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Investment in Joint Ventures (Tables)
 6 Months Ended
Jun. 30, 2018
Equity Method Investments And Joint Ventures [Abstract]  
Summary of Company's Unconsolidated Joint Ventures

A summary of the Company’s unconsolidated joint ventures is as follows:

 

Venture

 

Number of

Properties at

June 30, 2018

 

Company common

ownership interest at June 30, 2018

 

 

Carrying value

of investment

at June 30, 2018

 

Carrying value

of investment

at Dec. 31, 2017

Sovran HHF Storage Holdings LLC (“Sovran HHF”)1

 

57

 

20%

 

 

$84.0  million

 

$85.1  million

Sovran HHF Storage Holdings II LLC (“Sovran

   HHF II”)2

 

30

 

15%

 

 

$13.2  million

 

$13.3  million

191 III Holdings LLC (“191 III”)3

 

6

 

20%

 

 

$9.3    million

 

$9.4    million

Life Storage-SERS Storage LLC (“SERS”)4

 

3

 

20%

 

 

$3.6    million

 

$3.6    million

Iskalo Office Holdings, LLC (“Iskalo”)5

 

N/A

 

49%

 

 

($0.4    million)

 

($0.4    million)

Urban Box Coralway Storage, LLC (“Urban Box”)6

 

1

 

85%

 

 

$4.4    million

 

$4.1    million

SNL/Orix 1200 McDonald Ave., LLC (“McDonald”)7

 

1

 

5%

 

 

$2.7    million

 

$2.7    million

SNL Orix Merrick, LLC (“Merrick”)8

 

1

 

5%

 

 

$2.4    million

 

$2.5    million

Review Avenue Partners, LLC (“RAP”)9

 

1

 

40%

 

 

$11.3  million

 

$11.5  million

N 32nd Street Self Storage, LLC (“N32”)10

 

1

 

46%

 

 

$1.3    million

 

$1.3    million

NYX Don Mills Storage LP ("Don Mills")11

 

1

 

17%

 

 

$1.0    million

 

N/A

 

1

Sovran HHF owns self-storage facilities in Arizona (11), Colorado (4), Florida (3), Georgia (1), Kentucky (2), Nevada (5), New Jersey (2), Ohio (6), Pennsylvania (1), Tennessee (2) and Texas (20). In June 2017, Sovran HHF acquired 18 self-storage facilities for $330 million in Arizona, Nevada and Tennessee. In connection with this acquisition, Sovran HHF entered into $135 million of mortgage debt which is secured by 16 of the self-storage facilities acquired. During the six months ended June 30, 2018, the Company contributed $0.2 million as its share of capital to the joint venture. During the six months ended June 30, 2018, the Company received $2.7 million of distributions from Sovran HHF. As of June 30, 2018, the carrying value of the Company’s investment in Sovran HHF exceeds its share of the underlying equity in net assets of Sovran HHF by approximately $1.7 million as a result of the capitalization of certain acquisition related costs in 2008. This difference is included in the carrying value of the investment.

2

Sovran HHF II owns self-storage facilities in New Jersey (17), Pennsylvania (3), and Texas (10). During the six months ended June 30, 2018, the Company received $1.0 million of distributions from Sovran HHF II.

3

191 III owns six self-storage facilities in California. During 2017, 191 III acquired these six self-storage facilities for a total of $104.1 million. In connection with the acquisition of these self-storage facilities, 191 III entered into $57.2 million of mortgage debt which is secured by the self-storage facilities acquired. During six months ended June 30, 2018, the Company contributed 0.1 million as its share of capital to the joint venture. During the six months ended June 30, 2018, the Company received $0.2 million of distributions from 191 III.

4

SERS owns three self-storage facilities in Georgia.  During 2017, SERS acquired these three self-storage facilities for a total of $39.1 million.  In connection with the acquisition of these self-storage facilities, SERS entered into $22.0 million of mortgage debt which is secured by the self-storage facilities acquired.  During the six months ended June 30, 2018, Company contributions made to SERS and distributions received from SERS were minimal.

5

Iskalo owns the building that houses the Company’s headquarters and other tenants. The Company paid rent to Iskalo of $0.6 million during each of the six months ended June 30, 2018 and 2017. During the six months ended June 30, 2018, the Company received $0.1 million of distributions from Iskalo.

6

Urban Box is currently developing a self-storage facility in Florida which is expected to be completed in 2018. During the six months ended June 30, 2018, the Company contributed $0.3 million to Urban Box as its share of capital to the joint venture.

7

McDonald is currently developing a self-storage facility in New York which is expected to be completed in 2018. McDonald has entered into a non-recourse mortgage loan with $8.6 million of principal outstanding at June 30, 2018.

8

Merrick owns a self-storage facility in New York. Merrick has entered into a non-recourse mortgage loan with $11.3 million of principal outstanding at June 30, 2018.

9

RAP owns a self-storage facility in New York. The Company contributed $0.2 million of common capital to RAP during the six months ended June 30, 2018.

10

N32 developed a self-storage facility in Arizona which was completed and began operations in July 2018.  

11

Don Mills is developing a self-storage facility in Ontario, Canada which is expected to be completed in 2020. The Company entered into the Don Mills joint venture during the second quarter of 2018 and contributed $1.0 million of common capital to Don Mills during the six months ended June 30, 2018 as the Company’s share of the initial capital investment in the joint venture.
Company's Share of Unconsolidated Joint Ventures' Income (Loss)

The Company’s share of the unconsolidated joint ventures’ income (loss) is as follows:

 

(dollars in thousands)

Venture

 

Three Months

Ended

June 30, 2018

 

 

Three Months

Ended

June 30, 2017

 

 

Six Months

Ended

June 30, 2018

 

 

Six Months

Ended

June 30, 2017

 

Sovran HHF

 

$

739

 

 

$

624

 

 

$

1,428

 

 

$

1,162

 

Sovran HHF II

 

 

432

 

 

 

362

 

 

 

800

 

 

 

702

 

191 III

 

 

18

 

 

 

(10

)

 

 

36

 

 

 

25

 

SERS

 

 

25

 

 

 

—

 

 

 

86

 

 

 

—

 

RAP

 

 

(217

)

 

 

(255

)

 

 

(432

)

 

 

(501

)

Merrick

 

 

(16

)

 

 

—

 

 

 

(32

)

 

 

—

 

Iskalo

 

 

67

 

 

 

64

 

 

 

134

 

 

 

118

 

 

 

$

1,048

 

 

$

785

 

 

$

2,020

 

 

$

1,506

 

 
Summary of Unconsolidated Joint Ventures' Financial Statements

A summary of the unconsolidated joint ventures’ financial statements as of and for the six months ended June 30, 2018 is as follows:

 

(dollars in thousands)

 

 

 

 

Balance Sheet  Data:

 

 

 

 

Investment in storage facilities, net

 

$

1,076,193

 

Investment in office building, net

 

 

4,712

 

Other assets

 

 

20,821

 

Total Assets

 

$

1,101,726

 

Due to the Company

 

$

994

 

Mortgages payable

 

 

468,606

 

Other liabilities

 

 

8,290

 

      Total Liabilities

 

$

477,890

 

Unaffiliated partners’ equity

 

 

491,003

 

Company equity

 

 

132,833

 

Total Partners’ Equity

 

 

623,836

 

Total Liabilities and Partners’ Equity

 

$

1,101,726

 

Income Statement Data:

 

 

 

 

Total revenues

 

$

55,627

 

Property operating expenses

 

 

(17,295

)

Administrative, management and call center fees

 

 

(4,314

)

Depreciation and amortization of customer list

 

 

(12,822

)

Amortization of financing fees

 

 

(653

)

Income tax expense

 

 

(155

)

Interest expense

 

 

(8,716

)

Net income

 

$

11,672