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Management Discussion

• We recorded rental revenues of $150.3 million for the three months ended March 31, 2021, an increase of $21.4 million or 16.6% when compared to rental revenues of $128.9 million for the same period in 2020. This increase in rental revenue was driven by a $9.0 million, or 7.3%, increase in rental revenues at the 531 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 531 core properties considered in same store sales are those included in the consolidated results of operations since January 1, 2020, excluding stores not yet stabilized, four stores significantly impacted by flooding, and two stores that the Company began to fully replace in 2017). The increase in same store rental revenues was a result of a 410 basis point increase in average occupancy along with an increase of 1.3% in rental income per square foot. Also affecting the overall increase in rental revenues was an increase of $12.4 million in rental revenues contributed by stores not included in the same store pool, primarily those acquired in 2020 and 2021. Other operating income, which includes merchandise sales, revenues related to tenant reinsurance, truck rentals, management fees and acquisition fees, increased by $3.6 million for the three months ended March 31, 2021 compared to the same period in 2020 primarily as a result of increased revenues related to the Company’s tenant insurance program and increased revenues from the Company’s Warehouse Anywhere third party logistics and warehousing solution.