UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2009
Commission File Number:
1-13820 (Life Storage, Inc.)
0-24071
LIFE STORAGE, INC.
LIFE STORAGE LP
(Exact name of Registrant as specified in its charter)
Maryland (Life Storage, Inc.) Delaware (Life Storage LP) | 16-1194043 (Life Storage, Inc.) 16-1481551 (Life Storage LP) | |
(State 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)
Securities registered pursuant to Section 12(b) of the Act:
Title of Securities | Exchanges on which Registered | |
Common Stock, $.01 Par Value | ||
New York Stock Exchange |
Securities registered pursuant to section 12(g) of the Act:Units of Limited Partnership Interest(Title of Class)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yeso Noþ
Life Storage, Inc. | Yes ☒ No ☐ | |
Life Storage LP | Yes ☒ No ☐ |
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yeso Noþ
Life Storage, Inc. | Yes ☐ No ☒ | |
Life Storage LP | Yes ☐ No ☒ |
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 and posted on its corporate Web site, if any, 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 and post such files). Yeso Noo
Life Storage, Inc. | Yes ☒ No ☐ | |
Life Storage LP | Yes ☒ No ☐ |
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.þ
Life Storage, Inc. | ☒ | |
Life Storage LP | ☒ |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”filer,” “smaller reporting company,” and “smaller reporting“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. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yeso Noþ
Life Storage, Inc. | Yes ☐ No ☒ | |
Life Storage LP | Yes ☐ No ☒ |
As of June 30, 2017, 46,565,213 shares of Life Storage, Inc.’s Common Stock, $.01 par value per share, were outstanding, and the aggregate market value of the Common Stock held by non-affiliates of Life Storage, Inc. was approximately $3,450,482,283 (based on the closing price of the Common Stock on the New York Stock Exchange on June 30, 2017). As of February 15, 2010, 27,966,97912, 2018, 46,515,831 shares of Common Stock, $.01 par value per share, were outstanding.
As of June 30, 2017, the aggregate market value of the 217,481 units of limited partnership (the “OP Units”) held by non-affiliates of Life Storage LP was $16,115,342 (based on the closing price of the Common Stock of Life Storage, Inc. on the New York Stock Exchange on June 30, 2017). (For this calculation, the market value of all OP Units of Limited Partnership Interest were outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Definitiveregistrant’s Proxy Statement for the 2018 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such proxy statement will be filed with the Securities and Exchange Commission within 120 days of the registrants’ fiscal year ended December 31, 2017.
This report combines the annual reports on Form 10-K for the year ended December 31, 2017 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 December 31, 2017. 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 consolidated statements of shareholders’ equity (or partners’ capital). 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 annual reports on Form 10-K 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.
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 heldread in conjunction with each other to understand the results of the Company’s operations on May 26, 2010 (Part III).
This report also includes separate Item 9A - 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.
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The Company is the entity through which Sovran Self Storage, Inc. (the “Company”), a self-administered and self-managed real estate investment trust (“REIT”), conducts substantially all of the Company’s businesscompany that acquires, owns and owns substantially all of the Company’s assets.manages self-storage properties. We refer to the self-storage properties in which we have an ownership interest, andlease, and/or are managed by us as “Properties.” We began operations on June 26, 1995. We were formed to continue the business of our predecessor company, which had engaged in the self-storage business since 1985. At February 15, 2010,December 31, 2017, we heldhad an ownership interestsinterest in andand/or managed 381 Properties consisting of approximately 24.7 million net rentable square feet, situated706 self-storage properties in 24 states.28 states under the name Life Storage ®. Among our 381 Properties706 self-storage properties are 27 Properties98 properties that we manage for a consolidatedunconsolidated joint venture of which we are a majority owner and 25 Propertiesventures, 42 properties that we manage for a joint venture of whichand have no ownership interest, and two properties that we are a 20% owner.lease. We believe we are the fourthfifth largest operator of self-storage properties in the United States based on facilitiessquare feet owned and managed. Our Properties conduct business under the user-friendlycustomer-friendly name Uncle Bob’s Self-Storage®.
At December 31, 2009,2017, the Parent Company isowned a 98.5%direct or indirect interest in 662 of the Properties through the Operating Partnership, which includes 564 wholly-owned properties and 98 properties owned by unconsolidated joint ventures. In total, we own a 99.5% economic owner ofinterest in the Operating Partnership and controls it through Sovran Holdings, Inc. (“Holdings”),unaffiliated third parties collectively own a wholly owned subsidiary of the Company incorporated in Delaware and the sole general partner of the Operating Partnership. This0.5% limited partnership interest at December 31, 2017. We believe that this structure, is commonly referred toknown as an umbrella partnership real estate investment trust (“UPREIT”). The Board of Directors of Holdings, the members of which are the same as the members of the Board of Directors of the Company, manages the affairs, facilitates our ability to acquire properties by using units of the Operating Partnership by directing the affairs of Holdings. The Company’s limited partner and indirect general partneras currency. By utilizing interests in the Operating Partnership entitle itas currency in facility acquisitions, we may partially defer the seller’s income tax liability which in turn may allow us to share in cash distributions from, and in the profits and losses of, the Operating Partnership in proportion to its ownership interest therein and entitle theobtain more favorable pricing.
The Parent Company to votewas incorporated on all matters requiring a vote of the limited partners.
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We seek to enhance shareholder value through internal growth and acquisition of additional storage properties. Internal growth is achieved through aggressive property management: increasing rents,optimizing rental rates, increasing occupancy levels, controlling costs, maximizing collections, and strategically expanding and improvingenhancing the Properties. Should demographic and economic conditions warrant, we may develop new properties. We believe that there continuecontinues to be opportunities for growth through acquisitions, and constantlyincluding acquisitions through unconsolidated joint ventures of the Company. We seek to acquire self-storage properties that are susceptible to realization of increased economies of scale and enhancedimproved performance through application of our expertise.
Industry Overview
We believe that self-storage facilities offer inexpensive storage space to residential and commercial users. In addition to fully enclosed and secure storage space, many facilities also offer outside storage for automobiles, recreational vehicles and boats. BetterModern facilities, such as those owned and/or managed by the Operating Partnership,Company, are usually fenced and well lighted with gates that are either manually operated or automated access systems, surveillance cameras, and have a full-time manager. Our customers rent space on a month-to-month basis and typically have access to their storage area during businessspace up to 15 hours a day and in certain circumstances are provided with 24-hour access. Individual storage unitsspaces are secured by the customer’s lock, and the customer has sole control of access to the unit.
According to the 20102018 Self-Storage Almanac, of the approximately 48,700estimated 44,000 core self-storage facilities in the United States less than 11%(those properties identified as having self-storage operated as the core business at the address), approximately 19.2% are managed by the ten largest operators. TheThis results in a highly fragmented industry as the remainder of the industry is characterized by numerous small, local operators. The shortage of skilled operators, the scarcity of capital available to small operators for acquisitions and expansions, internet marketing, call centers, and the potential for savings through economies of scale are factors that are leading to consolidation in the industry. We believe that, as a result of this trend, significant growth opportunities exist for operators with proven management systems and sufficient capital resources.resources to grow either through acquisitions or third-party management platforms.
We believe that we have developed substantial expertise inover 30 years of experience acquiring and managing self-storage facilities. Key elementsfacilities, and the combined experience of our key personnel makes us one of the leaders in the industry. We employ the following strategies with respect to our property management:
Our People:
We recognize the importance of quality people to the success of an organization. Accordingly, we hire and train to ensure that associates can reach their full potential. We strive to ensure that each associate conducts themselves in accordance with our core values: Teamwork, Respect, Accountability, Integrity, and Innovation. In turn, we support them with state of the art training tools including an online learning management system, includea company intranet and a network of certified training personnel. Every store team also has frequent, and sometimes daily, interaction with an Area Manager, a Regional Vice President, an Accounting Representative, and other support personnel. As such, our store associates are held to high standards for customer service, store appearance, financial performance, and overall operations.
Training & Development:
Our employees benefit from a wide array of training and development opportunities. New store employees undergo a comprehensive, proprietary training program designed to drive sales and operational results while ensuring the following:
All learning and development activities are facilitated through our online training and development portal. This portal delivers and tracks hundreds of computer-based training and compliance courses; it also administers tests, surveys, and the employee appraisal process. The Company’s training and development program encompasses the tools and support we deem essential to the success of our employees and business.
Marketing and Advertising:
The digital age has changed consumer behavior – the way people shop, their expectations, and the way we communicate with them. As such, we utilize the following strategies to market our properties and products:
We employ a Customer Care Center (call center) that services an average of 43,000 rental inquiries per month. Our Sales Representatives answer incoming sales calls for all of our locations, 364 days a year, 24 hours a day. In addition, they respond to email inquiries and serve as overnight customer service agents to assist customers outside of regular office hours. The team undergoes continuous training that emphasizes closingand coaching in effective storage sales techniques identificationand best practices in customer service, which we believe results in higher conversions of selectedinquiries to rentals.
We maintain a website and involve internal and external expertise to manage our internet presence and leverage a search engine and social media marketing opportunities, networking with possible referral sources,strategy to attract customers and familiarization withgain rentals online, through our customizedcall center and at our stores. Precise targeting and tracking through campaign management information system. In additionand analysis allows us to frequent contact with Area Managers and other Operating Partnership personnel, property managers receive periodic newsletters via our intranet regardingattract the right customers, at the right time, for reasonable costs of acquisition.
Since the need for storage is largely based on timing, the goal is to create positive brand recognition through a variety of operational issues,channels, both digital and fromtraditional. When the time comes for a customer to time attend “roundtable” seminarsselect a storage company, we want the Life Storage brand to be on the top of their mind. We employ a variety of different strategies to create brand awareness; this includes our Life Storage rental trucks, branded merchandise such as moving and packing supplies, extensive regional marketing in the communities in which we operate, and digital targeting using search, social media and remarketing campaigns. We strive to introduce storage solutions early and often to gain the most exposure as possible for the longest amount of time.
Approximately 47% of our self-storage space is comprised of units with other property managers.temperature and/or humidity control capabilities which we market to corporate, retail and residential customers seeking storage solutions for valuable, sentimental, or otherwise sensitive items.
We also have a fleet of rental trucks that serve as an added incentive to choose our storage facilities. We waive the increased customer demandtruck rental charge for services, we have implemented several programs expected to increase profitability. These programs include:
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Ancillary Income:
We know that our 393,000 customers require more than just a storage space. Knowing this, we offer a wide range of other products and services that fulfill their needs while providing us with ancillary income. Whereas our Life Storage trucks are available with no rental charge for new move-in customers, they are available for rent to non-customers and existing customers. AsWe also rent moving dollies and blankets, and we carry a convenience towide assortment of moving and packing supplies including boxes, tape, locks, and other essential items. For those customers we sell items such as locks, boxes, tarps, etc. to make theirwho do not carry storage experience easier. We alsoinsurance, we make available renters insurance through a third party carrier, on which we earn a commission. Incomean administrative fee. We also receive incidental income from incidental truck rentals, billboards and cell towerstowers.
Each of our primary business functions is also earned by us.
Our proprietary operating software (“ubOS”) is installed at all locations and performs billing, collectionsthe functions necessary for field personnel to efficiently and reservation functionseffectively run a property. This includes customer account management, automatic imposition of late fees, move-in and move-out analysis, generation of essential legal notices, and marketing reports to aid in regional marketing efforts. Financial reports are automatically transmitted to our Corporate Offices overnight to allow for strict accounting oversight.
ubOS is linked with each Property. It also tracksof our primary sales channels (customer care center, internet, store) allowing for real-time access to space type and inventory, pricing, promotions, and other pertinent store information. This robust flow of information usedfacilitates our commitment to capturing prospective customers from all channels.
ubOS provides our revenue management team with raw data on historical pricing, move-in and move-out activity, specials and occupancies, etc. This data is utilized in developing marketing plans based on occupancy levelsthe various algorithms that form the foundation of our revenue management program. Changes to pricing and customer demographics and histories. The systemspecials are “pushed out” to all sales channels instantaneously.
ubOS generates daily, weekly and monthly financial reports for each Propertyproperty that are transmittedprovide our accounting and audit departments with the necessary oversight of transactions; this allows us to maintain proper control of receipts.
Revenue Management:
Our proprietary revenue management system is constantly evolving through the efforts of our principal office each night. The system also requiresrevenue management team comprised of a property managergroup of analysts. We have the ability to input a descriptive explanationchange pricing instantaneously for all debitany single unit type, at any single location, based on the occupancy, competition, and credit transactions, paid-to-dateforecasted changes and all other discretionary activities, which allows the accounting staff at our principal office to promptly review all such transactions. Late charges are automatically imposed. More sensitive activities, such asin demand. By analyzing current customer rent tenures, we can implement rental rate changes and unit size or number changes, are completed only by Area Managers. Our customized management information system permitsincreases at optimal times to increase revenues. Advanced pricing analytics enables us to add new facilitiesreduce the amount of concessions, attracting a more stable customer base and discouraging short-term price shoppers. This system continues to drive revenue stability and/or growth throughout our portfolio with minimal additional overhead expense.
Property Maintenance:
We take great pride in the appearance and structural integrity of our Properties. All of our Properties go through a thorough annual inspection performed by experienced project managers. These inspections provide the basis for short and long term planned projects that are subject to regularall performed under a standardized set of specifications. Routine maintenance such as landscaping, pest control, and routine maintenance procedures, which are designed to maintain the structure and appearance of our buildings and grounds. A staff headquartered in our principal office is responsible for the upkeep of the Properties, and all maintenance servicesnowplowing is contracted throughto local providers such as lawn service, snowplowing, pest control, gate maintenance, HVACto whom we clearly communicate our standards. Further, our software tracks repairs, paving, painting, roofing, etc. A codified setmonitors contractor performance and measures the useful life of specifications has been designed and is applied to all work performed on our Uncle Bob’s stores.assets. As with many other aspects of our Operating Partnership,Company, our size has allowed us to enjoy relatively low maintenance costs because we have the benefit of economies of scale in purchasing, travel, and overhead absorption.
Environmental and Other Regulations
We are subject to federal, state, and local environmental regulations that apply generally to the ownership of real property. We have not received notice from any governmental authority or private party of any material environmental noncompliance, claim, or liability in connection with any of the Properties, and are not aware of any environmental condition with respect to any of the Properties that could have a material adverse effect on our financial condition or results of operations.
The Properties are also generally subject to the same types of local regulations governing other real property, including zoning ordinances. We believe that the Properties are in substantial compliance with all such regulations.
Insurance
Each of the Properties is covered by fire and property insurance (including comprehensive liability)liability and business interruption), and all-risk property insurance policies, which are provided by reputable companies and on commercially reasonable terms. In addition, we maintain a policy insuring against environmental liabilities resulting from tenant storage on terms customary for the industry, and title insurance insuring fee title to the Operating Partnership-ownedCompany-owned Properties in an amount that we believe to be adequate.
5
The Tax Cuts and Jobs Act
The Tax Cuts and Jobs Act (the “TCJA”) was passed by Congress on December 20, 2017 and signed into law by President Trump on December 22, 2017. The TCJA significantly changed the U.S. federal income tax purposeslaws applicable to businesses and their owners, including REITs and their shareholders. Technical corrections or other amendments to the TCJA or administrative guidance interpreting the TCJA may be forthcoming at any time. We cannot predict the long-term effect of the TCJA or any future law changes on us or our shareholders. A brief summary of the key changes from the TCJA that directly impact us and, potentially, our shareholders is set forth below. The changes described are effective for taxable years beginning after December 31, 2017, unless otherwise noted.
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, will apply to income earned by our taxable REIT subsidiary. This reduced rate also applies to the amount that we must withhold from our distributions to non-U.S. shareholders that are designated as capital gain dividends (or that could have been designated as capital gain dividends). The TCJA also repeals the alternative minimum tax imposed on C corporations.
The TCJA reduces the highest marginal income tax rate applicable to U.S. individuals from 39.6% to 37% (excluding the 3.8% Medicare tax on net investment income). Domestic non-corporate taxpayers continue to pay a maximum 20% rate on long-term capital gains and qualified dividend income. However, the TCJA also will allow domestic non-corporate taxpayers to deduct 20% of their dividends from REITs, excluding capital gain dividends and qualified dividend income (which continue to be subject to the 20% rate). As a result, dividend income received by our domestic non-corporate shareholders will be subject to a maximum effective federal income tax rate of 29.6% (plus the 3.8% Medicare tax on net investment income). The cumulative amount that a domestic non-corporate taxpayer may deduct for any taxable year with respect to ordinary REIT dividends from all sources (together with certain other categories of income that are eligible for such 20% deduction) may not exceed 20% of such person’s total taxable income (excluding any net capital gain). The income tax rate changes applicable to domestic non-corporate taxpayers and the 20% deduction for ordinary REIT dividends apply for taxable years beginning after December 31, 2017 and before January 1, 2026.
The TCJA generally limits the deduction for net business interest to 30% of adjusted taxable income (excluding non-business income, net operating losses, business interest income, and, for taxable years beginning before January 1, 2022, computed without regard to depreciation and amortization). This limitation on the deductibility of net business interest could result in additional taxable income for us and our partners are required to include their respective shares of profits and losses in their income tax returns.
Competition
The primary factors upon which competition in the self-storage industry is based are location, rental rates, suitability of the property’s design to prospective customers’ needs, and the manner in whichhow the property is operated and marketed. We believe we compete successfully on these bases.factors. The extent of competition depends significantly on local market conditions. We seek to locate facilities so aswhere we can increase market share while not to causeadversely affecting any of our Properties to compete with one another for customers, butexisting locations in that market. However, the number of self-storage facilities in a particular area could have a material adverse effect on the performance of any of the Properties.
Several of our competitors including Public Storage, U-Haul, and Extra Space Storage, are larger and have substantially greater financial resources than we do. These larger operators may, among other possible advantages, be capable of greater leverage and the payment of higher prices for acquisitions.
Investment Policy
While we emphasize equity real estate investments, we may, at our discretion, invest in mortgage and other real estate interests related to self-storage properties in a manner consistent with the Company’sour qualification as a REIT. We may also retain a purchase money mortgage for a portion of the sale price in connection with the disposition of Properties from time to time. Should investment opportunities become available, we may look to acquire additional self-storage properties via anew or existing joint-venture partnershippartnerships or similar entity.entities. We may or may not elect to have a significant investment in such a venture, but would use such an opportunity to expand our portfolio of branded and managed properties.
Subject to the percentage of ownership limitations and gross income tests necessary for the Company’s REIT qualification, we also may invest in securities of entities engaged in real estate activities or securities of other issuers, including for the purpose of exercising control over such entities.
Any disposition decision of our Properties is based on a variety of factors, including, but not limited to, the (i) potential to continue to increase cash flow and value, (ii) sale price, (iii) strategic fit with the rest of our portfolio, (iv) potential for, or existence of, environmental or regulatory issues, (v) alternative uses of capital, and (vi) maintaining qualification as a REIT.
During 2009 we2017, the Company sold fivetwo non-strategic storage facilities located in Massachusetts, North Carolinaproperties and Pennsylvania forreceived net cash proceeds of $16.3$16.9 million, resulting in a loss of $1.6a approximately $3.5 million. The Company has subsequently leased one of the properties sold during 2017 and will continue to operate the property through March 2020. Due to the Company’s continuing involvement in this property, the related gain on the sale of this property has been deferred and will be recognized by the Company upon termination of this lease. During 20082016, we sold oneeight non-strategic storage facility locatedproperties in MichiganAlabama, Georgia, Mississippi, Texas and Virginia for net cash proceeds of $7.0approximately $34.1 million, resulting in a gain of $0.7approximately $15.3 million. NoDuring 2015, we sold three non-strategic storage facilities were sold in 2007.
Distribution Policy
We intend to pay regular quarterly distributions to our unitholders.shareholders. However, future distributions by us will be at the discretion of the Board of Directors and will depend on the actual cash available for distribution, our financial condition and capital requirements, the annual distribution requirements under the REIT provisions of the Code and such other factors as the Board of Directors deems relevant. In order to maintain the Company’sour qualification as a REIT, the Companywe must make annual distributions to shareholders of at least 90% of the Company’sour REIT taxable income (which does not include capital gains)gains or losses). Under certain circumstances, we may be required to make distributions in excess of cash available for distribution in order to meet this requirement.
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The following sets forth certain financing activities during the year ended December 31, 2017.
On June 25, 2008, we entered into agreements relating to newDecember 7, 2017, the Operating Partnership issued $450 million in aggregate principal of 3.875% unsecured credit arrangements, and received funds under those arrangements. As part of the agreements, we entered into a $250 million unsecured term note maturing in June 2012 bearing interest at LIBOR plus 1.625%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 on June 15 and December 15, beginning on June 15, 2018. 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 and other offering expenses totaling $4.0 million, totaled $443.9 million. The proceeds from this term note were primarily used to repay $225.0 million of the Operating Partnership’s previousCompany’s then existing variable rate term notes and to repay $210.0 million of the then outstanding balance on the Company’s line of credit.
Amounts outstanding on the Company’s line of credit that was to mature in September 2008, the Operating Partnership’s term note that was to mature in September 2009, the term note maturing in July 2008, and to provide for working capital. In October 2009, the Operating Partnership repaid $100 million of the term note entered into in June 2008. The 2008 agreements also provide for a $125 million (expandable to $175 million) revolving line of credit maturing June 2011 bearing interest at a variable rate equal to LIBOR plus 1.375%, and requires a 0.25% facility fee. At December 31, 2009, there was $125 million available on the unsecured line of credit.
To the extent that we desire to obtain additional capital to pay distributions, to provide working capital, to pay existing indebtedness or to finance acquisitions, expansions or development of new properties, we may utilize amounts available under the expanded line of credit, common or preferred stock offerings, floating or fixed rate debt financing, retention of cash flow (subject to satisfying the Company’sour distribution requirements under the REIT rules) or a combination of these methods. Additional debt financing may also be obtained through mortgages on our Properties, which may be recourse, non-recourse, or cross-collateralized and may contain cross-default provisions. We have not established any limit on the number or amount of mortgages that may be placed on any single Property or on our portfolio as a whole, although certain of our existing term loans contain limits on overall mortgage indebtedness. For additional information regarding borrowings and equity activities, see Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Operations—Liquidity and Capital Resources” and Note 7Notes 5 and 6 to the Consolidated Financial Statements filed herewith.
Employees
We currently employ a total of 1,0511,792 employees, including 381706 property managers, 2447 area managers, and 511 assistant785 associate managers and part-time employees. At our headquarters, in addition to our threefive senior executive officers, we employ 132249 people engaged in various support activities, including accounting, human resources, customer care, and management information systems. None of our employees are covered by a collective bargaining agreement. We consider our employee relations to be excellent.
We file with the U.S. Securities and Exchange Commission quarterly and annual reports on Forms 10-Q and 10-K, respectively, current reports on Form 8-K, and proxy statements pursuant to the Securities Exchange Act of 1934, in addition to other information as required. The public may read and copy any materials that we file with the SEC at the SEC’s Public Reference Room at 100 F Street, NE, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1 (800) SEC-0330. We file this information with the SEC electronically, and the SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports are available free of charge on our web site athttp://www.sovranss.comwww.lifestorage.com as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. In addition,
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Also, copies of our annual report and Charters of our Governance Committee, Audit Committee, and Compensation Committee will be made available, free of charge, upon written request to Sovran SelfLife Storage, Inc., Attn: Investor Relations, 6467 Main Street, Williamsville, NY 14221.
You should carefully consider the risks described below, together with all of the other information included in or incorporated by reference into ourForm 10-K,, as part of your evaluation of the Operating Partnership.Company. If any of the following risks actually occur, our business could be harmed. In such case, the trading price of our securities could decline, and you may lose all or part of your investment.
Our Acquisitions May Not Perform as Anticipated
We have completed manyhundreds of acquisitions of self-storage facilities since the Company’sour initial public offering of common stock in June 1995. Our strategyOne of our strategies is to continue to grow by acquiring additional self-storage facilities. Acquisitions entail risks that investments will fail to perform in accordance with our expectations and that ourexpectations. Our judgments with respect to the prices paid for acquired self-storage facilities and the costs of any improvements required to bring an acquired property up to our standards established for the market position intended for that property willmay prove to be inaccurate. Acquisitions also involve general investment risks associated with any new real estate investment.
We May Incur Problems with Our Real Estate Financing
Unsecured Credit Facility, Term Notes and TermSenior Notes.We have a line of credit and term note agreements with a syndicate of financial institutions and other lenders.lenders, along with senior debt of $1,050 million. This unsecured credit facility and the term notes areindebtedness is recourse to us and the required payments are not reduced if the economic performance of any of the properties declines. The unsecured credit facility limitsfacilities limit our ability to make distributions to our unitholders,shareholders, except in limited circumstances.
Rising Interest Rates.Rates. Indebtedness that we incur under the unsecured credit facility and bank term notes bearbears interest at a variable rate. Accordingly, increases in interest rates could increase our interest expense, which would reduce our cash available for distribution and our ability to pay expected distributions to our unitholders.shareholders. We manage our exposure to rising interest rates using interest rate swaps and other available mechanisms. If the amount of our indebtedness bearing interest at a variable rate increases, our unsecured credit facility may require us to enter into additional interest rate swaps.
Refinancing May Not Be Available.It may be necessary for us to refinance our unsecured credit facilityindebtedness through additional debt financing or equity offerings. If we were unable to refinance this indebtedness on acceptable terms, we might be forced to dispose of some of our self-storage facilities upon disadvantageous terms, which might result in losses to us and might adversely affect the cash available for distribution. If prevailing interest rates or other factors at the time of refinancing result in higher interest rates on any refinancings, our interest expense would increase, which would adversely affect our cash available for distribution and our ability to pay expected distributions to unitholders.
Covenants and Risk of Default. Our unsecured credit facility and term notesloan instruments require us to operate within certain covenants, including financial covenants with respect to leverage, fixed charge coverage, minimum net worth,
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Reduction in or Loss of Credit Rating. Certain of our debt instruments require us to maintain an investment grade rating from at least one and in some cases two debt ratings agencies. Should we receive a reduction in our credit rating from the agencies, the interest rate on our line of credit would increase by up to 0.50% and the interest rate on $100 million of our bank term notes would increase by up to 0.65%. Should we fail to attain an investment grade rating from the agencies, the interest rates on our $100 million term note due 2021 and our $175 million term note due 2024 would each increase by 1.750%.
Our Board of Directors currently has a policy of limiting the amount of our debt at the time of incurrence to less than 50% of the sum of the market value of the Company’sour issued and outstanding common stock and preferred stock plus the amount of our debt at the time that debt is incurred. However, our organizational documents do not contain any limitation on the amount of indebtedness we might incur. Accordingly, our Board of Directors could alter or eliminate the current policy limitation on borrowing without a vote of our unitholders.shareholders. We could become highly leveraged if this policy were changed. However, our ability to incur debt is limited by covenants in our bank credit arrangements.
We Are Subject to the Risks Posed by Fluctuating Demand and Significant Competition in the Self-Storage Industry
Our self-storage facilities are subject to all operating risks common to the self-storage industry. These risks include but are not limited to the following:
Decreases in demand for rental spaces in a particular locale;
Changes in supply of similar or competing self-storage facilities in an area;
Changes in market rental rates; and
Inability to collect rents from customers.
Our current strategy is to acquire interests only in self-storage facilities. Consequently, we are subject to risks inherent in investments in a single industry. Our self-storage facilities compete with other self-storage facilities in their geographic markets. As a result ofDue to competition, the self-storage facilities could experience a decrease in occupancy levels and rental rates, which would decrease our cash available for distribution. We compete in operations and for acquisition opportunities with companies that have substantial financial resources. Competition may reduce the number of suitable acquisition opportunities offered to us and increase the bargaining power of property owners seeking to sell. The self-storage industry has at times experienced overbuilding in response to perceived increases in demand. A recurrence of overbuilding might cause us to experience a decrease in occupancy levels, limit our ability to increase rents, and compel us to offer discounted rents.
Our Real Estate Investments Are Illiquid and Are Subject to Uninsurable Risks and Government Regulation
General Risks.Our investments are subject to varying degrees of risk generally related to the ownership of real property. The underlying value of our real estate investments and our income and ability to make distributions to our unitholdersshareholders are dependent upon our ability to operate the self-storage facilities in a manner sufficient to maintain or increase cash available for distribution. Income from our self-storage facilities may be adversely affected by the following factors:
Changes in national economic conditions;
Changes in general or local economic conditions and neighborhood characteristics;
Competition from other self-storage facilities;
Changes in interest rates and in the availability, cost and terms of financing;
The impact of present or future environmental legislation and compliance with environmental laws;
The ongoing need for capital improvements, particularly in older facilities;
Changes in real estate tax rates and other operating expenses;
Adverse changes in governmental rules and fiscal policies;
Uninsured losses resulting from casualties associated with civil unrest, acts of God, including natural disasters, and acts of war;
Adverse changes in zoning laws; and
Other factors that are beyond our control.
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Uninsured and Underinsured Losses Could Reduce the Value of our Self Storage Facilities.Some losses, generally of a catastrophic nature, that we potentially face with respect to our self-storage facilities may be uninsurable or not insurable at an acceptable cost. Our management uses its discretion in determining amounts, coverage limits and deductibility provisions of insurance, with a view to acquiring appropriate insurance on our investments at a reasonable cost and on suitable terms. These decisions may result in insurance coverage that, in the event of a substantial loss, would not be sufficient to pay the full current market value or current replacement cost of our lost investment. Inflation, changes in building codes and ordinances, environmental considerations, and other factors also might make it infeasible to use insurance proceeds to replace a property after it has been damaged or destroyed. Under those circumstances, the insurance proceeds received by us might not be adequate to restore our economic position with respect to a particular property.
Possible Liability Relating to Environmental Matters.Under various federal, state and local environmental laws, ordinances and regulations, a current or previous owner or operator of real property may be liable for the costs of removal or remediation of hazardous or toxic substances on, under, or in that property. Those laws often impose liability even if the owner or operator did not cause or know of the presence of hazardous or toxic substances and even if the storage of those substances was in violation of a customer’s lease. In addition, the presence of hazardous or toxic substances, or the failure of the owner to address their presence on the property, may adversely affect the owner’s ability to borrow using that real property as collateral. In connection with the ownership of the self-storage facilities, we may be potentially liable for any of those costs.
Americans with Disabilities Act.The Americans with Disabilities Act of 1990, or ADA, generally requires that buildings be made accessible to persons with disabilities. A determination that we are not in compliance with the ADA could result in imposition of fines or an award of damages to private litigants. If we were required to make modifications to comply with the ADA, our results of operations and ability to make expected distributions to our unitholdersshareholders could be adversely affected.
There Are Limitations on the Ability to Change Control of Sovran
Limitation on Ownership and Transfer of Shares.To maintain the Company’sour qualification as a REIT, not more than 50% in value of itsour outstanding shares of stock may be owned, directly or indirectly, by five or fewer individuals, as defined in the Code. To limit the possibility that we will fail to qualify as a REIT under this test, the Company’sour Amended and Restated Articles of Incorporation (“Articles of Incorporation”) include ownership limits and transfer restrictions on shares of itsour stock. The Company’sOur Articles of Incorporation limit ownership of itsour issued and outstanding stock by any single shareholder to 9.8% of the aggregate value of itsour outstanding stock, except that the ownership by some of itsour shareholders is limited to 15%.
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Have the effect of precluding an acquisition of control of the Company by a third party without consent of our Board of Directors even if the change in control would be in the interest of shareholders; and
Limit the opportunity for shareholders to receive a premium for shares of our common stock they hold that might otherwise exist if an investor were attempting to assemble a block of common stock in excess of 9.8% or 15%, as the case may be, of the outstanding shares of our stock or to otherwise effect a change in control of the Company.
Our Board of Directors may waive the ownership limits if it is satisfied that ownership by those shareholders in excess of those limits will not jeopardize Company’sour status as a REIT under the Code or in the event it determines that it is no longer in the Company’sour best interests to be a REIT. Waivers have been granted to the former holders of the Company’sour Series C preferred stock, FMR Corporation, and Cohen & Steers, Inc. and Invesco Advisers, Inc. A transfer of itsour common stock and/or preferred stock to a person who, as a result of the transfer, violates the ownership limits may not be effective under some circumstances.
Other Limitations.Other limitations could have the effect of discouraging a takeover or other transaction in which holders of some, or a majority, of the Company’sour outstanding common stock might receive a premium for their shares of the Company’sour common stock that exceeds the then prevailing market price or that those holders might believe to be otherwise in their best interest. The issuance of additional shares of preferred stock could have the effect of delaying or preventing a change in control of Sovranthe Company even if a change in control were in the shareholders’ interest. In addition, the Maryland General Corporation Law, or MGCL, imposes restrictions and requires that specifiedspecific procedures with respect to the acquisition of stated levels of share ownership and business combinations, including combinations with interested shareholders. These provisions of the MGCL could have the effect of delaying or preventing a change in control of SovranLife Storage even if a change in control were in the shareholders’ interest. WaiversOur bylaws contain a provision exempting from the MGCL control share acquisition statute any and exemptions have been granted to the initial purchasersall acquisitions by any person of the Company’s former Series C preferred stock in connection with these provisionsshares of the MGCL.our stock. However, this provision may be amended or eliminated at any time. In addition, under the Operating Partnership’s agreement of limited partnership, in general, we may not merge, consolidate or engage in any combination with another person or sell all or substantially all of our assets unless that transaction includes the merger or sale of all or substantially all of the assets of the Operating Partnership, which requires the approval of the holders of 75% of the limited partnership interests thereof. If we were to own less than 75% of the limited partnership interests in the Operating Partnership, this provision of the limited partnership agreement could have the effect of delaying or preventing us from engaging in some change of control transactions.
We intend to continue to operate in a manner that will permit itus to qualify as a REIT under the Code. We have not requested and do not plan to request a ruling from the Internal Revenue Service (“IRS”) that we qualify as a REIT, and the statements in this Annual Report on Form 10-K are not binding on the IRS or any court. Qualification as a REIT involves the application of highly technical and complex Code provisions for which there are only limited judicial and administrative interpretations. Continued qualification as a REIT depends upon the Company’sour continuing ability to meet various requirements concerning, among other things, the ownership of itsour outstanding stock, the nature of itsour assets, the sources of itsour income and the amount of itsour distributions to our shareholders. The fact that we hold substantially all of our assets through our Operating Partnership and its shareholders.
If the Companywe were to fail to qualify as a REIT in any taxable year and are unable to avail ourselves of certain savings provisions set forth in the CompanyCode, we would not be allowed a deduction for distributions to shareholders in computing itsour taxable income and would be subject to federal income tax (including any applicable alternative minimum tax)possibly increased state and local taxes) on itsour taxable income at regular corporate rates. Unless entitled to relief under certain Code provisions, the Companywe also would be ineligible for qualification as a REIT for
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We MayWill Pay Some Taxes Even if We Qualify as a REIT, Reducing Cash Available for Unitholders
Even if the Company qualifieswe qualify as a REIT for federal income tax purposes, we are required to pay some federal, foreign, state and local taxes on our income and property. CertainFor example, we will be subject to income tax to the extent we distribute less than 100% of our REIT taxable income (including capital gains). Additionally, we will be subject to a 4% nondeductible excise tax on the Company’s corporateamount, if any, by which dividends paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from prior years. Moreover, if we have net income from “prohibited transactions,” that income will be subject to a 100% tax. In general, prohibited transactions are sales or other dispositions of property held primarily for sale to customers in the ordinary course of business. The determination as to whether a particular sale is a prohibited transaction depends on the facts and circumstances related to that sale. While we will undertake sales of assets if those assets become inconsistent with our long-term strategic or return objectives, we do not believe that those sales should be considered prohibited transactions, but there can be no assurance that the IRS would not contend otherwise. The need to avoid prohibited transactions could cause us to forego or defer sales of properties that might otherwise be in our best interest to sell.
One of our subsidiaries havehas elected to be treated as a “taxable REIT subsidiaries”subsidiary” of the Company for federal income tax purposes. A taxable REIT subsidiary is taxabletaxed as a regular corporation and is limited in its ability to deduct interest payments made to us in excess of a certain amount.amount, in addition to other limitations imposed on the deductibility of interest under the TCJA. In addition, if the Company receiveswe receive or accruesaccrue certain amounts and the underlying economic arrangements among itsbetween our taxable REIT subsidiariessubsidiary and itus are not comparable to similar arrangements among unrelated parties, the Companywe will be subject to a 100% penalty tax on those payments in excess of amounts deemed reasonable between unrelated parties.
Finally, some state and local jurisdictions may tax some of our income even though as a REIT the Company iswe are not subject to federal income tax on that income because not all states and localities follow the federal income tax treatment of REITs. To the extent that the Companywe are or any taxable REIT subsidiary is required to pay federal, foreign, state or local taxes, we will have less cash available for distribution to unitholders.shareholders.
Complying with REIT Requirements May Limit Our Ability to Hedge Effectively and May Cause Us to Incur Tax Liabilities
The REIT provisions of the Code may limit our ability to hedge our assets and operations. Under these provisions, any income that we generate from transactions intended to hedge our interest rate risk will be excluded from gross income for purposes of the REIT 75% and 95% gross income tests if the instrument hedges interest rate risk on liabilities used to carry or acquire real estate assets or manages the risk of certain currency fluctuations, and such instrument is properly identified under applicable Treasury Regulations. Income from hedging transactions that do not meet these requirements will generally constitute non-qualifying income for purposes of both the REIT 75% and 95% gross income tests. As a result of these rules, we may have to limit our use of hedging techniques that might otherwise be advantageous or implement those hedges through a taxable REIT subsidiary. This could increase the cost of our hedging activities because our taxable REIT subsidiary would be subject to tax on gains or expose us to greater risks associated with changes in interest rates than we would otherwise want to bear. In addition, losses in our taxable REIT subsidiary arising after December 31, 2017 will generally not provide any tax benefit, except for being carried forward against future taxable income in the taxable REIT subsidiary.
Complying with the REIT Requirements May Cause Us to Forgo and/or Liquidate Otherwise Attractive Investments
To qualify as a REIT, we must continually satisfy tests concerning, among other things, the sources of our income, the nature and diversification of our assets, the amounts that we distribute to our shareholders and the ownership of our shares. To meet these tests, we may be required to take or forgo taking actions that we would otherwise consider advantageous. For instance, in order to satisfy the gross income or asset tests applicable to REITs under the Code, we may be required to forgo investments that we otherwise would make. Furthermore, we may be required to liquidate from our portfolio otherwise attractive investments. In addition, we may be required to make distributions to shareholders at disadvantageous times or when we do not have funds readily available for distribution. These actions could reduce our income and amounts available for distribution to our shareholders. Thus, compliance with the REIT requirements may hinder our investment performance.
If the Operating Partnership Fails to Qualify as a Partnership for Federal Income Tax Purposes, We Could Fail to Qualify as a REIT and Suffer Other Adverse Consequences
We believe that the Operating Partnership is organized and operated in a manner so as to be treated as a partnership and not an association or a publicly traded partnership taxable as a corporation, for federal income tax purposes. As a partnership, the Operating Partnership is not subject to federal income tax on its income. Instead, each of the partners is allocated its share of the Operating Partnership’s income. No assurance can be provided, however, that the IRS will not challenge the Operating Partnership’s status as a partnership for federal income tax purposes, or that a court would not sustain such a challenge. If the IRS were successful in treating the Operating Partnership as an association or publicly traded partnership taxable as a corporation for federal income tax purposes, we would fail to meet the gross income tests and certain of the asset tests applicable to REITs and, accordingly, would cease to qualify as a REIT. Also, the failure of the Operating Partnership to qualify as a partnership would cause it to become subject to federal corporate income tax, which would reduce significantly the amount of its cash available for distribution to its partners, including us.
The Tax Cuts and Jobs Act May Impact the Attractiveness of an Investment in our Stock in Ways Difficult to Anticipate
The Tax Cuts and Jobs Act (the “TCJA”), signed into law in late 2017, significantly changed the U.S. federal income tax law applicable, and is generally for taxable years beginning after December 31, 2017. The TCJA reduced corporate and non-corporate income tax rates and changed numerous other provisions of the Code that may affect the taxation of REITs and their shareholders. These changes generally appear favorable to REITs; however, certain changes to the U.S. federal income tax laws pursuant to the TCJA could have a material and adverse effect on us. Some of these changes could reduce the relative competitive advantage of companies operating as REITs as opposed to companies not operating as REITs, including:
the reduction in tax rates applicable to individuals and C corporations, which could reduce the relative attractiveness of the generally single-level of taxation on REIT distributions;
the immediate expensing of capital expenditures, which could likewise reduce the relative attractiveness of the REIT structure; and
the limit on the deductibility of interest expense, which could increase the distribution requirement of REITs.
Many changes applicable to individual taxpayers are temporary – applying to taxable years beginning after December 31, 2017 and before January 1, 2026. The TCJA makes numerous other changes to the tax law that do not affect REITs directly, but these changes could impact our shareholders and, therefore, could indirectly affect us.
Furthermore, the TCJA was adopted in a short period of time without hearings. It is likely that Congress will have to review, and possibly modify, provisions of the TCJA in subsequent tax legislation. It is not possible to predict if or when Congress will address changes to the TCJA or when the Internal Revenue Service will issue administrative guidance on the changes made by the TCJA or how any such changes will impact us or an investment in our stock. It is possible that future changes to tax law or guidance promulgated thereunder could adversely impact us.
Shareholders are urged to consult with their tax advisors about the TCJA and any other regulatory or administrative developments and proposals with respect to taxes and their potential effect on investment in our stock.
U.S. Federal Income Tax Treatment of REITs and Investments in REITs May Change, Which May Result in the Loss of Our Tax Benefits of Operating as a REIT
Current U.S. federal income tax treatment of a REIT and an investment in a REIT may be modified by legislative, judicial or administrative action at any time, and we cannot predict when such action may occur. We cannot predict how changes in U.S. federal income tax law will affect us or our investors nor can we predict the long-term impact of tax reforms on REITs.
We May Change the DistributionDividend Policy for Our Common Stock in the Future
In 2009,2017, our boardBoard of directorsDirectors authorized and we declared quarterly distributionscommon stock dividends of $0.64$0.95 per unitshare in January, and $1.00 per share for the first fiscal quarter; the equivalent of anApril, July and October, for a total 2017 dividend per share annual rate of $2.56$3.95 per unit. With respect to the second quartershare. In addition, our Board of 2009, recognizing the need to maintain maximum financial flexibilityDirectors authorized and we declared a quarterly common stock dividend of $1.00 per share in light of the current state of the capital markets, our board of directors reduced the quarterly distribution to $0.45 per unit, for an annual rate of $1.80 per unit. A $0.45 per unit distribution was also declared with respect to the third and fourth quarters of 2009.January 2018. We can provide no assurance that the boardour Board of Directors will not reduce or eliminate entirely dividend distributions on our common stock in the future.
Our Board of its dividends for such years on its common stock in shares of its common stock in lieu of paying dividends entirely in cash, so long as the Company follows a process allowing its shareholders to elect cash or stock subject to a cap that the Company imposes on the maximum amount of cash that will be paid. Although the Company may utilize this procedure in the future, it currently has no intent to do so.
Market Interest Rates May Have Rescission Liability in Connection with SalesInfluence the Price of Unregistered Shares to Certain Investors
One of the factors that may influence the price of our Form 10-Q for the three months ended March 31, 2009, from December 2008 through April 2009, the Company sold an aggregate of 653,757 shares of common stock under its dividend reinvestment andin public trading markets or in private transactions is the annual yield on our common stock purchase plan (the “DRSPP”)as compared to yields on other financial instruments. An increase in market interest rates will result in higher yields on other financial instruments, which were not registered undercould adversely affect the Securities Act as a resultprice of the expiration in November 2008 of its registration statement covering the DRSPP. Some or all of those sales, which resulted in proceeds to the Company of approximately $14.0 million, may have violated Section 5 of the Securities Act. Purchasers of shares issued in violation of Section 5 have a right to rescind their purchases for a period of twelve months following the date of original purchase under Section 13 of the Securities Act. As a result, the Company could be required to repurchase some or all of the shares issued under the DRSPP during this period at the original sale price plus statutory interest.
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As of December 31, 2009, 1472017, 254 of our 381706 self-storage facilities are located in the states of Texas and Florida. For the year ended December 31, 2009,2017, these facilities accounted for approximately 42.0%36% of store revenues. This concentration of business in Texas and Florida exposes us to potential losses resulting from a downturn in the economies of those states. If economic conditions in those states continue to deteriorate, we willmay experience a reduction in existing and new business, which may have an adverse effect on our business, financial condition and results of operations.
When We Acquire Properties in New Markets, We Will Be Subject to Increased Operational Risks
We may acquire self-storage properties in markets where we have little or no operational experience. When we enter into new markets, we will be subject to increased risks resulting from our lack of experience and infrastructure in these markets and may need to incur additional costs, both expected and unexpected, to develop our operating capabilities in these markets. These risks could materially and adversely affect us, including our growth prospects, financial condition and results of operations.
Changes in Taxation of Corporate Dividends May Adversely Affect the Value of Our Common Stock
The maximum marginal rate of tax payable by domestic noncorporate taxpayers on dividends received from a regular “C” corporation under current federal law generally is 20%, as opposed to higher ordinary income rates. The reduced tax rate, however, does not apply to distributions paid to domestic noncorporate taxpayers by a REIT on its stock, except for certain limited amounts. The earnings of a REIT that are distributed to its stockholders generally remain subject to less federal income taxation than earnings of a non-REIT “C” corporation that are distributed to its stockholders net of corporate-level income tax. However, the lower rate of taxation to dividends paid by regular “C” corporations could cause domestic noncorporate investors to view the stock of regular “C” corporations as more attractive relative to the stock of a REIT, because the dividends from regular “C” corporations continue to be taxed at a lower rate while distributions from REITs (other than distributions designated as capital gain dividends) are generally taxed at the same rate as other ordinary income for domestic noncorporate taxpayers.
We are heavily dependent on computer systems, telecommunications and the Internet to process transactions, summarize results and manage our business. Security breaches or a failure of such networks, systems or technology could adversely impact our business and customer relationships.
We are heavily dependent upon automated information technology and Internet commerce, with many of our new customers coming from the Internet or the telephone, and the nature of our business involves the receipt and retention of personal information about them. We centrally manage significant components of our operations with our computer systems, including our financial information, and we also rely extensively on third-party vendors to retain data, process transactions and provide other systems services. These systems are subject to damage or interruption from power outages, computer and telecommunications failures, computer worms, viruses and other destructive or disruptive security breaches and catastrophic events.
As a result, our operations could be severely impacted by a natural disaster, terrorist attack or other circumstance that resulted in a significant outage of our systems or those of our third-party providers, despite our use of back up and redundancy measures. Further, viruses and other related risks could negatively impact our information technology processes. We could also be subject to a “cyber-attack” or other data security breach which would penetrate our network security, resulting in misappropriation of our confidential information, including customer personal information. System disruptions and shutdowns could also result in additional costs to repair or replace such networks or information systems and possible legal liability, including government enforcement actions and private litigation. In addition, our customers could lose confidence in our ability to protect their personal information, which could cause them to move out of rented storage spaces. Such events could lead to lost future sales and adversely affect our results of operations.
13None.
At December 31, 2009,2017, we held ownership interests in, andleased, and/or managed a total of 381706 Properties situated in twenty-four28 states. Among the 381our 706 self-storage facilitiesproperties are 2798 properties that we manage for a consolidatedunconsolidated joint ventureventures of which we are a majority owner and 25 properties that we manage for ahave varying percentage ownership interests. For additional information regarding unconsolidated joint venture of which we are a 20% owner.
Our self-storage facilities offer inexpensive, easily accessible, enclosed storage space to residential and commercial users on a month-to-month basis. Most of our Properties are fenced and well lighted with computerized gatesautomated access systems and are well lighted.surveillance cameras. A majority of the Properties are single-story, thereby providing customers with the convenience of direct vehicle access to their storage spaces. Our stores range in size from 21,00018,000 to 181,000195,000 net rentable square feet, with an average of approximately 65,00070,000 net rentable square feet. The Properties generally are constructed of masonry or steel walls resting on concrete slabs and have standing seam metal, shingle, or tar and gravel roofs. All Properties have a property manager on-site during business hours. CustomersGenerally, customers have access to their storage areas during businessspace up to 15 hours a day, and some commercial customers are provided 24-hour access. Individual storage spaces are secured by a lock furnished by the customer to provide the customer with control of access to the space.
The following table provides certain information regarding the Properties in which we have an ownership interest, andlease, and/or manage as of December 31, 2009:
Number of | ||||||||||||||||||||||||||||||||
Stores at | Percentage | |||||||||||||||||||||||||||||||
December 31, | Square | Number of | of Store | |||||||||||||||||||||||||||||
2009 | Feet | Spaces | Revenue |
| Number of Stores at December 31, 2017 |
|
| Square Feet |
|
| Number of Spaces |
|
| Percentage of Store Revenue |
| |||||||||||||||||
Alabama | 22 | 1,587,552 | 11,895 | 4.9 | % |
|
| 21 |
|
|
| 1,581,503 |
|
|
| 12,157 |
|
|
| 2.35 | % | |||||||||||
Arizona | 9 | 532,834 | 4,723 | 2.3 | % |
|
| 25 |
|
|
| 1,741,275 |
|
|
| 15,743 |
|
|
| 3.00 | % | |||||||||||
California |
|
| 28 |
|
|
| 2,538,426 |
|
|
| 22,751 |
|
|
| 6.28 | % | ||||||||||||||||
Colorado |
|
| 11 |
|
|
| 769,437 |
|
|
| 6,828 |
|
|
| 1.80 | % | ||||||||||||||||
Connecticut | 5 | 300,860 | 2,866 | 1.9 | % |
|
| 11 |
|
|
| 834,952 |
|
|
| 8,705 |
|
|
| 2.16 | % | |||||||||||
Colorado | 4 | 276,927 | 2,374 | 1.3 | % | |||||||||||||||||||||||||||
Florida | 57 | 3,641,512 | 33,394 | 15.1 | % |
|
| 95 |
|
|
| 6,422,451 |
|
|
| 63,243 |
|
|
| 13.49 | % | |||||||||||
Georgia | 27 | 1,710,528 | 13,935 | 6.1 | % |
|
| 34 |
|
|
| 2,355,069 |
|
|
| 20,193 |
|
|
| 4.23 | % | |||||||||||
Illinois |
|
| 45 |
|
|
| 3,348,867 |
|
|
| 33,810 |
|
|
| 7.40 | % | ||||||||||||||||
Kentucky | 2 | 144,872 | 1,323 | 0.6 | % |
|
| 2 |
|
|
| 142,764 |
|
|
| 1,322 |
|
|
| 0.28 | % | |||||||||||
Louisiana | 14 | 836,350 | 7,309 | 3.7 | % |
|
| 16 |
|
|
| 954,965 |
|
|
| 8,088 |
|
|
| 1.66 | % | |||||||||||
Maine | 2 | 114,265 | 1,010 | 0.5 | % |
|
| 5 |
|
|
| 233,136 |
|
|
| 2,295 |
|
|
| 0.61 | % | |||||||||||
Maryland | 4 | 172,083 | 2,037 | 0.9 | % |
|
| 3 |
|
|
| 138,839 |
|
|
| 1,619 |
|
|
| 0.36 | % | |||||||||||
Massachusetts | 12 | 664,614 | 6,067 | 3.2 | % |
|
| 15 |
|
|
| 817,298 |
|
|
| 8,244 |
|
|
| 2.06 | % | |||||||||||
Michigan | 6 | 354,608 | 3,035 | 1.1 | % | |||||||||||||||||||||||||||
Mississippi | 12 | 922,933 | 7,116 | 3.4 | % |
|
| 12 |
|
|
| 885,381 |
|
|
| 6,614 |
|
|
| 1.48 | % | |||||||||||
Missouri | 7 | 432,039 | 3,791 | 2.0 | % |
|
| 14 |
|
|
| 948,066 |
|
|
| 8,498 |
|
|
| 1.86 | % | |||||||||||
Nevada |
|
| 22 |
|
|
| 1,633,278 |
|
|
| 13,708 |
|
|
| 2.81 | % | ||||||||||||||||
New Hampshire | 4 | 259,555 | 2,331 | 1.0 | % |
|
| 10 |
|
|
| 725,123 |
|
|
| 6,222 |
|
|
| 1.40 | % | |||||||||||
New Jersey |
|
| 29 |
|
|
| 2,091,277 |
|
|
| 21,891 |
|
|
| 5.79 | % | ||||||||||||||||
New York | 28 | 1,590,577 | 14,566 | 8.4 | % |
|
| 46 |
|
|
| 2,827,529 |
|
|
| 28,684 |
|
|
| 6.77 | % | |||||||||||
North Carolina | 14 | 723,262 | 6,223 | 2.7 | % |
|
| 22 |
|
|
| 1,361,090 |
|
|
| 12,632 |
|
|
| 2.20 | % | |||||||||||
Ohio | 23 | 1,558,905 | 12,900 | 5.5 | % |
|
| 25 |
|
|
| 1,656,927 |
|
|
| 13,940 |
|
|
| 2.72 | % | |||||||||||
Pennsylvania | 4 | 208,400 | 1,630 | 0.8 | % |
|
| 11 |
|
|
| 688,019 |
|
|
| 5,961 |
|
|
| 1.37 | % | |||||||||||
Rhode Island | 4 | 168,346 | 1,565 | 0.8 | % |
|
| 4 |
|
|
| 205,871 |
|
|
| 1,922 |
|
|
| 0.49 | % | |||||||||||
South Carolina | 8 | 443,158 | 3,782 | 1.7 | % |
|
| 14 |
|
|
| 901,444 |
|
|
| 7,974 |
|
|
| 1.67 | % | |||||||||||
Tennessee | 4 | 291,204 | 2,457 | 0.9 | % |
|
| 7 |
|
|
| 510,619 |
|
|
| 4,231 |
|
|
| 0.85 | % | |||||||||||
Texas | 90 | 6,624,499 | 54,563 | 26.9 | % |
|
| 159 |
|
|
| 11,745,044 |
|
|
| 97,320 |
|
|
| 22.51 | % | |||||||||||
Virginia | 19 | 1,130,226 | 10,528 | 4.3 | % |
|
| 18 |
|
|
| 1,382,818 |
|
|
| 12,576 |
|
|
| 2.21 | % | |||||||||||
Wisconsin |
|
| 2 |
|
|
| 169,595 |
|
|
| 1,726 |
|
|
| 0.19 | % | ||||||||||||||||
Total | 381 | 24,690,109 | 211,420 | 100.0 | % |
|
| 706 |
|
|
| 49,611,063 |
|
|
| 448,897 |
|
|
| 100.0 | % | |||||||||||
14
On or about August 25, 2014, a putative class action was filed against the Company in the Superior Court of New Jersey Law Division Burlington County. The action seeks to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of various statutory laws. On October 17, 2014, the action was removed from the Superior Court of New Jersey Law Division Burlington County to the United States District Court for the District of New Jersey. The Company brought a motion to partially dismiss the complaint for failure to state a claim, and on July 16, 2015, the Company’s motion was granted in part and denied in part. On October 20, 2016, the complaint was amended to add additional claims. The parties have entered into a memorandum of understanding to settle all claims for an aggregate amount of $8.0 million. In February 2018, the normal coursemotion for the preliminary approval of business, wethe proposed class action settlement was granted. The aggregate settlement amount of $8.0 million ($6.0 million after considering income tax impact) has been recorded as a liability of in the Company’s consolidated balance sheet. A portion of the settlement expense relates to self-storage facilities that are managed by the Company through its taxable REIT subsidiary. There is an income tax impact to the Company on that portion of the settlement expense as a result. The settlement is subject to various claims and litigation. Whilefinal approval by the outcome of any litigationcourt, a decision which is inherently unpredictable, we do not believe that any matters currently pending against the Operating Partnership will have a material adverse impact on our financial condition, results of operations or cash flows.
Not Applicable
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |
Our Common Stock is no established public trading markettraded on the New York Stock Exchange under the symbol “LSI”. Set forth below are the high and low sales prices for Units. our Common Stock for each full quarterly period within the two most recent fiscal years.
Quarter 2016 |
| High |
|
| Low |
| ||
1st |
| $ | 118.18 |
|
| $ | 98.80 |
|
2nd |
| $ | 117.81 |
|
| $ | 98.93 |
|
3rd |
| $ | 107.71 |
|
| $ | 86.45 |
|
4th |
| $ | 88.89 |
|
| $ | 77.00 |
|
Quarter 2017 |
| High |
|
| Low |
| ||
1st |
| $ | 89.24 |
|
| $ | 79.38 |
|
2nd |
| $ | 87.87 |
|
| $ | 72.08 |
|
3rd |
| $ | 83.90 |
|
| $ | 69.00 |
|
4th |
| $ | 91.75 |
|
| $ | 77.88 |
|
As of February 15, 2010,12, 2018, there were 11approximately 590 holders of record of Units.our Common Stock. These figures do not include common shares held by brokers and other institutions on behalf of shareholders.
We have paid quarterly dividends to our shareholders since our inception. Reflected in the table below are the dividends paid in the last two years.
For federal income tax purposes, distributions to shareholders are treated as ordinary income, capital gain, return of capital or a combination thereof. Distributions to shareholders for 2017 represent 83% ordinary income and 17% return of capital.
History of Dividends Declared on Common Stock
January 2016 | $ | 0.85 per share |
April 2016 | $ | 0.95 per share |
July 2016 | $ | 0.95 per share |
October 2016 | $ | 0.95 per share |
January 2017 | $ | 0.95 per share |
April 2017 | $ | 1.00 per share |
July 2017 | $ | 1.00 per share |
October 2017 | $ | 1.00 per share |
For each quarter in 2016 and 2017, the Operating Partnership paid a cash distribution per unit in an amount equal to the dividend paid on a share of common stock for such quarter.
The following table sets forthsummarizes our purchases of our common stock for the quarterly distributions per Unit paid by the Operating Partnership to holdersyear ended December 31, 2017.
Issuer Purchases of its Units with respect to each such period.
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 1, 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 |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
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. |
| |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
The following table sets forth certain information as of December 31, 2009,2017, with respect to equity compensation plans under which shares of the Company’s Common Stock may be issued.
Plan Category |
| Number of securities to be issued upon exercise of outstanding options, warrants and rights |
|
| Weighted average exercise price of outstanding options, warrants and rights |
|
| Number of securities remaining available for future issuance |
| |||
Equity compensation plans approved by shareholders: |
|
|
|
|
|
|
|
|
|
|
|
|
2005 Award and Option Plan |
|
| 76,106 |
|
| $ | 45.59 |
|
|
| — |
|
2015 Award and Option Plan (2) |
|
| 124,402 |
|
| $ | — |
|
|
| 345,383 |
|
2009 Outside Directors’ Stock Option and Award Plan |
|
| 18,500 |
|
| $ | 79.58 |
|
|
| 67,871 |
|
Deferred Compensation Plan for Directors (1) |
|
| 21,540 |
|
| N/A |
|
|
| 22,598 |
| |
Equity compensation plans not approved by shareholders: |
| N/A |
|
| N/A |
|
| N/A |
|
Number of | ||||||||||||
securities to be | ||||||||||||
issued upon | Weighted average | Number of | ||||||||||
exercise of | exercise price of | securities | ||||||||||
outstanding | outstanding | remaining available | ||||||||||
options, warrants | options, warrants | for future issuance | ||||||||||
Plan Category | and rights (#) | and rights ($) | (#) | |||||||||
Equity compensation plans approved by shareholders: | ||||||||||||
2005 Award and Option Plan | 316,163 | $ | 42.86 | 998,330 | ||||||||
1995 Award and Option Plan | 46,300 | $ | 27.23 | 0 | ||||||||
2009 Outside Directors’ Stock Option and Award Plan | 9,500 | $ | 23.15 | 137,044 | ||||||||
1995 Outside Directors’ Stock Option Plan | 25,505 | $ | 46.23 | 0 | ||||||||
Deferred Compensation Plan for Directors (1) | 29,390 | N/A | 27,671 | |||||||||
Equity compensation plans not approved by shareholders: | N/A | N/A | N/A |
(1) | ||
Under the Deferred Compensation Plan for Directors, non-employee Directors may defer all or part of their Directors’ fees that are otherwise payable in cash. Directors’ fees that are deferred under the Plan will be credited to each Directors’ account under the Plan in the form of Units. The number of Units credited is determined by dividing the amount of Directors’ fees deferred by the closing price of the Company’s Common Stock on the New York Stock Exchange on the day immediately preceding the day upon which Directors’ fees otherwise would be paid by the Company. A Director is credited with additional Units for dividends on the shares of Common Stock represented by Units in such Directors’ Account. A Director may elect to receive the shares in a lump sum on a date specified by the Director or in quarterly or annual installments over a specified period and commencing on a specified date. |
16
(2) | Includes the maximum number of shares (124,402) that could be issued as part of 2015, 2016 and 2017 performance-based awards. The actual number of shares to be issued will be determined at the end of the three-year performance periods in 2018, 2019 and 2020. See Note 9 to our consolidated financial statements filed herewith. |
The following chart and line-graph presentation compares (i) the Company’s shareholder return on an indexed basis since December 31, 2012 with (ii) the S&P Stock Index and (iii) the National Association of Real Estate Investment Trusts Equity Index.
CUMULATIVE TOTAL SHAREHOLDER RETURN
LIFE STORAGE, INC.
DECEMBER 31, 2012 - DECEMBER 31, 2017
|
| Dec. 31, 2012 |
|
| Dec. 31, 2013 |
|
| Dec. 31, 2014 |
|
| Dec. 31, 2015 |
|
| Dec. 31, 2016 |
|
| Dec. 31, 2017 |
| ||||||
S&P |
|
| 100.00 |
|
|
| 132.39 |
|
|
| 150.51 |
|
|
| 152.59 |
|
|
| 170.84 |
|
|
| 208.14 |
|
NAREIT |
|
| 100.00 |
|
|
| 102.47 |
|
|
| 133.35 |
|
|
| 137.61 |
|
|
| 149.33 |
|
|
| 157.14 |
|
LSI |
|
| 100.00 |
|
|
| 108.13 |
|
|
| 150.19 |
|
|
| 191.34 |
|
|
| 157.66 |
|
|
| 173.11 |
|
The foregoing item assumes $100.00 invested on December 31, 2012, with dividends reinvested.
LIFE STORAGE, INC.
The following table sets forth selected financial and operating data on an historical consolidated basis for the Parent Company. The selected historical financial data as of and for the five-year period ended December 31, 2017 are derived from the Parent Company’s consolidated financial statements, which have been audited by Ernst & Young LLP, an independent registered public accounting firm. The consolidated financial statements as of December 31, 2017 and 2016, and for each of the years in the three-year period ended December 31, 2017, and their report thereon, are included herein. The other data presented below is not derived from the financial statements.
The following selected financial and operating information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the consolidated financial statements and related notes thereto of the Parent Company included elsewhere in this Annual Report on Form 10-K:
|
| At or For Year Ended December 31, |
| |||||||||||||||||
(dollars in thousands, except per share data) |
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||||
Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
| $ | 529,750 |
|
| $ | 462,608 |
|
| $ | 366,602 |
|
| $ | 326,080 |
|
| $ | 273,507 |
|
Income from continuing operations |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
|
| 89,057 |
|
|
| 71,472 |
|
Income from discontinued operations (1) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,123 |
|
Net income |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
|
| 89,057 |
|
|
| 74,595 |
|
Net income attributable to common shareholders |
|
| 96,365 |
|
|
| 85,225 |
|
|
| 112,524 |
|
|
| 88,531 |
|
|
| 74,126 |
|
Income from continuing operations per common share attributable to common shareholders – diluted |
|
| 2.07 |
|
|
| 1.96 |
|
|
| 3.16 |
|
|
| 2.67 |
|
|
| 2.26 |
|
Net income per common share attributable to common shareholders – basic |
|
| 2.08 |
|
|
| 1.97 |
|
|
| 3.18 |
|
|
| 2.68 |
|
|
| 2.37 |
|
Net income per common share attributable to common shareholders – diluted |
|
| 2.07 |
|
|
| 1.96 |
|
|
| 3.16 |
|
|
| 2.67 |
|
|
| 2.36 |
|
Dividends declared per common share (2) |
|
| 3.95 |
|
|
| 3.70 |
|
|
| 3.20 |
|
|
| 2.72 |
|
|
| 2.02 |
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in storage facilities at cost |
| $ | 4,321,410 |
|
| $ | 4,243,308 |
|
| $ | 2,491,702 |
|
| $ | 2,177,983 |
|
| $ | 1,864,637 |
|
Total assets |
|
| 3,876,774 |
|
|
| 3,857,984 |
|
|
| 2,118,822 |
|
|
| 1,850,727 |
|
|
| 1,558,894 |
|
Total debt |
|
| 1,726,763 |
|
|
| 1,653,552 |
|
|
| 827,643 |
|
|
| 797,054 |
|
|
| 623,273 |
|
Total liabilities |
|
| 1,829,078 |
|
|
| 1,751,399 |
|
|
| 898,336 |
|
|
| 861,236 |
|
|
| 675,245 |
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
| $ | 248,580 |
|
| $ | 225,550 |
|
| $ | 186,198 |
|
| $ | 146,068 |
|
| $ | 120,646 |
|
Net cash used in investing activities |
|
| (156,510 | ) |
|
| (1,796,069 | ) |
|
| (328,689 | ) |
|
| (334,993 | ) |
|
| (114,345 | ) |
Net cash (used in) provided by financing activities |
|
| (106,588 | ) |
|
| 1,587,184 |
|
|
| 140,968 |
|
|
| 187,944 |
|
|
| (4,032 | ) |
At or For Year Ended December 31, | ||||||||||||||||||||
(dollars in thousands, except per unit data) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Operating Data | ||||||||||||||||||||
Operating revenues | $ | 195,011 | $ | 200,193 | $ | 190,013 | $ | 162,541 | $ | 134,524 | ||||||||||
Income from continuing operations | 22,438 | 37,803 | 40,184 | 37,306 | 34,379 | |||||||||||||||
(Loss) income from discontinued operations (1) | (784 | ) | 1,880 | 1,661 | 1,738 | 1,940 | ||||||||||||||
Net income | 21,654 | 39,683 | 41,845 | 39,044 | 36,319 | |||||||||||||||
Net income attributable to common unitholders | 20,294 | 38,120 | 38,741 | 35,003 | 31,706 | |||||||||||||||
Income from continuing operations per common unit attributable to common unitholders— diluted | 0.87 | 1.63 | 1.73 | 1.80 | 1.72 | |||||||||||||||
Net income per common unit attributable to common unitholders — basic | 0.84 | 1.72 | 1.81 | 1.90 | 1.87 | |||||||||||||||
Net income per common unit attributable to common unitholders — diluted | 0.84 | 1.72 | 1.81 | 1.90 | 1.85 | |||||||||||||||
Distributions declared per common unit (2) | 1.54 | 2.54 | 2.50 | 2.47 | 2.44 | |||||||||||||||
Balance Sheet Data | ||||||||||||||||||||
Investment in storage facilities at cost | $ | 1,387,583 | $ | 1,366,615 | $ | 1,300,847 | $ | 1,115,255 | $ | 865,692 | ||||||||||
Total assets | 1,185,201 | 1,212,528 | 1,164,475 | 1,053,033 | 784,195 | |||||||||||||||
Total debt | 481,219 | 623,261 | 566,517 | 462,027 | 339,144 | |||||||||||||||
Total liabilities | 520,142 | 692,381 | 610,644 | 495,175 | 364,856 | |||||||||||||||
Limited partners’ redeemable capital interest | 15,005 | 15,118 | 16,951 | 24,575 | 22,512 | |||||||||||||||
Partners’ capital | 650,054 | 505,029 | 536,880 | 533,283 | 396,827 | |||||||||||||||
Other Data | ||||||||||||||||||||
Net cash provided by operating activities | $ | 59,123 | $ | 77,132 | $ | 85,175 | $ | 64,656 | $ | 60,724 | ||||||||||
Net cash used in investing activities | (4,448 | ) | (82,711 | ) | (190,267 | ) | (176,567 | ) | (79,156 | ) | ||||||||||
Net cash (used in) provided by financing activities | (48,451 | ) | 6,055 | 61,372 | 154,730 | 20,238 |
(1) | ||
In |
(2) | In |
17
The following selected financial and operating information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the consolidated financial statements and related notes thereto of the Operating Partnership included elsewhere in this Annual Report on Form 10-K:
|
| At or For Year Ended December 31, |
| |||||||||||||||||
(dollars in thousands, except per unit data) |
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||||
Operating Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating revenues |
| $ | 529,750 |
|
| $ | 462,608 |
|
| $ | 366,602 |
|
| $ | 326,080 |
|
| $ | 273,507 |
|
Income from continuing operations |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
|
| 89,057 |
|
|
| 71,472 |
|
Income from discontinued operations (1) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 3,123 |
|
Net income |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
|
| 89,057 |
|
|
| 74,595 |
|
Net income attributable to common unitholders |
|
| 96,365 |
|
|
| 85,225 |
|
|
| 112,524 |
|
|
| 88,531 |
|
|
| 74,126 |
|
Income from continuing operations per common unit attributable to common unitholders – diluted |
|
| 2.07 |
|
|
| 1.96 |
|
|
| 3.16 |
|
|
| 2.67 |
|
|
| 2.26 |
|
Net income per common unit attributable to common unitholders – basic |
|
| 2.08 |
|
|
| 1.97 |
|
|
| 3.18 |
|
|
| 2.68 |
|
|
| 2.37 |
|
Net income per common unit attributable to common unitholders – diluted |
|
| 2.07 |
|
|
| 1.96 |
|
|
| 3.16 |
|
|
| 2.67 |
|
|
| 2.36 |
|
Distributions declared per common unit (2) |
|
| 3.95 |
|
|
| 3.70 |
|
|
| 3.20 |
|
|
| 2.72 |
|
|
| 2.02 |
|
Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in storage facilities at cost |
| $ | 4,321,410 |
|
| $ | 4,243,308 |
|
| $ | 2,491,702 |
|
| $ | 2,177,983 |
|
| $ | 1,864,637 |
|
Total assets |
|
| 3,876,774 |
|
|
| 3,857,984 |
|
|
| 2,118,822 |
|
|
| 1,850,727 |
|
|
| 1,558,894 |
|
Total debt |
|
| 1,726,763 |
|
|
| 1,653,552 |
|
|
| 827,643 |
|
|
| 797,054 |
|
|
| 623,273 |
|
Total liabilities |
|
| 1,829,078 |
|
|
| 1,751,399 |
|
|
| 898,336 |
|
|
| 861,236 |
|
|
| 675,245 |
|
Other Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
| $ | 248,580 |
|
| $ | 225,550 |
|
| $ | 186,198 |
|
| $ | 146,068 |
|
| $ | 120,646 |
|
Net cash used in investing activities |
|
| (156,510 | ) |
|
| (1,796,069 | ) |
|
| (328,689 | ) |
|
| (334,993 | ) |
|
| (114,345 | ) |
Net cash (used in) provided by financing activities |
|
| (106,588 | ) |
|
| 1,587,184 |
|
|
| 140,968 |
|
|
| 187,944 |
|
|
| (4,032 | ) |
(1) | In 2013 we sold four stores whose results of operations and gain on disposal are classified as discontinued operations for all previous years presented. |
(2) | In 2013 we declared regular quarterly distributions of $0.48 in January and April, and $0.53 in July and October. In 2014 we declared regular quarterly distributions of $0.68 in January, April, July and October. In 2015 we declared regular quarterly distributions of $0.75 in January and April, and $0.85 in July and October. In 2016 we declared regular quarterly distributions of $0.85 in January and $0.95 in April, July and October. In 2017 we declared regular quarterly distributions of $0.95 in January and $1.00 in April, July and October. |
The following discussion and analysis of the consolidated financial condition and results of operations should be read in conjunction with the 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 our actual results, performance or achievements 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 Operating Partnership’sCompany’s ability to evaluate, finance and integrate acquired businesses into the Operating Partnership’sCompany’s existing business and operations; the Operating Partnership’sCompany’s ability to effectively compete in the industry in which it does business; the Operating Partnership’sCompany’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 Operating Partnership’sCompany’s outstanding floating rate debt; the Operating Partnership’sCompany’s ability to comply with debt covenants; any future ratings on the Operating Partnership’sCompany’s debt instruments; the regional concentration of the Operating Partnership’sCompany’s business may subject it to economic downturns in the states of Florida and Texas; the Operating Partnership’sCompany’s reliance on its call center; the Operating Partnership’sCompany’s cash flow may be insufficient to meet required payments of operating expenses, principal, interest and distributions;dividends; and tax law changes that may change the taxability of future income.
Business and Overview
We believe we are the fourthfifth largest operator of self-storage properties in the United States based on facilitiessquare feet owned and managed. All of our stores are operatedconduct business under the user-friendlycustomer-friendly name “Uncle Bob’s Self-Storage”Life Storage ®.
Operating Strategy
Our operating strategy is designed to generate growth and enhance value by:
A. | Increasing operating performance and cash flow through aggressive management of our stores: |
We seek to differentiate our self-storage facilities from our competition through innovative marketing and value-added product offerings including:
o | Strategic and efficient Web and Mobile marketing that places Life Storage in front of customers in search engines at the right time for conversion; |
o | Regional marketing |
o | Our Customer Care Center, |
o | Our truck move-in program, under which, at present, |
o | Our dehumidification system, |
Our customized computer applications link each of our primary sales channels (customer care center, web, and store) allowing for real time access to space type and inventory, pricing, promotions, and other pertinent store information. This also provides us with raw data on historical and current pricing, move-in and move-out activity, specials and occupancies, etc. This data is then used within the advanced pricing analytics programs employed by our revenue management team;
All of our store employees receive a high level of training. New store associates are assigned a Certified Training Manager as a mentor during their initial training period. In addition, all employees have access to our online training and development portal for initial training as well as continuing education. Finally, we have a company intranet that acts as a communications portal for company policy and procedures, online ordering, incentive rankings, etc.
B. | Acquiring additional stores: |
Our objective is to acquire new stores in markets in which we currently operate. This is a proven strategy we have employed over the years as it facilitates our branding efforts, grows market share, and allows us to achieve improved economies of scale through shared advertising, payroll, and other services.
C. | |||
18
Expanding our management business: |
We see our management business as a source of future acquisitions. We hold a minority interest in multiple joint ventures which hold a total of 98 properties that we manage. In addition, we manage 42 self-storage facilities for which we have no ownership. We may enter into additional management agreements and develop additional joint ventures in the future.
D. | Expanding and enhancing our existing stores: |
Over the past five years we have undertaken a program of expanding and enhancing our Properties. In 2013, we added 295,000 square feet to existing Properties and converted 9,000 square feet to premium storage for a total cost of approximately $17.9 million; in 2014, we added 272,000 square feet to existing Properties and converted 9,000 square feet to premium storage for a total cost of approximately $18.3 million; in 2015, we added 256,000 square feet to existing Properties and converted 5,000 square feet to premium storage for a total cost of approximately $14.1 million; in 2016, we added 343,000 square feet to existing Properties and converted 55,000 square feet to premium storage for a total cost of approximately $22.4 million; and in 2017, we added 382,000 square feet to existing Properties and converted 122,000 square feet to premium storage for a total cost of approximately $35.2 million. From 2012 through 2017 we also installed solar panels on 23 buildings for a total cost of approximately $7.7 million. Our solar panel initiative, which began in 2011, has reduced energy consumption at those installed locations.
Supply and Demand
We believe the supply and demand model in the self-storage industry is micro market specific in that a majority of our business comes from within a five mile radius of our stores. The currentSuppressed economic conditions and thea tight credit market environment have resulted in a decrease in new supply on a national basis from 2010-2015, but the out-performance of the sector compared to other real estate asset classes has drawn new capital to self-storage. The Company experienced significant new competition beginning in 20082016, especially in its Texas markets, and 2009. Withexpects noticeable growth in new supply at least through 2019. Despite the decreaseinflow of debt and equity capital brought about by the credit market tightening in the past year,additional properties, we have seen capitalization rates on quality acquisitions in the top fifty major metropolitan markets (expected annual return on investment) increaseremain stable at approximately 5.00% to approximately 8.0%5.50%.
Beginning in 2010, subsequent to the economic recession in 2009, we have experienced annual same store sales increases up to and expect continued increases in 2010. From 2003 to 2007,including the historically low interest rates available to developers resulted in increased supply on a national basis.current year. We experienced some of this excess supply in certain markets in Texas and Florida from 2003 to 2007, but becausefeel our recent performance further supports the notion that the self-storage industry holds up well regardless of the demand model, we did not see a widespread effect onprevailing economic landscape.
We believe our storessame-store move-ins in those years. In 2008, the Florida market was negatively affected by the current economic downturn and in 2009 many markets2017 were affected as consumers pulled back spending.
19
|
| 2017 |
|
| 2016 |
|
| Change |
| |||
Same store move ins |
|
| 162,980 |
|
|
| 167,856 |
|
|
| (4,876 | ) |
Same store move outs |
|
| 160,007 |
|
|
| 165,193 |
|
|
| (5,186 | ) |
Difference |
|
| 2,973 |
|
|
| 2,663 |
|
|
| 310 |
|
Elevated property tax increases is a trend that we experienced from 2014 through 2017. We expect same store expense growth resulting from increases in wages, health care costs, property insurance costs, and property tax increases in 2018, partially offset by decreased internet marketing costs. We believe the costs of amenities (such as Uncle Bob’s trucks). While we do not expect further expense decreases in 2010, we do believesame store expense increases will be at a manageable level of between 2% and 4%.levels.
The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires us to make estimates and judgments that affect the amounts reported in our financial statements and the accompanying notes. On an on-going basis, we evaluate our estimates and judgments, including those related to carrying values of storage facilities, bad debts, and contingencies and litigation. We base these estimates on experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
Assigning purchase price to assets acquired: Upon adoption of Accounting Standards Update 2017-01, most of our self-storage facility acquisitions are not considered business combinations and are treated as asset acquisitions. As a result, the cost of acquired storage facilities is assigned primarily to land, land improvements, building, equipment, and in-place customer leases based on the relative fair values of these assets as of the date of acquisition. We use significant unobservable inputs in our determination of the fair values of these assets. The determination of these inputs involves judgments and estimates that can vary for each individual property based on various factors specific to the properties and the functional, economic and other factors affecting each property. To determine the fair value of land, we use prices per acre derived from observed transactions involving comparable land in similar locations. To determine the fair value of buildings, equipment and improvements, we use financial projections and applicable discount rates to estimate the fair values of properties acquired, as well as current replacement cost estimates based on information derived from construction industry data by geographic region as adjusted for the age, condition, and economic obsolescence associated with these assets. The fair values of in-place customer leases are based on the rent that would be lost due to the amount of time required to replace existing customers which is based on our historical experience with market demand and turnover in our facilities.
Carrying value of storage facilities: We believe our judgment regarding the impairment of the carrying value of our storage facilities is a critical accounting policy. Our policy is to assess anythe carrying value of our storage facilities for impairment of value whenever events or circumstances indicate that the carrying value of a storage facility may not be recoverable. Such events or circumstances would include negative operating cash flow, significant declining revenue per storage facility, significant damage sustained from accidents or natural disasters, or an exceptionexpectation that, more likely than not, a property will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. ImpairmentWhen indicators of impairment exist, impairment is evaluated based upon comparing the sum of the expected undiscounted future cash flows to the carrying value of the storage facility, on a property by property basis. If the sum of the undiscounted cash flowflows is less than the carrying amount,value of the storage facility, an impairment loss is recognized for the amount by which the carrying amount exceeds the fair value of the asset.asset group. If cash flow projections are inaccurate and in the future it is determined that storage facility carrying values are not recoverable, impairment charges may be required at that time and could materially affect our operating results and financial position. Estimates of undiscounted cash flows could change based upon changes in market conditions, expected occupancy rates, etc. At December 31, 2009 and 2008, noNo assets had been determined to be impaired under this policy.
Estimated useful lives of long-lived assets: We believe that the estimated lives used for our depreciable, long-lived assets is a critical accounting policy. We periodically evaluate the estimated useful lives of our long-lived assets to determine if any changes are warranted based upon various factors, including changes in the planned usage of the assets, customer demand, etc. Changes in estimated useful lives of these assets could have a material adverse impact on our financial condition or results of operations. In 2017, the Company changed the useful lives of certain assets at self-storage facilities that were identified for replacement as part of the Company’s capital improvement efforts in 2017. Additionally, in 2016, the Company changed the useful lives of existing Uncle Bob’s Self Storage ® signs as a result of the change in the name of the Company’s storage facilities from Uncle Bob’s Self Storage ® to Life Storage ® which required replacement of the existing signage. These changes resulted in a combined increase in depreciation expense of approximately $4.4 million in 2017 as depreciation was accelerated over the new useful lives. The Company estimates that the change related to storage-facility asset replacement will result in an additional increase in depreciation expense of approximately $0.3 million in 2018. We have not made any other significant changes to the estimated useful lives of our long-lived assets in the past and we don’tdo not have any current expectation of making significant changes in 2010.
Consolidation and investment in joint ventures: We consolidate all wholly owned subsidiaries. Partially owned subsidiaries and joint ventures are consolidated when we control the entity or have the power to direct the activities most significant to the economic performance of the entity. Investments in joint ventures that we do not control but forover which we have significant influence over are reported using the equity method. Under the equity method, our investment in joint ventures are stated at cost and adjusted for our share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on our ownership interest in the earnings of each of the unconsolidated real estate ventures.
Revenue and Expense Recognition: Rental income is recognized when earned pursuant to month-to-month leases for storage space. Promotional discounts are recognized as a reduction to rental income over the promotional period, which is generally during the first month of occupancy. Rental income received prior to the start of the rental period is included in deferred revenue.
Qualification as a REIT: The Company operates,We operate, and intendsintend to continue to operate, as a REIT under the
20
See Note 2 to the VIE. The revised guidance also requires an enterprise to assess whether it has an implicit financial responsibility to ensure that a VIE operates as designed when determining whether it has power to direct the activities of the VIE that most significantly impact the entity’s economic performance. The revised guidance also requires ongoing assessments of whether an enterprise is the primary beneficiary of a VIE, requires enhanced disclosures and eliminates the scope exclusion for qualifying special-purpose entities. The revised guidance is effective for the first annual reporting period that begins after November 15, 2009, with early adoption prohibited. The Operating Partnership is currently evaluating the impact that the adoption of the revised guidance will have on its consolidated financial statements.
YEAR ENDED DECEMBER 31, 20092017 COMPARED TO
YEAR ENDED DECEMBER 31, 2008
We recorded rental revenues of $186.9$485.3 million for the year ended December 31, 2009, a decrease2017, an increase of $5.6$57.2 million or 2.9%13.4% when compared to 20082016 rental revenues of $192.5$428.1 million. Of the decreaseincrease in rental revenue, $6.2$5.6 million resulted from a 3.2% decrease1.6% increase in rental revenues at the 352430 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2016, excluding stores not yet stabilized, the properties we sold in 2016 and 2017, six stores significantly impacted by flooding in 2016 and 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 30 basis point increase in average occupancy and a 0.8% increase in rental income per square foot. The remaining increase in rental revenue of $51.6 million resulted from the stores not included in the same store pool. Other operating income, which includes merchandise sales, insurance administrative fees, truck rentals, management fees and acquisition fees, increased by $9.9 million for the year ended December 31, 2017 compared to 2016 primarily due to increased administrative fees earned on customer insurance, increased management fees earned on managed properties, and increased acquisition fees earned on properties acquired by unconsolidated joint ventures.
Property operations and maintenance expenses increased $19.4 million or 18.8% in 2017 compared to 2016. The 430 core properties considered in the same store pool experienced a $2.3 million or 2.9% increase in such expenses as a result of increases in payroll and higher internet marketing costs in an effort to drive more traffic to the Company’s website as a result of our name change to Life Storage. In addition to the same store increase, property operations and maintenance expenses increased $17.1 million due to the net activity from the stores not included in the same store pool. Real estate tax expense increased $9.8 million or 20.4% in 2017 compared to 2016. The 430 core properties considered in the same store pool experienced a $2.5 million or 6.6% increase which is reflective of a net increase in property tax levies on those properties. In addition to the same store real estate expense increase, real estate taxes increased $7.3 million from the stores not included in the same store pool.
Our 2017 same store results consist of only those properties that have been owned by the Company and included in our consolidated results since January 1, 2016, excluding the stores not yet stabilized, the properties we sold in 2016 and 2017, six stores significantly impacted by flooding in 2016 and 2017, and two stores that the Company began to fully replace in 2017. We believe that same store results is a meaningful measure to investors in evaluating our operating performance because, given the acquisitive nature of the industry, same store results provide information about the overall business after removing the results from those properties that were not consistent from year-to-year. Additionally, same store results are widely used in the real estate industry and the self-storage industry to measure performance. Same store results should be considered in addition to, but not as a substitute for, consolidated results in accordance with GAAP.
The following table sets forth operating data for our 430 same store properties. These results provide information relating to property operating changes without the effects of acquisitions.
Same Store Summary
|
| Year ended December 31, |
|
| Percentage |
| ||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| Change |
| |||
Same store rental income |
| $ | 357,428 |
|
| $ | 351,818 |
|
|
| 1.6 | % |
Same store other operating income |
|
| 20,063 |
|
|
| 19,361 |
|
|
| 3.6 | % |
Total same store operating income |
|
| 377,491 |
|
|
| 371,179 |
|
|
| 1.7 | % |
Payroll and benefits |
|
| 32,112 |
|
|
| 30,857 |
|
|
| 4.1 | % |
Real estate taxes |
|
| 40,459 |
|
|
| 37,960 |
|
|
| 6.6 | % |
Utilities |
|
| 11,686 |
|
|
| 11,710 |
|
|
| (0.2 | )% |
Repairs and maintenance |
|
| 13,613 |
|
|
| 14,236 |
|
|
| (4.4 | )% |
Office and other operating expenses |
|
| 12,140 |
|
|
| 12,113 |
|
|
| 0.2 | % |
Insurance |
|
| 4,380 |
|
|
| 4,257 |
|
|
| 2.9 | % |
Advertising |
|
| 1,070 |
|
|
| 1,146 |
|
|
| (6.6 | )% |
Internet marketing |
|
| 8,250 |
|
|
| 6,609 |
|
|
| 24.8 | % |
Total same store operating expenses |
|
| 123,710 |
|
|
| 118,888 |
|
|
| 4.1 | % |
Same store net operating income |
| $ | 253,781 |
|
| $ | 252,291 |
|
|
| 0.6 | % |
Net operating income increased $37.9 million or 12.2%% as a result of a 0.6% increase in our same store net operating income and the acquisitions completed since January 1, 2016.
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, loss on sale of real estate, 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.
The following table reconciles NOI generated by our self-storage facilities to our net income presented in the 2017 and 2016 consolidated financial statements.
|
| Year ended December 31, |
| |||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
| ||
Net income |
| $ | 96,809 |
|
| $ | 84,956 |
|
General and administrative |
|
| 50,031 |
|
|
| 43,103 |
|
Acquisition related costs |
|
| — |
|
|
| 29,542 |
|
Write-off of acquired property deposits |
|
| — |
|
|
| 1,783 |
|
Operating leases of storage facilities |
|
| 424 |
|
|
| — |
|
Depreciation and amortization |
|
| 127,485 |
|
|
| 117,081 |
|
Interest expense |
|
| 74,362 |
|
|
| 54,504 |
|
Interest income |
|
| (7 | ) |
|
| (67 | ) |
Loss (gain) on sale of storage facilities |
|
| 3,503 |
|
|
| (15,270 | ) |
Gain on sale of real estate |
|
| — |
|
|
| (623 | ) |
Equity in income of joint ventures |
|
| (3,314 | ) |
|
| (3,665 | ) |
Net operating income |
| $ | 349,293 |
|
| $ | 311,344 |
|
Net operating income |
|
|
|
|
|
|
|
|
Same store |
|
| 253,781 |
|
|
| 252,291 |
|
Other stores and management fee income |
|
| 95,512 |
|
|
| 59,053 |
|
Total net operating income |
| $ | 349,293 |
|
| $ | 311,344 |
|
General and administrative expenses increased $6.9 million or 16.1% from 2016 to 2017. The key drivers of the increase were the New Jersey lawsuit settlement discussed in Note 14 to the consolidated financial statements and $0.9 million in officer severance recorded in 2017.
There were no acquisition related costs recorded in 2017 as no 2017 acquisitions were considered business combinations. Acquisition related costs were $29.5 million in 2016 related to the acquisition of 122 stores during that period, including the acquisition of LifeStorage, LP.
Depreciation and amortization expense increased to $127.5 million in 2017 from $117.1 million in 2016, primarily due to depreciation related to the properties acquired in 2016 and 2017 and accelerated depreciation on storage facility assets identified for replacement in 2017.
Interest expense increased from $54.5 million in 2016 to $74.4 million in 2017. The increase was primarily due to a full year of interest in 2017 on the $600 million 3.5% senior notes issued in June 2016 and the $200 million 3.67% term loan entered into in July 2016, and $9.6 million of interest expense recorded in 2017 related to interest rate swaps settled in 2017 and the termination of the related hedging relationships.
During 2017, we sold two non-strategic storage facilities in Utah (1) and Texas (1) for net proceeds of approximately $16.9 million, resulting in a $3.5 million loss on sale. The Company has subsequently leased one of these properties and has deferred the related gain until the termination of the lease which is scheduled in 2020. During 2016, we sold eight non-strategic storage facilities in Alabama (1), Georgia (1), Mississippi (1), Texas (1), and Virginia (4) for net proceeds of approximately $34.1 million, resulting in a $15.3 million gain on sale. These dispositions were not classified as discontinued operations since they did not meet the criteria for such classification under ASU 2014-08 guidance.
YEAR ENDED DECEMBER 31, 2016 COMPARED TO YEAR ENDED DECEMBER 31, 2015
We recorded rental revenues of $428.1 million for the year ended December 31, 2016, an increase of $89.7 million or 26.5% when compared to 2015 rental revenues of $338.4 million. Of the increase in rental revenue, $16.1 million resulted from a 5.0% increase in rental revenues at the 417 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2008)2015, excluding the properties we sold in 2016 and 2015, three properties purchased prior to January 1, 2015 that have not yet stabilized and three properties significantly impacted by flooding in 2016). The decreaseincrease in same store rental revenues was a result of a 2.1% decrease50 basis point increase in average occupancy and a 4.3% increase in rental income per square footfoot. The remaining increase in rental revenue of $73.6 million resulted from the revenues from the acquisition of 145 properties completed since January 1, 2015 (excluding the four properties purchased in 2015 that had been leased since November 2013 and are included in the same store pool), slightly offset with the revenue decrease as a result of increased move-in incentives usedeight self-storage properties sold in 2009 to attract customers. We also experienced a decrease2016 and three self-storage properties sold in square foot occupancy of 115 basis points, which we believe resulted from general economic conditions, in particular the housing sector. These decreases were partially offset by a $0.6 million increase in rental revenues resulting from having the three stores acquired in 2008 included for a full year of operations.2015. Other operating income, which includes merchandise sales, insurance commissions,administrative fees, truck rentals, management fees and acquisition fees, increased in 2009 primarily as a result of $0.3 million increase in commissions earned from our customer insurance program.
21
Property operations and maintenance expenses increased $21.4 million or 4.7% when26.2% in 2016 compared to 2007 rental revenues of $183.8 million. Of the increase in rental revenue, $1.3 million resulted from a 0.7% increase in rental revenues at the 3212015. The 417 core properties considered in the same store sales (those properties included in the consolidated results of operations since January 1, 2007). Thepool experienced a $1.0 million or 1.3% increase in such expenses due to increases in payroll and internet marketing costs. The same store rental revenues was achieved primarily through rate increases on select units averaging 1.9%, offset by a decrease in square foot occupancy of 150 basis points, which we believe resultedpool benefited from general economic conditions, in particularreduced utilities, snow removal costs, insurance and yellow page advertising expense. In addition to the housing sector. The remaining $7.4same store increase, property operations and maintenance expenses increased $20.4 million increase in rental revenues resulted from the acquisition of three stores during 2008145 properties completed since January 1, 2015 (excluding the four properties purchased in 2015 that had been leased since November 2013 and from havingare included in the 31 stores acquired in 2007 included for a full year of operations. Other income, which includes merchandise sales, insurance commissions, truck rentals, management fees and acquisition fees, increased in 2008 primarilysame store pool), slightly offset with the operating expense decrease as a result of $1.1eight self-storage properties sold in 2016 and three self-storage properties sold in 2015. Real estate tax expense increased $11.3 million or 30.9% in 2016 compared to 2015. The 417 core properties considered in the same store pool experienced a $1.9 million or 5.3% increase which is reflective of managementa net increase in property tax levies on those properties. In addition to the same store real estate expense increase, real estate taxes increased $9.4 million from the acquisition of 145 properties completed since January 1, 2015 (excluding the four properties purchased in 2015 that had been leased since November 2013 and acquisition fees generated from our unconsolidated joint venture, Sovran HHF Storage Holdings LLC.
Our 2016 same store results consist of only those properties that were included in our consolidated results since January 1, 2015, excluding the properties we sold in 2016 and 2015, three properties purchased prior to January 1, 2015 that have not yet stabilized and three properties significantly impacted by flooding in 2016. We believe that same store results is a meaningful measure to investors in evaluating our operating performance because, given the acquisitive nature of the industry, same store results provide information about the overall business after removing the results from those properties that were not consistent from year-to-year. Additionally, same store results are widely used in the real estate industry and the self-storage industry to measure performance. Same store results should be considered in addition to, but not as a substitute for, consolidated results in accordance with GAAP.
The following table sets forth operating data for our 417 same store properties. These results provide information relating to property operating changes without the effects of acquisition.
Same Store Summary
|
| Year ended December 31, |
|
| Percentage |
| ||||||
(dollars in thousands) |
| 2016 |
|
| 2015 |
|
| Change |
| |||
Same store rental income |
| $ | 339,773 |
|
| $ | 323,664 |
|
|
| 5.0 | % |
Same store other operating income |
|
| 18,693 |
|
|
| 17,085 |
|
|
| 9.4 | % |
Total same store operating income |
|
| 358,466 |
|
|
| 340,749 |
|
|
| 5.2 | % |
Payroll and benefits |
|
| 29,754 |
|
|
| 28,843 |
|
|
| 3.2 | % |
Real estate taxes |
|
| 36,707 |
|
|
| 34,847 |
|
|
| 5.3 | % |
Utilities |
|
| 11,217 |
|
|
| 11,789 |
|
|
| (4.9 | )% |
Repairs and maintenance |
|
| 13,516 |
|
|
| 13,412 |
|
|
| 0.8 | % |
Office and other operating expenses |
|
| 11,703 |
|
|
| 11,373 |
|
|
| 2.9 | % |
Insurance |
|
| 4,035 |
|
|
| 4,414 |
|
|
| (8.6 | )% |
Advertising and yellow pages |
|
| 1,114 |
|
|
| 1,352 |
|
|
| (17.6 | )% |
Internet marketing |
|
| 6,409 |
|
|
| 5,557 |
|
|
| 15.3 | % |
Total same store operating expenses |
|
| 114,455 |
|
|
| 111,587 |
|
|
| 2.6 | % |
Same store net operating income |
| $ | 244,011 |
|
| $ | 229,162 |
|
|
| 6.5 | % |
Net operating income increased $5.0$63.2 million or 7.3%,25.5% as a result of a 6.5% increase in 2008 comparedour same store net operating income and the acquisitions completed since January 1, 2015 (excluding the four properties purchased in 2015 that had been leased since November 2013 and are included in the same store pool).
The following table reconciles NOI generated by our self-storage facilities to 2007. Of this increase, $2.7 million were expenses incurred byour net income presented in the facilities acquired in 20082016 and from having expenses from the 2007 acquisitions included for a full year of operations. $2.3 million of the increase was due to increased payroll, property taxes, utilities, and maintenance expenses at the 321 core properties considered same stores.2015 consolidated financial statements.
|
| Year ended December 31, |
| |||||
(dollars in thousands) |
| 2016 |
|
| 2015 |
| ||
Net income |
| $ | 84,956 |
|
| $ | 113,077 |
|
General and administrative |
|
| 43,103 |
|
|
| 38,659 |
|
Acquisition related costs |
|
| 29,542 |
|
|
| 2,991 |
|
Write-off of acquired property deposits |
|
| 1,783 |
|
|
| — |
|
Operating leases of storage facilities |
|
| — |
|
|
| 683 |
|
Depreciation and amortization |
|
| 117,081 |
|
|
| 58,506 |
|
Interest expense |
|
| 54,504 |
|
|
| 37,124 |
|
Interest income |
|
| (67 | ) |
|
| (5 | ) |
(Gain) loss on sale of storage facilities |
|
| (15,270 | ) |
|
| 494 |
|
Gain on sale of real estate |
|
| (623 | ) |
|
| — |
|
Equity in income of joint ventures |
|
| (3,665 | ) |
|
| (3,405 | ) |
Net operating income |
| $ | 311,344 |
|
| $ | 248,124 |
|
Net operating income |
|
|
|
|
|
|
|
|
Same store |
|
| 244,011 |
|
|
| 229,162 |
|
Other stores and management fee income |
|
| 67,333 |
|
|
| 18,962 |
|
Total net operating income |
| $ | 311,344 |
|
| $ | 248,124 |
|
General and administrative expenses increased $2.0$4.4 million or 13.4%11.5% from 20072015 to 2008.2016. The key drivers of the increase primarily resultedwere $0.9 million in expenses recorded in 2016 related to the Company’s name change, and a $1.7 million increase in professional fees mainly stemming from an increase in accounting fees related to the acquisition of LifeStorage, LP and an increase in legal fees related to the lawsuit in New Jersey. The remaining $1.8 million increase is the result of various other administrative costs, associated with operating the properties acquired in 2008including increased travel expenses and 2007, and fromsoftware charges, related to managing the 25 properties acquired byincreased number of stores in our joint ventureportfolio as a result of the LifeStorage, LP acquisition and other smaller acquisitions in 2008.2016.
Acquisition related costs were $29.5 million in 2016 related to the acquisition of 122 stores, including the acquisition of LifeStorage, LP. Acquisition related costs for 2015 were $3.0 million related to the acquisition of 27 stores.
The operating lease expense for storage facilities in 2015 relates to leases which commenced in November 2013 with respect to four self-storage facilities in New York (2) and Connecticut (2). Such leases had annual lease payments of $6 million with a provision for 4% annual increases, and an exclusive option to purchase the facilities for $120 million. We completed the purchase of these four facilities on February 2, 2015, thus eliminating the lease payments thereafter.
Depreciation and amortization expense increased to $33.9$117.1 million in 20082016 from $33.4$58.5 million in 2007,
22
Interest expense increased from $33.9$37.1 million in 20072015 to $38.1$54.5 million in 20082016. The increase was primarily due to interest on bridge loan financing entered into to facilitate the LifeStorage, LP acquisition as well as interest on the $600 million 3.5% senior notes issued in June 2016 and the $200 million 3.67% term loan entered into in July 2016, partially offset by reduced interest costs as a result of additional borrowings underthe payoff of the $150 million 6.38% term loan in April 2016 with a draw on our line of credit and term notes to purchase three stores in 2008, as well as an increase inwhich carries a lower interest rates as a result of our debt refinancing in June 2008.
During 2016, we sold fiveeight non-strategic storage facilities in Massachusetts, North Carolina,Alabama (1), Georgia (1), Mississippi (1), Texas (1), and PennsylvaniaVirginia (4) for net cash proceeds of $16.3approximately $34.1 million, resulting in a $15.3 million gain on sale. During 2015, we sold three non-strategic storage facilities purchased during 2014 and 2015 in Missouri and South Carolina for net proceeds of approximately $4.6 million, resulting in a loss of $1.6approximately $0.5 million. In 2008, the Operating Partnership sold one non-strategic storage facility located in Michigan for net cash proceeds of $7.0 million resulting in a gain of $0.7 million. The 2008 and 2007 operations of these facilities are reportedThese dispositions were not classified as discontinued operations.
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.
In October and November of 2011, NAREIT issued guidance for reporting FFO that reaffirmed NAREIT’s view that impairment write-downs of depreciable real estate should be excluded from the computation of FFO. This view is because impairment write-downs are akin to and effectively reflect the early recognition of losses on prospective sales of depreciable property or represent adjustments of previously charged depreciation. Since depreciation of real estate and gains/losses from sales are excluded from FFO, it is NAREIT’s view that it is consistent and appropriate for write-downs of depreciable real estate to also be excluded. Our calculation of FFO excludes impairment write-downs of investments in storage facilities.
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 Income to Funds From Operations
For Year Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Net income attributable to common unitholders | $ | 20,294 | $ | 38,120 | $ | 38,741 | $ | 35,003 | $ | 31,706 | ||||||||||
Net income attributable to noncontrolling interests | 1,360 | 1,563 | 1,848 | 1,529 | 490 | |||||||||||||||
Depreciation of real estate and amortization of intangible assets exclusive of deferred financing fees | 33,385 | 33,876 | 33,360 | 24,653 | 20,604 | |||||||||||||||
Depreciation of real estate included in discontinued operations. | 434 | 591 | 676 | 652 | 618 | |||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | 820 | 333 | 59 | 168 | 484 | |||||||||||||||
|
| For Year Ended December 31, |
| |||||||||||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
|
| 2014 |
|
| 2013 |
| |||||
Net income attributable to common shareholders |
| $ | 96,365 |
|
| $ | 85,225 |
|
| $ | 112,524 |
|
| $ | 88,531 |
|
| $ | 74,126 |
|
Net income attributable to noncontrolling interests in the Operating Partnership |
|
| 444 |
|
|
| 398 |
|
|
| 553 |
|
|
| 526 |
|
|
| 469 |
|
Depreciation of real estate and amortization of intangible assets exclusive of debt issuance costs |
|
| 125,580 |
|
|
| 115,531 |
|
|
| 57,429 |
|
|
| 50,827 |
|
|
| 44,369 |
|
Depreciation of real estate included in discontinued operations |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 313 |
|
Depreciation and amortization from unconsolidated joint ventures |
|
| 4,296 |
|
|
| 2,595 |
|
|
| 2,435 |
|
|
| 1,666 |
|
|
| 1,496 |
|
Loss (gain) on sale of real estate |
|
| 3,503 |
|
|
| (15,270 | ) |
|
| 494 |
|
|
| (5,176 | ) |
|
| (2,852 | ) |
Funds from operations allocable to noncontrolling interest in the Operating Partnership |
|
| (1,045 | ) |
|
| (857 | ) |
|
| (848 | ) |
|
| (806 | ) |
|
| (742 | ) |
Funds from operations available to common shareholders |
| $ | 229,143 |
|
| $ | 187,622 |
|
| $ | 172,587 |
|
| $ | 135,568 |
|
| $ | 117,179 |
|
23
For Year Ended December 31, | ||||||||||||||||||||
(dollars in thousands) | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||
Casualty gain | — | — | (114 | ) | — | — | ||||||||||||||
Loss (gain) on sale of real estate | 509 | (716 | ) | — | — | — | ||||||||||||||
Funds from operations allocable to noncontrolling interest in consolidated joint ventures | (1,360 | ) | (1,564 | ) | (1,848 | ) | (1,785 | ) | (1,499 | ) | ||||||||||
Funds from operations available to common unitholders | $ | 55,442 | $ | 72,203 | $ | 72,722 | $ | 60,220 | $ | 52,403 | ||||||||||
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 distributiondividend payouts. At December 31, 2009,2017, the Operating PartnershipCompany was in compliance with all debt covenants. The most sensitive covenant is the leverage ratio covenant contained in our line of credit and term note agreements. This covenant limits our total consolidated liabilities to 55% of our gross asset value. At December 31, 2009, our leverage ratio as defined in the agreements was approximately 42.8%. The agreements define total consolidated liabilities to include the liabilities of the Operating Partnership plus our share of liabilities of unconsolidated joint ventures. The agreements also define a prescribed formula for determining gross asset value which incorporates the use of a 9.25% capitalization rate applied to annualized earnings before interest, taxes, depreciation and amortization (“EBITDA”) as defined in the agreements. At March 31, 2009, the Operating Partnership had violated the leverage ratio covenant contained in the line of credit and term note agreements. In May 2009, the Operating Partnership obtained a waiver of the violation as of March 31, 2009. The fees paid to obtain the waiver were approximately $0.9 million and are included in interest expense in 2009. In the event that the Operating PartnershipCompany violates its debt covenants in the future, the amounts due under the agreements could be callable by the lenders.
24
Our ability to retain cash flow is limited because we operate as a REIT. 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 $248.6 million, $225.6 million, and $186.2 million for the years ended December 31, 2017, 2016, and 2015, respectively. The increases in operating cash flows from 2016 to 2017 and from 2015 to 2016 were primarily due to an increase in net income as adjusted for non-cash depreciation and amortization expenses and other non-cash items during these periods.
Cash used in investing activities was $156.5 million, $1,796.1 million, and $328.7 million for the years ended December 31, 2017, 2016, and 2015 respectively. The decrease in cash used from 2016 to 2017 was primarily a result of the acquisition of LifeStorage, LP and other acquisitions made in 2016, partially offset by an increase in the Company’s investment in unconsolidated joint ventures in 2017. The increase in cash used in investing activities from 2015 to 2016 was primarily a result of the acquisition of LifeStorage, LP and other acquisitions made in 2016, partially offset by increased proceeds on the sale of storage facilities in 2016.
Cash used in financing activities was $106.6 million in 2017 compared to cash provided by financing activities of $1,587.2 million in 2016. In 2017, the Company increased its dividends paid on its common stock from $156.2 million in 2016 to $183.7 million in 2017. On December 7, 2017, the Operating Partnership issued $450 million in senior notes, the proceeds of which were used primarily to repay $225 million of then outstanding term notes and to pay down the Company’s revolving line of credit. Also, during 2017, the Company repurchased 112,554 of the Company’s outstanding common shares for $8.2 million under the Company’s Buyback Program discussed further below. In 2016, the Company received net proceeds from the sale of common stock through public offerings of $935.1 million. The Company also maintainreceived net proceeds from the issuance of term notes of $796.7 million and net proceeds from the Company’s revolving credit line of $174.0 million in 2016. Further, the Company settled pre-issuance interest rate swaps on the 2026 Notes (discussed further below) for $9.2 million in 2016. Cash provided by financing activities was $1,587.2 million in 2016 compared to $141.0 million in 2015. The increase from 2015 to 2016 was primarily a $80result of the previously mentioned 2016 activity and a $43.2 million increase in dividends paid.
For the years 2015, 2016 and 2017, see Note 5 to the consolidated financial statements for details of the Company’s unsecured line of credit and term note maturing September 2013 bearing interest at a fixed rate of 6.26%, a $20 million term note maturing September 2013 bearing interest at a variable rate equal to LIBOR plus 1.50%, and a $150 million unsecured term note maturing in April 2016 bearing interest at 6.38% (based on our December 31, 2009 credit ratings).
Our line of credit facility and term notes hadhave an investment grade rating from Standard and Poor’s (BBB-). Due to our debt covenant violation(BBB) and operating trends, Fitch Ratings downgraded the Operating Partnership’s rating on its revolving credit facility and term notes to non-investment grade (BB+) in May 2009. As a result of the Company’s common stock offering in October 2009 and the use of proceeds to repay $100 million of term notes, Fitch Ratings upgraded our rating on our line of credit and term notes again to investment grade (BBB-)Moody’s (Baa2). Combined, this credit rating upgrade, the repayment of $100 million of term notes and the termination of the interest rate swaps related to these term notes are expected to reduce our annualized interest by approximately $9.8 million.
25
The following table summarizes our future contractual obligations:
|
| Payments due by period (in thousands) |
| |||||||||||||||||
Contractual obligations |
| Total |
|
| 2018 |
|
| 2019-2020 |
|
| 2021-2022 |
|
| 2023 and thereafter |
| |||||
Line of credit |
| $ | 105,000 |
|
| $ | — |
|
| $ | 105,000 |
|
| $ | — |
|
| $ | — |
|
Term notes |
|
| 1,625,000 |
|
|
| — |
|
|
| 100,000 |
|
|
| 100,000 |
|
|
| 1,425,000 |
|
Mortgages payable |
|
| 12,674 |
|
|
| 372 |
|
|
| 806 |
|
|
| 3,516 |
|
|
| 7,980 |
|
Interest payments |
|
| 514,859 |
|
|
| 65,912 |
|
|
| 126,483 |
|
|
| 111,481 |
|
|
| 210,983 |
|
Land leases |
|
| 9,103 |
|
|
| 566 |
|
|
| 1,135 |
|
|
| 1,137 |
|
|
| 6,265 |
|
Expansion and enhancement contracts |
|
| 32,807 |
|
|
| 32,807 |
|
|
| — |
|
|
| — |
|
|
| — |
|
Building leases |
|
| 14,676 |
|
|
| 2,328 |
|
|
| 4,068 |
|
|
| 3,431 |
|
|
| 4,849 |
|
Total |
| $ | 2,314,119 |
|
| $ | 101,985 |
|
| $ | 337,492 |
|
| $ | 219,565 |
|
| $ | 1,655,077 |
|
Interest payments include actual interest on fixed rate debt and estimated interest for floating-rate debt based on December 31, 20092017 rates. Interest rate swap payments include net settlements of swap liabilities based on
26
In 2017, we acquired no propertiestwo self-storage facilities comprising 148,000 square feet in 2009. During 2008,Illinois (1) and North Carolina (1) for a total purchase price of $22.6 million. As both of these acquisitions were of newly constructed facilities, the weighted average capitalization rate for each acquisition was 0%. In 2016, we used operating cash flow, borrowings pursuant to the line of credit, borrowings under the bank term note, and proceeds from the Company’s Dividend Reinvestment and Stock Purchase Plan to acquire three Properties in Mississippi and Ohioacquired 122 self-storage facilities comprising 0.29.4 million square feet from unaffiliated storage operators. During 2007, we used operating cash flow, borrowings pursuant to the line of credit, borrowings under the bank term note, proceeds from the Company’s Dividend Reinvestment and Stock Purchase Plan, and proceeds from the December 2006 common stock offering to acquire 31 Properties in Alabama,Arizona (1), California (22), Colorado (6), Connecticut (2), Florida (11), Illinois (25), Massachusetts (1), Mississippi (1), New Hampshire (5), Nevada (17), New York (4), Pennsylvania (1), South Carolina (1), Texas (23), Utah (1), and TexasWisconsin (1) for a total purchase price of $1,783.9 million. Based on the trailing financial information of the entities from which the properties were acquired, the weighted average capitalization rate was 3.6% on these purchases and ranged from 0% on recently constructed facilities to 6.7% on mature facilities. In 2015, we acquired 27 self-storage facilities comprising 2.32.0 million square feet in Arizona (1), Connecticut (2), Florida (6), Illinois (2), Massachusetts (1), New York (6), North Carolina (1), Pennsylvania (1), South Carolina (6) and Texas (1) for a total purchase price of $281.2 million. Based on the trailing financial information of the entities from unaffiliated storage operators.
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 ininto new markets by acquiring several facilities at once in those new markets. No properties were acquired in 2009 and acquisitions in 2010 may be limited due to the fact that, at present, seller’s asking prices remain considerably higher than the Operating Partnership believes market conditions warrant.
In 20092017, we scaled back a planned $550 million program to expand and enhance our existing properties. Instead we spent approximately $18 million to add 175,000added 382,000 square feet to existing Properties and to convert 64,000converted 122,000 square feet to premium storage. Westorage for a total cost of approximately $35.2 million. In 2017 we also completed constructioninstalled solar panels on two buildings for a total cost of a new 78,000 square foot facility in Richmond, Virginia.approximately $0.4 million. Although we do not expect to construct any new facilities in 2010,2018, we do plan to expend upcomplete $40 million to $50 million in expansions and enhancements to existing facilities of which $12.1 million was paid prior to December 31, 2017.
In 2017, the Company spent approximately $47.8 million for recurring capitalized expenditures including roofing, paving, office renovations, and new signs related to our rebranding. We expect to spend $20 million to expand and enhance existing facilities.
DISPOSITION OF PROPERTIES
During 2009,2017, we sold fivetwo non-strategic storage facilities in Massachusetts, North Carolina,Utah (1) and PennsylvaniaTexas (1) for net cash proceeds of $16.3approximately $16.9 million, resulting in a $3.5 million loss on sale. The Company has subsequently leased one of these properties and has deferred the related gain until the termination of the lease which is scheduled in 2020. During 2016, we sold eight non-strategic storage facilities in Alabama (1), Georgia (1), Mississippi (1), Texas (1), and Virginia (4) for net proceeds of approximately $34.1 million, resulting in a $15.3 million gain on sale. During 2015, we sold three non-strategic storage facilities purchased during 2014 and 2015 in Missouri and South Carolina for net proceeds of approximately $4.6 million, resulting in a loss of $1.6approximately $0.5 million. During 2008,
As part of our ongoing strategy to improve overall operating efficiencies and portfolio quality, we sold one non-strategic storage facility located in Michigan for net cash proceeds of $7.0 million resulting in a gain of $0.7 million. No sales took place in 2007.
Our off-balance sheet arrangements consist of our investment at December 31, 2009 was $19.9 million. Twenty five properties were acquired by Sovran HHFin nine self-storage joint ventures in which we have ownership interests ranging from 5% to 85%, as of December 31, 2008 for approximately $171.5 million. We contributed $18.6 million to the joint venturewell as our share of capital required to fundinvestment in the acquisitions.
27
Sovran HHF | ||||||||
Storage | Iskalo Office | |||||||
(dollars in thousands) | Holdings LLC | Holdings, LLC | ||||||
Balance Sheet Data: | ||||||||
Investment in storage facilities, net | $ | 168,237 | $ | — | ||||
Investment in office building | — | 5,322 | ||||||
Other assets | 3,575 | 688 | ||||||
Total Assets | $ | 171,812 | $ | 6,010 | ||||
Due to the Operating Partnership | $ | 173 | $ | — | ||||
Mortgages payable | 78,512 | 7,037 | ||||||
Other liabilities | 2,087 | 224 | ||||||
Total Liabilities | 80,772 | 7,261 | ||||||
Unaffiliated partners’ equity (deficiency) | 72,832 | (714 | ) | |||||
Operating Partnership equity (deficiency) | 18,208 | (537 | ) | |||||
Total Liabilities and Partners’ Equity (deficiency) | $ | 171,812 | $ | 6,010 | ||||
Income Statement Data: | ||||||||
Total revenues | $ | 17,702 | $ | 1,129 | ||||
Total expenses | 16,761 | 1,115 | ||||||
Net income | $ | 941 | $ | 14 |
Year ended December 31, | ||||||||||||
(dollars in thousands) | 2009 | 2008 | 2007 | |||||||||
Statement of Operations | ||||||||||||
Other operating income (management fees and acquisition fee income) | $ | 1,243 | $ | 1,135 | $ | — | ||||||
General and administrative expenses (corporate office rent) | 608 | 600 | 561 | |||||||||
Equity in income of joint ventures | 235 | 104 | 119 | |||||||||
Distributions from unconsolidated joint ventures | 686 | 345 | 98 | |||||||||
Investing activities | ||||||||||||
Investment in joint ventures | (331 | ) | (20,287 | ) | — | |||||||
Reimbursement of advances to (advances to) joint ventures | 163 | (336 | ) | — |
28
As a REIT, the Company iswe are not required to pay federal income tax on income that it distributeswe distribute to itsour shareholders, provided that the amount distributed is equal towe satisfy certain requirements, including distributing at least 90% of itsour REIT taxable income.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 the Company files itswe file our federal income tax return, and if it isthey are paid beforenot later than the date of the first regular dividend of the following year. The first distribution of 2010 may be applied toward the Company’s 2009 distribution requirement. The Company’s source of funds for such distributions is solely and directly from the Operating Partnership.
As a REIT, the Companywe must derive at least 95% of itsour total gross income from income related to real property, interest and dividends. In 2009, the Company’s2016, our percentage of revenue from such sources exceeded 98%was approximately 97%, thereby passing the 95% test, and no special measures are expected to be required to enable the Companyus to maintain itsour REIT designation.
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.
We have entered into an interest rate swap agreements in orderagreement to help mitigate the effects of fluctuations in interest rates on our variable rate debt. At December 31, 2009, we have three outstanding interest rate swap agreements as summarized below:
Through June 2012, allSeptember 2018, $100 million of our $400$205 million of floating rate unsecured debt is on a fixed rate basis after taking into account theour interest rate swaps noted above.swap agreements. Based on our outstanding unsecured floating rate debt of $400$205 million at December 31, 2009,2017, a 100 basis point increase in interest rates would have noa $1.1 million effect on our interest expense.
29
Expected Maturity Date Including Discount | ||||||||||||||||||||||||||||||||
(dollars in thousands) | 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Fair Value | ||||||||||||||||||||||||
Line of credit — variable rate LIBOR + 1.375 (1.61% at December 31, 2009) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Notes Payable: | ||||||||||||||||||||||||||||||||
Term note — variable rate LIBOR+1.625% (1.86% at December 31, 2009) | — | — | $ | 150,000 | — | — | — | $ | 150,000 | $ | 150,000 | |||||||||||||||||||||
Term note — variable rate LIBOR+1.50% (2.23% at December 31, 2009) | — | — | — | $ | 20,000 | — | — | $ | 20,000 | $ | 20,000 | |||||||||||||||||||||
Term note — fixed rate 6.26% | — | — | — | $ | 80,000 | — | — | $ | 80,000 | $ | 76,958 | |||||||||||||||||||||
Term note — fixed rate 6.38% | — | — | — | — | — | $ | 150,000 | $ | 150,000 | $ | 136,630 | |||||||||||||||||||||
Mortgage note — fixed rate 7.80% | $ | 630 | $ | 27,817 | — | — | — | — | $ | 28,447 | $ | 29,454 | ||||||||||||||||||||
Mortgage note — fixed rate 7.19% | $ | 1,211 | $ | 1,301 | $ | 38,963 | — | — | — | $ | 41,475 | $ | 43,133 | |||||||||||||||||||
Mortgage note — fixed rate 7.25% | $ | 149 | $ | 3,220 | — | — | — | — | $ | 3,369 | $ | 3,385 | ||||||||||||||||||||
Mortgage note — fixed rate 6.76% | $ | 25 | $ | 27 | $ | 29 | $ | 896 | — | — | $ | 977 | $ | 1,011 | ||||||||||||||||||
Mortgage note — fixed rate 6.35% | $ | 28 | $ | 30 | $ | 31 | $ | 34 | $ | 949 | — | $ | 1,072 | $ | 1,059 | |||||||||||||||||
Mortgage notes — fixed rate 7.50% | $ | 222 | $ | 5,657 | — | — | — | — | $ | 5,879 | $ | 6,003 | ||||||||||||||||||||
Interest rate derivatives — liability | — | — | — | — | — | — | — | $ | 11,524 |
SEASONALITY
Our revenues typically have been higher in the third and fourth quarters, primarily because we increase rental rates on most of our storage units at the beginning of May and 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 materially distributions to unitholders.
The information required is incorporated by reference to the information appearing under the caption “Interest Rate Risk” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” above.
30
To the Shareholders and the Board of Directors and Partners of Sovran Acquisition Limited Partnership
Opinion on the Financial Statement
We have audited the accompanying consolidated balance sheets of Sovran Acquisition Limited PartnershipLife Storage, Inc. (the Parent Company) as of December 31, 20092017 and 2008,2016, and the related consolidated statements of operations, partners’ capital and comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2009. Our audits also included2017, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). TheseIn our opinion, the consolidated financial statements and schedule arepresent fairly, in all material respects, the responsibilityfinancial position of the Operating Partnership’s management. Our responsibility is to express an opinion on these financial statementsParent Company at December 31, 2017 and schedule based on our audits.
We conducted our auditshave also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States). (PCAOB), the Parent Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 27, 2018 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Parent Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Parent Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includesmisstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence supportingregarding the amounts and disclosures in the financial statements. An auditOur audits also includes assessingincluded evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statement presentation.statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Parent Company’s auditor since 1994.
Buffalo, New York
February 27, 2018
Report of Independent Registered Public Accounting Firm
To the Partners and the Board of Directors of Life Storage LP
Opinion on the Financial Statement
We have audited the accompanying consolidated balance sheets of Life Storage LP (the Operating Partnership) as of December 31, 2017 and 2016, and the related consolidated statements of operations, comprehensive income, partners’ capital and cash flows for each of the three years in the period ended December 31, 2017, and the related notes and financial statement schedule listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Sovran Acquisition Limitedthe Operating Partnership at December 31, 20092017 and 2008,2016, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2009,2017, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.
We have also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), Sovran Acquisition Limitedthe Operating Partnership’s internal control over financial reporting as of December 31, 2009,2017, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 26, 201027, 2018 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Operating Partnership’s management. Our responsibility is to express an opinion on the Operating Partnership’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ Ernst & Young LLP
We have served as the Operating Partnership’s auditor since 2016.
Buffalo, New York
February 26, 201027, 2018
31
December 31, | ||||||||
(dollars in thousands, except unit data) | �� | 2009 | 2008 | |||||
Assets | ||||||||
Investment in storage facilities: | ||||||||
Land | $ | 237,684 | $ | 236,655 | ||||
Building, equipment, and construction in progress | 1,149,899 | 1,129,960 | ||||||
1,387,583 | 1,366,615 | |||||||
Less: accumulated depreciation | (245,178 | ) | (212,301 | ) | ||||
Investment in storage facilities, net | 1,142,405 | 1,154,314 | ||||||
Cash and cash equivalents | 10,710 | 4,486 | ||||||
Accounts receivable | 2,405 | 2,934 | ||||||
Receivable from related parties | — | 14 | ||||||
Receivable from unconsolidated joint venture | 173 | 336 | ||||||
Investment in unconsolidated joint venture | 19,944 | 20,111 | ||||||
Prepaid expenses | 4,250 | 4,647 | ||||||
Other assets | 5,314 | 7,460 | ||||||
Net assets of discontinued operations | — | 18,226 | ||||||
Total Assets | $ | 1,185,201 | $ | 1,212,528 | ||||
Liabilities | ||||||||
Line of credit | $ | — | $ | 14,000 | ||||
Term notes | 400,000 | 500,000 | ||||||
Accounts payable and accrued liabilities | 22,339 | 23,701 | ||||||
Deferred revenue | 5,060 | 5,570 | ||||||
Fair value of interest rate swap agreements | 11,524 | 25,490 | ||||||
Accrued distributions | — | 14,359 | ||||||
Mortgages payable | 81,219 | 109,261 | ||||||
Total Liabilities | 520,142 | 692,381 | ||||||
Limited partners’ redeemable capital interest (419,952 units in 2009 and 2008) | 15,005 | 15,118 | ||||||
Partners’ Capital | ||||||||
General partner (219,567 units outstanding in 2009 and 2008) | 3,495 | 3,650 | ||||||
Limited partner (27,327,460 and 21,796,781 units outstanding in 2009 and 2008, respectively) | 644,742 | 513,459 | ||||||
Accumulated other comprehensive income | (11,265 | ) | (25,162 | ) | ||||
Total Controlling Partners’ Capital | 636,972 | 491,947 | ||||||
Noncontrolling interest- consolidated joint venture | 13,082 | 13,082 | ||||||
Total Partners’ Capital | 650,054 | 505,029 | ||||||
Total Liabilities and Partners’ Capital | $ | 1,185,201 | $ | 1,212,528 | ||||
|
| December 31, |
| |||||
(dollars in thousands, except share data) |
| 2017 |
|
| 2016 |
| ||
Assets |
|
|
|
|
|
|
|
|
Investment in storage facilities: |
|
|
|
|
|
|
|
|
Land |
| $ | 786,628 |
|
| $ | 786,764 |
|
Building, equipment, and construction in progress |
|
| 3,534,782 |
|
|
| 3,456,544 |
|
|
|
| 4,321,410 |
|
|
| 4,243,308 |
|
Less: accumulated depreciation |
|
| (624,314 | ) |
|
| (535,704 | ) |
Investment in storage facilities, net |
|
| 3,697,096 |
|
|
| 3,707,604 |
|
Cash and cash equivalents |
|
| 9,167 |
|
|
| 23,685 |
|
Accounts receivable |
|
| 7,331 |
|
|
| 5,469 |
|
Receivable from unconsolidated joint ventures |
|
| 1,397 |
|
|
| 1,223 |
|
Investment in unconsolidated joint ventures |
|
| 133,458 |
|
|
| 67,300 |
|
Prepaid expenses |
|
| 6,757 |
|
|
| 6,649 |
|
Fair value of interest rate swap agreements |
|
| 205 |
|
|
| — |
|
Trade name |
|
| 16,500 |
|
|
| 16,500 |
|
Other assets |
|
| 4,863 |
|
|
| 29,554 |
|
Total Assets |
| $ | 3,876,774 |
|
| $ | 3,857,984 |
|
Liabilities |
|
|
|
|
|
|
|
|
Line of credit |
| $ | 105,000 |
|
| $ | 253,000 |
|
Term notes, net |
|
| 1,609,089 |
|
|
| 1,387,525 |
|
Accounts payable and accrued liabilities |
|
| 92,941 |
|
|
| 75,132 |
|
Deferred revenue |
|
| 9,374 |
|
|
| 9,700 |
|
Fair value of interest rate swap agreements |
|
| — |
|
|
| 13,015 |
|
Mortgages payable |
|
| 12,674 |
|
|
| 13,027 |
|
Total Liabilities |
|
| 1,829,078 |
|
|
| 1,751,399 |
|
Noncontrolling redeemable Operating Partnership Units at redemption value |
|
| 19,373 |
|
|
| 18,091 |
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
Common stock $.01 par value, 100,000,000 shares authorized, 46,552,222 shares outstanding at December 31, 2017 (46,454,606 at December 31, 2016) |
|
| 466 |
|
|
| 464 |
|
Additional paid-in capital |
|
| 2,363,171 |
|
|
| 2,348,567 |
|
Dividends in excess of net income |
|
| (327,727 | ) |
|
| (239,062 | ) |
Accumulated other comprehensive loss |
|
| (7,587 | ) |
|
| (21,475 | ) |
Total Shareholders’ Equity |
|
| 2,028,323 |
|
|
| 2,088,494 |
|
Noncontrolling interest in consolidated subsidiary |
|
| — |
|
|
| — |
|
Total Equity |
|
| 2,028,323 |
|
|
| 2,088,494 |
|
Total Liabilities and Shareholders’ Equity |
| $ | 3,876,774 |
|
| $ | 3,857,984 |
|
32
Year Ended December 31, | ||||||||||||
(dollars in thousands, except per unit data) | 2009 | 2008 | 2007 | |||||||||
Revenues | ||||||||||||
Rental income | $ | 186,892 | $ | 192,474 | $ | 183,802 | ||||||
Other operating income | 8,119 | 7,719 | 6,211 | |||||||||
Total operating revenues | 195,011 | 200,193 | 190,013 | |||||||||
Expenses | ||||||||||||
Property operations and maintenance | 51,955 | 54,858 | 51,466 | |||||||||
Real estate taxes | 19,591 | 18,706 | 17,095 | |||||||||
General and administrative | 18,650 | 17,279 | 15,234 | |||||||||
Depreciation and amortization | 33,384 | 33,876 | 33,360 | |||||||||
Total operating expenses | 123,580 | 124,719 | 117,155 | |||||||||
Income from operations | 71,431 | 75,474 | 72,858 | |||||||||
Other income (expenses) | ||||||||||||
Interest expense | (50,050 | ) | (38,097 | ) | (33,861 | ) | ||||||
Interest income | 85 | 322 | 954 | |||||||||
Casualty (loss) gain | (390 | ) | — | 114 | ||||||||
Gain on sale of land | 1,127 | — | — | |||||||||
Equity in income of joint ventures | 235 | 104 | 119 | |||||||||
Income from continuing operations | 22,438 | 37,803 | 40,184 | |||||||||
(Loss) income from discontinued operations (including loss on disposal of $1,636 in 2009 and gain on disposal of $716 in 2008) | (784 | ) | 1,880 | 1,661 | ||||||||
Net income | 21,654 | 39,683 | 41,845 | |||||||||
Preferred unit distributions | — | — | (1,256 | ) | ||||||||
Net income attributable to noncontrolling interest | (1,360 | ) | (1,563 | ) | (1,848 | ) | ||||||
Net income attributable to common unitholders | $ | 20,294 | $ | 38,120 | $ | 38,741 | ||||||
Earnings per common unit attributable to common unitholders — basic | ||||||||||||
Continuing operations | $ | 0.87 | $ | 1.63 | $ | 1.73 | ||||||
Discontinued operations | (0.03 | ) | 0.09 | 0.08 | ||||||||
Earning per unit — basic | $ | 0.84 | $ | 1.72 | $ | 1.81 | ||||||
Earnings per common unit attributable to common unitholders — diluted | ||||||||||||
Continuing operations | $ | 0.87 | $ | 1.63 | $ | 1.73 | ||||||
Discontinued operations | (0.03 | ) | 0.09 | 0.08 | ||||||||
Earning per unit — diluted | $ | 0.84 | $ | 1.72 | $ | 1.81 | ||||||
Distributions declared per common unit | $ | 1.54 | $ | 2.54 | $ | 2.50 |
33
Accumulated | ||||||||||||||||||||
Sovran | Sovran Self | Other | Total Controlling | |||||||||||||||||
Holdings, Inc. | Storage Inc. | Preferred C | Comprehensive | Partners’ | ||||||||||||||||
(Dollars in thousands) | General Partner | Limited Partner | Partners | Income (loss) | Capital | |||||||||||||||
Balance January 1, 2007 | 3,905 | 480,467 | 30,000 | 2,128 | 516,500 | |||||||||||||||
Proceeds from issuance of Partnership Units | — | 12,759 | — | — | 12,759 | |||||||||||||||
Redemption of Partnership Units | — | (117 | ) | — | — | (117 | ) | |||||||||||||
Exercise of stock options | — | 425 | — | — | 425 | |||||||||||||||
Earned portion of non-vested stock | — | 1,224 | — | — | 1,224 | |||||||||||||||
Stock option expense | — | 183 | — | — | 183 | |||||||||||||||
Deferred compensation | — | 161 | — | — | 161 | |||||||||||||||
Conversion of Series C Units to partnership units | — | 30,000 | (30,000 | ) | — | — | ||||||||||||||
Conversion of partnership units to shares of common stock | — | 167 | — | — | 167 | |||||||||||||||
Net income | 409 | 38,805 | — | — | 39,214 | |||||||||||||||
Change in fair value of derivatives | — | — | — | (3,496 | ) | (3,496 | ) | |||||||||||||
Total comprehensive income | — | — | — | — | 35,718 | |||||||||||||||
Distributions | (563 | ) | (53,479 | ) | — | — | (54,042 | ) | ||||||||||||
Adjustment to reflect limited partners’ redeemable capital at balance sheet date | 72 | 7,047 | — | — | 7,119 | |||||||||||||||
Balance December 31, 2007 | 3,823 | 517,642 | — | (1,368 | ) | 520,097 | ||||||||||||||
Proceeds from issuance of Partnership Units | — | 10,658 | — | — | 10,658 | |||||||||||||||
Redemption of Partnership Units | — | (69 | ) | — | — | (69 | ) | |||||||||||||
Exercise of stock options | — | 72 | — | — | 72 | |||||||||||||||
Earned portion of non-vested stock | — | 1,444 | — | — | 1,444 | |||||||||||||||
Stock option expense | — | 279 | — | — | 279 | |||||||||||||||
Deferred compensation | — | 112 | — | — | 112 | |||||||||||||||
Net income | 375 | 37,024 | — | — | 37,399 | |||||||||||||||
Change in fair value of derivatives | — | — | — | (23,794 | ) | (23,794 | ) | |||||||||||||
Total comprehensive income | — | — | — | — | 13,605 | |||||||||||||||
Distributions | (562 | ) | (55,128 | ) | — | — | (55,690 | ) | ||||||||||||
Adjustment to reflect limited partners’ redeemable capital at balance sheet date | 14 | 1,425 | — | — | 1,439 | |||||||||||||||
Balance December 31, 2008 | 3,650 | 513,459 | — | (25,162 | ) | 491,947 | ||||||||||||||
Proceeds from issuance of Partnership Units | — | 146,534 | — | — | 146,534 | |||||||||||||||
Exercise of stock options | — | 62 | — | — | 62 | |||||||||||||||
Earned portion of non-vested stock | — | 1,379 | — | — | 1,379 | |||||||||||||||
Stock option expense | — | 321 | — | — | 321 | |||||||||||||||
Deferred compensation | — | 114 | — | — | 114 | |||||||||||||||
Net income | 184 | 19,732 | — | — | 19,916 | |||||||||||||||
Change in fair value of derivatives | — | — | — | 13,897 | 13,897 | |||||||||||||||
Total comprehensive income | — | — | — | — | 33,813 | |||||||||||||||
Distributions | (338 | ) | (36,704 | ) | — | — | (37,042 | ) | ||||||||||||
Adjustment to reflect limited partners’ redeemable capital at balance sheet date | (1 | ) | (155 | ) | — | — | (156 | ) | ||||||||||||
Balance December 31, 2009 | $ | 3,495 | $ | 644,742 | $ | — | $ | (11,265 | ) | $ | 636,972 |
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands, except per share data) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
| $ | 485,303 |
|
| $ | 428,121 |
|
| $ | 338,435 |
|
Other operating income |
|
| 44,447 |
|
|
| 34,487 |
|
|
| 28,167 |
|
Total operating revenues |
|
| 529,750 |
|
|
| 462,608 |
|
|
| 366,602 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property operations and maintenance |
|
| 122,794 |
|
|
| 103,388 |
|
|
| 81,915 |
|
Real estate taxes |
|
| 57,663 |
|
|
| 47,876 |
|
|
| 36,563 |
|
General and administrative |
|
| 50,031 |
|
|
| 43,103 |
|
|
| 38,659 |
|
Acquisition costs |
|
| — |
|
|
| 29,542 |
|
|
| 2,991 |
|
Write-off of acquired property deposits |
|
| — |
|
|
| 1,783 |
|
|
| — |
|
Operating leases of storage facilities |
|
| 424 |
|
|
| — |
|
|
| 683 |
|
Depreciation and amortization |
|
| 127,485 |
|
|
| 117,081 |
|
|
| 58,506 |
|
Total operating expenses |
|
| 358,397 |
|
|
| 342,773 |
|
|
| 219,317 |
|
Income from operations |
|
| 171,353 |
|
|
| 119,835 |
|
|
| 147,285 |
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| (74,362 | ) |
|
| (47,175 | ) |
|
| (37,124 | ) |
Interest expense – bridge financing commitment fee |
|
| — |
|
|
| (7,329 | ) |
|
| — |
|
Interest income |
|
| 7 |
|
|
| 67 |
|
|
| 5 |
|
(Loss) gain on sale of storage facilities |
|
| (3,503 | ) |
|
| 15,270 |
|
|
| (494 | ) |
Gain on sale of real estate |
|
| �� |
|
|
| 623 |
|
|
| — |
|
Equity in income of joint ventures |
|
| 3,314 |
|
|
| 3,665 |
|
|
| 3,405 |
|
Net income |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
Net income attributable to noncontrolling interest in the Operating Partnership |
|
| (444 | ) |
|
| (398 | ) |
|
| (553 | ) |
Net loss attributable to noncontrolling interest in consolidated subsidiary |
|
| — |
|
|
| 667 |
|
|
| — |
|
Net income attributable to common shareholders |
| $ | 96,365 |
|
| $ | 85,225 |
|
| $ | 112,524 |
|
Earnings per common share attributable to common shareholders - basic |
| $ | 2.08 |
|
| $ | 1.97 |
|
| $ | 3.18 |
|
Earnings per common share attributable to common shareholders - diluted |
| $ | 2.07 |
|
| $ | 1.96 |
|
| $ | 3.16 |
|
34
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2009 | 2008 | 2007 | |||||||||
Operating Activities | ||||||||||||
Net income | $ | 21,654 | $ | 39,683 | $ | 41,845 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization | 35,656 | 35,659 | 34,999 | |||||||||
Loss (gain) on sale of storage facilities | 1,636 | (716 | ) | — | ||||||||
Gain on sale of land | (1,127 | ) | — | — | ||||||||
Casualty loss (gain) | 390 | — | (114 | ) | ||||||||
Equity in income of joint ventures | (235 | ) | (104 | ) | (119 | ) | ||||||
Distributions from unconsolidated joint venture | 686 | 345 | 98 | |||||||||
Non-vested stock earned | 1,379 | 1,444 | 1,224 | |||||||||
Stock option expense | 321 | 279 | 183 | |||||||||
Changes in assets and liabilities: | ||||||||||||
Accounts receivable | 509 | (171 | ) | (599 | ) | |||||||
Prepaid expenses | 413 | 118 | 822 | |||||||||
Accounts payable and other liabilities | (1,677 | ) | 619 | 7,082 | ||||||||
Deferred revenue | (462 | ) | (24 | ) | (246 | ) | ||||||
Net cash provided by operating activities | 59,143 | 77,132 | 85,175 | |||||||||
Investing Activities | ||||||||||||
Acquisition of storage facilities | — | (18,547 | ) | (138,059 | ) | |||||||
Improvements, equipment additions, and construction in progress | (22,261 | ) | (45,709 | ) | (52,441 | ) | ||||||
Net proceeds from the sale of storage facility | 16,309 | 7,002 | — | |||||||||
Net proceeds from the sale of land | 1,140 | — | — | |||||||||
Casualty insurance proceeds received | 518 | — | 1,692 | |||||||||
Investment in unconsolidated joint venture | (331 | ) | (20,287 | ) | — | |||||||
Additional investment in consolidated joint ventures net of cash acquired | — | (6,106 | ) | — | ||||||||
Reimbursement of advances (advances) to joint ventures | 163 | (336 | ) | — | ||||||||
Reimbursement of (payment of) property deposits | — | 1,259 | (1,469 | ) | ||||||||
Receipts from related parties | 14 | 13 | 10 | |||||||||
Net cash used in investing activities | (4,448 | ) | (82,711 | ) | (190,267 | ) | ||||||
Financing Activities | ||||||||||||
Net proceeds from sale of common stock | 146,710 | 10,842 | 13,345 | |||||||||
Proceeds from line of credit | 30,000 | 14,000 | 112,000 | |||||||||
Repayment of line of credit and term note | (144,000 | ) | (206,000 | ) | (12,000 | ) | ||||||
Proceeds from term notes | — | 250,000 | 6,000 | |||||||||
Financing costs | — | (3,085 | ) | (316 | ) | |||||||
Distributions paid | (53,139 | ) | (57,889 | ) | (55,973 | ) | ||||||
Redemption of operating partnership units | — | (114 | ) | (174 | ) | |||||||
Mortgage principal and capital lease payments | (28,042 | ) | (1,699 | ) | (1,510 | ) | ||||||
Net cash (used in) provided by financing activities | (48,471 | ) | 6,055 | 61,372 | ||||||||
Net increase (decrease) in cash | 6,224 | 476 | (43,720 | ) | ||||||||
Cash at beginning of period | 4,486 | 4,010 | 47,730 | |||||||||
Cash at end of period | $ | 10,710 | $ | 4,486 | $ | 4,010 | ||||||
Supplemental cash flow information | ||||||||||||
Cash paid for interest, net of interest capitalized | $ | 49,154 | $ | 37,970 | $ | 32,313 | ||||||
Fair value of net liabilities assumed on the acquisition of storage facilities | — | 107 | 1,580 |
35
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Net income |
| $ | 96,809 |
|
| $ | 84,956 |
|
| $ | 113,077 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Effective portion of gain (loss) on derivatives net of reclassification to interest expense |
|
| 13,888 |
|
|
| (7,060 | ) |
|
| (1,410 | ) |
Total comprehensive income |
|
| 110,697 |
|
|
| 77,896 |
|
|
| 111,667 |
|
Comprehensive income attributable to noncontrolling interest in the Operating Partnership |
|
| (508 | ) |
|
| (365 | ) |
|
| (546 | ) |
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary |
|
| — |
|
|
| 667 |
|
|
| — |
|
Comprehensive income attributable to common shareholders |
| $ | 110,189 |
|
| $ | 78,198 |
|
| $ | 111,121 |
|
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(dollars in thousands, except share data) |
| Common Stock Shares |
|
| Common Stock |
|
| Additional Paid-in Capital |
|
| Dividends in Excess of Net Income |
|
| Accumulated Other Comprehensive Income (loss) |
|
| Total Shareholders’ Equity |
| ||||||
Balance January 1, 2015 |
|
| 34,105,955 |
|
|
| 341 |
|
|
| 1,156,225 |
|
|
| (167,692 | ) |
|
| (13,005 | ) |
|
| 975,869 |
|
Net proceeds from the issuance of common stock |
|
| 2,329,911 |
|
|
| 23 |
|
|
| 210,119 |
|
|
| — |
|
|
| — |
|
|
| 210,142 |
|
Net proceeds from the issuance of common stock through Dividend Reinvestment Plan |
|
| 151,246 |
|
|
| 1 |
|
|
| 13,925 |
|
|
| — |
|
|
| — |
|
|
| 13,926 |
|
Exercise of stock options |
|
| 30,900 |
|
|
| 1 |
|
|
| 1,632 |
|
|
| — |
|
|
| — |
|
|
| 1,633 |
|
Issuance of non-vested stock |
|
| 64,244 |
|
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Earned portion of non-vested stock |
|
| — |
|
|
| — |
|
|
| 6,254 |
|
|
| — |
|
|
| — |
|
|
| 6,254 |
|
Stock option expense |
|
| — |
|
|
| — |
|
|
| 210 |
|
|
| — |
|
|
| — |
|
|
| 210 |
|
Deferred compensation outside directors |
|
| 28,417 |
|
|
| — |
|
|
| 59 |
|
|
| — |
|
|
| — |
|
|
| 59 |
|
Carrying value less than redemption value on redeemed noncontrolling interest |
|
| — |
|
|
| — |
|
|
| (80 | ) |
|
| — |
|
|
| — |
|
|
| (80 | ) |
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (3,328 | ) |
|
| — |
|
|
| (3,328 | ) |
Net income attributable to common shareholders |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 112,524 |
|
|
| — |
|
|
| 112,524 |
|
Change in fair value of derivatives |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,410 | ) |
|
| (1,410 | ) |
Dividends |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (113,484 | ) |
|
| — |
|
|
| (113,484 | ) |
Balance December 31, 2015 |
|
| 36,710,673 |
|
|
| 367 |
|
|
| 1,388,343 |
|
|
| (171,980 | ) |
|
| (14,415 | ) |
|
| 1,202,315 |
|
Net proceeds from the issuance of common stock |
|
| 9,545,000 |
|
|
| 96 |
|
|
| 934,867 |
|
|
| — |
|
|
| — |
|
|
| 934,963 |
|
Net proceeds from the issuance of common stock through Dividend Reinvestment Plan |
|
| 133,666 |
|
|
| 1 |
|
|
| 13,165 |
|
|
| — |
|
|
| — |
|
|
| 13,166 |
|
Conversion of operating partnership units to common shares |
|
| 41,862 |
|
|
| — |
|
|
| 4,795 |
|
|
| — |
|
|
| — |
|
|
| 4,795 |
|
Issuance of non-vested stock |
|
| 23,405 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Earned portion of non-vested stock |
|
| — |
|
|
| — |
|
|
| 7,216 |
|
|
| — |
|
|
| — |
|
|
| 7,216 |
|
Stock option expense |
|
| — |
|
|
| — |
|
|
| 89 |
|
|
| — |
|
|
| — |
|
|
| 89 |
|
Deferred compensation outside directors |
|
| — |
|
|
| — |
|
|
| 92 |
|
|
| — |
|
|
| — |
|
|
| 92 |
|
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 4,457 |
|
|
| — |
|
|
| 4,457 |
|
Net income attributable to common shareholders |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 85,225 |
|
|
| — |
|
|
| 85,225 |
|
Amortization of terminated hedge included in AOCI |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 458 |
|
|
| 458 |
|
Change in fair value of derivatives |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| (7,518 | ) |
|
| (7,518 | ) |
Dividends |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (156,764 | ) |
|
| — |
|
|
| (156,764 | ) |
Balance December 31, 2016 |
|
| 46,454,606 |
|
|
| 464 |
|
|
| 2,348,567 |
|
|
| (239,062 | ) |
|
| (21,475 | ) |
|
| 2,088,494 |
|
Net proceeds from the issuance of common stock through Dividend Reinvestment Plan |
|
| 199,809 |
|
|
| 2 |
|
|
| 15,632 |
|
|
| — |
|
|
| — |
|
|
| 15,634 |
|
Exercise of stock options |
|
| 1,100 |
|
|
| — |
|
|
| 43 |
|
|
| — |
|
|
| — |
|
|
| 43 |
|
Purchase of outstanding shares |
|
| (112,554 | ) |
|
| (1 | ) |
|
| (8,233 | ) |
|
| — |
|
|
| — |
|
|
| (8,234 | ) |
Issuance of non-vested stock |
|
| 51,276 |
|
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Forfeiture of non-vested stock |
|
| (42,015 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Earned portion of non-vested stock |
|
| — |
|
|
| — |
|
|
| 7,148 |
|
|
| — |
|
|
| — |
|
|
| 7,148 |
|
Stock option expense |
|
| — |
|
|
| — |
|
|
| 15 |
|
|
| — |
|
|
| — |
|
|
| 15 |
|
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (1,697 | ) |
|
| — |
|
|
| (1,697 | ) |
Net income attributable to common shareholders |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 96,365 |
|
|
| — |
|
|
| 96,365 |
|
Amortization of terminated hedge included in AOCI |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 917 |
|
|
| 917 |
|
Change in fair value of derivatives, net of reclassifications |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 12,971 |
|
|
| 12,971 |
|
Dividends |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (183,333 | ) |
|
| — |
|
|
| (183,333 | ) |
Balance December 31, 2017 |
|
| 46,552,222 |
|
| $ | 466 |
|
| $ | 2,363,171 |
|
| $ | (327,727 | ) |
| $ | (7,587 | ) |
| $ | 2,028,323 |
|
See notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
| $ | 96,809 |
|
| $ | 84,956 |
|
| $ | 113,077 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 127,485 |
|
|
| 117,081 |
|
|
| 58,506 |
|
Amortization of debt issuance costs and bond discount |
|
| 4,289 |
|
|
| 9,688 |
|
|
| 1,184 |
|
Loss (gain) on sale of storage facilities |
|
| 3,503 |
|
|
| (15,270 | ) |
|
| 494 |
|
Gain on sale of real estate |
|
| — |
|
|
| (623 | ) |
|
| — |
|
Write-off of acquired property deposits |
|
| — |
|
|
| 1,783 |
|
|
| — |
|
Equity in income of joint ventures |
|
| (3,314 | ) |
|
| (3,665 | ) |
|
| (3,405 | ) |
Distributions from unconsolidated joint venture |
|
| 7,055 |
|
|
| 5,207 |
|
|
| 4,821 |
|
Non-vested stock earned |
|
| 7,148 |
|
|
| 7,308 |
|
|
| 6,313 |
|
Stock option expense |
|
| 15 |
|
|
| 89 |
|
|
| 210 |
|
Deferred income taxes |
|
| (2,578 | ) |
|
| — |
|
|
| — |
|
Changes in assets and liabilities (excluding the effects of acquisitions): |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (1,862 | ) |
|
| 4,814 |
|
|
| (1,038 | ) |
Prepaid expenses |
|
| (162 | ) |
|
| (230 | ) |
|
| 1,132 |
|
Advances to joint ventures |
|
| (174 | ) |
|
| (294 | ) |
|
| (346 | ) |
Accounts payable and other liabilities |
|
| 10,692 |
|
|
| 18,494 |
|
|
| 5,847 |
|
Deferred revenue |
|
| (326 | ) |
|
| (3,788 | ) |
|
| (597 | ) |
Net cash provided by operating activities |
|
| 248,580 |
|
|
| 225,550 |
|
|
| 186,198 |
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of storage facilities, net of cash acquired |
|
| (21,880 | ) |
|
| (1,750,267 | ) |
|
| (280,010 | ) |
Improvements, equipment additions, and construction in progress |
|
| (83,657 | ) |
|
| (72,852 | ) |
|
| (41,739 | ) |
Net proceeds from the sale of real estate |
|
| 18,872 |
|
|
| 34,697 |
|
|
| 4,646 |
|
Investment in unconsolidated joint ventures |
|
| (69,911 | ) |
|
| (6,438 | ) |
|
| (6,151 | ) |
Property deposits |
|
| 66 |
|
|
| (1,209 | ) |
|
| (5,435 | ) |
Net cash used in investing activities |
|
| (156,510 | ) |
|
| (1,796,069 | ) |
|
| (328,689 | ) |
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from sale of common stock |
|
| 15,677 |
|
|
| 948,129 |
|
|
| 225,701 |
|
Purchase of outstanding shares |
|
| (8,234 | ) |
|
| — |
|
|
| — |
|
Proceeds from line of credit |
|
| 276,000 |
|
|
| 1,102,000 |
|
|
| 330,000 |
|
Repayment of line of credit |
|
| (424,000 | ) |
|
| (928,000 | ) |
|
| (300,000 | ) |
Proceeds from term notes, net of discount |
|
| 447,853 |
|
|
| 796,682 |
|
|
| — |
|
Repayment of term notes |
|
| (225,000 | ) |
|
| (150,000 | ) |
|
| — |
|
Debt issuance costs |
|
| (3,961 | ) |
|
| (15,273 | ) |
|
| — |
|
Settlement of forward starting interest rate swaps |
|
| — |
|
|
| (9,166 | ) |
|
| — |
|
Dividends paid - common stock |
|
| (183,711 | ) |
|
| (156,249 | ) |
|
| (113,039 | ) |
Distributions to noncontrolling interest holders |
|
| (859 | ) |
|
| (742 | ) |
|
| (555 | ) |
Redemption of operating partnership units |
|
| — |
|
|
| — |
|
|
| (1,005 | ) |
Mortgage principal payments |
|
| (353 | ) |
|
| (197 | ) |
|
| (134 | ) |
Net cash (used in) provided by financing activities |
|
| (106,588 | ) |
|
| 1,587,184 |
|
|
| 140,968 |
|
Net (decrease) increase in cash |
|
| (14,518 | ) |
|
| 16,665 |
|
|
| (1,523 | ) |
Cash at beginning of period |
|
| 23,685 |
|
|
| 7,020 |
|
|
| 8,543 |
|
Cash at end of period |
| $ | 9,167 |
|
| $ | 23,685 |
|
| $ | 7,020 |
|
Supplemental cash flow information |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of interest capitalized |
| $ | 70,924 |
|
| $ | 39,856 |
|
| $ | 35,926 |
|
| ||||||||||||
Cash paid for income taxes, net of refunds |
| $ | 1,180 |
|
| $ | 981 |
|
| $ | 1,084 |
|
See notes to consolidated financial statements.
CONSOLIDATED BALANCE SHEETS
|
| December 31, |
| |||||
(dollars in thousands, except unit data) |
| 2017 |
|
| 2016 |
| ||
Assets |
|
|
|
|
|
|
|
|
Investment in storage facilities: |
|
|
|
|
|
|
|
|
Land |
| $ | 786,628 |
|
| $ | 786,764 |
|
Building, equipment, and construction in progress |
|
| 3,534,782 |
|
|
| 3,456,544 |
|
|
|
| 4,321,410 |
|
|
| 4,243,308 |
|
Less: accumulated depreciation |
|
| (624,314 | ) |
|
| (535,704 | ) |
Investment in storage facilities, net |
|
| 3,697,096 |
|
|
| 3,707,604 |
|
Cash and cash equivalents |
|
| 9,167 |
|
|
| 23,685 |
|
Accounts receivable |
|
| 7,331 |
|
|
| 5,469 |
|
Receivable from unconsolidated joint ventures |
|
| 1,397 |
|
|
| 1,223 |
|
Investment in unconsolidated joint ventures |
|
| 133,458 |
|
|
| 67,300 |
|
Prepaid expenses |
|
| 6,757 |
|
|
| 6,649 |
|
Fair value of interest rate swap agreements |
|
| 205 |
|
|
| - |
|
Trade name |
|
| 16,500 |
|
|
| 16,500 |
|
Other assets |
|
| 4,863 |
|
|
| 29,554 |
|
Total Assets |
| $ | 3,876,774 |
|
| $ | 3,857,984 |
|
Liabilities |
|
|
|
|
|
|
|
|
Line of credit |
| $ | 105,000 |
|
| $ | 253,000 |
|
Term notes, net |
|
| 1,609,089 |
|
|
| 1,387,525 |
|
Accounts payable and accrued liabilities |
|
| 92,941 |
|
|
| 75,132 |
|
Deferred revenue |
|
| 9,374 |
|
|
| 9,700 |
|
Fair value of interest rate swap agreements |
|
| - |
|
|
| 13,015 |
|
Mortgages payable |
|
| 12,674 |
|
|
| 13,027 |
|
Total Liabilities |
|
| 1,829,078 |
|
|
| 1,751,399 |
|
Limited partners’ redeemable capital interest at redemption value (217,481 units outstanding at December 31, 2017 and December 31, 2016) |
|
| 19,373 |
|
|
| 18,091 |
|
Partners’ Capital |
|
|
|
|
|
|
|
|
General partner (467,697 and 466,721 units outstanding at December 31, 2017 and December 31, 2016, respectively) |
|
| 20,478 |
|
|
| 21,065 |
|
Limited partners (46,084,525 and 45,987,885 units outstanding at December 31, 2017 and December 31, 2016, respectively) |
|
| 2,015,432 |
|
|
| 2,088,904 |
|
Accumulated other comprehensive loss |
|
| (7,587 | ) |
|
| (21,475 | ) |
Total Controlling Partners’ Capital |
|
| 2,028,323 |
|
|
| 2,088,494 |
|
Noncontrolling interest in consolidated subsidiary |
|
| — |
|
|
| — |
|
Total Partners’ Capital |
|
| 2,028,323 |
|
|
| 2,088,494 |
|
Total Liabilities and Partners’ Capital |
| $ | 3,876,774 |
|
| $ | 3,857,984 |
|
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF OPERATIONS
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands, except per unit data) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
Rental income |
| $ | 485,303 |
|
| $ | 428,121 |
|
| $ | 338,435 |
|
Other operating income |
|
| 44,447 |
|
|
| 34,487 |
|
|
| 28,167 |
|
Total operating revenues |
|
| 529,750 |
|
|
| 462,608 |
|
|
| 366,602 |
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property operations and maintenance |
|
| 122,794 |
|
|
| 103,388 |
|
|
| 81,915 |
|
Real estate taxes |
|
| 57,663 |
|
|
| 47,876 |
|
|
| 36,563 |
|
General and administrative |
|
| 50,031 |
|
|
| 43,103 |
|
|
| 38,659 |
|
Acquisition costs |
|
| - |
|
|
| 29,542 |
|
|
| 2,991 |
|
Write-off of acquired property deposits |
|
| - |
|
|
| 1,783 |
|
|
| - |
|
Operating leases of storage facilities |
|
| 424 |
|
|
| - |
|
|
| 683 |
|
Depreciation and amortization |
|
| 127,485 |
|
|
| 117,081 |
|
|
| 58,506 |
|
Total operating expenses |
|
| 358,397 |
|
|
| 342,773 |
|
|
| 219,317 |
|
Income from operations |
|
| 171,353 |
|
|
| 119,835 |
|
|
| 147,285 |
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
| (74,362 | ) |
|
| (47,175 | ) |
|
| (37,124 | ) |
Interest expense – bridge financing commitment fee |
|
| - |
|
|
| (7,329 | ) |
|
| - |
|
Interest income |
|
| 7 |
|
|
| 67 |
|
|
| 5 |
|
(Loss) gain on sale of storage facilities |
|
| (3,503 | ) |
|
| 15,270 |
|
|
| (494 | ) |
Gain on sale of real estate |
|
| - |
|
|
| 623 |
|
|
| - |
|
Equity in income of joint ventures |
|
| 3,314 |
|
|
| 3,665 |
|
|
| 3,405 |
|
Net income |
|
| 96,809 |
|
|
| 84,956 |
|
|
| 113,077 |
|
Net income attributable to noncontrolling interest in the Operating Partnership |
|
| (444 | ) |
|
| (398 | ) |
|
| (553 | ) |
Net loss attributable to noncontrolling interest in consolidated subsidiary |
|
| - |
|
|
| 667 |
|
|
| - |
|
Net income attributable to common unitholders |
| $ | 96,365 |
|
| $ | 85,225 |
|
| $ | 112,524 |
|
Earnings per common unit attributable to common unitholders - basic |
| $ | 2.08 |
|
| $ | 1.97 |
|
| $ | 3.18 |
|
Earnings per common unit attributable to common unitholders - diluted |
| $ | 2.07 |
|
| $ | 1.96 |
|
| $ | 3.16 |
|
Net income attributable to general partner |
| $ | 968 |
|
| $ | 856 |
|
| $ | 1,131 |
|
Net income attributable to limited partners |
|
| 95,397 |
|
|
| 84,369 |
|
|
| 111,393 |
|
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Net income |
| $ | 96,809 |
|
| $ | 84,956 |
|
| $ | 113,077 |
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
Effective portion of gain (loss) on derivatives net of reclassification to interest expense |
|
| 13,888 |
|
|
| (7,060 | ) |
|
| (1,410 | ) |
Total comprehensive income |
|
| 110,697 |
|
|
| 77,896 |
|
|
| 111,667 |
|
Comprehensive income attributable to noncontrolling interest in the Operating Partnership |
|
| (508 | ) |
|
| (365 | ) |
|
| (546 | ) |
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary |
|
| — |
|
|
| 667 |
|
|
| — |
|
Comprehensive income attributable to common unitholders |
| $ | 110,189 |
|
| $ | 78,198 |
|
| $ | 111,121 |
|
See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF PARTNERS’ CAPITAL
(dollars in thousands) |
| Life Storage Holdings, Inc. General Partner |
|
| Life Storage, Inc. Limited Partner |
|
| Accumulated Other Comprehensive Income (loss) |
|
| Total Controlling Partners’ Capital |
| ||||
Balance January 1, 2015 |
|
| 9,895 |
|
|
| 978,979 |
|
|
| (13,005 | ) |
|
| 975,869 |
|
Net proceeds from the issuance of Partnership Units |
|
| 2,123 |
|
|
| 208,019 |
|
|
| — |
|
|
| 210,142 |
|
Net proceeds from the issuance of Partnership Units through Dividend Reinvestment Plan |
|
| 139 |
|
|
| 13,787 |
|
|
| — |
|
|
| 13,926 |
|
Exercise of stock options |
|
| 16 |
|
|
| 1,617 |
|
|
| — |
|
|
| 1,633 |
|
Earned portion of non-vested stock |
|
| 63 |
|
|
| 6,191 |
|
|
| — |
|
|
| 6,254 |
|
Stock option expense |
|
| 2 |
|
|
| 208 |
|
|
| — |
|
|
| 210 |
|
Deferred compensation outside directors |
|
| — |
|
|
| 59 |
|
|
| — |
|
|
| 59 |
|
Carrying value less than redemption value on redeemed noncontrolling interest |
|
| (10 | ) |
|
| (70 | ) |
|
| — |
|
|
| (80 | ) |
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| (3,328 | ) |
|
| — |
|
|
| (3,328 | ) |
Net income attributable to common unitholders |
|
| 1,131 |
|
|
| 111,393 |
|
|
| — |
|
|
| 112,524 |
|
Change in fair value of derivatives |
|
| (14 | ) |
|
| 14 |
|
|
| (1,410 | ) |
|
| (1,410 | ) |
Distributions |
|
| (1,140 | ) |
|
| (112,344 | ) |
|
| — |
|
|
| (113,484 | ) |
Balance December 31, 2015 |
|
| 12,205 |
|
|
| 1,204,525 |
|
|
| (14,415 | ) |
|
| 1,202,315 |
|
Net proceeds from the issuance of Partnership Units |
|
| 9,349 |
|
|
| 925,614 |
|
|
| — |
|
|
| 934,963 |
|
Net proceeds from the issuance of Partnership Units through Dividend Reinvestment Plan |
|
| 132 |
|
|
| 13,034 |
|
|
| — |
|
|
| 13,166 |
|
Conversion of operating partnership units to common shares |
|
| — |
|
|
| 4,795 |
|
|
| — |
|
|
| 4,795 |
|
Issuance of operating partnership units |
|
| 95 |
|
|
| (95 | ) |
|
| — |
|
|
| — |
|
Earned portion of non-vested stock |
|
| 72 |
|
|
| 7,144 |
|
|
| — |
|
|
| 7,216 |
|
Stock option expense |
|
| 1 |
|
|
| 88 |
|
|
| — |
|
|
| 89 |
|
Deferred compensation outside directors |
|
| 1 |
|
|
| 91 |
|
|
| — |
|
|
| 92 |
|
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| 4,457 |
|
|
| — |
|
|
| 4,457 |
|
Net income attributable to common unitholders |
|
| 856 |
|
|
| 84,369 |
|
|
| — |
|
|
| 85,225 |
|
Amortization of terminated hedge included in AOCI |
|
| 4 |
|
|
| (4 | ) |
|
| 458 |
|
|
| 458 |
|
Change in fair value of derivatives |
|
| (75 | ) |
|
| 75 |
|
|
| (7,518 | ) |
|
| (7,518 | ) |
Distributions |
|
| (1,575 | ) |
|
| (155,189 | ) |
|
| — |
|
|
| (156,764 | ) |
Balance December 31, 2016 |
|
| 21,065 |
|
|
| 2,088,904 |
|
|
| (21,475 | ) |
|
| 2,088,494 |
|
Net proceeds from the issuance of Partnership Units through Dividend Reinvestment Plan |
|
| 157 |
|
|
| 15,477 |
|
|
| — |
|
|
| 15,634 |
|
Exercise of stock options |
|
| 1 |
|
|
| 42 |
|
|
|
|
|
|
| 43 |
|
Purchase of outstanding units |
|
| (82 | ) |
|
| (8,152 | ) |
|
| — |
|
|
| (8,234 | ) |
Issuance of non-vested stock |
|
| 1 |
|
|
| (1 | ) |
|
| — |
|
|
| — |
|
Forfeiture of non-vested stock |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Earned portion of non-vested stock |
|
| 71 |
|
|
| 7,077 |
|
|
| — |
|
|
| 7,148 |
|
Stock option expense |
|
| — |
|
|
| 15 |
|
|
| — |
|
|
| 15 |
|
Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units |
|
| — |
|
|
| (1,697 | ) |
|
| — |
|
|
| (1,697 | ) |
Net income attributable to common unitholders |
|
| 968 |
|
|
| 95,397 |
|
|
| — |
|
|
| 96,365 |
|
Amortization of terminated hedge included in AOCI |
|
| 9 |
|
|
| (9 | ) |
|
| 917 |
|
|
| 917 |
|
Change in fair value of derivatives, net of reclassifications |
|
| 130 |
|
|
| (130 | ) |
|
| 12,971 |
|
|
| 12,971 |
|
Distributions |
|
| (1,842 | ) |
|
| (181,491 | ) |
|
| — |
|
|
| (183,333 | ) |
Balance December 31, 2017 |
| $ | 20,478 |
|
| $ | 2,015,432 |
|
| $ | (7,587 | ) |
| $ | 2,028,323 |
|
See notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| Year Ended December 31, |
| |||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
| $ | 96,809 |
|
| $ | 84,956 |
|
| $ | 113,077 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 127,485 |
|
|
| 117,081 |
|
|
| 58,506 |
|
Amortization of debt issuance costs and bond discount |
|
| 4,289 |
|
|
| 9,688 |
|
|
| 1,184 |
|
Loss (gain) on sale of storage facilities |
|
| 3,503 |
|
|
| (15,270 | ) |
|
| 494 |
|
Gain on sale of real estate |
|
| - |
|
|
| (623 | ) |
|
| — |
|
Write-off of acquired property deposits |
|
| - |
|
|
| 1,783 |
|
|
| — |
|
Equity in income of joint ventures |
|
| (3,314 | ) |
|
| (3,665 | ) |
|
| (3,405 | ) |
Distributions from unconsolidated joint venture |
|
| 7,055 |
|
|
| 5,207 |
|
|
| 4,821 |
|
Non-vested stock earned |
|
| 7,148 |
|
|
| 7,308 |
|
|
| 6,313 |
|
Stock option expense |
|
| 15 |
|
|
| 89 |
|
|
| 210 |
|
Deferred income taxes |
|
| (2,578 | ) |
|
| — |
|
|
| — |
|
Changes in assets and liabilities (excluding the effects of acquisitions): |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
| (1,862 | ) |
|
| 4,814 |
|
|
| (1,038 | ) |
Prepaid expenses |
|
| (162 | ) |
|
| (230 | ) |
|
| 1,132 |
|
Advances to joint ventures |
|
| (174 | ) |
|
| (294 | ) |
|
| (346 | ) |
Accounts payable and other liabilities |
|
| 10,692 |
|
|
| 18,494 |
|
|
| 5,847 |
|
Deferred revenue |
|
| (326 | ) |
|
| (3,788 | ) |
|
| (597 | ) |
Net cash provided by operating activities |
|
| 248,580 |
|
|
| 225,550 |
|
|
| 186,198 |
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of storage facilities, net of cash acquired |
|
| (21,880 | ) |
|
| (1,750,267 | ) |
|
| (280,010 | ) |
Improvements, equipment additions, and construction in progress |
|
| (83,657 | ) |
|
| (72,852 | ) |
|
| (41,739 | ) |
Net proceeds from the sale of real estate |
|
| 18,872 |
|
|
| 34,697 |
|
|
| 4,646 |
|
Investment in unconsolidated joint ventures |
|
| (69,911 | ) |
|
| (6,438 | ) |
|
| (6,151 | ) |
Property deposits |
|
| 66 |
|
|
| (1,209 | ) |
|
| (5,435 | ) |
Net cash used in investing activities |
|
| (156,510 | ) |
|
| (1,796,069 | ) |
|
| (328,689 | ) |
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net proceeds from sale of partnership units |
|
| 15,677 |
|
|
| 948,129 |
|
|
| 225,701 |
|
Purchase of outstanding units |
|
| (8,234 | ) |
|
| — |
|
|
| — |
|
Proceeds from line of credit |
|
| 276,000 |
|
|
| 1,102,000 |
|
|
| 330,000 |
|
Repayment of line of credit |
|
| (424,000 | ) |
|
| (928,000 | ) |
|
| (300,000 | ) |
Proceeds from term notes, net of discount |
|
| 447,853 |
|
|
| 796,682 |
|
|
| — |
|
Repayment of term notes |
|
| (225,000 | ) |
|
| (150,000 | ) |
|
| — |
|
Debt issuance costs |
|
| (3,961 | ) |
|
| (15,273 | ) |
|
| — |
|
Settlement of forward starting interest rate swaps |
|
| — |
|
|
| (9,166 | ) |
|
| — |
|
Distributions to unitholders |
|
| (183,711 | ) |
|
| (156,249 | ) |
|
| (113,039 | ) |
Distributions to noncontrolling interest holders |
|
| (859 | ) |
|
| (742 | ) |
|
| (555 | ) |
Redemption of operating partnership units |
|
| — |
|
|
| — |
|
|
| (1,005 | ) |
Mortgage principal payments |
|
| (353 | ) |
|
| (197 | ) |
|
| (134 | ) |
Net cash (used in) provided by financing activities |
|
| (106,588 | ) |
|
| 1,587,184 |
|
|
| 140,968 |
|
Net (decrease) increase in cash |
|
| (14,518 | ) |
|
| 16,665 |
|
|
| (1,523 | ) |
Cash at beginning of period |
|
| 23,685 |
|
|
| 7,020 |
|
|
| 8,543 |
|
Cash at end of period |
| $ | 9,167 |
|
| $ | 23,685 |
|
| $ | 7,020 |
|
Supplemental cash flow information |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest, net of interest capitalized |
| $ | 70,924 |
|
| $ | 39,856 |
|
| $ | 35,926 |
|
Cash paid for income taxes, net of refunds |
| $ | 1,180 |
|
| $ | 981 |
|
| $ | 1,084 |
|
See notes to consolidated financial statements.
LIFE STORAGE, INC. AND LIFE STORAGE LP
DECEMBER 31, 2009
2017
1. ORGANIZATION
The Parent Company, which Sovran Self Storage, Inc. (the “Company”),operates as a self-administered and self-managed real estate investment trust (“REIT”(a “REIT”), conducts substantially all of its businesswas formed on April 19, 1995 to own and owns substantially all of its assets.operate self-storage facilities throughout the United States. On June 26, 1995, the Parent Company commenced operations through the Operating Partnership, effective with the completion of its initial public offering. 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 December 31, 2009,2017, we had an ownership interest in, andand/or managed 381706 self-storage properties in 2428 states under the name Uncle Bob’s SelfLife Storage®. ®. Among our 381706 self-storage properties are 2798 properties that we manage for a consolidatedunconsolidated joint venture of which we are a majority owner and 25ventures (See Note 11), 42 properties that we manage for an unconsolidated joint venture of whichand have no ownership interest, and two properties that we are a 20% owner. Approximately 42%lease. During 2017, approximately 23% and 13% of the Operating Partnership’sCompany’s revenue iswas derived from stores in the states of Texas and Florida.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of December 31, 2009, the Company was a 98.5% economic ownerPresentation : All of the Company’s assets are owned by, and all its operations are conducted through the Operating Partnership and controls it through SovranPartnership. Life Storage Holdings, Inc. (“Holdings”), a wholly ownedwholly-owned subsidiary of the Parent Company incorporated in Delaware and(“Holdings”), is the sole general partner of the Operating Partnership (this structurePartnership; the Parent Company is commonly referred to as an umbrella partnership REIT or “UPREIT”). The board of directors of Holdings, the members of which are also members of the Board of Directors of the Company, manages the affairsa limited partner of the Operating Partnership, by directingand, through its ownership of Holdings and its limited partnership interest, controls the affairsoperations of Holdings.the Operating Partnership, holding a 99.5% ownership interest therein as of December 31, 2017. The Company’s limited partner and indirect general partnerremaining ownership interests in the Operating Partnership entitle it to share in cash distributions from, and in the profits and losses(the “Units”) are held by certain former owners of assets acquired by the Operating Partnership in proportion to its ownership interest therein and entitle the Company to vote on all matters requiring a vote of the limited partners.
We consolidate all wholly owned subsidiaries. Partially owned subsidiaries and 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 (the Parent Company’s taxable REIT subsidiary), 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 for which we have significant influence over are reportedaccounted 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 made an additional investment of $6.1 million in Locke Sovran I, LLC that increased the Operating Partnership’s ownership from approximately 70% to 100%.
36
(Dollars in thousands) | 2009 | 2008 | ||||||
Beginning balance noncontrolling interests — consolidated joint venture | $ | 13,082 | $ | 16,783 | ||||
Carrying value of Locke Sovran I, LLC purchased in 2008 for $6.1 million | — | (3,701 | ) | |||||
Net income attributable to noncontrolling interests — consolidated joint venture | 1,360 | 1,563 | ||||||
Distributions | (1,360 | ) | (1,563 | ) | ||||
Ending balance noncontrolling interests — consolidated joint venture | $ | 13,082 | $ | 13,082 | ||||
(Dollars in thousands) | 2009 | 2008 | ||||||
Beginning balance limited partners’ redeemable capital interest | $ | 15,118 | $ | 16,951 | ||||
Redemption of Operating Partnership Units | — | (115 | ) | |||||
Redemption value in excess of carrying value | — | 70 | ||||||
Net income attributable to limited partners’ redeemable capital interests | 378 | 721 | ||||||
Distributions | (647 | ) | (1,070 | ) | ||||
Adjustment to redemption value | 156 | (1,439 | ) | |||||
Ending balance limited partners’ redeemable capital interest | $ | 15,005 | $ | 15,118 | ||||
37
(Dollars in thousands) |
| 2017 |
|
| 2016 |
| ||
Beginning balance |
| $ | 18,091 |
|
| $ | 18,171 |
|
Redemption of units |
|
| — |
|
|
| (4,795 | ) |
Issuance of units |
|
| — |
|
|
| 9,516 |
|
Net income attributable to noncontrolling interests in Operating Partnership |
|
| 444 |
|
|
| 398 |
|
Distributions |
|
| (859 | ) |
|
| (742 | ) |
Adjustment to redemption value |
|
| 1,697 |
|
|
| (4,457 | ) |
Ending balance |
| $ | 19,373 |
|
| $ | 18,091 |
|
In 2016 the Operating Partnership issued 90,477 Units with a fair value of $9.5 million to acquire self-storage properties. The fair value of the Units on the dates of issuance was determined based upon the fair market value of the Company’s common stock on those dates.
For the Year Ended December 31, 2008: | ||||||||||||
As Previously | ||||||||||||
Reported adjusted | ||||||||||||
for discontinued | ||||||||||||
operations | Adjustments | As Adjusted | ||||||||||
Net income | 38,120 | 1,563 | 39,683 | |||||||||
Net income attributable to noncontrolling interest | — | 1,563 | 1,563 |
For the Year Ended December 31, 2007: | ||||||||||||
As Previously | ||||||||||||
Reported adjusted | ||||||||||||
for discontinued | ||||||||||||
operations | Adjustments | As Adjusted | ||||||||||
Net income | 39,997 | 1,848 | 41,845 | |||||||||
Net income attributable to noncontrolling interest | — | 1,848 | 1,848 |
December 31, 2008: | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
Minority interest — consolidated joint venture | 13,082 | (13,082 | ) | — | ||||||||
Noncontrolling interest — consolidated joint venture | — | 13,082 | 13,082 | |||||||||
Total partners’ capital | 491,947 | 13,082 | 505,029 | |||||||||
For the Year Ended December 31, 2008: | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
Net income | 38,120 | 1,563 | 39,683 | |||||||||
Minority interest | 1,563 | (1,563 | ) | — | ||||||||
For the Year Ended December 31, 2007: | ||||||||||||
As Previously Reported | Adjustments | As Adjusted | ||||||||||
Net income | 39,997 | 1,848 | 41,845 | |||||||||
Minority interest | 1,848 | (1,848 | ) | — |
Cash and Cash Equivalents: The Operating PartnershipCompany considers all highly liquid investments purchased with maturities of three months or less to be cash equivalents.
Accounts Receivable : Accounts receivable are composed of trade and other receivables recorded at billed amounts and do not bear interest. The cash balance includes $2.3allowance for doubtful accounts is the Company’s best estimate of the amount of probable uncollectible amounts in the Company’s existing accounts receivable. The Company determines the allowance based on a number of factors, including experience, credit worthiness of customers, and current market and economic conditions. The Company reviews the allowance for doubtful accounts on a regular basis. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The allowance for doubtful accounts is recorded as a reduction of accounts receivable and amounted to $0.7 million and $3.8$1.0 million respectively, held in escrow for encumbered properties at December 31, 20092017 and 2008.
Revenue and Expense Recognition: Rental income is recognized when earned pursuant to month-to-month leases for storage space. Promotional discounts are recognized as a reduction to rental income over the promotional period, which is generally during the first month of occupancy. Rental income received prior to the start of the rental period is included in deferred revenue. Equity in earnings of real estate joint ventures that we have significant influence over is recognized based on our ownership interest in the earnings of these entities.
Cost of operations, general and administrative expense, interest expense and advertising costs are expensed as incurred. For the years ended December 31, 2009, 2008,2017, 2016, and 2007,2015, advertising costs were $1.9$12.3 million, $1.4$9.5 million, and $1.4$7.3 million, respectively. The Operating PartnershipCompany accrues property taxes based on estimates and historical trends. If these estimates are incorrect, the timing and amount of expense recognition would be affected.
Other Operating Income: Consists Other operating income consists primarily of sales of storage-related merchandise (locks and packing supplies), insurance commissions,administrative fees, incidental truck rentals, and management and acquisition fees from unconsolidated joint ventures.
Investment in Storage Facilities: Storage facilities are recorded at cost. The purchase price of acquired facilities is allocated to land, land improvements, building, equipment, and in-place customer leases based on the relative fair value of each component. component or based on the fair value of each component if accounted for as a business combination. The fair values of land are determined based upon comparable market sales information. The fair values of buildings are determined based upon estimates of current replacement costs adjusted for depreciation on the properties. For the years ended December 31, 2016 and 2015, $29.5 million and $3.0 million of acquisition related costs were incurred and expensed, respectively. There were no acquisition related costs expensed in 2017.
Depreciation is computed using the straight-line method over estimated useful lives of forty years for
38
Whenever events or changes in circumstances indicate that the basiscarrying value of the Operating Partnership’sCompany’s property may not be recoverable, the Operating Partnership’sCompany’s policy is to assess any impairmentcomplete an assessment of value.impairment. Impairment is evaluated based upon comparing the sum of the property’s expected undiscounted future cash flows to the carrying value of the property, on a property by property basis.property. If the sum of the undiscounted cash flowflows is less than the carrying amount of the property, an impairment loss is recognized for theany amount by which the carrying amount of the asset exceeds the fair value of the asset. AtFor the years ended December 31, 20092017, 2016, and 2008,2015, no assets hadhave been determined to be impaired under this policypolicy.
In general, sales of real estate and accordingly,related profits / losses are recognized when all consideration has changed hands and risks and rewards of ownership have been transferred.
Trade Name : The Company’s trade name, which was acquired in 2016, has an indefinite life and is not amortized but is reviewed for impairment annually or more frequently when facts and circumstances indicate that the carrying value of the Company’s trade name may not be recoverable. We may elect to perform a qualitative assessment that considers economic, industry and company-specific factors as part of our annual test. If, after completing this policy had no impact onassessment, it is determined that it is more likely than not that the Operating Partnership’s financial position or resultsfair value of operations.
Quantitative testing requires a comparison of the fair value of the trade name to its carrying value. We use a discounted cash flow analysis under the relief-from-royalty method to estimate the fair value of the trade name. This method incorporates various assumptions, including projected revenue growth rates, the terminal growth rate, the royalty rate to be applied, and the discount rate utilized. If the carrying value exceeds the fair value, the trade name is considered impaired to the extent that the carrying value exceeds the fair value. We did not record any impairment in 2017.
Other Assets: Included in other assets are net loan acquisition costs, a note receivable,cash balances held in escrow for encumbered properties, property deposits and the value placed on in-place customer leases at the time of acquisition. The loan acquisition costs were $5.9 million and $6.8 millionCash held in escrow for encumbered properties at December 31, 2009,2017 and 2008,2016, totaled $292,000 and $238,000, respectively. Accumulated amortization on the loan acquisition costs was approximately $3.4 million and $2.5 million at December 31, 2009, and 2008, respectively. Loan acquisition costs are amortized over the terms of the related debt. The note receivable of $2.8 million represents a note from certain investors of Locke Sovran II, LLC. The note bears interest at LIBOR plus 2.4% and matures upon the dissolution of Locke Sovran II, LLC. There were no propertyProperty deposits at December 31, 20092017 and $0.12016 were $0.9 million at December 31, 2008.
The Operating PartnershipCompany allocates a portion of the purchase price of acquisitions to in-place customer leases. The methodology used to determine the fair value of in-place customer leases is based on the Operating Partnership’s experience with customer turnover.described in Note 8. The Operating PartnershipCompany amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). At December 31, 2009,
Investment in Unconsolidated Joint Ventures : The Company’s investment in unconsolidated joint ventures where the gross carrying amountCompany has significant influence but not control, and joint ventures which are variable interest entities in which the Company is not the primary beneficiary, are recorded under the equity method of in-place customer leases was $5.4 millionaccounting in the accompanying consolidated financial statements. Under the equity method, the Company’s investment in unconsolidated joint ventures is stated at cost and the accumulated amortization was $5.4 million
Accounts Payable and Accrued Liabilities: Accounts payable and accrued liabilities consists primarily of trade payables, accrued interest, and property tax accruals. The Operating Partnership accrues property tax expense based on estimates and historical trends. Actual expense could differ from these estimates.
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 at least 90% of its taxable income to its shareholders and complies with certain other requirements. Accordingly, no provision
The Company has been madeelected to treat one of its subsidiaries as a taxable REIT subsidiary. In general, the Company’s taxable REIT subsidiary 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 taxestaxes. 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 benefit of $1.0 million in the accompanying financial statements. On an aggregate basis, the Operating Partnership’s reported amountsyear ended December 31, 2017 and federal and state income tax expense of net assets exceeds the tax basis by approximately $73$0.4 million and $74$1.3 million atduring the years ended December 31, 20092016 and 2008, respectively.
The Tax Cuts and Jobs Act (the “TCJA”) was passed by Congress on December 20, 2017 and signed into law by President Trump on December 22, 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, will apply to income earned by our taxable REIT subsidiary. As a result, the deferred tax assets and deferred tax liabilities of our taxable REIT subsidiary are remeasured at December 31, 2017 using the 21% corporate income tax rate. The impact of the remeasurement is not material to the Company.
Derivative Financial Instruments: The Operating PartnershipCompany accounts for derivatives in accordance with ASC Topic 815 “Derivatives and Hedging ”Hedging”, which requires companies to carry all derivatives on the balance sheet at fair value. The Operating PartnershipCompany determines the fair value of derivatives by reference to quoted market prices.using an income approach. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The Operating Partnership’sCompany’s use of derivative instruments is limited to cash flow hedges of certain interest rate risks.
39
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This guidance revises existing practice related to accounting for leases under ASC 840 Leases 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 will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. 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 will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current 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. ASU 2016-02 is effective for fiscal years and interim periods, within those years, beginning after NovemberDecember 15, 2009, with early2018. Early adoption prohibited.is permitted for all entities, thought the Company does not expect to adopt ASU 2016-02 early. The Operating PartnershipCompany is currently evaluating the impact thatof adopting the adoption of the revised guidance will havenew leases standard on its consolidated financial statements.
In May 2009,March 2016, the FASB issued accounting guidance now codifiedASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”. ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. ASU 2016-06 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2016. The implementation of this update did not result in any changes to our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. ASU 2016-07 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2016. The implementation of this update did not result in any changes to our consolidated financial statements.
In March 2016, the FASB ASC Topic 855, “Subsequent Events”. FASB ASC Topic 855 establishes general standards forissued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and disclosureclassification on the statement of eventscash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company adopted the guidance in ASU 2016-09 effective January 1, 2017 and has elected to recognize forfeitures of share-based payments as they occur beginning in 2017. The implementation of this update did not result in any material changes to our consolidated financial statements.
In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” in an effort to reduce existing diversity in practice related to the classification of certain cash receipts and cash payments on the statements of cash flows. The guidance addresses the classification of cash flows related to, among other things, distributions received from equity method investees. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The implementation of this update as of January 1, 2018 did not have a material impact on the Company’s financial statements.
In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash (a Consensus of the Emerging Issues Task Force)” which requires restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption of this update is permitted. Other than modifications to the statement of cash flows, the adoption of ASU 2016-18 is not expected to have a material impact on the Company’s consolidated financial statements.
In January 2017, the FASB issued ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business” which is intended to assist entities with evaluating whether a set of transferred assets and activities is a business. The amendments in this update are effective for annual periods beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption of this update is permitted and the Company adopted this update effective January 1, 2017. The adoption of ASU 2017-01 has potential impact on the accounting treatment of properties acquired subsequent to the date of adoption. Property acquisitions treated as business combinations under previous guidance may no longer be treated as business combinations subsequent to the adoption of ASU 2017-01. To the extent that occurproperties that we acquire do not meet the definition of a “business” under ASU 2017-01, future acquisitions of properties may be accounted for as asset acquisitions resulting in the capitalization of acquisition costs incurred in connection with these transactions and the allocation of the purchase price and related acquisition costs to the assets acquired based on their relative fair values. There were no properties acquired in 2017 that would have been accounted for as business combinations prior to the adoption of ASU 2017-01.
In February 2017, the FASB issued ASU 2017-05, “Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets” which clarifies the scope and application of ASC 610-20 on the sale or transfer of nonfinancial assets, including real estate, and in substance nonfinancial assets to noncustomers, including partial sales. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The implementation of this update as of January 1, 2018 could potentially impact the balance sheet date but beforeaccounting treatment of future real estate sales of the Company if such sales are to parties who are also customers of the Company.
In May 2017, the FASB issued ASU 2017-09, “Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting” which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The implementation of this update as of January 1, 2018 did not have a material impact on the Company’s financial statements, however, all future changes to the terms or conditions of any of the Company’s share-based payment awards are availablesubject to the guidance in ASU 2017-09 and could potentially be issued (“subsequent events”). More specifically, FASB ASC Topic 855 sets forthaccounted for differently than under the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition in the financial statements, identifies the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements and the disclosures that should be made about events or transactions that occur after the balance sheet date. FASB ASC Topic 855 provides largely the sameprevious guidance on subsequent events which previously existed only in auditing literature. We adopted FASB ASC Topic 855 on April 1, 2009. We have evaluated subsequent events through February 26, 2010, the date this quarterly report on Form 10-K was filed with the U.S. Securities and Exchange Commission. See Note 17 for further information regarding our evaluation of subsequent events.
Stock-Based Compensation: Effective January 1, 2006, The Company accounts for stock-based compensation under the Operating Partnership adoptedprovisions of ASC Topic 718, “Compensation —- Stock Compensation” (formerly, FASB Statement 123R) and uses the modified-prospective method. Under the modified-prospective method, the Operating Partnership ”. The Company recognizes compensation cost in theits financial statements issued subsequent to January 1, 2006 for all share based payments granted, modified, or settled afterduring the date of adoption as well as for anyperiod. For awards that were granted prior towith graded vesting, compensation cost is recognized on a straight-line basis over the adoption date for which the requisite service period has not been completed as of the adoption date.related vesting period.
The Operating PartnershipCompany recorded compensation expense (included in general and administrative expense) of $321,000, $279,000$15,000, $89,000, and $183,000$210,000, respectively, related to stock options and $1.4$7.1 million, $1.4$7.2 million, and $1.2$6.3 million, respectively, related to amortization of non-vested stock grants for the years ended December 31, 2009, 20082017, 2016, and 2007, respectively.2015. The Operating PartnershipCompany uses the Black-Scholes Merton option pricing model to estimate the fair value of stock options granted subsequent to the adoption of ASC Topic 718. The application of this pricing model involves assumptions that are judgmental and sensitive in the determination of compensation expense. The weighted average for key assumptions used in determining the fair value of options granted during 2009 follows:
Weighted Average | Range | |||||||
Expected life (years) | 4.50 | 4.50 | ||||||
Risk free interest rate | 2.04 | % | 1.65 — 2.63 | % | ||||
Expected volatility | 38.65 | % | 36.40% — 41.10 | % | ||||
Expected dividend yield | 9.43 | % | 5.40% — 12.60 | % | ||||
Fair value | $ | 2.73 | $ | 1.59 — $7.35 |
To determine expected volatility, the Operating PartnershipCompany uses historical volatility based on daily closing
40
During 2017, 2016, and 2015, the Company issued performance based non-vested stock awards to certain executives. The fair value for the performance based awards in 2017, 2016 and 2015 was estimated at the time the awards were granted using a Monte Carlo pricing model applying the following weighted-average assumptions:
|
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Expected life (years) |
|
| 3.0 |
|
|
| 3.0 |
|
|
| 3.0 |
|
Risk free interest rate |
|
| 1.79 | % |
|
| 1.53 | % |
|
| 1.33 | % |
Expected volatility |
|
| 19.92 | % |
|
| 19.37 | % |
|
| 18.88 | % |
Fair value |
| $ | 82.06 |
|
| $ | 80.24 |
|
| $ | 101.43 |
|
The Monte Carlo pricing model was not used to value any other 2017, 2016, and 2015 non-vested shares granted as no market conditions were present in these awards. The value of these other non-vested shares was equal to the stock price on the date of grant.
Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
3. EARNINGS PER SHARE AND EARNINGS PER UNIT
The Operating PartnershipCompany reports earnings per share and earnings per unit data in accordance with ASC Topic 260, “Earnings Per Share.” Effective January 1, 2009, FASB .” Under ASC Topic 260 was updated for the issuance of FASB Staff Position (“FSP”) EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities", or FSP EITF 03-6-1, with transition guidance included in FASB ASC Topic 260-10-65-2. Under FSP EITF 03-6-1,260-10, 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-unitearnings-per-share pursuant to the two-class method. The codification update requires retrospective restatement of all prior period earnings per unit data to conform with its provisions. TheParent Company and the Operating Partnership hashave calculated its 2009their basic and diluted earnings per share/unit using the two-class method.
The Operating Partnership has also calculated itsfollowing table sets forth the computation of basic and diluted earnings per unit amounts for 2008 and 2007 undercommon share utilizing the two-class method and it resulted in no change in basic and diluted earnings per unit as previously reported. method.
|
| Year Ended December 31, |
| |||||||||
(Amounts in thousands, except per share data) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common shareholders |
| $ | 96,365 |
|
| $ | 85,225 |
|
| $ | 112,524 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic earnings per share - weighted average shares |
|
| 46,373 |
|
|
| 43,184 |
|
|
| 35,379 |
|
Effect of Dilutive Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock options and non-vested stock |
|
| 117 |
|
|
| 223 |
|
|
| 222 |
|
Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversion |
|
| 46,490 |
|
|
| 43,407 |
|
|
| 35,601 |
|
Basic Earnings per common share attributable to common shareholders |
| $ | 2.08 |
|
| $ | 1.97 |
|
| $ | 3.18 |
|
Diluted Earnings per common share attributable to common shareholders |
| $ | 2.07 |
|
| $ | 1.96 |
|
| $ | 3.16 |
|
The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.
|
| Year Ended December 31, |
| |||||||||
(Amounts in thousands, except per unit data) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to common unitholders |
| $ | 96,365 |
|
| $ | 85,225 |
|
| $ | 112,524 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for basic earnings per unit - weighted average units |
|
| 46,373 |
|
|
| 43,184 |
|
|
| 35,379 |
|
Effect of Dilutive Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Stock options and non-vested stock |
|
| 117 |
|
|
| 223 |
|
|
| 222 |
|
Denominator for diluted earnings per unit - adjusted weighted average units and assumed conversion |
|
| 46,490 |
|
|
| 43,407 |
|
|
| 35,601 |
|
Basic Earnings per common unit attributable to common unitholders |
| $ | 2.08 |
|
| $ | 1.97 |
|
| $ | 3.18 |
|
Diluted Earnings per common unit attributable to common unitholders |
| $ | 2.07 |
|
| $ | 1.96 |
|
| $ | 3.16 |
|
(Amounts in thousands, | Year Ended December 31, | |||||||||||
except per unit data) | 2009 | 2008 | 2007 | |||||||||
Numerator: | ||||||||||||
Net income from continuing operations attributable to common unitholders | $ | 21,078 | $ | 36,240 | $ | 37,080 | ||||||
Denominator: | ||||||||||||
Denominator for basic earnings per unit - weighted average units | 24,207 | 22,184 | 21,381 | |||||||||
Effect of Dilutive Securities: | ||||||||||||
Stock options and warrants and non-vested stock | 10 | 21 | 49 | |||||||||
Denominator for diluted earnings per unit - adjusted weighted average units and assumed conversion | 24,217 | 22,205 | 21,430 | |||||||||
Basic Earnings per Common Unit from continuing operations attributable to common unitholders | $ | 0.87 | $ | 1.63 | $ | 1.73 | ||||||
Basic Earnings per Common Unit attributable to common unitholders | $ | 0.84 | $ | 1.72 | $ | 1.81 | ||||||
Diluted Earnings per Common Unit from continuing operations attributable to common unitholders | $ | 0.87 | $ | 1.63 | $ | 1.73 | ||||||
Diluted Earnings per Common Unit attributable to common unitholders | $ | 0.84 | $ | 1.72 | $ | 1.81 |
Not included in the effect of dilutive securities above are 333,07213,750 stock options and 125,871 unvested
41
4. INVESTMENT IN STORAGE FACILITIES
The following summarizes activity in storage facilities during the years ended December 31, 20092017 and December 31, 2008.2016.
(Dollars in thousands) |
| 2017 |
|
| 2016 |
| ||
Cost: |
|
|
|
|
|
|
|
|
Beginning balance |
| $ | 4,243,308 |
|
| $ | 2,491,702 |
|
Acquisition of storage facilities |
|
| 22,638 |
|
|
| 1,714,029 |
|
Improvements and equipment additions |
|
| 84,332 |
|
|
| 65,860 |
|
Net (decrease) increase in construction in progress |
|
| (141 | ) |
|
| 7,525 |
|
Dispositions |
|
| (28,727 | ) |
|
| (35,808 | ) |
Ending balance |
| $ | 4,321,410 |
|
| $ | 4,243,308 |
|
Accumulated Depreciation: |
|
|
|
|
|
|
|
|
Beginning balance |
| $ | 535,704 |
|
| $ | 465,195 |
|
Additions during the year |
|
| 102,674 |
|
|
| 87,219 |
|
Dispositions |
|
| (14,064 | ) |
|
| (16,710 | ) |
Ending balance |
| $ | 624,314 |
|
| $ | 535,704 |
|
(Dollars in thousands) | 2009 | 2008 | ||||||
Cost: | ||||||||
Beginning balance | $ | 1,366,615 | $ | 1,300,847 | ||||
Acquisition of storage facilities | — | 18,454 | ||||||
Additional investment in consolidated joint ventures | — | 2,473 | ||||||
Improvements and equipment additions | 26,256 | 44,273 | ||||||
(Decrease) increase in construction in progress | (4,121 | ) | 761 | |||||
Dispositions | (1,167 | ) | (193 | ) | ||||
Ending balance | $ | 1,387,583 | $ | 1,366,615 | ||||
Accumulated Depreciation: | ||||||||
Beginning balance | $ | 212,301 | $ | 179,880 | ||||
Additions during the year | 33,096 | 32,556 | ||||||
Dispositions | (219 | ) | (135 | ) | ||||
Ending balance | $ | 245,178 | $ | 212,301 | ||||
The Company acquired two self-storage facilities during 2017. The acquisition of these facilities were accounted for as asset acquisitions (See Note 2 for further discussion of the Company’s adoption of the accounting guidance under ASU 2017-01 as of January 1, 2017). The cost of these facilities, including closing costs, were assigned to land, buildings, equipment and improvements based upon their relative fair values.
On July 15, 2016, the Company acquired all of the outstanding partnership interests in LifeStorage, LP, a Delaware limited partnership (“LS”). Pursuant to the acquisition, the Company acquired 83 self-storage properties throughout the country, including the following markets: Chicago, Illinois; Las Vegas, Nevada; Sacramento, California; Austin, Texas; and Los Angeles, California. Pursuant to the terms of the Agreement and Plan of Merger dated as of May 18, 2016 by and among LS, the Operating Partnership, allocates purchase priceSolar Lunar Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Operating Partnership, and Fortis Advisors LLC, a Delaware limited liability company, as Sellers’ Representative, the Company paid aggregate consideration of approximately $1.3 billion, of which $482 million was paid to discharge existing indebtedness of LS (including prepayment penalties and defeasance costs totaling $15.5 million).
Including the LS acquisition, the Company acquired 122 facilities during 2016. The acquisition of three stores that were acquired at certificate of occupancy were accounted for as asset acquisitions. The cost of these stores, including closing costs, was assigned to land, building, equipment and improvements components based upon their relative fair values. The assets and liabilities of the other 119 storage facilities acquired in 2016, which primarily consist of tangible and intangible assets, were measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and liabilities acquired based on their estimated fair values. Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.”
The value of land and buildings are determined at replacement cost. Intangible assets, which represent the value of existing customer leases, are recorded at their estimated fair values. The Operating Partnership did not acquire any storage facilities in 2009. During 2008, the Operating Partnership acquired three storage facilities for $18.9 million. Substantially allpurchase price of the purchase price for thesetwo facilities was allocated to land ($3.7 million), building ($14.7 million), equipment ($0.1 million)acquired in 2017 and in-place customer leases ($0.4 million) and the 122 facilities acquired in 2016 has been assigned as follows:
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| Consideration paid |
|
| Acquisition Date Fair Value |
| ||||||||||||||
State |
| Number of Properties |
|
| Date of Acquisition |
| Purchase Price |
|
| Cash Paid |
|
| Net Other Liabilities Assumed (Assets Acquired) |
|
| Land |
|
| Building, Equipment, and Improvements |
|
| Closing Costs Expensed |
| |||||||
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IL |
|
| 1 |
|
| 2/23/2017 |
| $ | 10,089 |
|
| $ | 10,076 |
|
| $ | 13 |
|
| $ | 771 |
|
| $ | 9,318 |
|
| $ | — |
|
NC |
|
| 1 |
|
| 12/14/2017 |
|
| 12,549 |
|
|
| 12,550 |
|
|
| (1 | ) |
|
| 1,110 |
|
|
| 11,439 |
|
|
| — |
|
Total acquired 2017 |
|
| 2 |
|
|
|
| $ | 22,638 |
|
| $ | 22,626 |
|
| $ | 12 |
|
| $ | 1,881 |
|
| $ | 20,757 |
|
| $ | — |
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
| Consideration paid |
|
| Acquisition Date Fair Value |
|
|
|
|
| ||||||||||||||||||||||||||
States |
| Number of Properties |
|
| Date of Acquisition |
| Purchase Price |
|
| Cash Paid |
|
| Value of Operating Partnership Units Issued |
|
| Mortgage Assumed |
|
| Net Other Liabilities Assumed (Assets Acquired) |
|
| Land |
|
| Building, Equipment, and Improvements |
|
| In-Place Customer Leases |
|
| Trade Name |
|
| Closing Costs Expensed |
| |||||||||||
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FL |
|
| 4 |
|
| 1/6/2016 |
| $ | 20,350 |
|
| $ | 20,246 |
|
| $ | — |
|
| $ | — |
|
| $ | 104 |
|
| $ | 6,646 |
|
| $ | 13,339 |
|
| $ | 365 |
|
| $ | — |
|
| $ | 437 |
|
CA |
|
| 4 |
|
| 1/21/2016 |
|
| 80,603 |
|
|
| 80,415 |
|
|
| — |
|
|
| — |
|
|
| 188 |
|
|
| 28,420 |
|
|
| 51,145 |
|
|
| 1,038 |
|
|
| — |
|
|
| 397 |
|
NH |
|
| 5 |
|
| 1/21/2016 |
|
| 55,435 |
|
|
| 55,151 |
|
|
| — |
|
|
| — |
|
|
| 284 |
|
|
| 13,281 |
|
|
| 41,237 |
|
|
| 917 |
|
|
| — |
|
|
| 657 |
|
MA |
|
| 1 |
|
| 1/21/2016 |
|
| 11,387 |
|
|
| 11,362 |
|
|
| — |
|
|
| — |
|
|
| 25 |
|
|
| 4,880 |
|
|
| 6,341 |
|
|
| 166 |
|
|
| — |
|
|
| 81 |
|
TX |
|
| 3 |
|
| 1/21/2016 |
|
| 38,975 |
|
|
| 38,819 |
|
|
| — |
|
|
| — |
|
|
| 156 |
|
|
| 19,796 |
|
|
| 18,598 |
|
|
| 581 |
|
|
| — |
|
|
| 299 |
|
AZ |
|
| 1 |
|
| 2/1/2016 |
|
| 9,275 |
|
|
| 9,261 |
|
|
| — |
|
|
| — |
|
|
| 14 |
|
|
| 988 |
|
|
| 8,224 |
|
|
| 63 |
|
|
| — |
|
|
| 136 |
|
FL |
|
| 1 |
|
| 2/12/2016 |
|
| 11,274 |
|
|
| 11,270 |
|
|
| — |
|
|
| — |
|
|
| 4 |
|
|
| 2,294 |
|
|
| 8,980 |
|
|
| — |
|
|
| — |
|
|
| — |
|
PA |
|
| 1 |
|
| 2/17/2016 |
|
| 5,750 |
|
|
| 5,732 |
|
|
| — |
|
|
| — |
|
|
| 18 |
|
|
| 1,768 |
|
|
| 3,879 |
|
|
| 103 |
|
|
| — |
|
|
| 164 |
|
CO |
|
| 1 |
|
| 2/29/2016 |
|
| 12,600 |
|
|
| 12,549 |
|
|
| — |
|
|
| — |
|
|
| 51 |
|
|
| 4,528 |
|
|
| 7,915 |
|
|
| 157 |
|
|
| — |
|
|
| 188 |
|
CA |
|
| 3 |
|
| 3/16/2016 |
|
| 68,832 |
|
|
| 63,965 |
|
|
| 4,472 |
|
|
| — |
|
|
| 395 |
|
|
| 22,647 |
|
|
| 45,371 |
|
|
| 814 |
|
|
| — |
|
|
| 313 |
|
CA |
|
| 1 |
|
| 3/17/2016 |
|
| 17,320 |
|
|
| 17,278 |
|
|
| — |
|
|
| — |
|
|
| 42 |
|
|
| 6,728 |
|
|
| 10,339 |
|
|
| 253 |
|
|
| — |
|
|
| 132 |
|
CA |
|
| 1 |
|
| 4/11/2016 |
|
| 36,750 |
|
|
| 33,346 |
|
|
| 3,294 |
|
|
| — |
|
|
| 110 |
|
|
| 17,445 |
|
|
| 18,840 |
|
|
| 465 |
|
|
| — |
|
|
| 141 |
|
CT |
|
| 2 |
|
| 4/14/2016 |
|
| 17,313 |
|
|
| 17,152 |
|
|
| — |
|
|
| — |
|
|
| 161 |
|
|
| 6,142 |
|
|
| 10,904 |
|
|
| 267 |
|
|
| — |
|
|
| 204 |
|
NY |
|
| 2 |
|
| 4/26/2016 |
|
| 24,312 |
|
|
| 20,143 |
|
|
| — |
|
|
| 4,249 |
|
|
| (80 | ) |
|
| 5,710 |
|
|
| 18,201 |
|
|
| 401 |
|
|
| — |
|
|
| 372 |
|
FL |
|
| 1 |
|
| 5/2/2016 |
|
| 8,100 |
|
|
| 4,006 |
|
|
| — |
|
|
| 4,036 |
|
|
| 58 |
|
|
| 3,018 |
|
|
| 4,922 |
|
|
| 160 |
|
|
| — |
|
|
| 161 |
|
TX |
|
| 1 |
|
| 5/5/2016 |
|
| 10,800 |
|
|
| 10,708 |
|
|
| — |
|
|
| — |
|
|
| 92 |
|
|
| 2,333 |
|
|
| 8,302 |
|
|
| 165 |
|
|
| — |
|
|
| 133 |
|
NY |
|
| 2 |
|
| 5/19/2016 |
|
| 8,400 |
|
|
| 8,366 |
|
|
| — |
|
|
| — |
|
|
| 34 |
|
|
| 714 |
|
|
| 7,521 |
|
|
| 165 |
|
|
| — |
|
|
| 213 |
|
CA, CO, FL, IL, MS, NV, TX, UT, WI |
|
| 83 |
|
| 7/15/2016 |
|
| 1,299,740 |
|
|
| 1,335,274 |
|
|
| — |
|
|
| — |
|
|
| (35,534 | ) |
|
| 150,660 |
|
|
| 1,085,750 |
|
|
| 46,830 |
|
|
| 16,500 |
|
|
| 25,398 |
|
SC |
|
| 1 |
|
| 7/29/2016 |
|
| 8,620 |
|
|
| 8,617 |
|
|
| — |
|
|
| — |
|
|
| 3 |
|
|
| 920 |
|
|
| 7,700 |
|
|
| — |
|
|
| — |
|
|
| — |
|
CO |
|
| 1 |
|
| 8/4/2016 |
|
| 8,900 |
|
|
| 8,831 |
|
|
| — |
|
|
| — |
|
|
| 69 |
|
|
| 5,062 |
|
|
| 3,679 |
|
|
| 159 |
|
|
| — |
|
|
| 119 |
|
FL |
|
| 1 |
|
| 9/27/2016 |
|
| 10,500 |
|
|
| 10,407 |
|
|
| — |
|
|
| — |
|
|
| 93 |
|
|
| 2,809 |
|
|
| 7,523 |
|
|
| 168 |
|
|
| — |
|
|
| 244 |
|
IL |
|
| 1 |
|
| 11/17/2016 |
|
| 8,884 |
|
|
| 7,125 |
|
|
| 1,750 |
|
|
| — |
|
|
| 9 |
|
|
| 371 |
|
|
| 8,513 |
|
|
| — |
|
|
| — |
|
|
| — |
|
FL |
|
| 1 |
|
| 12/20/2016 |
|
| 9,800 |
|
|
| 6,900 |
|
|
| — |
|
|
| 2,966 |
|
|
| (66 | ) |
|
| 3,268 |
|
|
| 6,378 |
|
|
| 154 |
|
|
| — |
|
|
| 98 |
|
Total acquired 2016 |
|
| 122 |
|
|
|
| $ | 1,783,920 |
|
| $ | 1,796,923 |
|
| $ | 9,516 |
|
| $ | 11,251 |
|
| $ | (33,770 | ) |
| $ | 310,428 |
|
| $ | 1,403,601 |
|
| $ | 53,391 |
|
| $ | 16,500 |
|
| $ | 29,887 |
|
All properties acquired were purchased from unrelated third parties. The operating results of the facilities acquired facilities have been included in the Operating Partnership’sCompany’s operations since the respective acquisition dates.
Non-cash investing activities during 2017 include the assumption of net other liabilities totaling $12,000. Non-cash investing activities during 2016 include the issuance of $9.5 million in Operating Partnership sold five non-strategic storage facilitiesUnits valued based on the market price of the Company’s common stock at the date of acquisition, the assumption of three mortgages with acquisition-date fair values of $11.3 million, and the assumption of net other liabilities of $7.2 million. Non-cash investing activities during 2015 include the issuance of $2.1 million in Massachusetts, North Carolina, and Pennsylvania for net cash proceeds of $16.3 million resulting in a loss of $1.6 million. In April 2008, the Operating Partnership sold one non-strategic storage facility locatedUnits, the assumption of $1.3 million of other net liabilities and $2.5 million for the settlement of a straight-line rent liability in Michigan for net cash proceedsconnection with the acquisition of $7.0 million resulting in a gainself-storage facilities.
The Company measures the fair value of $0.7 million. The operations of these facilitiesin-place customer lease intangible assets based on the Company’s experience with customer turnover and the loss or gainestimated cost to replace the in-place leases. The Company amortizes in-place customer leases on salea 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 reportednot 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 at December 31 as discontinued operations. The amounts in the 2008 and 2007 financial statementsfollows:
(dollars in thousands) |
| 2017 |
|
| 2016 |
| ||
In-place customer leases |
| $ | 75,241 |
|
| $ | 75,611 |
|
Accumulated amortization |
|
| (75,241 | ) |
|
| (50,782 | ) |
Net carrying value at the end of period |
| $ | - |
|
| $ | 24,829 |
|
Amortization expense related to the operationsin-place customer leases was $24.8 million, $29.9 million, and the net assets of this property have been reclassified and are presented as discontinued operations and net assets from discontinued operations, respectively. Cash flows of discontinued operations have not been segregated from the cash flows of continuing operations on the accompanying consolidated statement of cash flows$3.4 million, for the years ended December 31, 2009, 20082017, 2016, and 2007.2015, respectively. No amortization expense is expected in 2018.
Property Dispositions
During 2017 the Company sold two non-strategic properties and received net cash proceeds of $16.9 million. The following is a summaryCompany has subsequently leased one of the amounts reported as discontinued operations:
Year Ended December 31, | ||||||||||||
(dollars in thousands) | 2009 | 2008 | 2007 | |||||||||
Total revenue | $ | 2,187 | $ | 3,043 | $ | 3,757 | ||||||
Property operations and maintenance expense | (643 | ) | (956 | ) | (1,048 | ) | ||||||
Real estate tax expense | (258 | ) | (332 | ) | (372 | ) | ||||||
Depreciation and amortization expense | (434 | ) | (591 | ) | (676 | ) | ||||||
Net realized (loss) gain on sale of property | (1,636 | ) | 716 | — | ||||||||
Total (loss) income from discontinued operations | $ | (784 | ) | $ | 1,880 | $ | 1,661 | |||||
42
Change in Useful Life Estimates
As part of the Company’s capital improvement efforts during 2017, 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 $3.9 million in 2017. The Company estimates that the change in estimated useful lives of buildings identified for replacement as of December 31, 2017 will result in an increase in depreciation expense of approximately $0.3 million in 2018.
The accelerated depreciation resulting from the events discussed above nor does it purport to represent the results of operations for future periods.
Year Ended | ||||
(dollars in thousands, except unit data) | December 31, 2007 | |||
Pro forma total operating revenues | $ | 199,569 | ||
Pro forma net income | $ | 42,582 | ||
Pro forma earnings per common unit — diluted | $ | 1.92 |
5. UNSECURED LINE OF CREDIT AND TERM NOTES
Borrowings outstanding on our unsecured line of credit and term notes are as follows:
( Dollars in thousands ) |
| Dec. 31, 2017 |
|
| Dec. 31, 2016 |
| ||
Revolving line of credit borrowings |
| $ | 105,000 |
|
| $ | 253,000 |
|
|
|
|
|
|
|
|
|
|
Term note due June 4, 2020 |
|
| 100,000 |
|
|
| 325,000 |
|
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 |
|
|
| — |
|
Term note due July 21, 2028 |
|
| 200,000 |
|
|
| 200,000 |
|
Total term note principal balance outstanding |
| $ | 1,625,000 |
|
| $ | 1,400,000 |
|
Less: unamortized debt issuance costs |
|
| (10,962 | ) |
|
| (9,323 | ) |
Less: unamortized senior term note discount |
|
| (4,949 | ) |
|
| (3,152 | ) |
Term notes payable |
| $ | 1,609,089 |
|
| $ | 1,387,525 |
|
In January 2016, the Operating Partnership entered into agreements relating to newCompany exercised the expansion feature on its existing amended unsecured credit arrangements,agreement and received funds under those arrangements. As part ofincreased the agreements,revolving credit limit from $300 million to $500 million. The interest rate on the Operating Partnership entered intorevolving credit facility bears interest at a $250variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at December 31, 2017 the margin is 1.10%), and requires an annual 0.15% facility fee. The Company’s unsecured credit agreement also includes a $325 million unsecured term note maturing June 4, 2020. In 2017, the Company repaid $225 million under this term note, resulting in June 2012$100 million outstanding at December 31, 2017, with the term note bearing interest at LIBOR plus 1.625% (baseda margin based on the Operating Partnership’sCompany’s credit rating (at December 31, 2009 credit rating). In October 2009,2017 the Operating Partnership repaid $100 million of this term note. The new agreements also provide for a $125 million (expandable to $175 million) revolving line of credit maturing June 2011 bearing interest at a variable rate equal to LIBOR plus 1.375% (based on the Operating Partnership’s credit rating at December 31, 2009), and requires a 0.25% facility fee.margin is 1.15%). The interest rate at December 31, 20092017 on the Operating Partnership’s availableCompany’s line of credit was approximately 1.61% (1.8%2.63% (1.79% at December 31, 2008)2016). At December 31, 2009,2017, there was $125$395 million available on the unsecured line of credit.
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 on June 15 and December 15, beginning on June 15, 2018. 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 totaling $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 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 maintains an $80restricts 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 December 31, 2017, the Company was in compliance with such covenants.
On May 17, 2016, the Company entered into two senior unsecured acquisition bridge facilities (the “Bridge Facilities”) totaling $1,675 million with the Company’s third-party advisors to the LS acquisition (see Note 4). In consideration for the bridge financing commitments, the Company paid fees totaling $7.3 million which are included as interest expense – bridge financing commitment fee in the 2016 consolidated statement of operations. The Bridge Facilities commitments were not drawn upon and were terminated on June 29, 2016.
On July 21, 2016, the Company entered into a $200 million term note maturing September 2013July 21, 2028 bearing interest at a fixed rate of 6.26%,3.67%.
On April 8, 2014, the Company entered into a $20$175 million term note maturing September 2013April 2024 bearing interest at a variablefixed rate equalof 4.533%. The interest rate on the term note increases to LIBOR plus 1.50%, and6.283% 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 $150$100 million unsecured term note maturing in April 2016August 5, 2021 bearing interest at 6.38% (baseda fixed rate of 5.54%. The interest rate on the Operating Partnership’sterm note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating at December 31, 2009).
The line of credit and term notes require the Operating PartnershipCompany 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 distributiondividend payouts. At December 31, 2009,2017, the Operating PartnershipCompany was in compliance with its debtsuch covenants. At March 31, 2009, the Operating Partnership had violated the leverage ratio covenant contained in the line of credit and term note agreements. In May 2009, the Operating Partnership obtained a waiver of the violation as of March 31, 2009. The fees paid to obtain the waiver were approximately $0.9 million and are included in interest expense for the year ended December 31, 2009.
We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at December 31, 20092017, the entire $125 millionavailability 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 December 31, 2017 and December 31, 2016. Amortization expense related to these deferred debt issuance costs, which exclude costs related to the Bridge Facilities, was $3.0 million, $1.7 million and $1.2 million for the periods ended December 31, 2017, 2016 and 2015, respectively, and is included in interest expense in the consolidated statements of operations.
43
Mortgages payable at December 31, 20092017 and December 31, 20082016 consist of the following:
(dollars in thousands) |
| December 31, 2017 |
|
| December 31, 2016 |
| ||
4.98% mortgage note due January 1, 2021 secured by one self- storage facility with an aggregate net book value of $9.6 million, principal and interest paid monthly (effective interest rate 5.22%) |
| $ | 2,916 |
|
| $ | 2,966 |
|
4.065% mortgage note due April 1, 2023, secured by one self- storage facility with an aggregate net book value of $7.6 million, principal and interest paid monthly (effective interest rate 4.30%) |
|
| 4,119 |
|
|
| 4,207 |
|
5.26% mortgage note due November 1, 2023, secured by one self- storage facility with an aggregate net book value of $8.0 million, principal and interest paid monthly (effective interest rate 5.56%) |
|
| 3,939 |
|
|
| 4,002 |
|
5.99% mortgage note due May 1, 2026, secured by one self- storage facility with an aggregate net book value of $6.6 million, principal and interest paid monthly (effective interest rate 6.23%) |
|
| 1,700 |
|
|
| 1,852 |
|
Total mortgages payable |
| $ | 12,674 |
|
| $ | 13,027 |
|
December 31, | December 31, | |||||||
(dollars in thousands) | 2009 | 2008 | ||||||
7.80% mortgage note due December 2011, secured by 11 self-storage facilities (Locke Sovran I) with an aggregate net book value of $42.7 million, principal and interest paid monthly | $ | 28,447 | $ | 29,033 | ||||
7.19% mortgage note due March 2012, secured by 27 self-storage facilities (Locke Sovran II) with an aggregate net book value of $80.3 million, principal and interest paid monthly | 41,475 | 42,603 | ||||||
7.25% mortgage note due December 2011, secured by 1 self-storage facility with an aggregate net book value of $5.7 million, principal and interest paid monthly. Estimated market rate at time of acquisition 5.40% | 3,369 | 3,510 | ||||||
6.76% mortgage note due September 2013, secured by 1 self-storage facility with an aggregate net book value of $2.0 million, principal and interest paid monthly | 977 | 1,000 | ||||||
6.35% mortgage note due March 2014, secured by 1 self-storage facility with an aggregate net book value of $3.7 million, principal and interest paid monthly | 1,072 | 1,098 | ||||||
5.55% mortgage notes secured by 8 self storage facilities paid December 1, 2009 | — | 25,930 | ||||||
7.50% mortgage notes due August 2011, secured by 3 self-storage facilities with an aggregate net book value of $14.0 million, principal and interest paid monthly. Estimated market rate at time of acquisition 6.42% | 5,879 | 6,087 | ||||||
Total mortgages payable | $ | 81,219 | $ | 109,261 | ||||
The table below summarizes the Operating Partnership’sCompany’s debt obligations and interest rate derivatives at December 31, 2009.2017. 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 notenotes and mortgage notenotes 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 8. 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 Operating PartnershipCompany would realize in a current market exchange.
|
|
|
|
|
| Expected Maturity Date Including Discount |
|
|
|
|
| |||||||||||||||||||||
(dollars in thousands) |
| 2018 |
|
| 2019 |
|
| 2020 |
|
| 2021 |
|
| 2022 |
|
| Thereafter |
|
| Total |
|
| Fair Value |
| ||||||||
Line of credit—variable rate LIBOR + 1.10% (2.63% at December 31, 2017) |
|
| — |
|
| $ | 105,000 |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 105,000 |
|
| $ | 105,000 |
|
Notes Payable: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term note—variable rate LIBOR+1.15% (2.53% at December 31, 2017) |
|
| — |
|
|
| — |
|
| $ | 100,000 |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 100,000 |
|
| $ | 100,000 |
|
Term note—fixed rate 5.54% |
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 100,000 |
|
|
| — |
|
|
| — |
|
| $ | 100,000 |
|
| $ | 109,192 |
|
Term note—fixed rate 4.533% |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 175,000 |
|
| $ | 175,000 |
|
| $ | 181,510 |
|
Term note—fixed rate 3.50% |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 600,000 |
|
| $ | 600,000 |
|
| $ | 585,092 |
|
Term note—fixed rate 3.875% |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 450,000 |
|
| $ | 450,000 |
|
| $ | 449,076 |
|
Term note—fixed rate 3.67% |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
| $ | 200,000 |
|
| $ | 200,000 |
|
| $ | 192,447 |
|
Mortgage note—fixed rate 4.98% |
| $ | 53 |
|
| $ | 56 |
|
| $ | 59 |
|
| $ | 2,748 |
|
|
| — |
|
|
| — |
|
| $ | 2,916 |
|
| $ | 3,007 |
|
Mortgage note—fixed rate 4.065% |
| $ | 92 |
|
| $ | 96 |
|
| $ | 99 |
|
| $ | 104 |
|
| $ | 108 |
|
| $ | 3,620 |
|
| $ | 4,119 |
|
| $ | 4,112 |
|
Mortgage note—fixed rate 5.26% |
| $ | 67 |
|
| $ | 71 |
|
| $ | 74 |
|
| $ | 78 |
|
| $ | 83 |
|
| $ | 3,566 |
|
| $ | 3,939 |
|
| $ | 4,169 |
|
Mortgage note—fixed rate 5.99% |
| $ | 160 |
|
| $ | 170 |
|
| $ | 181 |
|
| $ | 192 |
|
| $ | 203 |
|
| $ | 794 |
|
| $ | 1,700 |
|
| $ | 1,822 |
|
Total |
| $ | 372 |
|
| $ | 105,393 |
|
| $ | 100,413 |
|
| $ | 103,122 |
|
| $ | 394 |
|
| $ | 1,432,980 |
|
| $ | 1,742,674 |
|
|
|
|
|
44
Expected Maturity Date Including Discount | Fair | |||||||||||||||||||||||||||||||
(dollars in thousands) | 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total | Value | ||||||||||||||||||||||||
Line of credit — variable rate LIBOR + 1.375 (1.61% at December 31, 2009) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Notes Payable: | ||||||||||||||||||||||||||||||||
Term note — variable rate LIBOR+1.625% (1.86% at December 31, 2009) | — | — | $ | 150,000 | — | — | — | $ | 150,000 | $ | 150,000 | |||||||||||||||||||||
Term note — variable rate LIBOR+1.50% (2.23% at December 31, 2009) | — | — | — | $ | 20,000 | — | — | $ | 20,000 | $ | 20,000 | |||||||||||||||||||||
Term note — fixed rate 6.26% | — | — | — | $ | 80,000 | — | — | $ | 80,000 | $ | 76,958 | |||||||||||||||||||||
Term note — fixed rate 6.38% | — | — | — | — | — | $ | 150,000 | $ | 150,000 | $ | 136,630 | |||||||||||||||||||||
Mortgage note — fixed rate 7.80% | $ | 630 | $ | 27,817 | — | — | — | — | $ | 28,447 | $ | 29,454 | ||||||||||||||||||||
Mortgage note — fixed rate 7.19% | $ | 1,211 | $ | 1,301 | $ | 38,963 | — | — | — | $ | 41,475 | $ | 43,133 | |||||||||||||||||||
Mortgage note — fixed rate 7.25% | $ | 149 | $ | 3,220 | — | — | — | — | $ | 3,369 | $ | 3,385 | ||||||||||||||||||||
Mortgage note — fixed rate 6.76% | $ | 25 | $ | 27 | $ | 29 | $ | 896 | — | — | $ | 977 | $ | 1,011 | ||||||||||||||||||
Mortgage note — fixed rate 6.35% | $ | 28 | $ | 30 | $ | 31 | $ | 34 | $ | 949 | — | $ | 1,072 | $ | 1,059 | |||||||||||||||||
Mortgage notes — fixed rate 7.50% | $ | 222 | $ | 5,657 | — | — | — | — | $ | 5,879 | $ | 6,003 | ||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||
Interest rate derivatives — liability | — | — | — | — | — | — | — | $ | 11,524 |
Interest rate swaps are used to adjust the proportion of total debt that is subject to variable interest rates. The interest rate swaps require the Operating PartnershipCompany 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 are 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 Operating PartnershipCompany enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.
Interest rate swaps qualify and are designated as hedges of the amount of future cash flows related to interest payments on variable rate debt. Therefore, the interest rate swaps are recorded in the consolidated balance sheetsheets at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive IncomeLoss (“AOCI”AOCL”). These deferred gains and losses are amortized intorecognized 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. Ineffectiveness was immaterialde minimis in 2009, 2008,2017, 2016, and 2007.
The Operating PartnershipCompany has threeone interest rate swap agreementsagreement in effect at December 31, 20092017 as detailed below to effectively convert a total of $170$100 million of variable-rate debt to fixed-rate debt.
Notional Amount | Effective Date | Expiration Date | Fixed Rate Paid | Floating Rate Received | |||||||
$100 Million | |||||||||||
9/4/13 | 9/4/18 | 1.3710 | |||||||||
% | 1 month LIBOR | ||||||||||
In the fourth quarter of 2017, the Company terminated hedges and settled the interest rate swap agreements on $225 million of the Company’s variable rate debt in connection with repayment of the related variable rate term notes. The Company settled these interest rate swap agreements for a total of $9.6 million which is included in interest expense in the 2017 consolidated statement of operations. As a result of the termination, no gains or losses related to the terminated interest rate swaps are included in AOCL at December 31, 2017.
In the fourth quarter of 2015, the Company entered into forward starting interest rate swap agreements with a total notional value of $50 million. In the first quarter of 2016, the Company entered into additional forward starting interest rate swap agreements with a total notional value of $100 million. These forward starting interest rate swap agreements were entered into 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 5), 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. Consistent with the Company’s accounting policy, the cash outflow related to the settlement of the forward starting swap agreements is reflected as a financing activity in the 2016 consolidated statement of cash flows.
The remaining interest rate swap agreement is the only derivative instruments,instrument, as defined by FASB ASC Topic 815
45
Jan. 1, 2009 | Jan. 1, 2008 | |||||||
to | to | |||||||
(dollars in thousands) | Dec. 31, 2009 | Dec. 31, 2008 | ||||||
Adjustments to interest expense: | ||||||||
Realized loss reclassified from accumulated other comprehensive loss to interest expense | $ | (9,687 | ) | $ | (2,601 | ) | ||
Adjustments to other comprehensive income (loss): | ||||||||
Realized loss reclassified to interest expense for 2009 and 2008, respectively | 9,687 | 2,601 | ||||||
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps for 2009 and 2008, respectively | 4,210 | (26,395 | ) | |||||
Gain (loss) included in other comprehensive income (loss) | $ | 13,897 | $ | (23,794 | ) | |||
The Company’s agreement with its interest rate swap agreements that were designated as hedgescounterparty contains provisions pursuant to which the Company could be declared in default of forecastedits derivative obligation, if any, if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. The interest paymentsrate swap agreement also incorporates other loan covenants of the Company. Failure to comply with the loan covenant provisions would result in the Company being in default on variable rate debt. Realized losses recognized in interest expense in 2009 include $8.4 million in costs to terminate the interest rate swaps. swap agreement. As of December 31, 2017, the Company had not posted any collateral related to the interest rate swap agreements.
The cost approximatedchanges in AOCL for the fair market values of the swaps at the date of termination.years ended December 31, 2017, 2016, and 2015 are summarized as follows:
(dollars in thousands) |
| Jan. 1, 2017 to Dec. 31, 2017 |
|
| Jan. 1, 2016 to Dec. 31, 2016 |
|
| Jan. 1, 2015 to Dec. 31, 2015 |
| |||
Accumulated other comprehensive loss beginning of period |
| $ | (21,475 | ) |
| $ | (14,415 | ) |
| $ | (13,005 | ) |
Realized loss reclassified from accumulated other comprehensive loss to interest expense |
|
| 13,185 |
|
|
| 5,044 |
|
|
| 5,229 |
|
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps |
|
| 703 |
|
|
| (12,104 | ) |
|
| (6,639 | ) |
Gain (loss) included in other comprehensive loss |
|
| 13,888 |
|
|
| (7,060 | ) |
|
| (1,410 | ) |
Accumulated other comprehensive loss end of period |
| $ | (7,587 | ) |
| $ | (21,475 | ) |
| $ | (14,415 | ) |
The Company applies the FASB issued additional accounting guidance underprovisions of ASC Topic 820 “Fair Value Measurements” through the issuance of SFAS No. 157, “Fair Value Measurements,” (“SFAS 157”). The additional guidance defines fair value, establishes a framework for measuring fair value and expands the related disclosure requirements. This additional guidance applies under other codification standards that require or permit fair value measurements. The additional guidance indicates, among other things, that a fair value measurement assumes that the transaction to sell an asset or transfer a liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. FASB ASC Topic 820 defines fair value based upon an exit price model.
46
Refer to Note 6 for presentation of the fair values of debt obligations which are disclosed at fair value on a recurring basis.
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2009 (in2017 and December 31, 2016 (dollars in thousands):
|
| Asset (Liability) |
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
| ||||
December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
| $ | 205 |
|
|
| — |
|
| $ | 205 |
|
|
| — |
|
December 31, 2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swaps |
| $ | (13,015 | ) |
|
| — |
|
| $ | (13,015 | ) |
|
| — |
|
Asset | ||||||||||||||||
(Liability) | Level 1 | Level 2 | Level 3 | |||||||||||||
Interest rate swaps | (11,524 | ) | — | (11,524 | ) | — |
Interest rate swaps are over the counter securities with no quoted readily available Level 1 inputs, and therefore are measured at fair value using inputs that are directly observable in active markets and are classified within Level 2 of the valuation hierarchy, using the income approach.
During 2016, assets and liabilities measured at fair value on a non-recurring basis included the assets acquired and liabilities assumed in connection with the acquisition of storage facilities accounted for as business combinations (see note 4), including the LS acquisition. To determine the fair value of land, the Company used prices per acre derived from observed transactions involving comparable land in similar locations, which is considered a Level 2 input. To determine the fair value of buildings, equipment and improvements, the Company used current replacement cost based on information derived from construction industry data by geographic region which is considered a Level 2 input. The replacement cost is then adjusted for the age, condition, and economic obsolescence associated with these assets, which are considered Level 3 inputs. The fair value of in-place customer leases is based on the rent lost due to the amount of time required to replace existing customers and the cost to replace in-place tenants which are based on the Company’s historical experience with turnover at its facilities and on market rental rates and estimated downtime required to replace the in-place leases, all of which are Level 3 inputs. The average downtime is based upon estimated demand information including the number of potential customers exhibited in historical property interest data. The fair value of trade names is based on royalty payments avoided had the trade name been owned by a third party which is determined using market royalty rates. Other assets acquired and liabilities assumed in the acquisitions consist primarily of prepaid or accrued real estate taxes and deferred revenues from advance monthly rentals paid by customers. The fair values of these assets and liabilities are based on their carrying values as they typically turn over within one year from the acquisition date and these are Level 3 inputs. There were no acquisitions made in 2017 that were accounted for as business combinations.
9. STOCK OPTIONS AND NON-VESTED STOCK
The Company established the 20052015 Award and Option Plan (the “Plan”“2015 Plan”) which replaced the expired 19952005 Award and Option Plan for the purpose of attracting and retaining the Company’s executive officers and other key employees. 1,500,000employees, such plans being the “Plans”. There were 561,000 shares were authorized for issuance under the 2015 Plan. The optionsOptions granted under the Plans vest ratably over four and eight years, and must be exercised within ten years from the date of grant. The exercise price for qualified incentive stock options must be at least equal to the fair market value of the common shares at the date of grant. As of December 31, 2009,2017, options for 362,46376,106 shares were outstanding under the Plans and options for 998,330345,383 shares of common stock were available for future issuance.
The Company also established the 2009 Outside Directors’ Stock Option and Award Plan (the Non-employee Plan)“Non-employee Plan”) which replaced the 1995 Outside Directors’ Stock Option Plan for the purpose of attracting and retaining the services of experienced and knowledgeable outside directors. ThePrior to 2016, the Non-employee Plan providesprovided for the initial granting of options to purchase 3,500 shares of common stock and for the annual granting of options to purchase 2,000 shares of common stock to each eligible director. Such options vest over a one-year period for initial awards and immediately upon subsequent grants. The issuance of stock options to directors was discontinued in 2016. In addition, each outside director receives non-vested shares annually equal to 80% of the annual fees paid to them. During the restriction period, the non-vested shares may not be sold, transferred, or otherwise encumbered. The holder of the non-vested shares has all rights of a holder of common shares, including the right to vote and receive dividends. During 2009, 3,4562017, 3,145 non-vested shares were issued to outside directors. Such non-vested shares vest over a one-year period. The total shares reserved under the Non-employee Plan is 150,000. The exercise price for options granted under the Non-employee Plan is equal to the fair market value at the date of grant. As of December 31, 2009,2017, options for 35,00518,500 common shares and 3,145 of non-vested shares of 12,161 were outstanding under the Non-employee Plans andPlans. As of December 31, 2017 options for 137,04467,871 shares of common stock were available for future issuance.
47
|
| 2017 |
|
| 2016 |
|
| 2015 |
| |||||||||||||||
|
| Options |
|
| Weighted average exercise price |
|
| Options |
|
| Weighted average exercise price |
|
| Options |
|
| Weighted average exercise price |
| ||||||
Outstanding at beginning of year: |
|
| 95,706 |
|
| $ | 52.08 |
|
|
| 95,706 |
|
| $ | 52.08 |
|
|
| 115,606 |
|
| $ | 48.54 |
|
Granted |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| 11,000 |
|
|
| 91.58 |
|
Exercised |
|
| (1,100 | ) |
|
| 39.00 |
|
|
| — |
|
|
| — |
|
|
| (30,900 | ) |
|
| 52.87 |
|
Adjusted / (forfeited) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Outstanding at end of year |
|
| 94,606 |
|
| $ | 52.24 |
|
|
| 95,706 |
|
| $ | 52.08 |
|
|
| 95,706 |
|
| $ | 52.08 |
|
Exercisable at end of year |
|
| 93,106 |
|
| $ | 51.85 |
|
|
| 92,706 |
|
| $ | 51.31 |
|
|
| 63,815 |
|
| $ | 48.73 |
|
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
average | average | average | ||||||||||||||||||||||
exercise | exercise | exercise | ||||||||||||||||||||||
Options | price | Options | price | Options | price | |||||||||||||||||||
Outstanding at beginning of year: | 360,688 | $ | 43.06 | 168,125 | $ | 42.54 | 113,225 | $ | 35.77 | |||||||||||||||
Granted | 51,500 | 23.99 | 201,163 | 43.12 | 74,000 | 52.49 | ||||||||||||||||||
Exercised | (4,225 | ) | 21.46 | (2,600 | ) | 27.78 | (13,100 | ) | 32.44 | |||||||||||||||
Forfeited | (10,495 | ) | 44.53 | (6,000 | ) | 36.86 | (6,000 | ) | 59.62 | |||||||||||||||
Outstanding at end of year | 397,468 | $ | 40.78 | 360,688 | $ | 43.06 | 168,125 | $ | 42.54 | |||||||||||||||
Exercisable at end of year | 159,701 | $ | 40.71 | 118,025 | $ | 38.84 | 82,625 | $ | 34.45 |
A summary of the Company’s stock options outstanding at December 31, 20092017 follows:
|
| Outstanding |
|
| Exercisable |
| ||||||||||
Exercise Price Range |
| Options |
|
| Weighted average exercise price |
|
| Options |
|
| Weighted average exercise price |
| ||||
$30.00 – 39.99 |
|
| 500 |
|
| $ | 35.73 |
|
|
| 500 |
|
| $ | 35.73 |
|
$40.00 – 69.99 |
|
| 76,606 |
|
| $ | 44.68 |
|
|
| 76,606 |
|
| $ | 44.68 |
|
$70.00 – 91.58 |
|
| 17,500 |
|
| $ | 85.78 |
|
|
| 16,000 |
|
| $ | 86.71 |
|
Total |
|
| 94,606 |
|
| $ | 52.24 |
|
|
| 93,106 |
|
| $ | 51.85 |
|
Intrinsic value of outstanding stock options at December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 3,512,314 |
|
Intrinsic value of exercisable stock options at December 31, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
| $ | 3,492,589 |
|
Outstanding | Exercisable | |||||||||||||||
Weighted | Weighted | |||||||||||||||
average | average | |||||||||||||||
exercise | exercise | |||||||||||||||
Exercise Price Range | Options | price | Options | price | ||||||||||||
$20.375 — 29.99 | 72,750 | $ | 22.35 | 33,250 | $ | 21.88 | ||||||||||
$30.00 — 39.99 | 37,050 | $ | 35.05 | 22,050 | $ | 34.87 | ||||||||||
$40.00 — 57.79 | 287,668 | $ | 46.18 | 104,401 | $ | 47.94 | ||||||||||
Total | 397,468 | $ | 40.78 | 159,701 | $ | 40.71 | ||||||||||
Intrinsic value of outstanding stock options at December 31, 2009 | $ | 1,034,302 | ||||||||||||||
Intrinsic value of exercisable stock options at December 31, 2009 | $ | 505,412 |
The intrinsic value of stock options exercised during the years ended December 31, 2009, 2008,2017, 2016, and 2007, were $50,188, $37,691,2015 was $0.1 million, $0, and $346,306$1.4 million, respectively.
Proceeds from stock options exercised during the years ended December 31, 2017, 2016, and 2015 amounted to $0.1 million, $0, and $1.6 million, respectively.
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock at December 31, 2009,2017, or the price on the date of exercise for those exercised during the year. As of December 31, 2009,2017, there was approximately $1.0 million$7,000 of total unrecognized compensation cost related to non-vested share-basedstock option compensation arrangements granted under our stock award plans. That cost is expected to be recognized over a weighted-average period of approximately 4.60.5 years. The weighted average remaining contractual life of all options is 7.41.9 years, and for exercisable options is 5.81.8 years.
Non-vested Stock
The Company has also issued 348,732 shares of non-vested stock to employees which vest over twoone to nine year periods. During the restriction period, the non-vested shares may not be sold, transferred, or otherwise encumbered. The holder of the non-vested shares has all rights of a holder of common shares, including the right to vote and receive dividends. For issuances of non-vested stock during the year ended December 31, 2009,2017, the fair market value of the non-vested stock on the date of grant ranged from $21.82$74.36 to $35.15.$89.07. During 2009, 59,5902017, 51,276 shares of non-vested stock were issued to employees and directors with an aggregate fair value of $1.8$4.4 million. The Company charges additional paid-in capital for the marketfair value of shares as they are issued. The unearned portion is then amortized and chargedratably to expense over the vesting period. The Company uses the average of the high and
48
A summary of the status of unvested shares of stock issued to employees and directors as of and during the years ended December 31 follows:
|
| 2017 |
|
| 2016 |
|
| 2015 |
| |||||||||||||||
|
| Non-vested Shares |
|
| Weighted average grant date fair value |
|
| Non-vested Shares |
|
| Weighted average grant date fair value |
|
| Non-vested Shares |
|
| Weighted average grant date fair value |
| ||||||
Unvested at beginning of year: |
|
| 258,163 |
|
| $ | 58.89 |
|
|
| 305,520 |
|
| $ | 59.09 |
|
|
| 310,463 |
|
| $ | 51.93 |
|
Granted |
|
| 51,276 |
|
|
| 85.17 |
|
|
| 23,405 |
|
|
| 89.30 |
|
|
| 64,665 |
|
|
| 94.74 |
|
Vested |
|
| (96,615 | ) |
|
| 58.95 |
|
|
| (70,762 | ) |
|
| 69.82 |
|
|
| (69,187 | ) |
|
| 60.28 |
|
Forfeited |
|
| (42,015 | ) |
|
| 38.53 |
|
|
| — |
|
|
| — |
|
|
| (421 | ) |
|
| 76.07 |
|
Unvested at end of year |
|
| 170,809 |
|
| $ | 71.75 |
|
|
| 258,163 |
|
| $ | 58.89 |
|
|
| 305,520 |
|
| $ | 59.09 |
|
2009 | 2008 | 2007 | ||||||||||||||||||||||
Weighted | Weighted | Weighted | ||||||||||||||||||||||
average | average | Non- | average | |||||||||||||||||||||
Non-vested | grant date fair | Non-vested | grant date fair | vested | grant date fair | |||||||||||||||||||
Shares | value | Shares | value | Shares | value | |||||||||||||||||||
Unvested at beginning of year: | 130,807 | $ | 44.79 | 115,896 | $ | 45.54 | 96,453 | $ | 40.21 | |||||||||||||||
Granted | 59,590 | 29.70 | 45,713 | 41.50 | 43,989 | 53.79 | ||||||||||||||||||
Vested | (35,349 | ) | 41.25 | (30,802 | ) | 42.71 | (24,546 | ) | 39.39 | |||||||||||||||
Forfeited | (455 | ) | 43.95 | — | — | — | — | |||||||||||||||||
Unvested at end of year | 154,593 | $ | 39.79 | 130,807 | $ | 44.79 | 115,896 | $ | 45.54 |
Compensation expense of $1.4$7.1 million, $1.4$7.2 million, and $1.2$6.3 million was recognized for the vested portion of non-vested stock grants in 2009, 20082017, 2016, and 2007,2015, respectively. The fair value of non-vested stock that vested during 2009, 20082017, 2016, and 20072015 was $1.5$5.7 million, $1.3$4.9 million, and $1.0$4.2 million, respectively. The total unrecognized compensation cost related to non-vested stock was $5.2$8.2 million at December 31, 2009,2017, and the remaining weighted-average period over which this expense will be recognized was 5.64.2 years.
Performance-based awards
During 2017, 2016 and 2015, the Company granted performance-based awards that entitle the recipients to earn up to 48,762, 37,082 and 42,538 shares, respectively, if certain performance criteria are achieved over a three-year period. The actual number of shares to be issued will be determined at the end of a three year period, and no performance-based shares were issued in 2017, 2016 or 2015. The performance-based awards granted are based upon the Company’s performance over a three-year period depending on the Company’s total shareholder return relative to a group of peer companies. Performance based awards are recognized as compensation expense based on the fair value on the date of grant, the number of shares ultimately expected to vest and the vesting period. For accounting purposes, the performance shares are considered to have a market condition. The effect of the market condition is reflected in the grant date fair value of the award and thus, compensation expense is recognized on this type of award provided that the requisite service is rendered (regardless of whether the market condition is achieved). The Company estimated the fair value of each performance-based award granted under the Plans on the date of grant using a Monte Carlo simulation that uses the assumptions noted in Note 2.
During 2017, compensation expense of $2.6 million (included in the $7.1 million discussed above) was recognized for performance awards granted in 2017 and prior. The total unrecognized compensation cost related to non-vested performance awards was $3.0 million at December 31, 2017 and the weighted-average period over which this expense will be recognized is 1.9 years.
Deferred compensation plan for directors
Under the Deferred Compensation Plan for Directors, non-employee Directors may defer all or part of their Directors’ fees that are otherwise payable in cash. Directors’ fees that are deferred under this plan are credited to each Directors’ account under the plan in the form of Units. The number of Units credited is determined by dividing the amount of Directors’ fees deferred by the closing price of the Company’s Common Stock on the New York Stock Exchange on the day immediately preceding the day upon which Directors’ fees otherwise would be paid by the Company. A Director is credited with additional Units for dividends on the shares of Common Stock represented by Units in such Directors’ Account. A Director may elect to receive the shares in a lump sum on a date specified by the Director or in quarterly or annual installments over a specified period and commencing on a specified date. The Directors may not elect to receive cash in lieu of shares. Under this plan there were a total of 21,540 units outstanding at December 31, 2017. Fees that were earned and credited to Directors’ accounts are recorded as compensation expense and totaled $0.1 million annually in each of 2016 and 2015. No fees were elected to be deferred by any non-employee Directors in 2017.
10. RETIREMENT PLAN
Employees of the Operating PartnershipCompany qualifying under certain age and service requirements are eligible to be a participant in a 401(k) Plan. The Operating Partnership contributesIn 2015, the Company contributed to the Plan at the rate of 10%25% of the first 4% of gross wages that the employee contributes. Beginning on January 1, 2016, the Company contributes to the Plan at the rate of 33% of the first 5% of gross wages that the employee contributes. Total expense to the Operating PartnershipCompany was approximately $114,000, $284,000,$703,000, $505,000, and $256,000$276,000 for the years ended December 31, 2009, 20082017, 2016, and 2007,2015, respectively.
A summary of the Operating Partnership’s investment at December 31, 2009 was $19.9 million. Twenty five properties were acquired by Sovran HHFCompany’s unconsolidated joint ventures is as of December 31, 2008 for approximately $171.5 million. In 2008, the Operating Partnership contributed $18.6follows:
Venture |
| Number of Properties |
|
| Company common ownership interest |
|
| Carrying value of investment at Dec. 31, 2017 |
| Carrying value of investment at Dec. 31, 2016 | |
Sovran HHF Storage Holdings LLC (“Sovran HHF”)1 |
|
| 57 |
|
| 20% |
|
| $85.1 million |
| $43.8 million |
Sovran HHF Storage Holdings II LLC (“Sovran HHF II”)2 |
|
| 30 |
|
| 15% |
|
| $13.3 million |
| $13.5 million |
191 III Holdings LLC (“191 III”)3 |
|
| 6 |
|
| 20% |
|
| $9.4 million |
| $0.7 million |
Life Storage-SERS Storage LLC (“SERS”)4 |
|
| 3 |
|
| 20% |
|
| $3.6 million |
| N/A |
Iskalo Office Holdings, LLC (“Iskalo”)5 |
| N/A |
|
| 49% |
|
| ($0.4 million) |
| ($0.4 million) | |
Urban Box Coralway Storage, LLC (“Urban Box”)6 |
|
| 1 |
|
| 85% |
|
| $4.1 million |
| $4.1 million |
SNL/Orix 1200 McDonald Ave., LLC (“McDonald”)7 |
|
| 1 |
|
| 5% |
|
| $2.7 million |
| $2.7 million |
SNL Orix Merrick, LLC (“Merrick”)8 |
|
| 1 |
|
| 5% |
|
| $2.5 million |
| $2.5 million |
Review Avenue Partners, LLC (“RAP”)9 |
|
| 1 |
|
| 40% |
|
| $11.5 million |
| N/A |
N 32nd Street Self Storage, LLC (“N32”)10 |
|
| 1 |
|
| 46% |
|
| $1.3 million |
| N/A |
1 | Sovran HHF owns self-storage facilities in Arizona (11), Colorado (4), Florida (3), Georgia (1), Kentucky (2), Nevada (5), New Jersey (2), Ohio (6), Pennsylvania (1), Tennessee (2) and Texas (20). In June 2017, Sovran HHF acquired 18 self-storage facilities for $330 million in Arizona, Nevada and Tennessee. In connection with this acquisition, Sovran HHF entered into $135 million of mortgage debt which is secured by 16 of the self-storage facilities acquired. During the year ended December 31, 2017, the Company contributed $39.6 million as its share of capital to fund the acquisition, $3.6 million to fund the repayment of certain mortgages held by the joint venture, and an additional $0.1 million to fund capital projects. During the year ended December 31, 2017, the Company received $4.5 million of distributions from Sovran HHF. As of December 31, 2017, the carrying value of the Company’s investment in Sovran HHF exceeds its share of the underlying equity in net assets of Sovran HHF by approximately $1.7 million as a result of the capitalization of certain acquisition related costs in 2008. This difference is included in the carrying value of the investment. |
2 | Sovran HHF II owns self-storage facilities in New Jersey (17), Pennsylvania (3), and Texas (10). During the year ended December 31, 2017, the Company received $1.7 million of distributions from Sovran HHF II. |
3 | 191 III owns six self-storage facilities in California. During 2017, 191 III acquired these six self-storage facilities for a total of $104.1 million. In connection with the acquisition of these self-storage facilities, 191 III entered into $57.2 million of mortgage debt which is secured by the self-storage facilities acquired. During 2017 and 2016, the Company contributed $9.3 million and $0.7 million, respectively, as its share of capital to fund these acquisitions. During the year ended December 31, 2017, the Company received $0.5 million of distributions from 191 III. |
4 | In May 2017, the Company executed a joint venture agreement, Life Storage-SERS Storage LLC (“SERS”), with an unrelated third party with the purpose of acquiring and operating self-storage facilities. SERS owns three self-storage facilities in Georgia. During 2017, SERS acquired these three self-storage facilities for a total of $39.1 million. In connection with the acquisition of these self-storage facilities, SERS entered into $22.0 million of mortgage debt which is secured by the self-storage facilities acquired. During 2017, the Company contributed $3.6 million as its share of capital to fund these acquisitions. |
5 | Iskalo owns the building that houses the Company’s headquarters and other tenants. The Company paid rent to Iskalo of $1.2 million, $1.2 million and $1.1 million during the years ended December 31, 2017, 2016, and 2015, respectively. During the year ended December 31, 2017, the Company received $0.2 million of distributions from Iskalo. |
6 | Urban Box is currently developing a self-storage facility in Florida. |
7 | McDonald is currently developing a self-storage facility in New York. During 2016, the Company contributed $0.4 million of common capital and $2.3 million of preferred capital to McDonald as its share of capital to develop the property. McDonald entered into a non-recourse mortgage loan in order to finance the future development costs, with $6.4 million of principal outstanding at December 31, 2017. |
8 | Merrick owns a self-storage facility in New York. During 2016, the Company contributed $0.4 million of common capital and $2.1 million of preferred capital to Merrick as its share of capital to develop the property. Merrick has entered into a non-recourse mortgage loan with $9.3 million of principal outstanding at December 31, 2017. |
9 | In January 2017, the Company executed a joint venture agreement, Review Avenue Partners, LLC (“RAP”), with an unrelated third party. The Company contributed $12.5 million of common capital to RAP during the year ended December 31, 2017. RAP is currently operating a self-storage property in New York. |
10 | In April 2017, the Company executed a joint venture agreement, N 32nd Street Self Storage, LLC (“N32”), with an unrelated third party. The Company contributed $1.3 million of common capital to N32 during the year ended December 31, 2017. N32 is currently developing a self-storage property in Arizona. |
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 as its share of capital required to fund the acquisitions. As of December 31, 2009, the carrying valueagreements, none of the Operating Partnership’s investment in Sovran HHF exceeds its sharejoint ventures are consolidated by the Company. Due to the Company’s significant influence over the operations of each of the underlyingjoint ventures, all joint ventures are accounted for under the equity in net assetsmethod of Sovran HHF by approximately $1.7 million as a resultaccounting.
The carrying values of the capitalization of certain acquisition related costs. This difference is not amortized, it is includedCompany’s investments in the carrying value of the investment, which isjoint ventures are assessed for other-than-temporary impairment on a periodic basis.
The Company earns management and/or call center fees ranging from 6% to 7% of joint venture gross revenues as manager of Sovran HHF, HHF II, 191 III, SERS, RAP and Merrick. These fees, which are included in other operating income in the Operating Partnership earns a management and call center feeconsolidated statements of 7% of gross revenues whichoperations, totaled $1.2$6.6 million, $4.9 million and $0.5$4.9 million for 2009in 2017, 2016 and 2008,2015 respectively. The Operating PartnershipCompany will also received an acquisition feeearn management fees upon commencement of 0.5% or $0.7 millionthe operation of purchase price for securing purchases for the joint venture in 2008. storage facilities owned by Urban Box, McDonald, and N32.
The Operating Partnership’sCompany’s share of Sovran HHF’s income for 2009 and 2008 was $0.2 million and $0.1 million, respectively. At December 31, 2009, Sovran HHF owed the Operating Partnership $0.2 million for payments made by the Operating Partnership on behalf of theunconsolidated joint venture.
49
(dollars in thousands) Venture |
| Year Ended December 31, 2017 |
|
| Year Ended December 31, 2016 |
|
| Year Ended December 31, 2015 |
| |||
Sovran HHF |
| $ | 2,517 |
|
| $ | 2,033 |
|
| $ | 1,953 |
|
Sovran HHF II |
|
| 1,530 |
|
|
| 1,403 |
|
|
| 1,263 |
|
191 III |
|
| 13 |
|
|
| — |
|
|
| — |
|
SERS |
|
| (12 | ) |
|
| — |
|
|
| — |
|
Urban Box |
|
| — |
|
|
| 15 |
|
|
| — |
|
RAP |
|
| (967 | ) |
|
| — |
|
|
| — |
|
Iskalo |
|
| 233 |
|
|
| 214 |
|
|
| 189 |
|
|
| $ | 3,314 |
|
| $ | 3,665 |
|
| $ | 3,405 |
|
A summary of the combined unconsolidated joint ventures’ financial statements as of and for the year ended December 31, 20092017 is as follows:
(dollars in thousands) |
|
|
|
|
Balance Sheet Data: |
|
|
|
|
Investment in storage facilities, net |
| $ | 1,075,101 |
|
Investment in office building, net |
|
| 4,810 |
|
Other assets |
|
| 16,622 |
|
Total Assets |
| $ | 1,096,533 |
|
Due to the Company |
| $ | 1,397 |
|
Mortgages payable |
|
| 459,028 |
|
Other liabilities |
|
| 10,721 |
|
Total Liabilities |
| $ | 471,146 |
|
Unaffiliated partners’ equity |
|
| 492,332 |
|
Company equity |
|
| 133,055 |
|
Total Partners’ Equity |
|
| 625,387 |
|
Total Liabilities and Partners’ Equity |
| $ | 1,096,533 |
|
Income Statement Data: |
|
|
|
|
Total revenues |
| $ | 96,301 |
|
Property operating expenses |
|
| (31,008 | ) |
Administrative, management and call center fees |
|
| (7,668 | ) |
Depreciation and amortization of customer list |
|
| (21,165 | ) |
Amortization of financing fees |
|
| (810 | ) |
Income tax expense |
|
| (252 | ) |
Interest expense |
|
| (14,571 | ) |
Net income |
| $ | 20,827 |
|
Sovran HHF | ||||||||
Storage | Iskalo Office | |||||||
(dollars in thousands) | Holdings LLC | Holdings, LLC | ||||||
Balance Sheet Data: | ||||||||
Investment in storage facilities, net | $ | 168,237 | $ | — | ||||
Investment in office building | — | 5,322 | ||||||
Other assets | 3,575 | 688 | ||||||
Total Assets | $ | 171,812 | $ | 6,010 | ||||
Due to the Operating Partnership | $ | 173 | $ | — | ||||
Mortgages payable | 78,512 | 7,037 | ||||||
Other liabilities | 2,087 | 224 | ||||||
Total Liabilities | 80,772 | 7,261 | ||||||
Unaffiliated partners’ equity (deficiency) | 72,832 | (714 | ) | |||||
Operating Partnership equity (deficiency) | 18,208 | (537 | ) | |||||
Total Liabilities and Partners’ Equity (deficiency) | $ | 171,812 | $ | 6,010 | ||||
Income Statement Data: | ||||||||
Total revenues | $ | 17,702 | $ | 1,129 | ||||
Total expenses | 16,761 | 1,115 | ||||||
Net income | $ | 941 | $ | 14 | ||||
The Operating PartnershipCompany does not guarantee the debt of Sovran HHF or Iskalo Office Holdings, LLC.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. A summary of our revenues, expenses and cash flows arising from the off-balance sheet arrangements with unconsolidated joint ventures for the three years ended December 31, 2017 are as follows:
|
| Year ended December 31, |
| |||||||||
(dollars in thousands) |
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Other operating income (management fees and acquisition fee income) |
| $ | 8,090 |
|
| $ | 4,891 |
|
| $ | 4,889 |
|
General and administrative expenses (corporate office rent) |
|
| 1,192 |
|
|
| 1,214 |
|
|
| 1,053 |
|
Equity in income of joint ventures |
|
| 3,314 |
|
|
| 3,665 |
|
|
| 3,405 |
|
Distributions from unconsolidated joint ventures |
|
| 7,055 |
|
|
| 5,207 |
|
|
| 4,821 |
|
Advances to joint ventures |
|
| (174 | ) |
|
| (294 | ) |
|
| (346 | ) |
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Investment in unconsolidated joint ventures |
|
| (69,911 | ) |
|
| (6,438 | ) |
|
| (6,151 | ) |
12. SHAREHOLDERS’ EQUITY
On October 5, 2009,March 3, 2015, the Company completed the public offering of 4,025,0001,380,000 shares of its common stock at $29.75$90.40 per share. Net proceeds to the Operating PartnershipCompany after deducting underwriting discounts and commissions and offering expenses were approximately $114.0$119.5 million.
On January 20, 2016, the Company completed the public offering of 2,645,000 shares of its common stock at $105.75 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $269.7 million.
On May 25, 2016, the Company completed the public offering of 6,900,000 shares of its common stock at $100.00 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $665.4 million.
Until May 2017, the Company had maintained a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC, Jefferies LLC (“Jeffries”), SunTrust Robinson Humphrey, Inc., Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC, pursuant to which the Company could sell up to $225 million in aggregate offering price of shares of the Company’s common stock. The Equity Program expired in May 2017.
During 2009,2017 and 2016, the Company did not issue any shares of common stock under the Equity Program.
During 2015, the Company issued 1,430,521949,911 shares via its Dividend Reinvestment and Stock Purchase Plan. The Operating Partnership received $32.6 million fromof common stock under the saleEquity Program at a weighted average issue price of such shares. During 2008 and 2007, the Operating Partnership issued 285,308 and 252,816 shares, respectively, via this plan and received$96.80 per share, generating net proceeds of approximately $10.7$90.6 million after deducting $1.1 million of sales commissions paid to Jefferies, Piper, and $12.8HSBC, as well as other expenses of $0.2 million.
On August 2, 2017, the Company’s Board of Directors authorized the repurchase of up to $200 million respectively.of the Company’s outstanding common shares (“Buyback Program”). The Company’s Dividend Reinvestment and Stock Purchase Plan was suspended in November 2009.
In 2013, the Series C Preferred Stock requestingCompany implemented a Dividend Reinvestment Plan. The Company issued 199,809, 133,666 and 151,246 shares under the conversionplan in 2017, 2016, and 2015, respectively. On August 2, 2017, the Company’s Board of 1,200,000 shares of Series C Preferred Stock into common stock. On July 7, 2007, we issued 920,244 shares of our common stock toDirectors suspended the holder of our Series C Preferred Stock upon the holder’s election to convert the remaining 1,200,000 shares of Series C Preferred Stock into common stock.Dividend Reinvestment Plan.
50
The following is a summary of quarterly results of Life Storage, Inc. operations for the years ended December 31, 20092017 and 20082016 (dollars in thousands, except per share data):
|
| 2017 Quarter Ended |
| |||||||||||||
|
| Mar. 31 |
|
| Jun. 30 |
|
| Sept. 30 |
|
| Dec. 31 |
| ||||
Operating revenue |
| $ | 128,320 |
|
| $ | 132,784 |
|
| $ | 135,568 |
|
| $ | 133,078 |
|
Net income |
|
| 20,525 |
|
|
| 19,432 |
|
|
| 35,667 |
|
|
| 21,185 |
|
Net income attributable to common shareholders |
|
| 20,429 |
|
|
| 19,355 |
|
|
| 35,496 |
|
|
| 21,085 |
|
Net income per share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.44 |
|
| $ | 0.42 |
|
| $ | 0.76 |
|
| $ | 0.45 |
|
Diluted |
| $ | 0.44 |
|
| $ | 0.42 |
|
| $ | 0.76 |
|
| $ | 0.45 |
|
|
| 2016 Quarter Ended |
| |||||||||||||
|
| Mar. 31 |
|
| Jun. 30 |
|
| Sept. 30 |
|
| Dec. 31 |
| ||||
Operating revenue |
| $ | 99,124 |
|
| $ | 107,005 |
|
| $ | 127,801 |
|
| $ | 128,678 |
|
Net income (loss) |
|
| 28,230 |
|
|
| 43,504 |
|
|
| (4,969 | ) |
|
| 18,191 |
|
Net income (loss) attributable to common shareholders |
|
| 28,339 |
|
|
| 43,456 |
|
|
| (4,738 | ) |
|
| 18,168 |
|
Net income (loss) per share attributable to common shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.74 |
|
| $ | 1.04 |
|
| $ | (0.10 | ) |
| $ | 0.39 |
|
Diluted |
| $ | 0.73 |
|
| $ | 1.03 |
|
| $ | (0.10 | ) |
| $ | 0.39 |
|
The following is a summary of quarterly results of Life Storage LP operations for the years ended December 31, 2017 and 2016 (dollars in thousands, except per unit data).:
|
| 2017 Quarter Ended |
| |||||||||||||
|
| Mar. 31 |
|
| Jun. 30 |
|
| Sept. 30 |
|
| Dec. 31 |
| ||||
Operating revenue |
| $ | 128,320 |
|
| $ | 132,784 |
|
| $ | 135,568 |
|
| $ | 133,078 |
|
Net income |
|
| 20,525 |
|
|
| 19,432 |
|
|
| 35,667 |
|
|
| 21,185 |
|
Net income attributable to common unitholders |
|
| 20,429 |
|
|
| 19,355 |
|
|
| 35,496 |
|
|
| 21,085 |
|
Net income per unit attributable to common unitholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.44 |
|
| $ | 0.42 |
|
| $ | 0.76 |
|
| $ | 0.45 |
|
Diluted |
| $ | 0.44 |
|
| $ | 0.42 |
|
| $ | 0.76 |
|
| $ | 0.45 |
|
2009 Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 (b) | |||||||||||||
Operating revenue | $ | 48,846 | $ | 48,097 | $ | 49,551 | $ | 48,517 | ||||||||
Income (loss) from continuing operations (a) | $ | 7,873 | $ | 6,436 | $ | 8,722 | $ | (593 | ) | |||||||
(Loss) income from discontinued operations (a) | $ | 247 | $ | 306 | $ | (752 | ) | $ | (585 | ) | ||||||
Net Income(Loss) | $ | 8,120 | $ | 6,742 | $ | 7,970 | $ | (1,178 | ) | |||||||
Net income (loss) attributable to common unitholders | $ | 7,780 | $ | 6,402 | $ | 7,630 | $ | (1,518 | ) | |||||||
Net Income (Loss) Per Unit Attributable to Common Unitholders | ||||||||||||||||
Basic | $ | 0.35 | $ | 0.28 | $ | 0.32 | $ | (0.06 | ) | |||||||
Diluted | $ | 0.35 | $ | 0.28 | $ | 0.32 | $ | (0.06 | ) |
|
| 2016 Quarter Ended |
| |||||||||||||
|
| Mar. 31 |
|
| Jun. 30 |
|
| Sept. 30 |
|
| Dec. 31 |
| ||||
Operating revenue |
| $ | 99,124 |
|
| $ | 107,005 |
|
| $ | 127,801 |
|
| $ | 128,678 |
|
Net income |
|
| 28,230 |
|
|
| 43,504 |
|
|
| (4,969 | ) |
|
| 18,191 |
|
Net income attributable to common unitholders |
|
| 28,339 |
|
|
| 43,456 |
|
|
| (4,738 | ) |
|
| 18,168 |
|
Net income per unit attributable to common unitholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.74 |
|
| $ | 1.04 |
|
| $ | (0.10 | ) |
| $ | 0.39 |
|
Diluted |
| $ | 0.73 |
|
| $ | 1.03 |
|
| $ | (0.10 | ) |
| $ | 0.39 |
|
See note 4 for a discussion of property acquisitions made during 2016 and the depreciation resulting from the change in estimated useful lives of Uncle Bob’s Self Storage ® signage and buildings identified for replacement at certain of the Company’s self-storage facilities. See note 5 for financing transactions entered into in 2017 and 2016.
2008 Quarter Ended | ||||||||||||||||
March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
Operating revenue (a) | $ | 48,925 | $ | 49,421 | $ | 51,769 | $ | 50,078 | ||||||||
Income from continuing operations (a) | $ | 9,271 | $ | 10,166 | $ | 9,743 | $ | 8,623 | ||||||||
Income from discontinued operations (a) | $ | 318 | $ | 1,000 | $ | 308 | $ | 254 | ||||||||
Net Income | $ | 9,589 | $ | 11,166 | $ | 10,051 | $ | 8,877 | ||||||||
Net income attributable to common unitholders | $ | 9,127 | $ | 10,745 | $ | 9,711 | $ | 8,537 | ||||||||
Net Income Per Unit Attributable to Common Unitholders | ||||||||||||||||
Basic | $ | 0.41 | $ | 0.49 | $ | 0.44 | $ | 0.38 | ||||||||
Diluted | $ | 0.41 | $ | 0.48 | $ | 0.44 | $ | 0.38 |
The Operating Partnership’sCompany’s current practice is to conduct environmental investigations in connection with property acquisitions. At this time, the Operating PartnershipCompany is not aware of any environmental contamination of any of its facilities that individually or in the aggregate would be material to the Operating Partnership’sCompany’s overall business, financial condition, or results of operations.
Future minimum lease payments on a building lease, the lease of the Company’s headquarters and the lease of a self-storage facility are as follows (dollars in thousands):
Year ending December 31: |
|
|
|
|
2018 |
| $ | 2,894 |
|
2019 |
|
| 2,788 |
|
2020 |
|
| 2,415 |
|
2021 |
|
| 2,284 |
|
2022 |
|
| 2,284 |
|
Thereafter |
|
| 11,114 |
|
Total |
| $ | 23,779 |
|
At December 31, 2009, we have a contract2017, the Company has signed contracts in place with third party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $32.8 million under these contracts in 2018.
On or about August 25, 2014, a potential buyerputative class action was filed against the Company in the Superior Court of New Jersey Law Division Burlington County. The action seeks to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of various statutory laws. On October 17, 2014, the action was removed from the Superior Court of New Jersey Law Division Burlington County to the United States District Court for the possible saleDistrict of two propertiesNew Jersey. The Company brought a motion to partially dismiss the complaint for approximately $2.4failure to state a claim, and on July 16, 2015, the Company’s motion was granted in part and denied in part. On October 20, 2016, the complaint was amended to add additional claims. The parties have entered into a memorandum of understanding to settle all claims for an aggregate amount of $8.0 million. In February 2018, the motion for the preliminary approval of the proposed class action settlement was granted. The saleaggregate settlement amount of these properties$8.0 million ($6.0 million after considering income tax impact) has been recorded as a liability in the Company’s consolidated balance sheet. A portion of the settlement expense relates to self-storage facilities that are managed by the Company through its taxable REIT subsidiary. There is an income tax impact to the Company on that portion of the settlement expense as a result. The settlement is subject to significant contingencies as of December 31, 2009, includingfinal approval by the potential buyer’s satisfactory completion of an inspection of the properties and the buyer securing funds from its lender to finance the transaction. While there can be no assurances that we will successfully complete the sale of these properties, based upon the status of our dealings with the potential buyer, the sale of these propertiescourt, a decision which is expected to close in March 2010. Should these sales occur, the Operating Partnership would recognize a loss of approximately $0.1 million on the disposal of these properties in the first quarter of 2010.
51
On January 4, 2010,3, 2018, the Operating PartnershipCompany declared a quarterly distributiondividend of $0.45$1.00 per common unit.share. The distributiondividend was paid on January 26, 20102018 to unitholdersshareholders of record on January 14, 2010.16, 2018. The total distributiondividend paid amounted to $12.4$46.5 million.
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure |
52None.
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
The Parent Company’s management conducted an evaluation of the effectiveness of the design and operation of ourthe Parent Company’s disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), under the supervision of and with the participation of ourthe Parent Company’s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, ourthe Parent Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that ourthe Parent Company’s disclosure controls and procedures were effective at December 31, 2009.2017. There have not been changes in the Operating Partnership’sParent Company’s internal controls or in other factors that could significantly affect these controls during the quarter ended December 31, 2009.
Management’s Report on Life Storage, Inc. Internal Control Over Financial Reporting
Management of Life Storage, Inc. (the “Parent Company”) is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2009. Internal2017. The Parent Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. OurThe Parent Company’s system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Operating Partnership;Parent Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Operating PartnershipParent Company are being made only in accordance with authorizations of management and directors of the company;Parent Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Operating Partnership’sParent Company’s assets that could have a material effect on the financial statements.
The Parent Company’s management performed an assessment of the effectiveness of ourthe Parent Company’s internal control over financial reporting as of December 31, 20092017 based upon criteria in Internal Control —– Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (''COSO’’(2013 Framework) (“COSO”). Based on our assessment, management determined that ourthe Parent Company’s internal control over financial reporting was effective as of December 31, 20092017 based on the criteria in Internal Control-Integrated Framework issued by COSO.
The effectiveness of the Operating Partnership’sParent Company’s internal control over financial reporting as of December 31, 20092017 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included in Item 9A herein.
/S/ David L. Rogers | /S/ Andrew J. Gregoire | |||
Chief Executive Officer | Chief Financial Officer |
53
To the Shareholders and the Board of Directors and Partners of Sovran Acquisition Limited Partnership
Opinion on Internal Control over Financial Reporting
We have audited Sovran Acquisition Limited Partnership’sLife Storage, Inc.’s internal control over financial reporting as of December 31, 2009,2017, based on criteria established in Internal Control—Control���Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Sovran Acquisition Limited Partnership’sIn our opinion, Life Storage, Inc. (the Parent Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on the COSO criteria.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Parent Company as of December 31, 2017 and 2016, the related consolidated statements of operations, comprehensive income, shareholders’ equity and cash flows for each of the three years in the period ended December 31, 2017, and the related notes and schedule and our report dated February 27, 2018 expressed an unqualified opinion thereon.
Basis for Opinion
The Parent Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Life Storage, Inc. Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company’sParent Company’s internal control over financial reporting based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States).PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Buffalo, New York
February 27, 2018
Controls and Procedures (Operating Partnership)
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
The Operating Partnership’s management conducted an evaluation of the effectiveness of the design and operation of the Operating Partnership’s disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (Exchange Act), under the supervision of and with the participation of the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, the Operating Partnership’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Operating Partnership’s disclosure controls and procedures were effective at December 31, 2017. 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 December 31, 2017.
Management’s Report on Life Storage LP Internal Control Over Financial Reporting
Management of Life Storage LP (the “Operating Partnership”) is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2017. The Operating Partnership’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Operating Partnership’s system of internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Operating Partnership; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Operating Partnership are being made only in accordance with authorizations of management and directors of the Operating Partnership; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Operating Partnership’s assets that could have a material effect on the financial statements.
The Operating Partnership’s management performed an assessment of the effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, 2017 based upon criteria in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (“COSO”). Based on our assessment, management determined that the Operating Partnership’s internal control over financial reporting was effective as of December 31, 2017 based on the criteria in Internal Control-Integrated Framework issued by COSO.
The effectiveness of the Operating Partnership’s internal control over financial reporting as of December 31, 2017 has been audited by Ernst & Young LLP, an independent registered public accounting firm, as stated in their report which is included in Item 9A herein.
/S/ David L. Rogers | /S/ Andrew J. Gregoire | |
Chief Executive Officer | Chief Financial Officer |
Report of Independent Registered Public Accounting Firm
To the Partners and the Board of Directors of Life Storage LP
Opinion on Internal Control over Financial Reporting
We have audited Life Storage LP’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Sovran Acquisition Limited PartnershipLife Storage LP (the Operating Partnership) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009,2017, based on the COSO criteria.
We have also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Sovran Acquisition Limitedthe Operating Partnership as of December 31, 20092017 and 2008, and2016, the related consolidated statements of operations, comprehensive income, partners’ capital and comprehensive income, and cash flows for each of the three years in the period ended December 31, 2009 of Sovran Acquisition Limited Partnership2017, and the related notes and schedule and our report dated February 26, 201027, 2018 expressed an unqualified opinion thereon.
Basis for Opinion
The Operating Partnership’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Life Storage LP Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Operating Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Operating Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
The information contained in the Parent Company’s Proxy Statement for the 2018 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the Company to be held on May 26, 2010,fiscal year ended December 31, 2017 (“2018 Proxy Statement”), with respect to directors, executive officers, audit committee, and audit committee financial experts of the Company and Section 16(a) beneficial ownership reporting compliance, is incorporated herein by reference in response to this item.
The Operating PartnershipCompany has adopted a code of ethics that applies to all of its directors, officers, and employees. The Operating PartnershipCompany has made the Code of Ethics available on its website at http://www.sovranss.com.www.lifestorage.com.
The information required is incorporated by reference to “Executive Compensation” and “Director Compensation” in the Company’s2018 Proxy Statement for the Annual Meeting of Shareholders of the Company to be held on May 26, 2010.
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
The information required herein is incorporated by reference to “Stock Ownership By Directors and Executive Officers” and “Security Ownership of Certain Beneficial Owners” in the 2018 Proxy Statement for the Annual Meeting of Shareholders of the Company to be held on May 26, 2010.
55
56
The information required herein is incorporated by reference to “Appointment of Independent Auditor”Registered Public Accounting Firm” in the Company’s2018 Proxy Statement for the Annual Meeting of Shareholders to be held on May 26, 2010.and is incorporated herein by reference.
(a) | Documents filed as part of this Annual Report on Form 10-K: |
1. | The following consolidated financial statements of |
(i) | Consolidated Balance Sheets as of December 31, |
(ii) | Consolidated Statements of Operations for Years Ended December 31, |
(iii) | Consolidated Statements of |
(iv) | Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2017, 2016 and 2015; |
(v) | Consolidated Statements of Cash Flows for Years Ended December 31, |
(vi) | Notes to Consolidated Financial Statements. |
57The following consolidated financial statements of Life Storage LP are included in Item 8.
(i) | Consolidated Balance Sheets as of December 31, 2017 and 2016; |
(ii) | Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 and 2015; |
(iii) | Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 and 2015; |
(iv) | Consolidated Statements of Partners’ Capital for the Years Ended December 31, 2017, 2016 and 2015;. |
(v) | Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 and 2015; and |
(vi) | Notes to Consolidated Financial Statements. |
2. | The following financial statement Schedule as of the period ended December 31, | |
Schedule III Real Estate and Accumulated Depreciation at December 31, 2017.
All other Consolidated financial schedules are omitted because they are inapplicable, not required, or the information is included elsewhere in the consolidated financial statements or the notes thereto.
The exhibits required to be filed as part of this Annual Report on Form 10-K have been included as follows:
3.1* | Amended and Restated Articles of Incorporation of the Parent Company. | |
3.2 | ||
3.3 | ||
3.4 | ||
3.5 | ||
3.6 | ||
3.7 | ||
3.8 | ||
3.9 | ||
3.10 | ||
3.11 | ||
3.12 | ||
4.1 | Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Parent Company’s Registration Statement on Form S-11 (File No. 33-91422) filed June 19, 1995). P | |
4.2 | ||
4.3 | ||
4.4 | ||
4.5 | ||
4.6 | ||
4.7 | ||
4.8 | ||
10.1+ | ||
10.2+ |
10.3+ | |||
10.4+ | |||
10.5+ | |||
10.6+ | |||
10.7+ | |||
10.8+ | |||
10.9+ | |||
10.10+ | |||
10.11+ | |||
10.12+ | |||
10.13+ | |||
10.14+ | |||
10.15 | |||
10.16 | |||
10.17 | |||
10.18 | |||
10.19* | |||
10.20 | |||
10.21 | |||
10.22 | |||
10.24* | ||
10.25* | ||
10.26 | ||
10.27* | ||
10.28+ | ||
10.29+ | ||
10.30+ | ||
10.31+ | ||
10.32+ | ||
10.33+ | ||
10.34+ | ||
10.35+ | ||
10.36+ | ||
10.37 | ||
10.38 | ||
10.39 | ||
10.40 | ||
10.41+ | ||
10.42+ | ||
10.43+ | ||
10.44+ | ||
58
10.46+ | ||
10.47 | ||
10.48+ | ||
10.49+ | ||
10.50+ | ||
10.51+ | ||
12.1* | ||
21.1* | ||
23.1* | ||
23.2* | ||
24.1* | ||
31.1* | ||
31.2* | ||
31.3* | ||
31.4* | ||
32.1* | ||
32.2* | ||
101* | The following financial statements from the Life Storage, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL, as follows: (i) Consolidated Balance Sheets at December 31, 2017 and 2016; (ii) Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 and 2015; (iii) Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 and 2015; (iv) Consolidated Statements of Shareholders’ Equity for Years Ended December 31, 2017, 2016 and 2015; (v) Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 and 2015; and (vi) Notes to Consolidated Financial Statements | |
The following financial statements from the Life Storage LP’s Annual Report on Form 10-K for the year ended December 31, 2017, formatted in XBRL, as follows: (i) Consolidated Balance Sheets at December 31, 2017 and 2016; (ii) Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 and 2015; (iii) Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 and 2015; (iv) Consolidated Statements of Partners’ Capital for Years Ended December 31, 2017, 2016 and 2015; (v) Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 and 2015; and | ||
(vi) Notes to Consolidated Financial Statements | |||
* | Filed herewith. | ||
+ | Management contract or compensatory plan or arrangement. |
59
Not applicable.
February 27, 2018 | LIFE STORAGE, INC. | |||||
By: | /s/ Andrew J. Gregoire | |||||
Andrew J. Gregoire Chief Financial Officer | (Principal Accounting Officer) | |||||
February 27, 2018 | LIFE STORAGE LP | |||||
By: | /s/ Andrew J. Gregoire | |||||
Andrew J. Gregoire Chief Financial Officer (Principal Accounting Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Sovran Holdings, Inc., as general partner of the registrant and in the capacities and on the dates indicated.
Signature | Title | Date | ||
/s/ Robert J. Attea | Chairman of Board and Director of Life Storage, Inc. | February 27, 2018 | ||
Robert J. Attea | and Life Storage Holdings, Inc., general partner of | |||
/s/ Kenneth F. Myszka | President and Director of Life Storage, Inc. and Life Storage | February 27, 2018 | ||
Kenneth F. Myszka | Holdings, Inc., general partner of Life Storage LP | |||
/s/ David L. Rogers | Chief Executive Officer (Principal Executive Officer) of Life | February 27, 2018 | ||
David L. Rogers | Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | |||
/s/ Andrew J. Gregoire | Chief Financial Officer (Principal | February | ||
Andrew J. Gregoire | Officer) of Life Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | |||
/s/ Charles E. Lannon | Director of Life Storage, Inc. | February | ||
Charles E. Lannon | ||||
/s/ Stephen R. Rusmisel | Director of Life Storage, Inc. | February 27, 2018 | ||
Stephen R. Rusmisel | ||||
/s/ Arthur L. Havener, Jr. | Director of Life Storage, Inc. | February 27, 2018 | ||
Arthur L. Havener, Jr. | ||||
/s/ Mark G. Barberio | Director of Life Storage, Inc. | February 27, 2018 | ||
Mark G. Barberio | ||||
/s/ Carol Hansell | Director of Life Storage, Inc. | February 27, 2018 |
60
Combined Real Estate and Accumulated Depreciation
(in thousands)
December 31, 20092017
|
|
|
|
|
| Initial Cost to Company |
|
| Cost Capitalized Subsequent to Acquisition |
|
| Gross Amount at Which Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| Life on which depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Charleston |
| SC |
|
|
| $ | 416 |
|
| $ | 1,516 |
|
| $ | 2,370 |
|
| $ | 416 |
|
| $ | 3,886 |
|
| $ | 4,302 |
|
| $ | 1,683 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Lakeland |
| FL |
|
|
|
| 397 |
|
|
| 1,424 |
|
|
| 1,704 |
|
|
| 397 |
|
|
| 3,128 |
|
|
| 3,525 |
|
|
| 1,375 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Charlotte |
| NC |
|
|
|
| 308 |
|
|
| 1,102 |
|
|
| 3,534 |
|
|
| 747 |
|
|
| 4,197 |
|
|
| 4,944 |
|
|
| 1,357 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Youngstown |
| OH |
|
|
|
| 239 |
|
|
| 1,110 |
|
|
| 2,582 |
|
|
| 239 |
|
|
| 3,692 |
|
|
| 3,931 |
|
|
| 1,379 |
|
| 1980 |
| 6/26/1995 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 701 |
|
|
| 1,659 |
|
|
| 3,825 |
|
|
| 1,036 |
|
|
| 5,149 |
|
|
| 6,185 |
|
|
| 1,538 |
|
| 1987/15 |
| 6/26/1995 |
| 5 to 40 years |
Pt. St. Lucie |
| FL |
|
|
|
| 395 |
|
|
| 1,501 |
|
|
| 1,054 |
|
|
| 779 |
|
|
| 2,171 |
|
|
| 2,950 |
|
|
| 1,259 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Orlando - Deltona |
| FL |
|
|
|
| 483 |
|
|
| 1,752 |
|
|
| 2,324 |
|
|
| 483 |
|
|
| 4,076 |
|
|
| 4,559 |
|
|
| 1,875 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
NY Metro-Middletown |
| NY |
|
|
|
| 224 |
|
|
| 808 |
|
|
| 4,442 |
|
|
| 224 |
|
|
| 5,250 |
|
|
| 5,474 |
|
|
| 996 |
|
| 1988/17 |
| 6/26/1995 |
| 5 to 40 years |
Buffalo |
| NY |
|
|
|
| 423 |
|
|
| 1,531 |
|
|
| 3,620 |
|
|
| 497 |
|
|
| 5,077 |
|
|
| 5,574 |
|
|
| 2,080 |
|
| 1981 |
| 6/26/1995 |
| 5 to 40 years |
Rochester |
| NY |
|
|
|
| 395 |
|
|
| 1,404 |
|
|
| (141 | ) |
|
| 395 |
|
|
| 1,263 |
|
|
| 1,658 |
|
|
| 731 |
|
| 1981 |
| 6/26/1995 |
| 5 to 40 years |
Jacksonville |
| FL |
|
|
|
| 152 |
|
|
| 728 |
|
|
| 3,883 |
|
|
| 687 |
|
|
| 4,076 |
|
|
| 4,763 |
|
|
| 1,189 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Columbia |
| SC |
|
|
|
| 268 |
|
|
| 1,248 |
|
|
| 775 |
|
|
| 268 |
|
|
| 2,023 |
|
|
| 2,291 |
|
|
| 1,051 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Boston |
| MA |
|
|
|
| 363 |
|
|
| 1,679 |
|
|
| 885 |
|
|
| 363 |
|
|
| 2,564 |
|
|
| 2,927 |
|
|
| 1,341 |
|
| 1980 |
| 6/26/1995 |
| 5 to 40 years |
Rochester |
| NY |
|
|
|
| 230 |
|
|
| 847 |
|
|
| 2,322 |
|
|
| 234 |
|
|
| 3,165 |
|
|
| 3,399 |
|
|
| 939 |
|
| 1980 |
| 6/26/1995 |
| 5 to 40 years |
Boston |
| MA |
|
|
|
| 680 |
|
|
| 1,616 |
|
|
| 878 |
|
|
| 680 |
|
|
| 2,494 |
|
|
| 3,174 |
|
|
| 1,262 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Savannah |
| GA |
|
|
|
| 463 |
|
|
| 1,684 |
|
|
| 4,925 |
|
|
| 1,445 |
|
|
| 5,627 |
|
|
| 7,072 |
|
|
| 2,433 |
|
| 1981 |
| 6/26/1995 |
| 5 to 40 years |
Greensboro |
| NC |
|
|
|
| 444 |
|
|
| 1,613 |
|
|
| 3,444 |
|
|
| 444 |
|
|
| 5,057 |
|
|
| 5,501 |
|
|
| 1,822 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 649 |
|
|
| 2,329 |
|
|
| 1,487 |
|
|
| 649 |
|
|
| 3,816 |
|
|
| 4,465 |
|
|
| 1,892 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Hartford-New Haven |
| CT |
|
|
|
| 387 |
|
|
| 1,402 |
|
|
| 4,020 |
|
|
| 387 |
|
|
| 5,422 |
|
|
| 5,809 |
|
|
| 1,594 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 844 |
|
|
| 2,021 |
|
|
| 1,009 |
|
|
| 844 |
|
|
| 3,030 |
|
|
| 3,874 |
|
|
| 1,588 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 302 |
|
|
| 1,103 |
|
|
| 698 |
|
|
| 303 |
|
|
| 1,800 |
|
|
| 2,103 |
|
|
| 950 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Buffalo |
| NY |
|
|
|
| 315 |
|
|
| 745 |
|
|
| 4,040 |
|
|
| 517 |
|
|
| 4,583 |
|
|
| 5,100 |
|
|
| 1,433 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 321 |
|
|
| 1,150 |
|
|
| 3,468 |
|
|
| 321 |
|
|
| 4,618 |
|
|
| 4,939 |
|
|
| 1,110 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Columbia |
| SC |
|
|
|
| 361 |
|
|
| 1,331 |
|
|
| 917 |
|
|
| 374 |
|
|
| 2,235 |
|
|
| 2,609 |
|
|
| 1,203 |
|
| 1987 |
| 6/26/1995 |
| 5 to 40 years |
Columbia |
| SC |
|
|
|
| 189 |
|
|
| 719 |
|
|
| 1,200 |
|
|
| 189 |
|
|
| 1,919 |
|
|
| 2,108 |
|
|
| 1,408 |
|
| 1989 |
| 6/26/1995 |
| 5 to 40 years |
Columbia |
| SC |
|
|
|
| 488 |
|
|
| 1,188 |
|
|
| 2,081 |
|
|
| 488 |
|
|
| 3,269 |
|
|
| 3,757 |
|
|
| 1,228 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 430 |
|
|
| 1,579 |
|
|
| 2,343 |
|
|
| 602 |
|
|
| 3,750 |
|
|
| 4,352 |
|
|
| 1,605 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Orlando |
| FL |
|
|
|
| 513 |
|
|
| 1,930 |
|
|
| 856 |
|
|
| 513 |
|
|
| 2,786 |
|
|
| 3,299 |
|
|
| 1,536 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Sharon |
| PA |
|
|
|
| 194 |
|
|
| 912 |
|
|
| 586 |
|
|
| 194 |
|
|
| 1,498 |
|
|
| 1,692 |
|
|
| 818 |
|
| 1975 |
| 6/26/1995 |
| 5 to 40 years |
Ft. Lauderdale |
| FL |
|
|
|
| 1,503 |
|
|
| 3,619 |
|
|
| 1,302 |
|
|
| 1,503 |
|
|
| 4,921 |
|
|
| 6,424 |
|
|
| 2,387 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
West Palm |
| FL |
|
|
|
| 398 |
|
|
| 1,035 |
|
|
| 500 |
|
|
| 398 |
|
|
| 1,535 |
|
|
| 1,933 |
|
|
| 875 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 423 |
|
|
| 1,015 |
|
|
| 606 |
|
|
| 424 |
|
|
| 1,620 |
|
|
| 2,044 |
|
|
| 776 |
|
| 1989 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 483 |
|
|
| 1,166 |
|
|
| 1,271 |
|
|
| 483 |
|
|
| 2,437 |
|
|
| 2,920 |
|
|
| 1,140 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 308 |
|
|
| 1,116 |
|
|
| 833 |
|
|
| 308 |
|
|
| 1,949 |
|
|
| 2,257 |
|
|
| 1,075 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 170 |
|
|
| 786 |
|
|
| 906 |
|
|
| 174 |
|
|
| 1,688 |
|
|
| 1,862 |
|
|
| 860 |
|
| 1981 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 413 |
|
|
| 999 |
|
|
| 853 |
|
|
| 413 |
|
|
| 1,852 |
|
|
| 2,265 |
|
|
| 1,077 |
|
| 1975 |
| 6/26/1995 |
| 5 to 40 years |
Baltimore |
| MD |
|
|
|
| 154 |
|
|
| 555 |
|
|
| 1,492 |
|
|
| 306 |
|
|
| 1,895 |
|
|
| 2,201 |
|
|
| 874 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
Baltimore |
| MD |
|
|
|
| 479 |
|
|
| 1,742 |
|
|
| 3,018 |
|
|
| 479 |
|
|
| 4,760 |
|
|
| 5,239 |
|
|
| 2,007 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Melbourne |
| FL |
|
|
|
| 883 |
|
|
| 2,104 |
|
|
| 1,932 |
|
|
| 883 |
|
|
| 4,036 |
|
|
| 4,919 |
|
|
| 2,181 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Newport News |
| VA |
|
|
|
| 316 |
|
|
| 1,471 |
|
|
| 1,045 |
|
|
| 316 |
|
|
| 2,516 |
|
|
| 2,832 |
|
|
| 1,346 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Pensacola |
| FL |
|
|
|
| 632 |
|
|
| 2,962 |
|
|
| 1,669 |
|
|
| 651 |
|
|
| 4,612 |
|
|
| 5,263 |
|
|
| 2,560 |
|
| 1983 |
| 6/26/1995 |
| 5 to 40 years |
Hartford |
| CT |
|
|
|
| 715 |
|
|
| 1,695 |
|
|
| 1,420 |
|
|
| 715 |
|
|
| 3,115 |
|
|
| 3,830 |
|
|
| 1,541 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 304 |
|
|
| 1,118 |
|
|
| 2,906 |
|
|
| 619 |
|
|
| 3,709 |
|
|
| 4,328 |
|
|
| 1,607 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Alexandria |
| VA |
|
|
|
| 1,375 |
|
|
| 3,220 |
|
|
| 2,894 |
|
|
| 1,376 |
|
|
| 6,113 |
|
|
| 7,489 |
|
|
| 3,083 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
Pensacola |
| FL |
|
|
|
| 244 |
|
|
| 901 |
|
|
| 692 |
|
|
| 244 |
|
|
| 1,593 |
|
|
| 1,837 |
|
|
| 860 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Melbourne |
| FL |
|
|
|
| 834 |
|
|
| 2,066 |
|
|
| 3,528 |
|
|
| 1,591 |
|
|
| 4,837 |
|
|
| 6,428 |
|
|
| 1,626 |
|
| 1986/15 |
| 6/26/1995 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
| Initial Cost to Company |
|
| Cost Capitalized Subsequent to Acquisition |
|
| Gross Amount at Which Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| Life on which depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Hartford |
| CT |
|
|
|
| 234 |
|
|
| 861 |
|
|
| 3,561 |
|
|
| 612 |
|
|
| 4,044 |
|
|
| 4,656 |
|
|
| 1,311 |
|
| 1992 |
| 6/26/1995 |
| 5 to 40 years |
Atlanta |
| GA |
|
|
|
| 256 |
|
|
| 1,244 |
|
|
| 2,325 |
|
|
| 256 |
|
|
| 3,569 |
|
|
| 3,825 |
|
|
| 1,584 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Norfolk |
| VA |
|
|
|
| 313 |
|
|
| 1,462 |
|
|
| 2,718 |
|
|
| 313 |
|
|
| 4,180 |
|
|
| 4,493 |
|
|
| 1,573 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
Birmingham |
| AL |
|
|
|
| 307 |
|
|
| 1,415 |
|
|
| 1,918 |
|
|
| 385 |
|
|
| 3,255 |
|
|
| 3,640 |
|
|
| 1,496 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Birmingham |
| AL |
|
|
|
| 730 |
|
|
| 1,725 |
|
|
| 2,992 |
|
|
| 730 |
|
|
| 4,717 |
|
|
| 5,447 |
|
|
| 1,639 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Montgomery |
| AL |
|
|
|
| 863 |
|
|
| 2,041 |
|
|
| 1,491 |
|
|
| 863 |
|
|
| 3,532 |
|
|
| 4,395 |
|
|
| 1,694 |
|
| 1982 |
| 6/26/1995 |
| 5 to 40 years |
Jacksonville |
| FL |
|
|
|
| 326 |
|
|
| 1,515 |
|
|
| 1,432 |
|
|
| 326 |
|
|
| 2,947 |
|
|
| 3,273 |
|
|
| 1,253 |
|
| 1987 |
| 6/26/1995 |
| 5 to 40 years |
Pensacola |
| FL |
|
|
|
| 369 |
|
|
| 1,358 |
|
|
| 3,249 |
|
|
| 369 |
|
|
| 4,607 |
|
|
| 4,976 |
|
|
| 2,014 |
|
| 1986 |
| 6/26/1995 |
| 5 to 40 years |
Pensacola |
| FL |
|
|
|
| 244 |
|
|
| 1,128 |
|
|
| 2,828 |
|
|
| 720 |
|
|
| 3,480 |
|
|
| 4,200 |
|
|
| 1,282 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Pensacola |
| FL |
|
|
|
| 226 |
|
|
| 1,046 |
|
|
| 896 |
|
|
| 226 |
|
|
| 1,942 |
|
|
| 2,168 |
|
|
| 1,007 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Tampa |
| FL |
|
|
|
| 1,088 |
|
|
| 2,597 |
|
|
| 1,038 |
|
|
| 1,088 |
|
|
| 3,635 |
|
|
| 4,723 |
|
|
| 2,100 |
|
| 1989 |
| 6/26/1995 |
| 5 to 40 years |
Clearwater |
| FL |
|
|
|
| 526 |
|
|
| 1,958 |
|
|
| 1,581 |
|
|
| 526 |
|
|
| 3,539 |
|
|
| 4,065 |
|
|
| 1,729 |
|
| 1985 |
| 6/26/1995 |
| 5 to 40 years |
Clearwater-Largo |
| FL |
|
|
|
| 672 |
|
|
| 2,439 |
|
|
| 1,218 |
|
|
| 672 |
|
|
| 3,657 |
|
|
| 4,329 |
|
|
| 1,824 |
|
| 1988 |
| 6/26/1995 |
| 5 to 40 years |
Jackson |
| MS |
|
|
|
| 343 |
|
|
| 1,580 |
|
|
| 2,643 |
|
|
| 796 |
|
|
| 3,770 |
|
|
| 4,566 |
|
|
| 1,553 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Jackson |
| MS |
|
|
|
| 209 |
|
|
| 964 |
|
|
| 1,070 |
|
|
| 209 |
|
|
| 2,034 |
|
|
| 2,243 |
|
|
| 1,009 |
|
| 1990 |
| 6/26/1995 |
| 5 to 40 years |
Providence |
| RI |
|
|
|
| 345 |
|
|
| 1,268 |
|
|
| 2,078 |
|
|
| 486 |
|
|
| 3,205 |
|
|
| 3,691 |
|
|
| 1,265 |
|
| 1984 |
| 6/26/1995 |
| 5 to 40 years |
Norfolk - Virginia Beach |
| VA |
|
|
|
| 1,142 |
|
|
| 4,998 |
|
|
| 3,585 |
|
|
| 1,142 |
|
|
| 8,583 |
|
|
| 9,725 |
|
|
| 3,428 |
|
| 1989/93/95/16 |
| 6/26/1995 |
| 5 to 40 years |
Richmond |
| VA |
|
|
|
| 443 |
|
|
| 1,602 |
|
|
| 1,111 |
|
|
| 443 |
|
|
| 2,713 |
|
|
| 3,156 |
|
|
| 1,434 |
|
| 1987 |
| 8/25/1995 |
| 5 to 40 years |
Orlando |
| FL |
|
|
|
| 1,161 |
|
|
| 2,755 |
|
|
| 2,311 |
|
|
| 1,162 |
|
|
| 5,065 |
|
|
| 6,227 |
|
|
| 2,296 |
|
| 1986/15 |
| 9/29/1995 |
| 5 to 40 years |
Syracuse |
| NY |
|
|
|
| 470 |
|
|
| 1,712 |
|
|
| 1,685 |
|
|
| 472 |
|
|
| 3,395 |
|
|
| 3,867 |
|
|
| 1,604 |
|
| 1987 |
| 12/27/1995 |
| 5 to 40 years |
Ft. Myers |
| FL |
|
|
|
| 205 |
|
|
| 912 |
|
|
| 567 |
|
|
| 206 |
|
|
| 1,478 |
|
|
| 1,684 |
|
|
| 837 |
|
| 1988 |
| 12/28/1995 |
| 5 to 40 years |
Ft. Myers |
| FL |
|
|
|
| 412 |
|
|
| 1,703 |
|
|
| 767 |
|
|
| 412 |
|
|
| 2,470 |
|
|
| 2,882 |
|
|
| 1,455 |
|
| 1991/94 |
| 12/28/1995 |
| 5 to 40 years |
Harrisburg |
| PA |
|
|
|
| 360 |
|
|
| 1,641 |
|
|
| 133 |
|
|
| 360 |
|
|
| 1,774 |
|
|
| 2,134 |
|
|
| 1,027 |
|
| 1983 |
| 12/29/1995 |
| 5 to 40 years |
Harrisburg |
| PA |
|
|
|
| 627 |
|
|
| 2,224 |
|
|
| 4,080 |
|
|
| 692 |
|
|
| 6,239 |
|
|
| 6,931 |
|
|
| 2,213 |
|
| 1985 |
| 12/29/1995 |
| 5 to 40 years |
Newport News |
| VA |
|
|
|
| 442 |
|
|
| 1,592 |
|
|
| 1,434 |
|
|
| 442 |
|
|
| 3,026 |
|
|
| 3,468 |
|
|
| 1,454 |
|
| 1988/93 |
| 1/5/1996 |
| 5 to 40 years |
Montgomery |
| AL |
|
|
|
| 353 |
|
|
| 1,299 |
|
|
| 1,138 |
|
|
| 353 |
|
|
| 2,437 |
|
|
| 2,790 |
|
|
| 1,086 |
|
| 1984 |
| 1/23/1996 |
| 5 to 40 years |
Charleston |
| SC |
|
|
|
| 237 |
|
|
| 858 |
|
|
| 1,062 |
|
|
| 245 |
|
|
| 1,912 |
|
|
| 2,157 |
|
|
| 936 |
|
| 1985 |
| 3/1/1996 |
| 5 to 40 years |
Tampa |
| FL |
|
|
|
| 766 |
|
|
| 1,800 |
|
|
| 1,060 |
|
|
| 766 |
|
|
| 2,860 |
|
|
| 3,626 |
|
|
| 1,392 |
|
| 1985 |
| 3/28/1996 |
| 5 to 40 years |
Dallas-Ft.Worth |
| TX |
|
|
|
| 442 |
|
|
| 1,767 |
|
|
| 471 |
|
|
| 442 |
|
|
| 2,238 |
|
|
| 2,680 |
|
|
| 1,209 |
|
| 1987 |
| 3/29/1996 |
| 5 to 40 years |
Dallas-Ft.Worth |
| TX |
|
|
|
| 408 |
|
|
| 1,662 |
|
|
| 1,312 |
|
|
| 408 |
|
|
| 2,974 |
|
|
| 3,382 |
|
|
| 1,499 |
|
| 1986 |
| 3/29/1996 |
| 5 to 40 years |
Dallas-Ft.Worth |
| TX |
|
|
|
| 328 |
|
|
| 1,324 |
|
|
| 448 |
|
|
| 328 |
|
|
| 1,772 |
|
|
| 2,100 |
|
|
| 1,739 |
|
| 1986 |
| 3/29/1996 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 436 |
|
|
| 1,759 |
|
|
| 1,548 |
|
|
| 436 |
|
|
| 3,307 |
|
|
| 3,743 |
|
|
| 1,598 |
|
| 1986 |
| 3/29/1996 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 289 |
|
|
| 1,161 |
|
|
| 2,484 |
|
|
| 289 |
|
|
| 3,645 |
|
|
| 3,934 |
|
|
| 457 |
|
| 2012 |
| 3/29/1996 |
| 5 to 40 years |
Montgomery |
| AL |
|
|
|
| 279 |
|
|
| 1,014 |
|
|
| 1,515 |
|
|
| 433 |
|
|
| 2,375 |
|
|
| 2,808 |
|
|
| 1,053 |
|
| 1988 |
| 5/21/1996 |
| 5 to 40 years |
West Palm |
| FL |
|
|
|
| 345 |
|
|
| 1,262 |
|
|
| 653 |
|
|
| 345 |
|
|
| 1,915 |
|
|
| 2,260 |
|
|
| 931 |
|
| 1986 |
| 5/29/1996 |
| 5 to 40 years |
Ft. Myers |
| FL |
|
|
|
| 229 |
|
|
| 884 |
|
|
| 2,855 |
|
|
| 383 |
|
|
| 3,585 |
|
|
| 3,968 |
|
|
| 939 |
|
| 1986 |
| 5/29/1996 |
| 5 to 40 years |
Syracuse |
| NY |
|
|
|
| 481 |
|
|
| 1,559 |
|
|
| 2,656 |
|
|
| 671 |
|
|
| 4,025 |
|
|
| 4,696 |
|
|
| 1,871 |
|
| 1983 |
| 6/5/1996 |
| 5 to 40 years |
Lakeland |
| FL |
|
|
|
| 359 |
|
|
| 1,287 |
|
|
| 1,335 |
|
|
| 359 |
|
|
| 2,622 |
|
|
| 2,981 |
|
|
| 1,370 |
|
| 1988 |
| 6/26/1996 |
| 5 to 40 years |
Boston - Springfield |
| MA |
|
|
|
| 251 |
|
|
| 917 |
|
|
| 2,554 |
|
|
| 297 |
|
|
| 3,425 |
|
|
| 3,722 |
|
|
| 1,638 |
|
| 1986 |
| 6/28/1996 |
| 5 to 40 years |
Ft. Myers |
| FL |
|
|
|
| 344 |
|
|
| 1,254 |
|
|
| 657 |
|
|
| 310 |
|
|
| 1,945 |
|
|
| 2,255 |
|
|
| 1,011 |
|
| 1987 |
| 6/28/1996 |
| 5 to 40 years |
Cincinnati |
| OH |
|
|
|
| 557 |
|
|
| 1,988 |
|
|
| 996 |
|
|
| 688 |
|
|
| 2,853 |
|
|
| 3,541 |
|
|
| 976 |
|
| 1988 |
| 7/23/1996 |
| 5 to 40 years |
Baltimore |
| MD |
|
|
|
| 777 |
|
|
| 2,770 |
|
|
| 791 |
|
|
| 777 |
|
|
| 3,561 |
|
|
| 4,338 |
|
|
| 1,847 |
|
| 1990 |
| 7/26/1996 |
| 5 to 40 years |
Jacksonville |
| FL |
|
|
|
| 568 |
|
|
| 2,028 |
|
|
| 1,903 |
|
|
| 568 |
|
|
| 3,931 |
|
|
| 4,499 |
|
|
| 1,800 |
|
| 1987 |
| 8/23/1996 |
| 5 to 40 years |
Jacksonville |
| FL |
|
|
|
| 436 |
|
|
| 1,635 |
|
|
| 1,191 |
|
|
| 436 |
|
|
| 2,826 |
|
|
| 3,262 |
|
|
| 1,316 |
|
| 1985 |
| 8/26/1996 |
| 5 to 40 years |
Jacksonville |
| FL |
|
|
|
| 535 |
|
|
| 2,033 |
|
|
| 638 |
|
|
| 538 |
|
|
| 2,668 |
|
|
| 3,206 |
|
|
| 1,477 |
|
| 1987/92 |
| 8/30/1996 |
| 5 to 40 years |
Charlotte |
| NC |
|
|
|
| 487 |
|
|
| 1,754 |
|
|
| 701 |
|
|
| 487 |
|
|
| 2,455 |
|
|
| 2,942 |
|
|
| 1,248 |
|
| 1995 |
| 9/16/1996 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
| Initial Cost to Company |
|
| Cost Capitalized Subsequent to Acquisition |
|
| Gross Amount at Which Carried at Close of Period |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on which depreciation | |||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Charlotte |
| NC |
|
|
|
| 315 |
|
|
| 1,131 |
|
|
| 524 |
|
|
| 315 |
|
|
| 1,655 |
|
|
| 1,970 |
|
|
| 890 |
|
| 1995 |
| 9/16/1996 |
| 5 to 40 years |
Orlando |
| FL |
|
|
|
| 314 |
|
|
| 1,113 |
|
|
| 1,417 |
|
|
| 314 |
|
|
| 2,530 |
|
|
| 2,844 |
|
|
| 1,223 |
|
| 1975 |
| 10/30/1996 |
| 5 to 40 years |
Rochester |
| NY |
|
|
|
| 704 |
|
|
| 2,496 |
|
|
| 2,975 |
|
|
| 707 |
|
|
| 5,468 |
|
|
| 6,175 |
|
|
| 2,118 |
|
| 1990 |
| 12/20/1996 |
| 5 to 40 years |
Youngstown |
| OH |
|
|
|
| 600 |
|
|
| 2,142 |
|
|
| 2,773 |
|
|
| 693 |
|
|
| 4,822 |
|
|
| 5,515 |
|
|
| 1,874 |
|
| 1988 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 751 |
|
|
| 2,676 |
|
|
| 4,465 |
|
|
| 751 |
|
|
| 7,141 |
|
|
| 7,892 |
|
|
| 2,578 |
|
| 1986 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 725 |
|
|
| 2,586 |
|
|
| 2,524 |
|
|
| 725 |
|
|
| 5,110 |
|
|
| 5,835 |
|
|
| 2,268 |
|
| 1978 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 637 |
|
|
| 2,918 |
|
|
| 2,082 |
|
|
| 701 |
|
|
| 4,936 |
|
|
| 5,637 |
|
|
| 2,765 |
|
| 1979 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 495 |
|
|
| 1,781 |
|
|
| 4,140 |
|
|
| 495 |
|
|
| 5,921 |
|
|
| 6,416 |
|
|
| 1,571 |
|
| 1979/17 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 761 |
|
|
| 2,714 |
|
|
| 1,829 |
|
|
| 761 |
|
|
| 4,543 |
|
|
| 5,304 |
|
|
| 2,315 |
|
| 1977 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 418 |
|
|
| 1,921 |
|
|
| 2,944 |
|
|
| 418 |
|
|
| 4,865 |
|
|
| 5,283 |
|
|
| 2,071 |
|
| 1970 |
| 1/10/1997 |
| 5 to 40 years |
Cleveland |
| OH |
|
|
|
| 606 |
|
|
| 2,164 |
|
|
| 1,533 |
|
|
| 606 |
|
|
| 3,697 |
|
|
| 4,303 |
|
|
| 1,691 |
|
| 1982 |
| 1/10/1997 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 474 |
|
|
| 1,686 |
|
|
| 814 |
|
|
| 504 |
|
|
| 2,470 |
|
|
| 2,974 |
|
|
| 1,119 |
|
| 1981 |
| 1/30/1997 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 346 |
|
|
| 1,236 |
|
|
| 652 |
|
|
| 346 |
|
|
| 1,888 |
|
|
| 2,234 |
|
|
| 918 |
|
| 1985 |
| 1/30/1997 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 432 |
|
|
| 1,560 |
|
|
| 2,134 |
|
|
| 432 |
|
|
| 3,694 |
|
|
| 4,126 |
|
|
| 1,739 |
|
| 1995 |
| 1/30/1997 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 634 |
|
|
| 2,565 |
|
|
| 4,625 |
|
|
| 634 |
|
|
| 7,190 |
|
|
| 7,824 |
|
|
| 2,081 |
|
| 1993/95/16 |
| 3/26/1997 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 566 |
|
|
| 2,279 |
|
|
| 577 |
|
|
| 566 |
|
|
| 2,856 |
|
|
| 3,422 |
|
|
| 1,423 |
|
| 1995 |
| 3/26/1997 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 293 |
|
|
| 1,357 |
|
|
| 702 |
|
|
| 293 |
|
|
| 2,059 |
|
|
| 2,352 |
|
|
| 960 |
|
| 1995 |
| 3/26/1997 |
| 5 to 40 years |
Chesapeake |
| VA |
|
|
|
| 260 |
|
|
| 1,043 |
|
|
| 4,760 |
|
|
| 260 |
|
|
| 5,803 |
|
|
| 6,063 |
|
|
| 1,650 |
|
| 1988/95 |
| 3/31/1997 |
| 5 to 40 years |
Orlando-W 25th St |
| FL |
|
|
|
| 289 |
|
|
| 1,160 |
|
|
| 2,486 |
|
|
| 616 |
|
|
| 3,319 |
|
|
| 3,935 |
|
|
| 1,024 |
|
| 1984 |
| 3/31/1997 |
| 5 to 40 years |
Delray |
| FL |
|
|
|
| 491 |
|
|
| 1,756 |
|
|
| 805 |
|
|
| 491 |
|
|
| 2,561 |
|
|
| 3,052 |
|
|
| 1,371 |
|
| 1969 |
| 4/11/1997 |
| 5 to 40 years |
Savannah |
| GA |
|
|
|
| 296 |
|
|
| 1,196 |
|
|
| 586 |
|
|
| 296 |
|
|
| 1,782 |
|
|
| 2,078 |
|
|
| 912 |
|
| 1988 |
| 5/8/1997 |
| 5 to 40 years |
Delray |
| FL |
|
|
|
| 921 |
|
|
| 3,282 |
|
|
| 940 |
|
|
| 921 |
|
|
| 4,222 |
|
|
| 5,143 |
|
|
| 2,118 |
|
| 1980 |
| 5/21/1997 |
| 5 to 40 years |
Cleveland-Avon |
| OH |
|
|
|
| 301 |
|
|
| 1,214 |
|
|
| 2,344 |
|
|
| 304 |
|
|
| 3,555 |
|
|
| 3,859 |
|
|
| 1,534 |
|
| 1989 |
| 6/4/1997 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 965 |
|
|
| 3,864 |
|
|
| 1,773 |
|
|
| 943 |
|
|
| 5,659 |
|
|
| 6,602 |
|
|
| 2,806 |
|
| 1977 |
| 6/30/1997 |
| 5 to 40 years |
Atlanta-Alpharetta |
| GA |
|
|
|
| 1,033 |
|
|
| 3,753 |
|
|
| 797 |
|
|
| 1,033 |
|
|
| 4,550 |
|
|
| 5,583 |
|
|
| 2,303 |
|
| 1994 |
| 7/24/1997 |
| 5 to 40 years |
Atlanta-Marietta |
| GA |
|
|
|
| 769 |
|
|
| 2,788 |
|
|
| 724 |
|
|
| 825 |
|
|
| 3,456 |
|
|
| 4,281 |
|
|
| 1,733 |
|
| 1996 |
| 7/24/1997 |
| 5 to 40 years |
Atlanta-Doraville |
| GA |
|
|
|
| 735 |
|
|
| 3,429 |
|
|
| 517 |
|
|
| 735 |
|
|
| 3,946 |
|
|
| 4,681 |
|
|
| 2,039 |
|
| 1995 |
| 8/21/1997 |
| 5 to 40 years |
Greensboro-Hilltop |
| NC |
|
|
|
| 268 |
|
|
| 1,097 |
|
|
| 911 |
|
|
| 231 |
|
|
| 2,045 |
|
|
| 2,276 |
|
|
| 863 |
|
| 1995 |
| 9/25/1997 |
| 5 to 40 years |
Greensboro-StgCch |
| NC |
|
|
|
| 89 |
|
|
| 376 |
|
|
| 1,947 |
|
|
| 89 |
|
|
| 2,323 |
|
|
| 2,412 |
|
|
| 988 |
|
| 1997 |
| 9/25/1997 |
| 5 to 40 years |
Baton Rouge-Airline |
| LA |
|
|
|
| 396 |
|
|
| 1,831 |
|
|
| 1,234 |
|
|
| 421 |
|
|
| 3,040 |
|
|
| 3,461 |
|
|
| 1,425 |
|
| 1982 |
| 10/9/1997 |
| 5 to 40 years |
Baton Rouge-Airline2 |
| LA |
|
|
|
| 282 |
|
|
| 1,303 |
|
|
| 564 |
|
|
| 282 |
|
|
| 1,867 |
|
|
| 2,149 |
|
|
| 923 |
|
| 1985 |
| 11/21/1997 |
| 5 to 40 years |
Harrisburg-Peiffers |
| PA |
|
|
|
| 635 |
|
|
| 2,550 |
|
|
| 777 |
|
|
| 637 |
|
|
| 3,325 |
|
|
| 3,962 |
|
|
| 1,680 |
|
| 1984 |
| 12/3/1997 |
| 5 to 40 years |
Tampa-E. Hillsborough |
| FL |
|
|
|
| 709 |
|
|
| 3,235 |
|
|
| 1,030 |
|
|
| 709 |
|
|
| 4,265 |
|
|
| 4,974 |
|
|
| 2,145 |
|
| 1985 |
| 2/4/1998 |
| 5 to 40 years |
NY Metro-Middletown |
| NY |
|
|
|
| 843 |
|
|
| 3,394 |
|
|
| 1,113 |
|
|
| 843 |
|
|
| 4,507 |
|
|
| 5,350 |
|
|
| 2,168 |
|
| 1989/95 |
| 2/4/1998 |
| 5 to 40 years |
Chesapeake-Military |
| VA |
|
|
|
| 542 |
|
|
| 2,210 |
|
|
| 542 |
|
|
| 542 |
|
|
| 2,752 |
|
|
| 3,294 |
|
|
| 1,370 |
|
| 1996 |
| 2/5/1998 |
| 5 to 40 years |
Chesapeake-Volvo |
| VA |
|
|
|
| 620 |
|
|
| 2,532 |
|
|
| 1,561 |
|
|
| 620 |
|
|
| 4,093 |
|
|
| 4,713 |
|
|
| 1,839 |
|
| 1995 |
| 2/5/1998 |
| 5 to 40 years |
Virginia Beach-Shell |
| VA |
|
|
|
| 540 |
|
|
| 2,211 |
|
|
| 569 |
|
|
| 540 |
|
|
| 2,780 |
|
|
| 3,320 |
|
|
| 1,370 |
|
| 1991 |
| 2/5/1998 |
| 5 to 40 years |
Norfolk-Naval Base |
| VA |
|
|
|
| 1,243 |
|
|
| 5,019 |
|
|
| 1,039 |
|
|
| 1,243 |
|
|
| 6,058 |
|
|
| 7,301 |
|
|
| 2,993 |
|
| 1975 |
| 2/5/1998 |
| 5 to 40 years |
Boston-Northbridge |
| MA |
|
|
|
| 441 |
|
|
| 1,788 |
|
|
| 1,203 |
|
|
| 694 |
|
|
| 2,738 |
|
|
| 3,432 |
|
|
| 895 |
|
| 1988 |
| 2/9/1998 |
| 5 to 40 years |
Greensboro-High Point |
| NC |
|
|
|
| 397 |
|
|
| 1,834 |
|
|
| 1,109 |
|
|
| 397 |
|
|
| 2,943 |
|
|
| 3,340 |
|
|
| 1,313 |
|
| 1993 |
| 2/10/1998 |
| 5 to 40 years |
Titusville |
| FL |
|
|
|
| 492 |
|
|
| 1,990 |
|
|
| 1,282 |
|
|
| 688 |
|
|
| 3,076 |
|
|
| 3,764 |
|
|
| 1,047 |
|
| 1986/90 |
| 2/25/1998 |
| 5 to 40 years |
Boston-Salem |
| MA |
|
|
|
| 733 |
|
|
| 2,941 |
|
|
| 2,000 |
|
|
| 733 |
|
|
| 4,941 |
|
|
| 5,674 |
|
|
| 2,308 |
|
| 1979 |
| 3/3/1998 |
| 5 to 40 years |
Providence |
| RI |
|
|
|
| 702 |
|
|
| 2,821 |
|
|
| 4,269 |
|
|
| 702 |
|
|
| 7,090 |
|
|
| 7,792 |
|
|
| 2,310 |
|
| 1984/88 |
| 3/26/1998 |
| 5 to 40 years |
Chattanooga-Lee Hwy |
| TN |
|
|
|
| 384 |
|
|
| 1,371 |
|
|
| 652 |
|
|
| 384 |
|
|
| 2,023 |
|
|
| 2,407 |
|
|
| 1,063 |
|
| 1987 |
| 3/27/1998 |
| 5 to 40 years |
Chattanooga-Hwy 58 |
| TN |
|
|
|
| 296 |
|
|
| 1,198 |
|
|
| 2,333 |
|
|
| 414 |
|
|
| 3,413 |
|
|
| 3,827 |
|
|
| 1,354 |
|
| 1985 |
| 3/27/1998 |
| 5 to 40 years |
Ft. Oglethorpe |
| GA |
|
|
|
| 349 |
|
|
| 1,250 |
|
|
| 1,871 |
|
|
| 464 |
|
|
| 3,006 |
|
|
| 3,470 |
|
|
| 1,137 |
|
| 1989 |
| 3/27/1998 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Birmingham-Walt |
| AL |
|
|
|
| 544 |
|
|
| 1,942 |
|
|
| 1,335 |
|
|
| 544 |
|
|
| 3,277 |
|
|
| 3,821 |
|
|
| 1,635 |
|
| 1984 |
| 3/27/1998 |
| 5 to 40 years |
Salem-Policy |
| NH |
|
|
|
| 742 |
|
|
| 2,977 |
|
|
| 655 |
|
|
| 742 |
|
|
| 3,632 |
|
|
| 4,374 |
|
|
| 1,766 |
|
| 1980 |
| 4/7/1998 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 775 |
|
|
| 3,103 |
|
|
| 973 |
|
|
| 775 |
|
|
| 4,076 |
|
|
| 4,851 |
|
|
| 1,978 |
|
| 1988/91 |
| 4/9/1998 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 940 |
|
|
| 3,763 |
|
|
| 1,087 |
|
|
| 940 |
|
|
| 4,850 |
|
|
| 5,790 |
|
|
| 2,353 |
|
| 1990/96 |
| 4/9/1998 |
| 5 to 40 years |
Youngstown-Warren |
| OH |
|
|
|
| 522 |
|
|
| 1,864 |
|
|
| 1,414 |
|
|
| 569 |
|
|
| 3,231 |
|
|
| 3,800 |
|
|
| 1,543 |
|
| 1986 |
| 4/22/1998 |
| 5 to 40 years |
Youngstown-Warren |
| OH |
|
|
|
| 512 |
|
|
| 1,829 |
|
|
| 2,831 |
|
|
| 633 |
|
|
| 4,539 |
|
|
| 5,172 |
|
|
| 1,662 |
|
| 1986/16 |
| 4/22/1998 |
| 5 to 40 years |
Jackson |
| MS |
|
|
|
| 744 |
|
|
| 3,021 |
|
|
| 280 |
|
|
| 744 |
|
|
| 3,301 |
|
|
| 4,045 |
|
|
| 1,632 |
|
| 1995 |
| 5/13/1998 |
| 5 to 40 years |
Houston-Katy |
| TX |
|
|
|
| 419 |
|
|
| 1,524 |
|
|
| 4,101 |
|
|
| 419 |
|
|
| 5,625 |
|
|
| 6,044 |
|
|
| 1,759 |
|
| 1994 |
| 5/20/1998 |
| 5 to 40 years |
Melbourne |
| FL |
|
|
|
| 662 |
|
|
| 2,654 |
|
|
| 3,705 |
|
|
| 662 |
|
|
| 6,359 |
|
|
| 7,021 |
|
|
| 1,687 |
|
| 1985/07/15 |
| 6/2/1998 |
| 5 to 40 years |
Vero Beach |
| FL |
|
|
|
| 489 |
|
|
| 1,813 |
|
|
| 1,783 |
|
|
| 584 |
|
|
| 3,501 |
|
|
| 4,085 |
|
|
| 1,186 |
|
| 1997 |
| 6/12/1998 |
| 5 to 40 years |
Houston-Humble |
| TX |
|
|
|
| 447 |
|
|
| 1,790 |
|
|
| 2,588 |
|
|
| 740 |
|
|
| 4,085 |
|
|
| 4,825 |
|
|
| 1,631 |
|
| 1986 |
| 6/16/1998 |
| 5 to 40 years |
Houston-Webster |
| TX |
|
|
|
| 635 |
|
|
| 2,302 |
|
|
| 634 |
|
|
| 635 |
|
|
| 2,936 |
|
|
| 3,571 |
|
|
| 1,284 |
|
| 1997 |
| 6/19/1998 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 548 |
|
|
| 1,988 |
|
|
| 442 |
|
|
| 548 |
|
|
| 2,430 |
|
|
| 2,978 |
|
|
| 1,163 |
|
| 1997 |
| 6/19/1998 |
| 5 to 40 years |
San Marcos |
| TX |
|
|
|
| 324 |
|
|
| 1,493 |
|
|
| 2,233 |
|
|
| 324 |
|
|
| 3,726 |
|
|
| 4,050 |
|
|
| 1,451 |
|
| 1994 |
| 6/30/1998 |
| 5 to 40 years |
Austin-McNeil |
| TX |
|
|
|
| 492 |
|
|
| 1,995 |
|
|
| 2,646 |
|
|
| 510 |
|
|
| 4,623 |
|
|
| 5,133 |
|
|
| 1,633 |
|
| 1994 |
| 6/30/1998 |
| 5 to 40 years |
Austin-FM |
| TX |
|
|
|
| 484 |
|
|
| 1,951 |
|
|
| 1,044 |
|
|
| 481 |
|
|
| 2,998 |
|
|
| 3,479 |
|
|
| 1,269 |
|
| 1996 |
| 6/30/1998 |
| 5 to 40 years |
Hollywood-Sheridan |
| FL |
|
|
|
| 1,208 |
|
|
| 4,854 |
|
|
| 701 |
|
|
| 1,208 |
|
|
| 5,555 |
|
|
| 6,763 |
|
|
| 2,744 |
|
| 1988 |
| 7/1/1998 |
| 5 to 40 years |
Pompano Beach-Atlantic |
| FL |
|
|
|
| 944 |
|
|
| 3,803 |
|
|
| 876 |
|
|
| 944 |
|
|
| 4,679 |
|
|
| 5,623 |
|
|
| 2,277 |
|
| 1985 |
| 7/1/1998 |
| 5 to 40 years |
Pompano Beach-Sample |
| FL |
|
|
|
| 903 |
|
|
| 3,643 |
|
|
| 650 |
|
|
| 903 |
|
|
| 4,293 |
|
|
| 5,196 |
|
|
| 2,075 |
|
| 1988 |
| 7/1/1998 |
| 5 to 40 years |
Boca Raton-18th St |
| FL |
|
|
|
| 1,503 |
|
|
| 6,059 |
|
|
| (1,767 | ) |
|
| 851 |
|
|
| 4,944 |
|
|
| 5,795 |
|
|
| 2,414 |
|
| 1991 |
| 7/1/1998 |
| 5 to 40 years |
Hollywood-N.21st |
| FL |
|
|
|
| 840 |
|
|
| 3,373 |
|
|
| 651 |
|
|
| 840 |
|
|
| 4,024 |
|
|
| 4,864 |
|
|
| 2,003 |
|
| 1987 |
| 8/3/1998 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 550 |
|
|
| 1,998 |
|
|
| 872 |
|
|
| 550 |
|
|
| 2,870 |
|
|
| 3,420 |
|
|
| 1,276 |
|
| 1996 |
| 9/29/1998 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 670 |
|
|
| 2,407 |
|
|
| 1,865 |
|
|
| 670 |
|
|
| 4,272 |
|
|
| 4,942 |
|
|
| 1,813 |
|
| 1996 |
| 10/9/1998 |
| 5 to 40 years |
Cincinnati-Batavia |
| OH |
|
|
|
| 390 |
|
|
| 1,570 |
|
|
| 1,462 |
|
|
| 390 |
|
|
| 3,032 |
|
|
| 3,422 |
|
|
| 1,205 |
|
| 1988 |
| 11/19/1998 |
| 5 to 40 years |
Jackson-N.West |
| MS |
|
|
|
| 460 |
|
|
| 1,642 |
|
|
| 797 |
|
|
| 460 |
|
|
| 2,439 |
|
|
| 2,899 |
|
|
| 1,191 |
|
| 1984 |
| 12/1/1998 |
| 5 to 40 years |
Houston-Katy |
| TX |
|
|
|
| 507 |
|
|
| 2,058 |
|
|
| 1,843 |
|
|
| 507 |
|
|
| 3,901 |
|
|
| 4,408 |
|
|
| 1,564 |
|
| 1993 |
| 12/15/1998 |
| 5 to 40 years |
Providence |
| RI |
|
|
|
| 447 |
|
|
| 1,776 |
|
|
| 1,041 |
|
|
| 447 |
|
|
| 2,817 |
|
|
| 3,264 |
|
|
| 1,320 |
|
| 1986/94 |
| 2/2/1999 |
| 5 to 40 years |
Lafayette-Pinhook 1 |
| LA |
|
|
|
| 556 |
|
|
| 1,951 |
|
|
| 1,465 |
|
|
| 556 |
|
|
| 3,416 |
|
|
| 3,972 |
|
|
| 1,674 |
|
| 1980 |
| 2/17/1999 |
| 5 to 40 years |
Lafayette-Pinhook2 |
| LA |
|
|
|
| 708 |
|
|
| 2,860 |
|
|
| 1,331 |
|
|
| 708 |
|
|
| 4,191 |
|
|
| 4,899 |
|
|
| 1,675 |
|
| 1992/94 |
| 2/17/1999 |
| 5 to 40 years |
Lafayette-Ambassador |
| LA |
|
|
|
| 314 |
|
|
| 1,095 |
|
|
| (1,091 | ) |
|
| 314 |
|
|
| 4 |
|
|
| 318 |
|
|
| 97 |
|
| 1975 |
| 2/17/1999 |
| 5 to 40 years |
Lafayette-Evangeline |
| LA |
|
|
|
| 188 |
|
|
| 652 |
|
|
| 1,671 |
|
|
| 188 |
|
|
| 2,323 |
|
|
| 2,511 |
|
|
| 1,078 |
|
| 1977 |
| 2/17/1999 |
| 5 to 40 years |
Lafayette-Guilbeau |
| LA |
|
|
|
| 963 |
|
|
| 3,896 |
|
|
| 1,192 |
|
|
| 963 |
|
|
| 5,088 |
|
|
| 6,051 |
|
|
| 2,218 |
|
| 1994 |
| 2/17/1999 |
| 5 to 40 years |
Phoenix-Gilbert |
| AZ |
|
|
|
| 651 |
|
|
| 2,600 |
|
|
| 1,339 |
|
|
| 772 |
|
|
| 3,818 |
|
|
| 4,590 |
|
|
| 1,688 |
|
| 1995 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Glendale |
| AZ |
|
|
|
| 565 |
|
|
| 2,596 |
|
|
| 783 |
|
|
| 565 |
|
|
| 3,379 |
|
|
| 3,944 |
|
|
| 1,571 |
|
| 1997 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Mesa |
| AZ |
|
|
|
| 330 |
|
|
| 1,309 |
|
|
| 2,606 |
|
|
| 733 |
|
|
| 3,512 |
|
|
| 4,245 |
|
|
| 1,262 |
|
| 1986 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Mesa |
| AZ |
|
|
|
| 339 |
|
|
| 1,346 |
|
|
| 816 |
|
|
| 339 |
|
|
| 2,162 |
|
|
| 2,501 |
|
|
| 940 |
|
| 1986 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Mesa |
| AZ |
|
|
|
| 291 |
|
|
| 1,026 |
|
|
| 1,160 |
|
|
| 291 |
|
|
| 2,186 |
|
|
| 2,477 |
|
|
| 881 |
|
| 1976 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Mesa |
| AZ |
|
|
|
| 354 |
|
|
| 1,405 |
|
|
| 723 |
|
|
| 354 |
|
|
| 2,128 |
|
|
| 2,482 |
|
|
| 948 |
|
| 1986 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Camelback |
| AZ |
|
|
|
| 453 |
|
|
| 1,610 |
|
|
| 1,101 |
|
|
| 453 |
|
|
| 2,711 |
|
|
| 3,164 |
|
|
| 1,281 |
|
| 1984 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-Bell |
| AZ |
|
|
|
| 872 |
|
|
| 3,476 |
|
|
| 3,659 |
|
|
| 872 |
|
|
| 7,135 |
|
|
| 8,007 |
|
|
| 2,538 |
|
| 1984 |
| 5/18/1999 |
| 5 to 40 years |
Phoenix-35th Ave |
| AZ |
|
|
|
| 849 |
|
|
| 3,401 |
|
|
| 972 |
|
|
| 849 |
|
|
| 4,373 |
|
|
| 5,222 |
|
|
| 2,060 |
|
| 1996 |
| 5/21/1999 |
| 5 to 40 years |
Portland |
| ME |
|
|
|
| 410 |
|
|
| 1,626 |
|
|
| 2,031 |
|
|
| 410 |
|
|
| 3,657 |
|
|
| 4,067 |
|
|
| 1,517 |
|
| 1988 |
| 8/2/1999 |
| 5 to 40 years |
Space Coast-Cocoa |
| FL |
|
|
|
| 667 |
|
|
| 2,373 |
|
|
| 1,009 |
|
|
| 667 |
|
|
| 3,382 |
|
|
| 4,049 |
|
|
| 1,564 |
|
| 1982 |
| 9/29/1999 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 335 |
|
|
| 1,521 |
|
|
| 946 |
|
|
| 335 |
|
|
| 2,467 |
|
|
| 2,802 |
|
|
| 987 |
|
| 1985 |
| 11/9/1999 |
| 5 to 40 years |
NY Metro-Middletown |
| NY |
|
|
|
| 276 |
|
|
| 1,312 |
|
|
| 1,333 |
|
|
| 276 |
|
|
| 2,645 |
|
|
| 2,921 |
|
|
| 1,076 |
|
| 1998 |
| 2/2/2000 |
| 5 to 40 years |
Boston-N. Andover |
| MA |
|
|
|
| 633 |
|
|
| 2,573 |
|
|
| 1,083 |
|
|
| 633 |
|
|
| 3,656 |
|
|
| 4,289 |
|
|
| 1,543 |
|
| 1989 |
| 2/15/2000 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Houston-Seabrook |
| TX |
|
|
|
| 633 |
|
|
| 2,617 |
|
|
| 572 |
|
|
| 633 |
|
|
| 3,189 |
|
|
| 3,822 |
|
|
| 1,435 |
|
| 1996 |
| 3/1/2000 |
| 5 to 40 years |
Ft. Lauderdale |
| FL |
|
|
|
| 384 |
|
|
| 1,422 |
|
|
| 874 |
|
|
| 384 |
|
|
| 2,296 |
|
|
| 2,680 |
|
|
| 949 |
|
| 1994 |
| 5/2/2000 |
| 5 to 40 years |
Birmingham-Bessemer |
| AL |
|
|
|
| 254 |
|
|
| 1,059 |
|
|
| 2,165 |
|
|
| 332 |
|
|
| 3,146 |
|
|
| 3,478 |
|
|
| 990 |
|
| 1998 |
| 11/15/2000 |
| 5 to 40 years |
NY Metro-Brewster |
| NY |
|
|
|
| 1,716 |
|
|
| 6,920 |
|
|
| 1,805 |
|
|
| 1,981 |
|
|
| 8,460 |
|
|
| 10,441 |
|
|
| 2,358 |
|
| 1991/97 |
| 12/27/2000 |
| 5 to 40 years |
Austin-Lamar |
| TX |
|
|
|
| 837 |
|
|
| 2,977 |
|
|
| 3,643 |
|
|
| 966 |
|
|
| 6,491 |
|
|
| 7,457 |
|
|
| 1,450 |
|
| 1996/99 |
| 2/22/2001 |
| 5 to 40 years |
Houston |
| TX |
|
|
|
| 733 |
|
|
| 3,392 |
|
|
| 1,360 |
|
|
| 841 |
|
|
| 4,644 |
|
|
| 5,485 |
|
|
| 1,432 |
|
| 1993/97 |
| 3/2/2001 |
| 5 to 40 years |
Ft.Myers |
| FL |
|
|
|
| 787 |
|
|
| 3,249 |
|
|
| 762 |
|
|
| 902 |
|
|
| 3,896 |
|
|
| 4,798 |
|
|
| 1,339 |
|
| 1997 |
| 3/13/2001 |
| 5 to 40 years |
Boston-Dracut |
| MA |
|
|
|
| 1,035 |
|
|
| 3,737 |
|
|
| 772 |
|
|
| 1,104 |
|
|
| 4,440 |
|
|
| 5,544 |
|
|
| 1,821 |
|
| 1986 |
| 12/1/2001 |
| 5 to 40 years |
Boston-Methuen |
| MA |
|
|
|
| 1,024 |
|
|
| 3,649 |
|
|
| 849 |
|
|
| 1,091 |
|
|
| 4,431 |
|
|
| 5,522 |
|
|
| 1,770 |
|
| 1984 |
| 12/1/2001 |
| 5 to 40 years |
Columbia |
| SC |
|
|
|
| 883 |
|
|
| 3,139 |
|
|
| 1,496 |
|
|
| 942 |
|
|
| 4,576 |
|
|
| 5,518 |
|
|
| 1,726 |
|
| 1985 |
| 12/1/2001 |
| 5 to 40 years |
Myrtle Beach |
| SC |
|
|
|
| 552 |
|
|
| 1,970 |
|
|
| 1,181 |
|
|
| 589 |
|
|
| 3,114 |
|
|
| 3,703 |
|
|
| 1,258 |
|
| 1984 |
| 12/1/2001 |
| 5 to 40 years |
Maine-Saco |
| ME |
|
|
|
| 534 |
|
|
| 1,914 |
|
|
| 997 |
|
|
| 938 |
|
|
| 2,507 |
|
|
| 3,445 |
|
|
| 967 |
|
| 1988 |
| 12/3/2001 |
| 5 to 40 years |
Boston-Plymouth |
| MA |
|
|
|
| 1,004 |
|
|
| 4,584 |
|
|
| 2,401 |
|
|
| 1,004 |
|
|
| 6,985 |
|
|
| 7,989 |
|
|
| 2,465 |
|
| 1996 |
| 12/19/2001 |
| 5 to 40 years |
Boston-Sandwich |
| MA |
|
|
|
| 670 |
|
|
| 3,060 |
|
|
| 631 |
|
|
| 714 |
|
|
| 3,647 |
|
|
| 4,361 |
|
|
| 1,448 |
|
| 1984 |
| 12/19/2001 |
| 5 to 40 years |
Syracuse |
| NY |
|
|
|
| 294 |
|
|
| 1,203 |
|
|
| 1,217 |
|
|
| 327 |
|
|
| 2,387 |
|
|
| 2,714 |
|
|
| 819 |
|
| 1987 |
| 2/5/2002 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 734 |
|
|
| 2,956 |
|
|
| 967 |
|
|
| 784 |
|
|
| 3,873 |
|
|
| 4,657 |
|
|
| 1,480 |
|
| 1984 |
| 2/13/2002 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 394 |
|
|
| 1,595 |
|
|
| 562 |
|
|
| 421 |
|
|
| 2,130 |
|
|
| 2,551 |
|
|
| 823 |
|
| 1985 |
| 2/13/2002 |
| 5 to 40 years |
San Antonio-Hunt |
| TX |
|
|
|
| 381 |
|
|
| 1,545 |
|
|
| 6,688 |
|
|
| 618 |
|
|
| 7,996 |
|
|
| 8,614 |
|
|
| 1,369 |
|
| 1980/17 |
| 2/13/2002 |
| 5 to 40 years |
Houston-Humble |
| TX |
|
|
|
| 919 |
|
|
| 3,696 |
|
|
| 724 |
|
|
| 919 |
|
|
| 4,420 |
|
|
| 5,339 |
|
|
| 1,682 |
|
| 1998/02 |
| 6/19/2002 |
| 5 to 40 years |
Houston-Pasadena |
| TX |
|
|
|
| 612 |
|
|
| 2,468 |
|
|
| 478 |
|
|
| 612 |
|
|
| 2,946 |
|
|
| 3,558 |
|
|
| 1,136 |
|
| 1999 |
| 6/19/2002 |
| 5 to 40 years |
Houston-League City |
| TX |
|
|
|
| 689 |
|
|
| 3,159 |
|
|
| 824 |
|
|
| 688 |
|
|
| 3,984 |
|
|
| 4,672 |
|
|
| 1,444 |
|
| 1994/97 |
| 6/19/2002 |
| 5 to 40 years |
Houston-Montgomery |
| TX |
|
|
|
| 817 |
|
|
| 3,286 |
|
|
| 2,231 |
|
|
| 1,119 |
|
|
| 5,215 |
|
|
| 6,334 |
|
|
| 1,838 |
|
| 1998 |
| 6/19/2002 |
| 5 to 40 years |
Houston-S. Hwy 6 |
| TX |
|
|
|
| 407 |
|
|
| 1,650 |
|
|
| 856 |
|
|
| 407 |
|
|
| 2,506 |
|
|
| 2,913 |
|
|
| 793 |
|
| 1997 |
| 6/19/2002 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 817 |
|
|
| 3,287 |
|
|
| 3,517 |
|
|
| 817 |
|
|
| 6,804 |
|
|
| 7,621 |
|
|
| 1,495 |
|
| 1996/17 |
| 6/19/2002 |
| 5 to 40 years |
The Hamptons |
| NY |
|
|
|
| 2,207 |
|
|
| 8,866 |
|
|
| 914 |
|
|
| 2,207 |
|
|
| 9,780 |
|
|
| 11,987 |
|
|
| 3,718 |
|
| 1989/95 |
| 12/16/2002 |
| 5 to 40 years |
The Hamptons |
| NY |
|
|
|
| 1,131 |
|
|
| 4,564 |
|
|
| 629 |
|
|
| 1,131 |
|
|
| 5,193 |
|
|
| 6,324 |
|
|
| 1,953 |
|
| 1998 |
| 12/16/2002 |
| 5 to 40 years |
The Hamptons |
| NY |
|
|
|
| 635 |
|
|
| 2,918 |
|
|
| 442 |
|
|
| 635 |
|
|
| 3,360 |
|
|
| 3,995 |
|
|
| 1,270 |
|
| 1997 |
| 12/16/2002 |
| 5 to 40 years |
The Hamptons |
| NY |
|
|
|
| 1,251 |
|
|
| 5,744 |
|
|
| 789 |
|
|
| 1,252 |
|
|
| 6,532 |
|
|
| 7,784 |
|
|
| 2,361 |
|
| 1994/98 |
| 12/16/2002 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 1,039 |
|
|
| 4,201 |
|
|
| 349 |
|
|
| 1,039 |
|
|
| 4,550 |
|
|
| 5,589 |
|
|
| 1,643 |
|
| 1995/99 |
| 8/26/2003 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 827 |
|
|
| 3,776 |
|
|
| 551 |
|
|
| 827 |
|
|
| 4,327 |
|
|
| 5,154 |
|
|
| 1,537 |
|
| 1998/01 |
| 10/1/2003 |
| 5 to 40 years |
Stamford |
| CT |
|
|
|
| 2,713 |
|
|
| 11,013 |
|
|
| 764 |
|
|
| 2,713 |
|
|
| 11,777 |
|
|
| 14,490 |
|
|
| 4,200 |
|
| 1998 |
| 3/17/2004 |
| 5 to 40 years |
Houston-Tomball |
| TX |
|
|
|
| 773 |
|
|
| 3,170 |
|
|
| 1,876 |
|
|
| 773 |
|
|
| 5,046 |
|
|
| 5,819 |
|
|
| 1,727 |
|
| 2000 |
| 5/19/2004 |
| 5 to 40 years |
Houston-Conroe |
| TX |
|
|
|
| 1,195 |
|
|
| 4,877 |
|
|
| 463 |
|
|
| 1,195 |
|
|
| 5,340 |
|
|
| 6,535 |
|
|
| 1,817 |
|
| 2001 |
| 5/19/2004 |
| 5 to 40 years |
Houston-Spring |
| TX |
|
|
|
| 1,103 |
|
|
| 4,550 |
|
|
| 529 |
|
|
| 1,103 |
|
|
| 5,079 |
|
|
| 6,182 |
|
|
| 1,832 |
|
| 2001 |
| 5/19/2004 |
| 5 to 40 years |
Houston-Bissonnet |
| TX |
|
|
|
| 1,061 |
|
|
| 4,427 |
|
|
| 2,920 |
|
|
| 1,061 |
|
|
| 7,347 |
|
|
| 8,408 |
|
|
| 2,382 |
|
| 2003 |
| 5/19/2004 |
| 5 to 40 years |
Houston-Alvin |
| TX |
|
|
|
| 388 |
|
|
| 1,640 |
|
|
| 1,052 |
|
|
| 388 |
|
|
| 2,692 |
|
|
| 3,080 |
|
|
| 883 |
|
| 2003 |
| 5/19/2004 |
| 5 to 40 years |
Clearwater |
| FL |
|
|
|
| 1,720 |
|
|
| 6,986 |
|
|
| 323 |
|
|
| 1,720 |
|
|
| 7,309 |
|
|
| 9,029 |
|
|
| 2,563 |
|
| 2001 |
| 6/3/2004 |
| 5 to 40 years |
Houston-Missouri City |
| TX |
|
|
|
| 1,167 |
|
|
| 4,744 |
|
|
| 3,620 |
|
|
| 1,566 |
|
|
| 7,965 |
|
|
| 9,531 |
|
|
| 2,379 |
|
| 1998 |
| 6/23/2004 |
| 5 to 40 years |
Chattanooga-Hixson |
| TN |
|
|
|
| 1,365 |
|
|
| 5,569 |
|
|
| 1,882 |
|
|
| 1,365 |
|
|
| 7,451 |
|
|
| 8,816 |
|
|
| 2,519 |
|
| 1998/02 |
| 8/4/2004 |
| 5 to 40 years |
Austin-Round Rock |
| TX |
|
|
|
| 2,047 |
|
|
| 5,857 |
|
|
| 951 |
|
|
| 1,976 |
|
|
| 6,879 |
|
|
| 8,855 |
|
|
| 2,366 |
|
| 2000 |
| 8/5/2004 |
| 5 to 40 years |
Long Island-Bayshore |
| NY |
|
|
|
| 1,131 |
|
|
| 4,609 |
|
|
| 284 |
|
|
| 1,131 |
|
|
| 4,893 |
|
|
| 6,024 |
|
|
| 1,584 |
|
| 2003 |
| 3/15/2005 |
| 5 to 40 years |
Syracuse - Cicero |
| NY |
|
|
|
| 527 |
|
|
| 2,121 |
|
|
| 3,309 |
|
|
| 527 |
|
|
| 5,430 |
|
|
| 5,957 |
|
|
| 1,133 |
|
| 1988/02/16 |
| 3/16/2005 |
| 5 to 40 years |
Boston-Springfield |
| MA |
|
|
|
| 612 |
|
|
| 2,501 |
|
|
| 646 |
|
|
| 612 |
|
|
| 3,147 |
|
|
| 3,759 |
|
|
| 934 |
|
| 1965/75 |
| 4/12/2005 |
| 5 to 40 years |
Stamford |
| CT |
|
|
|
| 1,612 |
|
|
| 6,585 |
|
|
| 408 |
|
|
| 1,612 |
|
|
| 6,993 |
|
|
| 8,605 |
|
|
| 2,324 |
|
| 2002 |
| 4/14/2005 |
| 5 to 40 years |
Montgomery-Richard |
| AL |
|
|
|
| 1,906 |
|
|
| 7,726 |
|
|
| 499 |
|
|
| 1,906 |
|
|
| 8,225 |
|
|
| 10,131 |
|
|
| 2,646 |
|
| 1997 |
| 6/1/2005 |
| 5 to 40 years |
Houston-Jones |
| TX |
|
|
|
| 1,214 |
|
|
| 4,949 |
|
|
| 372 |
|
|
| 1,215 |
|
|
| 5,320 |
|
|
| 6,535 |
|
|
| 1,747 |
|
| 1997/99 |
| 6/6/2005 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Boston-Oxford |
| MA |
|
|
|
| 470 |
|
|
| 1,902 |
|
|
| 1,521 |
|
|
| 470 |
|
|
| 3,423 |
|
|
| 3,893 |
|
|
| 1,046 |
|
| 2002 |
| 6/23/2005 |
| 5 to 40 years |
Austin-290E |
| TX |
|
|
|
| 537 |
|
|
| 2,183 |
|
|
| 6,061 |
|
|
| 491 |
|
|
| 8,290 |
|
|
| 8,781 |
|
|
| 744 |
|
| 2003/17 |
| 7/12/2005 |
| 5 to 40 years |
San Antonio-Marbach |
| TX |
|
|
|
| 556 |
|
|
| 2,265 |
|
|
| 591 |
|
|
| 556 |
|
|
| 2,856 |
|
|
| 3,412 |
|
|
| 959 |
|
| 2003 |
| 7/12/2005 |
| 5 to 40 years |
Austin-South 1st |
| TX |
|
|
|
| 754 |
|
|
| 3,065 |
|
|
| 330 |
|
|
| 754 |
|
|
| 3,395 |
|
|
| 4,149 |
|
|
| 1,114 |
|
| 2003 |
| 7/12/2005 |
| 5 to 40 years |
Houston-Pinehurst |
| TX |
|
|
|
| 484 |
|
|
| 1,977 |
|
|
| 1,565 |
|
|
| 484 |
|
|
| 3,542 |
|
|
| 4,026 |
|
|
| 1,056 |
|
| 2002/04 |
| 7/12/2005 |
| 5 to 40 years |
Atlanta-Marietta |
| GA |
|
|
|
| 811 |
|
|
| 3,397 |
|
|
| 578 |
|
|
| 811 |
|
|
| 3,975 |
|
|
| 4,786 |
|
|
| 1,297 |
|
| 2003 |
| 9/15/2005 |
| 5 to 40 years |
Baton Rouge |
| LA |
|
|
|
| 719 |
|
|
| 2,927 |
|
|
| 2,669 |
|
|
| 719 |
|
|
| 5,596 |
|
|
| 6,315 |
|
|
| 1,392 |
|
| 1984/94 |
| 11/15/2005 |
| 5 to 40 years |
San Marcos-Hwy 35S |
| TX |
|
|
|
| 628 |
|
|
| 2,532 |
|
|
| 3,431 |
|
|
| 982 |
|
|
| 5,609 |
|
|
| 6,591 |
|
|
| 922 |
|
| 2001/16 |
| 1/10/2006 |
| 5 to 40 years |
Houston-Baytown |
| TX |
|
|
|
| 596 |
|
|
| 2,411 |
|
|
| 329 |
|
|
| 596 |
|
|
| 2,740 |
|
|
| 3,336 |
|
|
| 814 |
|
| 2002 |
| 1/10/2006 |
| 5 to 40 years |
Houston-Cypress |
| TX |
|
|
|
| 721 |
|
|
| 2,994 |
|
|
| 2,340 |
|
|
| 721 |
|
|
| 5,334 |
|
|
| 6,055 |
|
|
| 1,455 |
|
| 2003 |
| 1/13/2006 |
| 5 to 40 years |
Rochester |
| NY |
|
|
|
| 937 |
|
|
| 3,779 |
|
|
| 230 |
|
|
| 937 |
|
|
| 4,009 |
|
|
| 4,946 |
|
|
| 1,246 |
|
| 2002/06 |
| 2/1/2006 |
| 5 to 40 years |
Houston-Jones Rd 2 |
| TX |
|
|
|
| 707 |
|
|
| 2,933 |
|
|
| 2,884 |
|
|
| 707 |
|
|
| 5,817 |
|
|
| 6,524 |
|
|
| 1,666 |
|
| 2000 |
| 3/9/2006 |
| 5 to 40 years |
Lafayette |
| LA |
|
|
|
| 411 |
|
|
| 1,621 |
|
|
| 270 |
|
|
| 411 |
|
|
| 1,891 |
|
|
| 2,302 |
|
|
| 608 |
|
| 1997 |
| 4/13/2006 |
| 5 to 40 years |
Lafayette |
| LA |
|
|
|
| 463 |
|
|
| 1,831 |
|
|
| 198 |
|
|
| 463 |
|
|
| 2,029 |
|
|
| 2,492 |
|
|
| 644 |
|
| 2001/04 |
| 4/13/2006 |
| 5 to 40 years |
Lafayette |
| LA |
|
|
|
| 601 |
|
|
| 2,406 |
|
|
| 1,480 |
|
|
| 601 |
|
|
| 3,886 |
|
|
| 4,487 |
|
|
| 1,154 |
|
| 2002 |
| 4/13/2006 |
| 5 to 40 years |
Lafayette |
| LA |
|
|
|
| 542 |
|
|
| 1,319 |
|
|
| 2,229 |
|
|
| 542 |
|
|
| 3,548 |
|
|
| 4,090 |
|
|
| 986 |
|
| 1997/99 |
| 4/13/2006 |
| 5 to 40 years |
Manchester |
| NH |
|
|
|
| 832 |
|
|
| 3,268 |
|
|
| 184 |
|
|
| 832 |
|
|
| 3,452 |
|
|
| 4,284 |
|
|
| 1,055 |
|
| 2000 |
| 4/26/2006 |
| 5 to 40 years |
Clearwater-Largo |
| FL |
|
|
|
| 1,270 |
|
|
| 5,037 |
|
|
| 455 |
|
|
| 1,270 |
|
|
| 5,492 |
|
|
| 6,762 |
|
|
| 1,625 |
|
| 1998 |
| 6/22/2006 |
| 5 to 40 years |
Clearwater-Pinellas Park |
| FL |
|
|
|
| 929 |
|
|
| 3,676 |
|
|
| 344 |
|
|
| 929 |
|
|
| 4,020 |
|
|
| 4,949 |
|
|
| 1,166 |
|
| 2000 |
| 6/22/2006 |
| 5 to 40 years |
Clearwater-Tarpon Spring |
| FL |
|
|
|
| 696 |
|
|
| 2,739 |
|
|
| 267 |
|
|
| 696 |
|
|
| 3,006 |
|
|
| 3,702 |
|
|
| 889 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
New Orleans |
| LA |
|
|
|
| 1,220 |
|
|
| 4,805 |
|
|
| 332 |
|
|
| 1,220 |
|
|
| 5,137 |
|
|
| 6,357 |
|
|
| 1,548 |
|
| 2000 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Meramec |
| MO |
|
|
|
| 1,113 |
|
|
| 4,359 |
|
|
| 479 |
|
|
| 1,113 |
|
|
| 4,838 |
|
|
| 5,951 |
|
|
| 1,427 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Charles Rock |
| MO |
|
|
|
| 766 |
|
|
| 3,040 |
|
|
| 1,500 |
|
|
| 766 |
|
|
| 4,540 |
|
|
| 5,306 |
|
|
| 1,105 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Shackelford |
| MO |
|
|
|
| 828 |
|
|
| 3,290 |
|
|
| 222 |
|
|
| 828 |
|
|
| 3,512 |
|
|
| 4,340 |
|
|
| 1,055 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-W.Washington |
| MO |
|
|
|
| 734 |
|
|
| 2,867 |
|
|
| 2,520 |
|
|
| 734 |
|
|
| 5,387 |
|
|
| 6,121 |
|
|
| 1,255 |
|
| 1980/01/15 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Howdershell |
| MO |
|
|
|
| 899 |
|
|
| 3,596 |
|
|
| 356 |
|
|
| 899 |
|
|
| 3,952 |
|
|
| 4,851 |
|
|
| 1,166 |
|
| 2000 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Lemay Ferry |
| MO |
|
|
|
| 890 |
|
|
| 3,552 |
|
|
| 475 |
|
|
| 890 |
|
|
| 4,027 |
|
|
| 4,917 |
|
|
| 1,186 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
St Louis-Manchester |
| MO |
|
|
|
| 697 |
|
|
| 2,711 |
|
|
| 224 |
|
|
| 697 |
|
|
| 2,935 |
|
|
| 3,632 |
|
|
| 868 |
|
| 2000 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 1,256 |
|
|
| 4,946 |
|
|
| 572 |
|
|
| 1,256 |
|
|
| 5,518 |
|
|
| 6,774 |
|
|
| 1,601 |
|
| 1998/03 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 605 |
|
|
| 2,434 |
|
|
| 215 |
|
|
| 605 |
|
|
| 2,649 |
|
|
| 3,254 |
|
|
| 771 |
|
| 2004 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 607 |
|
|
| 2,428 |
|
|
| 241 |
|
|
| 607 |
|
|
| 2,669 |
|
|
| 3,276 |
|
|
| 793 |
|
| 2004 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 1,073 |
|
|
| 4,276 |
|
|
| 134 |
|
|
| 1,073 |
|
|
| 4,410 |
|
|
| 5,483 |
|
|
| 1,298 |
|
| 2003 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 549 |
|
|
| 2,180 |
|
|
| 1,184 |
|
|
| 549 |
|
|
| 3,364 |
|
|
| 3,913 |
|
|
| 889 |
|
| 1998 |
| 6/22/2006 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 644 |
|
|
| 2,542 |
|
|
| 169 |
|
|
| 644 |
|
|
| 2,711 |
|
|
| 3,355 |
|
|
| 809 |
|
| 1999 |
| 6/22/2006 |
| 5 to 40 years |
San Antonio-Blanco |
| TX |
|
|
|
| 963 |
|
|
| 3,836 |
|
|
| 233 |
|
|
| 963 |
|
|
| 4,069 |
|
|
| 5,032 |
|
|
| 1,237 |
|
| 2004 |
| 6/22/2006 |
| 5 to 40 years |
San Antonio-Broadway |
| TX |
|
|
|
| 773 |
|
|
| 3,060 |
|
|
| 2,200 |
|
|
| 773 |
|
|
| 5,260 |
|
|
| 6,033 |
|
|
| 1,287 |
|
| 2000 |
| 6/22/2006 |
| 5 to 40 years |
San Antonio-Huebner |
| TX |
|
|
|
| 1,175 |
|
|
| 4,624 |
|
|
| 396 |
|
|
| 1,175 |
|
|
| 5,020 |
|
|
| 6,195 |
|
|
| 1,454 |
|
| 1998 |
| 6/22/2006 |
| 5 to 40 years |
Nashua |
| NH |
|
|
|
| 617 |
|
|
| 2,422 |
|
|
| 619 |
|
|
| 617 |
|
|
| 3,041 |
|
|
| 3,658 |
|
|
| 905 |
|
| 1989 |
| 6/29/2006 |
| 5 to 40 years |
Lafayette |
| LA |
|
|
|
| 699 |
|
|
| 2,784 |
|
|
| 3,836 |
|
|
| 699 |
|
|
| 6,620 |
|
|
| 7,319 |
|
|
| 1,435 |
|
| 1995/99/16 |
| 8/1/2006 |
| 5 to 40 years |
Chattanooga-Lee Hwy II |
| TN |
|
|
|
| 619 |
|
|
| 2,471 |
|
|
| 208 |
|
|
| 619 |
|
|
| 2,679 |
|
|
| 3,298 |
|
|
| 785 |
|
| 2002 |
| 8/7/2006 |
| 5 to 40 years |
Montgomery-E.S.Blvd |
| AL |
|
|
|
| 1,158 |
|
|
| 4,639 |
|
|
| 1,283 |
|
|
| 1,158 |
|
|
| 5,922 |
|
|
| 7,080 |
|
|
| 1,673 |
|
| 1996/97 |
| 9/28/2006 |
| 5 to 40 years |
Auburn-Pepperell Pkwy |
| AL |
|
|
|
| 590 |
|
|
| 2,361 |
|
|
| 600 |
|
|
| 590 |
|
|
| 2,961 |
|
|
| 3,551 |
|
|
| 858 |
|
| 1998 |
| 9/28/2006 |
| 5 to 40 years |
Auburn-Gatewood Dr |
| AL |
|
|
|
| 694 |
|
|
| 2,758 |
|
|
| 403 |
|
|
| 694 |
|
|
| 3,161 |
|
|
| 3,855 |
|
|
| 882 |
|
| 2002/03 |
| 9/28/2006 |
| 5 to 40 years |
Columbus-Williams Rd |
| GA |
|
|
|
| 736 |
|
|
| 2,905 |
|
|
| 406 |
|
|
| 736 |
|
|
| 3,311 |
|
|
| 4,047 |
|
|
| 947 |
|
| 2002/04/06 |
| 9/28/2006 |
| 5 to 40 years |
Columbus-Miller Rd |
| GA |
|
|
|
| 975 |
|
|
| 3,854 |
|
|
| 1,394 |
|
|
| 975 |
|
|
| 5,248 |
|
|
| 6,223 |
|
|
| 1,219 |
|
| 1995 |
| 9/28/2006 |
| 5 to 40 years |
Columbus-Armour Rd |
| GA |
|
|
|
| - |
|
|
| 3,680 |
|
|
| 337 |
|
|
| - |
|
|
| 4,017 |
|
|
| 4,017 |
|
|
| 1,153 |
|
| 2004/05 |
| 9/28/2006 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Columbus-Amber Dr |
| GA |
|
|
|
| 439 |
|
|
| 1,745 |
|
|
| 394 |
|
|
| 439 |
|
|
| 2,139 |
|
|
| 2,578 |
|
|
| 637 |
|
| 1998 |
| 9/28/2006 |
| 5 to 40 years |
Concord |
| NH |
|
|
|
| 813 |
|
|
| 3,213 |
|
|
| 2,072 |
|
|
| 813 |
|
|
| 5,285 |
|
|
| 6,098 |
|
|
| 1,413 |
|
| 2000 |
| 10/31/2006 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 929 |
|
|
| 3,647 |
|
|
| 453 |
|
|
| 930 |
|
|
| 4,099 |
|
|
| 5,029 |
|
|
| 1,098 |
|
| 2002/04 |
| 3/8/2007 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 1,537 |
|
|
| 6,018 |
|
|
| 642 |
|
|
| 1,537 |
|
|
| 6,660 |
|
|
| 8,197 |
|
|
| 1,858 |
|
| 2003/06 |
| 3/8/2007 |
| 5 to 40 years |
Buffalo-Langner Rd |
| NY |
|
|
|
| 532 |
|
|
| 2,119 |
|
|
| 3,600 |
|
|
| 532 |
|
|
| 5,719 |
|
|
| 6,251 |
|
|
| 1,060 |
|
| 1993/07/15 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-Transit Rd |
| NY |
|
|
|
| 437 |
|
|
| 1,794 |
|
|
| 702 |
|
|
| 437 |
|
|
| 2,496 |
|
|
| 2,933 |
|
|
| 672 |
|
| 1998 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-Lake Ave |
| NY |
|
|
|
| 638 |
|
|
| 2,531 |
|
|
| 2,964 |
|
|
| 638 |
|
|
| 5,495 |
|
|
| 6,133 |
|
|
| 1,007 |
|
| 1997/06 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-Union Rd |
| NY |
|
|
|
| 348 |
|
|
| 1,344 |
|
|
| 529 |
|
|
| 348 |
|
|
| 1,873 |
|
|
| 2,221 |
|
|
| 502 |
|
| 1998 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-NF Blvd |
| NY |
|
|
|
| 323 |
|
|
| 1,331 |
|
|
| 249 |
|
|
| 323 |
|
|
| 1,580 |
|
|
| 1,903 |
|
|
| 464 |
|
| 1998 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-Young St |
| NY |
|
|
|
| 315 |
|
|
| 2,185 |
|
|
| 1,206 |
|
|
| 316 |
|
|
| 3,390 |
|
|
| 3,706 |
|
|
| 868 |
|
| 1999/00 |
| 3/30/2007 |
| 5 to 40 years |
Buffalo-Sheridan Dr |
| NY |
|
|
|
| 961 |
|
|
| 3,827 |
|
|
| 2,638 |
|
|
| 961 |
|
|
| 6,465 |
|
|
| 7,426 |
|
|
| 1,472 |
|
| 1999 |
| 3/30/2007 |
| 5 to 40 years |
Bufrfalo-Transit Rd |
| NY |
|
|
|
| 375 |
|
|
| 1,498 |
|
|
| 749 |
|
|
| 375 |
|
|
| 2,247 |
|
|
| 2,622 |
|
|
| 570 |
|
| 1990/95 |
| 3/30/2007 |
| 5 to 40 years |
Rochester-Phillips Rd |
| NY |
|
|
|
| 1,003 |
|
|
| 4,002 |
|
|
| 145 |
|
|
| 1,003 |
|
|
| 4,147 |
|
|
| 5,150 |
|
|
| 1,143 |
|
| 1999 |
| 3/30/2007 |
| 5 to 40 years |
San Antonio-Foster |
| TX |
|
|
|
| 676 |
|
|
| 2,685 |
|
|
| 466 |
|
|
| 676 |
|
|
| 3,151 |
|
|
| 3,827 |
|
|
| 915 |
|
| 2003/06 |
| 5/21/2007 |
| 5 to 40 years |
Huntsville-Memorial Pkwy |
| AL |
|
|
|
| 1,607 |
|
|
| 6,338 |
|
|
| 1,113 |
|
|
| 1,677 |
|
|
| 7,381 |
|
|
| 9,058 |
|
|
| 1,927 |
|
| 1989/06 |
| 6/1/2007 |
| 5 to 40 years |
Huntsville-Madison 1 |
| AL |
|
|
|
| 1,016 |
|
|
| 4,013 |
|
|
| 467 |
|
|
| 1,017 |
|
|
| 4,479 |
|
|
| 5,496 |
|
|
| 1,241 |
|
| 1993/07 |
| 6/1/2007 |
| 5 to 40 years |
Bilox-Gulfport |
| MS |
|
|
|
| 1,423 |
|
|
| 5,624 |
|
|
| 222 |
|
|
| 1,423 |
|
|
| 5,846 |
|
|
| 7,269 |
|
|
| 1,615 |
|
| 1998/05 |
| 6/1/2007 |
| 5 to 40 years |
Huntsville-Hwy 72 |
| AL |
|
|
|
| 1,206 |
|
|
| 4,775 |
|
|
| 401 |
|
|
| 1,206 |
|
|
| 5,176 |
|
|
| 6,382 |
|
|
| 1,408 |
|
| 1998/06 |
| 6/1/2007 |
| 5 to 40 years |
Mobile-Airport Blvd |
| AL |
|
|
|
| 1,216 |
|
|
| 4,819 |
|
|
| 391 |
|
|
| 1,216 |
|
|
| 5,210 |
|
|
| 6,426 |
|
|
| 1,454 |
|
| 2000/07 |
| 6/1/2007 |
| 5 to 40 years |
Bilox-Gulfport |
| MS |
|
|
|
| 1,345 |
|
|
| 5,325 |
|
|
| 159 |
|
|
| 1,301 |
|
|
| 5,528 |
|
|
| 6,829 |
|
|
| 1,493 |
|
| 2002/04 |
| 6/1/2007 |
| 5 to 40 years |
Huntsville-Madison 2 |
| AL |
|
|
|
| 1,164 |
|
|
| 4,624 |
|
|
| 330 |
|
|
| 1,164 |
|
|
| 4,954 |
|
|
| 6,118 |
|
|
| 1,344 |
|
| 2002/06 |
| 6/1/2007 |
| 5 to 40 years |
Foley-Hwy 59 |
| AL |
|
|
|
| 1,346 |
|
|
| 5,474 |
|
|
| 1,592 |
|
|
| 1,347 |
|
|
| 7,065 |
|
|
| 8,412 |
|
|
| 1,683 |
|
| 2003/06/15 |
| 6/1/2007 |
| 5 to 40 years |
Pensacola 6-Nine Mile |
| FL |
|
|
|
| 1,029 |
|
|
| 4,180 |
|
|
| 213 |
|
|
| 1,029 |
|
|
| 4,393 |
|
|
| 5,422 |
|
|
| 1,289 |
|
| 2003/06 |
| 6/1/2007 |
| 5 to 40 years |
Auburn-College St |
| AL |
|
|
|
| 686 |
|
|
| 2,732 |
|
|
| 245 |
|
|
| 686 |
|
|
| 2,977 |
|
|
| 3,663 |
|
|
| 838 |
|
| 2003 |
| 6/1/2007 |
| 5 to 40 years |
Biloxi-Gulfport |
| MS |
|
|
|
| 1,811 |
|
|
| 7,152 |
|
|
| 163 |
|
|
| 1,811 |
|
|
| 7,315 |
|
|
| 9,126 |
|
|
| 1,960 |
|
| 2004/06 |
| 6/1/2007 |
| 5 to 40 years |
Pensacola 7-Hwy 98 |
| FL |
|
|
|
| 732 |
|
|
| 3,015 |
|
|
| 118 |
|
|
| 732 |
|
|
| 3,133 |
|
|
| 3,865 |
|
|
| 900 |
|
| 2006 |
| 6/1/2007 |
| 5 to 40 years |
Montgomery-Arrowhead |
| AL |
|
|
|
| 1,075 |
|
|
| 4,333 |
|
|
| 347 |
|
|
| 1,075 |
|
|
| 4,680 |
|
|
| 5,755 |
|
|
| 1,263 |
|
| 2006 |
| 6/1/2007 |
| 5 to 40 years |
Montgomery-McLemore |
| AL |
|
|
|
| 885 |
|
|
| 3,586 |
|
|
| 286 |
|
|
| 885 |
|
|
| 3,872 |
|
|
| 4,757 |
|
|
| 1,028 |
|
| 2006 |
| 6/1/2007 |
| 5 to 40 years |
Houston-Beaumont |
| TX |
|
|
|
| 742 |
|
|
| 3,024 |
|
|
| 373 |
|
|
| 742 |
|
|
| 3,397 |
|
|
| 4,139 |
|
|
| 876 |
|
| 2002/05 |
| 11/14/2007 |
| 5 to 40 years |
Hattiesburg-Clasic |
| MS |
|
|
|
| 444 |
|
|
| 1,799 |
|
|
| 212 |
|
|
| 444 |
|
|
| 2,011 |
|
|
| 2,455 |
|
|
| 526 |
|
| 1998 |
| 12/19/2007 |
| 5 to 40 years |
Biloxi-Ginger |
| MS |
|
|
|
| 384 |
|
|
| 1,548 |
|
|
| 159 |
|
|
| 384 |
|
|
| 1,707 |
|
|
| 2,091 |
|
|
| 423 |
|
| 2000 |
| 12/19/2007 |
| 5 to 40 years |
Foley-7905 St Hwy 59 |
| AL |
|
|
|
| 437 |
|
|
| 1,757 |
|
|
| 198 |
|
|
| 437 |
|
|
| 1,955 |
|
|
| 2,392 |
|
|
| 495 |
|
| 2000 |
| 12/19/2007 |
| 5 to 40 years |
Jackson-Ridgeland |
| MS |
|
|
|
| 1,479 |
|
|
| 5,965 |
|
|
| 596 |
|
|
| 1,479 |
|
|
| 6,561 |
|
|
| 8,040 |
|
|
| 1,700 |
|
| 1997/00 |
| 1/17/2008 |
| 5 to 40 years |
Jackson-5111 |
| MS |
|
|
|
| 1,337 |
|
|
| 5,377 |
|
|
| 279 |
|
|
| 1,337 |
|
|
| 5,656 |
|
|
| 6,993 |
|
|
| 1,425 |
|
| 2003 |
| 1/17/2008 |
| 5 to 40 years |
Cincinnati-Robertson |
| OH |
|
|
|
| 852 |
|
|
| 3,409 |
|
|
| 281 |
|
|
| 852 |
|
|
| 3,690 |
|
|
| 4,542 |
|
|
| 845 |
|
| 2003/04 |
| 12/31/2008 |
| 5 to 40 years |
Richmond-Bridge Rd |
| VA |
|
|
|
| 1,047 |
|
|
| 5,981 |
|
|
| 2,722 |
|
|
| 1,047 |
|
|
| 8,703 |
|
|
| 9,750 |
|
|
| 1,528 |
|
| 2009/16 |
| 10/1/2009 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 846 |
|
|
| 4,095 |
|
|
| 229 |
|
|
| 846 |
|
|
| 4,324 |
|
|
| 5,170 |
|
|
| 809 |
|
| 2000 |
| 12/28/2010 |
| 5 to 40 years |
Charlotte-Wallace |
| NC |
|
|
|
| 961 |
|
|
| 3,702 |
|
|
| 1,272 |
|
|
| 961 |
|
|
| 4,974 |
|
|
| 5,935 |
|
|
| 788 |
|
| 2008/16 |
| 12/29/2010 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 574 |
|
|
| 3,975 |
|
|
| 268 |
|
|
| 575 |
|
|
| 4,242 |
|
|
| 4,817 |
|
|
| 763 |
|
| 2008 |
| 12/29/2010 |
| 5 to 40 years |
Charlotte-Westmoreland |
| NC |
|
|
|
| 513 |
|
|
| 5,317 |
|
|
| 47 |
|
|
| 513 |
|
|
| 5,364 |
|
|
| 5,877 |
|
|
| 964 |
|
| 2009 |
| 12/29/2010 |
| 5 to 40 years |
Charlotte-Matthews |
| NC |
|
|
|
| 1,129 |
|
|
| 4,767 |
|
|
| 156 |
|
|
| 1,129 |
|
|
| 4,923 |
|
|
| 6,052 |
|
|
| 913 |
|
| 2009 |
| 12/29/2010 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 381 |
|
|
| 3,575 |
|
|
| 107 |
|
|
| 381 |
|
|
| 3,682 |
|
|
| 4,063 |
|
|
| 672 |
|
| 2008 |
| 12/29/2010 |
| 5 to 40 years |
Charlotte-Zeb Morris |
| NC |
|
|
|
| 965 |
|
|
| 3,355 |
|
|
| 133 |
|
|
| 965 |
|
|
| 3,488 |
|
|
| 4,453 |
|
|
| 635 |
|
| 2007 |
| 12/29/2010 |
| 5 to 40 years |
Fair Lawn |
| NJ |
|
|
|
| 796 |
|
|
| 9,467 |
|
|
| 417 |
|
|
| 796 |
|
|
| 9,884 |
|
|
| 10,680 |
|
|
| 1,648 |
|
| 1999 |
| 7/14/2011 |
| 5 to 40 years |
Elizabeth |
| NJ |
|
|
|
| 885 |
|
|
| 3,073 |
|
|
| 755 |
|
|
| 885 |
|
|
| 3,828 |
|
|
| 4,713 |
|
|
| 575 |
|
| 1988 |
| 7/14/2011 |
| 5 to 40 years |
Saint Louis-High Ridge |
| MO |
|
|
|
| 197 |
|
|
| 2,132 |
|
|
| 90 |
|
|
| 197 |
|
|
| 2,222 |
|
|
| 2,419 |
|
|
| 444 |
|
| 2007 |
| 7/28/2011 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Atlanta-Decatur |
| GA |
|
|
|
| 1,043 |
|
|
| 8,252 |
|
|
| 111 |
|
|
| 1,043 |
|
|
| 8,363 |
|
|
| 9,406 |
|
|
| 1,366 |
|
| 2006 |
| 8/17/2011 |
| 5 to 40 years |
Houston-Humble |
| TX |
|
|
|
| 825 |
|
|
| 4,201 |
|
|
| 567 |
|
|
| 825 |
|
|
| 4,768 |
|
|
| 5,593 |
|
|
| 810 |
|
| 1993 |
| 9/22/2011 |
| 5 to 40 years |
Dallas-Fort Worth |
| TX |
|
|
|
| 693 |
|
|
| 3,552 |
|
|
| 169 |
|
|
| 693 |
|
|
| 3,721 |
|
|
| 4,414 |
|
|
| 656 |
|
| 2001 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Hwy 6N |
| TX |
|
|
|
| 1,243 |
|
|
| 3,106 |
|
|
| 175 |
|
|
| 1,243 |
|
|
| 3,281 |
|
|
| 4,524 |
|
|
| 603 |
|
| 2000 |
| 9/22/2011 |
| 5 to 40 years |
Austin-Cedar Park |
| TX |
|
|
|
| 1,559 |
|
|
| 2,727 |
|
|
| 100 |
|
|
| 1,559 |
|
|
| 2,827 |
|
|
| 4,386 |
|
|
| 527 |
|
| 1998 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Katy |
| TX |
|
|
|
| 691 |
|
|
| 4,435 |
|
|
| 2,488 |
|
|
| 691 |
|
|
| 6,923 |
|
|
| 7,614 |
|
|
| 1,009 |
|
| 2000/15 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Deer Park |
| TX |
|
|
|
| 1,012 |
|
|
| 3,312 |
|
|
| 257 |
|
|
| 1,012 |
|
|
| 3,569 |
|
|
| 4,581 |
|
|
| 617 |
|
| 1998 |
| 9/22/2011 |
| 5 to 40 years |
Houston-W.Little York |
| TX |
|
|
|
| 575 |
|
|
| 3,557 |
|
|
| 209 |
|
|
| 575 |
|
|
| 3,766 |
|
|
| 4,341 |
|
|
| 705 |
|
| 1998 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Pasadena |
| TX |
|
|
|
| 705 |
|
|
| 4,223 |
|
|
| 234 |
|
|
| 705 |
|
|
| 4,457 |
|
|
| 5,162 |
|
|
| 784 |
|
| 2000 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Friendswood |
| TX |
|
|
|
| 1,168 |
|
|
| 2,315 |
|
|
| 289 |
|
|
| 1,168 |
|
|
| 2,604 |
|
|
| 3,772 |
|
|
| 467 |
|
| 1994 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Spring |
| TX |
|
|
|
| 2,152 |
|
|
| 3,027 |
|
|
| 339 |
|
|
| 2,152 |
|
|
| 3,366 |
|
|
| 5,518 |
|
|
| 638 |
|
| 1993 |
| 9/22/2011 |
| 5 to 40 years |
Houston-W.Sam Houston |
| TX |
|
|
|
| 402 |
|
|
| 3,602 |
|
|
| 271 |
|
|
| 402 |
|
|
| 3,873 |
|
|
| 4,275 |
|
|
| 660 |
|
| 1999 |
| 9/22/2011 |
| 5 to 40 years |
Austin-Pond Springs Rd |
| TX |
|
|
|
| 1,653 |
|
|
| 4,947 |
|
|
| 479 |
|
|
| 1,653 |
|
|
| 5,426 |
|
|
| 7,079 |
|
|
| 904 |
|
| 1984 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Spring |
| TX |
|
|
|
| 1,474 |
|
|
| 4,500 |
|
|
| 138 |
|
|
| 1,456 |
|
|
| 4,656 |
|
|
| 6,112 |
|
|
| 813 |
|
| 2006 |
| 9/22/2011 |
| 5 to 40 years |
Austin-Round Rock |
| TX |
|
|
|
| 177 |
|
|
| 3,223 |
|
|
| 190 |
|
|
| 177 |
|
|
| 3,413 |
|
|
| 3,590 |
|
|
| 595 |
|
| 1999 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Silverado Dr |
| TX |
|
|
|
| 1,438 |
|
|
| 4,583 |
|
|
| 178 |
|
|
| 1,438 |
|
|
| 4,761 |
|
|
| 6,199 |
|
|
| 814 |
|
| 2000 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Sugarland |
| TX |
|
|
|
| 272 |
|
|
| 3,236 |
|
|
| 199 |
|
|
| 272 |
|
|
| 3,435 |
|
|
| 3,707 |
|
|
| 632 |
|
| 2001 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Westheimer Rd |
| TX |
|
|
|
| 536 |
|
|
| 2,687 |
|
|
| 276 |
|
|
| 536 |
|
|
| 2,963 |
|
|
| 3,499 |
|
|
| 525 |
|
| 1997 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Wilcrest Dr |
| TX |
|
|
|
| 1,478 |
|
|
| 4,145 |
|
|
| 219 |
|
|
| 1,478 |
|
|
| 4,364 |
|
|
| 5,842 |
|
|
| 733 |
|
| 1999 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Woodlands |
| TX |
|
|
|
| 1,315 |
|
|
| 6,142 |
|
|
| 298 |
|
|
| 1,315 |
|
|
| 6,440 |
|
|
| 7,755 |
|
|
| 1,055 |
|
| 1997 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Woodlands |
| TX |
|
|
|
| 3,189 |
|
|
| 3,974 |
|
|
| 216 |
|
|
| 3,189 |
|
|
| 4,190 |
|
|
| 7,379 |
|
|
| 702 |
|
| 2000 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Katy Freeway |
| TX |
|
|
|
| 1,049 |
|
|
| 5,175 |
|
|
| 530 |
|
|
| 1,049 |
|
|
| 5,705 |
|
|
| 6,754 |
|
|
| 971 |
|
| 1999 |
| 9/22/2011 |
| 5 to 40 years |
Houston-Webster |
| TX |
| 1,700 |
|
| 2,054 |
|
|
| 2,138 |
|
|
| 2,895 |
|
|
| 2,054 |
|
|
| 5,033 |
|
|
| 7,087 |
|
|
| 508 |
|
| 1982/17 |
| 9/22/2011 |
| 5 to 40 years |
Newport News-Brick Kiln |
| VA |
|
|
|
| 2,848 |
|
|
| 5,892 |
|
|
| 108 |
|
|
| 2,848 |
|
|
| 6,000 |
|
|
| 8,848 |
|
|
| 1,021 |
|
| 2004 |
| 9/29/2011 |
| 5 to 40 years |
Penasacola-Palafox |
| FL |
|
|
|
| 197 |
|
|
| 4,281 |
|
|
| 696 |
|
|
| 197 |
|
|
| 4,977 |
|
|
| 5,174 |
|
|
| 754 |
|
| 1996 |
| 11/15/2011 |
| 5 to 40 years |
Miami |
| FL |
|
|
|
| 2,960 |
|
|
| 12,077 |
|
|
| 329 |
|
|
| 2,960 |
|
|
| 12,406 |
|
|
| 15,366 |
|
|
| 1,743 |
|
| 2005 |
| 5/16/2012 |
| 5 to 40 years |
Chicago - Lake Forest |
| IL |
|
|
|
| 1,932 |
|
|
| 11,606 |
|
|
| 203 |
|
|
| 1,932 |
|
|
| 11,809 |
|
|
| 13,741 |
|
|
| 1,679 |
|
| 1996/04 |
| 6/6/2012 |
| 5 to 40 years |
Chicago - Schaumburg |
| IL |
|
|
|
| 1,940 |
|
|
| 4,880 |
|
|
| 295 |
|
|
| 1,940 |
|
|
| 5,175 |
|
|
| 7,115 |
|
|
| 763 |
|
| 1998 |
| 6/6/2012 |
| 5 to 40 years |
Norfolk - E. Little Creek |
| VA |
|
|
|
| 911 |
|
|
| 5,862 |
|
|
| 75 |
|
|
| 911 |
|
|
| 5,937 |
|
|
| 6,848 |
|
|
| 871 |
|
| 2007 |
| 6/20/2012 |
| 5 to 40 years |
Atlanta-14th St. |
| GA |
|
|
|
| 1,560 |
|
|
| 6,766 |
|
|
| 77 |
|
|
| 1,560 |
|
|
| 6,843 |
|
|
| 8,403 |
|
|
| 982 |
|
| 2009 |
| 7/18/2012 |
| 5 to 40 years |
Jacksonville - Middleburg |
| FL |
|
|
|
| 644 |
|
|
| 5,719 |
|
|
| 92 |
|
|
| 644 |
|
|
| 5,811 |
|
|
| 6,455 |
|
|
| 800 |
|
| 2008 |
| 9/18/2012 |
| 5 to 40 years |
Jacksonville - Orange Park |
| FL |
|
|
|
| 772 |
|
|
| 3,882 |
|
|
| 84 |
|
|
| 772 |
|
|
| 3,966 |
|
|
| 4,738 |
|
|
| 556 |
|
| 2007 |
| 9/18/2012 |
| 5 to 40 years |
Jacksonville - St. Augustine |
| FL |
|
|
|
| 739 |
|
|
| 3,858 |
|
|
| 93 |
|
|
| 739 |
|
|
| 3,951 |
|
|
| 4,690 |
|
|
| 567 |
|
| 2007 |
| 9/18/2012 |
| 5 to 40 years |
Atlanta - NE Expressway |
| GA |
|
|
|
| 1,384 |
|
|
| 9,266 |
|
|
| 80 |
|
|
| 1,384 |
|
|
| 9,346 |
|
|
| 10,730 |
|
|
| 1,293 |
|
| 2009 |
| 9/18/2012 |
| 5 to 40 years |
Atlanta - Kennesaw |
| GA |
|
|
|
| 856 |
|
|
| 4,315 |
|
|
| 111 |
|
|
| 856 |
|
|
| 4,426 |
|
|
| 5,282 |
|
|
| 610 |
|
| 2008 |
| 9/18/2012 |
| 5 to 40 years |
Atlanta - Lawrenceville |
| GA |
|
|
|
| 855 |
|
|
| 3,838 |
|
|
| 123 |
|
|
| 855 |
|
|
| 3,961 |
|
|
| 4,816 |
|
|
| 553 |
|
| 2007 |
| 9/18/2012 |
| 5 to 40 years |
Atlanta - Woodstock |
| GA |
|
|
|
| 1,342 |
|
|
| 4,692 |
|
|
| 110 |
|
|
| 1,342 |
|
|
| 4,802 |
|
|
| 6,144 |
|
|
| 676 |
|
| 2009 |
| 9/18/2012 |
| 5 to 40 years |
Raleigh-Durham |
| NC |
|
|
|
| 2,337 |
|
|
| 4,901 |
|
|
| 256 |
|
|
| 2,337 |
|
|
| 5,157 |
|
|
| 7,494 |
|
|
| 731 |
|
| 2002 |
| 9/19/2012 |
| 5 to 40 years |
Chicago - Lindenhurst |
| IL |
|
|
|
| 1,213 |
|
|
| 3,129 |
|
|
| 219 |
|
|
| 1,213 |
|
|
| 3,348 |
|
|
| 4,561 |
|
|
| 481 |
|
| 1999/06 |
| 9/27/2012 |
| 5 to 40 years |
Chicago - Orland Park |
| IL |
|
|
|
| 1,050 |
|
|
| 5,894 |
|
|
| 174 |
|
|
| 1,050 |
|
|
| 6,068 |
|
|
| 7,118 |
|
|
| 818 |
|
| 2007 |
| 12/10/2012 |
| 5 to 40 years |
Phoenix-83rd |
| AZ |
|
|
|
| 910 |
|
|
| 3,656 |
|
|
| 224 |
|
|
| 910 |
|
|
| 3,880 |
|
|
| 4,790 |
|
|
| 535 |
|
| 2008 |
| 12/18/2012 |
| 5 to 40 years |
Chicago-North Austin |
| IL |
|
|
|
| 2,593 |
|
|
| 5,029 |
|
|
| 348 |
|
|
| 2,593 |
|
|
| 5,377 |
|
|
| 7,970 |
|
|
| 693 |
|
| 2005 |
| 12/20/2012 |
| 5 to 40 years |
Chicago-North Western |
| IL |
|
|
|
| 1,718 |
|
|
| 6,466 |
|
|
| 710 |
|
|
| 1,798 |
|
|
| 7,096 |
|
|
| 8,894 |
|
|
| 882 |
|
| 2005 |
| 12/20/2012 |
| 5 to 40 years |
Chicago-West Pershing |
| IL |
|
|
|
| 395 |
|
|
| 3,226 |
|
|
| 185 |
|
|
| 395 |
|
|
| 3,411 |
|
|
| 3,806 |
|
|
| 432 |
|
| 2008 |
| 12/20/2012 |
| 5 to 40 years |
Chicago - North Broadway |
| IL |
|
|
|
| 2,373 |
|
|
| 9,869 |
|
|
| 147 |
|
|
| 2,373 |
|
|
| 10,016 |
|
|
| 12,389 |
|
|
| 1,267 |
|
| 2011 |
| 12/20/2012 |
| 5 to 40 years |
Brandenton |
| FL |
|
|
|
| 1,501 |
|
|
| 3,775 |
|
|
| 187 |
|
|
| 1,501 |
|
|
| 3,962 |
|
|
| 5,463 |
|
|
| 530 |
|
| 1997 |
| 12/21/2012 |
| 5 to 40 years |
Life Storage, Inc.
Schedule III
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capitalized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subsequent |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Life on | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| to |
|
| Gross Amount at Which |
|
|
|
|
|
|
|
|
|
| which | ||||||||||
|
|
|
|
|
| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
|
|
|
|
|
|
|
|
| depreciation | |||||||||||||||
|
|
|
|
|
|
|
|
|
| Building, |
|
| Building, |
|
|
|
|
|
| Building, |
|
|
|
|
|
|
|
|
|
|
|
|
|
| in latest | |||
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
|
| and |
|
|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Ft. Myers-Cleveland |
| FL |
|
|
|
| 515 |
|
|
| 2,280 |
|
|
| 154 |
|
|
| 515 |
|
|
| 2,434 |
|
|
| 2,949 |
|
|
| 330 |
|
| 1998 |
| 12/21/2012 |
| 5 to 40 years |
Clearwater-Drew St. |
| FL |
|
|
|
| 1,234 |
|
|
| 4,018 |
|
|
| 230 |
|
|
| 1,234 |
|
|
| 4,248 |
|
|
| 5,482 |
|
|
| 553 |
|
| 2000 |
| 12/21/2012 |
| 5 to 40 years |
Clearwater-N. Myrtle |
| FL |
|
|
|
| 1,555 |
|
|
| 5,978 |
|
|
| 172 |
|
|
| 1,555 |
|
|
| 6,150 |
|
|
| 7,705 |
|
|
| 806 |
|
| 2000 |
| 12/21/2012 |
| 5 to 40 years |
Austin-Cedar Park |
| TX |
|
|
|
| 1,246 |
|
|
| 5,740 |
|
|
| 227 |
|
|
| 1,246 |
|
|
| 5,967 |
|
|
| 7,213 |
|
|
| 777 |
|
| 2006 |
| 12/27/2012 |
| 5 to 40 years |
Austin-Round Rock |
| TX |
|
|
|
| 774 |
|
|
| 3,327 |
|
|
| 178 |
|
|
| 774 |
|
|
| 3,505 |
|
|
| 4,279 |
|
|
| 466 |
|
| 2004 |
| 12/27/2012 |
| 5 to 40 years |
Austin-Round Rock |
| TX |
|
|
|
| 632 |
|
|
| 1,985 |
|
|
| 127 |
|
|
| 632 |
|
|
| 2,112 |
|
|
| 2,744 |
|
|
| 310 |
|
| 2007 |
| 12/27/2012 |
| 5 to 40 years |
Chicago-Aurora |
| IL |
|
|
|
| 269 |
|
|
| 3,126 |
|
|
| 337 |
|
|
| 269 |
|
|
| 3,463 |
|
|
| 3,732 |
|
|
| 431 |
|
| 2010 |
| 12/31/2012 |
| 5 to 40 years |
San Antonio - Marbach |
| TX |
|
|
|
| 337 |
|
|
| 2,005 |
|
|
| 229 |
|
|
| 337 |
|
|
| 2,234 |
|
|
| 2,571 |
|
|
| 305 |
|
| 2005 |
| 2/11/2013 |
| 5 to 40 years |
Long Island - Lindenhurst |
| NY |
|
|
|
| 2,122 |
|
|
| 8,735 |
|
|
| 546 |
|
|
| 2,122 |
|
|
| 9,281 |
|
|
| 11,403 |
|
|
| 1,102 |
|
| 2002 |
| 3/22/2013 |
| 5 to 40 years |
Boston - Somerville |
| MA |
|
|
|
| 1,553 |
|
|
| 7,186 |
|
|
| 186 |
|
|
| 1,506 |
|
|
| 7,419 |
|
|
| 8,925 |
|
|
| 885 |
|
| 2008 |
| 3/22/2013 |
| 5 to 40 years |
Long Island - Deer Park |
| NY |
|
|
|
| 1,096 |
|
|
| 8,276 |
|
|
| 109 |
|
|
| 1,096 |
|
|
| 8,385 |
|
|
| 9,481 |
|
|
| 953 |
|
| 2009 |
| 8/29/2013 |
| 5 to 40 years |
Long Island - Amityville |
| NY |
|
|
|
| 2,224 |
|
|
| 10,102 |
|
|
| 107 |
|
|
| 2,224 |
|
|
| 10,209 |
|
|
| 12,433 |
|
|
| 1,145 |
|
| 2009 |
| 8/29/2013 |
| 5 to 40 years |
Colorado Springs - Scarlet |
| CO |
|
|
|
| 629 |
|
|
| 5,201 |
|
|
| 221 |
|
|
| 629 |
|
|
| 5,422 |
|
|
| 6,051 |
|
|
| 582 |
|
| 2006 |
| 9/30/2013 |
| 5 to 40 years |
Toms River - Route 37 W |
| NJ |
|
|
|
| 1,843 |
|
|
| 6,544 |
|
|
| 140 |
|
|
| 1,843 |
|
|
| 6,684 |
|
|
| 8,527 |
|
|
| 707 |
|
| 2007 |
| 11/26/2013 |
| 5 to 40 years |
Lake Worth - S Military |
| FL |
|
|
|
| 868 |
|
|
| 5,306 |
|
|
| 700 |
|
|
| 868 |
|
|
| 6,006 |
|
|
| 6,874 |
|
|
| 624 |
|
| 2000 |
| 12/4/2013 |
| 5 to 40 years |
Austin-Round Rock |
| TX |
|
|
|
| 1,547 |
|
|
| 5,226 |
|
|
| 183 |
|
|
| 1,547 |
|
|
| 5,409 |
|
|
| 6,956 |
|
|
| 610 |
|
| 2008 |
| 12/27/2013 |
| 5 to 40 years |
Hartford-Bristol |
| CT |
|
|
|
| 1,174 |
|
|
| 8,816 |
|
|
| 124 |
|
|
| 1,174 |
|
|
| 8,940 |
|
|
| 10,114 |
|
|
| 901 |
|
| 2004 |
| 12/30/2013 |
| 5 to 40 years |
Piscataway - New Brunswick |
| NJ |
|
|
|
| 1,639 |
|
|
| 10,946 |
|
|
| 113 |
|
|
| 1,639 |
|
|
| 11,059 |
|
|
| 12,698 |
|
|
| 1,112 |
|
| 2006 |
| 12/30/2013 |
| 5 to 40 years |
Fort Lauderdale - 3rd Ave |
| FL |
|
|
|
| 7,629 |
|
|
| 11,918 |
|
|
| 374 |
|
|
| 7,629 |
|
|
| 12,292 |
|
|
| 19,921 |
|
|
| 1,236 |
|
| 1998 |
| 1/9/2014 |
| 5 to 40 years |
West Palm - Mercer |
| FL |
|
|
|
| 15,680 |
|
|
| 17,520 |
|
|
| 825 |
|
|
| 15,680 |
|
|
| 18,345 |
|
|
| 34,025 |
|
|
| 1,864 |
|
| 2000 |
| 1/9/2014 |
| 5 to 40 years |
Austin - Manchaca |
| TX |
|
|
|
| 3,999 |
|
|
| 4,297 |
|
|
| 722 |
|
|
| 3,999 |
|
|
| 5,019 |
|
|
| 9,018 |
|
|
| 553 |
|
| 1998/02 |
| 1/17/2014 |
| 5 to 40 years |
San Antonio |
| TX |
|
|
|
| 2,235 |
|
|
| 6,269 |
|
|
| 358 |
|
|
| 2,235 |
|
|
| 6,627 |
|
|
| 8,862 |
|
|
| 691 |
|
| 2012 |
| 2/10/2014 |
| 5 to 40 years |
Portland |
| ME |
|
|
|
| 2,146 |
|
|
| 6,418 |
|
|
| 254 |
|
|
| 2,146 |
|
|
| 6,672 |
|
|
| 8,818 |
|
|
| 670 |
|
| 2000 |
| 2/11/2014 |
| 5 to 40 years |
Portland-Topsham |
| ME |
|
|
|
| 493 |
|
|
| 5,234 |
|
|
| 108 |
|
|
| 493 |
|
|
| 5,342 |
|
|
| 5,835 |
|
|
| 530 |
|
| 2006 |
| 2/11/2014 |
| 5 to 40 years |
Chicago - St. Charles |
| IL |
|
|
|
| 1,837 |
|
|
| 6,301 |
|
|
| 556 |
|
|
| 1,837 |
|
|
| 6,857 |
|
|
| 8,694 |
|
|
| 691 |
|
| 2004/13 |
| 3/31/2014 |
| 5 to 40 years |
Chicago - Ashland |
| IL |
|
|
|
| 598 |
|
|
| 4,789 |
|
|
| 231 |
|
|
| 598 |
|
|
| 5,020 |
|
|
| 5,618 |
|
|
| 494 |
|
| 2014 |
| 5/5/2014 |
| 5 to 40 years |
San Antonio - Walzem |
| TX |
|
|
|
| 2,000 |
|
|
| 3,749 |
|
|
| 512 |
|
|
| 2,000 |
|
|
| 4,261 |
|
|
| 6,261 |
|
|
| 444 |
|
| 1997 |
| 5/13/2014 |
| 5 to 40 years |
St. Louis - Woodson |
| MO |
|
|
|
| 2,444 |
|
|
| 5,966 |
|
|
| 1,593 |
|
|
| 2,444 |
|
|
| 7,559 |
|
|
| 10,003 |
|
|
| 711 |
|
| 1998 |
| 5/22/2014 |
| 5 to 40 years |
St. Louis - Mexico |
| MO |
|
|
|
| 638 |
|
|
| 3,518 |
|
|
| 1,800 |
|
|
| 638 |
|
|
| 5,318 |
|
|
| 5,956 |
|
|
| 451 |
|
| 1998/16 |
| 5/22/2014 |
| 5 to 40 years |
St. Louis - Vogel |
| MO |
|
|
|
| 2,010 |
|
|
| 3,544 |
|
|
| 306 |
|
|
| 2,010 |
|
|
| 3,850 |
|
|
| 5,860 |
|
|
| 373 |
|
| 2000 |
| 5/22/2014 |
| 5 to 40 years |
St. Louis - Manchester |
| MO |
|
|
|
| 508 |
|
|
| 2,042 |
|
|
| 393 |
|
|
| 508 |
|
|
| 2,435 |
|
|
| 2,943 |
|
|
| 246 |
|
| 1996 |
| 5/22/2014 |
| 5 to 40 years |
St. Louis - North Highway |
| MO |
|
|
|
| 1,989 |
|
|
| 4,045 |
|
|
| 2,429 |
|
|
| 1,989 |
|
|
| 6,474 |
|
|
| 8,463 |
|
|
| 484 |
|
| 1997 |
| 5/22/2014 |
| 5 to 40 years |
St. Louis - Dunn |
| MO |
|
|
|
| 1,538 |
|
|
| 4,510 |
|
|
| 2,803 |
|
|
| 1,538 |
|
|
| 7,313 |
|
|
| 8,851 |
|
|
| 508 |
|
| 2000 |
| 5/22/2014 |
| 5 to 40 years |
Trenton-Hamilton Twnship |
| NJ |
|
|
|
| 5,161 |
|
|
| 7,063 |
|
|
| 1,082 |
|
|
| 5,161 |
|
|
| 8,145 |
|
|
| 13,306 |
|
|
| 743 |
|
| 1980 |
| 6/5/2014 |
| 5 to 40 years |
NY Metro-Fishkill |
| NY |
|
|
|
| 1,741 |
|
|
| 6,006 |
|
|
| 388 |
|
|
| 1,741 |
|
|
| 6,394 |
|
|
| 8,135 |
|
|
| 599 |
|
| 2005 |
| 6/11/2014 |
| 5 to 40 years |
Atlanta-Peachtree City |
| GA |
|
|
|
| 2,263 |
|
|
| 4,931 |
|
|
| 501 |
|
|
| 2,263 |
|
|
| 5,432 |
|
|
| 7,695 |
|
|
| 547 |
|
| 2007 |
| 6/12/2014 |
| 5 to 40 years |
Wayne - Willowbrook |
| NJ |
|
|
|
| - |
|
|
| 2,292 |
|
|
| 269 |
|
|
| - |
|
|
| 2,561 |
|
|
| 2,561 |
|
|
| 576 |
|
| 2000 |
| 6/12/2014 |
| 5 to 40 years |
Asbury Park - 1st Ave |
| NJ |
|
|
|
| 819 |
|
|
| 4,734 |
|
|
| 655 |
|
|
| 819 |
|
|
| 5,389 |
|
|
| 6,208 |
|
|
| 490 |
|
| 2003 |
| 6/18/2014 |
| 5 to 40 years |
Farmingdale - Tinton Falls |
| NJ |
|
|
|
| 1,097 |
|
|
| 5,618 |
|
|
| 361 |
|
|
| 1,097 |
|
|
| 5,979 |
|
|
| 7,076 |
|
|
| 551 |
|
| 2004 |
| 6/18/2014 |
| 5 to 40 years |
Lakewood - Route 70 |
| NJ |
|
|
|
| 626 |
|
|
| 4,549 |
|
|
| 243 |
|
|
| 626 |
|
|
| 4,792 |
|
|
| 5,418 |
|
|
| 445 |
|
| 2003 |
| 6/18/2014 |
| 5 to 40 years |
Matawan - Highway 34 |
| NJ |
|
|
|
| 1,512 |
|
|
| 9,707 |
|
|
| 806 |
|
|
| 1,512 |
|
|
| 10,513 |
|
|
| 12,025 |
|
|
| 955 |
|
| 2005 |
| 7/10/2014 |
| 5 to 40 years |
St. Petersburg - Gandy |
| FL |
|
|
|
| 2,958 |
|
|
| 6,904 |
|
|
| 256 |
|
|
| 2,958 |
|
|
| 7,160 |
|
|
| 10,118 |
|
|
| 617 |
|
| 2007 |
| 8/28/2014 |
| 5 to 40 years |
Chesapeake - Campostella |
| VA |
|
|
|
| 2,349 |
|
|
| 3,875 |
|
|
| 295 |
|
|
| 2,349 |
|
|
| 4,170 |
|
|
| 6,519 |
|
|
| 363 |
|
| 2000 |
| 9/5/2014 |
| 5 to 40 years |
San Antonio-Castle Hills |
| TX |
|
|
|
| 2,658 |
|
|
| 8,190 |
|
|
| 444 |
|
|
| 4,544 |
|
|
| 6,748 |
|
|
| 11,292 |
|
|
| 608 |
|
| 2002 |
| 9/10/2014 |
| 5 to 40 years |
Chattanooga - Broad St |
| TN |
|
|
|
| 759 |
|
|
| 5,608 |
|
|
| 256 |
|
|
| 759 |
|
|
| 5,864 |
|
|
| 6,623 |
|
|
| 493 |
|
| 2014 |
| 9/18/2014 |
| 5 to 40 years |
New Orleans-Kenner |
| LA |
|
|
|
| 5,771 |
|
|
| 10,375 |
|
|
| 472 |
|
|
| 5,771 |
|
|
| 10,847 |
|
|
| 16,618 |
|
|
| 922 |
|
| 2008 |
| 10/10/2014 |
| 5 to 40 years |
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | �� | Building, | depreciation | ||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Boston-Metro I | MA | $ | 363 | $ | 1,679 | $ | 545 | $ | 363 | 2,224 | $ | 2,587 | $ | 778 | 1980 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||
Boston-Metro II | MA | 680 | 1,616 | 383 | 680 | 1,999 | 2,679 | 764 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
E. Providence | RI | 345 | 1,268 | 688 | 345 | 1,956 | 2,301 | 631 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Charleston l | SC | 416 | 1,516 | 2,080 | 416 | 3,596 | 4,012 | 878 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lakeland I | FL | 397 | 1,424 | 1,465 | 397 | 2,889 | 3,286 | 703 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Charlotte | NC | 308 | 1,102 | 1,124 | 747 | 1,787 | 2,534 | 617 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tallahassee I | FL | 770 | 2,734 | 1,889 | 770 | 4,623 | 5,393 | 1,599 | 1973 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Youngstown | OH | 239 | 1,110 | 1,317 | 239 | 2,427 | 2,666 | 705 | 1980 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland-Metro II | OH | 701 | 1,659 | 822 | 701 | 2,481 | 3,182 | 840 | 1987 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tallahassee II | FL | 204 | 734 | 923 | 198 | 1,663 | 1,861 | 565 | 1975 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pt. St. Lucie | FL | 395 | 1,501 | 885 | 779 | 2,002 | 2,781 | 817 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Deltona | FL | 483 | 1,752 | 2,077 | 483 | 3,829 | 4,312 | 1,032 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Middletown | NY | 224 | 808 | 817 | 224 | 1,625 | 1,849 | 570 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo I | NY | 423 | 1,531 | 1,660 | 497 | 3,117 | 3,614 | 1,115 | 1981 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Rochester I | NY | 395 | 1,404 | 491 | 395 | 1,895 | 2,290 | 678 | 1981 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Salisbury | MD | 164 | 760 | 463 | 164 | 1,223 | 1,387 | 460 | 1979 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville I | FL | 152 | 728 | 1,028 | 688 | 1,220 | 1,908 | 454 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbia I | SC | 268 | 1,248 | 447 | 268 | 1,695 | 1,963 | 664 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Rochester II | NY | 230 | 847 | 452 | 234 | 1,295 | 1,529 | 466 | 1980 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Savannah l | GA | 463 | 1,684 | 3,832 | 805 | 5,174 | 5,979 | 1,213 | 1981 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Greensboro | NC | 444 | 1,613 | 2,846 | 444 | 4,459 | 4,903 | 831 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Raleigh I | NC | 649 | 2,329 | 855 | 649 | 3,184 | 3,833 | 1,126 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
New Haven | CT | 387 | 1,402 | 962 | 387 | 2,364 | 2,751 | 732 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro I | GA | 844 | 2,021 | 670 | 844 | 2,691 | 3,535 | 987 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro II | GA | 302 | 1,103 | 369 | 303 | 1,471 | 1,774 | 588 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo II | NY | 315 | 745 | 1,662 | 517 | 2,205 | 2,722 | 601 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Raleigh II | NC | 321 | 1,150 | 655 | 321 | 1,805 | 2,126 | 611 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbia II | SC | 361 | 1,331 | 599 | 374 | 1,917 | 2,291 | 722 | 1987 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbia III | SC | 189 | 719 | 1,079 | 189 | 1,798 | 1,987 | 563 | 1989 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbia IV | SC | 488 | 1,188 | 508 | 488 | 1,696 | 2,184 | 648 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro III | GA | 430 | 1,579 | 1,941 | 602 | 3,348 | 3,950 | 854 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Orlando I | FL | 513 | 1,930 | 474 | 513 | 2,404 | 2,917 | 934 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Sharon | PA | 194 | 912 | 441 | 194 | 1,353 | 1,547 | 492 | 1975 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Lauderdale | FL | 1,503 | 3,619 | 839 | 1,503 | 4,458 | 5,961 | 1,362 | 1985 | 6/26/1995 | 5 to 40 years |
61
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
West Palm l | FL | 398 | 1,035 | 292 | 398 | 1,327 | 1,725 | 560 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro IV | GA | 423 | 1,015 | 375 | 424 | 1,389 | 1,813 | 562 | 1989 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro V | GA | 483 | 1,166 | 939 | 483 | 2,105 | 2,588 | 619 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro VI | GA | 308 | 1,116 | 521 | 308 | 1,637 | 1,945 | 676 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro VII | GA | 170 | 786 | 562 | 174 | 1,344 | 1,518 | 511 | 1981 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro VIII | GA | 413 | 999 | 645 | 413 | 1,644 | 2,057 | 672 | 1975 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Baltimore I | MD | 154 | 555 | 1,369 | 306 | 1,772 | 2,078 | 464 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Baltimore II | MD | 479 | 1,742 | 2,810 | 479 | 4,552 | 5,031 | 994 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Augusta I | GA | 357 | 1,296 | 832 | 357 | 2,128 | 2,485 | 732 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Macon I | GA | 231 | 1,081 | 469 | 231 | 1,550 | 1,781 | 579 | 1989 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Melbourne I | FL | 883 | 2,104 | 1,577 | 883 | 3,681 | 4,564 | 1,254 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Newport News | VA | 316 | 1,471 | 780 | 316 | 2,251 | 2,567 | 824 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola I | FL | 632 | 2,962 | 1,105 | 651 | 4,048 | 4,699 | 1,559 | 1983 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Augusta II | GA | 315 | 1,139 | 769 | 315 | 1,908 | 2,223 | 657 | 1987 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Hartford-Metro I | CT | 715 | 1,695 | 1,061 | 715 | 2,756 | 3,471 | 883 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro IX | GA | 304 | 1,118 | 2,521 | 619 | 3,324 | 3,943 | 829 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Alexandria | VA | 1,375 | 3,220 | 2,166 | 1,376 | 5,385 | 6,761 | 1,612 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola II | FL | 244 | 901 | 420 | 244 | 1,321 | 1,565 | 586 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Melbourne II | FL | 834 | 2,066 | 1,136 | 1,591 | 2,445 | 4,036 | 998 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Hartford-Metro II | CT | 234 | 861 | 1,881 | 612 | 2,364 | 2,976 | 638 | 1992 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Metro X | GA | 256 | 1,244 | 1,803 | 256 | 3,047 | 3,303 | 847 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Norfolk I | VA | 313 | 1,462 | 938 | 313 | 2,400 | 2,713 | 827 | 1984 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Norfolk II | VA | 278 | 1,004 | 375 | 278 | 1,379 | 1,657 | 540 | 1989 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Birmingham I | AL | 307 | 1,415 | 1,559 | 384 | 2,897 | 3,281 | 786 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Birmingham II | AL | 730 | 1,725 | 619 | 730 | 2,344 | 3,074 | 898 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery l | AL | 863 | 2,041 | 626 | 863 | 2,667 | 3,530 | 1,018 | 1982 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville II | FL | 326 | 1,515 | 423 | 326 | 1,938 | 2,264 | 746 | 1987 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola III | FL | 369 | 1,358 | 2,741 | 369 | 4,099 | 4,468 | 1,027 | 1986 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola IV | FL | 244 | 1,128 | 714 | 719 | 1,367 | 2,086 | 550 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola V | FL | 226 | 1,046 | 543 | 226 | 1,589 | 1,815 | 614 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tampa I | FL | 1,088 | 2,597 | 988 | 1,088 | 3,585 | 4,673 | 1,360 | 1989 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tampa II | FL | 526 | 1,958 | 798 | 526 | 2,756 | 3,282 | 1,032 | 1985 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tampa III | FL | 672 | 2,439 | 583 | 672 | 3,022 | 3,694 | 1,115 | 1988 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jackson I | MS | 343 | 1,580 | 2,213 | 796 | 3,340 | 4,136 | 817 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jackson II | MS | 209 | 964 | 597 | 209 | 1,561 | 1,770 | 635 | 1990 | 6/26/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Richmond | VA | 443 | 1,602 | 826 | 443 | 2,428 | 2,871 | 851 | 1987 | 8/25/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Orlando II | FL | 1,161 | 2,755 | 976 | 1,162 | 3,730 | 4,892 | 1,378 | 1986 | 9/29/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Birmingham III | AL | 424 | 1,506 | 691 | 424 | 2,197 | 2,621 | 903 | 1970 | 1/16/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Macon II | GA | 431 | 1,567 | 734 | 431 | 2,301 | 2,732 | 785 | 1989/94 | 12/1/1995 | 5 to 40 years |
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| Gross Amount at Which |
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| which | ||||||||||
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| Initial Cost to Company |
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| Carried at Close of Period |
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| depreciation | |||||||||||||||
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| Building, |
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| Building, |
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| Building, |
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| in latest | |||
|
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|
|
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| Equipment |
|
| Equipment |
|
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| Equipment |
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| income | |||
New |
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| Encum |
|
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| and |
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| and |
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| and |
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|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Orlando-Celebration |
| FL |
|
|
|
| 6,091 |
|
|
| 4,641 |
|
|
| 423 |
|
|
| 6,091 |
|
|
| 5,064 |
|
|
| 11,155 |
|
|
| 430 |
|
| 2006 |
| 10/21/2014 |
| 5 to 40 years |
Austin-Cedar Park |
| TX |
|
|
|
| 4,196 |
|
|
| 8,374 |
|
|
| 626 |
|
|
| 4,196 |
|
|
| 9,000 |
|
|
| 13,196 |
|
|
| 750 |
|
| 2003 |
| 10/28/2014 |
| 5 to 40 years |
Chicago - Pulaski |
| IL |
|
|
|
| 889 |
|
|
| 4,700 |
|
|
| 1,051 |
|
|
| 889 |
|
|
| 5,751 |
|
|
| 6,640 |
|
|
| 439 |
|
| 2014 |
| 11/14/2014 |
| 5 to 40 years |
Houston - Gessner |
| TX |
|
|
|
| 1,599 |
|
|
| 5,813 |
|
|
| 3,490 |
|
|
| 1,599 |
|
|
| 9,303 |
|
|
| 10,902 |
|
|
| 532 |
|
| 2006/17 |
| 12/18/2014 |
| 5 to 40 years |
New England - Danbury |
| CT |
|
|
|
| 9,747 |
|
|
| 18,374 |
|
|
| 201 |
|
|
| 9,747 |
|
|
| 18,575 |
|
|
| 28,322 |
|
|
| 1,367 |
|
| 1999 |
| 2/2/2015 |
| 5 to 40 years |
New England - Milford |
| CT |
|
|
|
| 9,642 |
|
|
| 23,352 |
|
|
| 147 |
|
|
| 9,642 |
|
|
| 23,499 |
|
|
| 33,141 |
|
|
| 1,737 |
|
| 1999 |
| 2/2/2015 |
| 5 to 40 years |
Long Island - Hicksville |
| NY |
|
|
|
| 5,153 |
|
|
| 27,401 |
|
|
| 121 |
|
|
| 5,153 |
|
|
| 27,522 |
|
|
| 32,675 |
|
|
| 2,032 |
|
| 2002 |
| 2/2/2015 |
| 5 to 40 years |
Long Island - Farmingdale |
| NY |
|
|
|
| 4,931 |
|
|
| 20,415 |
|
|
| 278 |
|
|
| 4,931 |
|
|
| 20,693 |
|
|
| 25,624 |
|
|
| 1,518 |
|
| 2000 |
| 2/2/2015 |
| 5 to 40 years |
Chicago - Alsip |
| IL |
|
|
|
| 2,579 |
|
|
| 4,066 |
|
|
| 3,331 |
|
|
| 2,579 |
|
|
| 7,397 |
|
|
| 9,976 |
|
|
| 336 |
|
| 1986/17 |
| 2/5/2015 |
| 5 to 40 years |
Chicago - N. Pulaski |
| IL |
|
|
|
| 1,719 |
|
|
| 6,971 |
|
|
| 396 |
|
|
| 1,719 |
|
|
| 7,367 |
|
|
| 9,086 |
|
|
| 540 |
|
| 2015 |
| 3/9/2015 |
| 5 to 40 years |
Fort Myers - Tamiami Trail |
| FL |
|
|
|
| 1,793 |
|
|
| 4,382 |
|
|
| 180 |
|
|
| 1,793 |
|
|
| 4,562 |
|
|
| 6,355 |
|
|
| 328 |
|
| 2004 |
| 4/1/2015 |
| 5 to 40 years |
Dallas - Allen |
| TX |
|
|
|
| 3,864 |
|
|
| 4,777 |
|
|
| 290 |
|
|
| 3,864 |
|
|
| 5,067 |
|
|
| 8,931 |
|
|
| 374 |
|
| 2002 |
| 4/16/2015 |
| 5 to 40 years |
Jacksonville - Beach Blvd. |
| FL |
|
|
|
| 2,118 |
|
|
| 6,501 |
|
|
| 65 |
|
|
| 2,118 |
|
|
| 6,566 |
|
|
| 8,684 |
|
|
| 456 |
|
| 2013 |
| 4/21/2015 |
| 5 to 40 years |
Space Coast - Vero Beach |
| FL |
|
|
|
| 1,169 |
|
|
| 4,409 |
|
|
| 319 |
|
|
| 1,169 |
|
|
| 4,728 |
|
|
| 5,897 |
|
|
| 328 |
|
| 1997 |
| 5/1/2015 |
| 5 to 40 years |
Port St. Lucie - Federal Hwy. |
| FL |
|
|
|
| 4,957 |
|
|
| 6,045 |
|
|
| 229 |
|
|
| 4,957 |
|
|
| 6,274 |
|
|
| 11,231 |
|
|
| 437 |
|
| 2001 |
| 5/1/2015 |
| 5 to 40 years |
West Palm - N. Military |
| FL |
|
|
|
| 3,372 |
|
|
| 4,206 |
|
|
| 143 |
|
|
| 3,372 |
|
|
| 4,349 |
|
|
| 7,721 |
|
|
| 300 |
|
| 1985 |
| 5/1/2015 |
| 5 to 40 years |
Ft. Myers - Bonita Springs |
| FL |
|
|
|
| 2,687 |
|
|
| 5,012 |
|
|
| 208 |
|
|
| 2,687 |
|
|
| 5,220 |
|
|
| 7,907 |
|
|
| 370 |
|
| 2000 |
| 5/1/2015 |
| 5 to 40 years |
Phoenix - Tatum Blvd. |
| AZ |
|
|
|
| 852 |
|
|
| 7,052 |
|
|
| 184 |
|
|
| 852 |
|
|
| 7,236 |
|
|
| 8,088 |
|
|
| 509 |
|
| 2015 |
| 6/16/2015 |
| 5 to 40 years |
Boston - Lynn |
| MA |
|
|
|
| 2,110 |
|
|
| 8,182 |
|
|
| 119 |
|
|
| 2,110 |
|
|
| 8,301 |
|
|
| 10,411 |
|
|
| 548 |
|
| 2015 |
| 6/16/2015 |
| 5 to 40 years |
Syracuse - Ainsely Dr. |
| NY |
|
|
|
| 2,711 |
|
|
| 3,795 |
|
|
| 125 |
|
|
| 2,711 |
|
|
| 3,920 |
|
|
| 6,631 |
|
|
| 250 |
|
| 2000 |
| 8/25/2015 |
| 5 to 40 years |
Syracuse - Cicero |
| NY |
|
|
|
| 668 |
|
|
| 1,957 |
|
|
| 91 |
|
|
| 668 |
|
|
| 2,048 |
|
|
| 2,716 |
|
|
| 135 |
|
| 2002 |
| 8/25/2015 |
| 5 to 40 years |
Syracuse - Camillus |
| NY |
|
|
|
| 473 |
|
|
| 5,368 |
|
|
| 95 |
|
|
| 473 |
|
|
| 5,463 |
|
|
| 5,936 |
|
|
| 333 |
|
| 2005/11 |
| 8/25/2015 |
| 5 to 40 years |
Syracuse - Manlius |
| NY |
|
|
|
| 834 |
|
|
| 1,705 |
|
|
| 1,038 |
|
|
| 834 |
|
|
| 2,743 |
|
|
| 3,577 |
|
|
| 120 |
|
| 2000/17 |
| 8/25/2015 |
| 5 to 40 years |
Charlotte - Brookshire Blvd. |
| NC |
|
|
|
| 718 |
|
|
| 2,977 |
|
|
| 890 |
|
|
| 718 |
|
|
| 3,867 |
|
|
| 4,585 |
|
|
| 232 |
|
| 2000 |
| 9/1/2015 |
| 5 to 40 years |
Charleston III |
| SC |
|
|
|
| 7,604 |
|
|
| 9,086 |
|
|
| 287 |
|
|
| 7,604 |
|
|
| 9,373 |
|
|
| 16,977 |
|
|
| 576 |
|
| 2005 |
| 9/1/2015 |
| 5 to 40 years |
Myrtle Beach II |
| SC |
|
|
|
| 2,511 |
|
|
| 6,147 |
|
|
| 298 |
|
|
| 2,511 |
|
|
| 6,445 |
|
|
| 8,956 |
|
|
| 410 |
|
| 1999 |
| 9/1/2015 |
| 5 to 40 years |
Columbia VI |
| SC |
|
|
|
| 3,640 |
|
|
| 3,452 |
|
|
| 127 |
|
|
| 3,640 |
|
|
| 3,579 |
|
|
| 7,219 |
|
|
| 228 |
|
| 2004/08 |
| 9/1/2015 |
| 5 to 40 years |
Hilton Head - Bluffton |
| SC |
|
|
|
| 3,084 |
|
|
| 3,192 |
|
|
| 158 |
|
|
| 3,084 |
|
|
| 3,350 |
|
|
| 6,434 |
|
|
| 213 |
|
| 1998 |
| 9/1/2015 |
| 5 to 40 years |
Philadelphia - Eagleville |
| PA |
|
|
|
| 1,926 |
|
|
| 4,498 |
|
|
| 1,250 |
|
|
| 1,926 |
|
|
| 5,748 |
|
|
| 7,674 |
|
|
| 258 |
|
| 2010 |
| 12/30/2015 |
| 5 to 40 years |
Orlando - University |
| FL |
|
|
|
| 882 |
|
|
| 5,756 |
|
|
| 290 |
|
|
| 882 |
|
|
| 6,046 |
|
|
| 6,928 |
|
|
| 308 |
|
| 2001 |
| 1/6/2016 |
| 5 to 40 years |
Orlando - N. Powers |
| FL |
|
|
|
| 2,567 |
|
|
| 2,838 |
|
|
| 83 |
|
|
| 2,567 |
|
|
| 2,921 |
|
|
| 5,488 |
|
|
| 157 |
|
| 1997 |
| 1/6/2016 |
| 5 to 40 years |
Sarasota - North Port |
| FL |
|
|
|
| 4,884 |
|
|
| 10,014 |
|
|
| (344 | ) |
|
| 4,278 |
|
|
| 10,276 |
|
|
| 14,554 |
|
|
| 386 |
|
| 2001/06 |
| 1/6/2016 |
| 5 to 40 years |
Los Angeles - E. Commercial |
| CA |
|
|
|
| 6,512 |
|
|
| 12,352 |
|
|
| 409 |
|
|
| 6,512 |
|
|
| 12,761 |
|
|
| 19,273 |
|
|
| 680 |
|
| 2004 |
| 1/21/2016 |
| 5 to 40 years |
Los Angeles - E. Slauson |
| CA |
|
|
|
| 3,998 |
|
|
| 13,547 |
|
|
| 254 |
|
|
| 3,998 |
|
|
| 13,801 |
|
|
| 17,799 |
|
|
| 681 |
|
| 2012 |
| 1/21/2016 |
| 5 to 40 years |
Los Angeles - Westminster |
| CA |
|
|
|
| 4,636 |
|
|
| 14,826 |
|
|
| 175 |
|
|
| 4,636 |
|
|
| 15,001 |
|
|
| 19,637 |
|
|
| 733 |
|
| 2006 |
| 1/21/2016 |
| 5 to 40 years |
Los Angeles - Calabasas |
| CA |
|
|
|
| 13,274 |
|
|
| 10,419 |
|
|
| 455 |
|
|
| 13,274 |
|
|
| 10,874 |
|
|
| 24,148 |
|
|
| 572 |
|
| 2004/14 |
| 1/21/2016 |
| 5 to 40 years |
Portsmouth - Kingston |
| NH |
|
|
|
| 1,713 |
|
|
| 2,709 |
|
|
| 47 |
|
|
| 1,713 |
|
|
| 2,756 |
|
|
| 4,469 |
|
|
| 141 |
|
| 2003 |
| 1/21/2016 |
| 5 to 40 years |
Portsmouth - Danville |
| NH |
|
|
|
| 1,615 |
|
|
| 3,333 |
|
|
| 70 |
|
|
| 1,615 |
|
|
| 3,403 |
|
|
| 5,018 |
|
|
| 171 |
|
| 2003 |
| 1/21/2016 |
| 5 to 40 years |
Portsmouth - Hampton Falls |
| NH |
|
|
|
| 2,445 |
|
|
| 6,295 |
|
|
| 107 |
|
|
| 2,445 |
|
|
| 6,402 |
|
|
| 8,847 |
|
|
| 309 |
|
| 2005 |
| 1/21/2016 |
| 5 to 40 years |
Portsmouth - Lee |
| NH |
|
|
|
| 3,078 |
|
|
| 2,861 |
|
|
| 76 |
|
|
| 3,078 |
|
|
| 2,937 |
|
|
| 6,015 |
|
|
| 148 |
|
| 2000 |
| 1/21/2016 |
| 5 to 40 years |
Portsmouth - Heritage |
| NH |
|
|
|
| 4,430 |
|
|
| 26,040 |
|
|
| 183 |
|
|
| 4,430 |
|
|
| 26,223 |
|
|
| 30,653 |
|
|
| 1,272 |
|
| 1985/99 |
| 1/21/2016 |
| 5 to 40 years |
Boston - Salisbury |
| MA |
|
|
|
| 4,880 |
|
|
| 6,342 |
|
|
| 163 |
|
|
| 4,880 |
|
|
| 6,505 |
|
|
| 11,385 |
|
|
| 320 |
|
| 2003 |
| 1/21/2016 |
| 5 to 40 years |
Dallas - Frisco |
| TX |
|
|
|
| 6,191 |
|
|
| 5,088 |
|
|
| 157 |
|
|
| 6,191 |
|
|
| 5,245 |
|
|
| 11,436 |
|
|
| 271 |
|
| 2003 |
| 1/21/2016 |
| 5 to 40 years |
Dallas - McKinney |
| TX |
|
|
|
| 8,097 |
|
|
| 7,047 |
|
|
| 100 |
|
|
| 8,097 |
|
|
| 7,147 |
|
|
| 15,244 |
|
|
| 367 |
|
| 2003 |
| 1/21/2016 |
| 5 to 40 years |
Dallas - McKinney |
| TX |
|
|
|
| 5,508 |
|
|
| 6,462 |
|
|
| 76 |
|
|
| 5,508 |
|
|
| 6,538 |
|
|
| 12,046 |
|
|
| 328 |
|
| 2002 |
| 1/21/2016 |
| 5 to 40 years |
Phoenix - 48th |
| AZ |
|
|
|
| 988 |
|
|
| 8,224 |
|
|
| 69 |
|
|
| 988 |
|
|
| 8,293 |
|
|
| 9,281 |
|
|
| 424 |
|
| 2015 |
| 2/1/2016 |
| 5 to 40 years |
62
Life Storage, Inc.
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Harrisburg I | PA | 360 | 1,641 | 599 | 360 | 2,240 | 2,600 | 819 | 1983 | 12/29/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Harrisburg II | PA | (1 | ) | 627 | 2,224 | 958 | 692 | 3,117 | 3,809 | 1,018 | 1985 | 12/29/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Syracuse I | NY | 470 | 1,712 | 1,313 | 472 | 3,023 | 3,495 | 923 | 1987 | 12/27/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Myers | FL | 205 | 912 | 310 | 206 | 1,221 | 1,427 | 573 | 1988 | 12/28/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Myers II | FL | 412 | 1,703 | 458 | 413 | 2,160 | 2,573 | 947 | 1991/94 | 12/28/1995 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Newport News II | VA | 442 | 1,592 | 1,180 | 442 | 2,772 | 3,214 | 731 | 1988/93 | 1/5/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery II | AL | 353 | 1,299 | 653 | 353 | 1,952 | 2,305 | 633 | 1984 | 1/23/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Charleston II | SC | 237 | 858 | 623 | 232 | 1,486 | 1,718 | 529 | 1985 | 3/1/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tampa IV | FL | 766 | 1,800 | 649 | 766 | 2,449 | 3,215 | 844 | 1985 | 3/28/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Arlington I | TX | 442 | 1,767 | 319 | 442 | 2,086 | 2,528 | 730 | 1987 | 3/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Arlington II | TX | 408 | 1,662 | 1,070 | 408 | 2,732 | 3,140 | 881 | 1986 | 3/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Worth | TX | 328 | 1,324 | 331 | 328 | 1,655 | 1,983 | 598 | 1986 | 3/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio I | TX | 436 | 1,759 | 1,121 | 436 | 2,880 | 3,316 | 937 | 1986 | 3/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio II | TX | 289 | 1,161 | 543 | 289 | 1,704 | 1,993 | 582 | 1986 | 3/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Syracuse II | NY | 481 | 1,559 | 2,391 | 671 | 3,760 | 4,431 | 1,015 | 1983 | 6/5/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery III | AL | 279 | 1,014 | 998 | 433 | 1,858 | 2,291 | 575 | 1988 | 5/21/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
West Palm II | FL | 345 | 1,262 | 354 | 345 | 1,616 | 1,961 | 577 | 1986 | 5/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Myers III | FL | 229 | 884 | 298 | 229 | 1,182 | 1,411 | 413 | 1986 | 5/29/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lakeland II | FL | 359 | 1,287 | 1,065 | 359 | 2,352 | 2,711 | 814 | 1988 | 6/26/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Springfield | MA | 251 | 917 | 2,267 | 297 | 3,138 | 3,435 | 885 | 1986 | 6/28/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Myers IV | FL | 344 | 1,254 | 292 | 310 | 1,580 | 1,890 | 567 | 1987 | 6/28/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cincinnati | OH | (2 | ) | 557 | 1,988 | 775 | 688 | 2,632 | 3,320 | 299 | 1988 | 7/23/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Dayton | OH | (2 | ) | 667 | 2,379 | 433 | 683 | 2,796 | 3,479 | 340 | 1988 | 7/23/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Baltimore III | MD | 777 | 2,770 | 434 | 777 | 3,204 | 3,981 | 1,087 | 1990 | 7/26/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville III | FL | 568 | 2,028 | 931 | 568 | 2,959 | 3,527 | 1,052 | 1987 | 8/23/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville IV | FL | 436 | 1,635 | 520 | 436 | 2,155 | 2,591 | 789 | 1985 | 8/26/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville V | FL | 535 | 2,033 | 321 | 538 | 2,351 | 2,889 | 908 | 1987/92 | 8/30/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Charlotte II | NC | 487 | 1,754 | 425 | 487 | 2,179 | 2,666 | 674 | 1995 | 9/16/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Charlotte III | NC | 315 | 1,131 | 338 | 315 | 1,469 | 1,784 | 485 | 1995 | 9/16/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Orlando III | FL | 314 | 1,113 | 953 | 314 | 2,066 | 2,380 | 702 | 1975 | 10/30/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Rochester III | NY | 704 | 2,496 | 2,335 | 707 | 4,828 | 5,535 | 1,029 | 1990 | 12/20/1996 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Youngstown ll | OH | 600 | 2,142 | 2,073 | 693 | 4,122 | 4,815 | 939 | 1988 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland lll | OH | 751 | 2,676 | 1,798 | 751 | 4,474 | 5,225 | 1,300 | 1986 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland lV | OH | 725 | 2,586 | 1,354 | 725 | 3,940 | 4,665 | 1,206 | 1978 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland V | OH | (1 | ) | 637 | 2,918 | 1,629 | 701 | 4,483 | 5,184 | 1,563 | 1979 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Cleveland Vl | OH | 495 | 1,781 | 899 | 495 | 2,680 | 3,175 | 865 | 1979 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland Vll | OH | 761 | 2,714 | 1,337 | 761 | 4,051 | 4,812 | 1,273 | 1977 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland Vlll | OH | 418 | 1,921 | 1,655 | 418 | 3,576 | 3,994 | 1,110 | 1970 | 1/10/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland lX | OH | 606 | 2,164 | 1,363 | 606 | 3,527 | 4,133 | 917 | 1982 | 1/10/1997 | 5 to 40 years |
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| Gross Amount at Which |
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| which | ||||||||||
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| Initial Cost to Company |
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| Acquisition |
|
| Carried at Close of Period |
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| depreciation | |||||||||||||||
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| Building, |
|
| Building, |
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| Building, |
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| in latest | |||
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| Equipment |
|
| Equipment |
|
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|
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| Equipment |
|
|
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|
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|
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|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
|
| and |
|
| and |
|
|
|
|
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| and |
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|
|
|
|
| Accum. |
|
| Date of |
| Date |
| statement | ||||
Description |
| ST |
| brance |
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | |||||||
Miami |
| FL |
|
|
|
| 2,294 |
|
|
| 8,980 |
|
|
| 182 |
|
|
| 2,294 |
|
|
| 9,162 |
|
|
| 11,456 |
|
|
| 467 |
|
| 2016 |
| 2/12/2016 |
| 5 to 40 years |
Philadelphia - Glenolden |
| PA |
|
|
|
| 1,768 |
|
|
| 3,879 |
|
|
| 312 |
|
|
| 1,768 |
|
|
| 4,191 |
|
|
| 5,959 |
|
|
| 199 |
|
| 1970 |
| 2/17/2016 |
| 5 to 40 years |
Denver - Thornton |
| CO |
|
|
|
| 4,528 |
|
|
| 7,915 |
|
|
| 123 |
|
|
| 4,528 |
|
|
| 8,038 |
|
|
| 12,566 |
|
|
| 388 |
|
| 2011 |
| 2/29/2016 |
| 5 to 40 years |
Los Angeles - Costa Mesa |
| CA |
|
|
|
| 17,976 |
|
|
| 25,145 |
|
|
| 564 |
|
|
| 17,976 |
|
|
| 25,709 |
|
|
| 43,685 |
|
|
| 1,161 |
|
| 2005 |
| 3/16/2016 |
| 5 to 40 years |
Los Angeles - Irving |
| CA |
|
|
|
| - |
|
|
| 6,318 |
|
|
| 684 |
|
|
| - |
|
|
| 7,002 |
|
|
| 7,002 |
|
|
| 629 |
|
| 1985 |
| 3/16/2016 |
| 5 to 40 years |
Los Angeles - Durante |
| CA |
|
|
|
| 4,671 |
|
|
| 13,908 |
|
|
| 114 |
|
|
| 4,671 |
|
|
| 14,022 |
|
|
| 18,693 |
|
|
| 631 |
|
| 2015 |
| 3/16/2016 |
| 5 to 40 years |
Los Angeles - Wildomar |
| CA |
|
|
|
| 6,728 |
|
|
| 10,340 |
|
|
| 321 |
|
|
| 6,728 |
|
|
| 10,661 |
|
|
| 17,389 |
|
|
| 502 |
|
| 2005 |
| 3/17/2016 |
| 5 to 40 years |
Los Angeles - Torrance |
| CA |
|
|
|
| 17,445 |
|
|
| 18,839 |
|
|
| 444 |
|
|
| 17,445 |
|
|
| 19,283 |
|
|
| 36,728 |
|
|
| 885 |
|
| 2003 |
| 4/11/2016 |
| 5 to 40 years |
New Haven - Wallingford |
| CT |
|
|
|
| 3,618 |
|
|
| 5,286 |
|
|
| 258 |
|
|
| 3,618 |
|
|
| 5,544 |
|
|
| 9,162 |
|
|
| 251 |
|
| 2000 |
| 4/14/2016 |
| 5 to 40 years |
New Haven - Waterbury |
| CT |
|
|
|
| 2,524 |
|
|
| 5,618 |
|
|
| 154 |
|
|
| 2,524 |
|
|
| 5,772 |
|
|
| 8,296 |
|
|
| 261 |
|
| 2001 |
| 4/14/2016 |
| 5 to 40 years |
New York - Mahopac |
| NY |
| 4,119 |
|
| 2,373 |
|
|
| 5,089 |
|
|
| 339 |
|
|
| 2,373 |
|
|
| 5,428 |
|
|
| 7,801 |
|
|
| 227 |
|
| 1991/94 |
| 4/26/2016 |
| 5 to 40 years |
New York - Mount Vernon |
| NY |
|
|
|
| 3,337 |
|
|
| 13,112 |
|
|
| 128 |
|
|
| 3,337 |
|
|
| 13,240 |
|
|
| 16,577 |
|
|
| 568 |
|
| 2013 |
| 4/26/2016 |
| 5 to 40 years |
Pt. St. Lucie |
| FL |
| 3,939 |
|
| 4,140 |
|
|
| 7,176 |
|
|
| 284 |
|
|
| 4,140 |
|
|
| 7,460 |
|
|
| 11,600 |
|
|
| 370 |
|
| 2002 |
| 5/2/2016 |
| 5 to 40 years |
Dallas - Lewisville |
| TX |
|
|
|
| 2,333 |
|
|
| 8,302 |
|
|
| 219 |
|
|
| 2,333 |
|
|
| 8,521 |
|
|
| 10,854 |
|
|
| 378 |
|
| 2007 |
| 5/5/2016 |
| 5 to 40 years |
Buffalo - Cayuga |
| NY |
|
|
|
| 499 |
|
|
| 5,198 |
|
|
| (796 | ) |
|
| 499 |
|
|
| 4,402 |
|
|
| 4,901 |
|
|
| 183 |
|
| 2006 |
| 5/19/2016 |
| 5 to 40 years |
Buffalo - Lackawanna |
| NY |
|
|
|
| 215 |
|
|
| 2,323 |
|
|
| 268 |
|
|
| 215 |
|
|
| 2,591 |
|
|
| 2,806 |
|
|
| 109 |
|
| 2006 |
| 5/19/2016 |
| 5 to 40 years |
Austin - S. Congress |
| TX |
|
|
|
| 1,030 |
|
|
| 8,163 |
|
|
| 83 |
|
|
| 1,030 |
|
|
| 8,246 |
|
|
| 9,276 |
|
|
| 320 |
|
| 1984 |
| 7/15/2016 |
| 5 to 40 years |
Austin - W Braker |
| TX |
|
|
|
| 1,210 |
|
|
| 14,833 |
|
|
| 102 |
|
|
| 1,210 |
|
|
| 14,935 |
|
|
| 16,145 |
|
|
| 571 |
|
| 2003 |
| 7/15/2016 |
| 5 to 40 years |
Austin - Highway 290 |
| TX |
|
|
|
| 930 |
|
|
| 12,269 |
|
|
| 73 |
|
|
| 930 |
|
|
| 12,342 |
|
|
| 13,272 |
|
|
| 478 |
|
| 1999 |
| 7/15/2016 |
| 5 to 40 years |
Austin - Killeen |
| TX |
|
|
|
| 3,070 |
|
|
| 20,782 |
|
|
| 181 |
|
|
| 3,070 |
|
|
| 20,963 |
|
|
| 24,033 |
|
|
| 862 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Austin - Round Rock |
| TX |
|
|
|
| 830 |
|
|
| 6,129 |
|
|
| 71 |
|
|
| 830 |
|
|
| 6,200 |
|
|
| 7,030 |
|
|
| 244 |
|
| 1986 |
| 7/15/2016 |
| 5 to 40 years |
Austin - Georgetown |
| TX |
|
|
|
| 1,530 |
|
|
| 10,647 |
|
|
| 92 |
|
|
| 1,530 |
|
|
| 10,739 |
|
|
| 12,269 |
|
|
| 437 |
|
| 2001/15 |
| 7/15/2016 |
| 5 to 40 years |
Austin - Pflugerville |
| TX |
|
|
|
| 750 |
|
|
| 9,238 |
|
|
| 110 |
|
|
| 750 |
|
|
| 9,348 |
|
|
| 10,098 |
|
|
| 362 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Algonquin |
| IL |
|
|
|
| 1,430 |
|
|
| 14,958 |
|
|
| 46 |
|
|
| 1,430 |
|
|
| 15,004 |
|
|
| 16,434 |
|
|
| 580 |
|
| 2006 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Carpentersville |
| IL |
|
|
|
| 350 |
|
|
| 4,710 |
|
|
| 26 |
|
|
| 350 |
|
|
| 4,736 |
|
|
| 5,086 |
|
|
| 183 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - W. Addison |
| IL |
|
|
|
| 2,770 |
|
|
| 25,112 |
|
|
| 133 |
|
|
| 2,770 |
|
|
| 25,245 |
|
|
| 28,015 |
|
|
| 965 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - State St. |
| IL |
|
|
|
| 1,190 |
|
|
| 19,159 |
|
|
| 163 |
|
|
| 1,190 |
|
|
| 19,322 |
|
|
| 20,512 |
|
|
| 729 |
|
| 2009 |
| 7/15/2016 |
| 5 to 40 years |
Chicago -W. Grand |
| IL |
|
|
|
| 1,720 |
|
|
| 10,628 |
|
|
| 124 |
|
|
| 1,720 |
|
|
| 10,752 |
|
|
| 12,472 |
|
|
| 408 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Libertyville |
| IL |
|
|
|
| 3,670 |
|
|
| 26,660 |
|
|
| 254 |
|
|
| 3,670 |
|
|
| 26,914 |
|
|
| 30,584 |
|
|
| 1,020 |
|
| 2009 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Aurora |
| IL |
|
|
|
| 1,090 |
|
|
| 20,033 |
|
|
| 97 |
|
|
| 1,090 |
|
|
| 20,130 |
|
|
| 21,220 |
|
|
| 775 |
|
| 2009 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Morton Grove |
| IL |
|
|
|
| 1,610 |
|
|
| 14,914 |
|
|
| 666 |
|
|
| 1,610 |
|
|
| 15,580 |
|
|
| 17,190 |
|
|
| 581 |
|
| 2009 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Bridgeview |
| IL |
|
|
|
| 3,770 |
|
|
| 19,990 |
|
|
| 152 |
|
|
| 3,770 |
|
|
| 20,142 |
|
|
| 23,912 |
|
|
| 792 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Addison |
| IL |
|
|
|
| 1,340 |
|
|
| 11,881 |
|
|
| 386 |
|
|
| 1,340 |
|
|
| 12,267 |
|
|
| 13,607 |
|
|
| 466 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - W Diversey |
| IL |
|
|
|
| 1,670 |
|
|
| 10,811 |
|
|
| 54 |
|
|
| 1,670 |
|
|
| 10,865 |
|
|
| 12,535 |
|
|
| 412 |
|
| 2010 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Elmhurst |
| IL |
|
|
|
| 670 |
|
|
| 18,729 |
|
|
| 67 |
|
|
| 670 |
|
|
| 18,796 |
|
|
| 19,466 |
|
|
| 712 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Elgin |
| IL |
|
|
|
| 1,130 |
|
|
| 12,584 |
|
|
| 152 |
|
|
| 1,130 |
|
|
| 12,736 |
|
|
| 13,866 |
|
|
| 492 |
|
| 2003 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - N. Paulina St., |
| IL |
|
|
|
| 5,600 |
|
|
| 12,721 |
|
|
| 74 |
|
|
| 5,600 |
|
|
| 12,795 |
|
|
| 18,395 |
|
|
| 491 |
|
| 2006 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Matteson |
| IL |
|
|
|
| 1,590 |
|
|
| 12,053 |
|
|
| 76 |
|
|
| 1,590 |
|
|
| 12,129 |
|
|
| 13,719 |
|
|
| 488 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - S. Heights |
| IL |
|
|
|
| 1,050 |
|
|
| 4,960 |
|
|
| 89 |
|
|
| 1,050 |
|
|
| 5,049 |
|
|
| 6,099 |
|
|
| 206 |
|
| 2006 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - W. Grand |
| IL |
|
|
|
| 1,780 |
|
|
| 8,928 |
|
|
| 132 |
|
|
| 1,780 |
|
|
| 9,060 |
|
|
| 10,840 |
|
|
| 348 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - W 30th St |
| IL |
|
|
|
| 600 |
|
|
| 15,574 |
|
|
| 149 |
|
|
| 600 |
|
|
| 15,723 |
|
|
| 16,323 |
|
|
| 596 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Mokena |
| IL |
|
|
|
| 3,230 |
|
|
| 18,623 |
|
|
| 215 |
|
|
| 3,230 |
|
|
| 18,838 |
|
|
| 22,068 |
|
|
| 737 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Barrington |
| IL |
|
|
|
| 1,890 |
|
|
| 9,395 |
|
|
| 681 |
|
|
| 1,890 |
|
|
| 10,076 |
|
|
| 11,966 |
|
|
| 383 |
|
| 2015 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Naperville |
| IL |
|
|
|
| 2,620 |
|
|
| 11,933 |
|
|
| 101 |
|
|
| 2,620 |
|
|
| 12,034 |
|
|
| 14,654 |
|
|
| 484 |
|
| 2015 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - Forest Park |
| IL |
|
|
|
| 1,100 |
|
|
| 10,087 |
|
|
| 707 |
|
|
| 1,100 |
|
|
| 10,794 |
|
|
| 11,894 |
|
|
| 407 |
|
| 2015 |
| 7/15/2016 |
| 5 to 40 years |
Chicago - La Grange |
| IL |
|
|
|
| 960 |
|
|
| 13,019 |
|
|
| 53 |
|
|
| 960 |
|
|
| 13,072 |
|
|
| 14,032 |
|
|
| 505 |
|
| 2015 |
| 7/15/2016 |
| 5 to 40 years |
63
Life Storage, Inc.
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Grand Rapids l | MI | (2 | ) | 455 | 1,631 | 981 | 624 | 2,443 | 3,067 | 292 | 1976 | 1/17/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Grand Rapids ll | MI | 219 | 790 | 879 | 219 | 1,669 | 1,888 | 535 | 1983 | 1/17/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Kalamazoo | MI | (2 | ) | 516 | 1,845 | 1,729 | 694 | 3,396 | 4,090 | 367 | 1978 | 1/17/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Lansing | MI | (2 | ) | 327 | 1,332 | 1,627 | 542 | 2,744 | 3,286 | 293 | 1987 | 1/17/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Holland | MI | 451 | 1,830 | 1,899 | 451 | 3,729 | 4,180 | 1,143 | 1978 | 1/17/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio lll | TX | (1 | ) | 474 | 1,686 | 442 | 504 | 2,098 | 2,602 | 644 | 1981 | 1/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Universal | TX | 346 | 1,236 | 467 | 346 | 1,703 | 2,049 | 522 | 1985 | 1/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio lV | TX | 432 | 1,560 | 1,695 | 432 | 3,255 | 3,687 | 927 | 1995 | 1/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Eastex | TX | 634 | 2,565 | 1,172 | 634 | 3,737 | 4,371 | 1,139 | 1993/95 | 3/26/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Nederland | TX | 566 | 2,279 | 356 | 566 | 2,635 | 3,201 | 837 | 1995 | 3/26/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-College | TX | 293 | 1,357 | 568 | 293 | 1,925 | 2,218 | 572 | 1995 | 3/26/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lynchburg-Lakeside | VA | 335 | 1,342 | 1,274 | 335 | 2,616 | 2,951 | 743 | 1982 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lynchburg-Timberlake | VA | 328 | 1,315 | 976 | 328 | 2,291 | 2,619 | 725 | 1985 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lynchburg-Amherst | VA | 155 | 710 | 337 | 152 | 1,050 | 1,202 | 372 | 1987 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Christiansburg | VA | 245 | 1,120 | 583 | 245 | 1,703 | 1,948 | 478 | 1985/90 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chesapeake | VA | 260 | 1,043 | 1,188 | 260 | 2,231 | 2,491 | 627 | 1988/95 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Danville | VA | 326 | 1,488 | 246 | 326 | 1,734 | 2,060 | 561 | 1988 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Orlando-W 25th St | FL | 289 | 1,160 | 744 | 616 | 1,577 | 2,193 | 507 | 1984 | 3/31/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Delray l-Mini | FL | 491 | 1,756 | 672 | 491 | 2,428 | 2,919 | 833 | 1969 | 4/11/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Savannah ll | GA | 296 | 1,196 | 347 | 296 | 1,543 | 1,839 | 526 | 1988 | 5/8/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Delray ll-Safeway | FL | 921 | 3,282 | 488 | 921 | 3,770 | 4,691 | 1,266 | 1980 | 5/21/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cleveland X-Avon | OH | 301 | 1,214 | 2,106 | 304 | 3,317 | 3,621 | 742 | 1989 | 6/4/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Skillman | TX | 960 | 3,847 | 1,500 | 960 | 5,347 | 6,307 | 1,651 | 1975 | 6/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Centennial | TX | 965 | 3,864 | 1,276 | 943 | 5,162 | 6,105 | 1,635 | 1977 | 6/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Samuell | TX | (1 | ) | 570 | 2,285 | 795 | 611 | 3,039 | 3,650 | 990 | 1975 | 6/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Dallas-Hargrove | TX | 370 | 1,486 | 530 | 370 | 2,016 | 2,386 | 712 | 1975 | 6/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Antoine | TX | 515 | 2,074 | 561 | 515 | 2,635 | 3,150 | 872 | 1984 | 6/30/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Alpharetta | GA | 1,033 | 3,753 | 458 | 1,033 | 4,211 | 5,244 | 1,428 | 1994 | 7/24/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Atlanta-Marietta | GA | (1 | ) | 769 | 2,788 | 465 | 825 | 3,197 | 4,022 | 1,031 | 1996 | 7/24/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Atlanta-Doraville | GA | 735 | 3,429 | 318 | 735 | 3,747 | 4,482 | 1,230 | 1995 | 8/21/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
GreensboroHilltop | NC | 268 | 1,097 | 391 | 268 | 1,488 | 1,756 | 458 | 1995 | 9/25/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
GreensboroStgCch | NC | 89 | 376 | 1,539 | 89 | 1,915 | 2,004 | 463 | 1997 | 9/25/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Baton Rouge-Airline | LA | (1 | ) | 396 | 1,831 | 966 | 421 | 2,772 | 3,193 | 796 | 1982 | 10/9/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Baton Rouge-Airline2 | LA | 282 | 1,303 | 312 | 282 | 1,615 | 1,897 | 551 | 1985 | 11/21/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Harrisburg-Peiffers | PA | 635 | 2,550 | 532 | 637 | 3,080 | 3,717 | 940 | 1984 | 12/3/1997 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chesapeake-Military | VA | 542 | 2,210 | 343 | 542 | 2,553 | 3,095 | 789 | 1996 | 2/5/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chesapeake-Volvo | VA | 620 | 2,532 | 908 | 620 | 3,440 | 4,060 | 1,015 | 1995 | 2/5/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Virginia Beach-Shell | VA | 540 | 2,211 | 276 | 540 | 2,487 | 3,027 | 797 | 1991 | 2/5/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Virginia Beach-Central | VA | 864 | 3,994 | 752 | 864 | 4,746 | 5,610 | 1,464 | 1993/95 | 2/5/1998 | 5 to 40 years |
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| Impvmts. |
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| is computed | |||||||
Chicago - Glenview |
| IL |
|
|
|
| 3,210 |
|
|
| 8,519 |
|
|
| 62 |
|
|
| 3,210 |
|
|
| 8,581 |
|
|
| 11,791 |
|
|
| 344 |
|
| 2014/15 |
| 7/15/2016 |
| 5 to 40 years |
Dallas - Richardson |
| TX |
|
|
|
| 630 |
|
|
| 10,282 |
|
|
| 57 |
|
|
| 630 |
|
|
| 10,339 |
|
|
| 10,969 |
|
|
| 410 |
|
| 2001 |
| 7/15/2016 |
| 5 to 40 years |
Dallas - Arlington |
| TX |
|
|
|
| 790 |
|
|
| 12,785 |
|
|
| 81 |
|
|
| 790 |
|
|
| 12,866 |
|
|
| 13,656 |
|
|
| 496 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Dallas - Plano |
| TX |
|
|
|
| 1,370 |
|
|
| 10,166 |
|
|
| 70 |
|
|
| 1,370 |
|
|
| 10,236 |
|
|
| 11,606 |
|
|
| 394 |
|
| 1998 |
| 7/15/2016 |
| 5 to 40 years |
Dallas - Mesquite |
| TX |
|
|
|
| 620 |
|
|
| 8,771 |
|
|
| 41 |
|
|
| 620 |
|
|
| 8,812 |
|
|
| 9,432 |
|
|
| 340 |
|
| 2016 |
| 7/15/2016 |
| 5 to 40 years |
Dallas - S Good Latimer |
| TX |
|
|
|
| 4,030 |
|
|
| 8,029 |
|
|
| 115 |
|
|
| 4,030 |
|
|
| 8,144 |
|
|
| 12,174 |
|
|
| 319 |
|
| 2016 |
| 7/15/2016 |
| 5 to 40 years |
Boulder - Arapahoe |
| CO |
|
|
|
| 3,690 |
|
|
| 12,074 |
|
|
| 72 |
|
|
| 3,690 |
|
|
| 12,146 |
|
|
| 15,836 |
|
|
| 474 |
|
| 1992 |
| 7/15/2016 |
| 5 to 40 years |
Boulder - Odell |
| CO |
|
|
|
| 2,650 |
|
|
| 15,304 |
|
|
| 39 |
|
|
| 2,650 |
|
|
| 15,343 |
|
|
| 17,993 |
|
|
| 603 |
|
| 1998 |
| 7/15/2016 |
| 5 to 40 years |
Boulder - Arapahoe |
| CO |
|
|
|
| 11,540 |
|
|
| 15,571 |
|
|
| 171 |
|
|
| 11,540 |
|
|
| 15,742 |
|
|
| 27,282 |
|
|
| 616 |
|
| 1984 |
| 7/15/2016 |
| 5 to 40 years |
Boulder - Broadway |
| CO |
|
|
|
| 2,670 |
|
|
| 5,623 |
|
|
| 64 |
|
|
| 2,670 |
|
|
| 5,687 |
|
|
| 8,357 |
|
|
| 229 |
|
| 1992 |
| 7/15/2016 |
| 5 to 40 years |
Houston - Westpark |
| TX |
|
|
|
| 2,760 |
|
|
| 8,288 |
|
|
| 158 |
|
|
| 2,760 |
|
|
| 8,446 |
|
|
| 11,206 |
|
|
| 342 |
|
| 1996 |
| 7/15/2016 |
| 5 to 40 years |
Houston - C. Jester |
| TX |
|
|
|
| 8,080 |
|
|
| 10,114 |
|
|
| 157 |
|
|
| 8,080 |
|
|
| 10,271 |
|
|
| 18,351 |
|
|
| 404 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Houston - Bay Pointe |
| TX |
|
|
|
| 1,960 |
|
|
| 9,585 |
|
|
| 100 |
|
|
| 1,960 |
|
|
| 9,685 |
|
|
| 11,645 |
|
|
| 380 |
|
| 1972 |
| 7/15/2016 |
| 5 to 40 years |
Houston - FM 529 |
| TX |
|
|
|
| 680 |
|
|
| 3,951 |
|
|
| 126 |
|
|
| 680 |
|
|
| 4,077 |
|
|
| 4,757 |
|
|
| 163 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Houston - Jones |
| TX |
|
|
|
| 1,260 |
|
|
| 2,382 |
|
|
| 93 |
|
|
| 1,260 |
|
|
| 2,475 |
|
|
| 3,735 |
|
|
| 109 |
|
| 1994 |
| 7/15/2016 |
| 5 to 40 years |
Jackson - Flowood |
| MS |
|
|
|
| 680 |
|
|
| 20,066 |
|
|
| 115 |
|
|
| 680 |
|
|
| 20,181 |
|
|
| 20,861 |
|
|
| 786 |
|
| 2000 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Spencer |
| NV |
|
|
|
| 1,020 |
|
|
| 25,152 |
|
|
| 99 |
|
|
| 1,020 |
|
|
| 25,251 |
|
|
| 26,271 |
|
|
| 964 |
|
| 2000 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Maule |
| NV |
|
|
|
| 2,510 |
|
|
| 11,822 |
|
|
| (864 | ) |
|
| 1,510 |
|
|
| 11,958 |
|
|
| 13,468 |
|
|
| 457 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Wigwam |
| NV |
|
|
|
| 590 |
|
|
| 16,838 |
|
|
| 96 |
|
|
| 590 |
|
|
| 16,934 |
|
|
| 17,524 |
|
|
| 642 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Stufflebeam |
| NV |
|
|
|
| 350 |
|
|
| 6,977 |
|
|
| 229 |
|
|
| 350 |
|
|
| 7,206 |
|
|
| 7,556 |
|
|
| 280 |
|
| 1996 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Ft. Apache |
| NV |
|
|
|
| 1,470 |
|
|
| 11,047 |
|
|
| 162 |
|
|
| 1,470 |
|
|
| 11,209 |
|
|
| 12,679 |
|
|
| 437 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - North |
| NV |
|
|
|
| 390 |
|
|
| 7,042 |
|
|
| 121 |
|
|
| 390 |
|
|
| 7,163 |
|
|
| 7,553 |
|
|
| 278 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Warm Springs |
| NV |
|
|
|
| 1,340 |
|
|
| 5,141 |
|
|
| 103 |
|
|
| 1,340 |
|
|
| 5,244 |
|
|
| 6,584 |
|
|
| 260 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Conestoga |
| NV |
|
|
|
| 1,420 |
|
|
| 10,295 |
|
|
| 132 |
|
|
| 1,420 |
|
|
| 10,427 |
|
|
| 11,847 |
|
|
| 417 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Warm Springs |
| NV |
|
|
|
| 1,080 |
|
|
| 16,436 |
|
|
| 112 |
|
|
| 1,080 |
|
|
| 16,548 |
|
|
| 17,628 |
|
|
| 631 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Nellis |
| NV |
|
|
|
| 790 |
|
|
| 5,233 |
|
|
| 131 |
|
|
| 790 |
|
|
| 5,364 |
|
|
| 6,154 |
|
|
| 225 |
|
| 1995 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Cheyenne |
| NV |
|
|
|
| 1,470 |
|
|
| 17,366 |
|
|
| 87 |
|
|
| 1,470 |
|
|
| 17,453 |
|
|
| 18,923 |
|
|
| 698 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Dean Martin |
| NV |
|
|
|
| 3,050 |
|
|
| 23,333 |
|
|
| 91 |
|
|
| 3,050 |
|
|
| 23,424 |
|
|
| 26,474 |
|
|
| 985 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Flamingo |
| NV |
|
|
|
| 980 |
|
|
| 13,451 |
|
|
| 144 |
|
|
| 980 |
|
|
| 13,595 |
|
|
| 14,575 |
|
|
| 519 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - North |
| NV |
|
|
|
| 330 |
|
|
| 15,651 |
|
|
| 75 |
|
|
| 330 |
|
|
| 15,726 |
|
|
| 16,056 |
|
|
| 602 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Henderson |
| NV |
|
|
|
| 570 |
|
|
| 12,676 |
|
|
| 128 |
|
|
| 570 |
|
|
| 12,804 |
|
|
| 13,374 |
|
|
| 505 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - North |
| NV |
|
|
|
| 520 |
|
|
| 10,105 |
|
|
| 81 |
|
|
| 520 |
|
|
| 10,186 |
|
|
| 10,706 |
|
|
| 399 |
|
| 2002 |
| 7/15/2016 |
| 5 to 40 years |
Las Vegas - Farm |
| NV |
|
|
|
| 1,510 |
|
|
| 9,388 |
|
|
| 79 |
|
|
| 1,510 |
|
|
| 9,467 |
|
|
| 10,977 |
|
|
| 365 |
|
| 2008 |
| 7/15/2016 |
| 5 to 40 years |
Los Angeles - Torrance |
| CA |
|
|
|
| 5,250 |
|
|
| 32,363 |
|
|
| 197 |
|
|
| 5,250 |
|
|
| 32,560 |
|
|
| 37,810 |
|
|
| 1,243 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Los Angeles - Irvine |
| CA |
|
|
|
| 2,520 |
|
|
| 18,402 |
|
|
| 252 |
|
|
| 2,520 |
|
|
| 18,654 |
|
|
| 21,174 |
|
|
| 721 |
|
| 2002 |
| 7/15/2016 |
| 5 to 40 years |
Los Angeles - Palm Desert |
| CA |
|
|
|
| 2,660 |
|
|
| 16,589 |
|
|
| 159 |
|
|
| 2,660 |
|
|
| 16,748 |
|
|
| 19,408 |
|
|
| 654 |
|
| 2002 |
| 7/15/2016 |
| 5 to 40 years |
Milwaukee - Green Bay |
| WI |
|
|
|
| 750 |
|
|
| 14,720 |
|
|
| 29 |
|
|
| 750 |
|
|
| 14,749 |
|
|
| 15,499 |
|
|
| 569 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Orlando - Winter Garden |
| FL |
|
|
|
| 640 |
|
|
| 6,688 |
|
|
| 58 |
|
|
| 640 |
|
|
| 6,746 |
|
|
| 7,386 |
|
|
| 265 |
|
| 2006 |
| 7/15/2016 |
| 5 to 40 years |
Orlando - Longwood |
| FL |
|
|
|
| 1,230 |
|
|
| 9,586 |
|
|
| 97 |
|
|
| 1,230 |
|
|
| 9,683 |
|
|
| 10,913 |
|
|
| 371 |
|
| 2000 |
| 7/15/2016 |
| 5 to 40 years |
Orlando - Overland |
| FL |
|
|
|
| 1,080 |
|
|
| 3,713 |
|
|
| 116 |
|
|
| 1,080 |
|
|
| 3,829 |
|
|
| 4,909 |
|
|
| 153 |
|
| 2000 |
| 7/15/2016 |
| 5 to 40 years |
Sacramento - Calvine |
| CA |
|
|
|
| 2,280 |
|
|
| 17,069 |
|
|
| 75 |
|
|
| 2,280 |
|
|
| 17,144 |
|
|
| 19,424 |
|
|
| 661 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Sacramento - Folsom |
| CA |
|
|
|
| 1,200 |
|
|
| 22,150 |
|
|
| 44 |
|
|
| 1,200 |
|
|
| 22,194 |
|
|
| 23,394 |
|
|
| 839 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - Pell |
| CA |
|
|
|
| 540 |
|
|
| 8,874 |
|
|
| 51 |
|
|
| 540 |
|
|
| 8,925 |
|
|
| 9,465 |
|
|
| 347 |
|
| 2004 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - Goldenland |
| CA |
|
|
|
| 2,010 |
|
|
| 8,944 |
|
|
| 60 |
|
|
| 2,010 |
|
|
| 9,004 |
|
|
| 11,014 |
|
|
| 367 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - Woodland |
| CA |
|
|
|
| 860 |
|
|
| 10,569 |
|
|
| 56 |
|
|
| 860 |
|
|
| 10,625 |
|
|
| 11,485 |
|
|
| 407 |
|
| 2003 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - El Camino |
| CA |
|
|
|
| 1,450 |
|
|
| 12,239 |
|
|
| 78 |
|
|
| 1,450 |
|
|
| 12,317 |
|
|
| 13,767 |
|
|
| 475 |
|
| 2002 |
| 7/15/2016 |
| 5 to 40 years |
64
Life Storage, Inc.
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Norfolk-Naval Base | VA | 1,243 | 5,019 | 744 | 1,243 | 5,763 | 7,006 | 1,760 | 1975 | 2/5/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tampa-E.Hillsborough | FL | 709 | 3,235 | 750 | 709 | 3,985 | 4,694 | 1,331 | 1985 | 2/4/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Northbridge | MA | (2 | ) | 441 | 1,788 | 990 | 694 | 2,525 | 3,219 | 263 | 1988 | 2/9/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Harriman | NY | 843 | 3,394 | 490 | 843 | 3,884 | 4,727 | 1,225 | 1989/95 | 2/4/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Greensboro-High Point | NC | 397 | 1,834 | 554 | 397 | 2,388 | 2,785 | 732 | 1993 | 2/10/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lynchburg-Timberlake | VA | 488 | 1,746 | 498 | 488 | 2,244 | 2,732 | 680 | 1990/96 | 2/18/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Titusville | FL | (2 | ) | 492 | 1,990 | 934 | 688 | 2,728 | 3,416 | 292 | 1986/90 | 2/25/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Salem | MA | 733 | 2,941 | 1,236 | 733 | 4,177 | 4,910 | 1,255 | 1979 | 3/3/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chattanooga-Lee Hwy | TN | 384 | 1,371 | 536 | 384 | 1,907 | 2,291 | 613 | 1987 | 3/27/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chattanooga-Hwy 58 | TN | 296 | 1,198 | 2,090 | 414 | 3,170 | 3,584 | 657 | 1985 | 3/27/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Oglethorpe | GA | 349 | 1,250 | 584 | 349 | 1,834 | 2,183 | 574 | 1989 | 3/27/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Birmingham-Walt | AL | 544 | 1,942 | 831 | 544 | 2,773 | 3,317 | 922 | 1984 | 3/27/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
East Greenwich | RI | 702 | 2,821 | 1,080 | 702 | 3,901 | 4,603 | 1,151 | 1984/88 | 3/26/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Durham-Hillsborough | NC | 775 | 3,103 | 710 | 775 | 3,813 | 4,588 | 1,143 | 1988/91 | 4/9/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Durham-Cornwallis | NC | 940 | 3,763 | 749 | 940 | 4,512 | 5,452 | 1,342 | 1990/96 | 4/9/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Salem-Policy | NH | 742 | 2,977 | 468 | 742 | 3,445 | 4,187 | 994 | 1980 | 4/7/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Warren-Elm | OH | (1 | ) | 522 | 1,864 | 1,218 | 569 | 3,035 | 3,604 | 814 | 1986 | 4/22/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Warren-Youngstown | OH | 512 | 1,829 | 1,860 | 675 | 3,526 | 4,201 | 779 | 1986 | 4/22/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Indian Harbor Beach | FL | 662 | 2,654 | -602 | 662 | 2,052 | 2,714 | 674 | 1985 | 6/2/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jackson 3 - I55 | MS | 744 | 3,021 | 132 | 744 | 3,153 | 3,897 | 964 | 1995 | 5/13/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Katy-N.Fry | TX | 419 | 1,524 | 3,284 | 419 | 4,808 | 5,227 | 704 | 1994 | 5/20/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Hollywood-Sheridan | FL | 1,208 | 4,854 | 358 | 1,208 | 5,212 | 6,420 | 1,548 | 1988 | 7/1/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pompano Beach-Atlantic | FL | 944 | 3,803 | 352 | 944 | 4,155 | 5,099 | 1,254 | 1985 | 7/1/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pompano Beach-Sample | FL | 903 | 3,643 | 341 | 903 | 3,984 | 4,887 | 1,175 | 1988 | 7/1/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Boca Raton-18th St | FL | 1,503 | 6,059 | 832 | 1,503 | 6,891 | 8,394 | 2,043 | 1991 | 7/1/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Vero Beach | FL | 489 | 1,813 | 116 | 489 | 1,929 | 2,418 | 635 | 1997 | 6/12/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Humble | TX | 447 | 1,790 | 2,246 | 740 | 3,743 | 4,483 | 824 | 1986 | 6/16/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Old Katy | TX | (1 | ) | 659 | 2,680 | 377 | 698 | 3,018 | 3,716 | 810 | 1996 | 6/19/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Webster | TX | 635 | 2,302 | 131 | 635 | 2,433 | 3,068 | 727 | 1997 | 6/19/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Carrollton | TX | 548 | 1,988 | 295 | 548 | 2,283 | 2,831 | 668 | 1997 | 6/19/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Hollywood-N.21st | FL | 840 | 3,373 | 363 | 840 | 3,736 | 4,576 | 1,139 | 1987 | 8/3/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Marcos | TX | 324 | 1,493 | 2,012 | 324 | 3,505 | 3,829 | 667 | 1994 | 6/30/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Austin-McNeil | TX | 492 | 1,995 | 494 | 510 | 2,471 | 2,981 | 729 | 1994 | 6/30/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Austin-FM | TX | 484 | 1,951 | 462 | 481 | 2,416 | 2,897 | 714 | 1996 | 6/30/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville-Center | NC | 327 | 1,329 | 678 | 327 | 2,007 | 2,334 | 500 | 1995 | 8/6/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville-Gum Branch | NC | 508 | 1,815 | 1,271 | 508 | 3,086 | 3,594 | 761 | 1989 | 8/17/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jacksonville-N.Marine | NC | 216 | 782 | 721 | 216 | 1,503 | 1,719 | 468 | 1985 | 9/24/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Euless | TX | 550 | 1,998 | 660 | 550 | 2,658 | 3,208 | 709 | 1996 | 9/29/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
N. Richland Hills | TX | 670 | 2,407 | 1,540 | 670 | 3,947 | 4,617 | 905 | 1996 | 10/9/1998 | 5 to 40 years |
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| Gross Amount at Which |
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| which | ||||||||||
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| Initial Cost to Company |
|
| Acquisition |
|
| Carried at Close of Period |
|
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|
| depreciation | |||||||||||||||
|
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| Building, |
|
| Building, |
|
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| Building, |
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| �� |
|
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| in latest | |||
|
|
|
|
|
|
|
|
|
|
|
| Equipment |
|
| Equipment |
|
|
|
|
|
| Equipment |
|
|
|
|
|
|
|
|
|
|
|
|
|
| income | |||
New |
|
|
| Encum |
|
|
|
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| and |
|
| and |
|
|
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|
|
| and |
|
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|
|
| Accum. |
|
| Date of |
| Date |
| statement | |||||
Description |
| ST |
| brance |
|
| Land |
|
| Impvmts. |
|
| Impvmts. |
|
| Land |
|
| Impvmts. |
|
| Total |
|
| Deprec. |
|
| Const. |
| Acquired |
| is computed | ||||||||
Sacremento - Bayou |
| CA |
|
|
|
|
|
| 1,640 |
|
|
| 21,603 |
|
|
| 88 |
|
|
| 1,640 |
|
|
| 21,691 |
|
|
| 23,331 |
|
|
| 833 |
|
| 2005 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - Calvine |
| CA |
|
|
|
|
|
| 2,120 |
|
|
| 24,650 |
|
|
| 59 |
|
|
| 2,120 |
|
|
| 24,709 |
|
|
| 26,829 |
|
|
| 957 |
|
| 2003 |
| 7/15/2016 |
| 5 to 40 years |
Sacremento - El Dorado Hills |
| CA |
|
|
|
|
|
| 1,610 |
|
|
| 24,829 |
|
|
| 48 |
|
|
| 1,610 |
|
|
| 24,877 |
|
|
| 26,487 |
|
|
| 958 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
Sacramento - Fruitridge |
| CA |
|
|
|
|
|
| 1,480 |
|
|
| 15,695 |
|
|
| 176 |
|
|
| 1,480 |
|
|
| 15,871 |
|
|
| 17,351 |
|
|
| 623 |
|
| 2007 |
| 7/15/2016 |
| 5 to 40 years |
San Antonio - US 281 |
| TX |
|
|
|
|
|
| 1,380 |
|
|
| 8,457 |
|
|
| 139 |
|
|
| 1,380 |
|
|
| 8,596 |
|
|
| 9,976 |
|
|
| 329 |
|
| 2003 |
| 7/15/2016 |
| 5 to 40 years |
Austin - San Marcos |
| TX |
|
|
|
|
|
| 990 |
|
|
| 7,323 |
|
|
| 56 |
|
|
| 990 |
|
|
| 7,379 |
|
|
| 8,369 |
|
|
| 292 |
|
| 2016 |
| 7/15/2016 |
| 5 to 40 years |
Charleston |
| SC |
|
|
|
|
|
| 920 |
|
|
| 7,700 |
|
|
| 57 |
|
|
| 920 |
|
|
| 7,757 |
|
|
| 8,677 |
|
|
| 296 |
|
| 2016 |
| 7/29/2016 |
| 5 to 40 years |
Denver - Westminster |
| CO |
|
|
|
|
|
| 5,062 |
|
|
| 3,679 |
|
|
| 307 |
|
|
| 5,062 |
|
|
| 3,986 |
|
|
| 9,048 |
|
|
| 141 |
|
| 2000 |
| 8/4/2016 |
| 5 to 40 years |
Chicago - Arlington Hgts. |
| IL |
|
|
|
|
|
| 370 |
|
|
| 8,513 |
|
|
| 104 |
|
|
| 370 |
|
|
| 8,617 |
|
|
| 8,987 |
|
|
| 242 |
|
| 2016 |
| 11/17/2016 |
| 5 to 40 years |
Orlando - Curry Ford |
| FL |
|
| 2,916 |
|
|
| 3,268 |
|
|
| 6,378 |
|
|
| 114 |
|
|
| 3,268 |
|
|
| 6,492 |
|
|
| 9,760 |
|
|
| 180 |
|
| 2016 |
| 12/20/2016 |
| 5 to 40 years |
Chicago - Lombard |
| IL |
|
|
|
|
|
| 771 |
|
|
| 9,318 |
|
|
| 0 |
|
|
| 771 |
|
|
| 9,318 |
|
|
| 10,089 |
|
|
| 199 |
|
| 2017 |
| 2/23/2017 |
| 5 to 40 years |
Austin - Mary St. |
| TX |
|
|
|
|
|
| 0 |
|
|
| 0 |
|
|
| 6 |
|
|
| 0 |
|
|
| 6 |
|
|
| 6 |
|
|
| 0 |
|
| 2017 |
| 4/3/2017 |
| 5 to 40 years |
Charlotte - Morehead St.. |
| NC |
|
|
|
|
|
| 1,110 |
|
|
| 11,439 |
|
|
| 1 |
|
|
| 1,110 |
|
|
| 11,440 |
|
|
| 12,550 |
|
|
| 24 |
|
| 2017 |
| 12/14/2017 |
| 5 to 40 years |
Construction in Progress |
|
|
|
|
|
|
|
| 0 |
|
|
| 0 |
|
|
| 14,383 |
|
|
| 0 |
|
|
| 14,383 |
|
|
| 14,383 |
|
|
| 0 |
|
| 2017 |
|
|
|
|
Corporate Office |
| NY |
|
|
|
|
|
| 0 |
|
|
| 68 |
|
|
| 38,947 |
|
|
| 1,633 |
|
|
| 37,382 |
|
|
| 39,015 |
|
|
| 20,892 |
|
| 2000 |
| 5/1/2000 |
| 5 to 40 years |
|
|
|
| $ | 12,674 |
|
| $ | 773,702 |
|
| $ | 2,974,075 |
|
| $ | 573,633 |
|
| $ | 786,628 |
|
| $ | 3,534,782 |
|
| $ | 4,321,410 |
|
| $ | 624,314 |
|
|
|
|
|
|
|
65
90
Life Storage, Inc.
Schedule III
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Batavia | OH | 390 | 1,570 | 909 | 390 | 2,479 | 2,869 | 625 | 1988 | 11/19/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jackson-N.West | MS | 460 | 1,642 | 480 | 460 | 2,122 | 2,582 | 707 | 1984 | 12/1/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Katy-Franz | TX | 507 | 2,058 | 1,599 | 507 | 3,657 | 4,164 | 741 | 1993 | 12/15/1998 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
W.Warwick | RI | 447 | 1,776 | 813 | 447 | 2,589 | 3,036 | 717 | 1986/94 | 2/2/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Pinhook 1 | LA | 556 | 1,951 | 977 | 556 | 2,928 | 3,484 | 973 | 1980 | 2/17/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Pinhook2 | LA | 708 | 2,860 | 285 | 708 | 3,145 | 3,853 | 895 | 1992/94 | 2/17/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Ambassador | LA | 314 | 1,095 | 665 | 314 | 1,760 | 2,074 | 631 | 1975 | 2/17/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Evangeline | LA | 188 | 652 | 1,507 | 188 | 2,159 | 2,347 | 628 | 1977 | 2/17/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Guilbeau | LA | 963 | 3,896 | 776 | 963 | 4,672 | 5,635 | 1,224 | 1994 | 2/17/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Gilbert-Elliot Rd | AZ | 651 | 2,600 | 1,101 | 772 | 3,580 | 4,352 | 864 | 1995 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Glendale-59th Ave | AZ | 565 | 2,596 | 556 | 565 | 3,152 | 3,717 | 852 | 1997 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Mesa-Baseline | AZ | 330 | 1,309 | 2,399 | 733 | 3,305 | 4,038 | 482 | 1986 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Mesa-E.Broadway | AZ | 339 | 1,346 | 593 | 339 | 1,939 | 2,278 | 493 | 1986 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Mesa-W.Broadway | AZ | 291 | 1,026 | 874 | 291 | 1,900 | 2,191 | 414 | 1976 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Mesa-Greenfield | AZ | 354 | 1,405 | 336 | 354 | 1,741 | 2,095 | 516 | 1986 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Phoenix-Camelback | AZ | 453 | 1,610 | 834 | 453 | 2,444 | 2,897 | 665 | 1984 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Phoenix-Bell | AZ | 872 | 3,476 | 871 | 872 | 4,347 | 5,219 | 1,196 | 1984 | 5/18/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Phoenix-35th Ave | AZ | 849 | 3,401 | 666 | 849 | 4,067 | 4,916 | 1,094 | 1996 | 5/21/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Westbrook | ME | 410 | 1,626 | 1,759 | 410 | 3,385 | 3,795 | 728 | 1988 | 8/2/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cocoa | FL | 667 | 2,373 | 775 | 667 | 3,148 | 3,815 | 850 | 1982 | 9/29/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cedar Hill | TX | 335 | 1,521 | 377 | 335 | 1,898 | 2,233 | 535 | 1985 | 11/9/1999 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Monroe | NY | 276 | 1,312 | 1,159 | 276 | 2,471 | 2,747 | 515 | 1998 | 2/2/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
N.Andover | MA | 633 | 2,573 | 808 | 633 | 3,381 | 4,014 | 755 | 1989 | 2/15/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Seabrook | TX | 633 | 2,617 | 343 | 633 | 2,960 | 3,593 | 768 | 1996 | 3/1/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Plantation | FL | 384 | 1,422 | 415 | 384 | 1,837 | 2,221 | 463 | 1994 | 5/2/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Birmingham-Bessemer | AL | 254 | 1,059 | 1,194 | 254 | 2,253 | 2,507 | 411 | 1998 | 11/15/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Brewster | NY | (2 | ) | 1,716 | 6,920 | 905 | 1,981 | 7,560 | 9,541 | 797 | 1991/97 | 12/27/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Austin-Lamar | TX | (2 | ) | 837 | 2,977 | 496 | 966 | 3,344 | 4,310 | 400 | 1996/99 | 2/22/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-E.Main | TX | (2 | ) | 733 | 3,392 | 572 | 841 | 3,856 | 4,697 | 428 | 1993/97 | 3/2/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Ft.Myers-Abrams | FL | (2 | ) | 787 | 3,249 | 374 | 902 | 3,508 | 4,410 | 424 | 1997 | 3/13/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Dracut | MA | (1 | ) | 1,035 | 3,737 | 590 | 1,104 | 4,258 | 5,362 | 887 | 1986 | 12/1/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Methuen | MA | (1 | ) | 1,024 | 3,649 | 567 | 1,091 | 4,149 | 5,240 | 856 | 1984 | 12/1/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Columbia 5 | SC | (1 | ) | 883 | 3,139 | 1,212 | 942 | 4,292 | 5,234 | 816 | 1985 | 12/1/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Myrtle Beach | SC | (1 | ) | 552 | 1,970 | 881 | 589 | 2,814 | 3,403 | 582 | 1984 | 12/1/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Kingsland | GA | (1 | ) | 470 | 1,902 | 2,914 | 666 | 4,620 | 5,286 | 642 | 1989 | 12/1/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Saco | ME | (1 | ) | 534 | 1,914 | 279 | 570 | 2,157 | 2,727 | 452 | 1988 | 12/3/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Plymouth | MA | 1,004 | 4,584 | 2,282 | 1,004 | 6,866 | 7,870 | 1,043 | 1996 | 12/19/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Sandwich | MA | (1 | ) | 670 | 3,060 | 408 | 714 | 3,424 | 4,138 | 714 | 1984 | 12/19/2001 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Syracuse | NY | (1 | ) | 294 | 1,203 | 402 | 327 | 1,572 | 1,899 | 358 | 1987 | 2/5/2002 | 5 to 40 years |
|
| December 31, |
|
| December 31, |
|
| December 31, |
| |||
|
| 2017 |
|
| 2016 |
|
| 2015 |
| |||
Cost: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
| $ | 4,243,308 |
|
| $ | 2,491,702 |
|
| $ | 2,177,983 |
|
Additions during period: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions through foreclosure |
| — |
|
| — |
|
| — |
| |||
Other acquisitions |
|
| 22,638 |
|
|
| 1,714,029 |
|
|
| 278,572 |
|
Improvements, etc. |
|
| 84,191 |
|
|
| 73,385 |
|
|
| 42,046 |
|
|
|
| 106,829 |
|
|
| 1,787,414 |
|
|
| 320,618 |
|
Deductions during period: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of assets disposed |
|
| (28,727 | ) |
|
| (35,808 | ) |
|
| (6,899 | ) |
Impairment write-down |
| — |
|
| — |
|
| — |
| |||
Casualty loss |
| — |
|
| — |
|
| — |
| |||
|
|
| (28,727 | ) |
|
| (35,808 | ) |
|
| (6,899 | ) |
Balance at close of period |
| $ | 4,321,410 |
|
| $ | 4,243,308 |
|
| $ | 2,491,702 |
|
Accumulated Depreciation: |
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
| $ | 535,704 |
|
| $ | 465,195 |
|
| $ | 411,701 |
|
Additions during period: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation expense |
|
| 102,674 |
|
|
| 87,219 |
|
|
| 55,101 |
|
|
|
| 102,674 |
|
|
| 87,219 |
|
|
| 55,101 |
|
Deductions during period: |
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated depreciation of assets disposed |
|
| (14,064 | ) |
|
| (16,710 | ) |
|
| (1,607 | ) |
Accumulated depreciation on impaired asset |
| — |
|
| — |
|
| — |
| |||
Accumulated depreciation on casualty loss |
| — |
|
| — |
|
| — |
| |||
|
|
| (14,064 | ) |
|
| (16,710 | ) |
|
| (1,607 | ) |
Balance at close of period |
| $ | 624,314 |
|
| $ | 535,704 |
|
| $ | 465,195 |
|
66
91
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Houston-Westward | TX | (1 | ) | 853 | 3,434 | 855 | 912 | 4,230 | 5,142 | 883 | 1976 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Boone | TX | (1 | ) | 250 | 1,020 | 495 | 268 | 1,497 | 1,765 | 319 | 1983 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Cook | TX | (1 | ) | 285 | 1,160 | 326 | 306 | 1,465 | 1,771 | 323 | 1986 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Harwin | TX | (1 | ) | 449 | 1,816 | 597 | 480 | 2,382 | 2,862 | 506 | 1981 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Hempstead | TX | (1 | ) | 545 | 2,200 | 935 | 583 | 3,097 | 3,680 | 627 | 1974/78 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Kuykendahl | TX | (1 | ) | 517 | 2,090 | 1,258 | 553 | 3,312 | 3,865 | 601 | 1979/83 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Houston-Hwy 249 | TX | (1 | ) | 299 | 1,216 | 1,053 | 320 | 2,248 | 2,568 | 428 | 1983 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Mesquite-Hwy 80 | TX | (1 | ) | 463 | 1,873 | 655 | 496 | 2,495 | 2,991 | 482 | 1985 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Mesquite-Franklin | TX | (1 | ) | 734 | 2,956 | 678 | 784 | 3,584 | 4,368 | 694 | 1984 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Dallas-Plantation | TX | (1 | ) | 394 | 1,595 | 283 | 421 | 1,851 | 2,272 | 394 | 1985 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
San Antonio-Hunt | TX | (1 | ) | 381 | 1,545 | 781 | 408 | 2,299 | 2,707 | 431 | 1980 | 2/13/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||
Humble-5250 FM | TX | 919 | 3,696 | 363 | 919 | 4,059 | 4,978 | 763 | 1998/02 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pasadena | TX | 612 | 2,468 | 232 | 612 | 2,700 | 3,312 | 514 | 1999 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
League City-E.Main | TX | 689 | 3,159 | 269 | 689 | 3,428 | 4,117 | 658 | 1994/97 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery | TX | 817 | 3,286 | 2,066 | 1,119 | 5,050 | 6,169 | 736 | 1998 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Texas City | TX | 817 | 3,286 | 129 | 817 | 3,415 | 4,232 | 671 | 1999 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Hwy 6 | TX | 407 | 1,650 | 182 | 407 | 1,832 | 2,239 | 359 | 1997 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lumberton | TX | 817 | 3,287 | 191 | 817 | 3,478 | 4,295 | 670 | 1996 | 6/19/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
The Hamptons l | NY | 2,207 | 8,866 | 627 | 2,207 | 9,493 | 11,700 | 1,714 | 1989/95 | 12/16/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
The Hamptons 2 | NY | 1,131 | 4,564 | 489 | 1,131 | 5,053 | 6,184 | 890 | 1998 | 12/16/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
The Hamptons 3 | NY | 635 | 2,918 | 357 | 635 | 3,275 | 3,910 | 566 | 1997 | 12/16/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
The Hamptons 4 | NY | 1,251 | 5,744 | 357 | 1,252 | 6,100 | 7,352 | 1,078 | 1994/98 | 12/16/2002 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Duncanville | TX | 1,039 | 4,201 | 46 | 1,039 | 4,247 | 5,286 | 693 | 1995/99 | 8/26/2003 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Harry Hines | TX | 827 | 3,776 | 297 | 827 | 4,073 | 4,900 | 641 | 1998/01 | 10/1/2003 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Stamford | CT | 2,713 | 11,013 | 304 | 2,713 | 11,317 | 14,030 | 1,732 | 1998 | 3/17/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Tomball | TX | 773 | 3,170 | 1,775 | 773 | 4,945 | 5,718 | 648 | 2000 | 5/19/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Conroe | TX | 1,195 | 4,877 | 109 | 1,195 | 4,986 | 6,181 | 734 | 2001 | 5/19/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Spring | TX | 1,103 | 4,550 | 253 | 1,103 | 4,803 | 5,906 | 716 | 2001 | 5/19/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Bissonnet | TX | 1,061 | 4,427 | 2,663 | 1,061 | 7,090 | 8,151 | 822 | 2003 | 5/19/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Alvin | TX | 388 | 1,640 | 852 | 388 | 2,492 | 2,880 | 296 | 2003 | 5/19/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Clearwater | FL | 1,720 | 6,986 | 82 | 1,720 | 7,068 | 8,788 | 1,020 | 2001 | 6/3/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Missouri City | TX | 1,167 | 4,744 | 3,459 | 1,566 | 7,804 | 9,370 | 746 | 1998 | 6/23/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Chattanooga-Hixson | TN | 1,365 | 5,569 | 1,182 | 1,365 | 6,751 | 8,116 | 947 | 1998/02 | 8/4/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Austin-Round Rock | TX | 2,047 | 5,857 | 675 | 2,051 | 6,528 | 8,579 | 902 | 2000 | 8/5/2004 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cicero | NY | 527 | 2,121 | 564 | 527 | 2,685 | 3,212 | 355 | 1988/02 | 3/16/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Bay Shore | NY | 1,131 | 4,609 | 59 | 1,131 | 4,668 | 5,799 | 593 | 2003 | 3/15/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Springfield-Congress | MA | 612 | 2,501 | 106 | 612 | 2,607 | 3,219 | 337 | 1965/75 | 4/12/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Stamford-Hope | CT | 1,612 | 6,585 | 201 | 1,612 | 6,786 | 8,398 | 855 | 2002 | 4/14/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Jones | TX | 3,369 | 1,214 | 4,949 | 82 | 1,215 | 5,030 | 6,245 | 603 | 1997/99 | 6/6/2005 | 5 to 40 years |
67
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Montgomery-Richard | AL | 1,906 | 7,726 | 135 | 1,906 | 7,861 | 9,767 | 950 | 1997 | 6/1/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Oxford | MA | 470 | 1,902 | 1,577 | 470 | 3,479 | 3,949 | 288 | 2002 | 6/23/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Austin-290E | TX | 537 | 2,183 | 167 | 537 | 2,350 | 2,887 | 291 | 2003 | 7/12/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
SanAntonio-Marbach | TX | 556 | 2,265 | 206 | 556 | 2,471 | 3,027 | 290 | 2003 | 7/12/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Austin-South 1st | TX | 754 | 3,065 | 148 | 754 | 3,213 | 3,967 | 388 | 2003 | 7/12/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pinehurst | TX | 484 | 1,977 | 1,361 | 484 | 3,338 | 3,822 | 303 | 2002/04 | 7/12/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Marietta-Austell | GA | 811 | 3,397 | 433 | 811 | 3,830 | 4,641 | 449 | 2003 | 9/15/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Baton Rouge-Florida | LA | 719 | 2,927 | 927 | 719 | 3,854 | 4,573 | 295 | 1984/94 | 11/15/2005 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cypress | TX | 721 | 2,994 | 1,094 | 721 | 4,088 | 4,809 | 414 | 2003 | 1/13/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Texas City | TX | 867 | 3,499 | 106 | 867 | 3,605 | 4,472 | 377 | 2003 | 1/10/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Marcos-Hwy 35S | TX | 628 | 2,532 | 450 | 982 | 2,628 | 3,610 | 274 | 2001 | 1/10/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Baytown | TX | 596 | 2,411 | 86 | 596 | 2,497 | 3,093 | 266 | 2002 | 1/10/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Webster | NY | 937 | 3,779 | 116 | 937 | 3,895 | 4,832 | 392 | 2002/06 | 2/1/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Houston-Jones Rd 2 | TX | 707 | 2,933 | 2,013 | 707 | 4,946 | 5,653 | 447 | 2000 | 3/9/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cameron-Scott | LA | 977 | 411 | 1,621 | 136 | 411 | 1,757 | 2,168 | 205 | 1997 | 4/13/2006 | 5 to 40 years | ||||||||||||||||||||||||||||||||||||
Lafayette-Westgate | LA | 463 | 1,831 | 83 | 463 | 1,914 | 2,377 | 193 | 2001/04 | 4/13/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Broussard | LA | 601 | 2,406 | 1,250 | 601 | 3,656 | 4,257 | 315 | 2002 | 4/13/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Congress-Lafayette | LA | 1,072 | 542 | 1,319 | 2,101 | 542 | 3,420 | 3,962 | 224 | 1997/99 | 4/13/2006 | 5 to 40 years | ||||||||||||||||||||||||||||||||||||
Manchester | NH | 832 | 3,268 | 90 | 832 | 3,358 | 4,190 | 320 | 2000 | 4/26/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Nashua | NH | 617 | 2,422 | 489 | 617 | 2,911 | 3,528 | 256 | 1989 | 6/29/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Largo 2 | FL | 1,270 | 5,037 | 171 | 1,270 | 5,208 | 6,478 | 487 | 1998 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pinellas Park | FL | 929 | 3,676 | 109 | 929 | 3,785 | 4,714 | 344 | 2000 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Tarpon Springs | FL | 696 | 2,739 | 110 | 696 | 2,849 | 3,545 | 263 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
New Orleans | LA | 1,220 | 4,805 | 83 | 1,220 | 4,888 | 6,108 | 450 | 2000 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Meramec | MO | 1,113 | 4,359 | 190 | 1,113 | 4,549 | 5,662 | 414 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Charles Rock | MO | 766 | 3,040 | 111 | 766 | 3,151 | 3,917 | 282 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Shackelford | MO | 828 | 3,290 | 141 | 828 | 3,431 | 4,259 | 315 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-W.Washington | MO | 734 | 2,867 | 555 | 734 | 3,422 | 4,156 | 328 | 1980/01 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Howdershell | MO | 899 | 3,596 | 180 | 899 | 3,776 | 4,675 | 350 | 2000 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Lemay Ferry | MO | 890 | 3,552 | 208 | 890 | 3,760 | 4,650 | 338 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
St Louis-Manchester | MO | 697 | 2,711 | 96 | 697 | 2,807 | 3,504 | 258 | 2000 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Arlington-Little Rd | TX | 1,951 | 1,256 | 4,946 | 159 | 1,256 | 5,105 | 6,361 | 463 | 1998/03 | 6/22/2006 | 5 to 40 years | ||||||||||||||||||||||||||||||||||||
Dallas-Goldmark | TX | 605 | 2,434 | 58 | 605 | 2,492 | 3,097 | 228 | 2004 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Manana | TX | 607 | 2,428 | 115 | 607 | 2,543 | 3,150 | 233 | 2004 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Dallas-Manderville | TX | 1,073 | 4,276 | 62 | 1,073 | 4,338 | 5,411 | 398 | 2003 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ft. Worth-Granbury | TX | 1,751 | 549 | 2,180 | 90 | 549 | 2,270 | 2,819 | 210 | 1998 | 6/22/2006 | 5 to 40 years | ||||||||||||||||||||||||||||||||||||
Ft. Worth-Grapevine | TX | 644 | 2,542 | 52 | 644 | 2,594 | 3,238 | 238 | 1999 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio-Blanco | TX | 963 | 3,836 | 55 | 963 | 3,891 | 4,854 | 357 | 2004 | 6/22/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio-Broadway | TX | 773 | 3,060 | 106 | 773 | 3,166 | 3,939 | 293 | 2000 | 6/22/2006 | 5 to 40 years |
68
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
San Antonio-Huebner | TX | 2,177 | 1,175 | 4,624 | 118 | 1,175 | 4,742 | 5,917 | 424 | 1998 | 6/22/2006 | 5 to 40 years | ||||||||||||||||||||||||||||||||||||
Chattanooga-Lee Hwy II | TN | 619 | 2,471 | 62 | 619 | 2,533 | 3,152 | 228 | 2002 | 8/7/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lafayette-Evangeline | LA | 699 | 2,784 | 1,885 | 699 | 4,669 | 5,368 | 310 | 1995/99 | 8/1/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery-E.S.Blvd | AL | 1,158 | 4,639 | 304 | 1,158 | 4,943 | 6,101 | 433 | 1996/97 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Auburn-Pepperell Pkwy | AL | 590 | 2,361 | 152 | 590 | 2,513 | 3,103 | 214 | 1998 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Auburn-Gatewood Dr | AL | 694 | 2,758 | 111 | 694 | 2,869 | 3,563 | 237 | 2002/03 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbus-Williams Rd | GA | 736 | 2,905 | 118 | 736 | 3,023 | 3,759 | 263 | 2002/04/06 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbus-Miller Rd | GA | 975 | 3,854 | 129 | 975 | 3,983 | 4,958 | 333 | 1995 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbus-Armour Rd | GA | 0 | 3,680 | 98 | 0 | 3,778 | 3,778 | 324 | 2004/05 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Columbus-Amber Dr | GA | 439 | 1,745 | 63 | 439 | 1,808 | 2,247 | 155 | 1998 | 9/28/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Concord | NH | 813 | 3,213 | 1,919 | 813 | 5,132 | 5,945 | 337 | 2000 | 10/31/2006 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Langner Rd | NY | 532 | 2,119 | 442 | 532 | 2,561 | 3,093 | 171 | 1993/07 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Transit Rd | NY | 437 | 1,794 | 76 | 437 | 1,870 | 2,307 | 142 | 1998 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Lake Ave | NY | 638 | 2,531 | 242 | 638 | 2,773 | 3,411 | 219 | 1997 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Union Rd | NY | 348 | 1,344 | 108 | 348 | 1,452 | 1,800 | 108 | 1998 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Niagara Falls Blvd | NY | 323 | 1,331 | 64 | 323 | 1,395 | 1,718 | 104 | 1998 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Young St | NY | 315 | 2,185 | 118 | 316 | 2,302 | 2,618 | 147 | 1999/00 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Buffalo-Sheridan Dr | NY | 961 | 3,827 | 101 | 961 | 3,928 | 4,889 | 280 | 1999 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Lockport-Transit Rd | NY | 375 | 1,498 | 253 | 375 | 1,751 | 2,126 | 142 | 1990/95 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Rochester-Phillips Rd | NY | 1,003 | 4,002 | 63 | 1,003 | 4,065 | 5,068 | 289 | 1999 | 3/30/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Greenville | MS | 1,100 | 4,386 | 116 | 1,100 | 4,502 | 5,602 | 360 | 1994 | 1/11/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Port Arthur-9595 Hwy69 | TX | 929 | 3,647 | 123 | 930 | 3,769 | 4,699 | 279 | 2002/04 | 3/8/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Beaumont-Dowlen Rd | TX | 1,537 | 6,018 | 224 | 1,537 | 6,242 | 7,779 | 460 | 2003/06 | 3/8/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Huntsville-Memorial Pkwy | AL | 1,607 | 6,338 | 171 | 1,607 | 6,509 | 8,116 | 436 | 1989/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Huntsville-Madison 1 | AL | 1,016 | 4,013 | 151 | 1,017 | 4,163 | 5,180 | 285 | 1993/07 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Gulfport-Ocean Springs | MS | 1,423 | 5,624 | 45 | 1,423 | 5,669 | 7,092 | 373 | 1998/05 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Huntsville-Hwy 72 | AL | 1,206 | 4,775 | 69 | 1,206 | 4,844 | 6,050 | 324 | 1998/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Mobile-Airport Blvd | AL | 1,216 | 4,819 | 132 | 1,216 | 4,951 | 6,167 | 339 | 2000/07 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Gulfport-Hwy 49 | MS | 1,345 | 5,325 | 42 | 1,345 | 5,367 | 6,712 | 354 | 2002/04 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Huntsville-Madison 2 | AL | 1,164 | 4,624 | 52 | 1,164 | 4,676 | 5,840 | 314 | 2002/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Foley-Hwy 59 | AL | 1,346 | 5,474 | 95 | 1,347 | 5,568 | 6,915 | 380 | 2003/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola 6-Nine Mile | FL | 1,029 | 4,180 | 92 | 1,029 | 4,272 | 5,301 | 307 | 2003/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Auburn-College St | AL | 686 | 2,732 | 85 | 686 | 2,817 | 3,503 | 197 | 2003 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Gulfport-Biloxi | MS | 1,811 | 7,152 | 47 | 1,811 | 7,199 | 9,010 | 472 | 2004/06 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Pensacola 7-Hwy 98 | FL | 732 | 3,015 | 34 | 732 | 3,049 | 3,781 | 217 | 2006 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery-Arrowhead | AL | 1,075 | 4,333 | 35 | 1,076 | 4,367 | 5,443 | 294 | 2006 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Montgomery-McLemore | AL | 885 | 3,586 | 19 | 885 | 3,605 | 4,490 | 244 | 2006 | 6/1/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
San Antonio-Foster | TX | 676 | 2,685 | 135 | 676 | 2,820 | 3,496 | 194 | 2003/06 | 5/21/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Beaumont-S.Major | TX | 742 | 3,024 | 113 | 742 | 3,137 | 3,879 | 181 | 2002/05 | 11/14/2007 | 5 to 40 years |
69
Cost Capitalized | ||||||||||||||||||||||||||||||||||||||||||||||||
Subsequent to | Gross Amount at Which | Life on | ||||||||||||||||||||||||||||||||||||||||||||||
Initial Cost to Company | Acquisition | Carried at Close of Period | which | |||||||||||||||||||||||||||||||||||||||||||||
Building, | Building, | Building, | depreciation | |||||||||||||||||||||||||||||||||||||||||||||
Equipment | Equipment | Equipment | in latest income | |||||||||||||||||||||||||||||||||||||||||||||
Encum | and | and | and | Accum. | Date of | Date | statement | |||||||||||||||||||||||||||||||||||||||||
Description | ST | brance | Land | Improvements | Improvements | Land | Improvements | Total | Deprec. | Construction | Acquired | is computed | ||||||||||||||||||||||||||||||||||||
Hattiesburg-Clasic | MS | 444 | 1,799 | 73 | 444 | 1,872 | 2,316 | 99 | 1998 | 12/19/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Biloxi-Ginger | MS | 384 | 1,548 | 46 | 384 | 1,594 | 1,978 | 84 | 2000 | 12/19/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Foley-7905 St Hwy 59 | AL | 437 | 1,757 | 34 | 437 | 1,791 | 2,228 | 93 | 2000 | 12/19/2007 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Ridgeland | MS | 1,479 | 5,965 | 85 | 1,479 | 6,050 | 7,529 | 297 | 1997/00 | 1/17/2008 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Jackson-5111 | MS | 1,337 | 5,377 | 61 | 1,337 | 5,438 | 6,775 | 267 | 2003 | 1/17/2008 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Cincinnati-Robertson | OH | 852 | 3,409 | 75 | 852 | 3,484 | 4,336 | 90 | 2003/04 | 12/31/2008 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Richmond-Bridge Rd | VA | 1,047 | 5,981 | 0 | 1,047 | 5,981 | 7,028 | 0 | 2009 | 10/1/2009 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
Construction in progress | 0 | 0 | 9,846 | 0 | 9,846 | 9,846 | 0 | 2009 | ||||||||||||||||||||||||||||||||||||||||
Corporate Office | NY | 0 | 68 | 11,167 | 1,616 | 9,619 | 11,235 | 7,819 | 2000 | 5/1/2000 | 5 to 40 years | |||||||||||||||||||||||||||||||||||||
$ | 225,290 | $ | 875,528 | $ | 286,765 | $ | 237,684 | $ | 1,149,899 | $ | 1,387,583 | $ | 245,178 | |||||||||||||||||||||||||||||||||||
70
December 31, 2009 | December 31, 2008 | December 31, 2007 | ||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 1,366,615 | $ | 1,300,847 | $ | 1,115,255 | ||||||||||||||||||
Additions during period: | ||||||||||||||||||||||||
Acquisitions through foreclosure | $ | — | $ | — | $ | — | ||||||||||||||||||
Other acquisitions | — | 18,454 | 136,653 | |||||||||||||||||||||
Improvements, etc. | 22,135 | 47,507 | 51,363 | |||||||||||||||||||||
22,135 | 65,961 | 188,016 | ||||||||||||||||||||||
Deductions during period: | ||||||||||||||||||||||||
Cost of real estate sold | (1,167 | ) | (1,167 | ) | (193 | ) | (193 | ) | (2,424 | ) | (2,424 | ) | ||||||||||||
Balance at close of period | $ | 1,387,583 | $ | 1,366,615 | $ | 1,300,847 | ||||||||||||||||||
Accumulated Depreciation: | ||||||||||||||||||||||||
Balance at beginning of period | $ | 212,301 | $ | 179,880 | $ | 151,138 | ||||||||||||||||||
Additions during period: | ||||||||||||||||||||||||
Depreciation expense | $ | 33,096 | $ | 32,556 | $ | 29,523 | ||||||||||||||||||
33,096 | 32,556 | 29,523 | ||||||||||||||||||||||
Deductions during period: | ||||||||||||||||||||||||
Accumulated depreciation of real estate sold | (219 | ) | (219 | ) | (135 | ) | (135 | ) | (781 | ) | (781 | ) | ||||||||||||
Balance at close of period | $ | 245,178 | $ | 212,301 | $ | 179,880 | ||||||||||||||||||
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