INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

3 Months Ended

Mar. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

2018 Joint Venture

As of March 31, 2020, the Company's unconsolidated real estate venture, formed in September 2018 with an affiliate of Heitman America Real Estate REIT LLC (the "2018 Joint Venture"), owned and operated a portfolio of 103 self storage properties containing approximately 7.8 million rentable square feet, configured in approximately 64,000 storage units and located across 17 states.

2016 Joint Venture

As of March 31, 2020, the Company's unconsolidated real estate venture, formed in September 2016 with a state pension fund advised by Heitman Capital Management LLC (the "2016 Joint Venture"), owned and operated a portfolio of 74 properties containing approximately 4.9 million rentable square feet, configured in approximately 40,000 storage units and located across 13 states.

The 2016 Joint Venture acquired two self storage properties for $12.1 million during the three months ended March 31, 2020. The 2016 Joint Venture financed these acquisitions with capital contributions from the 2016 Joint Venture members, of which the Company contributed $3.1 million for its 25% proportionate share.

The following table presents the combined condensed financial position of the Company's unconsolidated real estate ventures as of March 31, 2020 and December 31, 2019 (in thousands):


	March 31, 2020		December 31, 2019
ASSETS
Self storage properties, net	$	1,833,094	$	1,835,235
Other assets	24,202		22,413
Total assets	$	1,857,296	$	1,857,648
LIABILITIES AND EQUITY
Debt financing	$	989,382	$	989,182
Other liabilities	22,144		20,487
Equity	845,770		847,979
Total liabilities and equity	$	1,857,296	$	1,857,648

The following tables present the combined condensed operating information of the Company's unconsolidated real estate ventures for the three months ended March 31, 2020 and 2019 (in thousands):


	Three Months Ended March 31,
	2020		2019
Total revenue	$	40,238	$	39,795
Property operating expenses	13,178		12,544
Net operating income	27,060		27,251
Supervisory, administrative and other expenses	(2,669)		(2,653)
Depreciation and amortization	(15,146)		(21,826)
Interest expense	(10,264)		(10,020)
Loss on sale of self storage properties	—		(806)
Acquisition and other expenses	(399)		(408)
Net loss	$	(1,418)	$	(8,462)