SELF-STORAGE INVESTMENT PORTFOLIO (Tables)

6 Months Ended

Jun. 30, 2018

SELF-STORAGE INVESTMENT PORTFOLIO [Abstract]

Schedule of Investments

As of June 30, 2018, the aggregate committed principal amount of the Company’s development property investments, bridge loan investments and operating property loans was approximately $673.1 million and outstanding principal was $365.5 million, as described in more detail in the table below:

	Metropolitan					Remaining
	Statistical Area	Total Investment		Funded		Unfunded
Closing Date	("MSA")	Commitment		Investment (1)		Commitment		Fair Value
Development property investments (includes a profits interest):
6/19/2015	Tampa 1 (2)	$	5,369	$	5,285	$	84	$	5,931
6/29/2015	Charlotte 1 (2)		7,624		7,357		267		9,556
7/2/2015	Milwaukee (2)		7,650		7,641		9		9,241
7/31/2015	New Haven (2)		6,930		6,600		330		8,342
8/14/2015	Raleigh (2)		8,792		8,176		616		8,442
10/27/2015	Austin (2)		8,658		7,551		1,107		8,600
9/20/2016	Charlotte 2 (2)		12,888		9,497		3,391		10,660
11/17/2016	Jacksonville 2 (2)		7,530		6,890		640		8,512
1/4/2017	New York City 1 (2)		16,117		16,056		61		20,934
1/18/2017	Atlanta 3		14,115		4,212		9,903		4,028
1/31/2017	Atlanta 4 (2)		13,678		10,206		3,472		11,995
2/24/2017	Orlando 3 (2)		8,056		5,961		2,095		7,004
2/24/2017	New Orleans (3)		12,549		4,411		8,138		4,454
2/27/2017	Atlanta 5(3)		17,492		8,262		9,230		8,179
3/1/2017	Fort Lauderdale(3)		9,952		3,934		6,018		4,045
3/1/2017	Houston (3)		13,630		6,079		7,551		6,388
4/14/2017	Louisville 1 (3)		8,523		5,255		3,268		6,049
4/20/2017	Denver 1 (3)		9,806		3,706		6,100		3,587
4/20/2017	Denver 2 (2)		11,164		8,173		2,991		9,718
5/2/2017	Atlanta 6 (3)		12,543		8,658		3,885		9,863
5/2/2017	Tampa 2		8,091		2,070		6,021		1,991
5/19/2017	Tampa 3 (3)		9,224		4,379		4,845		4,787
6/12/2017	Tampa 4 (3)		10,266		6,127		4,139		7,187
6/19/2017	Baltimore(3)(4)		10,775		5,584		5,191		5,667
6/28/2017	Knoxville(3)		9,115		4,367		4,748		4,605
6/29/2017	Boston 1 (2)		14,103		10,801		3,302		11,786
6/30/2017	New York City 2 (4)		26,482		20,356		6,126		19,759
7/27/2017	Jacksonville 3 (3)		8,096		4,411		3,685		4,993
8/30/2017	Orlando 4		9,037		2,661		6,376		2,561
9/14/2017	Los Angeles 1		28,750		7,923		20,827		7,672
9/14/2017	Miami 1		14,657		6,942		7,715		6,785
9/28/2017	Louisville 2 (3)		9,940		5,316		4,624		5,861
10/12/2017	Miami 2 (4)		9,459		1,062		8,397		818
10/30/2017	New York City 3 (4)		14,701		3,712		10,989		3,384
11/16/2017	Miami 3 (4)		20,168		4,309		15,859		3,740
11/21/2017	Minneapolis 1		12,674		285		12,389		156
12/1/2017	Boston 2		8,771		2,329		6,442		2,235
12/15/2017	New York City 4		10,591		1,283		9,308		1,168
12/27/2017	Boston 3		10,174		2,475		7,699		2,306
12/28/2017	New York City 5		16,073		5,101		10,972		4,945
2/8/2018	Minneapolis 2		10,543		3,944		6,599		3,878
3/30/2018	Philadelphia (4)		14,338		3,558		10,780		3,274
4/6/2018	Minneapolis 3		12,883		2,613		10,270		2,489
5/1/2018	Miami 9 (4)		12,421		2,448		9,973		2,219
5/15/2018	Atlanta 7		9,418		857		8,561		772
5/23/2018	Kansas City		9,968		1,413		8,555		1,324
6/7/2018	Orlando 5		12,969		-		12,969		-
6/12/2018	Los Angeles 2 (5)		9,298		4,424		4,874		4,500
		$	566,051	$	264,660	$	301,391	$	286,390
Construction loans:
12/23/2015	Miami		17,733		15,966		1,767		15,855
		$	17,733	$	15,966	$	1,767	$	15,855
Total development property investments		$	583,784	$	280,626	$	303,158	$	302,245
Bridge loan investments (includes a profits interest):
3/2/2018	Miami 4 (2)		20,201		19,627		574		20,997
3/2/2018	Miami 5 (2)(4)		17,738		16,108		1,630		14,009
3/2/2018	Miami 6 (2)		13,370		13,370		-		17,129
3/2/2018	Miami 7 (2)(4)		18,462		16,755		1,707		14,892
3/2/2018	Miami 8 (2)		13,553		13,013		540		12,554
Total bridge loan investments		$	83,324	$	78,873	$	4,451	$	79,581
Operating property loans:
7/7/2015	Newark		3,480		3,480		-		3,402
12/22/2015	Chicago		2,502		2,500		2		2,460
Total operating property loans		$	5,982	$	5,980	$	2	$	5,862
Total investments reported at fair value		$	673,090	$	365,479	$	307,611	$	387,688

(1)	Represents principal balance of loan gross of origination fees. The principal balance includes interest accrued on the investment.
(2)	Construction at the facility was substantially complete and/or certificate of occupancy had been received as of June 30, 2018. See Note 4, Fair Value of Financial Instruments, for information regarding recognition of entrepreneurial profit.
(3)	Facility had achieved at least 40% construction completion but construction was not considered substantially complete as of June 30, 2018. See Note 4, Fair Value of Financial Instruments, for information regarding recognition of entrepreneurial profit.
(4)	These investments contain a higher loan-to-cost ratio and a higher interest rate, some of which interest is payment-in-kind (“PIK”) interest. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment.
(5)	This investment has a total project cost of $29.5 million of which a traditional bank will provide 65% of the total cost through a construction loan. The Company will fund 90% of the remaining 35% of costs required to complete the project through a preferred equity investment, pursuant to which the Company will receive a preferred return on its investment of 6.9% per annum that will be paid out of future cash flows of the underlying facility, a 1% transaction fee and a 49.9% Profits Interest.

As of December 31, 2017, the aggregate committed principal amount of the Company’s development property investments and operating property loans was approximately $523.8 million and outstanding principal was $213.1 million, as described in more detail in the table below:

	Metropolitan					Remaining
	Statistical Area	Total Investment		Funded		Unfunded
Closing Date	("MSA")	Commitment		Investment (1)		Commitment		Fair Value
Development property investments (includes a profits interest):
6/10/2015	Atlanta 1 (2)(5)	$	8,132	$	8,086	$	46	$	10,741
6/19/2015	Tampa 1 (2)		5,369		5,285		84		6,012
6/26/2015	Atlanta 2 (2)(5)		6,050		5,769		281		8,631
6/29/2015	Charlotte 1 (2)		7,624		7,251		373		10,363
7/2/2015	Milwaukee (2)		7,650		7,512		138		8,994
7/31/2015	New Haven (2)		6,930		6,524		406		8,231
8/10/2015	Pittsburgh (2)(5)		5,266		4,798		468		6,774
8/14/2015	Raleigh (3)		8,792		5,550		3,242		5,889
9/30/2015	Jacksonville 1 (2)(5)		6,445		5,988		457		8,913
10/27/2015	Austin (2)		8,658		7,297		1,361		8,782
9/20/2016	Charlotte 2 (3)		12,888		5,453		7,435		5,686
11/17/2016	Jacksonville 2 (3)		7,530		4,971		2,559		5,818
1/4/2017	New York City 1 (2)		16,117		14,914		1,203		18,892
1/18/2017	Atlanta 3		14,115		2,393		11,722		2,236
1/31/2017	Atlanta 4 (3)		13,678		7,040		6,638		7,147
2/24/2017	Orlando 3 (3)		8,056		3,144		4,912		3,335
2/24/2017	New Orleans		12,549		677		11,872		553
2/27/2017	Atlanta 5		17,492		4,971		12,521		4,739
3/1/2017	Fort Lauderdale		9,952		1,128		8,824		1,043
3/1/2017	Houston		13,630		3,633		9,997		3,547
4/14/2017	Louisville 1 (3)		8,523		2,932		5,591		3,083
4/20/2017	Denver 1		9,806		1,940		7,866		1,849
4/20/2017	Denver 2 (3)		11,164		5,442		5,722		5,849
5/2/2017	Atlanta 6		12,543		4,344		8,199		4,262
5/2/2017	Tampa 2		8,091		1,086		7,005		1,010
5/19/2017	Tampa 3		9,224		1,422		7,802		1,335
6/12/2017	Tampa 4		10,266		1,847		8,419		1,752
6/19/2017	Baltimore (4)		10,775		3,315		7,460		3,115
6/28/2017	Knoxville		9,115		1,351		7,764		1,265
6/29/2017	Boston 1 (3)		14,103		4,978		9,125		4,914
6/30/2017	New York City 2 (4)		26,482		18,042		8,440		17,576
7/27/2017	Jacksonville 3		8,096		1,134		6,962		1,053
8/30/2017	Orlando 4		9,037		2,059		6,978		1,960
9/14/2017	Los Angeles		28,750		7,533		21,217		7,398
9/14/2017	Miami 1		14,657		5,862		8,795		5,725
9/28/2017	Louisville 2		9,940		1,864		8,076		1,762
10/12/2017	Miami 2 (4)		9,459		1,014		8,445		820
10/30/2017	New York City 3 (4)		14,701		2,595		12,106		2,294
11/16/2017	Miami 3 (4)		20,168		3,508		16,660		3,099
11/21/2017	Minneapolis 1		12,674		1,150		11,524		1,023
12/1/2017	Boston 2		8,771		1,306		7,465		1,220
12/15/2017	New York City 4		10,591		927		9,664		823
12/27/2017	Boston 3		10,174		2,259		7,915		2,169
12/28/2017	New York City 5		16,073		4,303		11,770		4,178
		$	500,106	$	194,597	$	305,509	$	215,860
Construction loans:
12/23/2015	Miami		17,733		12,492		5,241		12,373
		$	17,733	$	12,492	$	5,241	$	12,373
Total development property investments		$	517,839	$	207,089	$	310,750	$	228,233
Operating property loans:
7/7/2015	Newark		3,480		3,480		-		3,447
12/22/2015	Chicago		2,502		2,500		2		2,491
Total operating property loans		$	5,982	$	5,980	$	2	$	5,938
Total investments reported at fair value		$	523,821	$	213,069	$	310,752	$	234,171

(1)	Represents principal balance of loan gross of origination fees. The principal balance includes interest accrued on the investment.
(2)	Construction at the facility was substantially complete and/or certificate of occupancy had been received as of December 31, 2017. See Note 4, Fair Value of Financial Instruments, for information regarding recognition of entrepreneurial profit.
(3)	Facility had achieved at least 40% construction completion but construction was not considered substantially complete as of December 31, 2017. See Note 4, Fair Value of Financial Instruments, for information regarding recognition of entrepreneurial profit.
(4)	These investments contain a higher loan-to-cost ratio and a higher interest rate, some of which interest is payment-in-kind (“PIK”) interest. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment.
(5)	During the first quarter of 2018, we purchased our partner’s 50.1% Profits Interest in these investments.

Schedule of Changes in Fair Value of Investments

The following table provides a reconciliation of the funded principal to the fair market value of investments at June 30, 2018:

Funded principal	$	365,479
Adjustments:
Unamortized origination fees		(6,389)
Change in fair value of investments		28,682
Other		(84)
Fair value of investments	$	387,688

The following table provides a reconciliation of the funded principal to the fair market value of investments at December 31, 2017:

Funded principal	$	213,069
Adjustments:
Unamortized origination fees		(5,081)
Change in fair value of investments		26,267
Other		(84)
Fair value of investments	$	234,171

Schedule of Cost Basis of Real Estate Investments

The following table shows the Company’s basis as of the date of acquisition for the facilities acquired during the six months ended June 30, 2018:

		Jacksonville 1		Atlanta 1		Atlanta 2		Pittsburgh		Totals
Funded principal balance, net of unamortized origination fees	$	5,966	$	8,084	$	5,766	$	4,938	$	24,754
Unrealized appreciation on investments		2,947		2,704		2,900		1,976		10,527
Cash consideration, inclusive of transaction costs (1)		2,625		2,342		2,960		1,183		9,110
Assumed liabilities (2)		-		-		-		1,258		1,258
Net property working capital acquired		95		41		40		40		216
Total cost basis	$	11,633	$	13,171	$	11,666	$	9,395	$	45,865

(1)	Includes $23,000 of transaction costs incurred but not yet paid as of June 30, 2018.
(2)	Included in accounts payable, accrued expenses and other liabilities in the Consolidated Balance Sheet as of June 30, 2018.

The following table shows the Company’s basis as of the date of acquisition for the facility acquired during the year ended December 31, 2017:

Funded principal balance, net of unamortized origination fees	$	9,139
Unrealized appreciation on investments		3,780
Cash consideration, inclusive of transaction costs		2,856
Net property working capital acquired		52
Total cost basis	$	15,827

Real Estate Investment, Impact in Consolidated Balance Sheet , Disclosure

The following table shows the impact of these real estate investments on the Company’s accompanying Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017:

	June 30, 2018		December 31, 2017
Land	$	8,183	$	1,505
Building and improvements		51,285		13,720
In-place leases		2,223		602
Property equipment		5		-
Construction-in-progress		200		-
Accumulated depreciation and amortization		(2,061)		(472)
Self-storage real estate owned	$	59,835	$	15,355

Real Estate Investment, Impact in Consolidated Statement of Operations, Disclosure

The following tables show the impact of these real estate investments on the Company’s accompanying Consolidated Statement of Operations for the three and six months ended June 30, 2018 and 2017:

	Three months ended		Three months ended
	June 30, 2018		June 30, 2017
Rental and other property-related income from real estate owned	$	805	$	105
Property operating expenses of real estate owned		(420)		(43)
Depreciation and amortization expense		(887)		(38)
Total expenses of real estate owned	$	(1,307)	$	(81)

	Six months ended		Six months ended
	June 30, 2018		June 30, 2017
Rental and other property-related income from real estate owned	$	1,428	$	168
Property operating expenses of real estate owned		(731)		(74)
Depreciation and amortization expense		(1,589)		(62)
Total expenses of real estate owned	$	(2,320)	$	(136)