XML 44 R31.htm IDEA: XBRL DOCUMENT

Investment in Joint Ventures (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019	Company common ownership interest at June 30, 2019	Carrying value of investment at June 30, 2019	Carrying value of investment at December 31, 2018
Sovran HHF Storage Holdings LLC (“Sovran HHF”)¹	57	20%	$84.3 million	$85.8 million
Sovran HHF Storage Holdings II LLC (“Sovran HHF II”)²	30	15%	$13.3 million	$13.4 million
191 III Life Storage Holdings LLC (“191 III”)³	6	20%	$9.1 million	$9.3 million
Life Storage-SERS Storage LLC (“SERS”)⁴	3	20%	$3.3 million	$3.5 million
Life Storage-HIERS Storage LLC (“HIERS”)⁵	12	20%	$9.2 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%	$4.1 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*	15%	$1.1 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
Other joint ventures	N/A	N/A	$0.3 million	N/A
*Property in development stage

^{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 $219.4 million of principal outstanding at June 30, 2019. During the six months ended June 30, 2019, the Company received $3.2 million of distributions from Sovran HHF. As of June 30, 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.}

^{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 $87.5 million of principal outstanding at June 30, 2019. During the six months ended June 30, 2019, the Company received $1.0 million of distributions from Sovran HHF II.}

^{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 June 30, 2019. During the six months ended June 30, 2019, the Company contributed $0.1 million as its share of capital to the joint venture. During the six months ended June 30, 2019, the Company received $0.2 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 June 30, 2019. During the six months ended June 30, 2019, the Company received $0.1 million of distributions from SERS.}

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 June 30, 2019. During the six months ended June 30, 2019, the Company received $0.2 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 $0.6 million during each of the six months ended June 30, 2019 and 2018. During the six months ended June 30, 2019, the Company received $0.1 million of distributions from Iskalo.}

⁷	^{Urban Box owns a self-storage facility in Florida. Urban Box has entered into a non-recourse mortgage loan with $6.8 million of principal outstanding at June 30, 2019.}

⁸	^{McDonald owns a self-storage facility in New York. McDonald has entered into a non-recourse mortgage loan with $11.8 million of principal outstanding at June 30, 2019.}

⁹	^{Merrick owns a self-storage facility in New York. Merrick has entered into a non-recourse mortgage loan with $12.2 million of principal outstanding at June 30, 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 June 30, 2019.

¹¹	Don Mills is developing a self-storage facility in Ontario, Canada which is expected to be completed in 2020. During the six months ended June 30, 2019, the Company contributed $0.1 million as its share of capital to the joint venture.

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 $3.3 million of principal outstanding at June 30, 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 $17.9 million of principal outstanding at June 30, 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 June 30, 2019			Three Months Ended June 30, 2018			Six Months Ended June 30, 2019			Six Months Ended June 30, 2018
Sovran HHF	$	880		$	739		$	1,709		$	1,428
Sovran HHF II		477			432			890			800
191 III		(1	)		18			(16	)		36
SERS		(74	)		25			(120	)		86
HIERS		11			—			32			—
RAP		—			(217	)		(280	)		(432	)
Merrick		2			(16	)		(3	)		(32	)
McDonald		(11	)		—			(23	)		—
Urban Box		(130	)		—			(254	)		—
N32		(13	)		—			(35	)		—
Iskalo		58			67			110			134
Sanford		(8	)		—			(8	)		—
Ingram		(81	)		—			(81	)		—
	$	1,110		$	1,048		$	1,921		$	2,020

Summary of Unconsolidated Joint Ventures' Financial Statements

A summary of the combined unconsolidated joint ventures’ financial statements as of and for the six months ended June 30, 2019 is as follows:

(dollars in thousands)
Balance Sheet Data:
Investment in storage facilities, net	$	1,156,924
Investment in office building, net		4,530
Other assets		20,419
Total Assets	$	1,181,873
Due to the Company	$	1,041
Mortgages payable		517,087
Other liabilities		12,139
Total Liabilities	$	530,267
Unaffiliated partners’ equity		517,585
Company equity		134,021
Total Partners’ Equity		651,606
Total Liabilities and Partners’ Equity	$	1,181,873
Income Statement Data:
Total revenues	$	62,811
Property operating expenses		(19,300	)
Administrative, management and call center fees		(4,972	)
Depreciation and amortization of customer list		(13,472	)
Amortization of financing fees		(436	)
Income tax expense		(158	)
Interest expense		(11,192	)
Net income	$	13,281