement of lease liabilities
    Operating cash outflows for finance lease payments$4,440$4,483
    Operating cash outflows for operating lease payments29,70529,234
Total cash flows for lease liability measurement$34,145$33,717
Right-of-use assets obtained in exchange for new operating lease liabilities$486,266 $265 
Right-of-use assets obtained in exchange for new finance lease liabilities$— $— 
Weighted average remaining lease term - finance leases (years)55.0054.00
Weighted average remaining lease term - operating leases (years)24.0018.68
Weighted average discount rate - finance leases3.32 %3.31 %
Weighted average discount rate - operating leases5.73 %3.91 %
The following table presents information about the Company’s undiscounted cash flows on an annual basis for operating and finance leases, including a reconciliation of the undiscounted cash flows to the finance lease and operating lease liabilities recognized in the Company’s consolidated balance sheets:
Operating FinanceTotal
2025$47,392 $6,571 $53,963 
202648,322 6,715 55,037 
202748,724 6,842 55,566 
202849,186 6,955 56,141 
202949,863 7,094 56,957 
Thereafter1,129,756 346,684 1,476,440 
Total$1,373,243 $380,861 $1,754,104 
Present value adjustments (Less: future interest expense)(667,398)(239,078)(906,476)
Lease liabilities$705,845 $141,783 $847,628 
Lessor Accounting
The Company's property rental revenue is primarily related to rents received from tenants at its operating stores. The Company's leases with its self-storage tenants are generally on month-to-month terms, include automatic monthly renewals, allow flexibility to increase rental rates over time as market conditions permit, and provide for the collection of contingent fees such as late fees. These leases do not include any terms or conditions that allow the tenants to purchase the leased space. All self-storage leases for which the Company acts as lessor have been classified as operating leases. The real estate assets related to the Company's stores are included in real estate assets, net on the Company's consolidated balance sheets and are presented at historical cost less accumulated depreciation and impairment, if any. Rental income related to these operating leases is included in property rental revenue on the Company's consolidated statements of operations, and is recognized each month as part of the month-to-month terms at the rental rate in place during each month.
Leases LEASES
Lessee Accounting
The Company accounts for leases under ASC 842, “Leases.” Right-of-use assets associated with operating leases are included in real estate assets - operating lease right-of-use assets and operating lease liabilities are included in operating lease liabilities on the Company's consolidated balance sheets. Right-of-use assets associated with finance leases are included in real estate assets, net and finance lease liabilities are included in other liabilities on the Company's consolidated balance sheets.
During the year ended December 31, 2024, the Company recorded no new finance lease right-of-use assets and finance lease liabilities.
The Company is lessee under several types of lease agreements. Generally, these leases fall into the following categories:
•Leases of real estate at 77 stores classified as wholly-owned or in consolidated joint ventures. These leases generally have original lease terms between 10-99 years. Under these leases, the Company typically has the option to extend the lease term for additional terms of 5-35 years.
•Leases of its corporate offices and call center. These leases have original lease terms between five and 14 years, with no extension options. In 2021 the Company modified and extended the lease of its corporate offices to add additional space and extend the lease until 2034.
•Leases of 21 regional offices. These leases have original lease terms between two and five years. The Company has the option on certain of these leases to extend the lease term for up to three additional years.
•Leases of small district offices. These leases generally have terms of 12 months or less. The Company has made an election to account for these under the short-term lease exception outlined under ASC 842. Therefore, no lease assets or liabilities are recorded related to these leases.
The Company has included lease extension options in the lease term for calculations of its right-of-use assets and liabilities related to the real estate asset leases at its stores when it is reasonably certain that the Company plans to extend the lease terms as the options arise.
Several of the leases of real estate at the Company’s stores include escalation clauses based on an index or rate, such as the Consumer Price Index (CPI). The Company included these lease payments in its calculations of right-of-use assets and liabilities based on the prevailing index or rate as of the adoption date. The Company will recognize changes to these variable lease payments in earnings in the period of change.
One of the real estate leases includes variable lease payments that are based upon a percentage of gross revenues. Certain other leases include additional variable payments relating to a percentage of sales in excess of a specified amount, common area maintenance, property taxes, and similar items. These payments are variable lease payments that do not depend on an index or rate and are excluded from the measurement of the lease liabilities and right-of-use-assets for these leases. The Company will recognize costs from these variable lease payments in the period in which the obligation for those payments is incurred.
As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease
commencement date in determining the present value of lease payments. These discount rates vary depending on the term of the specific leases.
The following is information on our total lease costs as of the period indicated:
For the Year Ended December 31,
20242023
Finance lease cost:
     Amortization of finance lease right-of-use assets$4,018$3,961
     Interest expense related to finance lease liabilities4,7224,483
Operating lease cost42,56035,783
Variable lease cost16,00511,632
Short-term lease cost2424
          Total lease cost$67,329$55,883
Cash paid for amounts included in the measurement of lease liabilities
    Operating cash outflows for finance lease payments$4,440$4,483
    Operating cash outflows for operating lease payments29,70529,234
Total cash flows for lease liability measurement$34,145$33,717
Right-of-use assets obtained in exchange for new operating lease liabilities$486,266 $265 
Right-of-use assets obtained in exchange for new finance lease liabilities$— $— 
Weighted average remaining lease term - finance leases (years)55.0054.00
Weighted average remaining lease term - operating leases (years)24.0018.68
Weighted average discount rate - finance leases3.32 %3.31 %
Weighted average discount rate - operating leases5.73 %3.91 %
The following table presents information about the Company’s undiscounted cash flows on an annual basis for operating and finance leases, including a reconciliation of the undiscounted cash flows to the finance lease and operating lease liabilities recognized in the Company’s consolidated balance sheets:
Operating FinanceTotal
2025$47,392 $6,571 $53,963 
202648,322 6,715 55,037 
202748,724 6,842 55,566 
202849,186 6,955 56,141 
202949,863 7,094 56,957 
Thereafter1,129,756 346,684 1,476,440 
Total$1,373,243 $380,861 $1,754,104 
Present value adjustments (Less: future interest expense)(667,398)(239,078)(906,476)
Lease liabilities$705,845 $141,783 $847,628 
Lessor Accounting
The Company's property rental revenue is primarily related to rents received from tenants at its operating stores. The Company's leases with its self-storage tenants are generally on month-to-month terms, include automatic monthly renewals, allow flexibility to increase rental rates over time as market conditions permit, and provide for the collection of contingent fees such as late fees. These leases do not include any terms or conditions that allow the tenants to purchase the leased space. All self-storage leases for which the Company acts as lessor have been classified as operating leases. The real estate assets related to the Company's stores are included in real estate assets, net on the Company's consolidated balance sheets and are presented at historical cost less accumulated depreciation and impairment, if any. Rental income related to these operating leases is included in property rental revenue on the Company's consolidated statements of operations, and is recognized each month as part of the month-to-month terms at the rental rate in place during each month.