10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

Commission file number:

1-13820 (Life Storage, Inc.)

0-24071 (Life Storage LP)

LIFE STORAGE, INC.

LIFE STORAGE LP

(Exact name of Registrant as specified in its charter)

Maryland (Life Storage, Inc.)	16-1194043 (Life Storage, Inc.)
Delaware (Life Storage LP)	16-1481551 (Life Storage LP)
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6467 Main Street

Williamsville, NY 14221

(Address of principal executive offices) (Zip code)

(716) 633-1850

(Registrant’s telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Life Storage, Inc.	Yes  ☒	No  ☐
Life Storage LP	Yes  ☒	No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Life Storage, Inc.	Yes  ☒	No  ☐
Life Storage LP	Yes  ☒	No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Life Storage, Inc.:

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

Life Storage LP:

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Life Storage, Inc.	☐
Life Storage LP	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Life Storage, Inc.	Yes  ☐	No  ☒
Life Storage LP	Yes  ☐	No  ☒

Securities registered pursuant to Section 12(b) of the Act:

Life Storage, Inc.:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	LSI	New York Stock Exchange

Life Storage LP:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

As of April 22, 2019, 46,632,703 shares of Common Stock, $.01 par value per share, were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2019 of Life Storage, Inc. (the “Parent Company”) and Life Storage LP (the “Operating Partnership”). The Parent Company is a real estate investment trust, or REIT, that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and through its ownership of Holdings and its limited partnership interest, controls the operations of the Operating Partnership, holding a 99.5% ownership interest therein as of March 31, 2019. The remaining ownership interests in the Operating Partnership are held by certain former owners of assets acquired by the Operating Partnership. As the owner of the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

Management operates the Parent Company and the Operating Partnership as one enterprise. The management teams of the Parent Company and the Operating Partnership are identical.

There are few differences between the Parent Company and the Operating Partnership, which are reflected in the note disclosures in this report. The Company believes it is important to understand the differences between the Parent Company and the Operating Partnership in the context of how these entities operate as a consolidated enterprise. The Parent Company is a REIT, whose only material asset is its ownership of the partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the owner of the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all the assets of the Company and, directly or indirectly, holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s direct or indirect incurrence of indebtedness or through the issuance of partnership units of the Operating Partnership.

The substantive difference between the Parent Company’s filings and the Operating Partnership’s filings is the fact that the Parent Company is a REIT with public equity, while the Operating Partnership is a partnership with no publicly traded equity. In the financial statements, this difference is primarily reflected in the equity (or capital for the Operating Partnership) section of the consolidated balance sheets and in the Shareholders’ Equity and Partners’ Capital notes to the financial statements. Apart from the different equity treatment, the consolidated financial statements of the Parent Company and the Operating Partnership are nearly identical.

The Company believes that combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into a single report will:

• facilitate a better understanding by the investors of the Parent Company and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;

• remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both the Parent Company and the Operating Partnership; and

• create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

2

As the owner of the general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Parent Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company’s operations on a consolidated basis and how management operates the Company.

This report also includes separate Item 4 - Controls and Procedures sections, signature pages and Exhibit 31 and 32 certifications for each of the Parent Company and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Parent Company and the Chief Executive Officer and the Chief Financial Officer of the Operating Partnership have made the requisite certifications and that the Parent Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended and 18 U.S.C. §1350.

3

Part I. Financial Information

Item 1. Financial Statements

LIFE STORAGE, INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share data)	March 31, 2019 (unaudited)			December 31, 2018
Assets
Investment in storage facilities:
Land	$	826,917		$	794,729
Building, equipment, and construction in progress		3,648,239			3,604,210
		4,475,156			4,398,939
Less: accumulated depreciation		(729,296	)		(704,681	)
Investment in storage facilities, net		3,745,860			3,694,258
Cash and cash equivalents		8,875			13,560
Accounts receivable		9,327			7,805
Receivable from unconsolidated joint ventures		1,807			1,006
Investment in unconsolidated joint ventures		135,342			145,911
Prepaid expenses		10,213			7,251
Trade name		16,500			16,500
Other assets		30,879			5,921
Total Assets	$	3,958,803		$	3,892,212
Liabilities
Line of credit	$	177,000		$	91,000
Term notes, net		1,611,344			1,610,820
Accounts payable and accrued liabilities		77,513			87,446
Deferred revenue		9,907			9,191
Mortgages payable		12,204			12,302
Total Liabilities		1,887,968			1,810,759
Noncontrolling redeemable Operating Partnership Units at redemption value		23,944			23,716
Shareholders’ Equity
Common stock $.01 par value, 100,000,000 shares authorized, 46,632,703    shares outstanding at March 31, 2019 (46,617,441 at December 31, 2018)		466			466
Additional paid-in capital		2,373,553			2,372,157
Dividends in excess of net income		(320,482	)		(308,011	)
Accumulated other comprehensive loss		(6,646	)		(6,875	)
Total Shareholders’ Equity		2,046,891			2,057,737
Noncontrolling interest in consolidated subsidiary		—			—
Total Equity		2,046,891			2,057,737
Total Liabilities and Shareholders’ Equity	$	3,958,803		$	3,892,212

See notes to consolidated financial statements.

4

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended March 31,
(dollars in thousands, except per share data)	2019			2018
Revenues
Rental income	$	124,146		$	121,624
Other operating income		12,376			11,470
Total operating revenues		136,522			133,094
Expenses
Property operations and maintenance		31,161			30,449
Real estate taxes		16,092			15,419
General and administrative		12,337			12,044
Payments for rent		141			141
Depreciation and amortization		26,227			24,764
Total operating expenses		85,958			82,817
Gain on sale of real estate		1,076			—
Income from operations		51,640			50,277
Other income (expenses)
Interest expense		(17,819	)		(17,204	)
Interest income		5			4
Equity in income of joint ventures		811			972
Net income		34,637			34,049
Net income attributable to noncontrolling    interest in the Operating Partnership		(183	)		(160	)
Net loss attributable to noncontrolling    interest in consolidated subsidiary		—			—
Net income attributable to common shareholders	$	34,454		$	33,889
Earnings per common share attributable    to common shareholders – basic	$	0.74		$	0.73
Earnings per common share attributable    to common shareholders – diluted	$	0.74		$	0.73
Common shares used in basic earnings per share    calculation		46,564,846			46,452,492
Common shares used in diluted earnings per share    calculation		46,636,700			46,536,672
Dividends declared per common share	$	1.00		$	1.00

See notes to consolidated financial statements.

5

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Net income	$	34,637		$	34,049
Other comprehensive income:
Effective portion of gain on derivatives net    of reclassification to interest expense		229			277
Total comprehensive income		34,866			34,326
Comprehensive income attributable to noncontrolling    interest in the Operating Partnership		(184	)		(161	)
Comprehensive loss attributable to noncontrolling    interest in consolidated subsidiary		—			—
Comprehensive income attributable to common shareholders	$	34,682		$	34,165

See notes to consolidated financial statements.

6

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Operating Activities
Net income	$	34,637		$	34,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		26,227			24,764
Amortization of debt issuance costs and bond discount		903			891
Gain on sale of real estate		(1,076	)		—
Equity in income of joint ventures		(811	)		(972	)
Distributions from unconsolidated joint ventures		2,404			2,037
Non-vested stock earned		1,396			1,495
Stock option expense		—			4
Deferred income taxes		(175	)		148
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable		(1,520	)		45
Prepaid expenses		(3,106	)		(10,578	)
(Advances to) receipts from joint ventures		(801	)		497
Accounts payable and other liabilities		(23,825	)		(23,749	)
Deferred revenue		634			973
Net cash provided by operating activities		34,887			29,604
Investing Activities
Acquisition of storage facilities, net of cash acquired		(55,132	)		—
Improvements, equipment additions, and construction in progress		(12,036	)		(8,755	)
Investment in unconsolidated joint ventures		(1,792	)		(706	)
Property deposits		(6,000	)		29
Net cash used in investing activities		(74,960	)		(9,432	)
Financing Activities
Proceeds from line of credit		107,000			68,000
Repayments of line of credit		(21,000	)		(43,000	)
Dividends paid - common stock		(46,631	)		(46,121	)
Distributions to noncontrolling interest holders		(249	)		(217	)
Mortgage principal payments		(98	)		(93	)
Net cash provided by (used in) financing activities		39,022			(21,431	)
Net decrease in cash and restricted cash		(1,051	)		(1,259	)
Cash and restricted cash at beginning of period		14,065			9,459
Cash and restricted cash at end of period	$	13,014		$	8,200
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	$	19,642		$	19,140
Cash paid for income taxes, net of refunds	$	346		$	322

See notes to consolidated financial statements.

7

LIFE STORAGE LP

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)	March 31, 2019 (unaudited)			December 31, 2018
Assets
Investment in storage facilities:
Land	$	826,917		$	794,729
Building, equipment, and construction in progress		3,648,239			3,604,210
		4,475,156			4,398,939
Less: accumulated depreciation		(729,296	)		(704,681	)
Investment in storage facilities, net		3,745,860			3,694,258
Cash and cash equivalents		8,875			13,560
Accounts receivable		9,327			7,805
Receivable from unconsolidated joint ventures		1,807			1,006
Investment in unconsolidated joint ventures		135,342			145,911
Prepaid expenses		10,213			7,251
Trade name		16,500			16,500
Other assets		30,879			5,921
Total Assets	$	3,958,803		$	3,892,212
Liabilities
Line of credit	$	177,000		$	91,000
Term notes, net		1,611,344			1,610,820
Accounts payable and accrued liabilities		77,513			87,446
Deferred revenue		9,907			9,191
Mortgages payable		12,204			12,302
Total Liabilities		1,887,968			1,810,759
Limited partners’ redeemable capital interest at redemption value    (248,966 units outstanding at March 31, 2019 and December 31, 2018)		23,944			23,716
Partners’ Capital
General partner (468,816 and 468,663 units outstanding at March 31, 2019 and    December 31, 2018, respectively)		20,710			20,816
Limited partners (46,163,887 and 46,148,778 units outstanding at March 31, 2019    and December 31, 2018, respectively)		2,032,827			2,043,796
Accumulated other comprehensive loss		(6,646	)		(6,875	)
Total Controlling Partners’ Capital		2,046,891			2,057,737
Noncontrolling interest in consolidated subsidiary		—			—
Total Partners’ Capital		2,046,891			2,057,737
Total Liabilities and Partners’ Capital	$	3,958,803		$	3,892,212

See notes to consolidated financial statements.

8

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended March 31,
(dollars in thousands, except per unit data)	2019			2018
Revenues
Rental income	$	124,146		$	121,624
Other operating income		12,376			11,470
Total operating revenues		136,522			133,094
Expenses
Property operations and maintenance		31,161			30,449
Real estate taxes		16,092			15,419
General and administrative		12,337			12,044
Payments for rent		141			141
Depreciation and amortization		26,227			24,764
Total operating expenses		85,958			82,817
Gain on sale of real estate		1,076			—
Income from operations		51,640			50,277
Other income (expenses)
Interest expense		(17,819	)		(17,204	)
Interest income		5			4
Equity in income of joint ventures		811			972
Net income		34,637			34,049
Net income attributable to noncontrolling interest    in the Operating Partnership		(183	)		(160	)
Net loss attributable to noncontrolling interest    in consolidated subsidiary		—			—
Net income attributable to common unitholders	$	34,454		$	33,889
Earnings per common unit attributable to    common unitholders – basic	$	0.74		$	0.73
Earnings per common unit attributable to    common unitholders – diluted	$	0.74		$	0.73
Common units used in basic earnings per unit    calculation		46,564,846			46,452,492
Common units used in diluted earnings per unit    calculation		46,636,700			46,536,672
Distributions declared per common unit	$	1.00		$	1.00
Net income attributable to general  partner	$	346		$	340
Net income attributable to limited partners	$	34,108		$	33,549

See notes to consolidated financial statements.

9

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2019			2018
Net income	$	34,637		$	34,049
Other comprehensive income:
Effective portion of gain on derivatives net of    reclassification to interest expense		229			277
Total comprehensive income		34,866			34,326
Comprehensive income attributable to noncontrolling    interest in the Operating Partnership		(184	)		(161	)
Comprehensive loss attributable to noncontrolling interest    in consolidated subsidiary		—			—
Comprehensive income attributable to common unitholders	$	34,682		$	34,165

See notes to consolidated financial statements.

10

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Operating Activities
Net income	$	34,637		$	34,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		26,227			24,764
Amortization of debt issuance costs and bond discount		903			891
Gain on sale of real estate		(1,076	)		—
Equity in income of joint ventures		(811	)		(972	)
Distributions from unconsolidated joint ventures		2,404			2,037
Non-vested stock earned		1,396			1,495
Stock option expense		—			4
Deferred income taxes		(175	)		148
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable		(1,520	)		45
Prepaid expenses		(3,106	)		(10,578	)
(Advances to) receipts from joint ventures		(801	)		497
Accounts payable and other liabilities		(23,825	)		(23,749	)
Deferred revenue		634			973
Net cash provided by operating activities		34,887			29,604
Investing Activities
Acquisition of storage facilities, net of cash acquired		(55,132	)		—
Improvements, equipment additions, and construction in progress		(12,036	)		(8,755	)
Investment in unconsolidated joint ventures		(1,792	)		(706	)
Property deposits		(6,000	)		29
Net cash used in investing activities		(74,960	)		(9,432	)
Financing Activities
Proceeds from line of credit		107,000			68,000
Repayments of line of credit		(21,000	)		(43,000	)
Distributions to unitholders		(46,631	)		(46,121	)
Distributions to noncontrolling interest holders		(249	)		(217	)
Mortgage principal payments		(98	)		(93	)
Net cash provided by (used in) financing activities		39,022			(21,431	)
Net decrease in cash and restricted cash		(1,051	)		(1,259	)
Cash and restricted cash at beginning of period		14,065			9,459
Cash and restricted cash at end of period	$	13,014		$	8,200
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	$	19,642		$	19,140
Cash paid for income taxes, net of refunds	$	346		$	322

See notes to consolidated financial statements.

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Life Storage, Inc. (the “Parent Company”) and Life Storage LP (the “Operating Partnership”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

2. ORGANIZATION

The Parent Company operates as a self-administered and self-managed real estate investment trust (a “REIT”) that owns and operates self-storage properties. All of the Parent Company’s assets are owned by, and all its operations are conducted through, the Operating Partnership. Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and, through its ownership of Holdings and its limited partnership interest, controls the operations of the Operating Partnership, holding a 99.5% ownership interest therein as of March 31, 2019. The remaining ownership interests in the Operating Partnership (the “Units”) are held by certain former owners of assets acquired by the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

At March 31, 2019, we had an ownership interest in, and/or managed 780 self-storage properties in 28 states and Ontario, Canada. Among our 780 self-storage properties are 114 properties that we manage for unconsolidated joint ventures (see Note 10) and 103 properties that we manage and in which we have no ownership interest.

We consolidate all wholly owned subsidiaries. Partially owned entities, including joint ventures, are consolidated when we control the entity. Our consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, Life Storage Solutions, LLC (one of the Parent Company’s taxable REIT subsidiaries), Warehouse Anywhere LLC (an entity owned 60% by Life Storage Solutions, LLC), and all other wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Investments in joint ventures that we do not control but over which we have significant influence are accounted for using the equity method.

Included in the Parent Company’s consolidated balance sheets are noncontrolling redeemable Operating Partnership Units and included in the Operating Partnership’s consolidated balance sheets are limited partners’ redeemable capital interest at redemption value. These interests are presented in the “mezzanine” section of the consolidated balance sheets because they do not meet the functional definition of a liability or equity under current accounting literature. These represent the outside ownership interests of the limited partners in the Operating Partnership. At March 31, 2019 and December 31, 2018, there were 248,966 noncontrolling redeemable Operating Partnership Units outstanding. These unitholders are entitled to receive distributions per unit equivalent to the dividends declared per share on the Parent Company’s common stock. The Operating Partnership is obligated to redeem each of these limited partnership units in the Operating Partnership at the request of the holder thereof for cash equal to the fair market value of a share of the Parent Company’s common stock based on a 10-day average of the daily market price, at the time of such redemption, provided that the Company, at its option, may elect to acquire any such Unit presented for redemption for one common share or cash. The Company accounts for these noncontrolling redeemable Operating Partnership Units under the provisions of Accounting Standards Codification (ASC) Topic 480-10-S99. The application of the ASC Topic 480-10-S99 accounting model requires the noncontrolling interest to follow normal noncontrolling interest accounting and then be marked to redemption value at the end of each reporting period if higher (but never adjusted below that normal noncontrolling interest accounting amount). The offset to the adjustment to the carrying amount of the noncontrolling interests is reflected in the Company’s dividends in excess of net income and in the Operating Partnership’s general partner and limited partners capital balances. Accordingly, in the accompanying consolidated balance sheets, noncontrolling interests are reflected at redemption value at March 31, 2019 and December 31, 2018, equal to the number of noncontrolling interest units outstanding multiplied by the fair market value of the Parent Company’s common stock at that date. Redemption value exceeded the value determined under the Company’s historical basis of accounting at those dates.

12

The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units and the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Three Months Ended March 31, 2019
Beginning balance	$	23,716
Net income attributable to noncontrolling interest in the    Operating Partnership		183
Distributions		(249	)
Adjustment to redemption value		294
Ending balance	$	23,944

The disaggregated revenues of the Company presented in accordance with ASC Topic 606 “Revenue from Contracts with Customers” are as follows:

(dollars in thousands)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Rental income	$	124,146	$	121,624
Management and acquisition fee income		3,086		2,395
Revenues related to tenant reinsurance		5,815		5,717
Other		3,475		3,358
Total operating revenues	$	136,522	$	133,094

Management and acquisition fee income and revenues related to tenant reinsurance are included in other operating income in the consolidated statements of operations.

During the three months ended March 31, 2019, approximately 21% and 13% of the Company’s revenue was derived from self-storage facilities in the states of Texas and Florida, respectively.

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation - Stock Compensation.” The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period.

For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

The Company did not record any compensation expense related to stock options during the three months ended March 31, 2019. For the three months ended March 31, 2018, the Company recorded compensation expense (included in general and administrative expense) of $4,000 related to stock options. For the three months ended March 31, 2019 and 2018, the Company recorded compensation expense of $1,396,000 and $1,495,000, respectively, related to amortization of non-vested stock grants and performance-based awards.    

No stock options were exercised by employees and directors during the three months ended March 31, 2019 and 2018. During the three months ended March 31, 2019 and 2018, 16,821 and 36,191 shares of non-vested stock, respectively, vested.

During the three months ended March 31, 2019, the Company issued 1,000 shares of non-vested stock to employees which vest over five years. The per-share fair market value on the date of grant of the non-vested stock issued during the three months ended March 31, 2019 was $99.10, resulting in an aggregate fair value of $99,100.

In September 2018, the Company announced that then current Chief Executive Officer, David Rogers, would be retiring effective March 1, 2019. In conjunction with this announcement, the vesting periods of certain restricted stock awards and performance-based awards previously granted to Mr. Rogers were accelerated to reflect his March 1, 2019 retirement date. As a result of this change, an additional $0.4 million of compensation expense was recorded during the three months ended March 31, 2019.

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4. CASH AND RESTRICTED CASH

Restricted cash represents those amounts required to be placed in escrow by banks with whom the Company has entered into mortgages and amounts required to be placed into escrow related to the Company’s tenant reinsurance program which became effective April 1, 2019 (see Note 17). Restricted cash is included in other assets in the consolidated balance sheets. The following table provides a reconciliation of cash and restricted cash reported within the consolidated statement of cash flows:

(Dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018		Mar. 31, 2018
Cash	$	8,875	$	13,560	$	7,778
Restricted cash		4,139		505		422
Total cash and restricted cash		13,014		14,065		8,200

5. INVESTMENT IN STORAGE FACILITIES AND INTANGIBLE ASSETS

The following summarizes our activity in storage facilities during the three months ended March 31, 2019:

(dollars in thousands)
Cost:
Beginning balance	$	4,398,939
Acquisition of storage facilities		66,086
Improvements and equipment additions		10,937
Net increase in construction in progress		996
Dispositions		(1,802	)
Ending balance	$	4,475,156
Accumulated  Depreciation:
Beginning balance	$	704,681
Additions during the period		25,851
Dispositions		(1,236	)
Ending balance	$	729,296

The Company acquired two self-storage facilities during the three months ended March 31, 2019. The acquisitions of these facilities were accounted for as asset acquisitions. The costs of the facilities, including closing costs, were allocated to land, building, equipment and improvements, and in-place customer leases based upon their relative fair values.

The purchase prices of the facilities acquired in 2019 have been assigned as follows:

(dollars in thousands)						Consideration paid								Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition	Purchase Price		Cash Paid		Carrying Value of Noncontrolling Interest in Joint Venture		Mortgage Assumed		Net Other Liabilities (Assets) Assumed		Land		Building, Equipment, and Improvements		In-Place Customers Leases		Closing Costs Expensed
NY		1	1/16/2019	$	57,169	$	46,402	$	10,715	$	—	$	52	$	30,029	$	26,863	$	277	$	—
FL		1	3/8/2019		9,302		9,222		—		—		80		1,817		7,377		108		—
Total acquired in 2019		2		$	66,471	$	55,624	$	10,715	$	—	$	132	$	31,846	$	34,240	$	385		—

The facility purchased in New York was acquired as the result of the Company’s acquisition of the remaining 60% ownership interest in Review Avenue Partners, LLC (“RAP”). Prior to this acquisition, RAP was a joint venture between the Company and an otherwise unrelated third-party which had been accounted for by the Company using the equity method of accounting (see Note 10 for additional information on RAP). The purchase price for this acquisition includes the carrying value of the Company’s equity investment in RAP of $10.7 million at the time of the acquisition. The facility acquired in Florida was purchased from an unrelated third-party.

The $55.6 million of cash paid for the facilities acquired in 2019 includes $0.2 million of deposits that were paid in 2018, when one of these facilities was originally under contract. In addition to the Company’s equity investment in RAP at carrying value, non-cash investing activities during 2019 include the assumption of net other liabilities totaling $132,000.

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The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
In-place customer leases	$	76,099		$	75,715
Accumulated amortization		(75,089	)		(74,744	)
Net carrying value at the end of period		1,010			971

Amortization expense related to in-place customer leases was $0.3 million for the three months ended March 31, 2019. The Company did not record any amortization expense during the three months ended March 31, 2018 as all in-place customer leases were fully amortized at the beginning of the period.

Change in Useful Life Estimates

As part of the Company’s capital improvement efforts during 2017, 2018 and 2019, buildings at certain self-storage facilities were identified for replacement. As a result of the decision to replace these buildings, the Company reassessed the estimated useful lives of the then existing buildings. This useful life reassessment resulted in an increase in depreciation expense of approximately $0.7 million and $0.3 million during the three month periods ended March 31, 2019 and 2018, respectively. The Company estimates that the change in estimated useful lives of buildings identified for replacement as of March 31, 2019 will have minimal additional impact on depreciation expense during the remainder of 2019.

The accelerated depreciation resulting from the events discussed above reduced both basic and diluted earnings per share/unit by approximately $0.02 and $0.01 for the three month periods ended March 31, 2019 and 2018, respectively.

6. UNSECURED LINE OF CREDIT AND TERM NOTES

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
Revolving line of credit borrowings	$	177,000		$	91,000
Term note due June 4, 2020		100,000			100,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			600,000
Senior term note due December 15, 2027		450,000			450,000
Term note due July 21, 2028		200,000			200,000
Total term note principal balance outstanding	$	1,625,000		$	1,625,000
Less: unamortized debt issuance costs		(9,390	)		(9,778	)
Less: unamortized senior term note discount		(4,266	)		(4,402	)
Term notes payable	$	1,611,344		$	1,610,820

The Company’s unsecured amended credit agreement includes a revolving credit facility with a limit of $500 million with a maturity date of March 10, 2023 and a term note in the principal amount of $100 million with a maturity date of June 4, 2020. Such credit agreement provides for interest on the revolving credit facility at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at March 31, 2019 the margin is 0.95%), interest on the term note at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at March 31, 2019 the margin is 1.00%), and requires an annual facility fee on the revolving credit facility which varies based upon the Company’s credit rating (at March 31, 2019 the facility fee is 0.15%). The interest rate on the Company’s revolving credit facility at March 31, 2019 was approximately 3.45% (3.47% at December 31, 2018) and the interest rate on the term note at March 31, 2019 was approximately 3.50% (3.52% at December 31, 2018). At March 31, 2019 there was $322.7 million available on the unsecured line of credit. The Company has the option under this credit facility to increase the total aggregate borrowing capacity of the facilities to $900 million.

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On December 7, 2017, the Operating Partnership issued $450 million in aggregate principal amount of 3.875% unsecured senior notes due December 15, 2027 (the “2027 Senior Notes”). The 2027 Senior Notes were issued at a 0.477% discount to par value.  Interest on the 2027 Senior Notes is payable semi-annually in arrears on each June 15 and December 15. The 2027 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $2.1 million and underwriting discount and other offering expenses of $4.0 million, totaled $443.9 million.

On June 20, 2016, the Operating Partnership issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a 0.553% discount to par value. Interest on the 2026 Senior Notes is payable semi-annually in arrears on each January 1 and July 1. The 2026 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $3.3 million and underwriting discount and other offering expenses of $5.5 million, totaled $591.2 million.

The indenture under which the 2027 Senior Notes and the 2026 Senior Notes were issued restricts the ability of the Company and its subsidiaries to incur debt unless the Company and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 on all outstanding debt, after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Company and its subsidiaries to incur secured debt unless the Company and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Company and its consolidated subsidiaries. At March 31, 2019, the Company was in compliance with such covenants.

On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%.

On April 8, 2014, the Company entered into a $175 million term note maturing April 8, 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded.

In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded.

The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At March 31, 2019, the Company was in compliance with such covenants.

We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at March 31, 2019, the entire availability on the line of credit could be drawn without violating our debt covenants.

The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control.

Deferred debt issuance costs and the discount on the outstanding term notes are both presented as reductions of term notes in the accompanying consolidated balance sheets at March 31, 2019 and December 31, 2018. Amortization expense related to these deferred debt issuance costs was $0.5 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, and is included in interest expense in the consolidated statements of operations.

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7. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at March 31, 2019 and December 31, 2018 consist of the following:

(dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018
4.98% mortgage note due January 1, 2021, secured by one    self-storage facility with an aggregate net book value of $9.5    million, principal and interest paid monthly    (effective interest rate 5.17%)	$	2,849	$	2,863
4.065% mortgage note due April 1, 2023, secured by one self-    storage facility with an aggregate net book value of $7.4    million, principal and interest paid monthly    (effective interest rate 4.25%)		4,004		4,028
5.26% mortgage note due November 1, 2023, secured by one    self-storage facility with an aggregate net book value of $7.9    million, principal and interest paid monthly    (effective interest rate 5.50%)		3,853		3,871
5.99% mortgage note due May 1, 2026, secured by one self-    storage facility with an aggregate net book value of $6.4    million, principal and interest paid monthly    (effective interest rate 6.32%)		1,498		1,540
Total mortgages payable	$	12,204	$	12,302

The table below summarizes the Company’s debt obligations at March 31, 2019. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 9. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

			Expected Maturity Date Including Discount
(dollars in thousands)	2019		2020		2021		2022		2023		Thereafter		Total		Fair Value
Line of credit - variable rate    LIBOR + 0.95% (3.45% at    March 31, 2019)		—		—		—		—	$	177,000		—	$	177,000	$	177,000
Notes Payable:
Term note - variable rate    LIBOR + 1.00% (3.50% at    March 31, 2019)		—	$	100,000		—		—		—		—	$	100,000	$	100,000
Term note - fixed rate 5.54%		—		—	$	100,000		—		—		—	$	100,000	$	104,916
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	181,489
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	586,050
Term note - fixed rate 3.875%		—		—		—		—		—	$	450,000	$	450,000	$	438,803
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	188,614
Mortgage note - fixed rate 4.98%	$	42	$	59	$	2,748		—		—		—	$	2,849	$	2,903
Mortgage note - fixed rate 4.065%	$	72	$	99	$	104	$	108	$	3,621		—	$	4,004	$	4,034
Mortgage note - fixed rate 5.26%	$	53	$	74	$	78	$	83	$	3,565		—	$	3,853	$	4,079
Mortgage note - fixed rate 5.99%	$	128	$	181	$	192	$	203	$	216	$	578	$	1,498	$	1,607
Total	$	295	$	100,413	$	103,122	$	394	$	184,402	$	1,425,578	$	1,814,204

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8. DERIVATIVE FINANCIAL INSTRUMENTS

Interest rate swaps have been used to adjust the proportion of total debt that is subject to variable interest rates. The interest rate swaps required the Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and to receive in return an amount equal to a variable rate of interest times the same notional amount. The notional amounts were not exchanged. Forward starting interest rate swaps have also been used by the Company to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.

The Company’s interest rate swaps qualified and were designated as hedges of the amount of future cash flows related to interest payments on variable rate debt. Therefore, interest rate swaps are recorded in the consolidated balance sheets at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive Loss (“AOCL”). These deferred gains and losses are recognized in interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately.

In the third quarter of 2018, the Company’s last remaining interest rate swaps on $100 million of the Company’s variable rate debt expired and were settled by the Company. As a result, no gains or losses related to interest rate swaps are included in AOCL at March 31, 2019. There are no interest rate swaps held by the Company at March 31, 2019.

In 2015 and 2016, the Company entered into forward starting interest rate swap agreements to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of fixed rate long-term debt. In conjunction with the issuance of the 2026 Senior Notes (see Note 6), the Company terminated these hedges and settled the forward starting swap agreements for approximately $9.2 million. The $9.2 million has been deferred in AOCL and is being amortized as additional interest expense over the ten-year term of the 2026 Senior Notes or until such time as interest payments on the 2026 Senior Notes are no longer probable.

During the three months ended March 31, 2018 the net reclassification from AOCL to interest expense was ($30,000) based on payments received under the swap agreements. There was no such reclassification in 2019 as the Company did not have any interest rate swaps outstanding during the three months ended March 31, 2019. Payments received under the interest rate swap agreements have been reclassified to interest expense as settlements occurred.

The changes in AOCL for the three months ended March 31, 2019 and 2018 are summarized as follows:

(dollars in thousands)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Accumulated other comprehensive loss beginning of period	$	(6,875	)	$	(7,587	)
Realized loss reclassified from accumulated other    comprehensive loss to interest expense		229			196
Unrealized gain from changes in the fair value of the    effective portion of the interest rate swaps		—			81
Amount included in other comprehensive income		229			277
Accumulated other comprehensive loss end of period	$	(6,646	)	$	(7,310	)

9. FAIR VALUE MEASUREMENTS

The Company applies the provisions of ASC Topic 820 “Fair Value Measurements and Disclosures” in determining the fair value of its financial and nonfinancial assets and liabilities. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Refer to Note 7 for presentation of the fair values of debt obligations which are disclosed at fair value on a recurring basis.

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The are no assets or liabilities carried at fair value measured on a recurring basis on the consolidated balance sheets as of March 31, 2019 and December 31, 2018.

10. INVESTMENT IN JOINT VENTURES

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

Venture	Number of Properties at Mar. 31, 2019	Company common ownership interest at Mar. 31, 2019	Carrying value of investment at Mar. 31, 2019	Carrying value of investment at Dec. 31, 2018
Sovran HHF Storage Holdings LLC (“Sovran HHF”)1	57	20%	$84.9 million	$85.8 million
Sovran HHF Storage Holdings II LLC (“Sovran    HHF II”)2	30	15%	$13.4 million	$13.4 million
191 III Life Storage Holdings LLC (“191 III”)3	6	20%	$9.3   million	$9.3   million
Life Storage-SERS Storage LLC (“SERS”)4	3	20%	$3.4   million	$3.5   million
Life Storage-HIERS Storage LLC (“HIERS”)5	12	20%	$9.3   million	$9.3   million
Iskalo Office Holdings, LLC (“Iskalo”)6	N/A	49%	($0.4   million)	($0.4    million)
Urban Box Coralway Storage, LLC (“Urban Box”)7	1	85%	$4.3   million	$4.4   million
SNL/Orix 1200 McDonald Ave., LLC (“McDonald”)8	1	5%	$2.8   million	$2.8   million
SNL Orix Merrick, LLC (“Merrick”)9	1	5%	$2.5   million	$2.5   million
N 32nd Street Self Storage, LLC (“N32”)10	1	46%	$1.2   million	$1.2   million
NYX Don Mills Storage LP ("Don Mills")11	1*	17%	$1.0   million	$1.0   million
NYX Sheridan Storage LP ("Sheridan")12	1*	38.3%	$0.7   million	$0.7   million
NYX Appleby Storage LP ("Appleby")13	1*	37.5%	$1.0   million	$1.0   million
Bluebird Sanford Storage LP ("Sanford")14	1	20.5%	$0.3   million	N/A
Bluebird Ingram Storage LP ("Ingram")15	1	46.3%	$1.3   million	N/A
*Property in development stage

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). Sovran HHF has entered into non-recourse mortgage loans with $219.6 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $1.7 million of distributions from Sovran HHF. As of March 31, 2019, 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). Sovran HHF II has entered into non-recourse mortgage loans with $87.8 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.5 million of distributions from Sovran HHF II.

³ 191 III owns six self-storage facilities in California. 191 III has entered into a non-recourse mortgage loan with $57.2 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company contributed $0.1 million as its share of capital to the joint venture. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from 191 III.

⁴ SERS owns three self-storage facilities in Georgia. SERS has entered into a non-recourse mortgage loan with $22.0 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company did not make any contributions to SERS and distributions received from SERS were minimal.

⁵ HIERS owns self-storage facilities in Arizona (2), Florida (1), North Carolina (1), Texas (7), and Virginia (1) which were acquired from the Company in the fourth quarter of 2018. HIERS has entered into a non-recourse mortgage loan with $45.4 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from HIERS.

⁶ Iskalo owns the building that houses the Company’s headquarters and other tenants. The Company paid rent to Iskalo of $0.3 million during each of the three months ended March 31, 2019 and 2018.

⁷ Urban Box owns a self-storage facility in Florida. Urban Box has entered into a non-recourse mortgage loan with $6.7 million of principal outstanding at March 31, 2019.

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⁸ McDonald owns a self-storage facility in New York. McDonald has entered into a non-recourse mortgage loan with $11.6 million of principal outstanding at March 31, 2019.

⁹ Merrick owns a self-storage facility in New York. Merrick has entered into a non-recourse mortgage loan with $12.3 million of principal outstanding at March 31, 2019.

¹⁰ N32 owns a self-storage property in Arizona and has entered into a non-recourse mortgage loan with $6.3 million of principal outstanding at March 31, 2019.  

¹¹ Don Mills is developing a self-storage facility in Ontario, Canada which is expected to be completed in 2020.

¹² Sheridan is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.

¹³ Appleby is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.

¹⁴ Sanford owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $3.2 million of principal outstanding at March 31, 2019. The Company entered into the Sanford joint venture during 2019 and contributed $0.3 million of common capital to Sanford during 2019 as the Company’s share of the initial capital investment in the joint venture.

¹⁵ Ingram owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $17.6 million of principal outstanding at March 31, 2019. The Company entered into the Ingram joint venture during 2019 and contributed $1.3 million of common capital to Ingram during 2019 as the Company’s share of the initial capital investment in the joint venture.

Based on the facts and circumstances of each of the Company’s joint ventures, the Company has determined that none of the joint ventures are a variable interest entity (“VIE”) in accordance with ASC 810, “Consolidation.” As a result, the Company used the voting model under ASC 810 to determine whether or not to consolidate the joint ventures. Based upon each member’s substantive participation rights over the activities as stipulated in the joint venture agreements, none of the joint ventures are consolidated by the Company. Due to the Company’s significant influence over the operations of each of the joint ventures, all joint ventures are accounted for under the equity method of accounting.

In the first quarter of 2019, the Company acquired the remaining 60% ownership interest in RAP for cash payment of $46.4 million which included the payoff of a $30.0 million mortgage loan previously entered into by RAP and $0.7 million of transfer taxes. RAP had historically been accounted for by the Company using the equity method of accounting. As a result of this transaction, the Company now owns 100% of RAP and has consolidated RAP in accordance with ASC 810, “Consolidation” since the date of acquisition of the remaining 60% ownership interest. The allocated purchase price of RAP also includes the carrying value of the Company’s investment in RAP at the date of acquisition which totaled $10.7 million (see Note 5 for additional information on the accounting for this acquisition).

The carrying values of the Company’s investments in joint ventures are assessed for other-than-temporary impairment on a periodic basis and no such impairments have been recorded on any of the Company’s investments in joint ventures.

The Company earns management and/or call center fees ranging from 5% to 7% of joint venture gross revenues as property manager of the self-storage facilities owned by HHF, HHF II, 191 III, SERS, HIERS, Urban Box, McDonald, Merrick, N32, Sanford and Ingram. The Company also earned management and/or call center fees as property manager of the self-storage facility owned by RAP prior to the Company’s acquisition of the remaining 60% ownership interest in RAP discussed above. These fees, which are included in other operating income in the consolidated statements of operations, totaled $2.1 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively.

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

(dollars in thousands) Venture	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Sovran HHF	$	829		$	689
Sovran HHF II		413			368
191 III		(14	)		18
SERS		(46	)		62
HIERS		20			—
RAP		(280	)		(216	)
Merrick		(5	)		(16	)
McDonald		(13	)		—
Urban Box		(125	)		—
N32		(21	)		—
Iskalo		53			67
	$	811		$	972

A summary of the combined unconsolidated joint ventures’ financial statements as of and for the three months ended March 31, 2019 is as follows:

(dollars in thousands)
Balance Sheet  Data:
Investment in storage facilities, net	$	1,158,144
Investment in office building, net		4,573
Other assets		20,759
Total Assets	$	1,183,476
Due to the Company	$	1,807
Mortgages payable		516,061
Other liabilities		11,018
Total Liabilities	$	528,886
Unaffiliated partners’ equity		519,642
Company equity		134,948
Total Partners’ Equity		654,590
Total Liabilities and Partners’ Equity	$	1,183,476
Income Statement Data:
Total revenues	$	30,915
Property operating expenses		(9,832	)
Administrative, management and call center fees		(2,470	)
Depreciation and amortization of customer list		(6,823	)
Amortization of financing fees		(231	)
Income tax expense		(79	)
Interest expense		(5,945	)
Net income	$	5,535

The Company does not guarantee the debt of any of its equity method investees.

We do not expect to have material future cash outlays relating to these joint ventures outside our share of capital for future acquisitions of properties and our share of the payoff of secured debt held by these joint ventures.

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11. INCOME TAXES

The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes its taxable income to its shareholders and complies with certain other requirements.

The Company has elected to treat three of its subsidiaries as taxable REIT subsidiaries. In general, the Company’s taxable REIT subsidiaries may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

The Company recorded federal and state income tax expense of $0.4 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, which are included in general and administrative expenses in the consolidated statements of operations. At March 31, 2019 and 2018, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of March 31, 2019 and 2018, the Company had no interest or penalties related to uncertain tax positions. Income taxes payable at March 31, 2019 and December 31, 2018 are classified within accounts payable and accrued liabilities in the consolidated balance sheets. Prepaid income taxes at March 31, 2019 and December 31, 2018 are classified within prepaid expenses, while the net deferred tax assets of our taxable REIT subsidiaries at March 31, 2019 and December 31, 2018 are classified within other assets in the consolidated balance sheets. As of March 31, 2019, the Company’s taxable REIT subsidiaries have prepaid taxes of $0.1 million, deferred tax assets totaling $2.4 million, and a deferred tax liability of $1.7 million. As of December 31, 2018, the Company’s taxable REIT subsidiaries have prepaid taxes of $0.1 million, deferred tax assets of $2.1 million and a deferred tax liability of $1.6 million. The tax years 2015-2018 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 20, 2017. The TCJA significantly changed the U.S. federal income tax laws applicable to businesses and their owners, including REITs and their shareholders. Under the TCJA, the corporate income tax rate is reduced from a maximum rate of 35% to a flat 21% rate. The reduced corporate income tax rate, which is effective for taxable years beginning after December 31, 2017, applies to income earned by our taxable REIT subsidiaries.

12. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance ASC Topic 260, “Earnings Per Share.” Under ASC Topic 260-10, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

Earnings Per Share

(in thousands except per share data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common shareholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per share – weighted    average shares		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per share – adjusted    weighted average shares and assumed conversion		46,637		46,537
Basic earnings per common share attributable to    common shareholders	$	0.74	$	0.73
Diluted earnings per common share attributable to    common shareholders	$	0.74	$	0.73

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Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common unitholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per unit – weighted    average units		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per unit – adjusted    weighted average units and assumed conversion		46,637		46,537
Basic earnings per common unit attributable to    common unitholders	$	0.74	$	0.73
Diluted earnings per common unit attributable to    common unitholders	$	0.74	$	0.73

Not included in the effect of dilutive securities above for both earnings per share and earnings per unit are 73,770 unvested restricted shares for the three months ended March 31, 2019, and 11,000 stock options and 118,062 unvested restricted shares for the three months ended March 31, 2018, because their effect would be antidilutive.

13. SHAREHOLDERS’ EQUITY

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2019:

(dollars in thousands)	Common Stock		Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2018	$	466	$	2,372,157	$	(308,011	)	$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		—		1,396		—			—			1,396
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—		—		(294	)		—			(294	)
Net income attributable to common shareholders		—		—		34,454			—			34,454
Amortization of terminated hedge included in    AOCL		—		—		—			229			229
Dividends		—		—		(46,631	)		—			(46,631	)
Balance March 31, 2019	$	466	$	2,373,553	$	(320,482	)	$	(6,646	)	$	2,046,891

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The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2018:

(dollars in thousands)	Common Stock			Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2017	$	466		$	2,363,171	$	(327,727	)	$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		(1	)		1		—			—			—
Earned portion of non-vested stock		—			1,495		—			—			1,495
Stock option expense		—			4		—			—			4
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—			—		1,470			—			1,470
Net income attributable to common shareholders		—			—		33,889			—			33,889
Amortization of terminated hedge included in    AOCL		—			—		—			229			229
Change in fair value of derivatives, net of    reclassifications		—			—		—			48			48
Dividends		—			—		(46,121	)		—			(46,121	)
Balance March 31, 2018	$	465		$	2,364,671	$	(338,489	)	$	(7,310	)	$	2,019,337

On June 14, 2018, the Company entered into a continuous equity offering program with Wells Fargo Securities, LLC, Jeffries LLC, SunTrust Robinson Humphrey, Inc., HSBC Securities (USA) Inc., BB&T Capital Markets, a division of BB&T Securities, LLC and BTIG, LLC, pursuant to which the Company may sell up to $300 million in aggregate offering price of shares of the Company’s common stock. Actual sales under this continuous equity offering program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell and issue shares of common stock under this equity program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under this equity program. During 2019 and 2018, the Company did not issue any shares of common stock under this equity program.

On August 2, 2017, the Company’s Board of Directors authorized the repurchase of up to $200 million of the Company’s outstanding common shares (“Buyback Program”). The Buyback Program allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market, through privately negotiated transactions, or through other methods of acquiring shares. The Buyback Program may be suspended or discontinued at any time. The Company did not repurchase any outstanding common shares under the Buyback Program during the three months ended March 31, 2019 or the three months ended March 31, 2018.

In 2013, the Company implemented a Dividend Reinvestment Plan which was suspended by the Company’s Board of Directors in 2017. As a result, the Company did not issue any shares under the Dividend Reinvestment Plan during the three months ended March 31, 2019 and 2018.  

14. PARTNERS’ CAPITAL

The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2019:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2018	$	20,816		$	2,043,796		$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		14			1,382			—			1,396
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units		—			(294	)		—			(294	)
Net income attributable to common unitholders		347			34,107			—			34,454
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Distributions		(469	)		(46,162	)		—			(46,631	)
Balance March 31, 2019	$	20,710		$	2,032,827		$	(6,646	)	$	2,046,891

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The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2018:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2017	$	20,478		$	2,015,432		$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		1			(1	)		—			—
Earned portion of non-vested stock		15			1,480			—			1,495
Stock option expense					4						4
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units					1,470						1,470
Net income attributable to common unitholders		340			33,549						33,889
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Change in fair value of derivatives, net    of reclassifications		—			—			48			48
Distributions		(463	)		(45,658	)		—			(46,121	)
Balance March 31, 2018	$	20,373		$	2,006,274		$	(7,310	)	$	2,019,337

15. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASU 2014-09 effective as of January 1, 2018. The Company elected to adopt the standard using the modified retrospective transition method. Leases are specifically excluded from the scope of ASU 2014-09, therefore, upon analysis, the Company concluded that the adoption of the new standard did not have any impact on the timing or amounts of the Company’s rental revenue from customers which represents over 90% of the Company’s total operating revenues. The Company also concluded that the adoption of the new standard did not have any material impact on the timing or amounts of the Company’s other material revenue streams and no cumulative effect adjustment was required as of the date of initial application. Payment from such revenue streams is due and generally collected upon invoice. Also, as part of the Company’s adoption of ASU 2014-09, the Company elected to apply the guidance only to contracts that were not completed contracts at the date of initial application. Further, related to the Company’s management fee revenue stream which relates to managing self-storage facilities for third-parties and unconsolidated joint ventures, the Company has elected to apply a practical expedient provided in the new standard which allows the Company to recognize revenue in the amount of management fees to which the Company has a right to invoice as that amount corresponds directly with the value to the customer of the entity’s performance completed to date. With respect to the Company’s revenues related to tenant reinsurance, the Company recognizes revenue based upon the amount that the Company has the right to invoice following the practical expedient in ASC 606-10-55-18 as such amount corresponds directly with the value to the third-party insurer of the entity’s performance completed to date.  

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In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (ASC 842). This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840, “Leases” (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability under this guidance is equal to the present value of lease payments and the right-of-use asset is based on the lease liability, subject to adjustments such as for initial direct costs and prepaid or accrued lease payments. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases result in straight-line expense (similar to previous accounting by lessees for operating leases under ASC 840) while finance leases result in a front-loaded expense pattern (similar to previous accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. The Company adopted ASU 2016-02 effective as of January 1, 2019. Management determined that the application of ASC 842 did not have a significant impact on the Company’s leases existing at the date of adoption where the Company is a lessor. The Company has inventoried all leases where the Company is a lessee as of January 1, 2019 and has examined certain other contracts to identify whether such contracts contain a lease as defined under the new guidance. The Company’s lease population is comprised of leases for land and/or buildings in which certain of the Company’s self-storage facilities operate, as well as leases of corporate office space. All leases where the Company is the lessee qualify as operating leases and the Company does not have any financing leases as of the date of adoption of ASU 2016-02. The aggregate right-of-use assets and related lease liabilities at the initial date of application related to all leases identified by the Company where the Company is a lessee both totaled approximately $16 million. At March 31, 2019, the Company’s aggregate right-of-use assets total $15.5 million and are included in other assets on the consolidated balance sheet. The related lease liabilities total $15.3 million and are included in accounts payable and accrued liabilities on the consolidated balance sheet. No such right-of-use assets or related lease liabilities are recorded at December 31, 2018 as the presentation related to leases at December 31, 2018 continues to reflect the accounting guidance in ASC 840.

Two of the leases for real estate at which the Company operates self-storage facilities include unilateral options for the Company to extend the terms of these leases. However, those extension periods are not included in the terms of the respective leases under ASC 842 due to the Company’s inability to assert that it is reasonably certain to exercise those options based primarily on the length of time before such options would be exercised. One of the Company’s leases of a self-storage facility also provides the Company with the option to purchase the property under lease for $13.3 million. Future lease payments which are based on changes to the consumer price index and future common area maintenance charges related to corporate office space leases have been excluded from the future minimum noncancelable lease payments for the respective leases due to their variable nature. The Company has made the following accounting policy elections and practical expedient elections provided for in ASC 842:

• The package of practical expedients in ASC 842-10-65-1(f) which, if elected, stipulates that for all leases existing at the date of application (1) an entity need not reassess whether any expired or existing contracts contain leases; (2) an entity need not reassess the lease classification for any expired or existing leases; and (3) an entity need not reassess initial direct costs for any existing leases.

• The practical expedient in ASC 842-10-65-1(g) which, if elected, stipulates that an entity may use hindsight at the date of initial application in determining the lease term and in assessing impairment of the entity’s right to use assets.

• The practical expedient in ASC 842-10-65-1(gg) which, if elected, stipulates that an entity need not assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under ASC 842.

• The practical expedient in ASC 842-10-15-37 which, if elected, allows a lessee to choose not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

• The practical expedient in ASC 842-10-15-42A which, if elected, allows a lessor to choose not to separate nonlease components from lease components and, instead, to account for each separate lease component and the nonlease components associated with that lease component as a single lease component if the nonlease components otherwise would be accounted for under ASC 606, “Revenue from Contracts with Customers,” and both (1) the timing and pattern of transfer for the lease component and nonlease component(s) associated with the lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease in accordance with ASC 842-10-25 paragraphs 2 and 3.

• The option in ASC 842-20-25-2 for a lessee to elect, as an accounting policy, not to apply the recognition requirements in ASC 842 to short-term leases and, instead, to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Leases are considered short-term when they have a term of less than one year.

• The Company has elected to define the term “major part,” as referenced in ASC 842-10-25-2 related to the remaining economic life of an asset, as being 75% or more of the remaining economic life of the asset.

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• The Company has elected to define the term “substantially all,” as referenced in ASC 842-10-25-2 related to the fair value of an asset, as being 90% or more of the fair value of the underlying asset.

• The Company has elected to define the term “at or near the end,” as referenced in ASC 842-10-25-2 related to a lease commencement date, as being a date that falls within the last 25% of the total economic life of the underlying asset.

Expenses related to operating leases totaled $0.6 million for the three months ended March 31, 2019. At March 31, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were 10.7 years and 5.3%, respectively.

At March 31, 2019, the Company has no finance leases and we have approximately $19.9 million of operating lease commitments, excluding variable consideration. The undiscounted future minimum lease payments are summarized by year in the table below:

(in thousands)
2019	$	1,968
2020		2,287
2021		2,109
2022		2,109
2023		1,593
Thereafter		9,798
Total	$	19,864

The difference between the amounts included in the table above and the aggregate lease liability recorded in the accompanying consolidated balance sheet at March 31, 2019 is the result of the impact of the discount rate on future minimum lease payments.

In August 2018, the FASB Issued ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which provides guidance to assist entities in accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) incurred by entities that are a customer in a hosting arrangement that is a service contract. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is currently evaluating the impact of adopting ASU 2018-15 on its consolidated financial statements.

16. COMMITMENT AND CONTINGENCIES

At March 31, 2019, the Company was under contract to acquire 16 self-storage facilities for an aggregate purchase price of $177.7 million. Three of these 16 self-storage facilities were acquired by the Company subsequent to March 31, 2019 for a purchase price of $33.0 million. The purchase of the remaining 13 facilities is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.

At March 31, 2019, the Company has signed contracts in place with third-party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $31.2 million under these contracts in 2019 and 2020.

17. SUBSEQUENT EVENTS

Commencing April 1, 2019, the Company launched a tenant self-storage insurance program whereby a captive wholly-owned subsidiary of the Company reinsures certain risks relating to property stored by its tenants. In connection with this new program, the Company’s prior arrangement with a third-party insurer was terminated. The change in tenant insurance programs is not expected to have a significant impact on the Company’s consolidated net income. However, the Company does expect an increase to both tenant reinsurance revenues and related expenses as a result of the differences in the accounting for the two programs.

On April 2, 2019, the Company declared a quarterly dividend of $1.00 per common share. The dividend was paid on April 26, 2019 to shareholders of record on April 16, 2019. The total dividend paid amounted to $46.6 million.

As discussed in Note 16, on April 30, 2019, the Company acquired three self-storage facilities for a purchase price of $33.0 million.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the Company’s consolidated financial condition and results of operations should be read in conjunction with the unaudited financial statements and notes thereto included elsewhere in this report.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

When used in this discussion and elsewhere in this document, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the effect of competition from new self-storage facilities, which would cause rents and occupancy rates to decline; the Company’s ability to evaluate, finance and integrate acquired businesses into the Company’s existing business and operations; the Company’s ability to effectively compete in the industry in which it does business; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; any future ratings on the Company’s debt instruments; regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s reliance on its call center; and tax law changes that may change the taxability of future income.

RESULTS OF OPERATIONS

FOR THE PERIOD JANUARY 1, 2019 THROUGH MARCH 31, 2019, COMPARED TO THE PERIOD JANUARY 1, 2018 THROUGH MARCH 31, 2018

We recorded rental revenues of $124.1 million for the three months ended March 31, 2019, an increase of $2.5 million or 2.1% when compared to rental revenues of $121.6 million for the same period in 2018. Of the increase in rental revenue, $3.0 million resulted from a 2.5% increase in rental revenues at the 538 core properties considered in same store sales (the Company will include stores in its same store pool in the second year after the stores achieve 80% sustained occupancy using market rates and incentives; therefore the 538 core properties considered in same store sales are those included in the consolidated results of operations since January 1, 2018, excluding stores not yet stabilized, the properties we sold in 2018, five stores significantly impacted by flooding in 2017, and two stores that the Company began to fully replace in 2017). The increase in same store rental revenues was a result of a 3.5% increase in rental income per square foot, partially offset by a 110 basis point decrease in average occupancy. This increase was partially offset by a decrease in rental revenue of $0.4 million related to the revenues from the stores not included in the same store pool. Other operating income, which includes merchandise sales, revenues related to tenant reinsurance, truck rentals, management fees and acquisition fees, increased by $0.9 million for the three months ended March 31, 2019 compared to the same period in 2018 primarily as a result of increased management fees earned as a result of an increase in managed properties.

Property operations and maintenance expenses increased $0.7 million or 2.3% in the three months ended March 31, 2019 compared to the same period in 2018. Expenses related to the 538 core properties considered in the same store pool remained relatively consistent with a $0.1 million or 0.5% increase in operating expenses. The remaining increase of $0.6 million is a result of the net activity of the stores not included in the same store pool. Real estate tax expense increased $0.7 million as a result of a 5.8% increase in property taxes on the 538 core properties considered in the same store pool and the inclusion of taxes on the properties acquired in 2019 and 2018.

Net operating income increased $2.0 million or 2.3% resulting from a 2.5% increase in our same store net operating income along with the impact of the properties acquired since January 1, 2018 and stores not yet stabilized.

Net operating income, or “NOI,” is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expense, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and the book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income. There are material limitations to using a measure such as NOI, including the difficulty associated with comparing results among more than one company and the inability to analyze certain significant items, including depreciation and interest expense, that directly affect our net income. We compensate for these limitations by considering the economic effect of the excluded expense items independently as well as in connection with our analysis of net income.

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The following table reconciles our net income presented in the consolidated financial statements to NOI generated by our self-storage facilities for the three months ended March 31, 2019 and 2018.

	Three Months ended March 31,
(dollars in thousands)	2019			2018
Net income	$	34,637		$	34,049
General and administrative		12,337			12,044
Payments for rent		141			141
Depreciation and amortization		26,227			24,764
Interest expense		17,819			17,204
Interest income		(5	)		(4	)
Gain on sale of real estate		(1,076	)		—
Equity in income of joint ventures		(811	)		(972	)
Net operating income	$	89,269		$	87,226
Net operating income
Same store	$	79,017		$	77,075
Other stores, tenant reinsurance related income    and management fee income		10,252			10,151
Total net operating income	$	89,269		$	87,226

Our 2019 same store results consist of only those properties that have been owned by the Company and included in our consolidated results since January 1, 2018, excluding stores not yet stabilized, the properties we sold in 2018, five stores significantly impacted by flooding in 2017, and two stores that the Company began to fully replace in 2017. The impact of tenant reinsurance related items is excluded from same store results. The following table sets forth operating data for our 538 same store properties. These results provide information relating to property operating changes without the effects of acquisitions.

Same Store Summary

	Three Months ended March 31,				Percentage
(dollars in thousands)	2019		2018		Change
Same store rental income	$	120,456	$	117,487		2.5	%
Same store other operating income		1,631		1,687		(3.3	)%
Total same store operating income		122,087		119,174		2.4	%
Payroll and benefits		10,424		10,649		(2.1	)%
Real estate taxes		15,402		14,556		5.8	%
Utilities		3,986		4,174		(4.5	)%
Repairs and maintenance		5,221		4,759		9.7	%
Office and other operating expenses		4,051		4,230		(4.2	)%
Insurance		1,493		1,451		2.9	%
Advertising		310		333		(6.9	)%
Internet marketing		2,183		1,947		12.1	%
Total same store operating expenses		43,070		42,099		2.3	%
Same store net operating income	$	79,017	$	77,075		2.5	%

			Change
Quarterly same store move ins	46,967	48,991		(2,024	)
Quarterly same store move outs	45,827	47,028		(1,201	)

We believe the decrease in same store move ins was due to increased competition and customer rate sensitivity in certain markets. We believe the decrease in same store move outs was a result of customers increasing their length of stay.

29

General and administrative expenses for the three months ended March 31, 2019 increased $0.3 million or 2.4% when compared with the three months ended March 31, 2018. The increase was due to an increase in home office payroll primarily related to the accelerated vesting of Mr. Rogers’ restricted stock awards and performance-based awards as discussed in Note 3, along with increases in technology related expenses. These increases were partially offset by approximately $1.1 million of costs incurred in 2018 associated with changes to the composition of the Company’s Board of Directors and other proxy matters that did not recur in 2019.

Depreciation and amortization expense increased to $26.2 million in the three months ended March 31, 2019 from $24.8 million in the same period of 2018 as a result of depreciation and amortization related to self-storage facilities acquired in 2018 and 2019.

Total interest expense increased $0.6 million in the three months ended March 31, 2019 as compared to the same period in 2018 primarily as a result of increased outstanding debt balances in 2019 as compared to 2018.

FUNDS FROM OPERATIONS

We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.

FFO is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance FFO should be compared with our reported net income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

Reconciliation of Net (Loss) Income to Funds From Operations (unaudited)

	Three Months ended March 31,
(in thousands)	2019			2018
Net income attributable to common shareholders	$	34,454		$	33,889
Net income attributable to noncontrolling interests in the    Operating Partnership		183			160
Depreciation of real estate and amortization of intangible    assets exclusive of debt issuance costs		25,806			24,256
Depreciation and amortization from unconsolidated joint    ventures		1,410			1,197
Funds from operations allocable to noncontrolling  interest    in the Operating Partnership		(326	)		(280	)
Funds from operations available to common shareholders	$	61,527		$	59,222

LIQUIDITY AND CAPITAL RESOURCES

Our line of credit and term notes require us to meet certain financial covenants measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness, and limitations on dividend payouts. At March 31, 2019, the Company was in compliance with all debt covenants. In the event that the Company violates its debt covenants in the future, the amounts due under the agreements could be callable by the lenders and could adversely affect our credit rating requiring us to pay higher interest and other debt-related costs. We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at March 31, 2019, the entire availability under our line of credit could be drawn without violating our debt covenants.

30

Our ability to retain cash flow is limited because we operate as a REIT. In order to maintain our REIT status, a substantial portion of our operating cash flow must be used to pay dividends to our shareholders. We believe that our internally generated net cash provided by operating activities and the availability on our line of credit will be sufficient to fund ongoing operations, capital improvements, dividends and debt service requirements.

Cash flows from operating activities were $34.9 million and $29.6 million for the three months ended March 31, 2019 and 2018, respectively. The increase in operating cash flows in the 2019 period compared to the 2018 period was primarily due to the increase in net income after adjusting for non-cash items.

Cash used in investing activities was $75.0 million and $9.4 million for the three months ended March 31, 2019 and 2018, respectively. The increase in cash used in investing activities in the 2019 period compared to the 2018 period was primarily due to the increased volume of acquisitions in 2019 as compared to the same period in 2018, along with increased expenditures on improvements and equipment additions, increased contributions made to unconsolidated joint ventures, and increased property deposits made.

Cash provided by financing activities was $39.0 million for the three months ended March 31, 2019, compared to cash used in financing activities of $21.4 million for the three months ended March 31, 2018. The change is primarily a result of an increase in net borrowings against the Company’s revolving line of credit during the first quarter of 2019 which was used largely to pay for acquisitions in the first quarter of 2019.

Note 6 and Note 7 to the consolidated financial statements include details related to the Company’s unsecured line of credit, term notes, mortgages, and other indebtedness. Note 13 to the consolidated financial statements includes details of our shareholders’ equity and activity related thereto.

Our line of credit facility and term notes have an investment grade rating from Standard and Poor’s (BBB) and Moody’s (Baa2).

Future acquisitions, our expansion and enhancement program, and share repurchases are expected to be funded with draws on our line of credit, issuance of common and preferred stock, the issuance of unsecured term notes, sale of properties, and private placement solicitation of joint venture equity. Should the capital markets deteriorate, we may have to curtail acquisitions, our expansion and enhancement program and share repurchases.    

ACQUISITION AND DISPOSITION OF PROPERTIES

During the three months ended March 31, 2019, the Company acquired two self-storage facilities comprising 176,000 square feet in New York (1) and Florida (1) for a total purchase price of $66.5 million. As both of these acquisitions were in the lease-up phase, based on the trailing financial information of the entities from which the properties were acquired, the weighted average capitalization rate for these acquisitions was 0.9%. As discussed further in Note 5, the Company held a 40% ownership interest in one of the properties acquired prior to the acquisition of the remaining 60% ownership interest in the first quarter of 2019. The Company did not dispose of any properties during the three months ended March 31, 2019.

During 2018, the Company acquired eight self-storage facilities comprising 474,500 square feet in California (2), Florida (1), Georgia (1), Missouri (1), New Hampshire (1) and New York (2) for a total purchase price of $77.7 million. Based on the financial information of the entities from which the properties were acquired, the weighted average capitalization rate for these acquisitions was 2.8%.

In the first quarter of 2019, the Company entered into contracts to acquire 16 self-storage facilities for an aggregate purchase price of $177.7 million. Three of these 16 self-storage facilities were acquired by the Company subsequent to March 31, 2019 for a purchase price of $33.0 million. The purchase of the remaining 13 facilities is subject to customary conditions to closing, and there are no assurances that these facilities will be acquired.

We may acquire additional stabilized or newly constructed properties in 2019.

During 2018, the Company sold 13 non-strategic self-storage facilities in Arizona (2), Florida (1), North Carolina (1), Texas (8) and Virginia (1) for net proceeds of approximately $100.5 million, which includes a $9.1 million investment retained in an unconsolidated joint venture, resulting in a $56.4 million gain on sale. Twelve of these properties were sold to an unconsolidated joint venture in which the Company has a 20% ownership interest.

We may also seek to sell additional properties to third-parties or joint venture partners in 2019.

31

FUTURE ACQUISITION AND DEVELOPMENT PLANS

Our external growth strategy is to increase the number of facilities we own by acquiring suitable facilities in markets in which we already have operations, or to expand into new markets by acquiring several facilities at once in those new markets. We are actively pursuing acquisitions in 2019, including potential acquisitions by unconsolidated joint ventures.

In the three months ended March 31, 2019, we added 97,500 square feet to existing properties for a total cost of approximately $7.6 million. We plan to complete an additional $40 million to $50 million of expansions and enhancements to our existing facilities in 2019, of which $23.9 million was paid as of March 31, 2019.

We also expect to continue investing in capital expenditures on our properties. This includes roofing, paving, and remodeling of store offices. For the three months ended March 31, 2019, we invested approximately $3.0 million in such improvements and we expect to invest approximately $17 million to $22 million for the remainder of 2019.

REIT QUALIFICATION AND DISTRIBUTION REQUIREMENTS

As a REIT, we are not required to pay federal income tax on income that we distribute to our shareholders, provided that we satisfy certain requirements, including distributing at least 90% of our REIT taxable income for a taxable year. These distributions must be made in the year to which they relate, or in the following year if declared before we file our federal income tax return, and if they are paid not later than the date of the first regular dividend of the following year. As a REIT, we must derive at least 95% of our total gross income from income related to real property, interest and dividends.

Although we currently intend to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause our Board of Directors to revoke our REIT election.

UMBRELLA PARTNERSHIP REIT

We are formed as an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) and, as such, have the ability to issue Operating Partnership Units in exchange for properties sold by independent owners. By utilizing such Units as currency in facility acquisitions, we may obtain more favorable pricing or terms due to the seller’s ability to partially defer their income tax liability. As of March 31, 2019, 248,966 Units are outstanding. These Units had been issued in exchange for self-storage properties at the request of the sellers.

INTEREST RATE RISK

The primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control.

Based on our outstanding unsecured floating rate debt of $277 million at March 31, 2019, a 100 basis point increase in interest rates would have a $2.8 million effect on our annual interest expense. This amount was determined by considering the impact of the hypothetical interest rates on our borrowing cost on March 31, 2019. This analysis does not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.

INFLATION

We do not believe that inflation has had or will have a direct effect on our operations. Substantially all of the leases at our facilities are on a month-to-month basis which provides us with the opportunity to increase rental rates in a timely manner in response to any potential future inflationary pressures.

SEASONALITY

Our revenues typically have been higher in the third and fourth quarters, primarily because self-storage facilities tend to experience greater occupancy during the late spring, summer and early fall months due to the greater incidence of residential moves and college student activity during these periods. However, we believe that our customer mix, diverse geographic locations, rental structure and expense structure provide adequate protection against undue fluctuations in cash flows and net revenues during off-peak seasons. Thus, we do not expect seasonality to materially affect distributions to shareholders.

32

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 15 to the financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The information required is incorporated by reference to the information appearing under the caption “Interest Rate Risk” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” above.

Item 4. Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Parent Company

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, has been conducted under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at March 31, 2019. There have not been changes in the Company’s internal controls or in other factors that could significantly affect these controls during the quarter ended March 31, 2019.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as defined in 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934) that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Operating Partnership

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, has been conducted under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at March 31, 2019. There have not been changes in the Operating Partnership’s internal controls or in other factors that could significantly affect these controls during the quarter ended March 31, 2019.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Operating Partnership’s internal control over financial reporting (as defined in 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934) that occurred during the Operating Partnership’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

33

PART II. Other Information

Item 1. Legal Proceedings

None

Item  1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2018, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and operating results.

Item  2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) The following table summarizes our purchases of our common stock from August 2, 2017 through March 31, 2019.

Issuer Purchases of Equity Securities

Period	(a) Total number of shares purchased		(b) Average price paid per share		(c) Total number of shares purchased as part of publicly announced plans or programs (1)		(d) Approx. dollar value of shares that may yet be purchased under the plans or programs (1)
August 2, 2017 - August 31, 2017		92,150	$	72.98		92,150	$	193,274,647
September 1, 2017 - September 30, 2017		20,404		73.94		20,404		191,765,955
October 1, 2017 - December 31, 2017		—		—		—		—
January 1, 2018 - March 31, 2018		—		—		—		—
April 1, 2018 - June 30, 2018		—		—		—		—
July 1, 2018 - September 30, 2018		—		—		—		—
October 1, 2018 - December 31, 2018		—		—		—		—
January 1, 2019 - March 31, 2019		—		—		—		—
Total		112,554		73.16		112,554	$	191,765,955

(1) On August 2, 2017, the Company’s Board of Directors authorized the repurchase of up to $200 million of the Company’s common stock. The program does not have an expiration date but may be suspended or discontinued at any time.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

34

Item 6. Exhibits

31.1	Certification of Chief Executive Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.2	Certification of Chief Financial Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.3	Certification of Chief Executive Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.4	Certification of Chief Financial Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
32	Certification of Chief Executive Officer and Chief Financial Officer of Life Storage, Inc. Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer of Life Storage LP Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements from the Parent Company’s and the Operating Partnership’s Quarterly Report on Form    10-Q for the quarter ended March 31, 2019, formatted in XBRL, as follows:
	(i) Consolidated Balance Sheets at March 31, 2019 and December 31, 2018;
	(ii) Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018;
	(iii) Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018;
	(iv) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018; and
	(v) Notes to Consolidated Financial Statements.

35

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Life Storage, Inc.
By:	/S/ Andrew J. Gregoire
	Andrew J. Gregoire
	Chief Financial Officer
	(Principal Accounting Officer)

May 2, 2019

Date

Life Storage LP
By:	/S/ Andrew J. Gregoire
	Andrew J. Gregoire
	Chief Financial Officer
	(Principal Accounting Officer)

May 2, 2019

Date

36

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the

Securities Exchange Act, as amended

I, Joseph V. Saffire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2019

/S/ Joseph V. Saffire 

Joseph V. Saffire

Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the

Securities Exchange Act, as amended

I, Andrew J. Gregoire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2019

/S/ Andrew J. Gregoire 

Andrew J. Gregoire

Chief Financial Officer

EX-31.3

Exhibit 31.3

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the

Securities Exchange Act, as amended

I, Joseph V. Saffire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2019

/S/ Joseph V. Saffire 

Joseph V. Saffire

Chief Executive Officer

EX-31.4

Exhibit 31.4

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the

Securities Exchange Act, as amended

I, Andrew J. Gregoire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: May 2, 2019

/S/ Andrew J. Gregoire

Andrew J. Gregoire

Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned of Life Storage, Inc. (the “Company”) does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 2, 2019

/S/ Joseph V. Saffire 

Joseph V. Saffire

Chief Executive Officer

/S/ Andrew J. Gregoire 

Andrew J. Gregoire

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C.

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned of Life Storage LP (the “Company”) does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Quarterly Report on Form 10-Q of the Company for the period ended March 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 2, 2019

/S/ Joseph V. Saffire 

Joseph V. Saffire

Chief Executive Officer

/S/ Andrew J. Gregoire 

Andrew J. Gregoire

Chief Financial Officer

XML

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	Mar. 31, 2019	Apr. 22, 2019
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Trading Symbol	LSI
Entity Registrant Name	LIFE STORAGE, INC.
Entity Central Index Key	0000944314
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		46,632,703
Life Storage LP [Member]
Document Information [Line Items]
Entity Registrant Name	LIFE STORAGE LP
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		46,632,703

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Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Investment in storage facilities:
Land	$ 826,917	$ 794,729
Building, equipment, and construction in progress	3,648,239	3,604,210
Real estate investment property, at cost, total	4,475,156	4,398,939
Less: accumulated depreciation	(729,296)	(704,681)
Investment in storage facilities, net	3,745,860	3,694,258
Cash and cash equivalents	8,875	13,560
Accounts receivable	9,327	7,805
Receivable from unconsolidated joint ventures	1,807	1,006
Investment in unconsolidated joint ventures	135,342	145,911
Prepaid expenses	10,213	7,251
Trade name	16,500	16,500
Other assets	30,879	5,921
Total Assets	3,958,803	3,892,212
Liabilities
Line of credit	177,000	91,000
Term notes, net	1,611,344	1,610,820
Accounts payable and accrued liabilities	77,513	87,446
Deferred revenue	9,907	9,191
Mortgages payable	12,204	12,302
Total Liabilities	1,887,968	1,810,759
Noncontrolling redeemable Operating Partnership Units at redemption value	23,944	23,716
Shareholders' Equity/ Partners' Capital
Common stock $.01 par value, 100,000,000 shares authorized, 46,632,703 shares outstanding at March 31, 2019 (46,617,441 at December 31, 2018)	466	466
Additional paid-in capital	2,373,553	2,372,157
Dividends in excess of net income	(320,482)	(308,011)
Accumulated other comprehensive loss	(6,646)	(6,875)
Total Shareholders’ Equity	2,046,891	2,057,737
Noncontrolling interest in consolidated subsidiary	0	0
Total Equity	2,046,891	2,057,737
Total Liabilities and Shareholders' Equity/ Partners' Capital	3,958,803	3,892,212
Life Storage LP [Member]
Investment in storage facilities:
Land	826,917	794,729
Building, equipment, and construction in progress	3,648,239	3,604,210
Real estate investment property, at cost, total	4,475,156	4,398,939
Less: accumulated depreciation	(729,296)	(704,681)
Investment in storage facilities, net	3,745,860	3,694,258
Cash and cash equivalents	8,875	13,560
Accounts receivable	9,327	7,805
Receivable from unconsolidated joint ventures	1,807	1,006
Investment in unconsolidated joint ventures	135,342	145,911
Prepaid expenses	10,213	7,251
Trade name	16,500	16,500
Other assets	30,879	5,921
Total Assets	3,958,803	3,892,212
Liabilities
Line of credit	177,000	91,000
Term notes, net	1,611,344	1,610,820
Accounts payable and accrued liabilities	77,513	87,446
Deferred revenue	9,907	9,191
Mortgages payable	12,204	12,302
Total Liabilities	1,887,968	1,810,759
Limited partners’ redeemable capital interest at redemption value (248,966 units outstanding at March 31, 2019 and December 31, 2018)	23,944	23,716
Shareholders' Equity/ Partners' Capital
General partner (468,816 and 468,663 units outstanding at March 31, 2019 and December 31, 2018, respectively)	20,710	20,816
Limited partners (46,163,887 and 46,148,778 units outstanding at March 31, 2019 and December 31, 2018, respectively)	2,032,827	2,043,796
Accumulated other comprehensive loss	(6,646)	(6,875)
Total Controlling Partners’ Capital	2,046,891	2,057,737
Noncontrolling interest in consolidated subsidiary	0	0
Total Partners' Capital	2,046,891	2,057,737
Total Liabilities and Shareholders' Equity/ Partners' Capital	$ 3,958,803	$ 3,892,212

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Dec. 31, 2018
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	46,632,703	46,617,441
Life Storage LP [Member]
Limited partners’ redeemable capital interest, units outstanding	248,966	248,966
General partner, units outstanding	468,816	468,663
Limited partner, units outstanding	46,163,887	46,148,778

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Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenues
Rental income	$ 124,146	$ 121,624
Other operating income	12,376	11,470
Total operating revenues	136,522	133,094
Expenses
Property operations and maintenance	31,161	30,449
Real estate taxes	16,092	15,419
General and administrative	12,337	12,044
Payments for rent	141	141
Depreciation and amortization	26,227	24,764
Total operating expenses	85,958	82,817
Gain on sale of real estate	1,076
Income from operations	51,640	50,277
Other income (expenses)
Interest expense	(17,819)	(17,204)
Interest income	5	4
Equity in income of joint ventures	811	972
Net income	34,637	34,049
Net income attributable to noncontrolling interest in the Operating Partnership	(183)	(160)
Net loss attributable to noncontrolling interest in consolidated subsidiary	0	0
Net income attributable to common shareholders/unitholders	$ 34,454	$ 33,889
Earnings per common share/unit attributable to common shareholders/unitholders - basic	$ 0.74	$ 0.73
Earnings per common share/unit attributable to common shareholders/unitholders - diluted	$ 0.74	$ 0.73
Common shares/units used in basic earnings per share/unit calculation	46,564,846	46,452,492
Common shares/units used in diluted earnings per share/unit calculation	46,636,700	46,536,672
Dividends/distributions declared per common share/unit	$ 1.00	$ 1.00
Life Storage LP [Member]
Revenues
Rental income	$ 124,146	$ 121,624
Other operating income	12,376	11,470
Total operating revenues	136,522	133,094
Expenses
Property operations and maintenance	31,161	30,449
Real estate taxes	16,092	15,419
General and administrative	12,337	12,044
Payments for rent	141	141
Depreciation and amortization	26,227	24,764
Total operating expenses	85,958	82,817
Gain on sale of real estate	1,076
Income from operations	51,640	50,277
Other income (expenses)
Interest expense	(17,819)	(17,204)
Interest income	5	4
Equity in income of joint ventures	811	972
Net income	34,637	34,049
Net income attributable to noncontrolling interest in the Operating Partnership	(183)	(160)
Net loss attributable to noncontrolling interest in consolidated subsidiary	0	0
Net income attributable to common shareholders/unitholders	$ 34,454	$ 33,889
Earnings per common share/unit attributable to common shareholders/unitholders - basic	$ 0.74	$ 0.73
Earnings per common share/unit attributable to common shareholders/unitholders - diluted	$ 0.74	$ 0.73
Common shares/units used in basic earnings per share/unit calculation	46,564,846	46,452,492
Common shares/units used in diluted earnings per share/unit calculation	46,636,700	46,536,672
Dividends/distributions declared per common share/unit	$ 1.00	$ 1.00
Net income attributable to general partner	$ 346	$ 340
Net income attributable to limited partners	$ 34,108	$ 33,549

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net income	$ 34,637	$ 34,049
Other comprehensive income:
Effective portion of gain on derivatives net of reclassification to interest expense	229	277
Total comprehensive income	34,866	34,326
Comprehensive income attributable to noncontrolling interest in the Operating Partnership	(184)	(161)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary	0	0
Comprehensive income attributable to common shareholders/unitholders	34,682	34,165
Life Storage LP [Member]
Net income	34,637	34,049
Other comprehensive income:
Effective portion of gain on derivatives net of reclassification to interest expense	229	277
Total comprehensive income	34,866	34,326
Comprehensive income attributable to noncontrolling interest in the Operating Partnership	(184)	(161)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary	0	0
Comprehensive income attributable to common shareholders/unitholders	$ 34,682	$ 34,165

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating Activities
Net income	$ 34,637,000	$ 34,049,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,227,000	24,764,000
Amortization of debt issuance costs and bond discount	903,000	891,000
Gain on sale of real estate	(1,076,000)
Equity in income of joint ventures	(811,000)	(972,000)
Distributions from unconsolidated joint ventures	2,404,000	2,037,000
Non-vested stock earned	1,396,000	1,495,000
Stock option expense	0	4,000
Deferred income taxes	(175,000)	148,000
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable	(1,520,000)	45,000
Prepaid expenses	(3,106,000)	(10,578,000)
(Advances to) receipts from joint ventures	(801,000)	497,000
Accounts payable and other liabilities	(23,825,000)	(23,749,000)
Deferred revenue	634,000	973,000
Net cash provided by operating activities	34,887,000	29,604,000
Investing Activities
Acquisition of storage facilities, net of cash acquired	(55,132,000)
Improvements, equipment additions, and construction in progress	(12,036,000)	(8,755,000)
Investment in unconsolidated joint ventures	(1,792,000)	(706,000)
Property deposits	(6,000,000)	29,000
Net cash used in investing activities	(74,960,000)	(9,432,000)
Financing Activities
Proceeds from line of credit	107,000,000	68,000,000
Repayments of line of credit	(21,000,000)	(43,000,000)
Dividends paid - common stock	(46,631,000)	(46,121,000)
Distributions to noncontrolling interest holders	(249,000)	(217,000)
Mortgage principal payments	(98,000)	(93,000)
Net cash provided by (used in) financing activities	39,022,000	(21,431,000)
Net decrease in cash and restricted cash	(1,051,000)	(1,259,000)
Cash and restricted cash at beginning of period	14,065,000	9,459,000
Cash and restricted cash at end of period	13,014,000	8,200,000
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	19,642,000	19,140,000
Cash paid for income taxes, net of refunds	346,000	322,000
Life Storage LP [Member]
Operating Activities
Net income	34,637,000	34,049,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	26,227,000	24,764,000
Amortization of debt issuance costs and bond discount	903,000	891,000
Gain on sale of real estate	(1,076,000)
Equity in income of joint ventures	(811,000)	(972,000)
Distributions from unconsolidated joint ventures	2,404,000	2,037,000
Non-vested stock earned	1,396,000	1,495,000
Stock option expense		4,000
Deferred income taxes	(175,000)	148,000
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable	(1,520,000)	45,000
Prepaid expenses	(3,106,000)	(10,578,000)
(Advances to) receipts from joint ventures	(801,000)	497,000
Accounts payable and other liabilities	(23,825,000)	(23,749,000)
Deferred revenue	634,000	973,000
Net cash provided by operating activities	34,887,000	29,604,000
Investing Activities
Acquisition of storage facilities, net of cash acquired	(55,132,000)
Improvements, equipment additions, and construction in progress	(12,036,000)	(8,755,000)
Investment in unconsolidated joint ventures	(1,792,000)	(706,000)
Property deposits	(6,000,000)	29,000
Net cash used in investing activities	(74,960,000)	(9,432,000)
Financing Activities
Proceeds from line of credit	107,000,000	68,000,000
Repayments of line of credit	(21,000,000)	(43,000,000)
Distributions to unitholders	(46,631,000)	(46,121,000)
Distributions to noncontrolling interest holders	(249,000)	(217,000)
Mortgage principal payments	(98,000)	(93,000)
Net cash provided by (used in) financing activities	39,022,000	(21,431,000)
Net decrease in cash and restricted cash	(1,051,000)	(1,259,000)
Cash and restricted cash at beginning of period	14,065,000	9,459,000
Cash and restricted cash at end of period	13,014,000	8,200,000
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	19,642,000	19,140,000
Cash paid for income taxes, net of refunds	$ 346,000	$ 322,000

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Basis of Presentation

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Life Storage, Inc. (the “Parent Company”) and Life Storage LP (the “Operating Partnership”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.

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Organization

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

2. ORGANIZATION

The Parent Company operates as a self-administered and self-managed real estate investment trust (a “REIT”) that owns and operates self-storage properties. All of the Parent Company’s assets are owned by, and all its operations are conducted through, the Operating Partnership. Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and, through its ownership of Holdings and its limited partnership interest, controls the operations of the Operating Partnership, holding a 99.5% ownership interest therein as of March 31, 2019. The remaining ownership interests in the Operating Partnership (the “Units”) are held by certain former owners of assets acquired by the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

At March 31, 2019, we had an ownership interest in, and/or managed 780 self-storage properties in 28 states and Ontario, Canada. Among our 780 self-storage properties are 114 properties that we manage for unconsolidated joint ventures (see Note 10) and 103 properties that we manage and in which we have no ownership interest.

We consolidate all wholly owned subsidiaries. Partially owned entities, including joint ventures, are consolidated when we control the entity. Our consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, Life Storage Solutions, LLC (one of the Parent Company’s taxable REIT subsidiaries), Warehouse Anywhere LLC (an entity owned 60% by Life Storage Solutions, LLC), and all other wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Investments in joint ventures that we do not control but over which we have significant influence are accounted for using the equity method.

Included in the Parent Company’s consolidated balance sheets are noncontrolling redeemable Operating Partnership Units and included in the Operating Partnership’s consolidated balance sheets are limited partners’ redeemable capital interest at redemption value. These interests are presented in the “mezzanine” section of the consolidated balance sheets because they do not meet the functional definition of a liability or equity under current accounting literature. These represent the outside ownership interests of the limited partners in the Operating Partnership. At March 31, 2019 and December 31, 2018, there were 248,966 noncontrolling redeemable Operating Partnership Units outstanding. These unitholders are entitled to receive distributions per unit equivalent to the dividends declared per share on the Parent Company’s common stock. The Operating Partnership is obligated to redeem each of these limited partnership units in the Operating Partnership at the request of the holder thereof for cash equal to the fair market value of a share of the Parent Company’s common stock based on a 10-day average of the daily market price, at the time of such redemption, provided that the Company, at its option, may elect to acquire any such Unit presented for redemption for one common share or cash. The Company accounts for these noncontrolling redeemable Operating Partnership Units under the provisions of Accounting Standards Codification (ASC) Topic 480-10-S99. The application of the ASC Topic 480-10-S99 accounting model requires the noncontrolling interest to follow normal noncontrolling interest accounting and then be marked to redemption value at the end of each reporting period if higher (but never adjusted below that normal noncontrolling interest accounting amount). The offset to the adjustment to the carrying amount of the noncontrolling interests is reflected in the Company’s dividends in excess of net income and in the Operating Partnership’s general partner and limited partners capital balances. Accordingly, in the accompanying consolidated balance sheets, noncontrolling interests are reflected at redemption value at March 31, 2019 and December 31, 2018, equal to the number of noncontrolling interest units outstanding multiplied by the fair market value of the Parent Company’s common stock at that date. Redemption value exceeded the value determined under the Company’s historical basis of accounting at those dates.

The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units and the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Three Months Ended March 31, 2019
Beginning balance	$	23,716
Net income attributable to noncontrolling interest in the    Operating Partnership		183
Distributions		(249	)
Adjustment to redemption value		294
Ending balance	$	23,944

The disaggregated revenues of the Company presented in accordance with ASC Topic 606 “Revenue from Contracts with Customers” are as follows:

(dollars in thousands)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Rental income	$	124,146	$	121,624
Management and acquisition fee income		3,086		2,395
Revenues related to tenant reinsurance		5,815		5,717
Other		3,475		3,358
Total operating revenues	$	136,522	$	133,094

Management and acquisition fee income and revenues related to tenant reinsurance are included in other operating income in the consolidated statements of operations.

During the three months ended March 31, 2019, approximately 21% and 13% of the Company’s revenue was derived from self-storage facilities in the states of Texas and Florida, respectively.

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Stock Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Based Compensation

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation - Stock Compensation.” The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period.

For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

The Company did not record any compensation expense related to stock options during the three months ended March 31, 2019. For the three months ended March 31, 2018, the Company recorded compensation expense (included in general and administrative expense) of $4,000 related to stock options. For the three months ended March 31, 2019 and 2018, the Company recorded compensation expense of $1,396,000 and $1,495,000, respectively, related to amortization of non-vested stock grants and performance-based awards.    

No stock options were exercised by employees and directors during the three months ended March 31, 2019 and 2018. During the three months ended March 31, 2019 and 2018, 16,821 and 36,191 shares of non-vested stock, respectively, vested.

During the three months ended March 31, 2019, the Company issued 1,000 shares of non-vested stock to employees which vest over five years. The per-share fair market value on the date of grant of the non-vested stock issued during the three months ended March 31, 2019 was $99.10, resulting in an aggregate fair value of $99,100.

In September 2018, the Company announced that then current Chief Executive Officer, David Rogers, would be retiring effective March 1, 2019. In conjunction with this announcement, the vesting periods of certain restricted stock awards and performance-based awards previously granted to Mr. Rogers were accelerated to reflect his March 1, 2019 retirement date. As a result of this change, an additional $0.4 million of compensation expense was recorded during the three months ended March 31, 2019.

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Cash and Restricted Cash

3 Months Ended

Mar. 31, 2019

Cash And Cash Equivalents [Abstract]

Cash and Restricted Cash

4. CASH AND RESTRICTED CASH

Restricted cash represents those amounts required to be placed in escrow by banks with whom the Company has entered into mortgages and amounts required to be placed into escrow related to the Company’s tenant reinsurance program which became effective April 1, 2019 (see Note 17). Restricted cash is included in other assets in the consolidated balance sheets. The following table provides a reconciliation of cash and restricted cash reported within the consolidated statement of cash flows:

(Dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018		Mar. 31, 2018
Cash	$	8,875	$	13,560	$	7,778
Restricted cash		4,139		505		422
Total cash and restricted cash		13,014		14,065		8,200

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Investment in Storage Facilities and Intangible Assets

3 Months Ended

Mar. 31, 2019

Real Estate [Abstract]

Investment in Storage Facilities and Intangible Assets

5. INVESTMENT IN STORAGE FACILITIES AND INTANGIBLE ASSETS

The following summarizes our activity in storage facilities during the three months ended March 31, 2019:

(dollars in thousands)
Cost:
Beginning balance	$	4,398,939
Acquisition of storage facilities		66,086
Improvements and equipment additions		10,937
Net increase in construction in progress		996
Dispositions		(1,802	)
Ending balance	$	4,475,156
Accumulated  Depreciation:
Beginning balance	$	704,681
Additions during the period		25,851
Dispositions		(1,236	)
Ending balance	$	729,296

The Company acquired two self-storage facilities during the three months ended March 31, 2019. The acquisitions of these facilities were accounted for as asset acquisitions. The costs of the facilities, including closing costs, were allocated to land, building, equipment and improvements, and in-place customer leases based upon their relative fair values.

The purchase prices of the facilities acquired in 2019 have been assigned as follows:

(dollars in thousands)						Consideration paid								Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition	Purchase Price		Cash Paid		Carrying Value of Noncontrolling Interest in Joint Venture		Mortgage Assumed		Net Other Liabilities (Assets) Assumed		Land		Building, Equipment, and Improvements		In-Place Customers Leases		Closing Costs Expensed
NY		1	1/16/2019	$	57,169	$	46,402	$	10,715	$	—	$	52	$	30,029	$	26,863	$	277	$	—
FL		1	3/8/2019		9,302		9,222		—		—		80		1,817		7,377		108		—
Total acquired in 2019		2		$	66,471	$	55,624	$	10,715	$	—	$	132	$	31,846	$	34,240	$	385		—

The facility purchased in New York was acquired as the result of the Company’s acquisition of the remaining 60% ownership interest in Review Avenue Partners, LLC (“RAP”). Prior to this acquisition, RAP was a joint venture between the Company and an otherwise unrelated third-party which had been accounted for by the Company using the equity method of accounting (see Note 10 for additional information on RAP). The purchase price for this acquisition includes the carrying value of the Company’s equity investment in RAP of $10.7 million at the time of the acquisition. The facility acquired in Florida was purchased from an unrelated third-party.

The $55.6 million of cash paid for the facilities acquired in 2019 includes $0.2 million of deposits that were paid in 2018, when one of these facilities was originally under contract. In addition to the Company’s equity investment in RAP at carrying value, non-cash investing activities during 2019 include the assumption of net other liabilities totaling $132,000.

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
In-place customer leases	$	76,099		$	75,715
Accumulated amortization		(75,089	)		(74,744	)
Net carrying value at the end of period		1,010			971

Amortization expense related to in-place customer leases was $0.3 million for the three months ended March 31, 2019. The Company did not record any amortization expense during the three months ended March 31, 2018 as all in-place customer leases were fully amortized at the beginning of the period.

Change in Useful Life Estimates

As part of the Company’s capital improvement efforts during 2017, 2018 and 2019, buildings at certain self-storage facilities were identified for replacement. As a result of the decision to replace these buildings, the Company reassessed the estimated useful lives of the then existing buildings. This useful life reassessment resulted in an increase in depreciation expense of approximately $0.7 million and $0.3 million during the three month periods ended March 31, 2019 and 2018, respectively. The Company estimates that the change in estimated useful lives of buildings identified for replacement as of March 31, 2019 will have minimal additional impact on depreciation expense during the remainder of 2019.

The accelerated depreciation resulting from the events discussed above reduced both basic and diluted earnings per share/unit by approximately $0.02 and $0.01 for the three month periods ended March 31, 2019 and 2018, respectively.

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Unsecured Line of Credit and Term Notes

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Unsecured Line of Credit and Term Notes

6. UNSECURED LINE OF CREDIT AND TERM NOTES

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
Revolving line of credit borrowings	$	177,000		$	91,000
Term note due June 4, 2020		100,000			100,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			600,000
Senior term note due December 15, 2027		450,000			450,000
Term note due July 21, 2028		200,000			200,000
Total term note principal balance outstanding	$	1,625,000		$	1,625,000
Less: unamortized debt issuance costs		(9,390	)		(9,778	)
Less: unamortized senior term note discount		(4,266	)		(4,402	)
Term notes payable	$	1,611,344		$	1,610,820

The Company’s unsecured amended credit agreement includes a revolving credit facility with a limit of $500 million with a maturity date of March 10, 2023 and a term note in the principal amount of $100 million with a maturity date of June 4, 2020. Such credit agreement provides for interest on the revolving credit facility at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at March 31, 2019 the margin is 0.95%), interest on the term note at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at March 31, 2019 the margin is 1.00%), and requires an annual facility fee on the revolving credit facility which varies based upon the Company’s credit rating (at March 31, 2019 the facility fee is 0.15%). The interest rate on the Company’s revolving credit facility at March 31, 2019 was approximately 3.45% (3.47% at December 31, 2018) and the interest rate on the term note at March 31, 2019 was approximately 3.50% (3.52% at December 31, 2018). At March 31, 2019 there was $322.7 million available on the unsecured line of credit. The Company has the option under this credit facility to increase the total aggregate borrowing capacity of the facilities to $900 million.

On December 7, 2017, the Operating Partnership issued $450 million in aggregate principal amount of 3.875% unsecured senior notes due December 15, 2027 (the “2027 Senior Notes”). The 2027 Senior Notes were issued at a 0.477% discount to par value.  Interest on the 2027 Senior Notes is payable semi-annually in arrears on each June 15 and December 15. The 2027 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $2.1 million and underwriting discount and other offering expenses of $4.0 million, totaled $443.9 million.

On June 20, 2016, the Operating Partnership issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a 0.553% discount to par value. Interest on the 2026 Senior Notes is payable semi-annually in arrears on each January 1 and July 1. The 2026 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $3.3 million and underwriting discount and other offering expenses of $5.5 million, totaled $591.2 million.

The indenture under which the 2027 Senior Notes and the 2026 Senior Notes were issued restricts the ability of the Company and its subsidiaries to incur debt unless the Company and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 on all outstanding debt, after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Company and its subsidiaries to incur secured debt unless the Company and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Company and its consolidated subsidiaries. At March 31, 2019, the Company was in compliance with such covenants.

On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%.

On April 8, 2014, the Company entered into a $175 million term note maturing April 8, 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded.

In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded.

The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At March 31, 2019, the Company was in compliance with such covenants.

We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at March 31, 2019, the entire availability on the line of credit could be drawn without violating our debt covenants.

The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control.

Deferred debt issuance costs and the discount on the outstanding term notes are both presented as reductions of term notes in the accompanying consolidated balance sheets at March 31, 2019 and December 31, 2018. Amortization expense related to these deferred debt issuance costs was $0.5 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, and is included in interest expense in the consolidated statements of operations.

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Mortgages Payable and Debt Maturities

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Mortgages Payable and Debt Maturities

7. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at March 31, 2019 and December 31, 2018 consist of the following:

(dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018
4.98% mortgage note due January 1, 2021, secured by one    self-storage facility with an aggregate net book value of $9.5    million, principal and interest paid monthly    (effective interest rate 5.17%)	$	2,849	$	2,863
4.065% mortgage note due April 1, 2023, secured by one self-    storage facility with an aggregate net book value of $7.4    million, principal and interest paid monthly    (effective interest rate 4.25%)		4,004		4,028
5.26% mortgage note due November 1, 2023, secured by one    self-storage facility with an aggregate net book value of $7.9    million, principal and interest paid monthly    (effective interest rate 5.50%)		3,853		3,871
5.99% mortgage note due May 1, 2026, secured by one self-    storage facility with an aggregate net book value of $6.4    million, principal and interest paid monthly    (effective interest rate 6.32%)		1,498		1,540
Total mortgages payable	$	12,204	$	12,302

The table below summarizes the Company’s debt obligations at March 31, 2019. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 9. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

			Expected Maturity Date Including Discount
(dollars in thousands)	2019		2020		2021		2022		2023		Thereafter		Total		Fair Value
Line of credit - variable rate    LIBOR + 0.95% (3.45% at    March 31, 2019)		—		—		—		—	$	177,000		—	$	177,000	$	177,000
Notes Payable:
Term note - variable rate    LIBOR + 1.00% (3.50% at    March 31, 2019)		—	$	100,000		—		—		—		—	$	100,000	$	100,000
Term note - fixed rate 5.54%		—		—	$	100,000		—		—		—	$	100,000	$	104,916
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	181,489
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	586,050
Term note - fixed rate 3.875%		—		—		—		—		—	$	450,000	$	450,000	$	438,803
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	188,614
Mortgage note - fixed rate 4.98%	$	42	$	59	$	2,748		—		—		—	$	2,849	$	2,903
Mortgage note - fixed rate 4.065%	$	72	$	99	$	104	$	108	$	3,621		—	$	4,004	$	4,034
Mortgage note - fixed rate 5.26%	$	53	$	74	$	78	$	83	$	3,565		—	$	3,853	$	4,079
Mortgage note - fixed rate 5.99%	$	128	$	181	$	192	$	203	$	216	$	578	$	1,498	$	1,607
Total	$	295	$	100,413	$	103,122	$	394	$	184,402	$	1,425,578	$	1,814,204

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

8. DERIVATIVE FINANCIAL INSTRUMENTS

Interest rate swaps have been used to adjust the proportion of total debt that is subject to variable interest rates. The interest rate swaps required the Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and to receive in return an amount equal to a variable rate of interest times the same notional amount. The notional amounts were not exchanged. Forward starting interest rate swaps have also been used by the Company to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.

The Company’s interest rate swaps qualified and were designated as hedges of the amount of future cash flows related to interest payments on variable rate debt. Therefore, interest rate swaps are recorded in the consolidated balance sheets at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive Loss (“AOCL”). These deferred gains and losses are recognized in interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately.

In the third quarter of 2018, the Company’s last remaining interest rate swaps on $100 million of the Company’s variable rate debt expired and were settled by the Company. As a result, no gains or losses related to interest rate swaps are included in AOCL at March 31, 2019. There are no interest rate swaps held by the Company at March 31, 2019.

In 2015 and 2016, the Company entered into forward starting interest rate swap agreements to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of fixed rate long-term debt. In conjunction with the issuance of the 2026 Senior Notes (see Note 6), the Company terminated these hedges and settled the forward starting swap agreements for approximately $9.2 million. The $9.2 million has been deferred in AOCL and is being amortized as additional interest expense over the ten-year term of the 2026 Senior Notes or until such time as interest payments on the 2026 Senior Notes are no longer probable.

During the three months ended March 31, 2018 the net reclassification from AOCL to interest expense was ($30,000) based on payments received under the swap agreements. There was no such reclassification in 2019 as the Company did not have any interest rate swaps outstanding during the three months ended March 31, 2019. Payments received under the interest rate swap agreements have been reclassified to interest expense as settlements occurred.

The changes in AOCL for the three months ended March 31, 2019 and 2018 are summarized as follows:

(dollars in thousands)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Accumulated other comprehensive loss beginning of period	$	(6,875	)	$	(7,587	)
Realized loss reclassified from accumulated other    comprehensive loss to interest expense		229			196
Unrealized gain from changes in the fair value of the    effective portion of the interest rate swaps		—			81
Amount included in other comprehensive income		229			277
Accumulated other comprehensive loss end of period	$	(6,646	)	$	(7,310	)

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Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

9. FAIR VALUE MEASUREMENTS

The Company applies the provisions of ASC Topic 820 “Fair Value Measurements and Disclosures” in determining the fair value of its financial and nonfinancial assets and liabilities. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Refer to Note 7 for presentation of the fair values of debt obligations which are disclosed at fair value on a recurring basis.

The are no assets or liabilities carried at fair value measured on a recurring basis on the consolidated balance sheets as of March 31, 2019 and December 31, 2018.

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Investment in Joint Ventures

3 Months Ended

Mar. 31, 2019

Equity Method Investments And Joint Ventures [Abstract]

Investment in Joint Ventures

10. INVESTMENT IN JOINT VENTURES

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

Venture	Number of Properties at Mar. 31, 2019	Company common ownership interest at Mar. 31, 2019	Carrying value of investment at Mar. 31, 2019	Carrying value of investment at Dec. 31, 2018
Sovran HHF Storage Holdings LLC (“Sovran HHF”)1	57	20%	$84.9 million	$85.8 million
Sovran HHF Storage Holdings II LLC (“Sovran    HHF II”)2	30	15%	$13.4 million	$13.4 million
191 III Life Storage Holdings LLC (“191 III”)3	6	20%	$9.3   million	$9.3   million
Life Storage-SERS Storage LLC (“SERS”)4	3	20%	$3.4   million	$3.5   million
Life Storage-HIERS Storage LLC (“HIERS”)5	12	20%	$9.3   million	$9.3   million
Iskalo Office Holdings, LLC (“Iskalo”)6	N/A	49%	($0.4   million)	($0.4    million)
Urban Box Coralway Storage, LLC (“Urban Box”)7	1	85%	$4.3   million	$4.4   million
SNL/Orix 1200 McDonald Ave., LLC (“McDonald”)8	1	5%	$2.8   million	$2.8   million
SNL Orix Merrick, LLC (“Merrick”)9	1	5%	$2.5   million	$2.5   million
N 32nd Street Self Storage, LLC (“N32”)10	1	46%	$1.2   million	$1.2   million
NYX Don Mills Storage LP ("Don Mills")11	1*	17%	$1.0   million	$1.0   million
NYX Sheridan Storage LP ("Sheridan")12	1*	38.3%	$0.7   million	$0.7   million
NYX Appleby Storage LP ("Appleby")13	1*	37.5%	$1.0   million	$1.0   million
Bluebird Sanford Storage LP ("Sanford")14	1	20.5%	$0.3   million	N/A
Bluebird Ingram Storage LP ("Ingram")15	1	46.3%	$1.3   million	N/A
*Property in development stage

^{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). Sovran HHF has entered into non-recourse mortgage loans with $219.6 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $1.7 million of distributions from Sovran HHF. As of March 31, 2019, 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). Sovran HHF II has entered into non-recourse mortgage loans with $87.8 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.5 million of distributions from Sovran HHF II.}

^{3 191 III owns six self-storage facilities in California. 191 III has entered into a non-recourse mortgage loan with $57.2 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company contributed $0.1 million as its share of capital to the joint venture. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from 191 III.}

^{4 SERS owns three self-storage facilities in Georgia. SERS has entered into a non-recourse mortgage loan with $22.0 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company did not make any contributions to SERS and distributions received from SERS were minimal.}

^{5 HIERS owns self-storage facilities in Arizona (2), Florida (1), North Carolina (1), Texas (7), and Virginia (1) which were acquired from the Company in the fourth quarter of 2018. HIERS has entered into a non-recourse mortgage loan with $45.4 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from HIERS.}

^{6 Iskalo owns the building that houses the Company’s headquarters and other tenants. The Company paid rent to Iskalo of $0.3 million during each of the three months ended March 31, 2019 and 2018.}

^{7 Urban Box owns a self-storage facility in Florida. Urban Box has entered into a non-recourse mortgage loan with $6.7 million of principal outstanding at March 31, 2019.}

⁸ McDonald owns a self-storage facility in New York. McDonald has entered into a non-recourse mortgage loan with $11.6 million of principal outstanding at March 31, 2019.

^{9 Merrick owns a self-storage facility in New York. Merrick has entered into a non-recourse mortgage loan with $12.3 million of principal outstanding at March 31, 2019.}

^{10 N32 owns a self-storage property in Arizona and has entered into a non-recourse mortgage loan with $6.3 million of principal outstanding at March 31, 2019.}  

¹¹ Don Mills is developing a self-storage facility in Ontario, Canada which is expected to be completed in 2020.

^{12 Sheridan is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.}

¹³ Appleby is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.

^{14 Sanford owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $3.2 million of principal outstanding at March 31, 2019. The Company entered into the Sanford joint venture during 2019 and contributed $0.3 million of common capital to Sanford during 2019 as the Company’s share of the initial capital investment in the joint venture.}

¹⁵ Ingram owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $17.6 million of principal outstanding at March 31, 2019. The Company entered into the Ingram joint venture during 2019 and contributed $1.3 million of common capital to Ingram during 2019 as the Company’s share of the initial capital investment in the joint venture.

Based on the facts and circumstances of each of the Company’s joint ventures, the Company has determined that none of the joint ventures are a variable interest entity (“VIE”) in accordance with ASC 810, “Consolidation.” As a result, the Company used the voting model under ASC 810 to determine whether or not to consolidate the joint ventures. Based upon each member’s substantive participation rights over the activities as stipulated in the joint venture agreements, none of the joint ventures are consolidated by the Company. Due to the Company’s significant influence over the operations of each of the joint ventures, all joint ventures are accounted for under the equity method of accounting.

In the first quarter of 2019, the Company acquired the remaining 60% ownership interest in RAP for cash payment of $46.4 million which included the payoff of a $30.0 million mortgage loan previously entered into by RAP and $0.7 million of transfer taxes. RAP had historically been accounted for by the Company using the equity method of accounting. As a result of this transaction, the Company now owns 100% of RAP and has consolidated RAP in accordance with ASC 810, “Consolidation” since the date of acquisition of the remaining 60% ownership interest. The allocated purchase price of RAP also includes the carrying value of the Company’s investment in RAP at the date of acquisition which totaled $10.7 million (see Note 5 for additional information on the accounting for this acquisition).

The carrying values of the Company’s investments in joint ventures are assessed for other-than-temporary impairment on a periodic basis and no such impairments have been recorded on any of the Company’s investments in joint ventures.

The Company earns management and/or call center fees ranging from 5% to 7% of joint venture gross revenues as property manager of the self-storage facilities owned by HHF, HHF II, 191 III, SERS, HIERS, Urban Box, McDonald, Merrick, N32, Sanford and Ingram. The Company also earned management and/or call center fees as property manager of the self-storage facility owned by RAP prior to the Company’s acquisition of the remaining 60% ownership interest in RAP discussed above. These fees, which are included in other operating income in the consolidated statements of operations, totaled $2.1 million and $1.9 million for the three months ended March 31, 2019 and 2018, respectively.

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

(dollars in thousands) Venture	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Sovran HHF	$	829		$	689
Sovran HHF II		413			368
191 III		(14	)		18
SERS		(46	)		62
HIERS		20			—
RAP		(280	)		(216	)
Merrick		(5	)		(16	)
McDonald		(13	)		—
Urban Box		(125	)		—
N32		(21	)		—
Iskalo		53			67
	$	811		$	972

A summary of the combined unconsolidated joint ventures’ financial statements as of and for the three months ended March 31, 2019 is as follows:

(dollars in thousands)
Balance Sheet  Data:
Investment in storage facilities, net	$	1,158,144
Investment in office building, net		4,573
Other assets		20,759
Total Assets	$	1,183,476
Due to the Company	$	1,807
Mortgages payable		516,061
Other liabilities		11,018
Total Liabilities	$	528,886
Unaffiliated partners’ equity		519,642
Company equity		134,948
Total Partners’ Equity		654,590
Total Liabilities and Partners’ Equity	$	1,183,476
Income Statement Data:
Total revenues	$	30,915
Property operating expenses		(9,832	)
Administrative, management and call center fees		(2,470	)
Depreciation and amortization of customer list		(6,823	)
Amortization of financing fees		(231	)
Income tax expense		(79	)
Interest expense		(5,945	)
Net income	$	5,535

The Company does not guarantee the debt of any of its equity method investees.

We do not expect to have material future cash outlays relating to these joint ventures outside our share of capital for future acquisitions of properties and our share of the payoff of secured debt held by these joint ventures.

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Income Taxes

3 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

11. INCOME TAXES

The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes its taxable income to its shareholders and complies with certain other requirements.

The Company has elected to treat three of its subsidiaries as taxable REIT subsidiaries. In general, the Company’s taxable REIT subsidiaries may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

The Company recorded federal and state income tax expense of $0.4 million and $0.5 million for the three months ended March 31, 2019 and 2018, respectively, which are included in general and administrative expenses in the consolidated statements of operations. At March 31, 2019 and 2018, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of March 31, 2019 and 2018, the Company had no interest or penalties related to uncertain tax positions. Income taxes payable at March 31, 2019 and December 31, 2018 are classified within accounts payable and accrued liabilities in the consolidated balance sheets. Prepaid income taxes at March 31, 2019 and December 31, 2018 are classified within prepaid expenses, while the net deferred tax assets of our taxable REIT subsidiaries at March 31, 2019 and December 31, 2018 are classified within other assets in the consolidated balance sheets. As of March 31, 2019, the Company’s taxable REIT subsidiaries have prepaid taxes of $0.1 million, deferred tax assets totaling $2.4 million, and a deferred tax liability of $1.7 million. As of December 31, 2018, the Company’s taxable REIT subsidiaries have prepaid taxes of $0.1 million, deferred tax assets of $2.1 million and a deferred tax liability of $1.6 million. The tax years 2015-2018 remain open to examination by the major taxing jurisdictions to which the Company is subject.

The Tax Cuts and Jobs Act (the “TCJA”) was enacted on December 20, 2017. The TCJA significantly changed the U.S. federal income tax laws applicable to businesses and their owners, including REITs and their shareholders. Under the TCJA, the corporate income tax rate is reduced from a maximum rate of 35% to a flat 21% rate. The reduced corporate income tax rate, which is effective for taxable years beginning after December 31, 2017, applies to income earned by our taxable REIT subsidiaries.

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Earnings Per Share and Earnings Per Unit

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share and Earnings Per Unit

12. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance ASC Topic 260, “Earnings Per Share.” Under ASC Topic 260-10, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

Earnings Per Share

(in thousands except per share data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common shareholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per share – weighted    average shares		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per share – adjusted    weighted average shares and assumed conversion		46,637		46,537
Basic earnings per common share attributable to    common shareholders	$	0.74	$	0.73
Diluted earnings per common share attributable to    common shareholders	$	0.74	$	0.73

Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common unitholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per unit – weighted    average units		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per unit – adjusted    weighted average units and assumed conversion		46,637		46,537
Basic earnings per common unit attributable to    common unitholders	$	0.74	$	0.73
Diluted earnings per common unit attributable to    common unitholders	$	0.74	$	0.73

Not included in the effect of dilutive securities above for both earnings per share and earnings per unit are 73,770 unvested restricted shares for the three months ended March 31, 2019, and 11,000 stock options and 118,062 unvested restricted shares for the three months ended March 31, 2018, because their effect would be antidilutive.

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Shareholders' Equity

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Shareholders' Equity

13. SHAREHOLDERS’ EQUITY

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2019:

(dollars in thousands)	Common Stock		Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2018	$	466	$	2,372,157	$	(308,011	)	$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		—		1,396		—			—			1,396
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—		—		(294	)		—			(294	)
Net income attributable to common shareholders		—		—		34,454			—			34,454
Amortization of terminated hedge included in    AOCL		—		—		—			229			229
Dividends		—		—		(46,631	)		—			(46,631	)
Balance March 31, 2019	$	466	$	2,373,553	$	(320,482	)	$	(6,646	)	$	2,046,891

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2018:

(dollars in thousands)	Common Stock			Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2017	$	466		$	2,363,171	$	(327,727	)	$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		(1	)		1		—			—			—
Earned portion of non-vested stock		—			1,495		—			—			1,495
Stock option expense		—			4		—			—			4
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—			—		1,470			—			1,470
Net income attributable to common shareholders		—			—		33,889			—			33,889
Amortization of terminated hedge included in    AOCL		—			—		—			229			229
Change in fair value of derivatives, net of    reclassifications		—			—		—			48			48
Dividends		—			—		(46,121	)		—			(46,121	)
Balance March 31, 2018	$	465		$	2,364,671	$	(338,489	)	$	(7,310	)	$	2,019,337

On June 14, 2018, the Company entered into a continuous equity offering program with Wells Fargo Securities, LLC, Jeffries LLC, SunTrust Robinson Humphrey, Inc., HSBC Securities (USA) Inc., BB&T Capital Markets, a division of BB&T Securities, LLC and BTIG, LLC, pursuant to which the Company may sell up to $300 million in aggregate offering price of shares of the Company’s common stock. Actual sales under this continuous equity offering program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell and issue shares of common stock under this equity program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under this equity program. During 2019 and 2018, the Company did not issue any shares of common stock under this equity program.

On August 2, 2017, the Company’s Board of Directors authorized the repurchase of up to $200 million of the Company’s outstanding common shares (“Buyback Program”). The Buyback Program allows the Company to purchase shares of its common stock in accordance with applicable securities laws on the open market, through privately negotiated transactions, or through other methods of acquiring shares. The Buyback Program may be suspended or discontinued at any time. The Company did not repurchase any outstanding common shares under the Buyback Program during the three months ended March 31, 2019 or the three months ended March 31, 2018.

In 2013, the Company implemented a Dividend Reinvestment Plan which was suspended by the Company’s Board of Directors in 2017. As a result, the Company did not issue any shares under the Dividend Reinvestment Plan during the three months ended March 31, 2019 and 2018.  

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Partners' Capital

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Partners' Capital

14. PARTNERS’ CAPITAL

The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2019:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2018	$	20,816		$	2,043,796		$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		14			1,382			—			1,396
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units		—			(294	)		—			(294	)
Net income attributable to common unitholders		347			34,107			—			34,454
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Distributions		(469	)		(46,162	)		—			(46,631	)
Balance March 31, 2019	$	20,710		$	2,032,827		$	(6,646	)	$	2,046,891

The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2018:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2017	$	20,478		$	2,015,432		$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		1			(1	)		—			—
Earned portion of non-vested stock		15			1,480			—			1,495
Stock option expense					4						4
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units					1,470						1,470
Net income attributable to common unitholders		340			33,549						33,889
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Change in fair value of derivatives, net    of reclassifications		—			—			48			48
Distributions		(463	)		(45,658	)		—			(46,121	)
Balance March 31, 2018	$	20,373		$	2,006,274		$	(7,310	)	$	2,019,337

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Recent Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

15. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASU 2014-09 effective as of January 1, 2018. The Company elected to adopt the standard using the modified retrospective transition method. Leases are specifically excluded from the scope of ASU 2014-09, therefore, upon analysis, the Company concluded that the adoption of the new standard did not have any impact on the timing or amounts of the Company’s rental revenue from customers which represents over 90% of the Company’s total operating revenues. The Company also concluded that the adoption of the new standard did not have any material impact on the timing or amounts of the Company’s other material revenue streams and no cumulative effect adjustment was required as of the date of initial application. Payment from such revenue streams is due and generally collected upon invoice. Also, as part of the Company’s adoption of ASU 2014-09, the Company elected to apply the guidance only to contracts that were not completed contracts at the date of initial application. Further, related to the Company’s management fee revenue stream which relates to managing self-storage facilities for third-parties and unconsolidated joint ventures, the Company has elected to apply a practical expedient provided in the new standard which allows the Company to recognize revenue in the amount of management fees to which the Company has a right to invoice as that amount corresponds directly with the value to the customer of the entity’s performance completed to date. With respect to the Company’s revenues related to tenant reinsurance, the Company recognizes revenue based upon the amount that the Company has the right to invoice following the practical expedient in ASC 606-10-55-18 as such amount corresponds directly with the value to the third-party insurer of the entity’s performance completed to date.  

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (ASC 842). This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840, “Leases” (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability under this guidance is equal to the present value of lease payments and the right-of-use asset is based on the lease liability, subject to adjustments such as for initial direct costs and prepaid or accrued lease payments. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases result in straight-line expense (similar to previous accounting by lessees for operating leases under ASC 840) while finance leases result in a front-loaded expense pattern (similar to previous accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. The Company adopted ASU 2016-02 effective as of January 1, 2019. Management determined that the application of ASC 842 did not have a significant impact on the Company’s leases existing at the date of adoption where the Company is a lessor. The Company has inventoried all leases where the Company is a lessee as of January 1, 2019 and has examined certain other contracts to identify whether such contracts contain a lease as defined under the new guidance. The Company’s lease population is comprised of leases for land and/or buildings in which certain of the Company’s self-storage facilities operate, as well as leases of corporate office space. All leases where the Company is the lessee qualify as operating leases and the Company does not have any financing leases as of the date of adoption of ASU 2016-02. The aggregate right-of-use assets and related lease liabilities at the initial date of application related to all leases identified by the Company where the Company is a lessee both totaled approximately $16 million. At March 31, 2019, the Company’s aggregate right-of-use assets total $15.5 million and are included in other assets on the consolidated balance sheet. The related lease liabilities total $15.3 million and are included in accounts payable and accrued liabilities on the consolidated balance sheet. No such right-of-use assets or related lease liabilities are recorded at December 31, 2018 as the presentation related to leases at December 31, 2018 continues to reflect the accounting guidance in ASC 840.

Two of the leases for real estate at which the Company operates self-storage facilities include unilateral options for the Company to extend the terms of these leases. However, those extension periods are not included in the terms of the respective leases under ASC 842 due to the Company’s inability to assert that it is reasonably certain to exercise those options based primarily on the length of time before such options would be exercised. One of the Company’s leases of a self-storage facility also provides the Company with the option to purchase the property under lease for $13.3 million. Future lease payments which are based on changes to the consumer price index and future common area maintenance charges related to corporate office space leases have been excluded from the future minimum noncancelable lease payments for the respective leases due to their variable nature. The Company has made the following accounting policy elections and practical expedient elections provided for in ASC 842:

• The package of practical expedients in ASC 842-10-65-1(f) which, if elected, stipulates that for all leases existing at the date of application (1) an entity need not reassess whether any expired or existing contracts contain leases; (2) an entity need not reassess the lease classification for any expired or existing leases; and (3) an entity need not reassess initial direct costs for any existing leases.

• The practical expedient in ASC 842-10-65-1(g) which, if elected, stipulates that an entity may use hindsight at the date of initial application in determining the lease term and in assessing impairment of the entity’s right to use assets.

• The practical expedient in ASC 842-10-65-1(gg) which, if elected, stipulates that an entity need not assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under ASC 842.

• The practical expedient in ASC 842-10-15-37 which, if elected, allows a lessee to choose not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

• The practical expedient in ASC 842-10-15-42A which, if elected, allows a lessor to choose not to separate nonlease components from lease components and, instead, to account for each separate lease component and the nonlease components associated with that lease component as a single lease component if the nonlease components otherwise would be accounted for under ASC 606, “Revenue from Contracts with Customers,” and both (1) the timing and pattern of transfer for the lease component and nonlease component(s) associated with the lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease in accordance with ASC 842-10-25 paragraphs 2 and 3.

• The option in ASC 842-20-25-2 for a lessee to elect, as an accounting policy, not to apply the recognition requirements in ASC 842 to short-term leases and, instead, to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Leases are considered short-term when they have a term of less than one year.

• The Company has elected to define the term “major part,” as referenced in ASC 842-10-25-2 related to the remaining economic life of an asset, as being 75% or more of the remaining economic life of the asset.

• The Company has elected to define the term “substantially all,” as referenced in ASC 842-10-25-2 related to the fair value of an asset, as being 90% or more of the fair value of the underlying asset.

• The Company has elected to define the term “at or near the end,” as referenced in ASC 842-10-25-2 related to a lease commencement date, as being a date that falls within the last 25% of the total economic life of the underlying asset.

Expenses related to operating leases totaled $0.6 million for the three months ended March 31, 2019. At March 31, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were 10.7 years and 5.3%, respectively.

At March 31, 2019, the Company has no finance leases and we have approximately $19.9 million of operating lease commitments, excluding variable consideration. The undiscounted future minimum lease payments are summarized by year in the table below:

(in thousands)
2019	$	1,968
2020		2,287
2021		2,109
2022		2,109
2023		1,593
Thereafter		9,798
Total	$	19,864

The difference between the amounts included in the table above and the aggregate lease liability recorded in the accompanying consolidated balance sheet at March 31, 2019 is the result of the impact of the discount rate on future minimum lease payments.

In August 2018, the FASB Issued ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which provides guidance to assist entities in accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) incurred by entities that are a customer in a hosting arrangement that is a service contract. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is currently evaluating the impact of adopting ASU 2018-15 on its consolidated financial statements.

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Commitment and Contingencies

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitment and Contingencies

16. COMMITMENT AND CONTINGENCIES

At March 31, 2019, the Company was under contract to acquire 16 self-storage facilities for an aggregate purchase price of $177.7 million. Three of these 16 self-storage facilities were acquired by the Company subsequent to March 31, 2019 for a purchase price of $33.0 million. The purchase of the remaining 13 facilities is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.

At March 31, 2019, the Company has signed contracts in place with third-party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $31.2 million under these contracts in 2019 and 2020.

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Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

17. SUBSEQUENT EVENTS

Commencing April 1, 2019, the Company launched a tenant self-storage insurance program whereby a captive wholly-owned subsidiary of the Company reinsures certain risks relating to property stored by its tenants. In connection with this new program, the Company’s prior arrangement with a third-party insurer was terminated. The change in tenant insurance programs is not expected to have a significant impact on the Company’s consolidated net income. However, the Company does expect an increase to both tenant reinsurance revenues and related expenses as a result of the differences in the accounting for the two programs.

On April 2, 2019, the Company declared a quarterly dividend of $1.00 per common share. The dividend was paid on April 26, 2019 to shareholders of record on April 16, 2019. The total dividend paid amounted to $46.6 million.

As discussed in Note 16, on April 30, 2019, the Company acquired three self-storage facilities for a purchase price of $33.0 million.

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Recent Accounting Pronouncements (Policies)

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASU 2014-09 effective as of January 1, 2018. The Company elected to adopt the standard using the modified retrospective transition method. Leases are specifically excluded from the scope of ASU 2014-09, therefore, upon analysis, the Company concluded that the adoption of the new standard did not have any impact on the timing or amounts of the Company’s rental revenue from customers which represents over 90% of the Company’s total operating revenues. The Company also concluded that the adoption of the new standard did not have any material impact on the timing or amounts of the Company’s other material revenue streams and no cumulative effect adjustment was required as of the date of initial application. Payment from such revenue streams is due and generally collected upon invoice. Also, as part of the Company’s adoption of ASU 2014-09, the Company elected to apply the guidance only to contracts that were not completed contracts at the date of initial application. Further, related to the Company’s management fee revenue stream which relates to managing self-storage facilities for third-parties and unconsolidated joint ventures, the Company has elected to apply a practical expedient provided in the new standard which allows the Company to recognize revenue in the amount of management fees to which the Company has a right to invoice as that amount corresponds directly with the value to the customer of the entity’s performance completed to date. With respect to the Company’s revenues related to tenant reinsurance, the Company recognizes revenue based upon the amount that the Company has the right to invoice following the practical expedient in ASC 606-10-55-18 as such amount corresponds directly with the value to the third-party insurer of the entity’s performance completed to date.  

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” (ASC 842). This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840, “Leases” (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability under this guidance is equal to the present value of lease payments and the right-of-use asset is based on the lease liability, subject to adjustments such as for initial direct costs and prepaid or accrued lease payments. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases result in straight-line expense (similar to previous accounting by lessees for operating leases under ASC 840) while finance leases result in a front-loaded expense pattern (similar to previous accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. The Company adopted ASU 2016-02 effective as of January 1, 2019. Management determined that the application of ASC 842 did not have a significant impact on the Company’s leases existing at the date of adoption where the Company is a lessor. The Company has inventoried all leases where the Company is a lessee as of January 1, 2019 and has examined certain other contracts to identify whether such contracts contain a lease as defined under the new guidance. The Company’s lease population is comprised of leases for land and/or buildings in which certain of the Company’s self-storage facilities operate, as well as leases of corporate office space. All leases where the Company is the lessee qualify as operating leases and the Company does not have any financing leases as of the date of adoption of ASU 2016-02. The aggregate right-of-use assets and related lease liabilities at the initial date of application related to all leases identified by the Company where the Company is a lessee both totaled approximately $16 million. At March 31, 2019, the Company’s aggregate right-of-use assets total $15.5 million and are included in other assets on the consolidated balance sheet. The related lease liabilities total $15.3 million and are included in accounts payable and accrued liabilities on the consolidated balance sheet. No such right-of-use assets or related lease liabilities are recorded at December 31, 2018 as the presentation related to leases at December 31, 2018 continues to reflect the accounting guidance in ASC 840.

Two of the leases for real estate at which the Company operates self-storage facilities include unilateral options for the Company to extend the terms of these leases. However, those extension periods are not included in the terms of the respective leases under ASC 842 due to the Company’s inability to assert that it is reasonably certain to exercise those options based primarily on the length of time before such options would be exercised. One of the Company’s leases of a self-storage facility also provides the Company with the option to purchase the property under lease for $13.3 million. Future lease payments which are based on changes to the consumer price index and future common area maintenance charges related to corporate office space leases have been excluded from the future minimum noncancelable lease payments for the respective leases due to their variable nature. The Company has made the following accounting policy elections and practical expedient elections provided for in ASC 842:

• The package of practical expedients in ASC 842-10-65-1(f) which, if elected, stipulates that for all leases existing at the date of application (1) an entity need not reassess whether any expired or existing contracts contain leases; (2) an entity need not reassess the lease classification for any expired or existing leases; and (3) an entity need not reassess initial direct costs for any existing leases.

• The practical expedient in ASC 842-10-65-1(g) which, if elected, stipulates that an entity may use hindsight at the date of initial application in determining the lease term and in assessing impairment of the entity’s right to use assets.

• The practical expedient in ASC 842-10-65-1(gg) which, if elected, stipulates that an entity need not assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under ASC 842.

• The practical expedient in ASC 842-10-15-37 which, if elected, allows a lessee to choose not to separate nonlease components from lease components and instead account for each separate lease component and the nonlease components associated with that lease component as a single lease component.

• The practical expedient in ASC 842-10-15-42A which, if elected, allows a lessor to choose not to separate nonlease components from lease components and, instead, to account for each separate lease component and the nonlease components associated with that lease component as a single lease component if the nonlease components otherwise would be accounted for under ASC 606, “Revenue from Contracts with Customers,” and both (1) the timing and pattern of transfer for the lease component and nonlease component(s) associated with the lease component are the same, and (2) the lease component, if accounted for separately, would be classified as an operating lease in accordance with ASC 842-10-25 paragraphs 2 and 3.

• The option in ASC 842-20-25-2 for a lessee to elect, as an accounting policy, not to apply the recognition requirements in ASC 842 to short-term leases and, instead, to recognize the lease payments in profit or loss on a straight-line basis over the lease term and variable lease payments in the period in which the obligation for those payments is incurred. Leases are considered short-term when they have a term of less than one year.

• The Company has elected to define the term “major part,” as referenced in ASC 842-10-25-2 related to the remaining economic life of an asset, as being 75% or more of the remaining economic life of the asset.

• The Company has elected to define the term “substantially all,” as referenced in ASC 842-10-25-2 related to the fair value of an asset, as being 90% or more of the fair value of the underlying asset.

• The Company has elected to define the term “at or near the end,” as referenced in ASC 842-10-25-2 related to a lease commencement date, as being a date that falls within the last 25% of the total economic life of the underlying asset.

Expenses related to operating leases totaled $0.6 million for the three months ended March 31, 2019. At March 31, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were 10.7 years and 5.3%, respectively.

At March 31, 2019, the Company has no finance leases and we have approximately $19.9 million of operating lease commitments, excluding variable consideration. The undiscounted future minimum lease payments are summarized by year in the table below:

(in thousands)
2019	$	1,968
2020		2,287
2021		2,109
2022		2,109
2023		1,593
Thereafter		9,798
Total	$	19,864

The difference between the amounts included in the table above and the aggregate lease liability recorded in the accompanying consolidated balance sheet at March 31, 2019 is the result of the impact of the discount rate on future minimum lease payments.

In August 2018, the FASB Issued ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract, which provides guidance to assist entities in accounting for implementation, setup, and other upfront costs (collectively referred to as implementation costs) incurred by entities that are a customer in a hosting arrangement that is a service contract. The amendments in this update are effective for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company is currently evaluating the impact of adopting ASU 2018-15 on its consolidated financial statements.

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Organization (Tables)

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Summary of Reconciliation of Noncontrolling Interests

The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units and the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Three Months Ended March 31, 2019
Beginning balance	$	23,716
Net income attributable to noncontrolling interest in the    Operating Partnership		183
Distributions		(249	)
Adjustment to redemption value		294
Ending balance	$	23,944

Summary of Disaggregated Revenues

The disaggregated revenues of the Company presented in accordance with ASC Topic 606 “Revenue from Contracts with Customers” are as follows:

(dollars in thousands)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Rental income	$	124,146	$	121,624
Management and acquisition fee income		3,086		2,395
Revenues related to tenant reinsurance		5,815		5,717
Other		3,475		3,358
Total operating revenues	$	136,522	$	133,094

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Cash and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2019

Cash And Cash Equivalents [Abstract]

Summary of Reconciliation of Cash and Restricted Cash

The following table provides a reconciliation of cash and restricted cash reported within the consolidated statement of cash flows:

(Dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018		Mar. 31, 2018
Cash	$	8,875	$	13,560	$	7,778
Restricted cash		4,139		505		422
Total cash and restricted cash		13,014		14,065		8,200

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Investment in Storage Facilities and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2019

Real Estate [Abstract]

Summary of Activity in Storage Facilities

The following summarizes our activity in storage facilities during the three months ended March 31, 2019:

(dollars in thousands)
Cost:
Beginning balance	$	4,398,939
Acquisition of storage facilities		66,086
Improvements and equipment additions		10,937
Net increase in construction in progress		996
Dispositions		(1,802	)
Ending balance	$	4,475,156
Accumulated  Depreciation:
Beginning balance	$	704,681
Additions during the period		25,851
Dispositions		(1,236	)
Ending balance	$	729,296

Schedule of Purchase Price of Facilities Acquired

The purchase prices of the facilities acquired in 2019 have been assigned as follows:

(dollars in thousands)						Consideration paid								Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition	Purchase Price		Cash Paid		Carrying Value of Noncontrolling Interest in Joint Venture		Mortgage Assumed		Net Other Liabilities (Assets) Assumed		Land		Building, Equipment, and Improvements		In-Place Customers Leases		Closing Costs Expensed
NY		1	1/16/2019	$	57,169	$	46,402	$	10,715	$	—	$	52	$	30,029	$	26,863	$	277	$	—
FL		1	3/8/2019		9,302		9,222		—		—		80		1,817		7,377		108		—
Total acquired in 2019		2		$	66,471	$	55,624	$	10,715	$	—	$	132	$	31,846	$	34,240	$	385		—

Schedule of In-place Customer Leases

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
In-place customer leases	$	76,099		$	75,715
Accumulated amortization		(75,089	)		(74,744	)
Net carrying value at the end of period		1,010			971

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Unsecured Line of Credit and Term Notes (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Borrowings Outstanding on Unsecured Line of Credit and Term Notes

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

(Dollars in thousands)	Mar. 31, 2019			Dec. 31, 2018
Revolving line of credit borrowings	$	177,000		$	91,000
Term note due June 4, 2020		100,000			100,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			600,000
Senior term note due December 15, 2027		450,000			450,000
Term note due July 21, 2028		200,000			200,000
Total term note principal balance outstanding	$	1,625,000		$	1,625,000
Less: unamortized debt issuance costs		(9,390	)		(9,778	)
Less: unamortized senior term note discount		(4,266	)		(4,402	)
Term notes payable	$	1,611,344		$	1,610,820

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Mortgages Payable and Debt Maturities (Tables)

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Summary of Mortgage Payable

Mortgages payable at March 31, 2019 and December 31, 2018 consist of the following:

(dollars in thousands)	Mar. 31, 2019		Dec. 31, 2018
4.98% mortgage note due January 1, 2021, secured by one    self-storage facility with an aggregate net book value of $9.5    million, principal and interest paid monthly    (effective interest rate 5.17%)	$	2,849	$	2,863
4.065% mortgage note due April 1, 2023, secured by one self-    storage facility with an aggregate net book value of $7.4    million, principal and interest paid monthly    (effective interest rate 4.25%)		4,004		4,028
5.26% mortgage note due November 1, 2023, secured by one    self-storage facility with an aggregate net book value of $7.9    million, principal and interest paid monthly    (effective interest rate 5.50%)		3,853		3,871
5.99% mortgage note due May 1, 2026, secured by one self-    storage facility with an aggregate net book value of $6.4    million, principal and interest paid monthly    (effective interest rate 6.32%)		1,498		1,540
Total mortgages payable	$	12,204	$	12,302

Summary of Debt Obligations and Interest Rate Derivatives

Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

			Expected Maturity Date Including Discount
(dollars in thousands)	2019		2020		2021		2022		2023		Thereafter		Total		Fair Value
Line of credit - variable rate    LIBOR + 0.95% (3.45% at    March 31, 2019)		—		—		—		—	$	177,000		—	$	177,000	$	177,000
Notes Payable:
Term note - variable rate    LIBOR + 1.00% (3.50% at    March 31, 2019)		—	$	100,000		—		—		—		—	$	100,000	$	100,000
Term note - fixed rate 5.54%		—		—	$	100,000		—		—		—	$	100,000	$	104,916
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	181,489
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	586,050
Term note - fixed rate 3.875%		—		—		—		—		—	$	450,000	$	450,000	$	438,803
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	188,614
Mortgage note - fixed rate 4.98%	$	42	$	59	$	2,748		—		—		—	$	2,849	$	2,903
Mortgage note - fixed rate 4.065%	$	72	$	99	$	104	$	108	$	3,621		—	$	4,004	$	4,034
Mortgage note - fixed rate 5.26%	$	53	$	74	$	78	$	83	$	3,565		—	$	3,853	$	4,079
Mortgage note - fixed rate 5.99%	$	128	$	181	$	192	$	203	$	216	$	578	$	1,498	$	1,607
Total	$	295	$	100,413	$	103,122	$	394	$	184,402	$	1,425,578	$	1,814,204

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Changes in AOCL

The changes in AOCL for the three months ended March 31, 2019 and 2018 are summarized as follows:

(dollars in thousands)	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
Accumulated other comprehensive loss beginning of period	$	(6,875	)	$	(7,587	)
Realized loss reclassified from accumulated other    comprehensive loss to interest expense		229			196
Unrealized gain from changes in the fair value of the    effective portion of the interest rate swaps		—			81
Amount included in other comprehensive income		229			277
Accumulated other comprehensive loss end of period	$	(6,646	)	$	(7,310	)

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Investment in Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2019

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 Mar. 31, 2019	Company common ownership interest at Mar. 31, 2019	Carrying value of investment at Mar. 31, 2019	Carrying value of investment at Dec. 31, 2018
Sovran HHF Storage Holdings LLC (“Sovran HHF”)1	57	20%	$84.9 million	$85.8 million
Sovran HHF Storage Holdings II LLC (“Sovran    HHF II”)2	30	15%	$13.4 million	$13.4 million
191 III Life Storage Holdings LLC (“191 III”)3	6	20%	$9.3   million	$9.3   million
Life Storage-SERS Storage LLC (“SERS”)4	3	20%	$3.4   million	$3.5   million
Life Storage-HIERS Storage LLC (“HIERS”)5	12	20%	$9.3   million	$9.3   million
Iskalo Office Holdings, LLC (“Iskalo”)6	N/A	49%	($0.4   million)	($0.4    million)
Urban Box Coralway Storage, LLC (“Urban Box”)7	1	85%	$4.3   million	$4.4   million
SNL/Orix 1200 McDonald Ave., LLC (“McDonald”)8	1	5%	$2.8   million	$2.8   million
SNL Orix Merrick, LLC (“Merrick”)9	1	5%	$2.5   million	$2.5   million
N 32nd Street Self Storage, LLC (“N32”)10	1	46%	$1.2   million	$1.2   million
NYX Don Mills Storage LP ("Don Mills")11	1*	17%	$1.0   million	$1.0   million
NYX Sheridan Storage LP ("Sheridan")12	1*	38.3%	$0.7   million	$0.7   million
NYX Appleby Storage LP ("Appleby")13	1*	37.5%	$1.0   million	$1.0   million
Bluebird Sanford Storage LP ("Sanford")14	1	20.5%	$0.3   million	N/A
Bluebird Ingram Storage LP ("Ingram")15	1	46.3%	$1.3   million	N/A
*Property in development stage

^{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). Sovran HHF has entered into non-recourse mortgage loans with $219.6 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $1.7 million of distributions from Sovran HHF. As of March 31, 2019, 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). Sovran HHF II has entered into non-recourse mortgage loans with $87.8 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.5 million of distributions from Sovran HHF II.}

^{3 191 III owns six self-storage facilities in California. 191 III has entered into a non-recourse mortgage loan with $57.2 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company contributed $0.1 million as its share of capital to the joint venture. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from 191 III.}

^{4 SERS owns three self-storage facilities in Georgia. SERS has entered into a non-recourse mortgage loan with $22.0 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company did not make any contributions to SERS and distributions received from SERS were minimal.}

^{5 HIERS owns self-storage facilities in Arizona (2), Florida (1), North Carolina (1), Texas (7), and Virginia (1) which were acquired from the Company in the fourth quarter of 2018. HIERS has entered into a non-recourse mortgage loan with $45.4 million of principal outstanding at March 31, 2019. During the three months ended March 31, 2019, the Company received $0.1 million of distributions from HIERS.}

^{6 Iskalo owns the building that houses the Company’s headquarters and other tenants. The Company paid rent to Iskalo of $0.3 million during each of the three months ended March 31, 2019 and 2018.}

^{7 Urban Box owns a self-storage facility in Florida. Urban Box has entered into a non-recourse mortgage loan with $6.7 million of principal outstanding at March 31, 2019.}

⁸ McDonald owns a self-storage facility in New York. McDonald has entered into a non-recourse mortgage loan with $11.6 million of principal outstanding at March 31, 2019.

^{9 Merrick owns a self-storage facility in New York. Merrick has entered into a non-recourse mortgage loan with $12.3 million of principal outstanding at March 31, 2019.}

^{10 N32 owns a self-storage property in Arizona and has entered into a non-recourse mortgage loan with $6.3 million of principal outstanding at March 31, 2019.}  

¹¹ Don Mills is developing a self-storage facility in Ontario, Canada which is expected to be completed in 2020.

^{12 Sheridan is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.}

¹³ Appleby is developing a self-storage facility in Ontario, Canada which is expected to be completed by 2021.

^{14 Sanford owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $3.2 million of principal outstanding at March 31, 2019. The Company entered into the Sanford joint venture during 2019 and contributed $0.3 million of common capital to Sanford during 2019 as the Company’s share of the initial capital investment in the joint venture.}

¹⁵ Ingram owns a self-storage facility in Ontario, Canada and has entered into a non-recourse mortgage loan with $17.6 million of principal outstanding at March 31, 2019. The Company entered into the Ingram joint venture during 2019 and contributed $1.3 million of common capital to Ingram during 2019 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 March 31, 2019			Three Months Ended March 31, 2018
Sovran HHF	$	829		$	689
Sovran HHF II		413			368
191 III		(14	)		18
SERS		(46	)		62
HIERS		20			—
RAP		(280	)		(216	)
Merrick		(5	)		(16	)
McDonald		(13	)		—
Urban Box		(125	)		—
N32		(21	)		—
Iskalo		53			67
	$	811		$	972

Summary of Unconsolidated Joint Ventures' Financial Statements

A summary of the combined unconsolidated joint ventures’ financial statements as of and for the three months ended March 31, 2019 is as follows:

(dollars in thousands)
Balance Sheet  Data:
Investment in storage facilities, net	$	1,158,144
Investment in office building, net		4,573
Other assets		20,759
Total Assets	$	1,183,476
Due to the Company	$	1,807
Mortgages payable		516,061
Other liabilities		11,018
Total Liabilities	$	528,886
Unaffiliated partners’ equity		519,642
Company equity		134,948
Total Partners’ Equity		654,590
Total Liabilities and Partners’ Equity	$	1,183,476
Income Statement Data:
Total revenues	$	30,915
Property operating expenses		(9,832	)
Administrative, management and call center fees		(2,470	)
Depreciation and amortization of customer list		(6,823	)
Amortization of financing fees		(231	)
Income tax expense		(79	)
Interest expense		(5,945	)
Net income	$	5,535

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Earnings Per Share and Earnings Per Unit (Tables)

3 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share/Unit

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

Earnings Per Share

(in thousands except per share data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common shareholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per share – weighted    average shares		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per share – adjusted    weighted average shares and assumed conversion		46,637		46,537
Basic earnings per common share attributable to    common shareholders	$	0.74	$	0.73
Diluted earnings per common share attributable to    common shareholders	$	0.74	$	0.73

Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended March 31, 2019		Three Months Ended March 31, 2018
Numerator:
Net income attributable to common unitholders	$	34,454	$	33,889
Denominator:
Denominator for basic earnings per unit – weighted    average units		46,565		46,452
Effect of Dilutive Securities:
Stock options and non-vested stock		72		85
Denominator for diluted earnings per unit – adjusted    weighted average units and assumed conversion		46,637		46,537
Basic earnings per common unit attributable to    common unitholders	$	0.74	$	0.73
Diluted earnings per common unit attributable to    common unitholders	$	0.74	$	0.73

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Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Reconciliation of Changes in Parent Company's Total Shareholders' Equity

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2019:

(dollars in thousands)	Common Stock		Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2018	$	466	$	2,372,157	$	(308,011	)	$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		—		1,396		—			—			1,396
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—		—		(294	)		—			(294	)
Net income attributable to common shareholders		—		—		34,454			—			34,454
Amortization of terminated hedge included in    AOCL		—		—		—			229			229
Dividends		—		—		(46,631	)		—			(46,631	)
Balance March 31, 2019	$	466	$	2,373,553	$	(320,482	)	$	(6,646	)	$	2,046,891

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the three months ended March 31, 2018:

(dollars in thousands)	Common Stock			Additional Paid-in Capital		Dividends in Excess of Net Income			Accumulated Other Comprehensive Income (loss)			Total Shareholders’ Equity
Balance December 31, 2017	$	466		$	2,363,171	$	(327,727	)	$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		(1	)		1		—			—			—
Earned portion of non-vested stock		—			1,495		—			—			1,495
Stock option expense		—			4		—			—			4
Adjustment to redemption value on    noncontrolling redeemable Operating    Partnership units		—			—		1,470			—			1,470
Net income attributable to common shareholders		—			—		33,889			—			33,889
Amortization of terminated hedge included in    AOCL		—			—		—			229			229
Change in fair value of derivatives, net of    reclassifications		—			—		—			48			48
Dividends		—			—		(46,121	)		—			(46,121	)
Balance March 31, 2018	$	465		$	2,364,671	$	(338,489	)	$	(7,310	)	$	2,019,337

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Partners' Capital (Tables)

3 Months Ended

Mar. 31, 2019

Equity [Abstract]

Reconciliation of Changes in Total Partners' Capital

The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2019:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2018	$	20,816		$	2,043,796		$	(6,875	)	$	2,057,737
Earned portion of non-vested stock		14			1,382			—			1,396
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units		—			(294	)		—			(294	)
Net income attributable to common unitholders		347			34,107			—			34,454
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Distributions		(469	)		(46,162	)		—			(46,631	)
Balance March 31, 2019	$	20,710		$	2,032,827		$	(6,646	)	$	2,046,891

The following is a reconciliation of the changes in total partners’ capital for the three months ended March 31, 2018:

(dollars in thousands)	Life Storage Holdings, Inc. General Partner			Life Storage, Inc. Limited Partner			Accumulated Other Comprehensive Income (loss)			Total Controlling Partners’ Capital
Balance December 31, 2017	$	20,478		$	2,015,432		$	(7,587	)	$	2,028,323
Forfeiture of non-vested stock		1			(1	)		—			—
Earned portion of non-vested stock		15			1,480			—			1,495
Stock option expense					4						4
Adjustment to redemption value on noncontrolling    redeemable Operating Partnership units					1,470						1,470
Net income attributable to common unitholders		340			33,549						33,889
Amortization of terminated hedge included in AOCL		2			(2	)		229			229
Change in fair value of derivatives, net    of reclassifications		—			—			48			48
Distributions		(463	)		(45,658	)		—			(46,121	)
Balance March 31, 2018	$	20,373		$	2,006,274		$	(7,310	)	$	2,019,337

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Recent Accounting Pronouncements (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Changes And Error Corrections [Abstract]

Summary of Undiscounted Future Minimum Lease Payments

The undiscounted future minimum lease payments are summarized by year in the table below:

(in thousands)
2019	$	1,968
2020		2,287
2021		2,109
2022		2,109
2023		1,593
Thereafter		9,798
Total	$	19,864

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Organization - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019 Property State shares	Dec. 31, 2018 shares
Organization [Line Items]
Number of self-storage properties owned and managed	780
Number of states in which self-storage properties owned and managed | State	28
Number of properties managed under joint ventures	114
Number of properties managed with no ownership	103
Noncontrolling limited partnership unit redemption value	one common share or cash
Geographic Concentration Risk [Member] | Texas [Member] | Revenue [Member]
Organization [Line Items]
Concentration risk, percentage	21.00%
Geographic Concentration Risk [Member] | Florida [Member] | Revenue [Member]
Organization [Line Items]
Concentration risk, percentage	13.00%
Life Storage LP [Member]
Organization [Line Items]
Units of redeemable noncontrolling interest in operating partnership | shares	248,966	248,966
Life Storage LP [Member]
Organization [Line Items]
Percentage of ownership interest of the subsidiary and its limited partnership which controls the operations of the Operating Partnership	99.50%
Warehouse Anywhere LLC [Member] | Life Storage Solutions, LLC [Member]
Organization [Line Items]
Percentage of ownership interest of the subsidiary and its limited partnership which controls the operations of the Operating Partnership	60.00%

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Organization - Summary of Reconciliation of Noncontrolling Interests (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Redeemable Noncontrolling Interest Equity Fair Value [Abstract]
Noncontrolling interest, beginning balance	$ 23,716
Net income attributable to noncontrolling interest in the Operating Partnership	183	$ 160
Distributions	(249)
Adjustment to redemption value	294	$ (1,470)
Noncontrolling interest, ending balance	$ 23,944

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Organization - Summary of Disaggregated Revenues (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Disaggregation Of Revenue [Line Items]
Rental income	$ 124,146	$ 121,624
Operating revenues other than rental income	12,376	11,470
Total operating revenues	136,522	133,094
Management and Acquisition Fee Income [Member]
Disaggregation Of Revenue [Line Items]
Operating revenues other than rental income	3,086	2,395
Revenues Related to Tenant Reinsurance [Member]
Disaggregation Of Revenue [Line Items]
Operating revenues other than rental income	5,815	5,717
Other Operating Income [Member]
Disaggregation Of Revenue [Line Items]
Operating revenues other than rental income	$ 3,475	$ 3,358

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Stock Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expense	$ 0	$ 4,000
Amortization of non-vested stock grants and performance-based awards	$ 1,396,000	$ 1,495,000
Stock options exercised by employees and directors	0	0
Number of shares of non-vested stock that vested	16,821	36,191
Employees [Member] | Non-Vested Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option plan, share based compensation, vesting period (in years)	5 years
Shares of non-vested stock issued	1,000
Fair market value of the non-vested stock on the date of grant	$ 99.10
Aggregate fair value	$ 99,100
Chief Executive Officer, David Rogers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 400,000

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Cash and Restricted Cash - Summary of Reconciliation of Cash and Restricted Cash (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Cash And Cash Equivalents [Abstract]
Cash and cash equivalents	$ 8,875	$ 13,560	$ 7,778
Restricted cash	4,139	505	422
Total cash and restricted cash	$ 13,014	$ 14,065	$ 8,200	$ 9,459

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Investment in Storage Facilities and Intangible Assets - Summary of Activity in Storage Facilities (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Cost:
Beginning balance	$ 4,398,939
Acquisition of storage facilities	66,086
Improvements and equipment additions	10,937
Net increase in construction in progress	996
Dispositions	(1,802)
Ending balance	4,475,156
Accumulated Depreciation:
Beginning balance	704,681
Additions during the period	25,851
Dispositions	(1,236)
Ending balance	$ 729,296

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Investment in Storage Facilities and Intangible Assets - Additional Information (Detail)	3 Months Ended		12 Months Ended
	Mar. 31, 2019 USD ($) Property $ / shares	Mar. 31, 2018 USD ($) $ / shares	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Investment Holdings [Line Items]
Number of storage facilities acquired | Property	2
Payments to acquire businesses and interest in affiliates	$ 10,715,000
Consideration paid, Cash Paid	$ 55,624,000
Deposits paid at the time of contract				$ 200,000
Amortization period for in-place customer leases on a straight-line basis	12 months
Amortization expense related to in-place customer leases	$ 300,000	$ 0
Increase in depreciation expense due to facility replacement	$ 700,000	$ 300,000
Accelerated depreciation reduced basic and diluted earnings per share | $ / shares	$ 0.02	$ 0.01
Scenario, Forecast [Member]
Investment Holdings [Line Items]
Net other liabilities assumed			$ 132,000
Review Avenue Partners, LLC [Member]
Investment Holdings [Line Items]
Equity method investment ownership percentage acquired	60.00%
Payments to acquire businesses and interest in affiliates	$ 10,700,000

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Investment in Storage Facilities and Intangible Assets - Schedule of Purchase Price of Facilities Acquired (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($) Property
Investment Holdings [Line Items]
Number of Properties | Property	2
Purchase Price	$ 66,471
Consideration paid, Cash Paid	55,624
Consideration paid, Carrying Value of Noncontrolling Interest in Joint Venture	10,715
Consideration paid, Net Other Liabilities (Assets) Assumed	132
Acquisition Date Fair Value, In-Place Customer Leases	385
Land [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	31,846
Building, Equipment and Improvements [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	$ 34,240
NY [Member] | Asset Acquired on 1/16/2019 [Member]
Investment Holdings [Line Items]
Number of Properties | Property	1
Date of Acquisition	Jan. 16, 2019
Purchase Price	$ 57,169
Consideration paid, Cash Paid	46,402
Consideration paid, Carrying Value of Noncontrolling Interest in Joint Venture	10,715
Consideration paid, Net Other Liabilities (Assets) Assumed	52
Acquisition Date Fair Value, In-Place Customer Leases	277
NY [Member] | Asset Acquired on 1/16/2019 [Member] | Land [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	30,029
NY [Member] | Asset Acquired on 1/16/2019 [Member] | Building, Equipment and Improvements [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	$ 26,863
Florida [Member] | Asset Acquired on 3/8/2019 [Member]
Investment Holdings [Line Items]
Number of Properties | Property	1
Date of Acquisition	Mar. 08, 2019
Purchase Price	$ 9,302
Consideration paid, Cash Paid	9,222
Consideration paid, Net Other Liabilities (Assets) Assumed	80
Acquisition Date Fair Value, In-Place Customer Leases	108
Florida [Member] | Asset Acquired on 3/8/2019 [Member] | Land [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	1,817
Florida [Member] | Asset Acquired on 3/8/2019 [Member] | Building, Equipment and Improvements [Member]
Investment Holdings [Line Items]
Acquisition Date Fair Value, Fixed Assets	$ 7,377

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Investment in Storage Facilities and Intangible Assets - Schedule of In-place Customer Leases (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Real Estate [Abstract]
In-place customer leases	$ 76,099	$ 75,715
Accumulated amortization	(75,089)	(74,744)
Net carrying value at the end of period	$ 1,010	$ 971

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Unsecured Line of Credit and Term Notes - Borrowings Outstanding on Unsecured Line of Credit and Term Notes (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Revolving line of credit borrowings	$ 177,000	$ 91,000
Total term note principal balance outstanding	1,625,000	1,625,000
Less: unamortized debt issuance costs	(9,390)	(9,778)
Less: unamortized senior term note discount	(4,266)	(4,402)
Term notes payable	1,611,344	1,610,820
Term Note Due June 4, 2020 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	100,000	100,000
Term Note Due August 5, 2021 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	100,000	100,000
Term Note Due April 8, 2024 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	175,000	175,000
Senior Term Note Due July 1, 2026 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	600,000	600,000
Senior Term Note Due December 15, 2027 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	450,000	450,000
Term Note Due July 21, 2028 [Member]
Debt Instrument [Line Items]
Total term note principal balance outstanding	$ 200,000	$ 200,000

XML

Unsecured Line of Credit and Term Notes - Additional Information (Detail) - USD ($)					3 Months Ended		12 Months Ended
	Dec. 07, 2017	Jul. 21, 2016	Jun. 20, 2016	Apr. 08, 2014	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2011	Dec. 31, 2018
Debt Instrument [Line Items]
Amount available on unsecured revolving line of credit					$ 322,700,000
Unamortized senior term note discount					4,266,000			$ 4,402,000
Amortization expense related to deferred debt issuance costs					$ 903,000	$ 891,000
Maximum [Member]
Debt Instrument [Line Items]
Leverage ratio percentage					60.00%
Indenture covenant percentage on unencumbered assets					150.00%
Minimum [Member]
Debt Instrument [Line Items]
Interest coverage ratio on debt					150.00%
Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Leverage ratio percentage					40.00%
Senior Term Note Due December 15, 2027 [Member] | Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument principal amount	$ 450,000,000
Debt instrument,maturity date	Dec. 15, 2027
Debt instrument stated interest rate	3.875%
Debt instrument percentage discount to par	0.477%
Debt instrument, interest payable description					Interest on the 2027 Senior Notes is payable semi-annually in arrears on each June 15 and December 15.
Unamortized senior term note discount	$ 2,100,000
Underwriting discount and other offering expenses	4,000,000.0
Proceeds from senior notes, net	$ 443,900,000
Senior Term Note Due July 1, 2026 [Member] | Unsecured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument principal amount			$ 600,000,000
Debt instrument,maturity date			Jul. 01, 2026
Debt instrument stated interest rate			3.50%
Debt instrument percentage discount to par			0.553%
Debt instrument, interest payable description					Interest on the 2026 Senior Notes is payable semi-annually in arrears on each January 1 and July 1.
Unamortized senior term note discount			$ 3,300,000
Underwriting discount and other offering expenses			5,500,000
Proceeds from senior notes, net			$ 591,200,000
Term Note Due July 21, 2028 [Member]
Debt Instrument [Line Items]
Debt instrument,maturity date		Jul. 21, 2028
Debt instrument stated interest rate		3.67%
Additional secured term note		$ 200,000,000
Term Note Due April 8, 2024 [Member]
Debt Instrument [Line Items]
Debt instrument,maturity date				Apr. 08, 2024
Debt instrument stated interest rate				4.533%
Additional secured term note				$ 175,000,000
Term Note Due April 8, 2024 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate				6.283%
Term Note Due August 5, 2021 [Member]
Debt Instrument [Line Items]
Line of credit facility, expiration date							Aug. 05, 2021
Debt instrument stated interest rate							5.54%
Additional secured term note							$ 100,000,000
Term Note Due August 5, 2021 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt instrument stated interest rate							7.29%
Senior Notes and Term Notes [Member]
Debt Instrument [Line Items]
Amortization expense related to deferred debt issuance costs					$ 500,000	$ 500,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit limit					$ 500,000,000
Line of credit facility, expiration date					Mar. 10, 2023
Basis spread over LIBOR					0.95%
Facility fee					0.15%
Interest rate, line of credit facility					3.45%			3.47%
Revolving Credit Facility [Member] | Term Note Due June 4, 2020 [Member]
Debt Instrument [Line Items]
Debt instrument principal amount					$ 100,000,000
Debt instrument,maturity date					Jun. 04, 2020
Basis spread over LIBOR					1.00%
Debt instrument variable interest rate					3.50%			3.52%
Revolving Credit Facility [Member] | Term Note [Member]
Debt Instrument [Line Items]
Revolving credit limit					$ 900,000,000

XML

Mortgages Payable and Debt Maturities - Summary of Mortgage Payable (Detail) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Mortgages payable	$ 12,204	$ 12,302
4.98% Mortgage Note Due January 1, 2021 [Member]
Debt Instrument [Line Items]
Mortgages payable	2,849	2,863
4.065% Mortgage Note Due April 1, 2023 [Member]
Debt Instrument [Line Items]
Mortgages payable	4,004	4,028
5.26% Mortgage Note Due November 1, 2023 [Member]
Debt Instrument [Line Items]
Mortgages payable	3,853	3,871
5.99% Mortgage Note Due May 1, 2026 [Member]
Debt Instrument [Line Items]
Mortgages payable	$ 1,498	$ 1,540

XML

Mortgages Payable and Debt Maturities - Summary of Mortgage Payable (Parenthetical) (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($) Facility
4.98% Mortgage Note Due January 1, 2021 [Member]
Debt Instrument [Line Items]
Interest rate	4.98%
Mortgage note due date	Jan. 01, 2021
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 9.5
Effective interest rate	5.17%
4.065% Mortgage Note Due April 1, 2023 [Member]
Debt Instrument [Line Items]
Interest rate	4.065%
Mortgage note due date	Apr. 01, 2023
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 7.4
Effective interest rate	4.25%
5.26% Mortgage Note Due November 1, 2023 [Member]
Debt Instrument [Line Items]
Interest rate	5.26%
Mortgage note due date	Nov. 01, 2023
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 7.9
Effective interest rate	5.50%
5.99% Mortgage Note Due May 1, 2026 [Member]
Debt Instrument [Line Items]
Interest rate	5.99%
Mortgage note due date	May 01, 2026
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 6.4
Effective interest rate	6.32%

XML

Mortgages Payable and Debt Maturities - Summary of Debt Obligation and Interest Rate Derivatives (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Debt Instrument [Line Items]
Payables due 2019	$ 295
Payables due 2020	100,413
Payables due 2021	103,122
Payables due 2022	394
Payables due 2023	184,402
Payables due Thereafter	1,425,578
Debt obligations	1,814,204
Line of credit - variable rate LIBOR + 0.95% (3.45% at March 31, 2019) [Member]
Debt Instrument [Line Items]
Payables due 2023	177,000
Debt obligations	177,000
Debt instrument, fair value	177,000
Term note - variable rate LIBOR+1.00% (3.50% at March 31, 2019) [Member]
Debt Instrument [Line Items]
Payables due 2020	100,000
Debt obligations	100,000
Term note, fair value	100,000
Term Note - Fixed Rate 5.54% [Member]
Debt Instrument [Line Items]
Payables due 2021	100,000
Debt obligations	100,000
Term note, fair value	104,916
Term Note - Fixed Rate 4.533% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	175,000
Debt obligations	175,000
Term note, fair value	181,489
Term Note - Fixed Rate 3.50% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	600,000
Debt obligations	600,000
Term note, fair value	586,050
Term Note - Fixed Rate 3.875% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	450,000
Debt obligations	450,000
Term note, fair value	438,803
Term Note - Fixed Rate 3.67% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	200,000
Debt obligations	200,000
Term note, fair value	188,614
Mortgage Note - Fixed Rate 4.98% [Member]
Debt Instrument [Line Items]
Payables due 2019	42
Payables due 2020	59
Payables due 2021	2,748
Debt obligations	2,849
Debt instrument, fair value	2,903
Mortgage Note - Fixed Rate 4.065% [Member]
Debt Instrument [Line Items]
Payables due 2019	72
Payables due 2020	99
Payables due 2021	104
Payables due 2022	108
Payables due 2023	3,621
Debt obligations	4,004
Debt instrument, fair value	4,034
Mortgage Note - Fixed Rate 5.26% [Member]
Debt Instrument [Line Items]
Payables due 2019	53
Payables due 2020	74
Payables due 2021	78
Payables due 2022	83
Payables due 2023	3,565
Debt obligations	3,853
Debt instrument, fair value	4,079
Mortgage Note - Fixed Rate 5.99% [Member]
Debt Instrument [Line Items]
Payables due 2019	128
Payables due 2020	181
Payables due 2021	192
Payables due 2022	203
Payables due 2023	216
Payables due Thereafter	578
Debt obligations	1,498
Debt instrument, fair value	$ 1,607

XML

Mortgages Payable and Debt Maturities - Summary of Debt Obligation and Interest Rate Derivatives (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2019
Line of credit - variable rate LIBOR + 0.95% (3.45% at March 31, 2019) [Member]
Debt Instrument [Line Items]
Interest rate at end of period	3.45%
Basis spread over LIBOR	0.95%
Term note - variable rate LIBOR+1.00% (3.50% at March 31, 2019) [Member]
Debt Instrument [Line Items]
Interest rate at end of period	3.50%
Basis spread over LIBOR	1.00%
Term Note - Fixed Rate 5.54% [Member]
Debt Instrument [Line Items]
Interest rate	5.54%
Term Note - Fixed Rate 4.533% [Member]
Debt Instrument [Line Items]
Interest rate	4.533%
Term Note - Fixed Rate 3.50% [Member]
Debt Instrument [Line Items]
Interest rate	3.50%
Term Note - Fixed Rate 3.875% [Member]
Debt Instrument [Line Items]
Interest rate	3.875%
Term Note - Fixed Rate 3.67% [Member]
Debt Instrument [Line Items]
Interest rate	3.67%
Mortgage Note - Fixed Rate 4.98% [Member]
Debt Instrument [Line Items]
Interest rate	4.98%
Mortgage Note - Fixed Rate 4.065% [Member]
Debt Instrument [Line Items]
Interest rate	4.065%
Mortgage Note - Fixed Rate 5.26% [Member]
Debt Instrument [Line Items]
Interest rate	5.26%
Mortgage Note - Fixed Rate 5.99% [Member]
Debt Instrument [Line Items]
Interest rate	5.99%

XML

Derivative Financial Instruments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019 USD ($) Instrument	Mar. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)
Derivative [Line Items]
Realized (gain) loss on derivatives net of accumulated other comprehensive loss to interest expense	$ 229,000	$ 196,000
Number of interest rate swaps held | Instrument	0
Interest Expense [Member]
Derivative [Line Items]
Realized (gain) loss on derivatives net of accumulated other comprehensive loss to interest expense		$ (30,000)
Senior Term Note Due July 1, 2026 [Member]
Derivative [Line Items]
Settlement of forward starting swap agreements	$ 9,200,000
Amortized period on interest expense	10 years
Interest Rate Swaps Settled in 2018 [Member]
Derivative [Line Items]
Derivative notional amount			$ 100,000,000
Realized (gain) loss on derivatives net of accumulated other comprehensive loss to interest expense	$ 0

XML

Derivative Financial Instruments - Summary of Changes in AOCL (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss beginning of period	$ 2,057,737
Realized loss reclassified from accumulated other comprehensive loss to interest expense	229	$ 196
Unrealized gain from changes in the fair value of the effective portion of the interest rate swaps		81
Amount included in other comprehensive income	229	277
Accumulated other comprehensive loss end of period	2,046,891
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Accumulated other comprehensive loss beginning of period	(6,875)	(7,587)
Accumulated other comprehensive loss end of period	$ (6,646)	$ (7,310)

XML

Fair Value Measurements - Additional Information (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($)	Mar. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 0
Liabilities measured at fair value	$ 0	$ 0

XML

Investment in Joint Ventures - Summary of Company's Unconsolidated Joint Ventures (Detail) $ in Millions	Mar. 31, 2019 USD ($) Property	Dec. 31, 2018 USD ($)
Sovran HHF Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	57
Company common ownership interest	20.00%
Carrying value of investment	$ 84.9	$ 85.8
Sovran HHF Storage Holdings II LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	30
Company common ownership interest	15.00%
Carrying value of investment	$ 13.4	13.4
191 III Life Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	6
Company common ownership interest	20.00%
Carrying value of investment	$ 9.3	9.3
Life Storage-SERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	3
Company common ownership interest	20.00%
Carrying value of investment	$ 3.4	3.5
Life Storage-HIERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	12
Company common ownership interest	20.00%
Carrying value of investment	$ 9.3	9.3
Iskalo Office Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Company common ownership interest	49.00%
Carrying value of investment	$ (0.4)	(0.4)
Urban Box Coralway Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	85.00%
Carrying value of investment	$ 4.3	4.4
SNL/Orix 1200 McDonald Ave., LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	5.00%
Carrying value of investment	$ 2.8	2.8
SNL Orix Merrick, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	5.00%
Carrying value of investment	$ 2.5	2.5
N 32nd Street Self Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	46.00%
Carrying value of investment	$ 1.2	1.2
NYX Don Mills Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	17.00%
Carrying value of investment	$ 1.0	1.0
NYX Sheridan Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	38.30%
Carrying value of investment	$ 0.7	0.7
NYX Appleby Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	37.50%
Carrying value of investment	$ 1.0	$ 1.0
Bluebird Sanford Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	20.50%
Carrying value of investment	$ 0.3
Bluebird Ingram Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Number of Properties | Property	1
Company common ownership interest	46.30%
Carrying value of investment	$ 1.3

XML

Investment in Joint Ventures - Summary of Company's Unconsolidated Joint Ventures (Parenthetical) (Detail)	3 Months Ended
	Mar. 31, 2019 USD ($) Property	Mar. 31, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Distributions from unconsolidated joint ventures | $	$ 2,404,000	$ 2,037,000
Number of storage facilities acquired	2
Sovran HHF Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 219,600,000
Distributions from unconsolidated joint ventures | $	1,700,000
Excess of investment over net asset due to capitalization of acquisition related costs | $	$ 1,700,000
Sovran HHF Storage Holdings LLC [Member] | Arizona [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	11
Sovran HHF Storage Holdings LLC [Member] | Colorado [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	4
Sovran HHF Storage Holdings LLC [Member] | Florida [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	3
Sovran HHF Storage Holdings LLC [Member] | Georgia [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Sovran HHF Storage Holdings LLC [Member] | Kentucky [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	2
Sovran HHF Storage Holdings LLC [Member] | Nevada [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	5
Sovran HHF Storage Holdings LLC [Member] | New Jersey [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	2
Sovran HHF Storage Holdings LLC [Member] | Ohio [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	6
Sovran HHF Storage Holdings LLC [Member] | Pennsylvania [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Sovran HHF Storage Holdings LLC [Member] | Tennessee [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	2
Sovran HHF Storage Holdings LLC [Member] | Texas [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	20
Sovran HHF Storage Holdings II LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 87,800,000
Distributions from unconsolidated joint ventures | $	$ 500,000
Sovran HHF Storage Holdings II LLC [Member] | New Jersey [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	17
Sovran HHF Storage Holdings II LLC [Member] | Pennsylvania [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	3
Sovran HHF Storage Holdings II LLC [Member] | Texas [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	10
191 III Life Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Distributions from unconsolidated joint ventures | $	$ 100,000
Contribution of company to joint venture as share in capital | $	100,000
191 III Life Storage Holdings LLC [Member] | California [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 57,200,000
191 III Life Storage Holdings LLC [Member] | California [Member] | Storage Facilities [Member]
Schedule of Equity Method Investments [Line Items]
Number of storage facilities acquired	6
Life Storage-SERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital | $	$ 0
Life Storage-SERS Storage LLC [Member] | Georgia [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 22,000,000
Life Storage-SERS Storage LLC [Member] | Georgia [Member] | Storage Facilities [Member]
Schedule of Equity Method Investments [Line Items]
Number of storage facilities acquired	3
Life Storage-HIERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 45,400,000
Distributions from unconsolidated joint ventures | $	$ 100,000
Life Storage-HIERS Storage LLC [Member] | Arizona [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	2
Life Storage-HIERS Storage LLC [Member] | Florida [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Life Storage-HIERS Storage LLC [Member] | Texas [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	7
Life Storage-HIERS Storage LLC [Member] | North Carolina [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Life Storage-HIERS Storage LLC [Member] | VIRGINIA
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Iskalo Office Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Rent paid during the period | $	$ 300,000	$ 300,000
Urban Box Coralway Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	6,700,000
SNL/Orix 1200 McDonald Ave., LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 11,600,000
SNL/Orix 1200 McDonald Ave., LLC [Member] | New York [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
SNL Orix Merrick, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	$ 12,300,000
SNL Orix Merrick, LLC [Member] | New York [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
N 32nd Street Self Storage, LLC [Member] | Arizona [Member]
Schedule of Equity Method Investments [Line Items]
Number of self-storage facilities	1
Non-recourse mortgage loan principal outstanding | $	$ 6,300,000
Bluebird Sanford Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	3,200,000
Bluebird Sanford Storage LP [Member] | Common Stock Shares [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital | $	300,000
Bluebird Ingram Storage LP [Member]
Schedule of Equity Method Investments [Line Items]
Non-recourse mortgage loan principal outstanding | $	17,600,000
Bluebird Ingram Storage LP [Member] | Common Stock Shares [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital | $	$ 1,300,000

XML

Investment in Joint Ventures - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Cash payments for property acquisition	$ 55,132
Payments to acquire businesses and interest in affiliates	$ 10,715
Review Avenue Partners, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Ownership percentage acquired	100.00%
Review Avenue Partners, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity method investment ownership percentage acquired	60.00%
Cash payments for property acquisition	$ 46,400
Payoff of mortgage loan	30,000
Payments of transfer tax	700
Payments to acquire businesses and interest in affiliates	10,700
Sovran HHF, Sovran HHF II, 191 III, SERS, HIERS, Urban Box, McDonald, Merrick, N32, Sanford and Ingram [Member]
Schedule of Equity Method Investments [Line Items]
Management and call center fee earned	$ 2,100	$ 1,900
Sovran HHF, Sovran HHF II, 191 III, SERS, HIERS, Urban Box, McDonald, Merrick, N32, Sanford and Ingram [Member] | Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Management and call center fee as a percentage of revenues	5.00%
Sovran HHF, Sovran HHF II, 191 III, SERS, HIERS, Urban Box, McDonald, Merrick, N32, Sanford and Ingram [Member] | Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Management and call center fee as a percentage of revenues	7.00%

XML

Investment in Joint Ventures - Company's Share of Unconsolidated Joint Ventures' Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	$ 811	$ 972
Sovran HHF Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	829	689
Sovran HHF Storage Holdings II LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	413	368
191 III Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(14)	18
Life Storage-SERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(46)	62
Life Storage-HIERS Storage LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	20
Review Avenue Partners LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(280)	(216)
SNL Orix Merrick, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(5)	(16)
SNL/Orix 1200 McDonald Ave., LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(13)
Urban Box Coralway Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(125)
N 32nd Street Self Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	(21)
Iskalo Office Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Income (loss) from equity method investments	$ 53	$ 67

XML

Investment in Joint Ventures - Summary of Unconsolidated Joint Ventures' Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
Schedule of Equity Method Investments [Line Items]
Investment in storage facilities, net	$ 3,745,860		$ 3,694,258
Other assets	30,879		5,921
Total Assets	3,958,803		3,892,212
Mortgages payable	12,204		12,302
Total Liabilities	1,887,968		1,810,759
Unaffiliated partners’ equity	0		0
Company equity	2,046,891	$ 2,019,337	2,057,737	$ 2,028,323
Total Equity	2,046,891		$ 2,057,737
Depreciation and amortization of customer list	(26,227)	(24,764)
Amortization of financing fees	(903)	(891)
Interest expense	(17,819)	$ (17,204)
Unconsolidated Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Investment in storage facilities, net	1,158,144
Investment in office building, net	4,573
Other assets	20,759
Total Assets	1,183,476
Due to the Company	1,807
Mortgages payable	516,061
Other liabilities	11,018
Total Liabilities	528,886
Unaffiliated partners’ equity	519,642
Company equity	134,948
Total Equity	654,590
Total Liabilities and Partners’ Equity	1,183,476
Total revenues	30,915
Property operating expenses	(9,832)
Administrative, management and call center fees	(2,470)
Depreciation and amortization of customer list	(6,823)
Amortization of financing fees	(231)
Income tax expense	(79)
Interest expense	(5,945)
Net income	$ 5,535

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2018
Tax Credit Carryforward [Line Items]
Unrecognized tax benefits	$ 0	$ 0
Interest or penalties related to uncertain tax positions	0	0
Prepaid taxes	100,000			$ 100,000
Deferred tax assets	2,400,000			2,100,000
Deferred tax liability	$ 1,700,000			$ 1,600,000
Corporate income tax rate	21.00%		35.00%
Tax Year 2013 [Member]
Tax Credit Carryforward [Line Items]
Tax years open to examination	2015
Tax Year 2018 [Member]
Tax Credit Carryforward [Line Items]
Tax years open to examination	2018
General and Administrative Expense [Member]
Tax Credit Carryforward [Line Items]
Federal and state income tax expense (benefit)	$ 400,000	$ 500,000

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Earnings Per Share and Earnings Per Unit - Computation of Basic and Diluted Earnings Per Common Share/Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Numerator:
Net income attributable to common shareholders/unitholders	$ 34,454	$ 33,889
Denominator:
Denominator for basic earnings per share/unit – weighted average shares/units	46,564,846	46,452,492
Effect of Dilutive Securities:
Stock options and non-vested stock	72,000	85,000
Denominator for diluted earnings per share/unit - adjusted weighted average shares/units and assumed conversion	46,636,700	46,536,672
Basic earnings per common share/unit attributable to common shareholders/unitholders	$ 0.74	$ 0.73
Diluted earnings per common share/unit attributable to common shareholders/unitholders	$ 0.74	$ 0.73
Life Storage LP [Member]
Numerator:
Net income attributable to common shareholders/unitholders	$ 34,454	$ 33,889
Denominator:
Denominator for basic earnings per share/unit – weighted average shares/units	46,564,846	46,452,492
Effect of Dilutive Securities:
Stock options and non-vested stock	72,000	85,000
Denominator for diluted earnings per share/unit - adjusted weighted average shares/units and assumed conversion	46,636,700	46,536,672
Basic earnings per common share/unit attributable to common shareholders/unitholders	$ 0.74	$ 0.73
Diluted earnings per common share/unit attributable to common shareholders/unitholders	$ 0.74	$ 0.73

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Earnings Per Share and Earnings Per Unit - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the effect of dilutive securities	73,770	118,062
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the effect of dilutive securities		11,000

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Shareholders' Equity - Reconciliation of Changes in Parent Company's Total Shareholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Beginning Balance	$ 2,057,737	$ 2,028,323
Earned portion of non-vested stock	1,396	1,495
Stock option expense		4
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units	(294)	1,470
Net income attributable to common shareholders	34,454	33,889
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Dividends	(46,631)	(46,121)
Ending Balance	2,046,891	2,019,337
Common Stock Shares [Member]
Beginning Balance	466	466
Forfeiture of non-vested stock		(1)
Ending Balance	466	465
Additional Paid-in Capital [Member]
Beginning Balance	2,372,157	2,363,171
Forfeiture of non-vested stock		1
Earned portion of non-vested stock	1,396	1,495
Stock option expense		4
Ending Balance	2,373,553	2,364,671
Dividends in Excess of Net Income [Member]
Beginning Balance	(308,011)	(327,727)
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units	(294)	1,470
Net income attributable to common shareholders	34,454	33,889
Dividends	(46,631)	(46,121)
Ending Balance	(320,482)	(338,489)
Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance	(6,875)	(7,587)
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Ending Balance	$ (6,646)	$ (7,310)

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Shareholders' Equity - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Jun. 14, 2018	Aug. 02, 2017
Stockholders Equity [Line Items]
Common stock value authorized under equity offering program				$ 300,000,000
Buyback Program, authorized repurchase amount					$ 200,000,000
Stock repurchased during period, shares	0	0
Equity Program [Member]
Stockholders Equity [Line Items]
Common stock shares issued under equity offering program	0		0

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Partners' Capital - Reconciliation of Change in Total Partners' Capital (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Partners Capital [Line Items]
Earned portion of non-vested stock	$ 1,396	$ 1,495
Stock option expense		4
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units	294	(1,470)
Net income attributable to common shareholders/unitholders	34,454	33,889
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Life Storage LP [Member]
Partners Capital [Line Items]
Beginning balance of total controlling partners’ capital	2,057,737	2,028,323
Earned portion of non-vested stock	1,396	1,495
Stock option expense		4
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units	(294)	1,470
Net income attributable to common shareholders/unitholders	34,454	33,889
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Distributions	(46,631)	(46,121)
Ending balance of total controlling partners’ capital	2,046,891	2,019,337
Life Storage LP [Member] | Life Storage Holdings, Inc. General Partner [Member]
Partners Capital [Line Items]
Beginning balance of total controlling partners’ capital	20,816	20,478
Forfeiture Of Non Vested Stock		1
Earned portion of non-vested stock	14	15
Net income attributable to common shareholders/unitholders	347	340
Amortization of terminated hedge included in AOCL	2	2
Distributions	(469)	(463)
Ending balance of total controlling partners’ capital	20,710	20,373
Life Storage LP [Member] | Life Storage, Inc. Limited Partner [Member]
Partners Capital [Line Items]
Beginning balance of total controlling partners’ capital	2,043,796	2,015,432
Forfeiture Of Non Vested Stock		(1)
Earned portion of non-vested stock	1,382	1,480
Stock option expense		4
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units	(294)	1,470
Net income attributable to common shareholders/unitholders	34,107	33,549
Amortization of terminated hedge included in AOCL	(2)	(2)
Distributions	(46,162)	(45,658)
Ending balance of total controlling partners’ capital	2,032,827	2,006,274
Accumulated Other Comprehensive Income (Loss) [Member]
Partners Capital [Line Items]
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Accumulated Other Comprehensive Income (Loss) [Member] | Life Storage LP [Member]
Partners Capital [Line Items]
Beginning balance of total controlling partners’ capital	(6,875)	(7,587)
Amortization of terminated hedge included in AOCL	229	229
Change in fair value of derivatives, net of reclassifications		48
Ending balance of total controlling partners’ capital	$ (6,646)	$ (7,310)

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Recent Accounting Pronouncements - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2019 USD ($) Property	Jan. 01, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Number of leased real estate properties under extension options, operates for self-storage facilities | Property	2
Number of leased properties under purchase options | Property	1
Option to purchase property under lease	$ 13,300,000
Operating lease expenses	$ 600,000
Weighted average remaining lease term	10 years 8 months 12 days
Weighted average discount rate	5.30%
Finance Lease, Liability	$ 0
Operating lease commitments	19,864,000
ASU 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Right-of-use assets and related lease liabilities		$ 16,000,000
Operating lease, aggregate right-of-use assets	$ 15,500,000
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsMember
Operating lease liabilities	$ 15,300,000
Operating Lease, Liability, Statement of Financial Position [Extensible List]	us-gaap:AccountsPayableAndAccruedLiabilitiesMember
Minimum [Member] | ASU 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of remaining economic life of asset to define the lease term, major part	75.00%
Percentage of fair value of underlying asset to define the lease term, substantially all	90.00%
Minimum [Member] | Revenue [Member] | Product Concentration [Member] | Revenue From Rental Products [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Concentration risk, percentage	90.00%
Maximum [Member] | ASU 2016-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Percentage of total economic life of underlying asset to define the lease term, at or near the end	25.00%

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Recent Accounting Pronouncements - Summary of Undiscounted Future Minimum Lease Payments (Detail) $ in Thousands	Mar. 31, 2019 USD ($)
Accounting Changes And Error Corrections [Abstract]
2019	$ 1,968
2020	2,287
2021	2,109
2022	2,109
2023	1,593
Thereafter	9,798
Total	$ 19,864

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Commitment and Contingencies - Additional Information (Detail) $ in Thousands		3 Months Ended
	Apr. 30, 2019 USD ($) Property	Mar. 31, 2019 USD ($) Property Facility
Commitment And Contingencies [Line Items]
Number of storage facilities to be acquired | Property		16
Aggregate purchase price of business to be acquired		$ 177,700
Number of storage facilities acquired | Property		2
Cash payments for property acquisition		$ 55,132
Number of remaining facilities to be purchased | Facility		13
Expansion and enhancement contracts		$ 31,200
Subsequent Event [Member]
Commitment And Contingencies [Line Items]
Number of storage facilities acquired | Property	3
Cash payments for property acquisition	$ 33,000

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Subsequent Events - Additional Information (Detail) $ / shares in Units, $ in Thousands				3 Months Ended
	Apr. 30, 2019 USD ($) Property	Apr. 26, 2019 USD ($)	Apr. 02, 2019 $ / shares	Mar. 31, 2019 USD ($) Property
Subsequent Event [Line Items]
Number of storage facilities acquired | Property				2
Cash payments for property acquisition				$ 55,132
Subsequent Event [Member]
Subsequent Event [Line Items]
Number of storage facilities acquired | Property	3
Cash payments for property acquisition	$ 33,000
Dividend declared, date			Apr. 02, 2019
Dividend per common share | $ / shares			$ 1.00
Dividend paid, date			Apr. 26, 2019
Dividend record, date			Apr. 16, 2019
Dividend paid		$ 46,600