| 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 which creates effective brand awareness in the cities where we do business; |
| o | Our Customer Care Center, established in 2000, answers sales inquiries and makes reservations for all of our Properties on a centralized basis. Further, our call center and customer contact software was developed in-house and is 100% supported by our in-house experts; |
| o | Our truck move-in program, under which, at present, 396 of our stores offer a free Life Storage truck to assist our customers moving into their spaces, and also serve as a moving billboard further supporting our branding efforts; |
| o | Our dehumidification system, which provides our customers with a better environment to store their goods and improves yields on our Properties; |
Our Customer Care Center, established in 2000, answers sales inquiries and makes reservations for all of our Properties on a centralized basis. Further, our call center and customer contact software was developed in-house and is 100% supported by our in-house experts;
Our truck move-in program, under which, at present, 362 of our stores offer a free Life Storage or Uncle Bob’s truck to assist our customers moving into their spaces, and also serve as a moving billboard further supporting our branding efforts;
Our dehumidification system, which provides our customers with a better environment to store their goods and improves yields on our Properties;
Strategic and efficient Web and Mobile marketing that places Life Storage in front of customers in search engines at the right time for conversion;
Regional marketing which creates effective brand awareness in the cities where we do business.
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.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. We also look to enter new markets that are in the top 50 Metropolitan Statistical Area (MSA) by acquiring established multi-property portfolios. With this strategy we are then able to seek out additional acquisition or third party management opportunities to continue to grow market share, branding and enhance economies of scale.
| • | We also look to enter new markets that are in the top 50 Metropolitan Statistical Area (MSA) by acquiring established multi-property portfolios. With this strategy we are then able to seek out additional acquisition or third party management opportunities to continue to grow market share, branding and enhance economies of scale. |
| C. | Expanding our management business: |
We see our management business as a source of future acquisitions. We hold a minority interest in twomultiple joint ventures which hold a total of 6998 properties that we manage and two additional joint ventures which acquired a total of five properties in January 2017 that we have managed since acquisition.manage. In addition, we manage 2642 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 2012, we added 372,000 square feet to existing Properties and converted 35,000 square feet to premium storage for a total cost of approximately $22.5 million; 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; and 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 20112012 through 20162017 we also installed solar panels on 2923 buildings for a total cost of approximately $9.6$7.7 million. Our solar panel initiative, which began in 2011, has reduced energy consumption and operating costs at those installed locations. Supply and Demand / Operating Trends 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 recentSuppressed economic conditions and thea tight credit market environment had 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 2016, especially in its Texas markets, and expects a modest, but noticeable growth in new supply at least through 2018. We2019. Despite the inflow of additional properties, we have seen capitalization rates on quality acquisitions in the top fifty major metropolitan markets (expected annual return on investment) remain stable at approximately 4.50%5.00% to 5.50%. Although our industryBeginning in 2010, subsequent to the economic recession in 2009, we have experienced softness in 2008 through 2011, ourannual same store sales showed positive increases save for 2009, when we showed a 3.1% decrease in same store revenue. That wasup to and including the first time in recent history that we recorded negative same store sales.current year. We feel our recent performance further supports the notion that the self-storage industry holds up well through recessions.regardless of the prevailing economic landscape.
We believe our same-store move-ins in 20162017 were lower than 20152016 due to the fact that our stores had higher occupancy in 2016,2017, resulting in less space to rent. We believe the reduction in same store move-outs is a result of customers renting with us for longer periods. | | | 2016 | | | 2015 | | | Change | | | 2017 | | | 2016 | | | Change | | Same store move ins | | | 162,268 | | | | 166,843 | | | | (4,575 | ) | | | 162,980 | | | | 167,856 | | | | (4,876 | ) | Same store move outs | | | 159,841 | | | | 162,948 | | | | (3,107 | ) | | | 160,007 | | | | 165,193 | | | | (5,186 | ) | | | | | | | | | | | | Difference | | | 2,427 | | | | 3,895 | | | | (1,468 | ) | | | 2,973 | | | | 2,663 | | | | 310 | |
We were able to maintain relatively flat expenses at the store operating level from 2009 through 2012, but did see above average
Elevated property tax increases in property taxes and insurance in 2013, and above average increases in property taxes inis a trend that we experienced from 2014 through 2016.2017. We expect same store expense growth resulting from increases in wages, health costs, property insurance and property tax increases in 2017.2018, partially offset by decreased internet marketing costs. We believe the same store expense increases will be at manageable levels.
Critical Accounting Policies and Estimates 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: The purchase priceUpon 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 a number ofvarious 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 isare 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 the carrying value of our storage facilities for impairment 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 expectation that, more likely than not, a property will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. When 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 flows is less than the carrying 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 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. No assets had been determined to be impaired under this policy in 2016.2017. 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® (See Note 1 to the financial statements) which required replacement of the existing signage. These changes resulted in ana combined increase in depreciation expense of approximately $8.2$4.4 million in 20162017 as depreciation was accelerated over the new useful lives. The Company estimates that thisthe change related to storage-facility asset replacement will result in an additional increase in depreciation expense of approximately $1$0.3 million in 2017 as a result of the replacement of this existing Uncle Bob’s Self Storage® signage. Upon completion of the change, the carrying value of the Uncle Bob’s Self Storage® signage will be zero.2018. We have not made any other significant changes to the estimated useful lives of our long-lived assets in the past and we do not have any current expectation of making significant changes in 2017.2018 other than potentially on any assets identified for replacement in 2018. 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 over which we have significant influence 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: We operate, and intend to continue to operate, as a REIT under the Code, but no assurance can be given that we will at all times so qualify. To the extent that we continue to qualify as a REIT, we will not be taxed, with certain limited exceptions, on the taxable income that is distributed to our shareholders. If we fail to qualify as a REIT, any requirement to pay federal income taxes could have a material adverse impact on our financial condition and results of operations.
Recent Accounting Pronouncements See Note 2 to the financial statements. YEAR ENDED DECEMBER 31, 2017 COMPARED TO YEAR ENDED DECEMBER 31, 2016 We recorded rental revenues of $485.3 million for the year ended December 31, 2017, an increase of $57.2 million or 13.4% when compared to 2016 rental revenues of $428.1 million. Of the increase in rental revenue, $5.6 million resulted from a 1.6% increase in rental revenues at the 430 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, 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 increase in same store rental revenues was a result of a 50 basis point increase in average occupancy and a 4.3% increase in rental income per square foot. 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 eight self-storage properties sold in 2016 and three self-storage properties sold in 2015. Other operating income, which includes merchandise sales, insurance administrative fees, truck rentals, management fees and acquisition fees, increased by $6.3 million for the year ended December 31, 2016 compared to 2015 primarily as a result ofdue to increased administrative fees earned on customer insurance. Property operations and maintenance expenses increased $21.4 million or 26.2% in 2016 compared to 2015. The 417 core properties considered in the same store pool experienced a $1.0 million or 1.3% increase in operatingsuch expenses as a result ofdue to increases in payroll and internet marketing costs. The same store pool benefited from reduced utilities, snow removal costs, insurance and yellow page advertising expense. In addition to the same store operating expense increase, operatingproperty operations and maintenance expenses increased $20.4 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 are included in the same store pool), slightly offset with the operating expense decrease as a result of eight 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 a 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 are included in the same store pool), slightly offset with the real estate tax expense decrease as a result of eight self-storage properties sold in 2016 and three self-storage properties sold in 2015. 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 | | | Year ended December 31, | | | Percentage | | (dollars in thousands) | | 2016 | | | 2015 | | | Change | | | 2016 | | | 2015 | | | Change | | Same store rental income | | $ | 339,773 | | | $ | 323,664 | | | | 5.0 | % | | $ | 339,773 | | | $ | 323,664 | | | | 5.0 | % | Same store other operating income | | | 18,693 | | | | 17,085 | | | | 9.4 | % | | | 18,693 | | | | 17,085 | | | | 9.4 | % | | | | | | | | | | | | Total same store operating income | | | 358,466 | | | | 340,749 | | | | 5.2 | % | | | 358,466 | | | | 340,749 | | | | 5.2 | % | Payroll and benefits | | | 29,754 | | | | 28,843 | | | | 3.2 | % | | | 29,754 | | | | 28,843 | | | | 3.2 | % | Real estate taxes | | | 36,707 | | | | 34,847 | | | | 5.3 | % | | | 36,707 | | | | 34,847 | | | | 5.3 | % | Utilities | | | 11,217 | | | | 11,789 | | | | (4.9 | %) | | | 11,217 | | | | 11,789 | | | | (4.9 | )% | Repairs and maintenance | | | 13,516 | | | | 13,412 | | | | 0.8 | % | | | 13,516 | | | | 13,412 | | | | 0.8 | % | Office and other operating expenses | | | 11,703 | | | | 11,373 | | | | 2.9 | % | | | 11,703 | | | | 11,373 | | | | 2.9 | % | Insurance | | | 4,035 | | | | 4,414 | | | | (8.6 | %) | | | 4,035 | | | | 4,414 | | | | (8.6 | )% | Advertising and yellow pages | | | 1,114 | | | | 1,352 | | | | (17.6 | %) | | | 1,114 | | | | 1,352 | | | | (17.6 | )% | Internet marketing | | | 6,409 | | | | 5,557 | | | | 15.3 | % | | | 6,409 | | | | 5,557 | | | | 15.3 | % | | | | | | | | | | | | Total same store operating expenses | | | 114,455 | | | | 111,587 | | | | 2.6 | % | | | 114,455 | | | | 111,587 | | | | 2.6 | % | | | | | | | | | | | | Same store net operating income | | $ | 244,011 | | | $ | 229,162 | | | | 6.5 | % | | $ | 244,011 | | | $ | 229,162 | | | | 6.5 | % | | | | | | | | | | | |
Net operating income increased $63.2 million or 25.5% as a result of a 6.5% increase in our 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). Net operating income or “NOI” is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income: interest expense, impairment and casualty losses, operating lease expense, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and the book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net income. There are material limitations to using a measure such as NOI, including the difficulty associated with comparing results among more than one company and the inability to analyze certain significant items, including depreciation and interest expense, that directly affect our net income. We compensate for these limitations by considering the economic effect of the excluded expense items independently as well as in connection with our analysis of net income.
The following table reconciles NOI generated by our self-storage facilities to our net income presented in the 2016 and 2015 consolidated financial statements. | | | Year ended December 31, | | | Year ended December 31, | | (dollars in thousands) | | 2016 | | | 2015 | | | 2016 | | | 2015 | | 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 | | | Net income | | | $ | 84,956 | | | $ | 113,077 | | General and administrative | | | (43,103 | ) | | | (38,659 | ) | | | 43,103 | | | | 38,659 | | Acquisition related costs | | | (29,542 | ) | | | (2,991 | ) | | | 29,542 | | | | 2,991 | | Write-off of acquired property deposits | | | (1,783 | ) | | | — | | | | 1,783 | | | | — | | Operating leases of storage facilities | | | — | | | | (683 | ) | | | — | | | | 683 | | Depreciation and amortization | | | (117,081 | ) | | | (58,506 | ) | | | 117,081 | | | | 58,506 | | Interest expense | | | (54,504 | ) | | | (37,124 | ) | | | 54,504 | | | | 37,124 | | Interest income | | | 67 | | | | 5 | | | | (67 | ) | | | (5 | ) | Gain (loss) on sale of storage facilities | | | 15,270 | | | | (494 | ) | | (Gain) loss on sale of storage facilities | | | | (15,270 | ) | | | 494 | | Gain on sale of real estate | | | 623 | | | | — | | | | (623 | ) | | | — | | Equity in income of joint ventures | | | 3,665 | | | | 3,405 | | | | (3,665 | ) | | | (3,405 | ) | | | | | | | | | Net income | | $ | 84,956 | | | $ | 113,077 | | | | | | | | | | | 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 $4.4 million or 11.5% from 2015 to 2016. The key drivers of the increase were $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, including increased travel expenses and software charges, related to managing the increased number of stores in our portfolio as a result of the LifeStorage, LP acquisition and other smaller acquisitions in 2016. Acquisition related costs were $29.5 million in 2016 as a result ofrelated to the acquisition of 122 stores, including the acquisition of LifeStorage, LP. Acquisition related costs for 2015 were $3.0 million as a result ofrelated 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 $117.1 million in 2016 from $58.5 million in 2015, primarily as a result of amortization and depreciation related to the properties acquired in 2015 and 2016 and accelerated depreciation on existing signage that is beingwas replaced as a result of the change in name of the Company’s storage facilities from Uncle Bob’s Self Storage®in 2016 to Life Storage®. ®. Interest expense increased from $37.1 million in 2015 to $54.5 million in 2016. 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 the payoff of the $150 million 6.38% term loan in April 2016 with a draw on our line of credit which carries a lower interest rate. 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 approximately $0.5 million. 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, 2015 COMPARED TO YEAR ENDED DECEMBER 31, 2014
We recorded rental revenues of $338.4 million for the year ended December 31, 2015, an increase of $36.4 million or 12.0% when compared to 2014 rental revenues of $302.0 million. Of the increase in rental revenue, $16.9 million resulted from a 5.9% increase in rental revenues at the 399 core properties considered in same store sales (those properties included in the consolidated results of operations in 2014 and 2015, excluding the properties we sold in 2015 and 2014). The increase in same store rental revenues was a result of a 110 basis point increase in average occupancy and a 4.3% increase in rental income per square foot. The remaining increase in rental revenue of $19.5 million resulted from the revenues from the acquisition of 56 properties completed in 2014 and 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 a revenue decrease as a result of three self-storage properties sold in 2015. Other operating income, which includes merchandise sales, insurance administrative fees, truck rentals, management fees and acquisition fees, increased by $4.1 million for the year ended December 31, 2015 compared to 2014 primarily as a result of increased administrative fees earned on customer insurance and an increase in management fees.
Property operations and maintenance expenses increased $6.6 million or 8.7% in 2015 compared to 2014. The 399 core properties considered in the same store pool experienced a $1.3 million or 1.9% increase in operating expenses as a result of increases in payroll and maintenance costs. The same store pool benefited from reduced utilities, insurance and yellow page advertising expense. In addition to the same store operating expense increase, operating expenses increased $5.3 million from the acquisition of 56 properties completed since January 1, 2014 (excluding the four properties purchased in 2015 that had been leased since November 2013 and are included in the same store pool). Real estate tax expense increased $4.5 million as a result of a 5.2% increase in property taxes on the 399 same store pool and the inclusion of taxes on the properties acquired or leased in 2015 and 2014.
Our 2015 same store results consist of only those properties that were included in our consolidated results since January 1, 2014, excluding the properties we sold in 2015 and 2014. The following table sets forth operating data for our 399 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) | | 2015 | | | 2014 | | | Change | | Same store rental income | | $ | 301,525 | | | $ | 284,613 | | | | 5.9 | % | Same store other operating income | | | 16,406 | | | | 14,791 | | | | 10.9 | % | | | | | | | | | | | | | | Total same store operating income | | | 317,931 | | | | 299,404 | | | | 6.2 | % | Payroll and benefits | | | 27,469 | | | | 26,518 | | | | 3.6 | % | Real estate taxes | | | 31,593 | | | | 30,041 | | | | 5.2 | % | Utilities | | | 10,925 | | | | 11,389 | | | | (4.1 | %) | Repairs and maintenance | | | 12,400 | | | | 11,256 | | | | 10.2 | % | Office and other operating expenses | | | 10,294 | | | | 10,390 | | | | (0.9 | %) | Insurance | | | 4,059 | | | | 4,152 | | | | (2.2 | %) | Advertising and yellow pages | | | 1,297 | | | | 1,441 | | | | (10.0 | %) | Internet marketing | | | 5,319 | | | | 5,307 | | | | 0.2 | % | | | | | | | | | | | | | | Total same store operating expenses | | | 103,356 | | | | 100,494 | | | | 2.8 | % | | | | | | | | | | | | | | Same store net operating income | | $ | 214,575 | | | $ | 198,910 | | | | 7.9 | % | | | | | | | | | | | | | |
Net operating income increased $29.5 million or 13.5% as a result of a 7.9% increase in our same store net operating income and the acquisitions completed in 2014 and 2015.
Reclassification
Internet advertising expense, which had been included in the general and administrative expense line in the Company’s 2014 financial statements, was reclassified to property operations and maintenance expense in 2015 to conform to the then current year presentation. The Company believes the classification of internet advertising expenses as property operations and maintenance expense is more consistent with industry trends. As a result of this reclassification, for the year ended December 31, 2014, the Company’s financial statements show an increase in property operations and maintenance expense and a reduction of general and administrative expenses of $5,570 (dollars in thousands) as compared to the amounts originally reported in the Company’s 2014 financial statements for that period.
The following table reconciles NOI generated by our self-storage facilities to our net income presented in the 2015 and 2014 consolidated financial statements.
| | | | | | | | | | | Year ended December 31, | | (dollars in thousands) | | 2015 | | | 2014 | | Net operating income | | | | | | | | | Same store | | $ | 214,575 | | | $ | 198,910 | | Other stores and management fee income | | | 33,549 | | | | 19,740 | | | | | | | | | | | Total net operating income | | | 248,124 | | | | 218,650 | | General and administrative | | | (38,659 | ) | | | (35,222 | ) | Acquisition related costs | | | (2,991 | ) | | | (7,359 | ) | Operating leases of storage facilities | | | (683 | ) | | | (7,987 | ) | Depreciation and amortization | | | (58,506 | ) | | | (51,749 | ) | Interest expense | | | (37,124 | ) | | | (34,578 | ) | Interest income | | | 5 | | | | 40 | | (Loss) gain on sale of real estate | | | (494 | ) | | | 5,176 | | Equity in income of joint ventures | | | 3,405 | | | | 2,086 | | | | | | | | | | | Net income | | $ | 113,077 | | | $ | 89,057 | | | | | | | | | | |
General and administrative expenses increased $3.4 million or 9.8% from 2014 to 2015. The key drivers of the increase were a $1.6 million increase in salaries and performance incentives, and a $1.0 million increase in professional fees mainly stemming from an increase in legal fees related to the lawsuit in New Jersey. The remaining $0.8 million increase is the result of various other administrative costs related to managing the increased number of stores in our portfolio as compared to 2014.
Acquisition related costs were $3.0 million in 2015 as a result of the acquisition of 27 stores. Acquisition related costs for 2014 were $7.4 million as a result of the acquisition of 33 stores in 2014, and included a $1.3 million loan defeasance cost paid by the Company.
The operating lease expense for storage facilities in the 2015 and 2014 periods 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, which eliminated the lease payment at that time.
Depreciation and amortization expense increased to $58.5 million in 2015 from $51.8 million in 2014, primarily as a result of depreciation on the properties acquired in 2014 and 2015.
Interest expense increased from $34.6 million in 2014 to $37.1 million in 2015. The increase was due to the additional $175 million term note borrowings in April 2014 and additional line of credit borrowings in 2015 which were used to fund a portion of our acquisitions.
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 approximately $0.5 million. During 2014, we sold two non-strategic facilities in Texas for net proceeds of approximately $11.0 million resulting in a gain on the sale of real estate of $5.2 million. Since the 2014 and 2015 sales occurred subsequent to the Company’s adoption of ASU 2014-08, these sales were not classified as discontinued operations since they did not meet the criteria for such classification under ASU 2014-08 guidance.
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 based on the fact thatbecause 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) | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | Net income attributable to common shareholders | | $ | 85,225 | | | $ | 112,524 | | | $ | 88,531 | | | $ | 74,126 | | | $ | 55,128 | | Net income attributable to noncontrolling interests in the Operating Partnership | | | 398 | | | | 553 | | | | 526 | | | | 469 | | | | 513 | | Depreciation of real estate and amortization of intangible assets exclusive of debt issuance costs | | | 115,531 | | | | 57,429 | | | | 50,827 | | | | 44,369 | | | | 40,153 | | Depreciation of real estate included in discontinued operations | | | — | | | | — | | | | — | | | | 313 | | | | 1,137 | | Depreciation and amortization from unconsolidated joint ventures | | | 2,595 | | | | 2,435 | | | | 1,666 | | | | 1,496 | | | | 1,595 | | (Gain) loss on sale of real estate | | | (15,270 | ) | | | 494 | | | | (5,176 | ) | | | (2,852 | ) | | | (5,185 | ) | Funds from operations allocable to noncontrolling interest in the Operating Partnership | | | (857 | ) | | | (848 | ) | | | (806 | ) | | | (742 | ) | | | (881 | ) | | | | | | | | | | | | | | | | | | | | | | Funds from operations available to common shareholders | | $ | 187,622 | | | $ | 172,587 | | | $ | 135,568 | | | $ | 117,179 | | | $ | 92,460 | | | | | | | | | | | | | | | | | | | | | | |
| | 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 | |
LIQUIDITY AND CAPITAL RESOURCES Our line of credit and term notes require us to meet certain financial covenants measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness, and limitations on dividend payouts. At December 31, 2016,2017, the Company was in compliance with all debt covenants. In the event that the Company violates its debt covenants in the future, the amounts due under the agreements could be callable by the lenders and could adversely affect our credit rating requiring us to pay higher interest and other debt-related costs. We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at December 31, 2016,2017, the entire availability under our line of credit could be drawn without violating our debt covenants. Our ability to retain cash flow is limited because we operate as a REIT. In order toTo 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, $186.2 million, and $146.1$186.2 million for the years ended December 31, 2017, 2016, 2015, and 2014,2015, respectively. The increases in operating cash flows from 2016 to 2017 and from 2015 to 2016 and from 2014 to 2015 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, $328.7 million, and $335.0$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 2014 respectively.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. The decrease in cash Cash used in investingfinancing activities from 2014 to 2015 was a result of lower investments$106.6 million in unconsolidated joint ventures in 2015 as2017 compared to 2014. 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 received 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. On January 20,The increase from 2015 to 2016 was primarily a result of the Company completedpreviously mentioned 2016 activity and a $43.2 million increase in dividends paid. For the public offering of 2,645,000 shares of its common stock at $105.75 per share. Net proceedsyears 2015, 2016 and 2017, see Note 5 to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $269.7 million. The Company used the net proceeds from this offering to repay a portionconsolidated financial statements for details of the indebtedness then outstanding on the Company’s unsecured line of credit which had been used to fund acquisitions in the first quarter of 2016. Also 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 proceedsand term note activity, Note 6 to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $665.4 million. The Company initially used the net proceeds from this offering to repay the indebtedness then outstanding onconsolidated financial statements for the Company’s unsecured line of credit. The remaining proceeds frommortgage activity and related details, and Note 12 to the May offering, the proceeds fromconsolidated financial statements for the Company’s June 2016 unsecured senior notes offering, and draws on the Company’s revolving line of credit were used to fund the purchase of LifeStorage, LP in July 2016 for approximately $1.3 billion. Cash provided by financing activities was $141.0 million in 2015 compared to $187.9 million in 2014. The decrease from 2014 to 2015 was a result of a $23.0 million increase in dividends paid and a reduction in debt from 2014 to 2015. In 2015 we used $225.7 million in net proceeds from the sale of common stock and $30.0 million in net proceeds from draws on our line of credit to fund property acquisitions. In 2014 we used $112.7 million in net proceeds from the sale of common stock and $175.0 million in proceeds from the issuance of a term note to fund property acquisitions. On March 3, 2015, the Company completed the public offering of 1,380,000 shares of its common stock at $90.40 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $119.5 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness outstanding on the Company’s unsecured line of credit.
On May 12, 2014, the Company entered into a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC (“Wells Fargo”), Jefferies LLC (“Jefferies”), SunTrust Robinson Humphrey, Inc. (“SunTrust”), Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC (“BB&T”), pursuant to which the Company may sell from time to time up to $225 million in aggregate offering price of shares of the Company’s common stock. Actual sales under the Equity Program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the
trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell, and issue shares of common stock under the Equity Program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the Equity Program.
During 2016, the Company did not issue any shares of common stock under the equity program. During 2015, the Company issued 949,911 shares of common stock under the Equity Program at a weighted average issue price of $96.80 per share, generating net proceeds of $90.6 million. During 2014, we issued 924,403 shares under the Equity Program and 359,102 shares under our previous Equity Program for net proceeds of approximately $99.2 million. As of December 31, 2016, the Company has $59.3 million availability for issuance of shares under the current Equity Program which expires in May 2017.
We implemented a Dividend Reinvestment Plan in March 2013. We issued 133,666 and 151,246 shares under the plan in 2016 and 2015, respectively.
During 2016 and 2015, we did not acquire any shares of our common stock via the Share Repurchase Program authorized by the Board of Directors. From the inception of the Share Repurchase Program through December 31, 2016, we have reacquired a total of 1,171,886 shares pursuant to this program. From time to time, subject to market price and certain loan covenants, we may reacquire additional shares.
In January 2016, the Company exercised the expansion feature of its existing amended unsecured credit agreement and increased the revolving credit limit from $300 million to $500 million. The interest rate on the revolving credit facility bears interest at a variable rate equal to LIBOR plus a margin based on the Company’s credit rating (at December 31, 2016 the margin is 1.10%), and requires a 0.15% facility fee. The Company’s unsecured credit agreement also includes a $325 million unsecured term note maturing June 4, 2020, with the term note bearing interest at LIBOR plus a margin based on the Company’s credit rating (at December 31, 2016 the margin is 1.15%). The interest rate at December 31, 2016 on the Company’s line of credit was approximately 1.79% (1.72% at December 31, 2015). At December 31, 2016, there was $247 million available on the unsecured line of credit. The revolving line of credit has a maturity date of December 10, 2019.
On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%. The proceeds from this term note were used to repay a portion of the then outstanding balance on the Company’s line of credit.
The Company had maintained a $150 million unsecured term note that matured on April 26, 2016 bearing interest at 6.38%. The Company used a draw on the line of credit to pay off the balance of this note on April 26, 2016.
On June 20, 2016, the Company issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). Net proceeds to the Company after original issue discount, underwriting discounts and commissions and offering expenses were approximately $591.2 million. On July 15, 2016, the proceeds from the 2026 Senior Notes, the proceeds from the Company’s common stock offering in May 2016, and draws on the Company’s line of credit were used to fund the acquisition of LifeStorage, LP. In conjunction with the issuance of the 2026 Senior Notes, the Company settled its $150 million notional forward starting swap agreements for cash of approximately $9.2 million.
On April 8, 2014, the Company entered into a $175 million term note maturing April 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded. The proceeds from this term note were used to repay the $115 million outstanding on the Company’s line of credit at April 8, 2014, with the excess proceeds used for acquisitions.
In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded. The proceeds from this term note were used to fund acquisitions and investments in unconsolidated joint ventures.
The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At December 31, 2016, the Company was in compliance with its debt covenants.
We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at December 31, 2016 the entire availability on the line of credit could be drawn without violating our debt covenants.
The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control.activity.
Our line of credit facility and term notes have an investment grade rating from Standard and Poor’s (BBB) and Moody’s (Baa2). In addition to the unsecured financing mentioned above, our consolidated financial statements also include $13.0 million of mortgages payable at December 31, 2016, that are secured by four storage facilities.
Future acquisitions, our expansion and enhancement program, and share repurchases are expected to be funded with future cash flows from operations, draws on our line of credit, issuance of common and preferred stock, the issuance of unsecured term notes, sale of properties, and private placement solicitation of joint venture equity. Should the capital markets deteriorate, we may have to curtail acquisitions, our expansion and enhancement program, and share repurchases.
CONTRACTUAL OBLIGATIONS The following table summarizes our future contractual obligations: | | | Payments due by period (in thousands) | | | Payments due by period (in thousands) | | Contractual obligations | | Total | | | 2017 | | | 2018-2019 | | | 2020-2021 | | | 2022 and thereafter | | | Total | | | 2018 | | | 2019-2020 | | | 2021-2022 | | | 2023 and thereafter | | Line of credit | | $ | 253,000 | | | $ | — | | | $ | 253,000 | | | $ | — | | | $ | — | | | $ | 105,000 | | | $ | — | | | $ | 105,000 | | | $ | — | | | $ | — | | Term notes | | | 1,400,000 | | | | — | | | | — | | | | 425,000 | | | | 975,000 | | | | 1,625,000 | | | | — | | | | 100,000 | | | | 100,000 | | | | 1,425,000 | | Mortgages payable | | | 13,027 | | | | 353 | | | | 765 | | | | 3,534 | | | | 8,375 | | | | 12,674 | | | | 372 | | | | 806 | | | | 3,516 | | | | 7,980 | | Interest payments | | | 407,534 | | | | 53,970 | | | | 107,442 | | | | 84,928 | | | | 161,194 | | | | 514,859 | | | | 65,912 | | | | 126,483 | | | | 111,481 | | | | 210,983 | | Interest rate swap payments | | | 13,015 | | | | 4,033 | | | | 7,785 | | | | 1,197 | | | | — | | | Land leases | | | 9,669 | | | | 566 | | | | 1,133 | | | | 1,137 | | | | 6,833 | | | | 9,103 | | | | 566 | | | | 1,135 | | | | 1,137 | | | | 6,265 | | Expansion and enhancement contracts | | | 11,552 | | | | 11,552 | | | | — | | | | — | | | | — | | | | 32,807 | | | | 32,807 | | | | — | | | | — | | | | — | | Building leases | | | 15,318 | | | | 1,866 | | | | 3,426 | | | | 3,429 | | | | 6,597 | | | | 14,676 | | | | 2,328 | | | | 4,068 | | | | 3,431 | | | | 4,849 | | Self-storage facility acquisitions | | | 67,025 | | | | 67,025 | | | | — | | | | — | | | | — | | | Contribution to joint venture for acquisitions under contract | | | 21,900 | | | | 21,900 | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | Total | | $ | 2,212,040 | | | $ | 161,265 | | | $ | 373,551 | | | $ | 519,225 | | | $ | 1,157,999 | | | $ | 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, 20162017 rates. Interest rate swap payments include estimated net settlements of swap liabilities based on forecasted variable rates. At December 31, 2016, the Company was under contract to acquire five self-storage facilities for cash consideration of approximately $67.0 million (net of property deposits of $3.7 million). One of the properties was acquired in February 2017 from an unrelated party for $9.8 million. The purchase of the remaining facilities by the Company is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.
ACQUISITION OF PROPERTIES In 2017, we acquired two self-storage facilities comprising 148,000 square feet in 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 acquired 122 self-storage facilities comprising 9.4 million square feet in 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 Wisconsin (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 2.0 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 which the properties were acquired, the weighted average capitalization rate was 5.3% on these purchases and ranged from 0% on recently constructed facilities to 6.4% on mature facilities. Four facilities acquired in Connecticut and New York in 2015 had been leased by the Company since November 1, 2013 and the operating results of these four facilities have been included in the Company’s operations since that date. In 2014, we acquired 33 self-storage facilities comprising 2.4 million square feet in Florida (4), Georgia (1), Illinois (3), Louisiana (1), Maine (2), Missouri (7), New Jersey (6), New York (1), Texas (6), Tennessee (1), and Virginia (1) for a total purchase price of $291.9 million. Based on the trailing financial information of the entities from which the properties were acquired, the weighted average capitalization rate was 5.5% on these purchases and ranged from 0% on recently constructed facilities to 7.4% on mature facilities. FUTURE ACQUISITION AND DEVELOPMENT PLANS Our external growth strategy is to increase the number of facilities we own by acquiring suitable facilities in markets in which we already have operations, or to expand into new markets by acquiring several facilities at once in those new markets. We are actively pursuing acquisitions in 2017 and at December 31, 2016 we had five properties under contract to be purchased for $67.0 million. One of the properties was acquired in February 2017. In 2016,2017, we added 343,000382,000 square feet to existing Properties and converted 55,000122,000 square feet to premium storage for a total cost of approximately $22.4$35.2 million. In 20162017 we also installed solar panels on sixtwo buildings for a total cost of approximately $2.7$0.4 million. Although we do not expect to construct any new facilities in 2017,2018, we do plan to complete approximately $35.1$40 million to $50 million in expansions and enhancements to existing facilities of which $12.6$12.1 million was paid prior to December 31, 2016.2017. In 2016,2017, the Company spent approximately $38.6$47.8 million for recurring capitalized expenditures including roofing, paving, office renovations, and new signs related to our rebranding. We expect to spend $30.2$20 million to $25 million in 20172018 on similar capital expenditures.expenditures as we do not expect significant sign related expenditures in 2018. DISPOSITION OF PROPERTIES 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. 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 approximately $0.5 million. During 2014, As part of our ongoing strategy to improve overall operating efficiencies and portfolio quality, we sold two non-strategic storage facilities in Texas for net proceeds of approximately $11.0 million resulting in a gain of approximately $5.2 million. We may seek to sell additional Properties to third parties or joint venture partners in 2017. 2018.
OFF-BALANCE SHEET ARRANGEMENTS Our off-balance sheet arrangements consist of our investment in sixnine self-storage joint ventures in which we have anownership interests ranging from 5% to 85%, 20%, 15% or 5% ownership, as well as our investment in the entity that owns the building that houses our corporate office in which we have a 49% ownership. We account for these real estate entities under the equity method. The debt held by the unconsolidated real estate entities is secured by the real estate owned by these entities and is non-recourse to us. See Note 11 to our consolidated financial statements appearing elsewhere in this annual report on Form 10-K.for additional details. REIT QUALIFICATION AND DISTRIBUTION REQUIREMENTS As a REIT, we are not required to pay federal income tax on income that we distribute to our shareholders, provided that we satisfy certain requirements, including distributing at least 90% of our REIT taxable income for a taxable year. These distributions must be made in the year to which they relate, or in the following year if declared before we file our federal income tax return, and if they are paid not later than the date of the first regular dividend of the following year. As a REIT, we must derive at least 95% of our total gross income from income related to real property, interest and dividends. In 2016, our percentage of revenue from such sources was approximately 97%, thereby passing the 95% test, and no special measures are expected to be required to enable us to maintain our REIT designation. Although we currently intend to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause our Board of Directors to revoke our REIT election. 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. Upon renewal or replacement of the credit facility, our total interest may change dependent on the terms we negotiate with the lenders; however, the LIBOR base rates have been contractually fixed on $325$100 million of our floating rate bank debt through the interest rate swap termination dates.date. Forward starting interest rate swaps arehave 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. See Note 87 to our consolidated financial statements appearing elsewhere in this annual report on Form 10-K.for additional detail related to interest rate swaps. Through September 2018, $325$100 million of our $578$205 million of floating rate unsecured debt is on a fixed rate basis after taking into account our interest rate swap agreements. Based on our outstanding unsecured floating rate debt of $578$205 million at December 31, 2016,2017, a 100 basis point increase in interest rates would have a $2.5$1.1 million effect on our interest expense. These amounts wereThis amount was determined by considering the impact of the hypothetical interest rates on our borrowing cost and our interest rate hedge agreements in effect on December 31, 2016. These analyses do2017. This analysis does not consider the effectsimpact of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure. INFLATION We do not believe that inflation has had or will have a direct effect on our operations. Substantially all of the leases at the facilities are on a month-to-month basis which provides us with the opportunity to increase rental rates as each lease matures. SEASONALITY Our revenues typically have been higher in the third and fourth quarters, primarily because self-storage facilities tend to experience greater occupancy during the late spring, summer and early fall months due to the greater incidence of residential moves and college student activity during these periods. However, we believe that our customer mix, diverse geographic locations, rental structure and expense structure provide adequate protection against undue fluctuations in cash flows and net revenues during off-peak seasons. Thus, we do not expect seasonality to materially affect distributions to shareholders. Item 7A. | Quantitative and Qualitative Disclosures About Market Risk |
The information required is incorporated by reference to the information appearing under the caption “Interest Rate Risk” in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” above. Item 8. | Financial Statements and Supplementary Data |
Report of Independent Registered Public Accounting Firm TheTo the Shareholders and the Board of Directors and Shareholders of Life Storage, Inc.
Opinion on the Financial Statement We have audited the accompanying consolidated balance sheets of Life Storage, Inc. (the Parent Company) as of December 31, 20162017 and 2015,2016, and 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, 2016. 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”). These financial statements and schedule are the responsibility of Life Storage, Inc.’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Life Storage, Inc.the Parent Company at December 31, 2017 and 2016, and 2015, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2016,2017, 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), Life Storage, Inc.’sthe Parent Company’s internal control over financial reporting as of December 31, 2016,2017, 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, 20172018 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, 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 Parent Company’s auditor since 1994. Buffalo, New York February 27, 2017 2018
Report of Independent Registered Public Accounting Firm TheTo the Partners and the Board of Directors and Partners 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, 20162017 and 2015,2016, 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, 2016. 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”). These financial statements and schedule are the responsibility of Life Storage LP’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Life Storage LPthe Operating Partnership at December 31, 2017 and 2016, and 2015, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2016,2017, 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), Life Storage LP’sthe Operating Partnership’s internal control over financial reporting as of December 31, 2016,2017, 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, 20172018 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 27, 2017 2018
LIFE STORAGE, INC. CONSOLIDATED BALANCE SHEETS | | | December 31, | | | December 31, | | (dollars in thousands, except share data) | | 2016 | | 2015 | | | 2017 | | | 2016 | | Assets | | | | | | | | | | | | | Investment in storage facilities: | | | | | | | | | | | | | Land | | $ | 786,764 | | | $ | 480,176 | | | $ | 786,628 | | | $ | 786,764 | | Building, equipment, and construction in progress | | | 3,456,544 | | | 2,011,526 | | | | 3,534,782 | | | | 3,456,544 | | | | | | | | | | | 4,321,410 | | | | 4,243,308 | | | | | 4,243,308 | | | 2,491,702 | | | Less: accumulated depreciation | | | (535,704 | ) | | (465,195 | ) | | | (624,314 | ) | | | (535,704 | ) | | | | | | | | | Investment in storage facilities, net | | | 3,707,604 | | | 2,026,507 | | | | 3,697,096 | | | | 3,707,604 | | Cash and cash equivalents | | | 23,685 | | | 7,020 | | | | 9,167 | | | | 23,685 | | Accounts receivable | | | 5,469 | | | 6,805 | | | | 7,331 | | | | 5,469 | | Receivable from unconsolidated joint ventures | | | 1,223 | | | 929 | | | | 1,397 | | | | 1,223 | | Investment in unconsolidated joint ventures | | | 67,300 | | | 62,520 | | | | 133,458 | | | | 67,300 | | Prepaid expenses | | | 6,649 | | | 5,431 | | | | 6,757 | | | | 6,649 | | Fair value of interest rate swap agreements | | | — | | | 550 | | | | 205 | | | | — | | Trade name | | | 16,500 | | | | — | | | | 16,500 | | | | 16,500 | | Other assets | | | 29,554 | | | 9,060 | | | | 4,863 | | | | 29,554 | | | | | | | | | | Total Assets | | $ | 3,857,984 | | | $ | 2,118,822 | | | $ | 3,876,774 | | | $ | 3,857,984 | | | | | | | | | | Liabilities | | | | | | | | | | | | | Line of credit | | $ | 253,000 | | | $ | 79,000 | | | $ | 105,000 | | | $ | 253,000 | | Term notes, net | | | 1,387,525 | | | 746,650 | | | | 1,609,089 | | | | 1,387,525 | | Accounts payable and accrued liabilities | | | 75,132 | | | 47,839 | | | | 92,941 | | | | 75,132 | | Deferred revenue | | | 9,700 | | | 7,511 | | | | 9,374 | | | | 9,700 | | Fair value of interest rate swap agreements | | | 13,015 | | | 15,343 | | | | — | | | | 13,015 | | Mortgages payable | | | 13,027 | | | 1,993 | | | | 12,674 | | | | 13,027 | | | | | | | | | | Total Liabilities | | | 1,751,399 | | | 898,336 | | | | 1,829,078 | | | | 1,751,399 | | Noncontrolling redeemable Operating Partnership Units at redemption value | | | 18,091 | | | 18,171 | | | | 19,373 | | | | 18,091 | | Shareholders’ Equity | | | | | | | | | | | | | Common stock $.01 par value, 100,000,000 shares authorized, 46,454,606 shares outstanding at December 31, 2016 (36,710,673 at December 31, 2015) | | | 464 | | | 367 | | | 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 | | | 2,348,567 | | | 1,388,343 | | | | 2,363,171 | | | | 2,348,567 | | Dividends in excess of net income | | | (239,062 | ) | | (171,980 | ) | | | (327,727 | ) | | | (239,062 | ) | Accumulated other comprehensive loss | | | (21,475 | ) | | (14,415 | ) | | | (7,587 | ) | | | (21,475 | ) | | | | | | | | | Total Shareholders’ Equity | | | 2,088,494 | | | 1,202,315 | | | | 2,028,323 | | | | 2,088,494 | | Noncontrolling interest in consolidated subsidiary | | | — | | | | — | | | | — | | | | — | | | | | | | | | | Total Equity | | | 2,088,494 | | | 1,202,315 | | | | 2,028,323 | | | | 2,088,494 | | | | | | | | | | Total Liabilities and Shareholders’ Equity | | $ | 3,857,984 | | | $ | 2,118,822 | | | $ | 3,876,774 | | | $ | 3,857,984 | | | | | | | | | |
See notes to consolidated financial statements.
LIFE STORAGE, INC. CONSOLIDATED STATEMENTS OF OPERATIONS | | | Year Ended December 31, | | | Year Ended December 31, | | (dollars in thousands, except per share data) | | 2016 | | 2015 | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Revenues | | | | | | | | | | | | | | | | | | | Rental income | | $ | 428,121 | | | $ | 338,435 | | | $ | 302,044 | | | $ | 485,303 | | | $ | 428,121 | | | $ | 338,435 | | Other operating income | | | 34,487 | | | 28,167 | | | 24,036 | | | | 44,447 | | | | 34,487 | | | | 28,167 | | | | | | | | | | | | | Total operating revenues | | | 462,608 | | | 366,602 | | | 326,080 | | | | 529,750 | | | | 462,608 | | | | 366,602 | | Expenses | | | | | | | | | | | | | | | | | | | Property operations and maintenance | | | 103,388 | | | 81,915 | | | 75,333 | | | | 122,794 | | | | 103,388 | | | | 81,915 | | Real estate taxes | | | 47,876 | | | 36,563 | | | 32,097 | | | | 57,663 | | | | 47,876 | | | | 36,563 | | General and administrative | | | 43,103 | | | 38,659 | | | 35,222 | | | | 50,031 | | | | 43,103 | | | | 38,659 | | Acquisition costs | | | 29,542 | | | 2,991 | | | 7,359 | | | | — | | | | 29,542 | | | | 2,991 | | Write-off of acquired property deposits | | | 1,783 | | | | — | | | | — | | | | — | | | | 1,783 | | | | — | | Operating leases of storage facilities | | | — | | | 683 | | | 7,987 | | | | 424 | | | | — | | | | 683 | | Depreciation and amortization | | | 117,081 | | | 58,506 | | | 51,749 | | | | 127,485 | | | | 117,081 | | | | 58,506 | | | | | | | | | | | | | Total operating expenses | | | 342,773 | | | 219,317 | | | 209,747 | | | | 358,397 | | | | 342,773 | | | | 219,317 | | | | | | | | | | | | | Income from operations | | | 119,835 | | | 147,285 | | | 116,333 | | | | 171,353 | | | | 119,835 | | | | 147,285 | | Other income (expenses) | | | | | | | | | | | | | | | | | | | Interest expense | | | (47,175 | ) | | (37,124 | ) | | (34,578 | ) | | | (74,362 | ) | | | (47,175 | ) | | | (37,124 | ) | Interest expense – bridge financing commitment fee | | | (7,329 | ) | | | — | | | | — | | | | — | | | | (7,329 | ) | | | — | | Interest income | | | 67 | | | 5 | | | 40 | | | | 7 | | | | 67 | | | | 5 | | Gain (loss) on sale of storage facilities | | | 15,270 | | | (494 | ) | | 5,176 | | | (Loss) gain on sale of storage facilities | | | | (3,503 | ) | | | 15,270 | | | | (494 | ) | Gain on sale of real estate | | | 623 | | | | — | | | | — | | | | �� | | | | 623 | | | | — | | Equity in income of joint ventures | | | 3,665 | | | 3,405 | | | 2,086 | | | | 3,314 | | | | 3,665 | | | | 3,405 | | | | | | | | | | | | | Net income | | | 84,956 | | | 113,077 | | | 89,057 | | | | 96,809 | | | | 84,956 | | | | 113,077 | | Net income attributable to noncontrolling interest in the Operating Partnership | | | (398 | ) | | (553 | ) | | (526 | ) | | | (444 | ) | | | (398 | ) | | | (553 | ) | Net loss attributable to noncontrolling interest in consolidated subsidiary | | | 667 | | | | — | | | | — | | | | — | | | | 667 | | | | — | | | | | | | | | | | | | Net income attributable to common shareholders | | $ | 85,225 | | | $ | 112,524 | | | $ | 88,531 | | | $ | 96,365 | | | $ | 85,225 | | | $ | 112,524 | | | | | | | | | | | | | Earnings per common share attributable to common shareholders - basic | | $ | 1.97 | | | $ | 3.18 | | | $ | 2.68 | | | $ | 2.08 | | | $ | 1.97 | | | $ | 3.18 | | | | | | | | | | | | | Earnings per common share attributable to common shareholders - diluted | | $ | 1.96 | | | $ | 3.16 | | | $ | 2.67 | | | $ | 2.07 | | | $ | 1.96 | | | $ | 3.16 | | | | | | | | | | | | |
See notes to consolidated financial statements.
LIFE STORAGE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | Year Ended December 31, | | | Year Ended December 31, | | (dollars in thousands) | | 2016 | | 2015 | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Net income | | $ | 84,956 | | | $ | 113,077 | | | $ | 89,057 | | | $ | 96,809 | | | $ | 84,956 | | | $ | 113,077 | | Other comprehensive income: | | | | | | | | | | | | | | | | | | | Effective portion of loss on derivatives net of reclassification to interest expense | | | (7,060 | ) | | (1,410 | ) | | (6,603 | ) | | | | | | | | | | | | | Effective portion of gain (loss) on derivatives net of reclassification to interest expense | | | | 13,888 | | | | (7,060 | ) | | | (1,410 | ) | Total comprehensive income | | | 77,896 | | | 111,667 | | | 82,454 | | | | 110,697 | | | | 77,896 | | | | 111,667 | | Comprehensive income attributable to noncontrolling interest in the Operating Partnership | | | (365 | ) | | (546 | ) | | (487 | ) | | | (508 | ) | | | (365 | ) | | | (546 | ) | Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary | | | 667 | | | | — | | | | — | | | | — | | | | 667 | | | | — | | | | | | | | | | | | | Comprehensive income attributable to common shareholders | | $ | 78,198 | | | $ | 111,121 | | | $ | 81,967 | | | $ | 110,189 | | | $ | 78,198 | | | $ | 111,121 | | | | | | | | | | | | |
See notes to consolidated financial statements.
LIFE STORAGE, INC. 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 | | | 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, 2014 | | 32,532,991 | | | $ | 325 | | | $ | 1,039,236 | | | $ | (162,450 | ) | | $ | (6,402 | ) | | $ | 870,709 | | | 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 | | 1,283,505 | | | 13 | | | 98,968 | | | | — | | | | — | | | 98,981 | | | | 2,329,911 | | | | 23 | | | | 210,119 | | | | — | | | | — | | | | 210,142 | | Net proceeds from the issuance of common stock through Dividend Reinvestment Plan | | 171,854 | | | 2 | | | 12,447 | | | | — | | | | — | | | 12,449 | | | | 151,246 | | | | 1 | | | | 13,925 | | | | — | | | | — | | | | 13,926 | | Exercise of stock options | | 27,462 | | | | — | | | 1,245 | | | | — | | | | — | | | 1,245 | | | | 30,900 | | | | 1 | | | | 1,632 | | | | — | | | | — | | | | 1,633 | | Issuance of non-vested stock | | 90,143 | | | 1 | | | (1 | ) | | | — | | | | — | | | | — | | | | 64,244 | | | | 1 | | | | (1 | ) | | | — | | | | — | | | | — | | Earned portion of non-vested stock | | | — | | | | — | | | 4,556 | | | | — | | | | — | | | 4,556 | | | | — | | | | — | | | | 6,254 | | | | — | | | | — | | | | 6,254 | | Stock option expense | | | — | | | | — | | | 223 | | | | — | | | | — | | | 223 | | | | — | | | | — | | | | 210 | | | | — | | | | — | | | | 210 | | Deferred compensation outside directors | | | — | | | | — | | | 121 | | | | — | | | | — | | | 121 | | | | 28,417 | | | | — | | | | 59 | | | | — | | | | — | | | | 59 | | Carrying value less than redemption value on redeemed noncontrolling interest | | | — | | | | — | | | (570 | ) | | | — | | | | — | | | (570 | ) | | | — | | | | — | | | | (80 | ) | | | — | | | | — | | | | (80 | ) | Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units | | | — | | | | — | | | | — | | | (3,738 | ) | | | — | | | (3,738 | ) | | | — | | | | — | | | | — | | | | (3,328 | ) | | | — | | | | (3,328 | ) | Net income attributable to common shareholders | | | — | | | | — | | | | — | | | 88,531 | | | | — | | | 88,531 | | | | — | | | | — | | | | — | | | | 112,524 | | | | — | | | | 112,524 | | Change in fair value of derivatives | | | — | | | | — | | | | — | | | | — | | | (6,603 | ) | | (6,603 | ) | | | — | | | | — | | | | — | | | | — | | | | (1,410 | ) | | | (1,410 | ) | Dividends | | | — | | | | — | | | | — | | | (90,035 | ) | | | — | | | (90,035 | ) | | | — | | | | — | | | | — | | | | (113,484 | ) | | | — | | | | (113,484 | ) | | | | | | | | | | | | | | | | | | | | | Balance December 31, 2014 | | 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 | | | | 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 | | | | 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 | | | | 133,666 | | | | 1 | | | | 13,165 | | | | — | | | | — | | | | 13,166 | | Conversion of operating partnership units to common shares | | 41,862 | | | | — | | | 4,795 | | | | — | | | | — | | | 4,795 | | | | 41,862 | | | | — | | | | 4,795 | | | | — | | | | — | | | | 4,795 | | Issuance of non-vested stock | | 23,405 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 23,405 | | | | — | | | | — | | | | — | | | | — | | | | — | | Earned portion of non-vested stock | | | — | | | | — | | | 7,216 | | | | — | | | | — | | | 7,216 | | | | — | | | | — | | | | 7,216 | | | | — | | | | — | | | | 7,216 | | Stock option expense | | | — | | | | — | | | 89 | | | | — | | | | — | | | 89 | | | | — | | | | — | | | | 89 | | | | — | | | | — | | | | 89 | | Deferred compensation outside directors | | | — | | | | — | | | 92 | | | | — | | | | — | | | 92 | | | | — | | | | — | | | | 92 | | | | — | | | | — | | | | 92 | | Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units | | | — | | | | — | | | | — | | | 4,457 | | | | — | | | 4,457 | | | | — | | | | — | | | | — | | | | 4,457 | | | | — | | | | 4,457 | | Net income attributable to common shareholders | | | — | | | | — | | | | — | | | 85,225 | | | | — | | | 85,225 | | | | — | | | | — | | | | — | | | | 85,225 | | | | — | | | | 85,225 | | Amortization of terminated hedge included in AOCI | | | — | | | | — | | | | — | | | | — | | | 458 | | | 458 | | | | — | | | | — | | | | — | | | | — | | | | 458 | | | | 458 | | Change in fair value of derivatives | | | — | | | | — | | | | — | | | | — | | | (7,518 | ) | | (7,518 | ) | | | — | | | | — | | | | — | | | | — | | | | (7,518 | ) | | | (7,518 | ) | Dividends | | | — | | | | — | | | | — | | | (156,764 | ) | | | — | | | (156,764 | ) | | | — | | | | — | | | | — | | | | (156,764 | ) | | | — | | | | (156,764 | ) | | | | | | | | | | | | | | | | | | | | | Balance December 31, 2016 | | 46,454,606 | | | $ | 464 | | | $ | 2,348,567 | | | $ | (239,062 | ) | | $ | (21,475 | ) | | $ | 2,088,494 | | | | 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
LIFE STORAGE, INC. 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.
LIFE STORAGE LP 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.
LIFE STORAGE LP 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.
LIFE STORAGE LP 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.
LIFE STORAGE LP 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
LIFE STORAGE LP CONSOLIDATED STATEMENTS OF CASH FLOWS | | | Year Ended December 31, | | | Year Ended December 31, | | (dollars in thousands) | | 2016 | | 2015 | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Operating Activities | | | | | | | | | | | | | | | | | | | Net income | | $ | 84,956 | | | $ | 113,077 | | | $ | 89,057 | | | $ | 96,809 | | | $ | 84,956 | | | $ | 113,077 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | | | | | | | Depreciation and amortization | | | 117,081 | | | 58,506 | | | 51,749 | | | | 127,485 | | | | 117,081 | | | | 58,506 | | Amortization of debt issuance costs and bond discount | | | 9,688 | | | 1,184 | | | 942 | | | | 4,289 | | | | 9,688 | | | | 1,184 | | (Gain) loss on sale of storage facilities | | | (15,270 | ) | | 494 | | | (5,176 | ) | | Loss (gain) on sale of storage facilities | | | | 3,503 | | | | (15,270 | ) | | | 494 | | Gain on sale of real estate | | | (623 | ) | | | — | | | | — | | | | - | | | | (623 | ) | | | — | | Write-off of acquired property deposits | | | 1,783 | | | | — | | | | — | | | | - | | | | 1,783 | | | | — | | Equity in income of joint ventures | | | (3,665 | ) | | (3,405 | ) | | (2,086 | ) | | | (3,314 | ) | | | (3,665 | ) | | | (3,405 | ) | Distributions from unconsolidated joint venture | | | 5,207 | | | 4,821 | | | 3,123 | | | | 7,055 | | | | 5,207 | | | | 4,821 | | Non-vested stock earned | | | 7,308 | | | 6,313 | | | 4,677 | | | | 7,148 | | | | 7,308 | | | | 6,313 | | Stock option expense | | | 89 | | | 210 | | | 223 | | | | 15 | | | | 89 | | | | 210 | | Deferred income taxes | | | | (2,578 | ) | | | — | | | | — | | Changes in assets and liabilities (excluding the effects of acquisitions): | | | | | | | | | | | | | | | | | | | Accounts receivable | | | 4,814 | | | (1,038 | ) | | (606 | ) | | | (1,862 | ) | | | 4,814 | | | | (1,038 | ) | Prepaid expenses | | | (230 | ) | | 1,132 | | | (457 | ) | | | (162 | ) | | | (230 | ) | | | 1,132 | | (Advances to) receipts from joint ventures | | | (294 | ) | | (346 | ) | | 590 | | | Advances to joint ventures | | | | (174 | ) | | | (294 | ) | | | (346 | ) | Accounts payable and other liabilities | | | 18,494 | | | 5,847 | | | 5,187 | | | | 10,692 | | | | 18,494 | | | | 5,847 | | Deferred revenue | | | (3,788 | ) | | (597 | ) | | (1,155 | ) | | | (326 | ) | | | (3,788 | ) | | | (597 | ) | | | | | | | | | | | | Net cash provided by operating activities | | | 225,550 | | | 186,198 | | | 146,068 | | | | 248,580 | | | | 225,550 | | | | 186,198 | | Investing Activities | | | | | | | | | | | | | | | | | | | Acquisition of storage facilities, net of cash acquired | | | (1,750,267 | ) | | (280,010 | ) | | (281,731 | ) | | | (21,880 | ) | | | (1,750,267 | ) | | | (280,010 | ) | Improvements, equipment additions, and construction in progress | | | (72,852 | ) | | (41,739 | ) | | (35,097 | ) | | | (83,657 | ) | | | (72,852 | ) | | | (41,739 | ) | Net proceeds from the sale of storage facilities | | | 34,074 | | | 4,646 | | | 11,191 | | | Net proceeds from the sale of real estate | | | 623 | | | | — | | | | — | | | | 18,872 | | | | 34,697 | | | | 4,646 | | Investment in unconsolidated joint ventures | | | (6,438 | ) | | (6,151 | ) | | (28,650 | ) | | | (69,911 | ) | | | (6,438 | ) | | | (6,151 | ) | Property deposits | | | (1,209 | ) | | (5,435 | ) | | (706 | ) | | | 66 | | | | (1,209 | ) | | | (5,435 | ) | | | | | | | | | | | | Net cash used in investing activities | | | (1,796,069 | ) | | (328,689 | ) | | (334,993 | ) | | | (156,510 | ) | | | (1,796,069 | ) | | | (328,689 | ) | Financing Activities | | | | | | | | | | | | | | | | | | | Net proceeds from sale of common stock | | | 948,129 | | | 225,701 | | | 112,676 | | | Net proceeds from sale of partnership units | | | | 15,677 | | | | 948,129 | | | | 225,701 | | Purchase of outstanding units | | | | (8,234 | ) | | | — | | | | — | | Proceeds from line of credit | | | 1,102,000 | | | 330,000 | | | 202,000 | | | | 276,000 | | | | 1,102,000 | | | | 330,000 | | Repayment of line of credit | | | (928,000 | ) | | (300,000 | ) | | (202,000 | ) | | | (424,000 | ) | | | (928,000 | ) | | | (300,000 | ) | Proceeds from term notes, net of discount | | | 796,682 | | | | — | | | 175,000 | | | | 447,853 | | | | 796,682 | | | | — | | Repayment of term note | | | (150,000 | ) | | | — | | | | — | | | Repayment of term notes | | | | (225,000 | ) | | | (150,000 | ) | | | — | | Debt issuance costs | | | (15,273 | ) | | | — | | | (3,001 | ) | | | (3,961 | ) | | | (15,273 | ) | | | — | | Settlement of forward starting interest rate swaps | | | (9,166 | ) | | | — | | | | — | | | | — | | | | (9,166 | ) | | | — | | Dividends paid - common stock | | | (156,249 | ) | | (113,039 | ) | | (90,035 | ) | | Distributions to unitholders | | | | (183,711 | ) | | | (156,249 | ) | | | (113,039 | ) | Distributions to noncontrolling interest holders | | | (742 | ) | | (555 | ) | | (541 | ) | | | (859 | ) | | | (742 | ) | | | (555 | ) | Redemption of operating partnership units | | | — | | | (1,005 | ) | | (6,028 | ) | | | — | | | | — | | | | (1,005 | ) | Mortgage principal payments | | | (197 | ) | | (134 | ) | | (127 | ) | | | (353 | ) | | | (197 | ) | | | (134 | ) | | | | | | | | | | | | Net cash provided by financing activities | | | 1,587,184 | | | 140,968 | | | 187,944 | | | | | | | | | | | | | | Net increase (decrease) in cash | | | 16,665 | | | (1,523 | ) | | (981 | ) | | 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 | | | 7,020 | | | 8,543 | | | 9,524 | | | | 23,685 | | | | 7,020 | | | | 8,543 | | | | | | | | | | | | | Cash at end of period | | $ | 23,685 | | | $ | 7,020 | | | $ | 8,543 | | | $ | 9,167 | | | $ | 23,685 | | | $ | 7,020 | | | | | | | | | | | | | Supplemental cash flow information | | | | | | | | | | | | | | | | | | | Cash paid for interest, net of interest capitalized | | $ | 39,856 | | | $ | 35,926 | | | $ | 31,764 | | | $ | 70,924 | | | $ | 39,856 | | | $ | 35,926 | | Cash paid for income taxes, net of refunds | | $ | 981 | | | $ | 1,084 | | | $ | 665 | | | $ | 1,180 | | | $ | 981 | | | $ | 1,084 | |
See notes to consolidated financial statements.
LIFE STORAGE LP
CONSOLIDATED BALANCE SHEETS
| | | | | | | | | | | December 31, | | (dollars in thousands, except unit data) | | 2016 | | | 2015 | | Assets | | | | | | | | | Investment in storage facilities: | | | | | Land | | $ | 786,764 | | | $ | 480,176 | | Building, equipment, and construction in progress | | | 3,456,544 | | | | 2,011,526 | | | | | | | | | | | | | | 4,243,308 | | | | 2,491,702 | | Less: accumulated depreciation | | | (535,704 | ) | | | (465,195 | ) | | | | | | | | | | Investment in storage facilities, net | | | 3,707,604 | | | | 2,026,507 | | Cash and cash equivalents | | | 23,685 | | | | 7,020 | | Accounts receivable | | | 5,469 | | | | 6,805 | | Receivable from unconsolidated joint ventures | | | 1,223 | | | | 929 | | Investment in unconsolidated joint ventures | | | 67,300 | | | | 62,520 | | Prepaid expenses | | | 6,649 | | | | 5,431 | | Fair value of interest rate swap agreements | | | — | | | | 550 | | Trade name | | | 16,500 | | | | — | | Other assets | | | 29,554 | | | | 9,060 | | | | | | | | | | | Total Assets | | $ | 3,857,984 | | | $ | 2,118,822 | | | | | | | | | | | Liabilities | | | | | | | | | Line of credit | | $ | 253,000 | | | $ | 79,000 | | Term notes, net | | | 1,387,525 | | | | 746,650 | | Accounts payable and accrued liabilities | | | 75,132 | | | | 47,839 | | Deferred revenue | | | 9,700 | | | | 7,511 | | Fair value of interest rate swap agreements | | | 13,015 | | | | 15,343 | | Mortgages payable | | | 13,027 | | | | 1,993 | | | | | | | | | | | Total Liabilities | | | 1,751,399 | | | | 898,336 | | Limited partners’ redeemable capital interest at redemption value (217,481 and 168,866 units outstanding at December 31, 2016 and December 31, 2015, respectively) | | | 18,091 | | | | 18,171 | | Partners’ Capital | | | | | | | | | General partner (466,721 and 368,795 units outstanding at December 31, 2016 and December 31, 2015, respectively) | | | 21,065 | | | | 12,205 | | Limited partners (45,987,885 and 36,341,878 units outstanding at December 31, 2016 and December 31, 2015, respectively) | | | 2,088,904 | | | | 1,204,525 | | Accumulated other comprehensive loss | | | (21,475 | ) | | | (14,415 | ) | | | | | | | | | | Total Controlling Partners’ Capital | | | 2,088,494 | | | | 1,202,315 | | Noncontrolling interest in consolidated subsidiary | | | — | | | | — | | | | | | | | | | | Total Partners’ Capital | | | 2,088,494 | | | | 1,202,315 | | | | | | | | | | | Total Liabilities and Partners’ Capital | | $ | 3,857,984 | | | $ | 2,118,822 | | | | | | | | | | |
See notes to consolidated financial statements.
LIFE STORAGE LP
CONSOLIDATED STATEMENTS OF OPERATIONS
| | | | | | | | | | | | | | | Year Ended December 31, | | (dollars in thousands, except per unit data) | | 2016 | | | 2015 | | | 2014 | | Revenues | | | | | | | | | | | | | Rental income | | $ | 428,121 | | | $ | 338,435 | | | $ | 302,044 | | Other operating income | | | 34,487 | | | | 28,167 | | | | 24,036 | | | | | | | | | | | | | | | Total operating revenues | | | 462,608 | | | | 366,602 | | | | 326,080 | | Expenses | | | | | | | | | | | | | Property operations and maintenance | | | 103,388 | | | | 81,915 | | | | 75,333 | | Real estate taxes | | | 47,876 | | | | 36,563 | | | | 32,097 | | General and administrative | | | 43,103 | | | | 38,659 | | | | 35,222 | | Acquisition costs | | | 29,542 | | | | 2,991 | | | | 7,359 | | Write-off of acquired property deposits | | | 1,783 | | | | — | | | | — | | Operating leases of storage facilities | | | — | | | | 683 | | | | 7,987 | | Depreciation and amortization | | | 117,081 | | | | 58,506 | | | | 51,749 | | | | | | | | | | | | | | | Total operating expenses | | | 342,773 | | | | 219,317 | | | | 209,747 | | | | | | | | | | | | | | | Income from operations | | | 119,835 | | | | 147,285 | | | | 116,333 | | Other income (expenses) | | | | | | | | | | | | | Interest expense | | | (47,175 | ) | | | (37,124 | ) | | | (34,578 | ) | Interest expense – bridge financing commitment fee | | | (7,329 | ) | | | — | | | | — | | Interest income | | | 67 | | | | 5 | | | | 40 | | Gain (loss) on sale of storage facilities | | | 15,270 | | | | (494 | ) | | | 5,176 | | Gain on sale of real estate | | | 623 | | | | — | | | | — | | Equity in income of joint ventures | | | 3,665 | | | | 3,405 | | | | 2,086 | | | | | | | | | | | | | | | Net income | | | 84,956 | | | | 113,077 | | | | 89,057 | | Net income attributable to noncontrolling interest in the Operating Partnership | | | (398 | ) | | | (553 | ) | | | (526 | ) | Net loss attributable to noncontrolling interest in consolidated subsidiary | | | 667 | | | | — | | | | — | | | | | | | | | | | | | | | Net income attributable to common unitholders | | $ | 85,225 | | | $ | 112,524 | | | $ | 88,531 | | | | | | | | | | | | | | | Earnings per common unit attributable to common unitholders - basic | | $ | 1.97 | | | $ | 3.18 | | | $ | 2.68 | | | | | | | | | | | | | | | Earnings per common unit attributable to common unitholders - diluted | | $ | 1.96 | | | $ | 3.16 | | | $ | 2.67 | | | | | | | | | | | | | | | Net income attributable to general partner | | $ | 856 | | | $ | 1,131 | | | $ | 891 | | Net income attributable to limited partners | | | 84,369 | | | | 111,393 | | | | 87,640 | |
See notes to consolidated financial statements.
LIFE STORAGE LP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| | | | | | | | | | | | | | | Year Ended December 31, | | (dollars in thousands) | | 2016 | | | 2015 | | | 2014 | | Net income | | $ | 84,956 | | | $ | 113,077 | | | $ | 89,057 | | Other comprehensive income: | | | | | | | | | | | | | Effective portion of loss on derivatives net of reclassification to interest expense | | | (7,060 | ) | | | (1,410 | ) | | | (6,603 | ) | | | | | | | | | | | | | | Total comprehensive income | | | 77,896 | | | | 111,667 | | | | 82,454 | | Comprehensive income attributable to noncontrolling interest in the Operating Partnership | | | (365 | ) | | | (546 | ) | | | (487 | ) | Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary | | | 667 | | | | — | | | | — | | | | | | | | | | | | | | | Comprehensive income attributable to common unitholders | | $ | 78,198 | | | $ | 111,121 | | | $ | 81,967 | | | | | | | | | | | | | | |
See notes to consolidated financial statements.
LIFE STORAGE LP
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, 2014 | | $ | 8,836 | | | $ | 868,275 | | | $ | (6,402 | ) | | $ | 870,709 | | Net proceeds from the issuance of Partnership Units | | | 1,014 | | | | 97,967 | | | | — | | | | 98,981 | | Net proceeds from the issuance of Partnership Units through Dividend Reinvestment Plan | | | 124 | | | | 12,325 | | | | — | | | | 12,449 | | Exercise of stock options | | | 13 | | | | 1,232 | | | | — | | | | 1,245 | | Earned portion of non-vested stock | | | 46 | | | | 4,510 | | | | — | | | | 4,556 | | Stock option expense | | | 2 | | | | 221 | | | | — | | | | 223 | | Deferred compensation outside directors | | | 1 | | | | 120 | | | | — | | | | 121 | | Carrying value less than redemption value on redeemed noncontrolling interest | | | (60 | ) | | | (510 | ) | | | — | | | | (570 | ) | Adjustment to redemption value of noncontrolling redeemable Operating Partnership Units | | | — | | | | (3,738 | ) | | | — | | | | (3,738 | ) | Net income attributable to common unitholders | | | 891 | | | | 87,640 | | | | — | | | | 88,531 | | Change in fair value of derivatives | | | (66 | ) | | | 66 | | | | (6,603 | ) | | | (6,603 | ) | Distributions | | | (906 | ) | | | (89,129 | ) | | | — | | | | (90,035 | ) | | | | | | | | | | | | | | | | | | Balance December 31, 2014 | | | 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 | ) | Dividends | | | (1,575 | ) | | | (155,189 | ) | | | — | | | | (156,764 | ) | | | | | | | | | | | | | | | | | | Balance December 31, 2016 | | $ | 21,065 | | | $ | 2,088,904 | | | $ | (21,475 | ) | | $ | 2,088,494 | | | | | | | | | | | | | | | | | | |
See notes to consolidated financial statements
LIFE STORAGE LP
CONSOLIDATED STATEMENTS OF CASH FLOWS
| | | | | | | | | | | | | | | Year Ended December 31, | | (dollars in thousands) | | 2016 | | | 2015 | | | 2014 | | Operating Activities | | | | | | | | | | | | | Net income | | $ | 84,956 | | | $ | 113,077 | | | $ | 89,057 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | | | | | | Depreciation and amortization | | | 117,081 | | | | 58,506 | | | | 51,749 | | Amortization of debt issuance costs and bond discount | | | 9,688 | | | | 1,184 | | | | 942 | | (Gain) loss on sale of storage facilities | | | (15,270 | ) | | | 494 | | | | (5,176 | ) | Gain on sale of real estate | | | (623 | ) | | | — | | | | — | | Write-off of acquired property deposits | | | 1,783 | | | | — | | | | — | | Equity in income of joint ventures | | | (3,665 | ) | | | (3,405 | ) | | | (2,086 | ) | Distributions from unconsolidated joint venture | | | 5,207 | | | | 4,821 | | | | 3,123 | | Non-vested stock earned | | | 7,308 | | | | 6,313 | | | | 4,677 | | Stock option expense | | | 89 | | | | 210 | | | | 223 | | Changes in assets and liabilities (excluding the effects of acquisitions): | | | | | | | | | | | | | Accounts receivable | | | 4,814 | | | | (1,038 | ) | | | (606 | ) | Prepaid expenses | | | (230 | ) | | | 1,132 | | | | (457 | ) | (Advances to) receipts from joint ventures | | | (294 | ) | | | (346 | ) | | | 590 | | Accounts payable and other liabilities | | | 18,494 | | | | 5,847 | | | | 5,187 | | Deferred revenue | | | (3,788 | ) | | | (597 | ) | | | (1,155 | ) | | | | | | | | | | | | | | Net cash provided by operating activities | | | 225,550 | | | | 186,198 | | | | 146,068 | | Investing Activities | | | | | | | | | | | | | Acquisition of storage facilities, net of cash acquired | | | (1,750,267 | ) | | | (280,010 | ) | | | (281,731 | ) | Improvements, equipment additions, and construction in progress | | | (72,852 | ) | | | (41,739 | ) | | | (35,097 | ) | Net proceeds from the sale of storage facilities | | | 34,074 | | | | 4,646 | | | | 11,191 | | Net proceeds from the sale of real estate | | | 623 | | | | — | | | | — | | Investment in unconsolidated joint ventures | | | (6,438 | ) | | | (6,151 | ) | | | (28,650 | ) | Property deposits | | | (1,209 | ) | | | (5,435 | ) | | | (706 | ) | | | | | | | | | | | | | | Net cash used in investing activities | | | (1,796,069 | ) | | | (328,689 | ) | | | (334,993 | ) | Financing Activities | | | | | | | | | | | | | Net proceeds from sale of partnership units | | | 948,129 | | | | 225,701 | | | | 112,676 | | Proceeds from line of credit | | | 1,102,000 | | | | 330,000 | | | | 202,000 | | Repayment of line of credit | | | (928,000 | ) | | | (300,000 | ) | | | (202,000 | ) | Proceeds from term notes, net of discount | | | 796,682 | | | | — | | | | 175,000 | | Repayment of term note | | | (150,000 | ) | | | — | | | | — | | Debt issuance costs | | | (15,273 | ) | | | — | | | | (3,001 | ) | Settlement of forward starting interest rate swaps | | | (9,166 | ) | | | — | | | | — | | Distributions to unitholders | | | (156,249 | ) | | | (113,039 | ) | | | (90,035 | ) | Distributions to noncontrolling interest holders | | | (742 | ) | | | (555 | ) | | | (541 | ) | Redemption of operating partnership units | | | — | | | | (1,005 | ) | | | (6,028 | ) | Mortgage principal payments | | | (197 | ) | | | (134 | ) | | | (127 | ) | | | | | | | | | | | | | | Net cash provided by financing activities | | | 1,587,184 | | | | 140,968 | | | | 187,944 | | | | | | | | | | | | | | | Net increase (decrease) in cash | | | 16,665 | | | | (1,523 | ) | | | (981 | ) | Cash at beginning of period | | | 7,020 | | | | 8,543 | | | | 9,524 | | | | | | | | | | | | | | | Cash at end of period | | $ | 23,685 | | | $ | 7,020 | | | $ | 8,543 | | | | | | | | | | | | | | | Supplemental cash flow information | | | | | | | | | | | | | Cash paid for interest, net of interest capitalized | | $ | 39,856 | | | $ | 35,926 | | | $ | 31,764 | | Cash paid for income taxes, net of refunds | | $ | 981 | | | $ | 1,084 | | | $ | 665 | |
See notes to consolidated financial statements.
LIFE STORAGE, INC. AND LIFE STORAGE LP DECEMBER 31, 20162017 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. ORGANIZATION Effective August 15, 2016, the Parent Company changed its name from “Sovran Self Storage, Inc.” to “Life Storage, Inc.” and the Operating Partnership changed its name from “Sovran Acquisition Limited Partnership” to “Life Storage LP”. Also, consistent with these name changes, and in connection with the rebranding of our storage facilities from “Uncle Bob’s Self Storage®” to “Life Storage®”, the name of the general partner of the Operating Partnership has been changed from “Sovran Holdings, Inc.” to “Life Storage Holdings, Inc.” and the name of the Parent Company’s taxable REIT subsidiary changed from “Uncle Bob’s Management, LLC” to “Life Storage Solutions, LLC”.
The Parent Company, which operates as a self-administered and self-managed real estate investment trust (a “REIT”), was formed on April 19, 1995 to own and operate self-storage facilities throughout the United States. On June 26, 1995, the Parent Company commenced operations 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, 2016,2017, we had an ownership interest in, and/or managed 659706 self-storage properties in 2928 states under the namesname Life Storage® and Uncle Bob’s Self Storage®. ®. Among our 659706 self-storage properties are 3998 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings LLC) of which we are a 20% owner, 30 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings II LLC) of which we are a 15% owner, and 26ventures (See Note 11), 42 properties that we manage and have no ownership interest. Approximately 38%interest, and two properties that we lease. During 2017, approximately 23% and 13% of the Company’s revenue iswas derived from stores in the states of Texas and Florida.Florida, respectively. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation: All of the Company’s assets are owned by, and all its operations are conducted through the Operating Partnership. Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and, through its ownership of Holdings and its limited partnership interest, controls the operations of the Operating Partnership, holding a 99.5% ownership interest therein as of December 31, 2016.2017. The remaining ownership interests in the Operating Partnership (the “Units”) are held by certain former owners of assets acquired by the Operating Partnership. 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, and Life Storage Solutions, LLC.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 accounted for using the equity method. Included in the Parent Company’s consolidated balance sheets are noncontrolling redeemable operating partnership unitsOperating Partnership Units and included in the Operating Partnership’s consolidated balance sheets are limited partners’ redeemable capital interest at redemption value. These interests are presented in the “mezzanine” section of the consolidated balance sheets because they do not meet the functional definition of a liability or equity under current accounting literature. These represent the outside ownership interests of the limited partners in the Operating Partnership. At December 31, 2017 and December 31, 2016, there were 217,481 noncontrolling redeemable operating partnershipOperating Partnership Units outstanding (168,866 at December 31, 2015).outstanding. These unitholders are entitled to receive distributions per unit equivalent to the dividends declared per share on the Parent Company’s common stock. The Operating Partnership is obligated to redeem each of these limited partnership Units in the Operating Partnership at the request of the holder thereof for cash equal to the fair market value of a share of the Parent Company’s common stock based on a 10-day average of the daily market price, at the time of such redemption, provided that the Company at its option may elect to acquire any such Unit presented for redemption for one common share or cash. The Company accounts for these noncontrolling redeemable Operating Partnership Units under the provisions of EITF D-98, “Classification and Measurement of Redeemable Securities” which was codified in FASB ASCAccounting Standards Codification (ASC) Topic 480-10-S99. The application of the FASB ASC Topic 480-10-S99 accounting model requires the noncontrolling interest to follow normal noncontrolling interest accounting and then be marked to redemption value at the end of each reporting period if higher (but never adjusted below that normal noncontrolling interest accounting amount). The offset to the adjustment to the carrying amount of the noncontrolling redeemable Operating Partnership Unitsinterests is reflected in the Parent Company’s dividends in excess of net income and in the Operating Partnership’s general partner and limited partners capital balances. Accordingly, in the accompanying consolidated balance sheets, noncontrolling interests are reflected at redemption value at December 31, 20162017 and 2015,2016, equal to the number of noncontrolling interest units outstanding multiplied by the fair market value of the Parent Company’s common stock at that date. Redemption value exceeded the value determined under the Company’s historical basis of accounting at those dates.
The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units: | | | | | | | | | (Dollars in thousands) | | 2016 | | | 2015 | | Beginning balance noncontrolling redeemable Operating Partnership Units | | $ | 18,171 | | | $ | 13,622 | | Redemption of Operating Partnership Units | | | (4,795 | ) | | | (1,005 | ) | Redemption value in excess of carrying value | | | — | | | | 80 | | Issuance of Operating Partnership Units | | | 9,516 | | | | 2,148 | | Net income attributable to noncontrolling interests in Operating Partnership | | | 398 | | | | 553 | | Distributions | | | (742 | ) | | | (555 | ) | Adjustment to redemption value | | | (4,457 | ) | | | 3,328 | | | | | | | | | | | Ending balance noncontrolling redeemable Operating Partnership Units | | $ | 18,091 | | | $ | 18,171 | | | | | | | | | | |
The following is a reconciliation ofUnits and the Operating Partnership’sParnership’s limited partners’ redeemable capital interest:interest for the year ending December 31:
| | | | | | | | | (Dollars in thousands) | | 2016 | | | 2015 | | Beginning balance Limited Partners’ Redeemable Capital Interest | | $ | 18,171 | | | $ | 13,622 | | Redemption of Limited Partners’ Redeemable Capital Interest Units | | | (4,795 | ) | | | (1,005 | ) | Redemption value in excess of carrying value | | | — | | | | 80 | | Issuance of Limited Partners’ Redeemable Capital Interest Units | | | 9,516 | | | | 2,148 | | Net income attributable to Limited Partners’ Redeemable Capital Interest | | | 398 | | | | 553 | | Distributions | | | (742 | ) | | | (555 | ) | Adjustment to redemption value | | | (4,457 | ) | | | 3,328 | | | | | | | | | | | Ending balance Limited Partners’ Redeemable Capital Interest | | $ | 18,091 | | | $ | 18,171 | | | | | | | | | | |
(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. In 2015 the Company issued 23,382 Units with a fair value of $2.1 million to acquire one self-storage property. 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. Operating Partnership Units redeemed in 2016 were redeemed for a total of 41,862 shares of the Parent Company. Cash and Cash Equivalents: The Company 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 allowance 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 $1.0$0.7 million and $0.4$1.0 million at December 31, 2017 and 2016, and 2015, respectively. 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, 2017, 2016, 2015, and 2014,2015, advertising costs were $12.3 million, $9.5 million, $7.3 million, and $6.2$7.3 million, respectively. The Company 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 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 2015, and 2014,2015, $29.5 million $3.0 million, and $7.4$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 buildings and improvements, and five to twenty years for furniture, fixtures and equipment. Estimated useful lives are reevaluated when facts and circumstances indicate that the economic lives of assets do not extend to their currently assigned useful lives. Expenditures for significant renovations or improvements that extend the useful life of assets are capitalized. Depreciation expense was $102.7 million, $87.2 million $55.1 million and $47.7$55.1 million for the years ending December 31, 206,2017, 2016, and 2015, and 2014, respectively. Interest and other costs incurred during the construction period of major expansions are capitalized. Capitalized interest during the years ended December 31, 2017, 2016, and 2015 and 2014 was $0.3 million, $0.1 million annually.and $0.1 million, respectively. Repair and maintenance costs are expensed as incurred.
Whenever events or changes in circumstances indicate that the basiscarrying value of the Company’s property may not be recoverable, the Company’s policy is to complete an assessment of 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. If the sum of the undiscounted cash flows 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. For the years ended December 31, 2017, 2016, 2015 and 2014,2015, no assets have been determined to be impaired under this policy. In general, sales of real estate and 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 assessment, it is determined that it is more likely than not that the fair value of the trade name is less than its carrying value, we proceed to a quantitative test. We did not elect to perform a qualitative assessment in 2016.2017. 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 2016, the year in which the trade name was acquired. 2017.Other Assets: Included in other assets are cash balances held in escrow for encumbered properties, property deposits and the value placed on in-place customer leases at the time of acquisition. Cash held in escrow for encumbered properties at December 31, 2017 and 2016, totaled $292,000 and 2015, totaled $238,000, and $12,000, respectively. Property deposits at December 31, 2017 and 2016 and 2015 were $2.4$0.9 million and $5.9$2.4 million, respectively. In 2016, a decision was made to not proceed with the acquisition of two properties on which the Company had previously made property deposits totaling $1.8 million. As a result, these property deposits were abandoned and are included in write-off of acquired property deposits on the accompanying consolidated statements of operations. No such expenses were incurred in 20152017 or 2014.2015. The Company 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 discloseddescribed in Note 8. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). Investment in Unconsolidated Joint Ventures: The Company’s investment in unconsolidated joint ventures where the Company 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 accounting in the accompanying consolidated financial statements. Under the equity method, the Company’s investment in unconsolidated joint ventures is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings of unconsolidated joint ventures is generally recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated joint ventures. For the purposes of presentation in the statement of cash flows, the Company follows the “look through” approach for classification of distributions from joint ventures. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the joint venture’s sale of assets), in which case it is reported as an investing activity. Accounts Payable and Accrued Liabilities: Accounts payable and accrued liabilities consists primarily of trade payables, accrued interest, and property tax accruals. Income Taxes: The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes its taxable income to its shareholders and complies with certain other requirements. The Company has elected to treat 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 taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.
ForThe Company recorded federal and state income tax benefit of $1.0 million in the yearsyear ended December 31, 2016, 20152017 and 2014, the Company recorded federal and state income tax expense of $0.4 million and $1.3 million during the years ended December 31, 2016 and $0.9 million, respectively.2015, respectively, which are included in general and administrative expenses in the consolidated statements of operations. The 20162017 income tax expensebenefit includes current tax expense of $0.1$1.5 million and deferred tax expensebenefit of $0.3$2.5 million. At December 31, 20162017 and 2015,2016, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of December 31, 20162017 and 2015,2016, the Company had no interest or penalties related to uncertain tax provisions. Net incomeIncome taxes payable at December 31, 2017 and 2016 and the net deferred tax liability of our taxable REIT subsidiary at December 31, 2016 are classified within accounts payable and accrued liabilities in the consolidated balance sheets. Prepaid income taxes at December 31, 2017 and prepaid taxes2016 are classified within prepaid expenses, while the net deferred tax asset of our taxable REIT subsidiary at December 31, 2017 is classified within other assets in the consolidated balance sheets. As of December 31, 2017, the Company’s taxable REIT subsidiary has prepaid taxes of $0.1 million, deferred tax assets of $3.6 million and a deferred tax liability of $1.7 million. As of December 31, 2016, the Company’s taxable REIT subsidiary has prepaid taxes of $0.4 million, deferred tax assets of $1.5 million and a deferred tax liability of $2.2 million. As
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, 2015,2017, will apply to income earned by our taxable REIT subsidiary. As a result, the Company’sdeferred tax assets and deferred tax liabilities of our taxable REIT subsidiary had prepaid taxesare remeasured at December 31, 2017 using the 21% corporate income tax rate. The impact of $0.2 million and a deferred tax liability of $1.2 million.the remeasurement is not material to the Company. Derivative Financial Instruments: The Company accounts for derivatives in accordance with ASC Topic 815 “Derivatives and Hedging”, which requires companies to carry all derivatives on the balance sheet at fair value. The Company determines the fair value of derivatives 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 Company’s use of derivative instruments is limited to cash flow hedges of certain interest rate risks. Recent Accounting Pronouncements: In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the new guidance recognized at the date of initial application. We are currently evaluatingapplication (the modified retrospective transition method). The Company has adopted the alternative methodsstandard using the retrospective transition method as of adoption and the effect of adopting ASU 2014-09 on our financial statements and related disclosures. We are also in the process of assessing which of our operating revenue streams will be impacted by the adoption of the new standard.January 1, 2018. Leases are specifically excluded from the scope of ASU 2014-09, therefore, upon analysis, the Company does not anticipateconcluded that the adoption of the new standard willdid not have any impact on the timing or amounts of the Company’s rental revenue from customers which is a substantial portionrepresents over 90% of the Company’s total operating revenues. TheWe have evaluated the other revenue streams material to the Company intends to make a decision on which method ofand have concluded that the adoption will be elected by the end of the second quarternew standard did not have any material impact on the timing or amounts of 2017. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires a reporting entity to treat a performance target that affects vestingCompany’s material revenue streams and that could be achieved after the requisite service period as a performance condition. ASU 2014-12no cumulative effect adjustment is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstandingrequired as of the beginningdate of initial application. Also, as part of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. TheCompany’s adoption of ASU 2014-12 by2014-09, the Company didhas elected to apply the guidance only to contracts that are not havecompleted contracts at the date of initial application. Further, related to the Company’s management fee revenue stream, the Company has elected to apply a material impact on its consolidated financial statements.
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 310-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern” which is effective for annual periods ending after December 15, 2016 and annual and interim periods thereafter. This ASU requires management to make an assessment for each annual and interim reporting period as to whether there are conditions or events, consideredpractical expedient provided in the aggregate,new standard which allows the Company to recognize revenue in the amount of management fees to which the Company has a right to invoice as that raise substantial doubt aboutamount corresponds directly with the value to the customer of the entity’s abilityperformance completed to continue as a going concern within one year after the date that the financial statements are issued or available to be issued. If management identifies conditions or events that raise substantial doubt about about the Company’s ability to continue as a going concern, certain additional considerations and disclosures are required to be made. The adoption of ASU 2014-15 by the Company did not have a material impact on its consolidated financial statements.
In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This ASU is effective for annual reporting periods beginning after December 15, 2015 including interim periods within that reporting period. ASU 2015-02 amends the current consolidation model specifically as it relates to variable interest entities (“VIE’s”) and provides reporting entities with a revised consolidation analysis procedure. The adoption of ASU 2015-02 by the Company did not have a material impact on its consolidated financial statements.
During April 2015, the FASB issued ASU No. 2015-03, “Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”, which amends the requirements for the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-03 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years, with retrospective application required. Consistent with the guidance in ASU No. 2015-03 there are $3.4 million of debt issuance costs that have been presented as a reduction of term notes in our accompanying consolidated balance sheets at December 31, 2015 that were previously classified in other assets prior to the adoption of ASU No. 2015-03. The implementation of this accounting standards update had no effect on our results of operations or cash flows.
In August 2015, the FASB issued Accounting Standards Update 2015-15, “Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. ASU No. 2015-15 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years. The implementation of this update did not result in any changes to our consolidated financial statements.
In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-16 by the Company did not have a material impact on its consolidated financial statements.date.
In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This guidance revises existing practice related to accounting for leases under Accounting Standards Codification TopicASC 840Leases(ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability 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 December 15, 2018. Early adoption is permitted for all entities. The new leases standard requires a modified retrospective transition approach for all leases existing at, or entered into after,entities, thought the date of initial application, with an optionCompany does not expect to use certain transition relief.adopt ASU 2016-02 early. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In March 2016, the FASB issued ASU 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. The new standard will beASU 2016-06 is effective for us on January 1, 2017.fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2016. The Company has determined that the adoptionimplementation of ASU 2016-06 willthis update did not have a material impact on itsresult 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. The new standard will beASU 2016-07 is effective for us on January 1, 2017.fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2016. The Company has determined that the adoptionimplementation of ASU 2016-07 willthis update did not have a material impact on itsresult in any changes to our consolidated financial statements. In March 2016, the FASB issued 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 classification on the statement of cash flows. The amendments in this update areASU 2016-09 is effective for annual periods beginning after December 15, 2016,fiscal years, and interim periods within those annual periods.fiscal years, beginning after December 15, 2016. The Company has determined thatadopted the adoption ofguidance in ASU 2016-09 willeffective 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 have aresult in any material impact on itschanges 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 Company hasimplementation of this update as of January 1, 2018 did not yet completed its assessment ofhave a material impact on the impact that the adoption of ASU 2016-15 will have on its consolidatedCompany’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.permitted and the Company adopted this update effective January 1, 2017. The adoption of ASU 2017-01 is expected to havehas potential impact on the accounting treatment of properties acquired subsequent to the adoption date.date of adoption. Property acquisitions treated as business combinations under currentprevious guidance may no longer be treated as business combinations subsequent to the adoption of ASU 2017-01. We are inTo the process of evaluating whether theextent that properties that we acquire willdo not meet the definition of a “business” under ASU 2017-01. To the extent they do not meet such definition,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 accounting 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 subject to the guidance in ASU 2017-09 and could potentially be accounted for differently than under the previous guidance concerning such changes. Stock-Based Compensation: The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation - Stock Compensation”. ”. The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.
The Company recorded compensation expense (included in general and administrative expense) of $15,000, $89,000, $210,000, and $223,000,$210,000, respectively, related to stock options and $7.1 million, $7.2 million, $6.3 million, and $4.6$6.3 million, respectively, related to amortization of non-vested stock grants for the years ended December 31, 2017, 2016, 2015 and 2014.2015. The Company 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 fair value of options granted during the yearsyear ended December 31, 2015 and 2014, were $9.90 and $10.04, respectively.was $9.90. There were no options granted during the yearyears ended December 31, 2017 and 2016. To determine expected volatility, the Company uses historical volatility based on daily closing prices of its Common Stock over periods that correlate with the expected terms of the options granted. The risk-free rate is based on the United States Treasury yield curve at the time of grant for the expected life of the options granted. Expected dividends are based on the Company’s history and expectation of dividend payouts. The expected life of stock options is based on the midpoint between the vesting date and the end of the contractual term. The Company recognizes any forfeitures as they occur. During 2017, 2016, 2015 and 2014,2015, the Company issued performance based non-vested stock awards to certain executives. The fair value for the performance based awards in 2017, 2016 2015 and 20142015 was estimated at the time the awards were granted using a Monte Carlo pricing model applying the following weighted-average assumptions: | | | 2016 | | 2015 | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Expected life (years) | | | 3.0 | | | 3.0 | | | 3.0 | | | | 3.0 | | | | 3.0 | | | | 3.0 | | Risk free interest rate | | | 1.53 | % | | 1.33 | % | | 1.18 | % | | | 1.79 | % | | | 1.53 | % | | | 1.33 | % | Expected volatility | | | 19.37 | % | | 18.88 | % | | 18.42 | % | | | 19.92 | % | | | 19.37 | % | | | 18.88 | % | Fair value | | $ | 80.24 | | | $ | 101.43 | | | $ | 46.95 | | | $ | 82.06 | | | $ | 80.24 | | | $ | 101.43 | |
The Monte Carlo pricing model was not used to value any other 2017, 2016, 2015 and 20142015 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. Reclassification: As noted below, certain amounts in the 2014 financial statements have been reclassified to conform with the 2015 and 2016 presentation.
Internet advertising expense, which had been included in the general and administrative expense line in financial statements filed in 2014 and prior years, has been reclassified to property operations and maintenance expense to conform with the current presentation which we implemented in the first quarter of 2015. The Company believes the classification of internet advertising expenses as property operations and maintenance expense is more consistent with industry trends. The amount of internet advertising expense that was reclassified for the year ended December 31, 2014 was $5.6 million.
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 Company 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-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method. The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method. | | | Year Ended December 31, | | | Year Ended December 31, | | (Amounts in thousands, except per share data) | | 2016 | | | 2015 | | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Numerator: | | | | | | | | Numerator: | | | | | | | | | | | | | | Net income attributable to common shareholders | | $ | 85,225 | | | $ | 112,524 | | | $ | 88,531 | | | $ | 96,365 | | | $ | 85,225 | | | $ | 112,524 | | Denominator: | | | | | | | | Denominator: | | | | | | | | | | | | | | Denominator for basic earnings per share - weighted average shares | | | 43,184 | | | | 35,379 | | | | 33,019 | | | | 46,373 | | | | 43,184 | | | | 35,379 | | Effect of Dilutive Securities: | | | | | | | | | | | | | | | | | | | Stock options and non-vested stock | | | 223 | | | | 222 | | | | 172 | | | | 117 | | | | 223 | | | | 222 | | | | | | | | | | | | | Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversion | | | 43,407 | | | | 35,601 | | | | 33,191 | | | | 46,490 | | | | 43,407 | | | | 35,601 | | Basic Earnings per common share attributable to common shareholders | | $ | 1.97 | | | $ | 3.18 | | | $ | 2.68 | | | $ | 2.08 | | | $ | 1.97 | | | $ | 3.18 | | Diluted Earnings per common share attributable to common shareholders | | $ | 1.96 | | | $ | 3.16 | | | $ | 2.67 | | | $ | 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, | | | Year Ended December 31, | | (Amounts in thousands, except per unit data) | | 2016 | | | 2015 | | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Numerator: | | | | | | | | Numerator: | | | | | | | | | | | | | | Net income attributable to common unitholders | | $ | 85,225 | | | $ | 112,524 | | | $ | 88,531 | | | $ | 96,365 | | | $ | 85,225 | | | $ | 112,524 | | Denominator: | | | | | | | | Denominator: | | | | | | | | | | | | | | Denominator for basic earnings per unit - weighted average units | | | 43,184 | | | | 35,379 | | | | 33,019 | | | | 46,373 | | | | 43,184 | | | | 35,379 | | Effect of Dilutive Securities: | | | | | | | | | | | | | | | | | | | Stock options and non-vested stock | | | 223 | | | | 222 | | | | 172 | | | | 117 | | | | 223 | | | | 222 | | | | | | | | | | | | | Denominator for diluted earnings per share - adjusted weighted average units and assumed conversion | | | 43,407 | | | | 35,601 | | | | 33,191 | | | 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 | | $ | 1.97 | | | $ | 3.18 | | | $ | 2.68 | | | $ | 2.08 | | | $ | 1.97 | | | $ | 3.18 | | Diluted Earnings per common unit attributable to common unitholders | | $ | 1.96 | | | $ | 3.16 | | | $ | 2.67 | | | $ | 2.07 | | | $ | 1.96 | | | $ | 3.16 | |
Not included in the effect of dilutive securities above are 13,750 stock options and 133,512 unvested restricted shares for the year ended December 31, 2017; 107,283 unvested restricted shares for the year ended December 31, 2016; and 5,500 stock options and 152,835 unvested restricted shares for the year ended December 31, 2015; and 5,000 stock options and 151,474 unvested restricted shares for the year ended December 31, 2014, because their effect2015. The effects of including these securities would be antidilutive.have been anti-dilutive. 4. INVESTMENT IN STORAGE FACILITIES AND INTANGIBLE ASSETS The following summarizes activity in storage facilities during the years ended December 31, 20162017 and December 31, 2015.2016. | (Dollars in thousands) | | 2016 | | | 2015 | | | 2017 | | | 2016 | | Cost: | | | | | | | | | | | | | Beginning balance | | $ | 2,491,702 | | | $ | 2,177,983 | | | $ | 4,243,308 | | | $ | 2,491,702 | | Acquisition of storage facilities | | | 1,714,029 | | | | 278,572 | | | | 22,638 | | | | 1,714,029 | | Improvements and equipment additions | | | 65,860 | | | | 39,807 | | | | 84,332 | | | | 65,860 | | Net increase in construction in progress | | | 7,525 | | | | 2,239 | | | Net (decrease) increase in construction in progress | | | | (141 | ) | | | 7,525 | | Dispositions | | | (35,808 | ) | | | (6,899 | ) | | | (28,727 | ) | | | (35,808 | ) | | | | | | | | | Ending balance | | $ | 4,243,308 | | | $ | 2,491,702 | | | $ | 4,321,410 | | | $ | 4,243,308 | | | | | | | | | | Accumulated Depreciation: | | | | | | | | | | | | | Beginning balance | | $ | 465,195 | | | $ | 411,701 | | | $ | 535,704 | | | $ | 465,195 | | Additions during the year | | | 87,219 | | | | 55,101 | | | | 102,674 | | | | 87,219 | | Dispositions | | | (16,710 | ) | | | (1,607 | ) | | | (14,064 | ) | | | (16,710 | ) | | | | | | | | | Ending balance | | $ | 535,704 | | | $ | 465,195 | | | $ | 624,314 | | | $ | 535,704 | | | | | | | | | |
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, Solar 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). The merger was funded with the existing cash that was generated primarily from the proceeds from the Company’s May 2016 common stock offering and the 2026 Senior Notes offering, and draws on the Company’s line of credit totaling $482 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, arewere measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.”
The Company acquired 27 facilities during 2015. The fourpurchase price of the two facilities acquired in Connecticut2017 and New York on February 2, 2015 had been leased by the Company since November 1, 2013. The acquisitions of these four stores and three additional stores that were acquired at certificate of occupancy were accounted for as asset acquisitions. The cost of these seven stores, including closing costs, was assigned to their land, building, equipment and improvements components based upon their relative fair values. The assets and liabilities of the other 20 storage facilities acquired in 2015, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.” The purchase price of the 122 facilities acquired in 2016 and the 27 facilities acquired in 2015 has been assigned as follows (as of December 31, 2016 the purchase price assignments relating to the facilities acquired during the second half of 2016 are preliminary):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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (dollars in thousands) | | | | | | | | | | | Consideration paid | | | Acquisition Date Fair Value | | State | | Number of Properties | | | Date of Acquisition | | | Purchase Price | | | Cash Paid | | | Value of Operating Partnership Units Issued | | | Net Other Liabilities Assumed (Assets Acquired) | | | Land | | | Building, Equipment, and Improvements | | | In-Place Customer Leases | | | Closing Costs Expensed | | 2015 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | CT | | | 2 | | | | 2/2/2015 | | | $ | 61,116 | | | $ | 62,377 | | | $ | — | | | $ | (1,261 | ) | | $ | 19,389 | | | $ | 41,727 | | | $ | — | | | $ | — | | NY | | | 2 | | | | 2/2/2015 | | | | 57,900 | | | | 59,103 | | | | — | | | | (1,203 | ) | | | 10,084 | | | | 47,816 | | | | — | | | | — | | IL | | | 1 | | | | 2/5/2015 | | | | 6,800 | | | | 6,652 | | | | — | | | | 148 | | | | 2,579 | | | | 4,066 | | | | 155 | | | | 146 | | IL | | | 1 | | | | 3/9/2015 | | | | 8,690 | | | | 6,466 | | | | 2,148 | | | | 76 | | | | 1,719 | | | | 6,971 | | | | — | | | | — | | FL | | | 1 | | | | 4/1/2015 | | | | 6,290 | | | | 6,236 | | | | — | | | | 54 | | | | 1,793 | | | | 4,382 | | | | 115 | | | | 359 | | TX | | | 1 | | | | 4/16/2015 | | | | 8,800 | | | | 8,713 | | | | — | | | | 87 | | | | 3,864 | | | | 4,777 | | | | 159 | | | | 140 | | FL | | | 1 | | | | 4/21/2015 | | | | 8,750 | | | | 8,687 | | | | — | | | | 63 | | | | 2,118 | | | | 6,501 | | | | 131 | | | | 122 | | FL | | | 4 | | | | 5/1/2015 | | | | 32,465 | | | | 32,279 | | | | — | | | | 186 | | | | 12,184 | | | | 19,672 | | | | 609 | | | | 516 | | AZ | | | 1 | | | | 6/16/2015 | | | | 7,904 | | | | 7,904 | | | | — | | | | — | | | | 852 | | | | 7,052 | | | | — | | | | — | | MA | | | 1 | | | | 6/19/2015 | | | | 10,291 | | | | 10,286 | | | | — | | | | 5 | | | | 2,110 | | | | 8,181 | | | | — | | | | — | | NY | | | 4 | | | | 8/25/2015 | | | | 17,900 | | | | 17,690 | | | | — | | | | 210 | | | | 4,685 | | | | 12,826 | | | | 389 | | | | 409 | | NC | | | 1 | | | | 9/1/2015 | | | | 3,775 | | | | 3,762 | | | | — | | | | 13 | | | | 718 | | | | 2,977 | | | | 80 | | | | 80 | | SC | | | 6 | | | | 9/1/2015 | | | | 44,000 | | | | 43,564 | | | | — | | | | 436 | | | | 17,461 | | | | 25,644 | | | | 895 | | | | 684 | | PA | | | 1 | | | | 12/30/2015 | | | | 6,550 | | | | 6,541 | | | | — | | | | 9 | | | | 1,926 | | | | 4,498 | | | | 126 | | | | 190 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total acquired 2015 | | | 27 | | | | | | | $ | 281,231 | | | $ | 280,260 | | | $ | 2,148 | | | $ | (1,177 | ) | | $ | 81,482 | | | $ | 197,090 | | | $ | 2,659 | | | $ | 2,646 | |
All of the properties acquired were purchased from unrelated third parties. The operating results of the four facilities which had been leased since November 1, 2013 have been included in the Company’s operations since that date. The operating results of the other facilities acquired have been included in the Company’s operations since the respective acquisition dates. The $22.6 million of cash paid for the facilities acquired in 2017 includes $0.5 million of deposits that were paid in 2015 and $0.6 million of deposits that were paid in 2016, when these facilities originally went under contract. The $1,796.9 million of cash paid for the properties acquired during 2016 includes payment for cash acquired of $40.9 million and $5.3 million of deposits that were paid in 2015 when certain of these properties originally went under contract. Of the $280.3 million paid at closing for the properties acquired during 2015, $250,000 represented deposits that were paid in 2014 when certain of these properties originally went under contract. Closing costs totaling $345,000 were incurred and expensed in 2015 related to facilities acquired in 2016 and are reflected in totals for the respective 2016 acquisitions in the chartschart above. 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 Units 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 Operating Partnership Units, the assumption of $1.3 million of other net liabilities and $2.5 million for the settlement of a straight-line rent liability in connection with the acquisition of self-storage facilities. The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the estimated cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.
In-place customer leases are included in other assets on the Company’s consolidated balance sheets at December 31 as follows: | (dollars in thousands) | | 2016 | | | 2015 | | | 2017 | | | 2016 | | In-place customer leases | | $ | 75,611 | | | $ | 22,320 | | | $ | 75,241 | | | $ | 75,611 | | Accumulated amortization | | | (50,782 | ) | | | (21,017 | ) | | | (75,241 | ) | | | (50,782 | ) | | | | | | | | | Net carrying value at December 31, | | $ | 24,829 | | | $ | 1,303 | | | | | | | | | | | Net carrying value at the end of period | | | $ | - | | | $ | 24,829 | |
Amortization expense related to in-place customer leases was $24.8 million, $29.9 million, $3.4 million, and $4.1$3.4 million, for the years ended December 31, 2017, 2016, and 2015, and 2014, respectively. AmortizationNo amortization expense on 2016 acquisitions is expected to be $24.8 million in 2017.2018. As noted above, during 2016,Property Dispositions
During 2017 the Company acquired 122sold two non-strategic properties 119and received net cash proceeds of which were accounted for as business combinations.$16.9 million. The following unaudited pro forma information is basedCompany 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 combined historical financial statementssale of this property has been deferred and will be recognized by the Company and the 119 properties acquired during 2016, and accounted for as business acquisitions, as if the acquisitions had occurred asupon termination of January 1, 2015: | | | | | | | | | (dollars in thousands) | | 2016 | | | 2015 | | Total revenues | | $ | 513,565 | | | $ | 465,614 | | Net income attributable to common shareholders | | $ | 154,522 | | | $ | 54,144 | | Earnings per common share | | | | | | | | | Basic | | $ | 3.34 | | | $ | 1.17 | | Diluted | | $ | 3.33 | | | $ | 1.17 | |
The above pro forma information includes the results of eight stores acquired by LS in 2016 and 17 stores acquired by LS in 2015. These stores therefore were not owned by LS for the entire pro forma periods and results prior to LS ownership are not included in the above pro forma information. The above pro forma information also includes increases in amortization of in-place customer leases totaling $53.4 million in 2015. As noted above, in-place customer leases are amortized over their estimated future benefit period of 12 months. Material, nonrecurring pro forma adjustments directly attributable to the business combinations and included in the above pro forma financial information include reductions to interest expense related to acquisition bridge financing totaling $7.3 million in 2016, reductions to acquisition costs totaling $29.5 million in 2016, and reductions to write-off of acquired property deposits totaling $1.8 million in 2016.
The following table summarizes the revenues and earnings since the acquisition dates that are included in the Company’s 2016 consolidated statement of operations related to the 119 properties acquired and accounted for as business combinations during 2016.
| | | | | (dollars in thousands) | | | | Total revenues | | $ | 68,526 | | Net loss attributable to common shareholders | | $ | (52,814 | ) |
The above net loss attributable to common shareholders was primarily due to amortization of in-place customer leases acquired and the acquisition costs incurred in connection with the 2016 acquisitions.
Property Dispositions
this lease. During 2016 the Company sold eight non-strategic properties with a carrying value of $18.8 million and received net cash proceeds of $34.1 million, resulting in a $15.3 million gain on sale.million. During 2015 the Company sold three non-strategic properties purchased in 2014 and 2015 with a carrying value of $5.1 million and received cash proceeds of $4.6 million, resulting in a $0.5 million loss on sale. During 2014 the Company sold two properties with a carrying value of $5.8 million and received cash proceeds of $11.0 million, resulting in a $5.2 million gain on sale. The following table summarizes the revenues and expenses up to the dates of sale of the 13 properties sold in 2016, 2015 and 2014 that are included in the Company’s consolidated statements of operations for 2016, 2015 and 2014.million.
| | | | | | | | | | | | | (dollars in thousands) | | 2016 | | | 2015 | | | 2014 | | Total revenues | | $ | 2,324 | | | $ | 4,801 | | | $ | 5,782 | | Property operations and maintenance expense | | | (614 | ) | | | (1,401 | ) | | | (1,477 | ) | Real estate tax expense | | | (98 | ) | | | (295 | ) | | | (424 | ) | Depreciation and amortization expense | | | (359 | ) | | | (780 | ) | | | (820 | ) | Gain (loss) on sale of storage facilities | | | 15,270 | | | | (494 | ) | | | 5,176 | | | | | | | | | | | | | | | | | $ | 16,523 | | | $ | 1,831 | | | $ | 8,237 | | | | | | | | | | | | | | |
Change in Signage Useful Life Estimates The change in name of the Company’s storage facilities from Uncle Bob’s Self Storage® to Life Storage® as discussed in Note 1 requires required replacement of signage at all existing storage facilities which are currently included in investment in storage facilities, net on the consolidated balance sheets. The replacement of this signage is beinghas been completed at various times based on market, and is expected to be completed inas of December 31, 2017. As a result of this replacement of signage, the first half of 2017. The Company has reassessed the estimated useful lives of the then existing signage whichin 2016. This useful life reassessment resulted in an increase in depreciation expense of approximately $0.5 million in 2017 and $8.2 million in 2016 as depreciation was accelerated over the new remaining useful lives. The Company estimates that this change will result indoes not estimate any further impact on depreciation expense of approximately $1 million in 2017 as a result of the replacement of this existingthe Uncle Bob’s Self Storage® signage. signage which is now fully depreciated. 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 reduced 2016both basic and diluted earnings per share/unit by approximately $0.09 and approximately $0.19 per share/unit.unit in 2017 and 2016, respectively. 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, 2016 | | | Dec. 31, 2015 | | | Dec. 31, 2017 | | | Dec. 31, 2016 | | Revolving line of credit borrowings | | $ | 253,000 | | | $ | 79,000 | | | $ | 105,000 | | | $ | 253,000 | | Term note due April 26, 2016 | | | — | | | | 150,000 | | | | | | | | | | | | | Term note due June 4, 2020 | | | 325,000 | | | | 325,000 | | | | 100,000 | | | | 325,000 | | Term note due August 5, 2021 | | | 100,000 | | | | 100,000 | | | | 100,000 | | | | 100,000 | | Term note due April 8, 2024 | | | 175,000 | | | | 175,000 | | | | 175,000 | | | | 175,000 | | Senior term note due July 1, 2026 | | | 600,000 | | | | — | | | | 600,000 | | | | 600,000 | | Senior term note due December 15, 2027 | | | | 450,000 | | | | — | | Term note due July 21, 2028 | | | 200,000 | | | | — | | | | 200,000 | | | | 200,000 | | | | | | | | | | Total term note principal balance outstanding | | $ | 1,400,000 | | | $ | 750,000 | | | $ | 1,625,000 | | | $ | 1,400,000 | | Less: unamortized debt issuance costs | | | (9,323 | ) | | | (3,350 | ) | | | (10,962 | ) | | | (9,323 | ) | Less: unamortized senior term note discount | | | (3,152 | ) | | | — | | | | (4,949 | ) | | | (3,152 | ) | | | | | | | | | Term notes payable | | $ | 1,387,525 | | | $ | 746,650 | | | $ | 1,609,089 | | | $ | 1,387,525 | | | | | | | | | |
In January 2016, the Company exercised the expansion feature on its existing amended unsecured credit agreement and increased the revolving credit limit from $300 million to $500 million. The interest rate on the revolving credit facility bears interest at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at December 31, 20162017 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, 2020,2020. In 2017, the Company repaid $225 million under this term note, resulting in $100 million outstanding at December 31, 2017, with the term note bearing interest at LIBOR plus a margin based on the Company’s credit rating (at December 31, 20162017 the margin is 1.15%). The interest rate at December 31, 20162017 on the Company’s line of credit was approximately 1.79% (1.72%2.63% (1.79% at December 31, 2015)2016). At December 31, 2016,2017, there was $247$395 million available on the unsecured line of credit. The revolving line of credit has a maturity date of December 10, 2019. On May 17, 2016,December 7, 2017, the Company entered into twoOperating Partnership issued $450 million in aggregate principal amount of 3.875% unsecured senior unsecured acquisition bridge facilitiesnotes due December 15, 2027 (the “Bridge Facilities”“2027 Senior Notes”) totaling $1,675 million with. The 2027 Senior Notes were issued at a 0.477% discount to par value. Interest on 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 terminated2027 Senior Notes is payable semi-annually on June 29, 2016.15 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, beginning on January 1, 2017.1. The 2026 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $3.3 million and underwriting discount and other offering expenses of $5.5 million, totaled $591.2 million. The indenture under which the 2027 Senior Notes and the 2026 Senior Notes were issued restricts the ability of the Company and its subsidiaries to incur debt unless the Company and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 on all outstanding debt, after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Company and its subsidiaries to incur secured debt unless the Company and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Company and its consolidated subsidiaries. As ofAt December 31, 2016,2017, the Company was in compliance with allsuch 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 the financial covenants under the 2026 Senior Notes.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 July 21, 2028 bearing interest at a fixed rate of 3.67%. The proceeds from this term note were used to repay a portion of the then outstanding balance on the Company’s line of credit. On April 8, 2014, the Company entered into a $175 million term note maturing April 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded. The proceeds from this term note were used to repay the $115 million outstanding on the Company’s line of credit at April 8, 2014, with the excess proceeds used for acquisitions. In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded. The proceeds from this term note were used to fund acquisitions and investments in unconsolidated joint ventures. The Company had maintained a $150 million unsecured term note maturing April 26, 2016 bearing interest at 6.38%. The Company used a draw on the line of credit to pay off the balance of this note on April 26, 2016.
The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At December 31, 2016,2017, the Company was in compliance with its debtsuch covenants. We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at December 31, 20162017, the entire availability on the line of credit could be drawn without violating our debt covenants. The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control. Subsequent to the adoption of ASU 2015-03, deferredDeferred debt issuance costs and the discount on the 2026 Senior Notesoutstanding term notes are both presented as reductions of term notes in the accompanying consolidated balance sheets at December 31, 20162017 and December 31, 2015.2016. Amortization expense related to these deferred debt issuance costs, which exclude costs related to the Bridge Facilities, was $3.0 million, $1.7 million $1.2 million and $0.9$1.2 million for the periods ended December 31, 2017, 2016 2015 and 2014,2015, respectively, and is included in interest expense in the consolidated statements of operations.
6. MORTGAGES PAYABLE AND DEBT MATURITIES Mortgages payable at December 31, 20162017 and 20152016 consist of the following: | | | | | | | | | (dollars in thousands) | | December 31, 2016 | | | December 31, 2015 | | 4.98% mortgage note due January 1, 2021 secured by one self-storage facility with an aggregate net book value of $9.8 million, principal and interest paid monthly (effective interest rate 4.98%) | | $ | 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 4.23%) | | | 4,207 | | | | — | | 5.26% mortgage note due November 1, 2023, secured by one self-storage facility with an aggregate net book value of $8.1 million, principal and interest paid monthly (effective interest rate 5.48%) | | | 4,002 | | | | — | | 5.99% mortgage note due May 1, 2026, secured by one self-storage facility with an aggregate net book value of $4.2 million, principal and interest paid monthly (effective interest rate 6.21%) | | | 1,852 | | | | 1,993 | | | | | | | | | | | Total mortgages payable | | $ | 13,027 | | | $ | 1,993 | | | | | | | | | | |
(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 | |
The table below summarizes the Company’s debt obligations and interest rate derivatives at December 31, 2016.2017. 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 notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 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 Company would realize in a current market exchange. | | | | | Expected Maturity Date Including Discount | | | | | | | | | | Expected Maturity Date Including Discount | | | | | | (dollars in thousands) | | 2017 | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | Thereafter | | | Total | | | Fair Value | | | 2018 | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | Thereafter | | | Total | | | Fair Value | | Line of credit—variable rate LIBOR + 1.10% (1.79% at December 31, 2016) | | | — | | | | — | | | $ | 253,000 | | | | — | | | | — | | | | — | | | $ | 253,000 | | | $ | 253,000 | | | 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% (1.92% at December 31, 2016) | | | — | | | | — | | | | — | | | $ | 325,000 | | | | — | | | | — | | | $ | 325,000 | | | $ | 325,000 | | | 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 | | | $ | 109,379 | | | | — | | | | — | | | | — | | | $ | 100,000 | | | | — | | | | — | | | $ | 100,000 | | | $ | 109,192 | | Term note—fixed rate 4.533% | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 175,000 | | | $ | 175,000 | | | $ | 181,567 | | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 175,000 | | | $ | 175,000 | | | $ | 181,510 | | Term note—fixed rate 3.50% | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 600,000 | | | $ | 600,000 | | | $ | 574,126 | | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 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 | | | $ | 188,284 | | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 200,000 | | | $ | 200,000 | | | $ | 192,447 | | Mortgage note—fixed rate 4.98% | | $ | 51 | | | $ | 53 | | | $ | 56 | | | $ | 58 | | | $ | 2,748 | | | | — | | | $ | 2,966 | | | $ | 2,966 | | | $ | 53 | | | $ | 56 | | | $ | 59 | | | $ | 2,748 | | | | — | | | | — | | | $ | 2,916 | | | $ | 3,007 | | Mortgage note—fixed rate 4.065% | | $ | 88 | | | $ | 92 | | | $ | 96 | | | $ | 99 | | | $ | 104 | | | $ | 3,728 | | | $ | 4,207 | | | $ | 4,210 | | | $ | 92 | | | $ | 96 | | | $ | 99 | | | $ | 104 | | | $ | 108 | | | $ | 3,620 | | | $ | 4,119 | | | $ | 4,112 | | Mortgage note—fixed rate 5.26% | | $ | 63 | | | $ | 67 | | | $ | 71 | | | $ | 74 | | | $ | 78 | | | $ | 3,649 | | | $ | 4,002 | | | $ | 4,281 | | | $ | 67 | | | $ | 71 | | | $ | 74 | | | $ | 78 | | | $ | 83 | | | $ | 3,566 | | | $ | 3,939 | | | $ | 4,169 | | Mortgage note—fixed rate 5.99% | | $ | 151 | | | $ | 160 | | | $ | 170 | | | $ | 181 | | | $ | 192 | | | $ | 998 | | | $ | 1,852 | | | $ | 1,997 | | | $ | 160 | | | $ | 170 | | | $ | 181 | | | $ | 192 | | | $ | 203 | | | $ | 794 | | | $ | 1,700 | | | $ | 1,822 | | Interest rate derivatives – liability | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 13,015 | | | Total | | | $ | 372 | | | $ | 105,393 | | | $ | 100,413 | | | $ | 103,122 | | | $ | 394 | | | $ | 1,432,980 | | | $ | 1,742,674 | | | | | |
7. DERIVATIVE FINANCIAL INSTRUMENTS 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 Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and to receive in return an amount equal to a variable rate of interest times the same notional amount. The notional amounts are not exchanged. Forward starting interest rate swaps arehave also been used by the Company to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.
The interestInterest 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 sheets at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive Loss (“AOCL”). These deferred gains and losses are recognized in interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was de minimis in 2017, 2016, 2015, and 2014.2015.
The Company has one interest rate swap agreementsagreement in effect at December 31, 20162017 as detailed below to effectively convert a total of $325$100 million of variable-rate debt to fixed-rate debt. | | | | | | | | | | | | | | | | | Notional Amount | | Effective Date | | | Expiration Date | | | Fixed
Rate Paid | | | Floating Rate
Received | | $125 Million
| | | 9/1/2011 | | | | 8/1/18 | | | | 2.3700 | % | | | 1 month LIBOR | | $100 Million | | 9/4/13 | 12/30/11 | 9/4/18 | | | 12/29/171.3710 | % | | | 1.6125 | % | | | 1 month LIBOR | | $100 Million
| | | 9/4/13 | | | | 9/4/18 | | | | 1.3710 | % | | | 1 month LIBOR | | $100 Million
| | | 12/29/17 | | | | 11/29/19 | | | | 3.9680 | % | | | 1 month LIBOR | | $125 Million
| | | 8/1/18 | | | | 6/1/20 | | | | 4.1930 | % | | | 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 accumulated other comprehensive lossAOCL 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. Approximately $0.5 million of interest expense was recorded in 2016 as a result of this amortization. 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 statementsstatement of cash flows. The remaining interest rate swap agreements areagreement is the only derivative instruments,instrument, as defined by FASB ASC Topic 815 “Derivatives and Hedging”, ”, held by the Company.Company at December 31, 2017. During 2017, 2016, 2015, and 2014,2015, the net reclassification from AOCL to interest expense was $12.3 million, $4.6 million, $5.2 million, and $5.5$5.2 million, respectively, based on payments made under the swap agreements. Based on current interest rates, the Company estimates that payments received under the interest rate swaps willin 2018 would be approximately $4.0 million in 2017.de minimis. Payments made or received under the interest rate swap agreements will be reclassified to interest expense as settlements occur. The fair value of the swap agreements, including accrued interest, was an asset of $0.2 million at December 31, 2017 and a liability of $13.0 million at December 31, 2016 and an asset of $550,000 and a liability of $15.3 million at December 31, 2015.2016. The Company’s agreementsagreement with its interest rate swap counterparties containcounterparty contains provisions pursuant to which the Company could be declared in default of its derivative obligationsobligation, 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 rate swap agreementsagreement also incorporateincorporates other loan covenants of the Company. Failure to comply with the loan covenant provisions would result in the Company being in default on the interest rate swap agreements.agreement. As of December 31, 2016,2017, the Company had not posted any collateral related to the interest rate swap agreements. If the Company had breached any of these provisions as of December 31, 2016, it could have been required to settle its obligations under the agreements at their net termination value of $13.0 million. The changes in AOCL for the years ended December 31, 2017, 2016, 2015 and 20142015 are summarized as follows: | (dollars in thousands) | | Jan. 1, 2016 to Dec. 31, 2016 | | | Jan. 1, 2015 to Dec. 31, 2015 | | | Jan. 1, 2014 to Dec. 31, 2014 | | | 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 | | $ | (14,415 | ) | | $ | (13,005 | ) | | $ | (6,402 | ) | | $ | (21,475 | ) | | $ | (14,415 | ) | | $ | (13,005 | ) | Realized loss reclassified from accumulated other comprehensive loss to interest expense | | | 5,044 | | | | 5,229 | | | | 5,506 | | | | 13,185 | | | | 5,044 | | | | 5,229 | | Unrealized loss from changes in the fair value of the effective portion of the interest rate swaps | | | (12,104 | ) | | | (6,639 | ) | | | (12,109 | ) | | | | | | | | | | | | | Loss included in other comprehensive loss | | | (7,060 | ) | | | (1,410 | ) | | | (6,603 | ) | | | | | | | | | | | | | 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 | | $ | (21,475 | ) | | $ | (14,415 | ) | | $ | (13,005 | ) | | $ | (7,587 | ) | | $ | (21,475 | ) | | $ | (14,415 | ) | | | | | | | | | | | |
8. FAIR VALUE MEASUREMENTS The Company applies the provisions of ASC Topic 820 “Fair Value Measurements and Disclosures” in determining the fair value of its financial and nonfinancial assets and liabilities. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Refer to Note 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, 20162017 and December 31, 20152016 (dollars in thousands): | | | | | | | | | | Asset (Liability) | | | Level 1 | | | Level 2 | | | Level 3 | | | | 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 | ) | | | — | | | $ | (13,015 | ) | | | — | | | $ | (13,015 | ) | | | — | | December 31, 2015 | | | | | | | | | | Interest rate swaps | | | 550 | | | | — | | | | 550 | | | | — | | | Interest rate swaps | | | (15,343 | ) | | | — | | | | (15,343 | ) | | | — | | |
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 122 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 BASED COMPENSATION The Company established the 2015 Award and Option Plan (the “2015 Plan”) which replaced the expired 2005 Award and Option Plan for the purpose of attracting and retaining the Company’s executive officers and other key employees, such plans being the “Plans”. There were 561,000 shares authorized for issuance under the 2015 Plan. Options 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, 2016,2017, options for 77,20676,106 shares were outstanding under the Plans and options for 435,570345,383 shares of common stock were available for future issuance. The Company may also grant other stock-based awards under the 2015 Plan, including restricted stock and performance-based awards. The Company also established the 2009 Outside Directors’ Stock Option and Award Plan (the “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. Prior to 2016, the Non-employee Plan provided 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 2016, 1,8642017, 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, 2016,2017, options for 18,500 common shares and 16,9843,145 of non-vested shares were outstanding under the Non-employee Plans. As of December 31, 20162017 options for 71,01667,871 shares of common stock were available for future issuance.
A summary of the Company’s stock option activity and related information for the years ended December 31 follows: | | | 2016 | | | 2015 | | | 2014 | | | 2017 | | | 2016 | | | 2015 | | | | Options | | | Weighted average exercise price | | | Options | | Weighted average exercise price | | | Options | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | Outstanding at beginning of year: | | | 95,706 | | | $ | 52.08 | | | | 115,606 | | | $ | 48.54 | | | | 130,568 | | | $ | 44.82 | | | | 95,706 | | | $ | 52.08 | | | | 95,706 | | | $ | 52.08 | | | | 115,606 | | | $ | 48.54 | | Granted | | | — | | | | — | | | | 11,000 | | | 91.58 | | | | 14,000 | | | 76.01 | | | | — | | | | — | | | | — | | | | — | | | | 11,000 | | | | 91.58 | | Exercised | | | — | | | | — | | | | (30,900 | ) | | 52.87 | | | | (27,462 | ) | | 45.34 | | | | (1,100 | ) | | | 39.00 | | | | — | | | | — | | | | (30,900 | ) | | | 52.87 | | Adjusted / (forfeited) | | | — | | | | — | | | | — | | | | — | | | | (1,500 | ) | | 40.07 | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | | | | | | | | | | | | | | | | | | | Outstanding at end of year | | | 95,706 | | | $ | 52.08 | | | | 95,706 | | | $ | 52.08 | | | | 115,606 | | | $ | 48.54 | | | | 94,606 | | | $ | 52.24 | | | | 95,706 | | | $ | 52.08 | | | | 95,706 | | | $ | 52.08 | | Exercisable at end of year | | | 92,706 | | | $ | 51.31 | | | | 63,815 | | | $ | 48.73 | | | | 67,316 | | | $ | 49.18 | | | | 93,106 | | | $ | 51.85 | | | | 92,706 | | | $ | 51.31 | | | | 63,815 | | | $ | 48.73 | |
A summary of the Company’s stock options outstanding at December 31, 20162017 follows: | | | Outstanding | | | Exercisable | | | Outstanding | | | Exercisable | | Exercise Price Range | | Options | | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | | Options | | | Weighted average exercise price | | $30.00 – 39.99 | | | 1,100 | | | $ | 35.73 | | | | 1,100 | | | $ | 35.73 | | | | 500 | | | $ | 35.73 | | | | 500 | | | $ | 35.73 | | $40.00 – 69.99 | | | 77,106 | | | $ | 44.67 | | | | 77,106 | | | $ | 44.67 | | | | 76,606 | | | $ | 44.68 | | | | 76,606 | | | $ | 44.68 | | $70.00 – 91.58 | | | 17,500 | | | $ | 85.78 | | | | 14,500 | | | $ | 87.82 | | | | 17,500 | | | $ | 85.78 | | | | 16,000 | | | $ | 86.71 | | | | | | | | | | | | | | | | Total | | | 95,706 | | | $ | 52.08 | | | | 92,706 | | | $ | 51.31 | | | | 94,606 | | | $ | 52.24 | | | | 93,106 | | | $ | 51.85 | | Intrinsic value of outstanding stock options at December 31, 2016 | | | | | | | | $ | 3,244,663 | | | Intrinsic value of exercisable stock options at December 31, 2016 | | | | | | | | $ | 3,216,643 | | | 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 | |
The intrinsic value of stock options exercised during the years ended December 31, 2017, 2016, and 2015 was $0.1 million, $0, and 2014 was $0, $1.4 million, and $0.9 million, respectively. Proceeds from stock options exercised during the years ended December 31, 2017, 2016, 2015, and 20142015 amounted to $0.1 million, $0, $1.6 million, and $1.2$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, 2016,2017, or the price on the date of exercise for those exercised during the year. As of December 31, 2016,2017, there was approximately $22,000$7,000 of total unrecognized compensation cost related to stock option compensation arrangements granted under our stock award plans. That cost is expected to be recognized over a weighted-average period of approximately 1.50.5 years. The weighted average remaining contractual life of all options is 2.91.9 years, and for exercisable options is 2.81.8 years. Non-vested stock The Company has also issued shares of non-vested stock to employees which vest over one 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, 2016,2017, the fair market value of the non-vested stock on the date of grant ranged from $82.52$74.36 to $117.27.$89.07. During 2016, 23,4052017, 51,276 shares of non-vested stock were issued to employees and directors with an aggregate fair value of $2.1$4.4 million. The Company charges the fair value ratably to expense over the vesting period. The Company uses the average of the high and low price of its common stock on the date the award is granted as the fair value for non-vested stock awards that do not have a market condition.
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: | | | 2016 | | | 2015 | | | 2014 | | | 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 | | | 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: | | | 305,520 | | | $ | 59.09 | | | | 310,463 | | | $ | 51.93 | | | | 293,196 | | | $ | 49.20 | | | | 258,163 | | | $ | 58.89 | | | | 305,520 | | | $ | 59.09 | | | | 310,463 | | | $ | 51.93 | | Granted | | | 23,405 | | | 89.30 | | | | 64,665 | | | 94.74 | | | | 92,665 | | | 60.87 | | | | 51,276 | | | | 85.17 | | | | 23,405 | | | | 89.30 | | | | 64,665 | | | | 94.74 | | Vested | | | (70,762 | ) | | 69.82 | | | | (69,187 | ) | | 60.28 | | | | (72,876 | ) | | 53.11 | | | | (96,615 | ) | | | 58.95 | | | | (70,762 | ) | | | 69.82 | | | | (69,187 | ) | | | 60.28 | | Forfeited | | | — | | | | — | | | | (421 | ) | | 76.07 | | | | (2,522 | ) | | 28.66 | | | | (42,015 | ) | | | 38.53 | | | | — | | | | — | | | | (421 | ) | | | 76.07 | | | | | | | | | | | | | | | | | | | | | | Unvested at end of year | | | 258,163 | | | $ | 58.89 | | | | 305,520 | | | $ | 59.09 | | | | 310,463 | | | $ | 51.93 | | | | 170,809 | | | $ | 71.75 | | | | 258,163 | | | $ | 58.89 | | | | 305,520 | | | $ | 59.09 | |
Compensation expense of $7.1 million, $7.2 million, $6.3 million, and $4.6$6.3 million was recognized for the vested portion of non-vested stock grants in 2017, 2016, 2015, and 2014,2015, respectively. The fair value of non-vested stock that vested during 2017, 2016, and 2015 and 2014 was $5.7 million, $4.9 million, $4.2 million, and $3.9$4.2 million, respectively. The total unrecognized compensation cost related to non-vested stock was $9.6$8.2 million at December 31, 2016,2017, and the remaining weighted-average period over which this expense will be recognized was 3.44.2 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 yearthree-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 Company granted and issued a total of 60,654 performance shares under the Plan during 2014 which are included in the table above. The performance-based awards granted are based upon the Company’s performance over a three yearthree-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 2016,2017, compensation expense of $2.6 million (included in the $7.2$7.1 million discussed above) was recognized for performance awards granted in 20142017 and prior. The total unrecognized compensation cost related to non-vested performance awards was $3.9$3.0 million at December 31, 20162017 and the weighted-average period over which this expense will be recognized is 1.61.9 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 20,51321,540 units outstanding at December 31, 2016.2017. Fees that were earned and credited to Directors’ accounts are recorded as compensation expense whichand totaled $0.1 million annually in each of 2016 2015, and 2014.2015. No fees were elected to be deferred by any non-employee Directors in 2017. 10. RETIREMENT PLAN Employees of the Company qualifying under certain age and service requirements are eligible to be a participant in a 401(k) Plan. In 2015, and 2014, the Company contributed to the Plan at the rate of 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 Company was approximately $703,000, $505,000, $276,000, and $192,000$276,000 for the years ended December 31, 2017, 2016, and 2015, and 2014, respectively.
11. INVESTMENT IN JOINT VENTURES A summary of the Company’s unconsolidated joint ventures is as follows: 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 20% ownershipvariable interest entity (VIE) in Sovran HHF Storage Holdings LLC (“Sovran HHF”),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 that owns 39 self-storage properties thatagreements, none of the joint ventures are managedconsolidated by the Company. Due to the Company’s significant influence over the operations of each of the joint ventures, all joint ventures are accounted for under the equity method of accounting. The carrying valuevalues of the Company’s investment at December 31, 2016 and 2015 was $43.8 million and $44.6 million, respectively. In 2014, the Company contributed $28.6 millioninvestments in cash to the joint venture as its share of capital required to fund property acquisitions. In 2015 the Company contributed an additional $0.4 million in cash to the joint venture as its share of capital required to fund certain capital expenditures and property taxes related to 2014 acquisitions. As of December 31, 2016, 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, which is assessed for other-than-temporary impairment on a periodic basis. No other-than-temporary impairments have been recorded on this investment.
The Company has a 15% ownership interest in Sovran HHF Storage Holdings II LLC (“Sovran HHF II”), a joint venture that owns 30 self-storage properties thatventures are managed by the Company. The carrying value of the Company’s investment at December 31, 2016 and 2015 was $13.5 million and $13.9 million, respectively. In 2015 the Company contributed $1.7 million in cash to the joint venture as its share of capital required to fund the payoff of a mortgage note. The carrying value of this investment is assessed for other-than-temporary impairment on a periodic basis and no such impairments have been recorded on this investment.any of the Company’s investments in joint ventures.
AsThe Company earns management and/or call center fees ranging from 6% to 7% of joint venture gross revenues as manager of Sovran HHF, and Sovran HHF II, 191 III, SERS, RAP and Merrick. These fees, which are included in other operating income in the Company earns a management and call center feeconsolidated statements of 7% of gross revenues whichoperations, totaled $4.9$6.6 million, $4.9 million and $3.9$4.9 million forin 2017, 2016 2015, and 2014,2015 respectively. The Company will also received an acquisition feeearn management fees upon commencement of $0.4 million for securing purchases for Sovran HHFthe operation of storage facilities owned by Urban Box, McDonald, and Sovran HHF II in 2014. N32.
The Company’s share of Sovran HHF and Sovran HHF II’sthe unconsolidated joint ventures’ income for 2016, 2015, and 2014 was $3.4 million, $3.2 million, and $1.9 million, respectively.(loss) is as follows: The Company has a 49% ownership interest in Iskalo Office Holdings, LLC, which owns the building that houses the Company’s headquarters and other tenants. The carrying value of the Company’s investment is a liability of $0.4 million and $0.5 million at December 31, 2016 and 2015, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. For the years ended December 31, 2016, 2015, and 2014, the Company’s share of Iskalo Office Holdings, LLC’s income was $214,000, $189,000, and $107,000, respectively. The Company paid rent to Iskalo Office Holdings, LLC of $1.2 million, $1.1 million, and $1.0 million in 2016, 2015, and 2014, respectively.
(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 | |
The Company holds an 85% equity interest in Urban Box Coralway Storage, LLC (Urban Box), a joint venture with an unrelated third party. Urban Box was formed in 2015 and is currently developing a self-storage property in Florida. During 2015, the Company contributed $4.0 million to Urban Box as its share of capital to develop the property, which primarily consists of the acquisition of land in 2015. In 2016, Urban Box entered into a non-recourse mortgage loan in order to finance future development costs. The Company and the other joint venture member have participation rights which require the agreement of both members in order to implement the activities of Urban Box which are most significant to its economic performance. Accordingly, the investment is accounted for by the Company using the equity method.
The Company will perform property management services for Urban Box in exchange for a management fee based on 6% of property revenues. There were no management fees in 2016 or 2015.
The Company holds a 5% equity interest in SNL/Orix 1200 McDonald Ave., LLC (“McDonald”), a joint venture with an unrelated third party. The joint venture for McDonald was executed in 2016 and is currently developing a self-storage property 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. In accordance with the terms of the McDonald joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the investment is accounted for by the Company using the equity method.
The Company will perform property management services for McDonald in exchange for a management fee based on property revenues. There were no management fees in 2016.
The Company holds a 5% equity interest in SNL Orix Merrick, LLC (“Merrick”), a joint venture with an unrelated third party. The joint venture for Merrick was executed in 2016 and is currently developing a self-storage property 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 will enter into a non-recourse mortgage loan in order to finance the future development costs. In accordance with the terms of the Merrick joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the investment is accounted for by the Company using the equity method.
The Company will perform property management services for Merrick in exchange for a management fee based on property revenues. There were no management fees in 2016.
The Company holds a 20% ownership interest in 191 III Holdings LLC (“191 III”), a joint venture that was formed in 2016 to acquire self-storage properties that are managed by the Company. During 2016, the Company contributed $0.7 million to 191 III as its share of capital to fund future acquisitions. In accordance with the terms of the 191 III joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the investment is accounted for by the Company using the equity method.
The Company will perform property management and call center services for 191 III in exchange for an aggregate fee based on 7% of the gross revenues of the joint venture. There were no management fees in 2016.
A summary of the combined unconsolidated joint ventures’ financial statements as of and for the year ended December 31, 20162017 is as follows: | (dollars in thousands) | | | | | | | | Balance Sheet Data: | | | | | | | Investment in storage facilities, net | | $ | 534,719 | | | $ | 1,075,101 | | Investment in office building | | | 5,008 | | | Investment in office building, net | | | | 4,810 | | Other assets | | | 17,440 | | | | 16,622 | | | | | | | Total Assets | | $ | 557,167 | | | $ | 1,096,533 | | | | | | | Due to the Company | | $ | 1,223 | | | $ | 1,397 | | Mortgages payable | | | 220,456 | | | | 459,028 | | Other liabilities | | | 7,394 | | | | 10,721 | | | | | | | Total Liabilities | | | 229,073 | | | $ | 471,146 | | Unaffiliated partners’ equity | | | 262,944 | | | | 492,332 | | Company equity | | | 65,150 | | | | 133,055 | | | | | | | Total Partners’ Equity | | | 328,094 | | | | 625,387 | | | | | | | Total Liabilities and Partners’ Equity | | $ | 557,167 | | | $ | 1,096,533 | | | | | | | Income Statement Data: | | | | Income Statement Data: | | | | | | Total revenues | | $ | 74,034 | | | $ | 96,301 | | Property operating expenses | | | (23,879 | ) | | | (31,008 | ) | Administrative, management and call center fees | | | (5,389 | ) | | | (7,668 | ) | Depreciation and amortization of customer list | | | (13,946 | ) | | | (21,165 | ) | Amortization of financing fees | | | (354 | ) | | | (810 | ) | Income tax expense | | | (232 | ) | | | (252 | ) | Interest expense | | | (10,258 | ) | | | (14,571 | ) | | | | | | Net income | | $ | 19,976 | | | $ | 20,827 | | | | | | |
The Company does not guarantee the debt of Sovran HHF, Sovran HHF II, Iskalo Office Holdings, LLC, Urban Box, McDonald, Merrick, or 191 III.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 Sovran HHF, Sovran HHF II, Iskalo Office Holdings, LLC, Urban Box, McDonald, Merrick, and 191 IIIunconsolidated joint ventures for the three years ended December 31, 20162017 are as follows: | | | Year ended December 31, | | | Year ended December 31, | | (dollars in thousands) | | 2016 | | 2015 | | 2014 | | | 2017 | | | 2016 | | | 2015 | | Statement of Operations | | | | | | | | Operating activities | | | | | | | | | | | | | | Other operating income (management fees and acquisition fee income) | | $ | 4,891 | | | $ | 4,889 | | | $ | 4,231 | | | $ | 8,090 | | | $ | 4,891 | | | $ | 4,889 | | General and administrative expenses (corporate office rent) | | 1,214 | | | 1,053 | | | 1,023 | | | | 1,192 | | | | 1,214 | | | | 1,053 | | Equity in income of joint ventures | | 3,665 | | | 3,405 | | | 2,086 | | | | 3,314 | | | | 3,665 | | | | 3,405 | | Distributions from unconsolidated joint ventures | | 5,207 | | | 4,821 | | | 3,123 | | | | 7,055 | | | | 5,207 | | | | 4,821 | | (Advances to) receipts from joint ventures | | (294 | ) | | (346 | ) | | 590 | | | Advances to joint ventures | | | | (174 | ) | | | (294 | ) | | | (346 | ) | Investing activities | | | | | | | | | | | | | | | | | | | Investment in unconsolidated joint ventures | | (6,438 | ) | | (6,151 | ) | | (28,650 | ) | | | (69,911 | ) | | | (6,438 | ) | | | (6,151 | ) |
12. SHAREHOLDERS’ EQUITY On March 3, 2015, the Company completed the public offering of 1,380,000 shares of its common stock at $90.40 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $119.5 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness then outstanding on the Company’s unsecured line of credit. 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. The Company used the net proceeds from the offering to repay a portion of the indebtedness then outstanding on the Company’s unsecured line of credit. 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. The Company initially used the net proceeds from the offering to repay the indebtedness then outstanding on the Company’s unsecured line of credit. The proceeds from this offering and the proceeds from the 2026 Senior Notes (see Note 5) were used, along with draws on the Company’s revolving line of credit, to fund the purchase of LS on July 15, 2016 (see Note 4). OnUntil May 12, 2014,2017, the Company entered intohad maintained a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC, (“Wells Fargo”), Jefferies LLC (“Jefferies”Jeffries”), SunTrust Robinson Humphrey, Inc. (“SunTrust”), Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC, (“BB&T”), pursuant to which the Company maycould sell from time to time up to $225 million in aggregate offering price of shares of the Company’s common stock. Actual sales under theThe Equity Program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell, and issue shares of common stock under the Equity Program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the Equity Program.expired in May 2017.
During 2017 and 2016, the Company did not issue any shares of common stock under the Equity Program. As of December 31, 2016, the Company had $59.3 million available for issuance under the Equity Program which expires in May 2017. During 2015, the Company issued 949,911 shares of common stock under the Equity Program at a weighted average issue price of $96.80 per share, generating net proceeds of $90.6 million after deducting $1.1 million of sales commissions paid to Jefferies, Piper, and HSBC, as well as other expenses of $0.2 million. The Company used On August 2, 2017, the proceeds fromCompany’s Board of Directors authorized the equity programsrepurchase of up to fund a portion$200 million of the acquisition of 27 storage facilities. During 2014,Company’s outstanding common shares (“Buyback Program”). The Buyback Program allows the Company issued 924,403to purchase shares of its common stock in accordance with applicable securities laws on the open market, through privately negotiated transactions, or through other methods of acquiring shares. The Buyback Program may be suspended or discontinued at any time. During 2017, the Company repurchased 112,554 of the Company’s outstanding common shares for $8.2 million under the EquityBuyback Program, atresulting in a weighted average issuepurchase price of $79.77$73.16 per share, generating net proceeds of $72.8 million after deducting $0.9 million of sales commissions paid to Piper, HSBC and BB&T. During the three months ended March 31, 2014, the Company issued 359,102 shares of common stock under a previous equity program at a weighted average issue price of $74.32 per share, generating net proceeds of $26.4 million after deducting $0.3 million of sales commissions payable to SunTrust. In addition to sales commissions, the Company incurred expenses of $0.2 million in connection with these equity programs during 2014. The Company used the proceeds from the equity programs to fund a portion of the acquisition of 33 storage facilities.share.
In 2013, the Company implemented a Dividend Reinvestment Plan. The Company issued 199,809, 133,666 and 151,246 shares under the plan in 2017, 2016, and 2015, respectively. On August 2, 2017, the Company’s Board of Directors suspended the Dividend Reinvestment Plan.
13. SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED) The following is a summary of quarterly results of Life Storage, Inc. operations for the years ended December 31, 20162017 and 20152016 (dollars in thousands, except per share data): | | | 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 | | | | | | 2015 Quarter Ended | | | 2017 Quarter Ended | | | | Mar. 31 | | | Jun. 30 | | | Sept. 30 | | | Dec. 31 | | | Mar. 31 | | | Jun. 30 | | | Sept. 30 | | | Dec. 31 | | Operating revenue | | $ | 85,408 | | | $ | 90,726 | | | $ | 95,428 | | | $ | 95,040 | | | $ | 128,320 | | | $ | 132,784 | | | $ | 135,568 | | | $ | 133,078 | | Net income | | | 22,557 | | | | 28,676 | | | | 31,661 | | | | 30,183 | | | | 20,525 | | | | 19,432 | | | | 35,667 | | | | 21,185 | | Net income attributable to common shareholders | | | 22,451 | | | | 28,532 | | | | 31,504 | | | | 30,037 | | | | 20,429 | | | | 19,355 | | | | 35,496 | | | | 21,085 | | Net income per share attributable to common shareholders | | | | | | | | | | | | | | | | | | | | | | | | | Basic | | $ | 0.65 | | | $ | 0.81 | | | $ | 0.88 | | | $ | 0.83 | | | $ | 0.44 | | | $ | 0.42 | | | $ | 0.76 | | | $ | 0.45 | | Diluted | | $ | 0.65 | | | $ | 0.80 | | | $ | 0.88 | | | $ | 0.83 | | | $ | 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, 20162017 and 20152016 (dollars in thousands, except per shareunit data): | | | 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 unitholders | | | 28,339 | | | | 43,456 | | | | (4,738 | ) | | | 18,168 | | | Net income (loss) per unit attributable to common unitholders | | | | | | | | | | Basic | | $ | 0.74 | | | $ | 1.04 | | | $ | (0.10 | ) | | $ | 0.39 | | | Diluted | | $ | 0.73 | | | $ | 1.03 | | | $ | (0.10 | ) | | $ | 0.39 | | | | | | 2015 Quarter Ended | | | 2017 Quarter Ended | | | | Mar. 31 | | | Jun. 30 | | | Sept. 30 | | | Dec. 31 | | | Mar. 31 | | | Jun. 30 | | | Sept. 30 | | | Dec. 31 | | Operating revenue | | $ | 85,408 | | | $ | 90,726 | | | $ | 95,428 | | | $ | 95,040 | | | $ | 128,320 | | | $ | 132,784 | | | $ | 135,568 | | | $ | 133,078 | | Net income | | | 22,557 | | | | 28,676 | | | | 31,661 | | | | 30,183 | | | | 20,525 | | | | 19,432 | | | | 35,667 | | | | 21,185 | | Net income attributable to common unitholders | | | 22,451 | | | | 28,532 | | | | 31,504 | | | | 30,037 | | | | 20,429 | | | | 19,355 | | | | 35,496 | | | | 21,085 | | Net income per unit attributable to common unitholders | | | | | | | | | | | | | | | | | | | | | | | | | Basic | | $ | 0.65 | | | $ | 0.81 | | | $ | 0.88 | | | $ | 0.83 | | | $ | 0.44 | | | $ | 0.42 | | | $ | 0.76 | | | $ | 0.45 | | Diluted | | $ | 0.65 | | | $ | 0.80 | | | $ | 0.88 | | | $ | 0.83 | | | $ | 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 | | | 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. signage and buildings identified for replacement at certain of the Company’s self-storage facilities. See note 65 for financing transactions entered into in 2017 and 2016.
14. COMMITMENTS AND CONTINGENCIES The Company’s current practice is to conduct environmental investigations in connection with property acquisitions. At this time, the Company is not aware of any environmental contamination of any of its facilities that individually or in the aggregate would be material to the Company’s overall business, financial condition, or results of operations. Future minimum lease payments on a building lease, and 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: | | | | | 2017 | | $ | 2,432 | | 2018 | | | 2,332 | | 2019 | | | 2,227 | | 2020 | | | 2,278 | | 2021 | | | 2,288 | | Thereafter | | | 13,431 | | | | | | | Total | | $ | 24,988 | |
At December 31, 2016, the Company was under contract to acquire five self-storage facilities for cash consideration of approximately $67.0 million. One of the properties was acquired in February 2017 from an unrelated party for $9.8 million. The Company has not yet determined the assignment of the purchase price of this facility to the individual assets acquired. This acquisition was funded with a draw on the Company’s revolving line of credit. The following is a summary of the properties under contract at December 31, 2016 (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 | |
| | | | | | | | | | | | | State | | No. of Properties | | | Contract Amount | | | Acquisition Date | | Illinois* | | | 1 | | | $ | 9,800 | | | | Feb. 2017 | | North Carolina* | | | 1 | | | | 12,425 | | | | | | Texas* | | | 3 | | | | 44,800 | | | | | | | | | | | | | | | | | | | | | | 5 | | | $ | 67,025 | | | | | |
* | Properties purchased or expected to be purchased upon completion of construction. |
The purchase of the remaining facilities by the Company is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.
At December 31, 2016, 191 III was under contract to acquire five self-storage facilities for cash consideration of $109.5 million. Four of these facilities were acquired by 191 III in January 2017. The Company’s cash contribution to 191 III for the purchase of the four facilities was approximately $15.0 million. 191 III is under contract to purchase the remaining facility for $32.3 million of which the company is committed to contribute $6.5 million. The purchase of this remaining facility by 191 III is subject to customary conditions to closing, and there is no assurance that this facility will be acquired. At December 31, 2016,2017, the Company has signed contracts in place with third party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $11.6$32.8 million under these contracts in 2017.2018.
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 the New Jersey Truth in Customer Contract, Warranty and Notice Act, the New Jersey Consumer Fraud Act and the New Jersey Insurance Producer Licensing Act.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 claim thatmemorandum 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 aggregate settlement amount of $8.0 million ($6.0 million after considering income tax impact) has been recorded as a liability in the Company’s insurance program violates New Jersey consumer protection laws.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 Company intendssettlement is subject to vigorously defendfinal approval by the action, and the possibility of any adverse outcome cannot be determined at this time.court, a decision which is expected in 2018. 15. SUBSEQUENT EVENTS On January 4, 2017,3, 2018, the Company declared a quarterly dividend of $0.95$1.00 per common share. The dividend was paid on January 26, 20172018 to shareholders of record on January 17, 2017.16, 2018. The total dividend paid amounted to $44.1$46.5 million. In January 2017, the Company executed a joint venture agreement, Review Avenue Partners, LLC (“RAP”), with an unrelated third party. The Company holds a 40% interest in RAP and contributed $12.4 million of common capital to RAP on January 4, 2017. RAP is currently operating a self-storage property in New York and has entered into a non-recourse mortgage loan to finance a portion of the cost of the facility. The Company will perform property management services for RAP in exchange for a management fee based on property revenues.
Item 9. | Changes in and Disagreements With AccountantsAccountants on Accounting and Financial Disclosure |
None. Item 9A. | Controls and Procedures |
Controls and Procedures (Parent Company) 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 the 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 the Parent Company’s management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, the Parent Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Parent Company’s disclosure controls and procedures were effective at December 31, 2016.2017. There have not been changes in the Parent Company’s internal controls or in other factors that could significantly affect these controls during the quarter ended December 31, 2016.2017. Management’s Report on Life Storage, Inc. Internal Control Over Financial Reporting Management of Life Storage, Inc. (the “REIT”“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, 2016.2017. The REIT’sParent 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. The REIT’sParent 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 REIT;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 REITParent Company are being made only in accordance with authorizations of management and directors of the REIT;Parent Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the REIT’sParent Company’s assets that could have a material effect on the financial statements. The REIT’sParent Company’s management performed an assessment of the effectiveness of the REIT’sParent Company’s internal control over financial reporting as of December 31, 20162017 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 REIT’sParent Company’s internal control over financial reporting was effective as of December 31, 20162017 based on the criteria in Internal Control-Integrated Framework issued by COSO. The effectiveness of the REIT’sParent Company’s internal control over financial reporting as of December 31, 20162017 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 TheTo the Shareholders and the Board of Directors and Shareholders of Life Storage, Inc.
Opinion on Internal Control over Financial Reporting We have audited Life Storage, Inc.’s internal control over financial reporting as of December 31, 2016,2017, 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). In our opinion, Life Storage, Inc.’s (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 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 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. In our opinion, Life Storage, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Life Storage, Inc. as of December 31, 2016 and 2015, and 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, 2016 of Life Storage, Inc. and our report dated February 27, 2017 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP Buffalo, New York February 27, 20172018
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, 2016.2017. 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, 2016.2017. Management’s Report on Life Storage LP Internal Control Over Financial Reporting Management of Life Storage LP (the “Partnership”“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, 2016.2017. 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, 20162017 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, 20162017 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, 20162017 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 | | Officer Chief Financial Officer |
Report of Independent Registered Public Accounting Firm TheTo the Partners and the Board of Directors and Partners 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, 2016,2017, 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, Life Storage LP’sLP (the Operating Partnership) 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 Operating Partnership as of December 31, 2017 and 2016, 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 schedule and our report dated February 27, 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 company’sOperating 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 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. In our opinion, Life Storage LP maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on the COSO criteria.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Life Storage LP as of December 31, 2016 and 2015, 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, 2016 of Life Storage LP and our report dated February 27, 2017 expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP Buffalo, New York February 27, 20172018
Item 9B. | OtherOther Information |
None.
Part III Item 10. | Directors, Executive Officers and Corporate Governance |
The information contained in the Parent Company’s Proxy Statement for the 20172018 Annual Meeting of Shareholders to be filed with the SEC within 120 days of the fiscal year ended December 31, 20162017 (“20172018 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 Company has adopted a code of ethics that applies to all of its directors, officers, and employees. The Company has made the Code of Ethics available on its website at http://www.lifestorage.com. Item 11. | Executive Compensation |
The information required is incorporated by reference to “Executive Compensation” and “Director Compensation” in the 20172018 Proxy Statement and is incorporated herein by reference. 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 20172018 Proxy Statement and is incorporated herein by reference. Item 13. | Certain Relationships and Related Transactions, and Director Independence |
The information required herein is incorporated by reference to “Certain Transactions” and “Election of Directors—Director Independence” in the 20172018 Proxy Statement and is incorporated herein by reference. Item 14. | Principal Accountant Fees and Services |
The information required herein is incorporated by reference to “Appointment of Independent Registered Public Accounting Firm” in the 20172018 Proxy Statement and is incorporated herein by reference.
Part IV Item 15. | Exhibits, Financial Statement Schedules |
| (a) | Documents filed as part of this Annual Report on Form 10-K: |
1. | | | | | 1. | | The following consolidated financial statements of Life Storage, Inc. are included in Item 8. |
| (i) | | | | (i) | | Consolidated Balance Sheets as of December 31, 20162017 and 2015.2016; |
| (ii) | | | | (ii) | | Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 2015, and 2014.2015; |
| (iii) | | | | (iii) | | Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 2015, and 2014.2015; |
| (iv) | | | | (iv) | | Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2017, 2016 2015, and 2014.2015; |
| (v) | | | | (v) | | Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 2015, and 20142015; and |
| (vi) | | | | (vi) | | Notes to Consolidated Financial Statements. |
The following consolidated financial statements of Life Storage LP are included in Item 8. | (i) | | | | | | | | The following consolidated financial statements of Life Storage LP are included in Item 8. | | | | | | (i) | | Consolidated Balance Sheets as of December 31, 20162017 and 2015.2016; |
| (ii) | | | | (ii) | | Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 2015, and 2014.2015; |
| (iii) | | | | (iii) | | Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 2015, and 2014.2015; |
| (iv) | | | | (iv) | | Consolidated Statements of Partners’ Capital for the Years Ended December 31, 2017, 2016 2015, and 2014.2015;. |
| (v) | | | | (v) | | Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 2015, and 20142015; and |
| (vi) | | | | (vi) | | Notes to Consolidated Financial Statements. |
| | 2. | | The following financial statement Schedule as of the period ended December 31, 20162017 is included in this Annual Report on Form 10-K. Schedule III Real Estate and Accumulated Depreciation at December 31, 2016.
|
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.
3.Exhibits The exhibits required to be filed as part of this Annual Report on Form 10-K have been included as follows: 3.1* | | | 3.1 | | Amended and Restated Articles of Incorporation of the Parent Company (incorporated by reference to Exhibit 3.1 (a) to the Parent Company’s Registration Statement on Form S-11 (File No. 33-91422) filed June 19, 1995).Company. | | | 3.2 | | Articles Supplementary to the Amended and Restated Articles of Incorporation of the Parent Company classifying and designating the Series A Junior Participating Cumulative Preferred Stock (incorporated by reference to Exhibit 3.1 to the Parent Company’s Form 8-A filed December 3, 1996). | | | 3.3 | | Articles Supplementary to the Amended and Restated Articles of Incorporation of the Parent Company classifying and designating the 9.85% Series B Cumulative Redeemable Preferred Stock (incorporated by reference to Exhibit 1.6 to the Parent Company’s Form 8-A filed July 29, 1999). | | | 3.4 | | Articles Supplementary to the Amended and Restated Articles of Incorporation of the Parent Company classifying and designating the 8.375% Series C Convertible Cumulative Preferred Stock (incorporated by reference to Exhibit 4.1 to the Parent Company’s Current Report on Form 8-K filed July 12, 2002). | | | 3.5 | | Articles Supplementary to the Amended and Restated Articles of Incorporation of the Parent Company reclassifying shares of Series B Cumulative Redeemable Preferred Stock into Preferred Stock. (incorporated by reference to Exhibit 3.1 to the Parent Company’s Current Report on Form 8-K filed May 31, 2011). | | | 3.6 | | Articles of Amendment of the Parent Company (incorporated by reference to Exhibit 3.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed August 11, 2016). | | | 3.7 | | Bylaws, as amended, of the Parent Company (incorporated by reference to Exhibit 3.2 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed August 11, 2016). | | | 3.8 | | Amendment to Bylaws (incorporated by reference to Exhibit 3.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed May 19, 2017). | | | 3.9 | | Amended and Restated Certificate of Limited Partnership (incorporated by reference to Exhibit 3.3 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed August 11, 2016). | | | | 3.9 | | 3.10 | | Agreement of Limited Partnership of the Operating Partnership (incorporated by reference to Exhibit 3.1 on Form 10 filed April 22, 1998). |
| | | | | 3.10 3.11 | | Amendments to the Agreement of Limited Partnership of the Operating Partnership dated July 30, 1999 and July 3, 2002 (incorporated by reference to Exhibit 10.13 to the Parent Company’s Annual Report on Form 10-K filed February 27, 2009). | 3.12 | | 3.11 | | Amendment to Agreement of Limited Partnership of the Operating Partnership (incorporated by reference to Exhibit 3.4 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed August 11, 2016). | | | 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 | | Base Indenture, dated as of June 20, 2016, among the Company, the Operating Partnership and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed June 20, 2016). | | | 4.3 | | First Supplemental Indenture, dated as of June 20, 2016, among the Parent Company, the Operating Partnership and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.2 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed June 20, 2016). | | | 4.4 | | Form of Note representing the Notes (incorporated by reference to Exhibit 4.3 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed June 20, 2016). | | | 4.5 | | Form of Guarantee (included in Exhibit 4.4). | | | | 10.1*+ 4.6 | | Second Supplemental Indenture, dated as of December 7, 2017, among the Parent Company, the Operating Partnership and Wells Fargo Bank, National Association (incorporated by reference to Exhibit 4.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed December 7, 2017). | | | | 4.7 | | Form of Note representing the Notes (incorporated by reference to Exhibit 4.2 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed December 7, 2017). | | | | 4.8 | | Form of Guarantee (included in Exhibit 4.7). | | | 10.1+ | | 2015 Award and Option Plan, as amended.amended (incorporated by reference to Exhibit 10.1 to the Parent Company and the Operating Partnership’s Annual Report on Form 10-K filed February 27, 2017). | | | 10.2+ | | 2005 Award and Option Plan, as amended (incorporated by reference to Exhibit 10.1 to Parent Company’s Report on Form 10-K filed February 28, 2012). |
| | 10.3+ | | 10.3+ | | Employment Agreement between the Parent Company, the Operating Partnership, and Robert J. Attea (incorporated by reference to Exhibit 10.3 to the Parent Company’s Annual Report on Form 10-K filed February 27, 2009). | | | 10.4+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership and Robert J. Attea (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed January 21, 2015). | | | 10.5*+10.5+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership and Robert J Attea.Attea (incorporated by reference to Exhibit 10.5 to the Parent Company and the Operating Partnership’s Annual Report on Form 10-K filed February 27, 2017). | | | 10.6+ | | Employment Agreement between the Parent Company, the Operating Partnership, and Kenneth F. Myszka (incorporated by reference to Exhibit 10.4 to the Parent Company’s Annual Report on Form 10-K filed February 27, 2009). | | | 10.7+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership, and Kenneth F. Myszka (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed January 21, 2015). | | | 10.8*+10.8+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership and Kenneth J. Myszka.Myszka (incorporated by reference to Exhibit 10.8 to the Parent Company and the Operating Partnership’s Annual Report on Form 10-K filed February 27, 2017). | | | 10.9+ | | Employment Agreement between the Parent Company, the Operating Partnership, and David L. Rogers (incorporated by reference to Exhibit 10.5 to the Parent Company’s Annual Report on Form 10-K filed February 27, 2009). | | | 10.10+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership and David L. Rogers (incorporated by reference to Exhibit 10.3 to the Parent Company’s Current Report on Form 8-K filed January 21, 2015). |
| | | | | | 10.11*+ | | 10.11+ | | Amendment to Employment Agreement between the Parent Company, the Operating Partnership and David L. Rogers.Rogers (incorporated by reference to Exhibit 10.11 to the Parent Company and the Operating Partnership’s Annual Report on Form 10-K filed February 27, 2017). | | | 10.12+ | | Form of restricted stock grant pursuant to the 2005 Award and Option Plan (incorporated by reference to Exhibit 10.6 to the Parent Company’s Report on Form 10-K filed February 28, 2012). | | | 10.13+ | | Form of stock option grant pursuant to 2005 Award and Option Plan (incorporated by reference to Exhibit 10.7 to the Parent Company’s Report on Form 10-K filed February 28, 2012). | | | 10.14+ | | Form of Long Term Incentive Restricted Stock Award Notice pursuant to the 2005 Award and Option Plan (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed December 19, 2013). | | | 10.15+ | | Form of Performance-Based Vesting Restricted Stock Award Notice pursuant to the 2005 Award and Option Plan (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed December 19, 2013). | | | 10.16+ | | Deferred Compensation Plan for Directors (incorporated by reference to the Parent Company’s Schedule 14A Proxy Statement filed April 8, 2015). | | | 10.1710.15 | | Amended Indemnification Agreements with members of the Board of Directors and(incorporated by reference to Exhibit 10.35 to the Parent Company’s Current Report on Form 8-K filed July 20, 2006). | 10.16 | | Amended Indemnification Agreements with Executive Officers (incorporated by reference to Exhibit 10.35 and 10.36 to the Parent Company’s Current Report on Form 8-K filed July 20, 2006, SEC File Number 001-13820, Film Number 06971617)2006). | | | 10.1810.17 | | Sixth Amended and Restated Revolving Credit and Term Loan Agreement dated as of December 10, 2014 among the Parent Company, the Operating Partnership, Wells Fargo Bank, National Association, Manufacturers and Traders Trust Company and certain other lenders a party thereto or which may become a party thereto (collectively, the “Lenders”), Manufacturers and Traders Trust Company, as administrative agent for itself and the other Lenders, Wells Fargo Bank, National Association, as syndication agent, and U.S. Bank National Association, HSBC Bank USA, National Association, PNC Bank, National Association, and SunTrust Bank as co-documentation agents, for themselves and the other Lenders (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed December 15, 2014). | | | 10.1910.18 | | Agreement Regarding Revolving Credit Commitment Increases andFirst Amendment to Credit Agreement dated January 4, 2016 among the Parent Company, the Operating Partnership, Manufacturers & Traders Trust Company, as Administrative Agent, and various other financial institutions (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed January 4, 2016). | | | 10.2010.19* | | Amendments to Sixth Amended and Restated Revolving Credit and Term Loan Agreement. | | | 10.20 | | Note Purchase Agreement dated as of August 5, 2011 among the Parent Company, the Operating Partnership and the institutions named in Schedule A thereto as purchasers of $100 million, 5.54% Senior Guaranteed Notes, Series D due August 5, 2021 (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed August 8, 2011). | | | 10.21 | | Note Purchase Agreement dated as of April 8, 2014 among the Parent Company, the Operating Partnership and the institutions named in Schedule A thereto as purchasers of $175 million, 4.533% Senior Guaranteed Notes, Series E due April 8, 2024 (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed April 9, 2014). | | | 10.22 | | Amendment No. 2 to Note Purchase Agreement (2011) dated June 29, 2016 by and among the Parent Company, and the Operating Partnership and the Required Holders (incorporated by reference to Exhibit 10.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed July 6, 2016). |
10.23 | | Amendment No. 2 to Note Purchase Agreement (2014) dated June 29, 2016 by and among the Parent Company and the Operating Partnership and the Required Holders (incorporated by reference to Exhibit 10.2 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed July 6, 2016). | | | | 10.24 | | 10.24* | | Amendments to Note Purchase Agreement (2011). | | | 10.25* | | Amendments to Note Purchase Agreement (2014). | | | 10.26 | | Note Purchase Agreement dated as of July 21, 2016 among the Parent Company and the Operating Partnership and the institutions named in Schedule A thereto as purchasers (incorporated by reference to Exhibit 10.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed July 26, 2016). | | | 10.2510.27* | | Equity DistributionAmendment to Note Purchase Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.) and Wells Fargo Securities, LLC, as agent (incorporated by reference to Exhibit 1.1 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014)(2016). | | | 10.2610.28+ | | Equity Distribution Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.), and Jefferies LLC, as agent (incorporated by reference to Exhibit 1.2 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014). | | | 10.27 | | Equity Distribution Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.), and SunTrust Robinson Humphrey, as agent (incorporated by reference to Exhibit 1.3 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014). | | | 10.28 | | Equity Distribution Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.), and Piper Jaffray & Co., as agent (incorporated by reference to Exhibit 1.4 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014). | | | 10.29 | | Equity Distribution Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.), and HSBC Securities (USA) Inc., as agent (incorporated by reference to Exhibit 1.5 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014). | | | 10.30 | | Equity Distribution Agreement dated as of May 12, 2014 by and among the Parent Company, the Operating Partnership, Sovran Holdings, Inc. (n/k/a Life Storage Holdings, Inc.), and BB&T Capital Markets, a division of BB&T Securities, LLC, as agent (incorporated by reference to Exhibit 1.6 to the Parent Company’s Current Report on Form 8-K filed May 12, 2014). | | | 10.31+ | | 2009 Outside Directors Stock Option and Award Plan, as amended (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed April 6, 2016). | | | 10.32+10.29+ | | Outside Director Fee Schedule (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed April 6, 2016). | | | 10.33+10.30+ | | Annual Incentive Compensation Plan for Executive Officers (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed February 21, 2012). | | | 10.34+10.31+ | | Amended and Restated Employment Agreement between the Parent Company, the Operating Partnership and Andrew J. Gregoire amended and restated effective Januarydated November 1, 20092017 (incorporated by reference to Exhibit 10.110.5 to the Parent Company’s CurrentCompany and the Operating Partnership’s Quarterly Report on Form 8-K10-Q filed February 14, 2012)November 3, 2017). |
| | | | | 10.35+10.32+ | | Employment Agreement between the Parent Company, the Operating Partnership and Paul Powell amended and restated effective January 1, 2009 (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed February 14, 2012). | | | 10.36+10.33+ | | Separation Agreement between the Parent Company, the Operating Partnership and Paul Powell dated November 1, 2017(incorporated by reference to Exhibit 10.3 to the Parent Company and the Operating Partnership’s Quarterly Report on Form 10-Q filed November 3, 2017). | | | 10.34+ | | Amended and Restated Employment Agreement between the Parent Company, the Operating Partnership and Edward F. Killeen amendeddated November 1, 2017(incorporated by reference to Exhibit 10.6 to the Parent Company and restated effective Januarythe Operating Partnership’s Quarterly Report on Form 10-Q filed November 3, 2017). | | | 10.35+ | | Employment Agreement between the Parent Company, the Operating Partnership and Joseph Saffire dated November 1, 20092017 (incorporated by reference to Exhibit 10.310.1 to the Parent Company’s CurrentCompany and the Operating Partnership’s Quarterly Report on Form 8-K10-Q filed February 14, 2012)November 3, 2017). | | | | 10.37 | | 10.36+ | | Form of Long Term Incentive Restricted Stock Award Notice (incorporated by reference to Exhibit 10.2 to the Parent Company and the Operating Partnership’s Quarterly Report on Form 10-Q filed November 3, 2017). | | | 10.37 | | Indemnification Agreement dated July 16, 2012 between the Parent Company, the Operating Partnership and Stephen R. Rusmisel, a director of the Company (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed July 17, 2012). | | | 10.38 | | Indemnification Agreement dated January 30, 2015 between the Parent Company, the Operating Partnership and Arthur L. Havener, Jr., a director of the Parent Company (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed February 3, 2015). | | | 10.39 | | Indemnification Agreement dated January 30, 2015 between the Parent Company, the Operating Partnership and Mark G. Barberio, a director of the Parent Company (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed February 3, 2015). | | | 10.40+10.40 | | Indemnification Agreement dated as of November 1, 2017, by and among the Parent Company, the Operating Partnership and Carol Hansell, a director of the Parent Company (incorporated by reference to Exhibit 10.4 to the Parent Company and the Operating Partnership’s Quarterly Report on Form 10-Q filed November 3, 2017). | | | 10.41+ | | Form of Long Term Incentive Restricted Stock Award Notice pursuant to 2005 Award and Option Plan (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed December 29, 2014). | | | 10.41+10.42+ | | Form of Performance-Based Vesting Restricted Stock Award Notice pursuant to 2005 Award and Option Plan (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed December 29, 2014). | | | 10.42+10.43+ | | Form of Long Term Incentive Restricted Stock Award Notice pursuant to 2015 Award and Option Plan (incorporated by reference to Exhibit 10.1 to the Parent Company’s Current Report on Form 8-K filed December 22, 2015). | | | 10.43+10.44+ | | Form of Performance-Based Award Notice pursuant to 2015 Award and Option Plan (incorporated by reference to Exhibit 10.2 to the Parent Company’s Current Report on Form 8-K filed December 22, 2015). | | |
10.4410.45+ | | Form of Long Term Incentive Restricted Stock Award Notice (incorporated by reference to Exhibit 10.1 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed December 28, 2016). | | | 10.4510.46+ | | Form of Performance-Based Award Notice (incorporated by reference to Exhibit 10.2 to the Parent Company and the Operating Partnership’s Current Report on Form 8-K filed December 28, 2016). | | | 10.4610.47 | | Agreement and Plan of Merger, by and among Life Storage, L.P.,LifeStorage, LP, the Operating Partnership, Solar Lunar Sub, LLC, and Fortis Advisors LLC, as Sellers’ Representative dated as of May 18, 2016 (incorporated by reference to Exhibit 2.1 to the Parent Company’s Current Report on Form 8-K filed May 19, 2016). | 10.48+ | | Form of Long Term Incentive Restricted Stock Award Notice (incorporated by reference to Exhibit 10.1 to the Parent Company and Operating Partnership’s Current Report on Form 8-K filed February 27, 2017). | 12.1*10.49+ | | Form of Performance-Based Award Notice (incorporated by reference to Exhibit 10.2 to the Parent Company and Operating Partnership’s Current Report on Form 8-K filed February 27, 2017). | 10.50+ | | Form of Long Term Incentive Restricted Stock Award Notice (incorporated by reference to Exhibit 10.1 to the Parent Company and Operating Partnership’s Current Report on Form 8-K filed January 4, 2018). | 10.51+ | | Form of Performance-Based Award Notice (incorporated by reference to Exhibit 10.2 to the Parent Company and Operating Partnership’s Current Report on Form 8-K filed January 4, 2018). | | | 12.1* | | Statement Re: Computation of Earnings to Fixed Charges of Life Storage, Inc. and Life Storage LP | | | 21.1* | | Subsidiaries of the Company. | | | 23.1* | | Consent of Independent Registered Public Accounting Firm | | | 23.2* | | Consent of Independent Registered Public Accounting Firm | | | 24.1* | | Powers of Attorney (included on signature pages). | | | 31.1* | | Certification of Chief Executive Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. |
| | | | | | 31.2* | | 31.2* | | Certification of Chief Financial Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | | | 31.3* | | Certification of Chief Executive Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | | | 31.4* | | Certification of Chief Financial Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | | | 31.3*32.1* | | Certification of Chief Executive Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | | | 31.4* | | Certification of Chief Financial Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. | | | 32.1* | | Certification of Chief Executive Officer and Chief Financial Officer of Life Storage, Inc. Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | | 32.2* | | Certification of Chief Executive Officer and Chief Financial Officer of Life Storage Inc.LP Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | | | 101* | | The following financial statements from the Life Storage, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016,2017, formatted in XBRL, as follows: (i) Consolidated Balance Sheets at December 31, 20162017 and 2015; 2016; (ii) Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 2015, and 2014; 2015; (iii) Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 2015, and 2014. 2015; (iv) Consolidated Statements of Shareholders’ Equity for Years Ended December 31, 2017, 2016 2015, and 2014; 2015; (v) Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 2015, and 2014;2015; and (vi) Notes to Consolidated Financial Statements | | | | | The following financial statements from the Life Storage LP.’sLP’s Annual Report on Form 10-K for the year ended December 31, 2016,2017, formatted in XBRL, as follows: (i) Consolidated Balance Sheets at December 31, 20162017 and 2015; 2016; (ii) Consolidated Statements of Operations for Years Ended December 31, 2017, 2016 2015, and 2014; 2015; (iii) Consolidated Statements of Comprehensive Income for Years Ended December 31, 2017, 2016 2015, and 2014. 2015; (iv) Consolidated Statements of Partners’ Capital for Years Ended December 31, 2017, 2016 2015, and 2014; 2015; (v) Consolidated Statements of Cash Flows for Years Ended December 31, 2017, 2016 2015, and 2014;2015; and | | |
| | (vi) Notes to Consolidated Financial Statements | | | * | | Filed herewith. | | | + | | Management contract or compensatory plan or arrangement. | |
Item 16. | Form 10-K Summary | | | | | Not applicable. |
Not applicable.
SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | | | | | | | February 27, 20172018 | | | | LIFE STORAGE, INC. | | | | | | | | | By: | | /s/ Andrew J. Gregoire | | | | | | | Andrew J. Gregoire Chief Financial Officer (Principal Accounting Officer) | | | | | February 27, 20172018 | | | | | | 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 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 | | | | Executive Chairmanand Life Storage Holdings, Inc., general partner of Life Storage LP
| | | | | | | | /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 Financial and Accounting | | February 27, 2018 | Andrew J. Gregoire | | Officer) of Life Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | | February 27, 2017 | | | | |
| | | | | /s/ Kenneth F. Myszka Kenneth F. MyszkaCharles E. Lannon
| | | | President and Director of Life Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | | February 27, 20172018 | | | | | /s/ David L. Rogers
David L. Rogers
| | | | Chief Executive Officer (Principal Executive Officer) of Life Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | | February 27, 2017 | | | | | /s/ Andrew J. Gregoire
Andrew J. Gregoire
| | | | Chief Financial Officer (Principal Financial and Accounting Officer) of Life Storage, Inc. and Life Storage Holdings, Inc., general partner of Life Storage LP | | February 27, 2017 | | | | | /s/ Charles E. Lannon
Charles E. Lannon | | | | | | | | | | /s/ Stephen R. Rusmisel | | Director of Life Storage, Inc. | | February 27, 20172018 | | | | | /s/ Stephen R. Rusmisel
Stephen R. Rusmisel | | | | Director of Life Storage, Inc. | | February 27, 2017 | | | | |
| | | | | /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, 20172018 | | | | | /s/ Mark. G. Barberio
Mark G. Barberio | | | | | /s/ Carol Hansell | | Director of Life Storage, Inc. | | February 27, 20172018 |
Carol Hansell
Life Storage, Inc. Schedule III Combined Real Estate and Accumulated Depreciation (in thousands) December 31, 20162017 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | 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 | | | | Encum | | | | Building, Equipment and | | Building, Equipment and | | | | Building, Equipment and | | | | Accum. | | Date of | | Date | | in latest income statement | | | | | | | | | | | 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 completed | | | ST | | brance | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | is computed | Charleston | | SC | | | | $ | 416 | | | $ | 1,516 | | | $ | 2,350 | | | $ | 416 | | | $ | 3,866 | | | $ | 4,282 | | | $ | 1,585 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,696 | | | 397 | | | 3,120 | | | 3,517 | | | 1,293 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 3,508 | | | 747 | | | 4,171 | | | 4,918 | | | 1,256 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,531 | | | 239 | | | 3,641 | | | 3,880 | | | 1,329 | | | 1980 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 3,808 | | | 1,036 | | | 5,132 | | | 6,168 | | | 1,403 | | | 1987 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,063 | | | 779 | | | 2,180 | | | 2,959 | | | 1,211 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,287 | | | 483 | | | 4,039 | | | 4,522 | | | 1,799 | | | 1984 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,080 | | | 224 | | | 1,888 | | | 2,112 | | | 940 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 3,477 | | | 497 | | | 4,934 | | | 5,431 | | | 1,946 | | | 1981 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 661 | | | 395 | | | 2,065 | | | 2,460 | | | 1,120 | | | 1981 | | 6/26/1995 | | | 5 to 40 years | | | NY | | | | | 395 | | | | 1,404 | | | | (141 | ) | | | 395 | | | | 1,263 | | | | 1,658 | | | | 731 | | | 1981 | | 6/26/1995 | | 5 to 40 years | Jacksonville | | FL | | | | 152 | | | 728 | | | 3,898 | | | 687 | | | 4,091 | | | 4,778 | | | 1,119 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 777 | | | 268 | | | 2,025 | | | 2,293 | | | 1,020 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 854 | | | 363 | | | 2,533 | | | 2,896 | | | 1,282 | | | 1980 | | 6/26/1995 | | | 5 to 40 years | | | MA | | | | | 363 | | | | 1,679 | | | | 885 | | | | 363 | | | | 2,564 | | | | 2,927 | | | | 1,341 | | | 1980 | | 6/26/1995 | | 5 to 40 years | Rochester | | NY | | | | 230 | | | 847 | | | 2,323 | | | 234 | | | 3,166 | | | 3,400 | | | 862 | | | 1980 | | 6/26/1995 | | | 5 to 40 years | | | NY | | | | | 230 | | | | 847 | | | | 2,322 | | | | 234 | | | | 3,165 | | | | 3,399 | | | | 939 | | | 1980 | | 6/26/1995 | | 5 to 40 years | Boston | | MA | | | | 680 | | | 1,616 | | | 874 | | | 680 | | | 2,490 | | | 3,170 | | | 1,199 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 4,937 | | | 1,445 | | | 5,639 | | | 7,084 | | | 2,298 | | | 1981 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 3,209 | | | 444 | | | 4,822 | | | 5,266 | | | 1,719 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,446 | | | 649 | | | 3,775 | | | 4,424 | | | 1,806 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 3,971 | | | 387 | | | 5,373 | | | 5,760 | | | 1,452 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 972 | | | 844 | | | 2,993 | | | 3,837 | | | 1,515 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 684 | | | 303 | | | 1,786 | | | 2,089 | | | 899 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | GA | | | | | 302 | | | | 1,103 | | | | 698 | | | | 303 | | | | 1,800 | | | | 2,103 | | | | 950 | | | 1988 | | 6/26/1995 | | 5 to 40 years | Buffalo | | NY | | | | 315 | | | 745 | | | 4,039 | | | 517 | | | 4,582 | | | 5,099 | | | 1,307 | | | 1984 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 861 | | | 321 | | | 2,011 | | | 2,332 | | | 1,029 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 924 | | | 374 | | | 2,242 | | | 2,616 | | | 1,168 | | | 1987 | | 6/26/1995 | | | 5 to 40 years | | | SC | | | | | 361 | | | | 1,331 | | | | 917 | | | | 374 | | | | 2,235 | | | | 2,609 | | | | 1,203 | | | 1987 | | 6/26/1995 | | 5 to 40 years | Columbia | | SC | | | | 189 | | | 719 | | | 1,192 | | | 189 | | | 1,911 | | | 2,100 | | | 975 | | | 1989 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,097 | | | 488 | | | 3,285 | | | 3,773 | | | 1,169 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,323 | | | 602 | | | 3,730 | | | 4,332 | | | 1,511 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 813 | | | 513 | | | 2,743 | | | 3,256 | | | 1,483 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | FL | | | | | 513 | | | | 1,930 | | | | 856 | | | | 513 | | | | 2,786 | | | | 3,299 | | | | 1,536 | | | 1988 | | 6/26/1995 | | 5 to 40 years | Sharon | | PA | | | | 194 | | | 912 | | | 572 | | | 194 | | | 1,484 | | | 1,678 | | | 776 | | | 1975 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,233 | | | 1,503 | | | 4,852 | | | 6,355 | | | 2,253 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 502 | | | 398 | | | 1,537 | | | 1,935 | | | 851 | | | 1985 | | 6/26/1995 | | | 5 to 40 years | | | FL | | | | | 398 | | | | 1,035 | | | | 500 | | | | 398 | | | | 1,535 | | | | 1,933 | | | | 875 | | | 1985 | | 6/26/1995 | | 5 to 40 years | Atlanta | | GA | | | | 423 | | | 1,015 | | | 574 | | | 424 | | | 1,588 | | | 2,012 | | | 861 | | | 1989 | | 6/26/1995 | | | 5 to 40 years | | | GA | | | | | 423 | | | | 1,015 | | | | 606 | | | | 424 | | | | 1,620 | | | | 2,044 | | | | 776 | | | 1989 | | 6/26/1995 | | 5 to 40 years | Atlanta | | GA | | | | 483 | | | 1,166 | | | 1,253 | | | 483 | | | 2,419 | | | 2,902 | | | 1,102 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 794 | | | 308 | | | 1,910 | | | 2,218 | | | 1,022 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | GA | | | | | 308 | | | | 1,116 | | | | 833 | | | | 308 | | | | 1,949 | | | | 2,257 | | | | 1,075 | | | 1986 | | 6/26/1995 | | 5 to 40 years | Atlanta | | GA | | | | 170 | | | 786 | | | 856 | | | 174 | | | 1,638 | | | 1,812 | | | 824 | | | 1981 | | 6/26/1995 | | | 5 to 40 years | | | GA | | | | | 170 | | | | 786 | | | | 906 | | | | 174 | | | | 1,688 | | | | 1,862 | | | | 860 | | | 1981 | | 6/26/1995 | | 5 to 40 years | Atlanta | | GA | | | | 413 | | | 999 | | | 808 | | | 413 | | | 1,807 | | | 2,220 | | | 1,032 | | | 1975 | | 6/26/1995 | | | 5 to 40 years | | | GA | | | | | 413 | | | | 999 | | | | 853 | | | | 413 | | | | 1,852 | | | | 2,265 | | | | 1,077 | | | 1975 | | 6/26/1995 | | 5 to 40 years | Baltimore | | MD | | | | 154 | | | 555 | | | 1,473 | | | 306 | | | 1,876 | | | 2,182 | | | 840 | | | 1984 | | 6/26/1995 | | | 5 to 40 years | | | MD | | | | | 154 | | | | 555 | | | | 1,492 | | | | 306 | | | | 1,895 | | | | 2,201 | | | | 874 | | | 1984 | | 6/26/1995 | | 5 to 40 years | Baltimore | | MD | | | | 479 | | | 1,742 | | | 2,978 | | | 479 | | | 4,720 | | | 5,199 | | | 1,904 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,026 | | | 883 | | | 4,130 | | | 5,013 | | | 2,007 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,016 | | | 316 | | | 2,487 | | | 2,803 | | | 1,293 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,649 | | | 651 | | | 4,592 | | | 5,243 | | | 2,472 | | | 1983 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 1,383 | | | 715 | | | 3,078 | | | 3,793 | | | 1,461 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,820 | | | 619 | | | 3,623 | | | 4,242 | | | 1,526 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 2,836 | | | 1,376 | | | 6,055 | | | 7,431 | | | 2,919 | | | 1984 | | 6/26/1995 | | | 5 to 40 years | | | 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 | | | 658 | | | 244 | | | 1,559 | | | 1,803 | | | 871 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | FL | | | | | 244 | | | | 901 | | | | 692 | | | | 244 | | | | 1,593 | | | | 1,837 | | | | 860 | | | 1986 | | 6/26/1995 | | 5 to 40 years | Melbourne | | FL | | | | 834 | | | 2,066 | | | 3,483 | | | 1,591 | | | 4,792 | | | 6,383 | | | 1,518 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | FL | | | | | 834 | | | | 2,066 | | | | 3,528 | | | | 1,591 | | | | 4,837 | | | | 6,428 | | | | 1,626 | | | 1986/15 | | 6/26/1995 | | 5 to 40 years | Hartford | | CT | | | | 234 | | | 861 | | | 3,486 | | | 612 | | | 3,969 | | | 4,581 | | | 1,205 | | | 1992 | | 6/26/1995 | | | 5 to 40 years | | | Atlanta | | GA | | | | 256 | | | 1,244 | | | 2,231 | | | 256 | | | 3,475 | | | 3,731 | | | 1,501 | | | 1988 | | 6/26/1995 | | | 5 to 40 years | | | Norfolk | | VA | | | | 313 | | | 1,462 | | | 2,657 | | | 313 | | | 4,119 | | | 4,432 | | | 1,485 | | | 1984 | | 6/26/1995 | | | 5 to 40 years | | | Norfolk - Virginia Beach | | VA | | | | 1,142 | | | 4,998 | | | 3,411 | | | 1,142 | | | 8,409 | | | 9,551 | | | 3,218 | | | 1989/93/95 | | 6/26/1995 | | | 5 to 40 years | | | Birmingham | | AL | | | | 307 | | | 1,415 | | | 1,922 | | | 385 | | | 3,259 | | | 3,644 | | | 1,430 | | | 1990 | | 6/26/1995 | | | 5 to 40 years | | | Birmingham | | AL | | | | 730 | | | 1,725 | | | 2,981 | | | 730 | | | 4,706 | | | 5,436 | | | 1,544 | | | 1990 | | 6/26/1995 | | | 5 to 40 years | | | Montgomery | | AL | | | | 863 | | | 2,041 | | | 1,415 | | | 863 | | | 3,456 | | | 4,319 | | | 1,630 | | | 1982 | | 6/26/1995 | | | 5 to 40 years | | | Jacksonville | | FL | | | | 326 | | | 1,515 | | | 1,368 | | | 326 | | | 2,883 | | | 3,209 | | | 1,182 | | | 1987 | | 6/26/1995 | | | 5 to 40 years | | | Pensacola | | FL | | | | 369 | | | 1,358 | | | 3,194 | | | 369 | | | 4,552 | | | 4,921 | | | 1,901 | | | 1986 | | 6/26/1995 | | | 5 to 40 years | | | Pensacola | | FL | | | | 244 | | | 1,128 | | | 2,819 | | | 720 | | | 3,471 | | | 4,191 | | | 1,205 | | | 1990 | | 6/26/1995 | | | 5 to 40 years | | |
Life Storage, Inc. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Pensacola | | FL | | | | | | | 226 | | | | 1,046 | | | | 784 | | | | 226 | | | | 1,830 | | | | 2,056 | | | | 996 | | | 1990 | | | 6/26/1995 | | | | 5 to 40 years | | Tampa | | FL | | | | | | | 1,088 | | | | 2,597 | | | | 1,160 | | | | 1,088 | | | | 3,757 | | | | 4,845 | | | | 2,121 | | | 1989 | | | 6/26/1995 | | | | 5 to 40 years | | Clearwater | | FL | | | | | | | 526 | | | | 1,958 | | | | 1,545 | | | | 526 | | | | 3,503 | | | | 4,029 | | | | 1,660 | | | 1985 | | | 6/26/1995 | | | | 5 to 40 years | | Clearwater-Largo | | FL | | | | | | | 672 | | | | 2,439 | | | | 900 | | | | 672 | | | | 3,339 | | | | 4,011 | | | | 1,757 | | | 1988 | | | 6/26/1995 | | | | 5 to 40 years | | Jackson | | MS | | | | | | | 343 | | | | 1,580 | | | | 2,612 | | | | 796 | | | | 3,739 | | | | 4,535 | | | | 1,475 | | | 1990 | | | 6/26/1995 | | | | 5 to 40 years | | Jackson | | MS | | | | | | | 209 | | | | 964 | | | | 870 | | | | 209 | | | | 1,834 | | | | 2,043 | | | | 978 | | | 1990 | | | 6/26/1995 | | | | 5 to 40 years | | Providence | | RI | | | | | | | 345 | | | | 1,268 | | | | 2,081 | | | | 486 | | | | 3,208 | | | | 3,694 | | | | 1,185 | | | 1984 | | | 6/26/1995 | | | | 5 to 40 years | | Richmond | | VA | | | | | | | 443 | | | | 1,602 | | | | 1,104 | | | | 443 | | | | 2,706 | | | | 3,149 | | | | 1,383 | | | 1987 | | | 8/25/1995 | | | | 5 to 40 years | | Orlando | | FL | | | | | | | 1,161 | | | | 2,755 | | | | 2,155 | | | | 1,162 | | | | 4,909 | | | | 6,071 | | | | 2,173 | | | 1986 | | | 9/29/1995 | | | | 5 to 40 years | | Syracuse | | NY | | | | | | | 470 | | | | 1,712 | | | | 1,512 | | | | 472 | | | | 3,222 | | | | 3,694 | | | | 1,534 | | | 1987 | | | 12/27/1995 | | | | 5 to 40 years | | Ft. Myers | | FL | | | | | | | 205 | | | | 912 | | | | 553 | | | | 206 | | | | 1,464 | | | | 1,670 | | | | 813 | | | 1988 | | | 12/28/1995 | | | | 5 to 40 years | | Ft. Myers | | FL | | | | | | | 412 | | | | 1,703 | | | | 763 | | | | 413 | | | | 2,465 | | | | 2,878 | | | | 1,420 | | | 1991/94 | | | 12/28/1995 | | | | 5 to 40 years | | Harrisburg | | PA | | | | | | | 360 | | | | 1,641 | | | | 711 | | | | 360 | | | | 2,352 | | | | 2,712 | | | | 1,308 | | | 1983 | | | 12/29/1995 | | | | 5 to 40 years | | Harrisburg | | PA | | | | | | | 627 | | | | 2,224 | | | | 3,872 | | | | 692 | | | | 6,031 | | | | 6,723 | | | | 2,068 | | | 1985 | | | 12/29/1995 | | | | 5 to 40 years | | Newport News | | VA | | | | | | | 442 | | | | 1,592 | | | | 1,422 | | | | 442 | | | | 3,014 | | | | 3,456 | | | | 1,408 | | | 1988/93 | | | 1/5/1996 | | | | 5 to 40 years | | Montgomery | | AL | | | | | | | 353 | | | | 1,299 | | | | 1,094 | | | | 353 | | | | 2,393 | | | | 2,746 | | | | 1,042 | | | 1984 | | | 1/23/1996 | | | | 5 to 40 years | | Charleston | | SC | | | | | | | 237 | | | | 858 | | | | 983 | | | | 245 | | | | 1,833 | | | | 2,078 | | | | 893 | | | 1985 | | | 3/1/1996 | | | | 5 to 40 years | | Tampa | | FL | | | | | | | 766 | | | | 1,800 | | | | 772 | | | | 766 | | | | 2,572 | | | | 3,338 | | | | 1,324 | | | 1985 | | | 3/28/1996 | | | | 5 to 40 years | | Dallas-Ft.Worth | | TX | | | | | | | 442 | | | | 1,767 | | | | 454 | | | | 442 | | | | 2,221 | | | | 2,663 | | | | 1,146 | | | 1987 | | | 3/29/1996 | | | | 5 to 40 years | | Dallas-Ft.Worth | | TX | | | | | | | 408 | | | | 1,662 | | | | 1,284 | | | | 408 | | | | 2,946 | | | | 3,354 | | | | 1,416 | | | 1986 | | | 3/29/1996 | | | | 5 to 40 years | | Dallas-Ft.Worth | | TX | | | | | | | 328 | | | | 1,324 | | | | 431 | | | | 328 | | | | 1,755 | | | | 2,083 | | | | 922 | | | 1986 | | | 3/29/1996 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 436 | | | | 1,759 | | | | 1,518 | | | | 436 | | | | 3,277 | | | | 3,713 | | | | 1,499 | | | 1986 | | | 3/29/1996 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 289 | | | | 1,161 | | | | 2,453 | | | | 289 | | | | 3,614 | | | | 3,903 | | | | 362 | | | 2012 | | | 3/29/1996 | | | | 5 to 40 years | | Montgomery | | AL | | | | | | | 279 | | | | 1,014 | | | | 1,476 | | | | 433 | | | | 2,336 | | | | 2,769 | | | | 1,001 | | | 1988 | | | 5/21/1996 | | | | 5 to 40 years | | West Palm | | FL | | | | | | | 345 | | | | 1,262 | | | | 667 | | | | 345 | | | | 1,929 | | | | 2,274 | | | | 891 | | | 1986 | | | 5/29/1996 | | | | 5 to 40 years | | Ft. Myers | | FL | | | | | | | 229 | | | | 884 | | | | 2,864 | | | | 383 | | | | 3,594 | | | | 3,977 | | | | 875 | | | 1986 | | | 5/29/1996 | | | | 5 to 40 years | | Syracuse | | NY | | | | | | | 481 | | | | 1,559 | | | | 2,643 | | | | 671 | | | | 4,012 | | | | 4,683 | | | | 1,771 | | | 1983 | | | 6/5/1996 | | | | 5 to 40 years | | Lakeland | | FL | | | | | | | 359 | | | | 1,287 | | | | 1,291 | | | | 359 | | | | 2,578 | | | | 2,937 | | | | 1,318 | | | 1988 | | | 6/26/1996 | | | | 5 to 40 years | | Boston—Springfield | | MA | | | | | | | 251 | | | | 917 | | | | 2,530 | | | | 297 | | | | 3,401 | | | | 3,698 | | | | 1,567 | | | 1986 | | | 6/28/1996 | | | | 5 to 40 years | | Ft. Myers | | FL | | | | | | | 344 | | | | 1,254 | | | | 654 | | | | 310 | | | | 1,942 | | | | 2,252 | | | | 996 | | | 1987 | | | 6/28/1996 | | | | 5 to 40 years | | Cincinnati | | OH | | | | | | | 557 | | | | 1,988 | | | | 977 | | | | 688 | | | | 2,834 | | | | 3,522 | | | | 894 | | | 1988 | | | 7/23/1996 | | | | 5 to 40 years | | Baltimore | | MD | | | | | | | 777 | | | | 2,770 | | | | 798 | | | | 777 | | | | 3,568 | | | | 4,345 | | | | 1,758 | | | 1990 | | | 7/26/1996 | | | | 5 to 40 years | | Jacksonville | | FL | | | | | | | 568 | | | | 2,028 | | | | 1,366 | | | | 568 | | | | 3,394 | | | | 3,962 | | | | 1,713 | | | 1987 | | | 8/23/1996 | | | | 5 to 40 years | | Jacksonville | | FL | | | | | | | 436 | | | | 1,635 | | | | 920 | | | | 436 | | | | 2,555 | | | | 2,991 | | | | 1,255 | | | 1985 | | | 8/26/1996 | | | | 5 to 40 years | | Jacksonville | | FL | | | | | | | 535 | | | | 2,033 | | | | 603 | | | | 538 | | | | 2,633 | | | | 3,171 | | | | 1,422 | | | 1987/92 | | | 8/30/1996 | | | | 5 to 40 years | | Charlotte | | NC | | | | | | | 487 | | | | 1,754 | | | | 683 | | | | 487 | | | | 2,437 | | | | 2,924 | | | | 1,198 | | | 1995 | | | 9/16/1996 | | | | 5 to 40 years | | Charlotte | | NC | | | | | | | 315 | | | | 1,131 | | | | 508 | | | | 315 | | | | 1,639 | | | | 1,954 | | | | 845 | | | 1995 | | | 9/16/1996 | | | | 5 to 40 years | | Orlando | | FL | | | | | | | 314 | | | | 1,113 | | | | 1,296 | | | | 314 | | | | 2,409 | | | | 2,723 | | | | 1,155 | | | 1975 | | | 10/30/1996 | | | | 5 to 40 years | | Rochester | | NY | | | | | | | 704 | | | | 2,496 | | | | 2,851 | | | | 707 | | | | 5,344 | | | | 6,051 | | | | 1,987 | | | 1990 | | | 12/20/1996 | | | | 5 to 40 years | | Youngstown | | OH | | | | | | | 600 | | | | 2,142 | | | | 2,574 | | | | 693 | | | | 4,623 | | | | 5,316 | | | | 1,745 | | | 1988 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 751 | | | | 2,676 | | | | 4,405 | | | | 751 | | | | 7,081 | | | | 7,832 | | | | 2,404 | | | 1986 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 725 | | | | 2,586 | | | | 2,332 | | | | 725 | | | | 4,918 | | | | 5,643 | | | | 2,152 | | | 1978 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 637 | | | | 2,918 | | | | 2,052 | | | | 701 | | | | 4,906 | | | | 5,607 | | | | 2,610 | | | 1979 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 495 | | | | 1,781 | | | | 1,386 | | | | 495 | | | | 3,167 | | | | 3,662 | | | | 1,480 | | | 1979 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 761 | | | | 2,714 | | | | 1,734 | | | | 761 | | | | 4,448 | | | | 5,209 | | | | 2,201 | | | 1977 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 418 | | | | 1,921 | | | | 2,934 | | | | 418 | | | | 4,855 | | | | 5,273 | | | | 1,959 | | | 1970 | | | 1/10/1997 | | | | 5 to 40 years | | Cleveland | | OH | | | | | | | 606 | | | | 2,164 | | | | 1,523 | | | | 606 | | | | 3,687 | | | | 4,293 | | | | 1,614 | | | 1982 | | | 1/10/1997 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 474 | | | | 1,686 | | | | 688 | | | | 504 | | | | 2,344 | | | | 2,848 | | | | 1,049 | | | 1981 | | | 1/30/1997 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 346 | | | | 1,236 | | | | 576 | | | | 346 | | | | 1,812 | | | | 2,158 | | | | 865 | | | 1985 | | | 1/30/1997 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 432 | | | | 1,560 | | | | 2,101 | | | | 432 | | | | 3,661 | | | | 4,093 | | | | 1,632 | | | 1995 | | | 1/30/1997 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 634 | | | | 2,565 | | | | 4,380 | | | | 634 | | | | 6,945 | | | | 7,579 | | | | 1,940 | | | 1993/95 | | | 3/26/1997 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 566 | | | | 2,279 | | | | 570 | | | | 566 | | | | 2,849 | | | | 3,415 | | | | 1,400 | | | 1995 | | | 3/26/1997 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 293 | | | | 1,357 | | | | 707 | | | | 293 | | | | 2,064 | | | | 2,357 | | | | 947 | | | 1995 | | | 3/26/1997 | | | | 5 to 40 years | | Chesapeake | | VA | | | | | | | 260 | | | | 1,043 | | | | 4,720 | | | | 260 | | | | 5,763 | | | | 6,023 | | | | 1,491 | | | 1988/95 | | | 3/31/1997 | | | | 5 to 40 years | | Orlando-W 25th St | | FL | | | | | | | 289 | | | | 1,160 | | | | 2,467 | | | | 616 | | | | 3,300 | | | | 3,916 | | | | 948 | | | 1984 | | | 3/31/1997 | | | | 5 to 40 years | | Delray | | FL | | | | | | | 491 | | | | 1,756 | | | | 778 | | | | 491 | | | | 2,534 | | | | 3,025 | | | | 1,321 | | | 1969 | | | 4/11/1997 | | | | 5 to 40 years | | Savannah | | GA | | | | | | | 296 | | | | 1,196 | | | | 590 | | | | 296 | | | | 1,786 | | | | 2,082 | | | | 875 | | | 1988 | | | 5/8/1997 | | | | 5 to 40 years | | Delray | | FL | | | | | | | 921 | | | | 3,282 | | | | 795 | | | | 921 | | | | 4,077 | | | | 4,998 | | | | 2,021 | | | 1980 | | | 5/21/1997 | | | | 5 to 40 years | | Cleveland-Avon | | OH | | | | | | | 301 | | | | 1,214 | | | | 2,302 | | | | 304 | | | | 3,513 | | | | 3,817 | | | | 1,438 | | | 1989 | | | 6/4/1997 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 965 | | | | 3,864 | | | | 1,728 | | | | 943 | | | | 5,614 | | | | 6,557 | | | | 2,652 | | | 1977 | | | 6/30/1997 | | | | 5 to 40 years | | Atlanta-Alpharetta | | GA | | | | | | | 1,033 | | | | 3,753 | | | | 720 | | | | 1,033 | | | | 4,473 | | | | 5,506 | | | | 2,186 | | | 1994 | | | 7/24/1997 | | | | 5 to 40 years | | Atlanta-Marietta | | GA | | | | | | | 769 | | | | 2,788 | | | | 642 | | | | 825 | | | | 3,374 | | | | 4,199 | | | | 1,641 | | | 1996 | | | 7/24/1997 | | | | 5 to 40 years | | Atlanta-Doraville | | GA | | | | | | | 735 | | | | 3,429 | | | | 496 | | | | 735 | | | | 3,925 | | | | 4,660 | | | | 1,962 | | | 1995 | | | 8/21/1997 | | | | 5 to 40 years | |
Schedule III
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Greensboro-Hilltop | | NC | | | | | | | 268 | | | | 1,097 | | | | 859 | | | | 231 | | | | 1,993 | | | | 2,224 | | | | 814 | | | 1995 | | | 9/25/1997 | | | | 5 to 40 years | | Greensboro-StgCch | | NC | | | | | | | 89 | | | | 376 | | | | 1,854 | | | | 89 | | | | 2,230 | | | | 2,319 | | | | 941 | | | 1997 | | | 9/25/1997 | | | | 5 to 40 years | | Baton Rouge-Airline | | LA | | | | | | | 396 | | | | 1,831 | | | | 1,161 | | | | 421 | | | | 2,967 | | | | 3,388 | | | | 1,382 | | | 1982 | | | 10/9/1997 | | | | 5 to 40 years | | Baton Rouge-Airline2 | | LA | | | | | | | 282 | | | | 1,303 | | | | 504 | | | | 282 | | | | 1,807 | | | | 2,089 | | | | 894 | | | 1985 | | | 11/21/1997 | | | | 5 to 40 years | | Harrisburg-Peiffers | | PA | | | | | | | 635 | | | | 2,550 | | | | 731 | | | | 637 | | | | 3,279 | | | | 3,916 | | | | 1,626 | | | 1984 | | | 12/3/1997 | | | | 5 to 40 years | | Tampa-E. Hillsborough | | FL | | | | | | | 709 | | | | 3,235 | | | | 979 | | | | 709 | | | | 4,214 | | | | 4,923 | | | | 2,041 | | | 1985 | | | 2/4/1998 | | | | 5 to 40 years | | NY Metro-Middletown | | NY | | | | | | | 843 | | | | 3,394 | | | | 1,038 | | | | 843 | | | | 4,432 | | | | 5,275 | | | | 2,047 | | | 1989/95 | | | 2/4/1998 | | | | 5 to 40 years | | Chesapeake-Military | | VA | | | | | | | 542 | | | | 2,210 | | | | 527 | | | | 542 | | | | 2,737 | | | | 3,279 | | | | 1,304 | | | 1996 | | | 2/5/1998 | | | | 5 to 40 years | | Chesapeake-Volvo | | VA | | | | | | | 620 | | | | 2,532 | | | | 1,289 | | | | 620 | | | | 3,821 | | | | 4,441 | | | | 1,727 | | | 1995 | | | 2/5/1998 | | | | 5 to 40 years | | Virginia Beach-Shell | | VA | | | | | | | 540 | | | | 2,211 | | | | 508 | | | | 540 | | | | 2,719 | | | | 3,259 | | | | 1,300 | | | 1991 | | | 2/5/1998 | | | | 5 to 40 years | | Norfolk-Naval Base | | VA | | | | | | | 1,243 | | | | 5,019 | | | | 990 | | | | 1,243 | | | | 6,009 | | | | 7,252 | | | | 2,862 | | | 1975 | | | 2/5/1998 | | | | 5 to 40 years | | Boston-Northbridge | | MA | | | | | | | 441 | | | | 1,788 | | | | 1,120 | | | | 694 | | | | 2,655 | | | | 3,349 | | | | 813 | | | 1988 | | | 2/9/1998 | | | | 5 to 40 years | | Greensboro-High Point | | NC | | | | | | | 397 | | | | 1,834 | | | | 964 | | | | 397 | | | | 2,798 | | | | 3,195 | | | | 1,241 | | | 1993 | | | 2/10/1998 | | | | 5 to 40 years | | Titusville | | FL | | | | | | | 492 | | | | 1,990 | | | | 1,282 | | | | 688 | | | | 3,076 | | | | 3,764 | | | | 953 | | | 1986/90 | | | 2/25/1998 | | | | 5 to 40 years | | Boston-Salem | | MA | | | | | | | 733 | | | | 2,941 | | | | 1,676 | | | | 733 | | | | 4,617 | | | | 5,350 | | | | 2,186 | | | 1979 | | | 3/3/1998 | | | | 5 to 40 years | | Providence | | RI | | | | | | | 702 | | | | 2,821 | | | | 4,243 | | | | 702 | | | | 7,064 | | | | 7,766 | | | | 2,310 | | | 1984/88 | | | 3/26/1998 | | | | 5 to 40 years | | Chattanooga-Lee Hwy | | TN | | | | | | | 384 | | | | 1,371 | | | | 623 | | | | 384 | | | | 1,994 | | | | 2,378 | | | | 1,018 | | | 1987 | | | 3/27/1998 | | | | 5 to 40 years | | Chattanooga-Hwy 58 | | TN | | | | | | | 296 | | | | 1,198 | | | | 2,358 | | | | 414 | | | | 3,438 | | | | 3,852 | | | | 1,293 | | | 1985 | | | 3/27/1998 | | | | 5 to 40 years | | Ft. Oglethorpe | | GA | | | | | | | 349 | | | | 1,250 | | | | 1,834 | | | | 464 | | | | 2,969 | | | | 3,433 | | | | 1,061 | | | 1989 | | | 3/27/1998 | | | | 5 to 40 years | | Birmingham-Walt | | AL | | | | | | | 544 | | | | 1,942 | | | | 1,311 | | | | 544 | | | | 3,253 | | | | 3,797 | | | | 1,555 | | | 1984 | | | 3/27/1998 | | | | 5 to 40 years | | Salem-Policy | | NH | | | | | | | 742 | | | | 2,977 | | | | 649 | | | | 742 | | | | 3,626 | | | | 4,368 | | | | 1,679 | | | 1980 | | | 4/7/1998 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 775 | | | | 3,103 | | | | 940 | | | | 775 | | | | 4,043 | | | | 4,818 | | | | 1,904 | | | 1988/91 | | | 4/9/1998 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 940 | | | | 3,763 | | | | 979 | | | | 940 | | | | 4,742 | | | | 5,682 | | | | 2,235 | | | 1990/96 | | | 4/9/1998 | | | | 5 to 40 years | | Youngstown-Warren | | OH | | | | | | | 522 | | | | 1,864 | | | | 1,393 | | | | 569 | | | | 3,210 | | | | 3,779 | | | | 1,454 | | | 1986 | | | 4/22/1998 | | | | 5 to 40 years | | Youngstown-Warren | | OH | | | | | | | 512 | | | | 1,829 | | | | 2,765 | | | | 633 | | | | 4,473 | | | | 5,106 | | | | 1,561 | | | 1986 | | | 4/22/1998 | | | | 5 to 40 years | | Jackson | | MS | | | | | | | 744 | | | | 3,021 | | | | 288 | | | | 744 | | | | 3,309 | | | | 4,053 | | | | 1,575 | | | 1995 | | | 5/13/1998 | | | | 5 to 40 years | | Houston-Katy | | TX | | | | | | | 419 | | | | 1,524 | | | | 4,064 | | | | 419 | | | | 5,588 | | | | 6,007 | | | | 1,613 | | | 1994 | | | 5/20/1998 | | | | 5 to 40 years | | Melbourne | | FL | | | | | | | 662 | | | | 2,654 | | | | 3,704 | | | | 662 | | | | 6,358 | | | | 7,020 | | | | 1,558 | | | 1985 | | | 6/2/1998 | | | | 5 to 40 years | | Vero Beach | | FL | | | | | | | 489 | | | | 1,813 | | | | 1,768 | | | | 584 | | | | 3,486 | | | | 4,070 | | | | 1,136 | | | 1997 | | | 6/12/1998 | | | | 5 to 40 years | | Houston-Humble | | TX | | | | | | | 447 | �� | | | 1,790 | | | | 2,587 | | | | 740 | | | | 4,084 | | | | 4,824 | | | | 1,523 | | | 1986 | | | 6/16/1998 | | | | 5 to 40 years | | Houston-Webster | | TX | | | | | | | 635 | | | | 2,302 | | | | 371 | | | | 635 | | | | 2,673 | | | | 3,308 | | | | 1,200 | | | 1997 | | | 6/19/1998 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 548 | | | | 1,988 | | | | 423 | | | | 548 | | | | 2,411 | | | | 2,959 | | | | 1,097 | | | 1997 | | | 6/19/1998 | | | | 5 to 40 years | | San Marcos | | TX | | | | | | | 324 | | | | 1,493 | | | | 2,204 | | | | 324 | | | | 3,697 | | | | 4,021 | | | | 1,345 | | | 1994 | | | 6/30/1998 | | | | 5 to 40 years | | Austin-McNeil | | TX | | | | | | | 492 | | | | 1,995 | | | | 2,631 | | | | 510 | | | | 4,608 | | | | 5,118 | | | | 1,509 | | | 1994 | | | 6/30/1998 | | | | 5 to 40 years | | Austin-FM | | TX | | | | | | | 484 | | | | 1,951 | | | | 724 | | | | 481 | | | | 2,678 | | | | 3,159 | | | | 1,184 | | | 1996 | | | 6/30/1998 | | | | 5 to 40 years | | Hollywood-Sheridan | | FL | | | | | | | 1,208 | | | | 4,854 | | | | 700 | | | | 1,208 | | | | 5,554 | | | | 6,762 | | | | 2,620 | | | 1988 | | | 7/1/1998 | | | | 5 to 40 years | | Pompano Beach-Atlantic | | FL | | | | | | | 944 | | | | 3,803 | | | | 795 | | | | 944 | | | | 4,598 | | | | 5,542 | | | | 2,182 | | | 1985 | | | 7/1/1998 | | | | 5 to 40 years | | Pompano Beach-Sample | | FL | | | | | | | 903 | | | | 3,643 | | | | 592 | | | | 903 | | | | 4,235 | | | | 5,138 | | | | 1,978 | | | 1988 | | | 7/1/1998 | | | | 5 to 40 years | | Boca Raton-18th St | | FL | | | | | | | 1,503 | | | | 6,059 | | | | -1,853 | | | | 851 | | | | 4,858 | | | | 5,709 | | | | 2,298 | | | 1991 | | | 7/1/1998 | | | | 5 to 40 years | | Hollywood-N.21st | | FL | | | | | | | 840 | | | | 3,373 | | | | 642 | | | | 840 | | | | 4,015 | | | | 4,855 | | | | 1,913 | | | 1987 | | | 8/3/1998 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 550 | | | | 1,998 | | | | 850 | | | | 550 | | | | 2,848 | | | | 3,398 | | | | 1,199 | | | 1996 | | | 9/29/1998 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 670 | | | | 2,407 | | | | 1,761 | | | | 670 | | | | 4,168 | | | | 4,838 | | | | 1,690 | | | 1996 | | | 10/9/1998 | | | | 5 to 40 years | | Cincinnati-Batavia | | OH | | | | | | | 390 | | | | 1,570 | | | | 1,462 | | | | 390 | | | | 3,032 | | | | 3,422 | | | | 1,136 | | | 1988 | | | 11/19/1998 | | | | 5 to 40 years | | Jackson-N.West | | MS | | | | | | | 460 | | | | 1,642 | | | | 765 | | | | 460 | | | | 2,407 | | | | 2,867 | | | | 1,151 | | | 1984 | | | 12/1/1998 | | | | 5 to 40 years | | Houston-Katy | | TX | | | | | | | 507 | | | | 2,058 | | | | 1,812 | | | | 507 | | | | 3,870 | | | | 4,377 | | | | 1,455 | | | 1993 | | | 12/15/1998 | | | | 5 to 40 years | | Providence | | RI | | | | | | | 447 | | | | 1,776 | | | | 1,023 | | | | 447 | | | | 2,799 | | | | 3,246 | | | | 1,268 | | | 1986/94 | | | 2/2/1999 | | | | 5 to 40 years | | Lafayette-Pinhook 1 | | LA | | | | | | | 556 | | | | 1,951 | | | | 1,288 | | | | 556 | | | | 3,239 | | | | 3,795 | | | | 1,606 | | | 1980 | | | 2/17/1999 | | | | 5 to 40 years | | Lafayette-Pinhook2 | | LA | | | | | | | 708 | | | | 2,860 | | | | 1,320 | | | | 708 | | | | 4,180 | | | | 4,888 | | | | 1,591 | | | 1992/94 | | | 2/17/1999 | | | | 5 to 40 years | | Lafayette-Ambassador | | LA | | | | | | | 314 | | | | 1,095 | | | | 954 | | | | 314 | | | | 2,049 | | | | 2,363 | | | | 1,055 | | | 1975 | | | 2/17/1999 | | | | 5 to 40 years | | Lafayette-Evangeline | | LA | | | | | | | 188 | | | | 652 | | | | 1,674 | | | | 188 | | | | 2,326 | | | | 2,514 | | | | 1,073 | | | 1977 | | | 2/17/1999 | | | | 5 to 40 years | | Lafayette-Guilbeau | | LA | | | | | | | 963 | | | | 3,896 | | | | 1,136 | | | | 963 | | | | 5,032 | | | | 5,995 | | | | 2,108 | | | 1994 | | | 2/17/1999 | | | | 5 to 40 years | | Phoenix-Gilbert | | AZ | | | | | | | 651 | | | | 2,600 | | | | 1,313 | | | | 772 | | | | 3,792 | | | | 4,564 | | | | 1,600 | | | 1995 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Glendale | | AZ | | | | | | | 565 | | | | 2,596 | | | | 769 | | | | 565 | | | | 3,365 | | | | 3,930 | | | | 1,472 | | | 1997 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Mesa | | AZ | | | | | | | 330 | | | | 1,309 | | | | 2,586 | | | | 733 | | | | 3,492 | | | | 4,225 | | | | 1,173 | | | 1986 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Mesa | | AZ | | | | | | | 339 | | | | 1,346 | | | | 740 | | | | 339 | | | | 2,086 | | | | 2,425 | | | | 882 | | | 1986 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Mesa | | AZ | | | | | | | 291 | | | | 1,026 | | | | 1,143 | | | | 291 | | | | 2,169 | | | | 2,460 | | | | 835 | | | 1976 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Mesa | | AZ | | | | | | | 354 | | | | 1,405 | | | | 594 | | | | 354 | | | | 1,999 | | | | 2,353 | | | | 911 | | | 1986 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Camelback | | AZ | | | | | | | 453 | | | | 1,610 | | | | 1,095 | | | | 453 | | | | 2,705 | | | | 3,158 | | | | 1,211 | | | 1984 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-Bell | | AZ | | | | | | | 872 | | | | 3,476 | | | | 3,618 | | | | 872 | | | | 7,094 | | | | 7,966 | | | | 2,354 | | | 1984 | | | 5/18/1999 | | | | 5 to 40 years | | Phoenix-35th Ave | | AZ | | | | | | | 849 | | | | 3,401 | | | | 955 | | | | 849 | | | | 4,356 | | | | 5,205 | | | | 1,932 | | | 1996 | | | 5/21/1999 | | | | 5 to 40 years | | Portland | | ME | | | | | | | 410 | | | | 1,626 | | | | 2,024 | | | | 410 | | | | 3,650 | | | | 4,060 | | | | 1,435 | | | 1988 | | | 8/2/1999 | | | | 5 to 40 years | | Space Coast-Cocoa | | FL | | | | | | | 667 | | | | 2,373 | | | | 1,014 | | | | 667 | | | | 3,387 | | | | 4,054 | | | | 1,514 | | | 1982 | | | 9/29/1999 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 335 | | | | 1,521 | | | | 853 | | | | 335 | | | | 2,374 | | | | 2,709 | | | | 921 | | | 1985 | | | 11/9/1999 | | | | 5 to 40 years | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | NY Metro-Middletown | | NY | | | | | | | 276 | | | | 1,312 | | | | 1,314 | | | | 276 | | | | 2,626 | | | | 2,902 | | | | 1,010 | | | 1998 | | | 2/2/2000 | | | | 5 to 40 years | | Boston-N. Andover | | MA | | | | | | | 633 | | | | 2,573 | | | | 1,055 | | | | 633 | | | | 3,628 | | | | 4,261 | | | | 1,458 | | | 1989 | | | 2/15/2000 | | | | 5 to 40 years | | Houston-Seabrook | | TX | | | | | | | 633 | | | | 2,617 | | | | 476 | | | | 633 | | | | 3,093 | | | | 3,726 | | | | 1,351 | | | 1996 | | | 3/1/2000 | | | | 5 to 40 years | | Ft. Lauderdale | | FL | | | | | | | 384 | | | | 1,422 | | | | 842 | | | | 384 | | | | 2,264 | | | | 2,648 | | | | 897 | | | 1994 | | | 5/2/2000 | | | | 5 to 40 years | | Birmingham-Bessemer | | AL | | | | | | | 254 | | | | 1,059 | | | | 2,066 | | | | 332 | | | | 3,047 | | | | 3,379 | | | | 906 | | | 1998 | | | 11/15/2000 | | | | 5 to 40 years | | NY Metro-Brewster | | NY | | | | | | | 1,716 | | | | 6,920 | | | | 1,754 | | | | 1,981 | | | | 8,409 | | | | 10,390 | | | | 2,108 | | | 1991/97 | | | 12/27/2000 | | | | 5 to 40 years | | Austin-Lamar | | TX | | | | | | | 837 | | | | 2,977 | | | | 3,579 | | | | 966 | | | | 6,427 | | | | 7,393 | | | | 1,271 | | | 1996/99 | | | 2/22/2001 | | | | 5 to 40 years | | Houston | | TX | | | | | | | 733 | | | | 3,392 | | | | 900 | | | | 841 | | | | 4,184 | | | | 5,025 | | | | 1,300 | | | 1993/97 | | | 3/2/2001 | | | | 5 to 40 years | | Ft.Myers | | FL | | | | | | | 787 | | | | 3,249 | | | | 750 | | | | 902 | | | | 3,884 | | | | 4,786 | | | | 1,254 | | | 1997 | | | 3/13/2001 | | | | 5 to 40 years | | Boston-Dracut | | MA | | | | | | | 1,035 | | | | 3,737 | | | | 743 | | | | 1,104 | | | | 4,411 | | | | 5,515 | | | | 1,743 | | | 1986 | | | 12/1/2001 | | | | 5 to 40 years | | Boston-Methuen | | MA | | | | | | | 1,024 | | | | 3,649 | | | | 827 | | | | 1,091 | | | | 4,409 | | | | 5,500 | | | | 1,675 | | | 1984 | | | 12/1/2001 | | | | 5 to 40 years | | Columbia | | SC | | | | | | | 883 | | | | 3,139 | | | | 1,473 | | | | 942 | | | | 4,553 | | | | 5,495 | | | | 1,624 | | | 1985 | | | 12/1/2001 | | | | 5 to 40 years | | Myrtle Beach | | SC | | | | | | | 552 | | | | 1,970 | | | | 1,155 | | | | 589 | | | | 3,088 | | | | 3,677 | | | | 1,192 | | | 1984 | | | 12/1/2001 | | | | 5 to 40 years | | Maine-Saco | | ME | | | | | | | 534 | | | | 1,914 | | | | 511 | | | | 570 | | | | 2,389 | | | | 2,959 | | | | 908 | | | 1988 | | | 12/3/2001 | | | | 5 to 40 years | | Boston-Plymouth | | MA | | | | | | | 1,004 | | | | 4,584 | | | | 2,370 | | | | 1,004 | | | | 6,954 | | | | 7,958 | | | | 2,292 | | | 1996 | | | 12/19/2001 | | | | 5 to 40 years | | Boston-Sandwich | | MA | | | | | | | 670 | | | | 3,060 | | | | 611 | | | | 714 | | | | 3,627 | | | | 4,341 | | | | 1,363 | | | 1984 | | | 12/19/2001 | | | | 5 to 40 years | | Syracuse | | NY | | | | | | | 294 | | | | 1,203 | | | | 1,194 | | | | 327 | | | | 2,364 | | | | 2,691 | | | | 774 | | | 1987 | | | 2/5/2002 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 734 | | | | 2,956 | | | | 822 | | | | 784 | | | | 3,728 | | | | 4,512 | | | | 1,379 | | | 1984 | | | 2/13/2002 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 394 | | | | 1,595 | | | | 499 | | | | 421 | | | | 2,067 | | | | 2,488 | | | | 763 | | | 1985 | | | 2/13/2002 | | | | 5 to 40 years | | San Antonio-Hunt | | TX | | | | | | | 381 | | | | 1,545 | | | | 3,979 | | | | 618 | | | | 5,287 | | | | 5,905 | | | | 1,185 | | | 1980 | | | 2/13/2002 | | | | 5 to 40 years | | Houston-Humble | | TX | | | | | | | 919 | | | | 3,696 | | | | 702 | | | | 919 | | | | 4,398 | | | | 5,317 | | | | 1,562 | | | 1998/02 | | | 6/19/2002 | | | | 5 to 40 years | | Houston-Pasadena | | TX | | | | | | | 612 | | | | 2,468 | | | | 463 | | | | 612 | | | | 2,931 | | | | 3,543 | | | | 1,053 | | | 1999 | | | 6/19/2002 | | | | 5 to 40 years | | Houston-League City | | TX | | | | | | | 689 | | | | 3,159 | | | | 795 | | | | 689 | | | | 3,954 | | | | 4,643 | | | | 1,336 | | | 1994/97 | | | 6/19/2002 | | | | 5 to 40 years | | Houston-Montgomery | | TX | | | | | | | 817 | | | | 3,286 | | | | 2,190 | | | | 1,119 | | | | 5,174 | | | | 6,293 | | | | 1,696 | | | 1998 | | | 6/19/2002 | | | | 5 to 40 years | | Houston-S. Hwy 6 | | TX | | | | | | | 407 | | | | 1,650 | | | | 327 | | | | 407 | | | | 1,977 | | | | 2,384 | | | | 723 | | | 1997 | | | 6/19/2002 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 817 | | | | 3,287 | | | | 499 | | | | 817 | | | | 3,786 | | | | 4,603 | | | | 1,418 | | | 1996 | | | 6/19/2002 | | | | 5 to 40 years | | The Hamptons | | NY | | | | | | | 2,207 | | | | 8,866 | | | | 830 | | | | 2,207 | | | | 9,696 | | | | 11,903 | | | | 3,497 | | | 1989/95 | | | 12/16/2002 | | | | 5 to 40 years | | The Hamptons | | NY | | | | | | | 1,131 | | | | 4,564 | | | | 608 | | | | 1,131 | | | | 5,172 | | | | 6,303 | | | | 1,823 | | | 1998 | | | 12/16/2002 | | | | 5 to 40 years | | The Hamptons | | NY | | | | | | | 635 | | | | 2,918 | | | | 447 | | | | 635 | | | | 3,365 | | | | 4,000 | | | | 1,193 | | | 1997 | | | 12/16/2002 | | | | 5 to 40 years | | The Hamptons | | NY | | | | | | | 1,251 | | | | 5,744 | | | | 543 | | | | 1,251 | | | | 6,287 | | | | 7,538 | | | | 2,198 | | | 1994/98 | | | 12/16/2002 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 1,039 | | | | 4,201 | | | | 258 | | | | 1,039 | | | | 4,459 | | | | 5,498 | | | | 1,517 | | | 1995/99 | | | 8/26/2003 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 827 | | | | 3,776 | | | | 509 | | | | 827 | | | | 4,285 | | | | 5,112 | | | | 1,422 | | | 1998/01 | | | 10/1/2003 | | | | 5 to 40 years | | Stamford | | CT | | | | | | | 2,713 | | | | 11,013 | | | | 595 | | | | 2,713 | | | | 11,608 | | | | 14,321 | | | | 3,920 | | | 1998 | | | 3/17/2004 | | | | 5 to 40 years | | Houston-Tomball | | TX | | | | | | | 773 | | | | 3,170 | | | | 1,876 | | | | 773 | | | | 5,046 | | | | 5,819 | | | | 1,590 | | | 2000 | | | 5/19/2004 | | | | 5 to 40 years | | Houston-Conroe | | TX | | | | | | | 1,195 | | | | 4,877 | | | | 435 | | | | 1,195 | | | | 5,312 | | | | 6,507 | | | | 1,664 | | | 2001 | | | 5/19/2004 | | | | 5 to 40 years | | Houston-Spring | | TX | | | | | | | 1,103 | | | | 4,550 | | | | 512 | | | | 1,103 | | | | 5,062 | | | | 6,165 | | | | 1,684 | | | 2001 | | | 5/19/2004 | | | | 5 to 40 years | | Houston-Bissonnet | | TX | | | | | | | 1,061 | | | | 4,427 | | | | 2,910 | | | | 1,061 | | | | 7,337 | | | | 8,398 | | | | 2,191 | | | 2003 | | | 5/19/2004 | | | | 5 to 40 years | | Houston-Alvin | | TX | | | | | | | 388 | | | | 1,640 | | | | 1,046 | | | | 388 | | | | 2,686 | | | | 3,074 | | | | 801 | | | 2003 | | | 5/19/2004 | | | | 5 to 40 years | | Clearwater | | FL | | | | | | | 1,720 | | | | 6,986 | | | | 315 | | | | 1,720 | | | | 7,301 | | | | 9,021 | | | | 2,366 | | | 2001 | | | 6/3/2004 | | | | 5 to 40 years | | Houston-Missouri City | | TX | | | | | | | 1,167 | | | | 4,744 | | | | 3,576 | | | | 1,566 | | | | 7,921 | | | | 9,487 | | | | 2,176 | | | 1998 | | | 6/23/2004 | | | | 5 to 40 years | | Chattanooga-Hixson | | TN | | | | | | | 1,365 | | | | 5,569 | | | | 1,845 | | | | 1,365 | | | | 7,414 | | | | 8,779 | | | | 2,388 | | | 1998/02 | | | 8/4/2004 | | | | 5 to 40 years | | Austin-Round Rock | | TX | | | | | | | 2,047 | | | | 5,857 | | | | 880 | | | | 1,976 | | | | 6,808 | | | | 8,784 | | | | 2,181 | | | 2000 | | | 8/5/2004 | | | | 5 to 40 years | | Long Island-Bayshore | | NY | | | | | | | 1,131 | | | | 4,609 | | | | 252 | | | | 1,131 | | | | 4,861 | | | | 5,992 | | | | 1,492 | | | 2003 | | | 3/15/2005 | | | | 5 to 40 years | | Syracuse - Cicero | | NY | | | | | | | 527 | | | | 2,121 | | | | 3,273 | | | | 527 | | | | 5,394 | | | | 5,921 | | | | 1,014 | | | 1988/02 | | | 3/16/2005 | | | | 5 to 40 years | | Boston-Springfield | | MA | | | | | | | 612 | | | | 2,501 | | | | 368 | | | | 612 | | | | 2,869 | | | | 3,481 | | | | 859 | | | 1965/75 | | | 4/12/2005 | | | | 5 to 40 years | | Stamford | | CT | | | | | | | 1,612 | | | | 6,585 | | | | 289 | | | | 1,612 | | | | 6,874 | | | | 8,486 | | | | 2,166 | | | 2002 | | | 4/14/2005 | | | | 5 to 40 years | | Montgomery-Richard | | AL | | | | | | | 1,906 | | | | 7,726 | | | | 389 | | | | 1,906 | | | | 8,115 | | | | 10,021 | | | | 2,450 | | | 1997 | | | 6/1/2005 | | | | 5 to 40 years | | Houston-Jones | | TX | | | | | | | 1,214 | | | | 4,949 | | | | 363 | | | | 1,215 | | | | 5,311 | | | | 6,526 | | | | 1,592 | | | 1997/99 | | | 6/6/2005 | | | | 5 to 40 years | | Boston-Oxford | | MA | | | | | | | 470 | | | | 1,902 | | | | 1,668 | | | | 470 | | | | 3,570 | | | | 4,040 | | | | 1,008 | | | 2002 | | | 6/23/2005 | | | | 5 to 40 years | | Austin-290E | | TX | | | | | | | 537 | | | | 2,183 | | | | -320 | | | | 491 | | | | 1,909 | | | | 2,400 | | | | 638 | | | 2003 | | | 7/12/2005 | | | | 5 to 40 years | | San Antonio-Marbach | | TX | | | | | | | 556 | | | | 2,265 | | | | 549 | | | | 556 | | | | 2,814 | | | | 3,370 | | | | 866 | | | 2003 | | | 7/12/2005 | | | | 5 to 40 years | | Austin-South 1st | | TX | | | | | | | 754 | | | | 3,065 | | | | 259 | | | | 754 | | | | 3,324 | | | | 4,078 | | | | 1,028 | | | 2003 | | | 7/12/2005 | | | | 5 to 40 years | | Houston-Pinehurst | | TX | | | | | | | 484 | | | | 1,977 | | | | 1,544 | | | | 484 | | | | 3,521 | | | | 4,005 | | | | 957 | | | 2002/04 | | | 7/12/2005 | | | | 5 to 40 years | | Atlanta-Marietta | | GA | | | | | | | 811 | | | | 3,397 | | | | 580 | | | | 811 | | | | 3,977 | | | | 4,788 | | | | 1,224 | | | 2003 | | | 9/15/2005 | | | | 5 to 40 years | | Baton Rouge | | LA | | | | | | | 719 | | | | 2,927 | | | | 2,568 | | | | 719 | | | | 5,495 | | | | 6,214 | | | | 1,291 | | | 1984/94 | | | 11/15/2005 | | | | 5 to 40 years | | SanMarcos-Hwy 35S | | TX | | | | | | | 628 | | | | 2,532 | | | | 3,288 | | | | 982 | | | | 5,466 | | | | 6,448 | | | | 773 | | | 2001 | | | 1/10/2006 | | | | 5 to 40 years | | Houston-Baytown | | TX | | | | | | | 596 | | | | 2,411 | | | | 287 | | | | 596 | | | | 2,698 | | | | 3,294 | | | | 735 | | | 2002 | | | 1/10/2006 | | | | 5 to 40 years | | Houston-Cypress | | TX | | | | | | | 721 | | | | 2,994 | | | | 2,318 | | | | 721 | | | | 5,312 | | | | 6,033 | | | | 1,303 | | | 2003 | | | 1/13/2006 | | | | 5 to 40 years | | Rochester | | NY | | | | | | | 937 | | | | 3,779 | | | | 228 | | | | 937 | | | | 4,007 | | | | 4,944 | | | | 1,151 | | | 2002/06 | | | 2/1/2006 | | | | 5 to 40 years | | Houston-Jones Rd 2 | | TX | | | | | | | 707 | | | | 2,933 | | | | 2,831 | | | | 707 | | | | 5,764 | | | | 6,471 | | | | 1,506 | | | 2000 | | | 3/9/2006 | | | | 5 to 40 years | | Lafayette | | LA | | | | | | | 411 | | | | 1,621 | | | | 281 | | | | 411 | | | | 1,902 | | | | 2,313 | | | | 592 | | | 1997 | | | 4/13/2006 | | | | 5 to 40 years | | Lafayette | | LA | | | | | | | 463 | | | | 1,831 | | | | 208 | | | | 463 | | | | 2,039 | | | | 2,502 | | | | 616 | | | 2001/04 | | | 4/13/2006 | | | | 5 to 40 years | | Lafayette | | LA | | | | | | | 601 | | | | 2,406 | | | | 1,442 | | | | 601 | | | | 3,848 | | | | 4,449 | | | | 1,071 | | | 2002 | | | 4/13/2006 | | | | 5 to 40 years | |
| | | | | | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Lafayette | | LA | | | | | | | 542 | | | | 1,319 | | | | 2,210 | | | | 542 | | | | 3,529 | | | | 4,071 | | | | 920 | | | 1997/99 | | | 4/13/2006 | | | | 5 to 40 years | | Manchester | | NH | | | | | | | 832 | | | | 3,268 | | | | 185 | | | | 832 | | | | 3,453 | | | | 4,285 | | | | 977 | | | 2000 | | | 4/26/2006 | | | | 5 to 40 years | | Clearwater-Largo | | FL | | | | | | | 1,270 | | | | 5,037 | | | | 376 | | | | 1,270 | | | | 5,413 | | | | 6,683 | | | | 1,502 | | | 1998 | | | 6/22/2006 | | | | 5 to 40 years | | Clearwater-Pinellas Park | | FL | | | | | | | 929 | | | | 3,676 | | | | 339 | | | | 929 | | | | 4,015 | | | | 4,944 | | | | 1,078 | | | 2000 | | | 6/22/2006 | | | | 5 to 40 years | | Clearwater-Tarpon Spring | | FL | | | | | | | 696 | | | | 2,739 | | | | 240 | | | | 696 | | | | 2,979 | | | | 3,675 | | | | 836 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | New Orleans | | LA | | | | | | | 1,220 | | | | 4,805 | | | | 316 | | | | 1,220 | | | | 5,121 | | | | 6,341 | | | | 1,432 | | | 2000 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Meramec | | MO | | | | | | | 1,113 | | | | 4,359 | | | | 378 | | | | 1,113 | | | | 4,737 | | | | 5,850 | | | | 1,322 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Charles Rock | | MO | | | | | | | 766 | | | | 3,040 | | | | 1,504 | | | | 766 | | | | 4,544 | | | | 5,310 | | | | 1,009 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Shackelford | | MO | | | | | | | 828 | | | | 3,290 | | | | 206 | | | | 828 | | | | 3,496 | | | | 4,324 | | | | 979 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-W.Washington | | MO | | | | | | | 734 | | | | 2,867 | | | | 2,503 | | | | 734 | | | | 5,370 | | | | 6,104 | | | | 1,139 | | | 1980/01 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Howdershell | | MO | | | | | | | 899 | | | | 3,596 | | | | 324 | | | | 899 | | | | 3,920 | | | | 4,819 | | | | 1,078 | | | 2000 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Lemay Ferry | | MO | | | | | | | 890 | | | | 3,552 | | | | 473 | | | | 890 | | | | 4,025 | | | | 4,915 | | | | 1,091 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | St Louis-Manchester | | MO | | | | | | | 697 | | | | 2,711 | | | | 225 | | | | 697 | | | | 2,936 | | | | 3,633 | | | | 809 | | | 2000 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 1,256 | | | | 4,946 | | | | 475 | | | | 1,256 | | | | 5,421 | | | | 6,677 | | | | 1,446 | | | 1998/03 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 605 | | | | 2,434 | | | | 197 | | | | 605 | | | | 2,631 | | | | 3,236 | | | | 698 | | | 2004 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 607 | | | | 2,428 | | | | 219 | | | | 607 | | | | 2,647 | | | | 3,254 | | | | 716 | | | 2004 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 1,073 | | | | 4,276 | | | | 98 | | | | 1,073 | | | | 4,374 | | | | 5,447 | | | | 1,184 | | | 2003 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 549 | | | | 2,180 | | | | 1,148 | | | | 549 | | | | 3,328 | | | | 3,877 | | | | 793 | | | 1998 | | | 6/22/2006 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 644 | | | | 2,542 | | | | 136 | | | | 644 | | | | 2,678 | | | | 3,322 | | | | 734 | | | 1999 | | | 6/22/2006 | | | | 5 to 40 years | | San Antonio-Blanco | | TX | | | | | | | 963 | | | | 3,836 | | | | 222 | | | | 963 | | | | 4,058 | | | | 5,021 | | | | 1,122 | | | 2004 | | | 6/22/2006 | | | | 5 to 40 years | | San Antonio-Broadway | | TX | | | | | | | 773 | | | | 3,060 | | | | 2,012 | | | | 773 | | | | 5,072 | | | | 5,845 | | | | 1,118 | | | 2000 | | | 6/22/2006 | | | | 5 to 40 years | | San Antonio-Huebner | | TX | | | | | | | 1,175 | | | | 4,624 | | | | 365 | | | | 1,175 | | | | 4,989 | | | | 6,164 | | | | 1,318 | | | 1998 | | | 6/22/2006 | | | | 5 to 40 years | | Nashua | | NH | | | | | | | 617 | | | | 2,422 | | | | 587 | | | | 617 | | | | 3,009 | | | | 3,626 | | | | 835 | | | 1989 | | | 6/29/2006 | | | | 5 to 40 years | | Lafayette | | LA | | | | | | | 699 | | | | 2,784 | | | | 3,809 | | | | 699 | | | | 6,593 | | | | 7,292 | | | | 1,276 | | | 1995/99 | | | 8/1/2006 | | | | 5 to 40 years | | Chattanooga-Lee Hwy II | | TN | | | | | | | 619 | | | | 2,471 | | | | 169 | | | | 619 | | | | 2,640 | | | | 3,259 | | | | 726 | | | 2002 | | | 8/7/2006 | | | | 5 to 40 years | | Montgomery-E.S.Blvd | | AL | | | | | | | 1,158 | | | | 4,639 | | | | 1,032 | | | | 1,158 | | | | 5,671 | | | | 6,829 | | | | 1,541 | | | 1996/97 | | | 9/28/2006 | | | | 5 to 40 years | | Auburn-Pepperell Pkwy | | AL | | | | | | | 590 | | | | 2,361 | | | | 599 | | | | 590 | | | | 2,960 | | | | 3,550 | | | | 776 | | | 1998 | | | 9/28/2006 | | | | 5 to 40 years | | Auburn-Gatewood Dr | | AL | | | | | | | 694 | | | | 2,758 | | | | 344 | | | | 694 | | | | 3,102 | | | | 3,796 | | | | 809 | | | 2002/03 | | | 9/28/2006 | | | | 5 to 40 years | | Columbus-Williams Rd | | GA | | | | | | | 736 | | | | 2,905 | | | | 330 | | | | 736 | | | | 3,235 | | | | 3,971 | | | | 871 | | | 2002/04/06 | | | 9/28/2006 | | | | 5 to 40 years | | Columbus-Miller Rd | | GA | | | | | | | 975 | | | | 3,854 | | | | 1,383 | | | | 975 | | | | 5,237 | | | | 6,212 | | | | 1,113 | | | 1995 | | | 9/28/2006 | | | | 5 to 40 years | | Columbus-Armour Rd | | GA | | | | | | | 0 | | | | 3,680 | | | | 324 | | | | 0 | | | | 4,004 | | | | 4,004 | | | | 1,056 | | | 2004/05 | | | 9/28/2006 | | | | 5 to 40 years | | Columbus-Amber Dr | | GA | | | | | | | 439 | | | | 1,745 | | | | 321 | | | | 439 | | | | 2,066 | | | | 2,505 | | | | 575 | | | 1998 | | | 9/28/2006 | | | | 5 to 40 years | | Concord | | NH | | | | | | | 813 | | | | 3,213 | | | | 2,041 | | | | 813 | | | | 5,254 | | | | 6,067 | | | | 1,283 | | | 2000 | | | 10/31/2006 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 929 | | | | 3,647 | | | | 233 | | | | 930 | | | | 3,879 | | | | 4,809 | | | | 1,016 | | | 2002/04 | | | 3/8/2007 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 1,537 | | | | 6,018 | | | | 611 | | | | 1,537 | | | | 6,629 | | | | 8,166 | | | | 1,694 | | | 2003/06 | | | 3/8/2007 | | | | 5 to 40 years | | Buffalo-Langner Rd | | NY | | | | | | | 532 | | | | 2,119 | | | | 3,492 | | | | 532 | | | | 5,611 | | | | 6,143 | | | | 908 | | | 1993/07 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Transit Rd | | NY | | | | | | | 437 | | | | 1,794 | | | | 702 | | | | 437 | | | | 2,496 | | | | 2,933 | | | | 600 | | | 1998 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Lake Ave | | NY | | | | | | | 638 | | | | 2,531 | | | | 2,939 | | | | 638 | | | | 5,470 | | | | 6,108 | | | | 853 | | | 1997 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Union Rd | | NY | | | | | | | 348 | | | | 1,344 | | | | 474 | | | | 348 | | | | 1,818 | | | | 2,166 | | | | 435 | | | 1998 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-NF Blvd | | NY | | | | | | | 323 | | | | 1,331 | | | | 249 | | | | 323 | | | | 1,580 | | | | 1,903 | | | | 409 | | | 1998 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Young St | | NY | | | | | | | 315 | | | | 2,185 | | | | 1,143 | | | | 316 | | | | 3,327 | | | | 3,643 | | | | 774 | | | 1999/00 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Sheridan Dr | | NY | | | | | | | 961 | | | | 3,827 | | | | 2,637 | | | | 961 | | | | 6,464 | | | | 7,425 | | | | 1,288 | | | 1999 | | | 3/30/2007 | | | | 5 to 40 years | | Buffalo-Transit Rd | | NY | | | | | | | 375 | | | | 1,498 | | | | 649 | | | | 375 | | | | 2,147 | | | | 2,522 | | | | 505 | | | 1990/95 | | | 3/30/2007 | | | | 5 to 40 years | | Rochester-Phillips Rd | | NY | | | | | | | 1,003 | | | | 4,002 | | | | 144 | | | | 1,003 | | | | 4,146 | | | | 5,149 | | | | 1,051 | | | 1999 | | | 3/30/2007 | | | | 5 to 40 years | | San Antonio-Foster | | TX | | | | | | | 676 | | | | 2,685 | | | | 431 | | | | 676 | | | | 3,116 | | | | 3,792 | | | | 814 | | | 2003/06 | | | 5/21/2007 | | | | 5 to 40 years | | Huntsville-Memorial Pkwy | | AL | | | | | | | 1,607 | | | | 6,338 | | | | 1,085 | | | | 1,677 | | | | 7,353 | | | | 9,030 | | | | 1,771 | | | 1989/06 | | | 6/1/2007 | | | | 5 to 40 years | | Huntsville-Madison 1 | | AL | | | | | | | 1,016 | | | | 4,013 | | | | 454 | | | | 1,017 | | | | 4,466 | | | | 5,483 | | | | 1,130 | | | 1993/07 | | | 6/1/2007 | | | | 5 to 40 years | | Biloxi-Gulfport | | MS | | | | | | | 1,423 | | | | 5,624 | | | | 197 | | | | 1,423 | | | | 5,821 | | | | 7,244 | | | | 1,469 | | | 1998/05 | | | 6/1/2007 | | | | 5 to 40 years | | Huntsville-Hwy 72 | | AL | | | | | | | 1,206 | | | | 4,775 | | | | 365 | | | | 1,206 | | | | 5,140 | | | | 6,346 | | | | 1,266 | | | 1998/06 | | | 6/1/2007 | | | | 5 to 40 years | | Mobile-Airport Blvd | | AL | | | | | | | 1,216 | | | | 4,819 | | | | 359 | | | | 1,216 | | | | 5,178 | | | | 6,394 | | | | 1,331 | | | 2000/07 | | | 6/1/2007 | | | | 5 to 40 years | | Biloxi-Gulfport | | MS | | | | | | | 1,345 | | | | 5,325 | | | | 120 | | | | 1,301 | | | | 5,489 | | | | 6,790 | | | | 1,360 | | | 2002/04 | | | 6/1/2007 | | | | 5 to 40 years | | Huntsville-Madison 2 | | AL | | | | | | | 1,164 | | | | 4,624 | | | | 297 | | | | 1,164 | | | | 4,921 | | | | 6,085 | | | | 1,233 | | | 2002/06 | | | 6/1/2007 | | | | 5 to 40 years | | Foley-Hwy 59 | | AL | | | | | | | 1,346 | | | | 5,474 | | | | 1,575 | | | | 1,346 | | | | 7,049 | | | | 8,395 | | | | 1,512 | | | 2003/06 | | | 6/1/2007 | | | | 5 to 40 years | | Pensacola6-Nine Mile | | FL | | | | | | | 1,029 | | | | 4,180 | | | | 194 | | | | 1,029 | | | | 4,374 | | | | 5,403 | | | | 1,178 | | | 2003/06 | | | 6/1/2007 | | | | 5 to 40 years | | Auburn-College St | | AL | | | | | | | 686 | | | | 2,732 | | | | 242 | | | | 686 | | | | 2,974 | | | | 3,660 | | | | 775 | | | 2003 | | | 6/1/2007 | | | | 5 to 40 years | | Biloxi-Gulfport | | MS | | | | | | | 1,811 | | | | 7,152 | | | | 140 | | | | 1,811 | | | | 7,292 | | | | 9,103 | | | | 1,782 | | | 2004/06 | | | 6/1/2007 | | | | 5 to 40 years | | Pensacola7-Hwy 98 | | FL | | | | | | | 732 | | | | 3,015 | | | | 82 | | | | 732 | | | | 3,097 | | | | 3,829 | | | | 822 | | | 2006 | | | 6/1/2007 | | | | 5 to 40 years | | Montgomery-Arrowhead | | AL | | | | | | | 1,075 | | | | 4,333 | | | | 302 | | | | 1,075 | | | | 4,635 | | | | 5,710 | | | | 1,166 | | | 2006 | | | 6/1/2007 | | | | 5 to 40 years | | Montgomery-McLemore | | AL | | | | | | | 885 | | | | 3,586 | | | | 253 | | | | 885 | | | | 3,839 | | | | 4,724 | | | | 945 | | | 2006 | | | 6/1/2007 | | | | 5 to 40 years | | Houston-Beaumont | | TX | | | | | | | 742 | | | | 3,024 | | | | 246 | | | | 742 | | | | 3,270 | | | | 4,012 | | | | 855 | | | 2002/05 | | | 11/14/2007 | | | | 5 to 40 years | | Hattiesburg-Classic | | MS | | | | | | | 444 | | | | 1,799 | | | | 228 | | | | 444 | | | | 2,027 | | | | 2,471 | | | | 521 | | | 1998 | | | 12/19/2007 | | | | 5 to 40 years | | Biloxi-Ginger | | MS | | | | | | | 384 | | | | 1,548 | | | | 139 | | | | 384 | | | | 1,687 | | | | 2,071 | | | | 405 | | | 2000 | | | 12/19/2007 | | | | 5 to 40 years | | Foley-7905 St Hwy 59 | | AL | | | | | | | 437 | | | | 1,757 | | | | 207 | | | | 437 | | | | 1,964 | | | | 2,401 | | | | 461 | | | 2000 | | | 12/19/2007 | | | | 5 to 40 years | |
Schedule III
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Jackson-Ridgeland | | MS | | | | | | | 1,479 | | | | 5,965 | | | | 546 | | | | 1,479 | | | | 6,511 | | | | 7,990 | | | | 1,529 | | | 1997/00 | | | 1/17/2008 | | | | 5 to 40 years | | Jackson-5111 | | MS | | | | | | | 1,337 | | | | 5,377 | | | | 240 | | | | 1,337 | | | | 5,617 | | | | 6,954 | | | | 1,308 | | | 2003 | | | 1/17/2008 | | | | 5 to 40 years | | Cincinnati-Robertson | | OH | | | | | | | 852 | | | | 3,409 | | | | 274 | | | | 852 | | | | 3,683 | | | | 4,535 | | | | 772 | | | 2003/04 | | | 12/31/2008 | | | | 5 to 40 years | | Richmond-Bridge Rd | | VA | | | | | | | 1,047 | | | | 5,981 | | | | 2,729 | | | | 1,047 | | | | 8,710 | | | | 9,757 | | | | 1,334 | | | 2009 | | | 10/1/2009 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 846 | | | | 4,095 | | | | 194 | | | | 846 | | | | 4,289 | | | | 5,135 | | | | 691 | | | 2000 | | | 12/28/2010 | | | | 5 to 40 years | | Charlotte-Wallace | | NC | | | | | | | 961 | | | | 3,702 | | | | 1,216 | | | | 961 | | | | 4,918 | | | | 5,879 | | | | 667 | | | 2008 | | | 12/29/2010 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 574 | | | | 3,975 | | | | 244 | | | | 574 | | | | 4,219 | | | | 4,793 | | | | 661 | | | 2008 | | | 12/29/2010 | | | | 5 to 40 years | | Charlotte-Westmoreland | | NC | | | | | | | 513 | | | | 5,317 | | | | 40 | | | | 513 | | | | 5,357 | | | | 5,870 | | | | 849 | | | 2009 | | | 12/29/2010 | | | | 5 to 40 years | | Charlotte-Matthews | | NC | | | | | | | 1,129 | | | | 4,767 | | | | 125 | | | | 1,129 | | | | 4,892 | | | | 6,021 | | | | 794 | | | 2009 | | | 12/29/2010 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 381 | | | | 3,575 | | | | 92 | | | | 381 | | | | 3,667 | | | | 4,048 | | | | 585 | | | 2008 | | | 12/29/2010 | | | | 5 to 40 years | | Charlotte-Zeb Morris | | NC | | | | | | | 965 | | | | 3,355 | | | | 103 | | | | 965 | | | | 3,458 | | | | 4,423 | | | | 555 | | | 2007 | | | 12/29/2010 | | | | 5 to 40 years | | Fair Lawn | | NJ | | | | | | | 796 | | | | 9,467 | | | | 312 | | | | 796 | | | | 9,779 | | | | 10,575 | | | | 1,388 | | | 1999 | | | 7/14/2011 | | | | 5 to 40 years | | Elizabeth | | NJ | | | | | | | 885 | | | | 3,073 | | | | 652 | | | | 885 | | | | 3,725 | | | | 4,610 | | | | 498 | | | 1988 | | | 7/14/2011 | | | | 5 to 40 years | | Saint Louis-High Ridge | | MO | | | | | | | 197 | | | | 2,132 | | | | 63 | | | | 197 | | | | 2,195 | | | | 2,392 | | | | 392 | | | 2007 | | | 7/28/2011 | | | | 5 to 40 years | | Atlanta-Decatur | | GA | | | | | | | 1,043 | | | | 8,252 | | | | 84 | | | | 1,043 | | | | 8,336 | | | | 9,379 | | | | 1,145 | | | 2006 | | | 8/17/2011 | | | | 5 to 40 years | | Houston-Humble | | TX | | | | | | | 825 | | | | 4,201 | | | | 325 | | | | 825 | | | | 4,526 | | | | 5,351 | | | | 679 | | | 1993 | | | 9/22/2011 | | | | 5 to 40 years | | Dallas-Fort Worth | | TX | | | | | | | 693 | | | | 3,552 | | | | 121 | | | | 693 | | | | 3,673 | | | | 4,366 | | | | 545 | | | 2001 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Hwy 6N | | TX | | | | | | | 1,243 | | | | 3,106 | | | | 128 | | | | 1,243 | | | | 3,234 | | | | 4,477 | | | | 499 | | | 2000 | | | 9/22/2011 | | | | 5 to 40 years | | Austin-Cedar Park | | TX | | | | | | | 1,559 | | | | 2,727 | | | | 91 | | | | 1,559 | | | | 2,818 | | | | 4,377 | | | | 440 | | | 1998 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Katy | | TX | | | | | | | 691 | | | | 4,435 | | | | 2,478 | | | | 691 | | | | 6,913 | | | | 7,604 | | | | 801 | | | 2000 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Deer Park | | TX | | | | | | | 1,012 | | | | 3,312 | | | | 222 | | | | 1,012 | | | | 3,534 | | | | 4,546 | | | | 512 | | | 1998 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-W. Little York | | TX | | | | | | | 575 | | | | 3,557 | | | | 185 | | | | 575 | | | | 3,742 | | | | 4,317 | | | | 586 | | | 1998 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Pasadena | | TX | | | | | | | 705 | | | | 4,223 | | | | 206 | | | | 705 | | | | 4,429 | | | | 5,134 | | | | 651 | | | 2000 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Friendswood | | TX | | | | | | | 1,168 | | | | 2,315 | | | | 215 | | | | 1,168 | | | | 2,530 | | | | 3,698 | | | | 391 | | | 1994 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Spring | | TX | | | | | | | 2,152 | | | | 3,027 | | | | 330 | | | | 2,152 | | | | 3,357 | | | | 5,509 | | | | 528 | | | 1993 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-W. Sam Houston | | TX | | | | | | | 402 | | | | 3,602 | | | | 259 | | | | 402 | | | | 3,861 | | | | 4,263 | | | | 542 | | | 1999 | | | 9/22/2011 | | | | 5 to 40 years | | Austin-Pond Springs Rd | | TX | | | | | | | 1,653 | | | | 4,947 | | | | 409 | | | | 1,653 | | | | 5,356 | | | | 7,009 | | | | 741 | | | 1984 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Spring | | TX | | | | | | | 1,474 | | | | 4,500 | | | | 31 | | | | 1,456 | | | | 4,549 | | | | 6,005 | | | | 678 | | | 2006 | | | 9/22/2011 | | | | 5 to 40 years | | Austin-Round Rock | | TX | | | | | | | 177 | | | | 3,223 | | | | 143 | | | | 177 | | | | 3,366 | | | | 3,543 | | | | 493 | | | 1999 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Silverado Dr | | TX | | | | | | | 1,438 | | | | 4,583 | | | | 128 | | | | 1,438 | | | | 4,711 | | | | 6,149 | | | | 680 | | | 2000 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Sugarland | | TX | | | | | | | 272 | | | | 3,236 | | | | 196 | | | | 272 | | | | 3,432 | | | | 3,704 | | | | 526 | | | 2001 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Westheimer Rd | | TX | | | | | | | 536 | | | | 2,687 | | | | 167 | | | | 536 | | | | 2,854 | | | | 3,390 | | | | 430 | | | 1997 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Wilcrest Dr | | TX | | | | | | | 1,478 | | | | 4,145 | | | | 173 | | | | 1,478 | | | | 4,318 | | | | 5,796 | | | | 606 | | | 1999 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Woodlands | | TX | | | | | | | 1,315 | | | | 6,142 | | | | 222 | | | | 1,315 | | | | 6,364 | | | | 7,679 | | | | 880 | | | 1997 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Woodlands | | TX | | | | | | | 3,189 | | | | 3,974 | | | | 177 | | | | 3,189 | | | | 4,151 | | | | 7,340 | | | | 581 | | | 2000 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Katy Freeway | | TX | | | | | | | 1,049 | | | | 5,175 | | | | 517 | | | | 1,049 | | | | 5,692 | | | | 6,741 | | | | 805 | | | 1999 | | | 9/22/2011 | | | | 5 to 40 years | | Houston-Webster | | TX | | | 1,852 | | | | 2,054 | | | | 2,138 | | | | 365 | | | | 2,054 | | | | 2,503 | | | | 4,557 | | | | 376 | | | 1982 | | | 9/22/2011 | | | | 5 to 40 years | | Newport News-Brick Kiln | | VA | | | | | | | 2,848 | | | | 5,892 | | | | 95 | | | | 2,848 | | | | 5,987 | | | | 8,835 | | | | 861 | | | 2004 | | | 9/29/2011 | | | | 5 to 40 years | | Pensacola-Palafox | | FL | | | | | | | 197 | | | | 4,281 | | | | 600 | | | | 197 | | | | 4,881 | | | | 5,078 | | | | 648 | | | 1996 | | | 11/15/2011 | | | | 5 to 40 years | | Miami | | FL | | | | | | | 2,960 | | | | 12,077 | | | | 123 | | | | 2,960 | | | | 12,200 | | | | 15,160 | | | | 1,446 | | | 2005 | | | 5/16/2012 | | | | 5 to 40 years | | Chicago - Lake Forest | | IL | | | | | | | 1,932 | | | | 11,606 | | | | 167 | | | | 1,932 | | | | 11,773 | | | | 13,705 | | | | 1,372 | | | 1996/2004 | | | 6/6/2012 | | | | 5 to 40 years | | Chicago - Schaumburg | | IL | | | | | | | 1,940 | | | | 4,880 | | | | 292 | | | | 1,940 | | | | 5,172 | | | | 7,112 | | | | 621 | | | 1998 | | | 6/6/2012 | | | | 5 to 40 years | | Norfolk - E. Little Creek | | VA | | | | | | | 911 | | | | 5,862 | | | | 73 | | | | 911 | | | | 5,935 | | | | 6,846 | | | | 723 | | | 2007 | | | 6/20/2012 | | | | 5 to 40 years | | Atlanta-14th St. | | GA | | | | | | | 1,560 | | | | 6,766 | | | | 27 | | | | 1,560 | | | | 6,793 | | | | 8,353 | | | | 798 | | | 2009 | | | 7/18/2012 | | | | 5 to 40 years | | Jacksonville - Middleburg | | FL | | | | | | | 644 | | | | 5,719 | | | | 78 | | | | 644 | | | | 5,797 | | | | 6,441 | | | | 676 | | | 2008 | | | 9/18/2012 | | | | 5 to 40 years | | Jacksonville - Orange Park | | FL | | | | | | | 772 | | | | 3,882 | | | | 76 | | | | 772 | | | | 3,958 | | | | 4,730 | | | | 490 | | | 2007 | | | 9/18/2012 | | | | 5 to 40 years | | Jacksonville - St. Augustine | | FL | | | | | | | 739 | | | | 3,858 | | | | 63 | | | | 739 | | | | 3,921 | | | | 4,660 | | | | 475 | | | 2007 | | | 9/18/2012 | | | | 5 to 40 years | | Atlanta - NE Expressway | | GA | | | | | | | 1,384 | | | | 9,266 | | | | 77 | | | | 1,384 | | | | 9,343 | | | | 10,727 | | | | 1,058 | | | 2009 | | | 9/18/2012 | | | | 5 to 40 years | | Atlanta - Kennesaw | | GA | | | | | | | 856 | | | | 4,315 | | | | 67 | | | | 856 | | | | 4,382 | | | | 5,238 | | | | 491 | | | 2008 | | | 9/18/2012 | | | | 5 to 40 years | | Atlanta - Lawrenceville | | GA | | | | | | | 855 | | | | 3,838 | | | | 122 | | | | 855 | | | | 3,960 | | | | 4,815 | | | | 482 | | | 2007 | | | 9/18/2012 | | | | 5 to 40 years | | Atlanta - Woodstock | | GA | | | | | | | 1,342 | | | | 4,692 | | | | 96 | | | | 1,342 | | | | 4,788 | | | | 6,130 | | | | 578 | | | 2009 | | | 9/18/2012 | | | | 5 to 40 years | | Raleigh-Durham | | NC | | | | | | | 2,337 | | | | 4,901 | | | | 219 | | | | 2,337 | | | | 5,120 | | | | 7,457 | | | | 608 | | | 2002 | | | 9/19/2012 | | | | 5 to 40 years | | Chicago - Lindenhurst | | IL | | | | | | | 1,213 | | | | 3,129 | | | | 207 | | | | 1,213 | | | | 3,336 | | | | 4,549 | | | | 382 | | | 1999/2006 | | | 9/27/2012 | | | | 5 to 40 years | | Chicago - Orland Park | | IL | | | | | | | 1,050 | | | | 5,894 | | | | 160 | | | | 1,050 | | | | 6,054 | | | | 7,104 | | | | 650 | | | 2007 | | | 12/10/2012 | | | | 5 to 40 years | | Phoenix-83rd | | AZ | | | | | | | 910 | | | | 3,656 | | | | 162 | | | | 910 | | | | 3,818 | | | | 4,728 | | | | 418 | | | 2008 | | | 12/18/2012 | | | | 5 to 40 years | | Chicago-North Austin | | IL | | | | | | | 2,593 | | | | 5,029 | | | | 240 | | | | 2,593 | | | | 5,269 | | | | 7,862 | | | | 548 | | | 2005 | | | 12/20/2012 | | | | 5 to 40 years | | Chicago-North Western | | IL | | | | | | | 1,718 | | | | 6,466 | | | | 643 | | | | 1,798 | | | | 7,029 | | | | 8,827 | | | | 695 | | | 2005 | | | 12/20/2012 | | | | 5 to 40 years | | Chicago-West Pershing | | IL | | | | | | | 395 | | | | 3,226 | | | | 105 | | | | 395 | | | | 3,331 | | | | 3,726 | | | | 340 | | | 2008 | | | 12/20/2012 | | | | 5 to 40 years | | Chicago - North Broadway | | IL | | | | | | | 2,373 | | | | 9,869 | | | | 126 | | | | 2,373 | | | | 9,995 | | | | 12,368 | | | | 1,010 | | | 2011 | | | 12/20/2012 | | | | 5 to 40 years | | Brandenton | | FL | | | | | | | 1,501 | | | | 3,775 | | | | 186 | | | | 1,501 | | | | 3,961 | | | | 5,462 | | | | 422 | | | 1997 | | | 12/21/2012 | | | | 5 to 40 years | | Ft. Myers-Cleveland | | FL | | | | | | | 515 | | | | 2,280 | | | | 138 | | | | 515 | | | | 2,418 | | | | 2,933 | | | | 275 | | | 1998 | | | 12/21/2012 | | | | 5 to 40 years | | Clearwater-Drew St. | | FL | | | | | | | 1,234 | | | | 4,018 | | | | 126 | | | | 1,234 | | | | 4,144 | | | | 5,378 | | | | 458 | | | 2000 | | | 12/21/2012 | | | | 5 to 40 years | | Clearwater-N. Myrtle | | FL | | | | | | | 1,555 | | | | 5,978 | | | | 141 | | | | 1,555 | | | | 6,119 | | | | 7,674 | | | | 654 | | | 2000 | | | 12/21/2012 | | | | 5 to 40 years | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Austin-Cedar Park | | TX | | | | | | | 1,246 | | | | 5,740 | | | | 155 | | | | 1,246 | | | | 5,895 | | | | 7,141 | | | | 615 | | | 2006 | | | 12/27/2012 | | | | 5 to 40 years | | Austin-Round Rock | | TX | | | | | | | 774 | | | | 3,327 | | | | 146 | | | | 774 | | | | 3,473 | | | | 4,247 | | | | 363 | | | 2004 | | | 12/27/2012 | | | | 5 to 40 years | | Austin-Round Rock | | TX | | | | | | | 632 | | | | 1,985 | | | | 88 | | | | 632 | | | | 2,073 | | | | 2,705 | | | | 244 | | | 2007 | | | 12/27/2012 | | | | 5 to 40 years | | Chicago-Aurora | | IL | | | | | | | 269 | | | | 3,126 | | | | 320 | | | | 269 | | | | 3,446 | | | | 3,715 | | | | 336 | | | 2010 | | | 12/31/2012 | | | | 5 to 40 years | | San Antonio - Marbach | | TX | | | | | | | 337 | | | | 2,005 | | | | 191 | | | | 337 | | | | 2,196 | | | | 2,533 | | | | 238 | | | 2005 | | | 2/11/2013 | | | | 5 to 40 years | | Long Island - Lindenhurst | | NY | | | | | | | 2,122 | | | | 8,735 | | | | 517 | | | | 2,122 | | | | 9,252 | | | | 11,374 | | | | 857 | | | 2002 | | | 3/22/2013 | | | | 5 to 40 years | | Boston - Somerville | | MA | | | | | | | 1,553 | | | | 7,186 | | | | 21 | | | | 1,506 | | | | 7,254 | | | | 8,760 | | | | 727 | | | 2008 | | | 3/22/2013 | | | | 5 to 40 years | | Long Island - Deer Park | | NY | | | | | | | 1,096 | | | | 8,276 | | | | 89 | | | | 1,096 | | | | 8,365 | | | | 9,461 | | | | 731 | | | 2009 | | | 8/29/2013 | | | | 5 to 40 years | | Long Island - Amityville | | NY | | | | | | | 2,224 | | | | 10,102 | | | | 46 | | | | 2,224 | | | | 10,148 | | | | 12,372 | | | | 879 | | | 2009 | | | 8/29/2013 | | | | 5 to 40 years | | Colorado Springs - Scarlet | | CO | | | | | | | 629 | | | | 5,201 | | | | 184 | | | | 629 | | | | 5,385 | | | | 6,014 | | | | 442 | | | 2006 | | | 9/30/2013 | | | | 5 to 40 years | | Toms River - Route 37 W | | NJ | | | | | | | 1,843 | | | | 6,544 | | | | 99 | | | | 1,843 | | | | 6,643 | | | | 8,486 | | | | 575 | | | 2007 | | | 11/26/2013 | | | | 5 to 40 years | | Lake Worth - S Military | | FL | | | | | | | 868 | | | | 5,306 | | | | 709 | | | | 868 | | | | 6,015 | | | | 6,883 | | | | 490 | | | 2000 | | | 12/4/2013 | | | | 5 to 40 years | | Austin-Round Rock | | TX | | | | | | | 1,547 | | | | 5,226 | | | | 153 | | | | 1,547 | | | | 5,379 | | | | 6,926 | | | | 449 | | | 2008 | | | 12/27/2013 | | | | 5 to 40 years | | Hartford-Bristol | | CT | | | | | | | 1,174 | | | | 8,816 | | | | 81 | | | | 1,174 | | | | 8,897 | | | | 10,071 | | | | 674 | | | 2004 | | | 12/30/2013 | | | | 5 to 40 years | | Piscataway–New Brunswick | | NJ | | | | | | | 1,639 | | | | 10,946 | | | | 83 | | | | 1,639 | | | | 11,029 | | | | 12,668 | | | | 862 | | | 2006 | | | 12/30/2013 | | | | 5 to 40 years | | Fort Lauderdale - 3rd Ave | | FL | | | | | | | 7,629 | | | | 11,918 | | | | 199 | | | | 7,629 | | | | 12,117 | | | | 19,746 | | | | 949 | | | 1998 | | | 1/9/2014 | | | | 5 to 40 years | | West Palm - Mercer | | FL | | | | | | | 15,680 | | | | 17,520 | | | | 504 | | | | 15,680 | | | | 18,024 | | | | 33,704 | | | | 1,437 | | | 2000 | | | 1/9/2014 | | | | 5 to 40 years | | Austin - Manchaca | | TX | | | | | | | 3,999 | | | | 4,297 | | | | 665 | | | | 3,999 | | | | 4,962 | | | | 8,961 | | | | 409 | | | 1998/2002 | | | 1/17/2014 | | | | 5 to 40 years | | San Antonio | | TX | | | | | | | 2,235 | | | | 6,269 | | | | 328 | | | | 2,235 | | | | 6,597 | | | | 8,832 | | | | 514 | | | 2012 | | | 2/10/2014 | | | | 5 to 40 years | | Portland | | ME | | | | | | | 2,146 | | | | 6,418 | | | | 235 | | | | 2,146 | | | | 6,653 | | | | 8,799 | | | | 525 | | | 2000 | | | 2/11/2014 | | | | 5 to 40 years | | Portland-Topsham | | ME | | | | | | | 493 | | | | 5,234 | | | | 98 | | | | 493 | | | | 5,332 | | | | 5,825 | | | | 411 | | | 2006 | | | 2/11/2014 | | | | 5 to 40 years | | Chicago - St. Charles | | IL | | | | | | | 1,837 | | | | 6,301 | | | | 538 | | | | 1,837 | | | | 6,839 | | | | 8,676 | | | | 506 | | | 2004/2013 | | | 3/31/2014 | | | | 5 to 40 years | | Chicago - Ashland | | IL | | | | | | | 598 | | | | 4,789 | | | | 178 | | | | 598 | | | | 4,967 | | | | 5,565 | | | | 355 | | | 2014 | | | 5/5/2014 | | | | 5 to 40 years | | San Antonio - Walzem | | TX | | | | | | | 2,000 | | | | 3,749 | | | | 495 | | | | 2,000 | | | | 4,244 | | | | 6,244 | | | | 316 | | | 1997 | | | 5/13/2014 | | | | 5 to 40 years | | St. Louis - Woodson | | MO | | | | | | | 2,444 | | | | 5,966 | | | | 1,587 | | | | 2,444 | | | | 7,553 | | | | 9,997 | | | | 549 | | | 1998 | | | 5/22/2014 | | | | 5 to 40 years | | St. Louis - Mexico | | MO | | | | | | | 638 | | | | 3,518 | | | | 1,778 | | | | 638 | | | | 5,296 | | | | 5,934 | | | | 336 | | | 1998 | | | 5/22/2014 | | | | 5 to 40 years | | St. Louis - Vogel | | MO | | | | | | | 2,010 | | | | 3,544 | | | | 232 | | | | 2,010 | | | | 3,776 | | | | 5,786 | | | | 303 | | | 2000 | | | 5/22/2014 | | | | 5 to 40 years | | St. Louis - Manchester | | MO | | | | | | | 508 | | | | 2,042 | | | | 396 | | | | 508 | | | | 2,438 | | | | 2,946 | | | | 201 | | | 1996 | | | 5/22/2014 | | | | 5 to 40 years | | St. Louis - North Highway | | MO | | | | | | | 1,989 | | | | 4,045 | | | | 567 | | | | 1,989 | | | | 4,612 | | | | 6,601 | | | | 365 | | | 1997 | | | 5/22/2014 | | | | 5 to 40 years | | St. Louis - Dunn | | MO | | | | | | | 1,538 | | | | 4,510 | | | | 386 | | | | 1,538 | | | | 4,896 | | | | 6,434 | | | | 390 | | | 2000 | | | 5/22/2014 | | | | 5 to 40 years | | Trenton-Hamilton Twnship | | NJ | | | | | | | 5,161 | | | | 7,063 | | | | 841 | | | | 5,161 | | | | 7,904 | | | | 13,065 | | | | 522 | | | 1980 | | | 6/5/2014 | | | | 5 to 40 years | | NY Metro-Fishkill | | NY | | | | | | | 1,741 | | | | 6,006 | | | | 309 | | | | 1,741 | | | | 6,315 | | | | 8,056 | | | | 424 | | | 2005 | | | 6/11/2014 | | | | 5 to 40 years | | Atlanta-Peachtree City | | GA | | | | | | | 2,263 | | | | 4,931 | | | | 440 | | | | 2,263 | | | | 5,371 | | | | 7,634 | | | | 392 | | | 2007 | | | 6/12/2014 | | | | 5 to 40 years | | Wayne - Willowbrook | | NJ | | | | | | | 0 | | | | 2,292 | | | | 196 | | | | 0 | | | | 2,488 | | | | 2,488 | | | | 411 | | | 2000 | | | 6/12/2014 | | | | 5 to 40 years | | Asbury Park - 1st Ave | | NJ | | | | | | | 819 | | | | 4,734 | | | | 548 | | | | 819 | | | | 5,282 | | | | 6,101 | | | | 368 | | | 2003 | | | 6/18/2014 | | | | 5 to 40 years | | Farmingdale - Tinton Falls | | NJ | | | | | | | 1,097 | | | | 5,618 | | | | 320 | | | | 1,097 | | | | 5,938 | | | | 7,035 | | | | 425 | | | 2004 | | | 6/18/2014 | | | | 5 to 40 years | | Lakewood - Route 70 | | NJ | | | | | | | 626 | | | | 4,549 | | | | 188 | | | | 626 | | | | 4,737 | | | | 5,363 | | | | 316 | | | 2003 | | | 6/18/2014 | | | | 5 to 40 years | | Matawan - Highway 34 | | NJ | | | | | | | 1,512 | | | | 9,707 | | | | 724 | | | | 1,512 | | | | 10,431 | | | | 11,943 | | | | 668 | | | 2005 | | | 7/10/2014 | | | | 5 to 40 years | | St. Petersburg - Gandy | | FL | | | | | | | 2,958 | | | | 6,904 | | | | 217 | | | | 2,958 | | | | 7,121 | | | | 10,079 | | | | 446 | | | 2007 | | | 8/28/2014 | | | | 5 to 40 years | | Chesapeake - Campostella | | VA | | | | | | | 2,349 | | | | 3,875 | | | | 282 | | | | 2,349 | | | | 4,157 | | | | 6,506 | | | | 272 | | | 2000 | | | 9/5/2014 | | | | 5 to 40 years | | San Antonio-Castle Hills | | TX | | | | | | | 2,658 | | | | 8,190 | | | | 415 | | | | 4,544 | | | | 6,719 | | | | 11,263 | | | | 424 | | | 2002 | | | 9/10/2014 | | | | 5 to 40 years | | Chattanooga - Broad St | | TN | | | | | | | 759 | | | | 5,608 | | | | 181 | | | | 759 | | | | 5,789 | | | | 6,548 | | | | 366 | | | 2014 | | | 9/18/2014 | | | | 5 to 40 years | | New Orleans-Kenner | | LA | | | | | | | 5,771 | | | | 10,375 | | | | 427 | | | | 5,771 | | | | 10,802 | | | | 16,573 | | | | 652 | | | 2008 | | | 10/10/2014 | | | | 5 to 40 years | | Orlando-Celebration | | FL | | | | | | | 6,091 | | | | 4,641 | | | | 356 | | | | 6,091 | | | | 4,997 | | | | 11,088 | | | | 297 | | | 2006 | | | 10/21/2014 | | | | 5 to 40 years | | Austin-Cedar Park | | TX | | | | | | | 4,196 | | | | 8,374 | | | | 547 | | | | 4,196 | | | | 8,921 | | | | 13,117 | | | | 510 | | | 2003 | | | 10/28/2014 | | | | 5 to 40 years | | Chicago - Pulaski | | IL | | | | | | | 889 | | | | 4,700 | | | | 624 | | | | 889 | | | | 5,324 | | | | 6,213 | | | | 293 | | | 2014 | | | 11/14/2014 | | | | 5 to 40 years | | Houston - Gessner | | TX | | | | | | | 1,599 | | | | 5,813 | | | | 508 | | | | 1,599 | | | | 6,321 | | | | 7,920 | | | | 343 | | | 2006 | | | 12/18/2014 | | | | 5 to 40 years | | New England - Danbury | | CT | | | | | | | 9,747 | | | | 18,374 | | | | 80 | | | | 9,747 | | | | 18,454 | | | | 28,201 | | | | 892 | | | 1999 | | | 2/2/2015 | | | | 5 to 40 years | | New England - Milford | | CT | | | | | | | 9,642 | | | | 23,352 | | | | 117 | | | | 9,642 | | | | 23,469 | | | | 33,111 | | | | 1,139 | | | 1999 | | | 2/2/2015 | | | | 5 to 40 years | | Long Island - Hicksville | | NY | | | | | | | 5,153 | | | | 27,401 | | | | 158 | | | | 5,153 | | | | 27,559 | | | | 32,712 | | | | 1,392 | | | 2002 | | | 2/2/2015 | | | | 5 to 40 years | | Long Island - Farmingdale | | NY | | | | | | | 4,931 | | | | 20,415 | | | | 94 | | | | 4,931 | | | | 20,509 | | | | 25,440 | | | | 994 | | | 2000 | | | 2/2/2015 | | | | 5 to 40 years | | Chicago - Alsip | | IL | | | | | | | 2,579 | | | | 4,066 | | | | 84 | | | | 2,579 | | | | 4,150 | | | | 6,729 | | | | 204 | | | 1986 | | | 2/5/2015 | | | | 5 to 40 years | | Chicago - N. Pulaski | | IL | | | | | | | 1,719 | | | | 6,971 | | | | 372 | | | | 1,719 | | | | 7,343 | | | | 9,062 | | | | 344 | | | 2015 | | | 3/9/2015 | | | | 5 to 40 years | | Fort Myers - Tamiami Trail | | FL | | | | | | | 1,793 | | | | 4,382 | | | | 158 | | | | 1,793 | | | | 4,540 | | | | 6,333 | | | | 234 | | | 2004 | | | 4/1/2015 | | | | 5 to 40 years | | Dallas - Allen | | TX | | | | | | | 3,864 | | | | 4,777 | | | | 224 | | | | 3,864 | | | | 5,001 | | | | 8,865 | | | | 226 | | | 2002 | | | 4/16/2015 | | | | 5 to 40 years | | Jacksonville - Beach Blvd. | | FL | | | | | | | 2,118 | | | | 6,501 | | | | 67 | | | | 2,118 | | | | 6,568 | | | | 8,686 | | | | 312 | | | 2013 | | | 4/21/2015 | | | | 5 to 40 years | | Space Coast - Vero Beach | | FL | | | | | | | 1,169 | | | | 4,409 | | | | 324 | | | | 1,169 | | | | 4,733 | | | | 5,902 | | | | 204 | | | 1997 | | | 5/1/2015 | | | | 5 to 40 years | | Port St. Lucie - Federal Hwy | | FL | | | | | | | 4,957 | | | | 6,045 | | | | 201 | | | | 4,957 | | | | 6,246 | | | | 11,203 | | | | 293 | | | 2001 | | | 5/1/2015 | | | | 5 to 40 years | | West Palm - N. Military | | FL | | | | | | | 3,372 | | | | 4,206 | | | | 134 | | | | 3,372 | | | | 4,340 | | | | 7,712 | | | | 216 | | | 1985 | | | 5/1/2015 | | | | 5 to 40 years | | Ft. Myers - Bonita Springs | | FL | | | | | | | 2,687 | | | | 5,012 | | | | 212 | | | | 2,687 | | | | 5,224 | | | | 7,911 | | | | 250 | | | 2000 | | | 5/1/2015 | | | | 5 to 40 years | | Phoenix - Tatum Blvd. | | AZ | | | | | | | 852 | | | | 7,052 | | | | 159 | | | | 852 | | | | 7,211 | | | | 8,063 | | | | 302 | | | 2015 | | | 6/16/2015 | | | | 5 to 40 years | | Boston - Lynn | | MA | | | | | | | 2,110 | | | | 8,182 | | | | 79 | | | | 2,110 | | | | 8,261 | | | | 10,371 | | | | 379 | | | 2015 | | | 6/16/2015 | | | | 5 to 40 years | | Syracuse - Ainsely Dr. | | NY | | | | | | | 2,711 | | | | 3,795 | | | | 109 | | | | 2,711 | | | | 3,904 | | | | 6,615 | | | | 171 | | | 2000 | | | 8/25/2015 | | | | 5 to 40 years | |
| | | | | | 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Syracuse - Cicero | | NY | | | | | | | 668 | | | | 1,957 | | | | 80 | | | | 668 | | | | 2,037 | | | | 2,705 | | | | 82 | | | 2002 | | | 8/25/2015 | | | | 5 to 40 years | | Syracuse - Camillus | | NY | | | | | | | 473 | | | | 5,368 | | | | 85 | | | | 473 | | | | 5,453 | | | | 5,926 | | | | 210 | | | 2005/2011 | | | 8/25/2015 | | | | 5 to 40 years | | Syracuse - Manlius | | NY | | | | | | | 834 | | | | 1,705 | | | | 45 | | | | 834 | | | | 1,750 | | | | 2,584 | | | | 64 | | | 2000 | | | 8/25/2015 | | | | 5 to 40 years | | Charlotte - Brookshire Blvd. | | NC | | | | | | | 718 | | | | 2,977 | | | | 805 | | | | 718 | | | | 3,782 | | | | 4,500 | | | | 150 | | | 2000 | | | 9/1/2015 | | | | 5 to 40 years | | Charleston III | | SC | | | | | | | 7,604 | | | | 9,086 | | | | 169 | | | | 7,604 | | | | 9,255 | | | | 16,859 | | | | 322 | | | 2005 | | | 9/1/2015 | | | | 5 to 40 years | | Myrtle Beach II | | SC | | | | | | | 2,511 | | | | 6,147 | | | | 219 | | | | 2,511 | | | | 6,366 | | | | 8,877 | | | | 253 | | | 1999 | | | 9/1/2015 | | | | 5 to 40 years | | Columbia VI | | SC | | | | | | | 3,640 | | | | 3,452 | | | | 64 | | | | 3,640 | | | | 3,516 | | | | 7,156 | | | | 153 | | | 2004/2008 | | | 9/1/2015 | | | | 5 to 40 years | | Hilton Head - Bluffton | | SC | | | | | | | 3,084 | | | | 3,192 | | | | 89 | | | | 3,084 | | | | 3,281 | | | | 6,365 | | | | 127 | | | 1998 | | | 9/1/2015 | | | | 5 to 40 years | | Philadelphia - Eagleville | | PA | | | | | | | 1,926 | | | | 4,498 | | | | 97 | | | | 1,926 | | | | 4,595 | | | | 6,521 | | | | 150 | | | 2010 | | | 12/30/2015 | | | | 5 to 40 years | | Orlando - University | | FL | | | | | | | 882 | | | | 5,756 | | | | 241 | | | | 882 | | | | 5,997 | | | | 6,879 | | | | 150 | | | 2001 | | | 1/6/2016 | | | | 5 to 40 years | | Orlando - N. Powers | | FL | | | | | | | 2,567 | | | | 2,838 | | | | 51 | | | | 2,567 | | | | 2,889 | | | | 5,456 | | | | 77 | | | 1997 | | | 1/6/2016 | | | | 5 to 40 years | | Sarasota - North Port | | FL | | | | | | | 4,884 | | | | 10,014 | | | | 109 | | | | 4,884 | | | | 10,123 | | | | 15,007 | | | | 116 | | | 2001/2006 | | | 1/6/2016 | | | | 5 to 40 years | | Los Angeles – Commercial | | CA | | | | | | | 6,512 | | | | 12,352 | | | | 327 | | | | 6,512 | | | | 12,679 | | | | 19,191 | | | | 319 | | | 2004 | | | 1/21/2016 | | | | 5 to 40 years | | Los Angeles - E. Slauson | | CA | | | | | | | 3,998 | | | | 13,547 | | | | 220 | | | | 3,998 | | | | 13,767 | | | | 17,765 | | | | 323 | | | 2012 | | | 1/21/2016 | | | | 5 to 40 years | | Los Angeles - Westminster | | CA | | | | | | | 4,636 | | | | 14,826 | | | | 107 | | | | 4,636 | | | | 14,933 | | | | 19,569 | | | | 347 | | | 2006 | | | 1/21/2016 | | | | 5 to 40 years | | Los Angeles - Calabasas | | CA | | | | | | | 13,274 | | | | 10,419 | | | | 333 | | | | 13,274 | | | | 10,752 | | | | 24,026 | | | | 267 | | | 2004/2014 | | | 1/21/2016 | | | | 5 to 40 years | | Portsmouth - Kingston | | NH | | | | | | | 1,713 | | | | 2,709 | | | | 29 | | | | 1,713 | | | | 2,738 | | | | 4,451 | | | | 67 | | | 2003 | | | 1/21/2016 | | | | 5 to 40 years | | Portsmouth - Danville | | NH | | | | | | | 1,615 | | | | 3,333 | | | | 36 | | | | 1,615 | | | | 3,369 | | | | 4,984 | | | | 95 | | | 2003 | | | 1/21/2016 | | | | 5 to 40 years | | Portsmouth - Hampton Falls | | NH | | | | | | | 2,445 | | | | 6,295 | | | | 23 | | | | 2,445 | | | | 6,318 | | | | 8,763 | | | | 160 | | | 2005 | | | 1/21/2016 | | | | 5 to 40 years | | Portsmouth - Lee | | NH | | | | | | | 3,078 | | | | 2,861 | | | | 38 | | | | 3,078 | | | | 2,899 | | | | 5,977 | | | | 70 | | | 2000 | | | 1/21/2016 | | | | 5 to 40 years | | Portsmouth - Heritage | | NH | | | | | | | 4,430 | | | | 26,040 | | | | 46 | | | | 4,430 | | | | 26,086 | | | | 30,516 | | | | 606 | | | 1985/1999 | | | 1/21/2016 | | | | 5 to 40 years | | Boston - Salisbury | | MA | | | | | | | 4,880 | | | | 6,342 | | | | 71 | | | | 4,880 | | | | 6,413 | | | | 11,293 | | | | 182 | | | 2003 | | | 1/21/2016 | | | | 5 to 40 years | | Dallas - Frisco | | TX | | | | | | | 6,191 | | | | 5,088 | | | | 140 | | | | 6,191 | | | | 5,228 | | | | 11,419 | | | | 128 | | | 2003 | | | 1/21/2016 | | | | 5 to 40 years | | Dallas - McKinney | | TX | | | | | | | 8,097 | | | | 7,047 | | | | 62 | | | | 8,097 | | | | 7,109 | | | | 15,206 | | | | 174 | | | 2003 | | | 1/21/2016 | | | | 5 to 40 years | | Dallas - McKinney | | TX | | | | | | | 5,508 | | | | 6,462 | | | | 61 | | | | 5,508 | | | | 6,523 | | | | 12,031 | | | | 156 | | | 2002 | | | 1/21/2016 | | | | 5 to 40 years | | Phoenix - 48th | | AZ | | | | | | | 988 | | | | 8,224 | | | | 40 | | | | 988 | | | | 8,264 | | | | 9,252 | | | | 201 | | | 2015 | | | 2/1/2016 | | | | 5 to 40 years | | Miami | | FL | | | | | | | 2,294 | | | | 8,980 | | | | 131 | | | | 2,294 | | | | 9,111 | | | | 11,405 | | | | 222 | | | 2016 | | | 2/12/2016 | | | | 5 to 40 years | | Philadelphia - Glenolden | | PA | | | | | | | 1,768 | | | | 3,879 | | | | 78 | | | | 1,768 | | | | 3,957 | | | | 5,725 | | | | 98 | | | 1970 | | | 2/17/2016 | | | | 5 to 40 years | | Denver - Thornton | | CO | | | | | | | 4,528 | | | | 7,915 | | | | 85 | | | | 4,528 | | | | 8,000 | | | | 12,528 | | | | 175 | | | 2011 | | | 2/29/2016 | | | | 5 to 40 years | | Los Angeles - Costa Mesa | | CA | | | | | | | 17,976 | | | | 25,145 | | | | 372 | | | | 17,976 | | | | 25,517 | | | | 43,493 | | | | 491 | | | 2005 | | | 3/16/2016 | | | | 5 to 40 years | | Los Angeles - Irving | | CA | | | | | | | 0 | | | | 6,318 | | | | 211 | | | | 0 | | | | 6,529 | | | | 6,529 | | | | 264 | | | 1985 | | | 3/16/2016 | | | | 5 to 40 years | | Los Angeles - Durante | | CA | | | | | | | 4,671 | | | | 13,908 | | | | 80 | | | | 4,671 | | | | 13,988 | | | | 18,659 | | | | 269 | | | 2015 | | | 3/16/2016 | | | | 5 to 40 years | | Los Angeles - Wildomar | | CA | | | | | | | 6,728 | | | | 10,340 | | | | 186 | | | | 6,728 | | | | 10,526 | | | | 17,254 | | | | 210 | | | 2005 | | | 3/17/2016 | | | | 5 to 40 years | | Los Angeles - Torrance | | CA | | | | | | | 17,445 | | | | 18,839 | | | | 402 | | | | 17,445 | | | | 19,241 | | | | 36,686 | | | | 370 | | | 2003 | | | 4/11/2016 | | | | 5 to 40 years | | New Haven - Wallingford | | CT | | | | | | | 3,618 | | | | 5,286 | | | | 181 | | | | 3,618 | | | | 5,467 | | | | 9,085 | | | | 104 | | | 2000 | | | 4/14/2016 | | | | 5 to 40 years | | New Haven - Waterbury | | CT | | | | | | | 2,524 | | | | 5,618 | | | | 74 | | | | 2,524 | | | | 5,692 | | | | 8,216 | | | | 109 | | | 2001 | | | 4/14/2016 | | | | 5 to 40 years | | New York - Mahopac | | NY | | | 4,207 | | | | 2,373 | | | | 5,089 | | | | 161 | | | | 2,373 | | | | 5,250 | | | | 7,623 | | | | 87 | | | 1991/1944 | | | 4/26/2016 | | | | 5 to 40 years | | New York - Mount Vernon | | NY | | | | | | | 3,337 | | | | 13,112 | | | | 75 | | | | 3,337 | | | | 13,187 | | | | 16,524 | | | | 226 | | | 2013 | | | 4/26/2016 | | | | 5 to 40 years | | Pt. St. Lucie | | FL | | | 4,002 | | | | 4,140 | | | | 7,176 | | | | 232 | | | | 4,140 | | | | 7,408 | | | | 11,548 | | | | 161 | | | 2002 | | | 5/2/2016 | | | | 5 to 40 years | | Dallas - Lewisville | | TX | | | | | | | 2,333 | | | | 8,302 | | | | 122 | | | | 2,333 | | | | 8,424 | | | | 10,757 | | | | 149 | | | 2007 | | | 5/5/2016 | | | | 5 to 40 years | | Buffalo - Cayuga | | NY | | | | | | | 499 | | | | 5,198 | | | | 106 | | | | 499 | | | | 5,304 | | | | 5,803 | | | | 80 | | | 2006 | | | 5/19/2016 | | | | 5 to 40 years | | Buffalo - Lackawanna | | NY | | | | | | | 215 | | | | 2,323 | | | | 240 | | | | 215 | | | | 2,563 | | | | 2,778 | | | | 38 | | | 2006 | | | 5/19/2016 | | | | 5 to 40 years | | Austin - S. Congress | | TX | | | | | | | 1,030 | | | | 8,163 | | | | 83 | | | | 1,030 | | | | 8,246 | | | | 9,276 | | | | 106 | | | 1984 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - W Braker | | TX | | | | | | | 1,210 | | | | 14,833 | | | | 53 | | | | 1,210 | | | | 14,886 | | | | 16,096 | | | | 189 | | | 2003 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - Highway 290 | | TX | | | | | | | 930 | | | | 12,269 | | | | 46 | | | | 930 | | | | 12,315 | | | | 13,245 | | | | 159 | | | 1999 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - Killeen | | TX | | | | | | | 3,070 | | | | 20,782 | | | | 111 | | | | 3,070 | | | | 20,893 | | | | 23,963 | | | | 282 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - Round Rock | | TX | | | | | | | 830 | | | | 6,129 | | | | 44 | | | | 830 | | | | 6,173 | | | | 7,003 | | | | 80 | | | 1986 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - Georgetown | | TX | | | | | | | 1,530 | | | | 10,647 | | | | 54 | | | | 1,530 | | | | 10,701 | | | | 12,231 | | | | 145 | | | 2001/2015 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - Pflugerville | | TX | | | | | | | 750 | | | | 9,238 | | | | 49 | | | | 750 | | | | 9,287 | | | | 10,037 | | | | 120 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Algonquin | | IL | | | | | | | 1,430 | | | | 14,958 | | | | 26 | | | | 1,430 | | | | 14,984 | | | | 16,414 | | | | 193 | | | 2006 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Carpentersville | | IL | | | | | | | 350 | | | | 4,710 | | | | 14 | | | | 350 | | | | 4,724 | | | | 5,074 | | | | 61 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - W. Addison | | IL | | | | | | | 2,770 | | | | 25,112 | | | | 85 | | | | 2,770 | | | | 25,197 | | | | 27,967 | | | | 319 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - State St. | | IL | | | | | | | 1,190 | | | | 19,159 | | | | 40 | | | | 1,190 | | | | 19,199 | | | | 20,389 | | | | 241 | | | 2009 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago-W. Grand | | IL | | | | | | | 1,720 | | | | 10,628 | | | | 58 | | | | 1,720 | | | | 10,686 | | | | 12,406 | | | | 134 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Libertyville | | IL | | | | | | | 3,670 | | | | 26,660 | | | | 126 | | | | 3,670 | | | | 26,786 | | | | 30,456 | | | | 338 | | | 2009 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Aurora | | IL | | | | | | | 1,090 | | | | 20,033 | | | | 49 | | | | 1,090 | | | | 20,082 | | | | 21,172 | | | | 257 | | | 2009 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Morton Grove | | IL | | | | | | | 1,610 | | | | 14,914 | | | | 40 | | | | 1,610 | | | | 14,954 | | | | 16,564 | | | | 189 | | | 2009 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Bridgeview | | IL | | | | | | | 3,770 | | | | 19,990 | | | | 74 | | | | 3,770 | | | | 20,064 | | | | 23,834 | | | | 262 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Addison | | IL | | | | | | | 1,340 | | | | 11,881 | | | | 33 | | | | 1,340 | | | | 11,914 | | | | 13,254 | | | | 153 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - W Diversey | | IL | | | | | | | 1,670 | | | | 10,811 | | | | 24 | | | | 1,670 | | | | 10,835 | | | | 12,505 | | | | 136 | | | 2010 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Elmhurst | | IL | | | | | | | 670 | | | | 18,729 | | | | 20 | | | | 670 | | | | 18,749 | | | | 19,419 | | | | 236 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Elgin | | IL | | | | | | | 1,130 | | | | 12,584 | | | | 71 | | | | 1,130 | | | | 12,655 | | | | 13,785 | | | | 162 | | | 2003 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - N. Paulina St., | | IL | | | | | | | 5,600 | | | | 12,721 | | | | 24 | | | | 5,600 | | | | 12,745 | | | | 18,345 | | | | 162 | | | 2006 | | | 7/15/2016 | | | | 5 to 40 years | |
Schedule III
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | Life on which depreciation | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | Date | | | in latest income statement | | Description | | ST | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | Acquired | | | is completed | | Chicago - Matteson | | IL | | | | | | | 1,590 | | | | 12,053 | | | | 32 | | | | 1,590 | | | | 12,085 | | | | 13,675 | | | | 161 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - S. Heights | | IL | | | | | | | 1,050 | | | | 4,960 | | | | 45 | | | | 1,050 | | | | 5,005 | | | | 6,055 | | | | 68 | | | 2006 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - W. Grand | | IL | | | | | | | 1,780 | | | | 8,928 | | | | 80 | | | | 1,780 | | | | 9,008 | | | | 10,788 | | | | 113 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - W 30th St | | IL | | | | | | | 600 | | | | 15,574 | | | | 47 | | | | 600 | | | | 15,621 | | | | 16,221 | | | | 197 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Mokena | | IL | | | | | | | 3,230 | | | | 18,623 | | | | 195 | | | | 3,230 | | | | 18,818 | | | | 22,048 | | | | 243 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Barrington | | IL | | | | | | | 1,890 | | | | 9,395 | | | | 65 | | | | 1,890 | | | | 9,460 | | | | 11,350 | | | | 123 | | | 2015 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Naperville | | IL | | | | | | | 2,620 | | | | 11,933 | | | | 62 | | | | 2,620 | | | | 11,995 | | | | 14,615 | | | | 160 | | | 2015 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Forest Park | | IL | | | | | | | 1,100 | | | | 10,087 | | | | 35 | | | | 1,100 | | | | 10,122 | | | | 11,222 | | | | 130 | | | 2015 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - La Grange | | IL | | | | | | | 960 | | | | 13,019 | | | | 28 | | | | 960 | | | | 13,047 | | | | 14,007 | | | | 167 | | | 2015 | | | 7/15/2016 | | | | 5 to 40 years | | Chicago - Glenview | | IL | | | | | | | 3,210 | | | | 8,519 | | | | 35 | | | | 3,210 | | | | 8,554 | | | | 11,764 | | | | 114 | | | 2014/2015 | | | 7/15/2016 | | | | 5 to 40 years | | Dallas - Richardson | | TX | | | | | | | 630 | | | | 10,282 | | | | 43 | | | | 630 | | | | 10,325 | | | | 10,955 | | | | 136 | | | 2001 | | | 7/15/2016 | | | | 5 to 40 years | | Dallas - Arlington | | TX | | | | | | | 790 | | | | 12,785 | | | | 44 | | | | 790 | | | | 12,829 | | | | 13,619 | | | | 164 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Dallas - Plano | | TX | | | | | | | 1,370 | | | | 10,166 | | | | 34 | | | | 1,370 | | | | 10,200 | | | | 11,570 | | | | 130 | | | 1998 | | | 7/15/2016 | | | | 5 to 40 years | | Dallas - Mesquite | | TX | | | | | | | 620 | | | | 8,771 | | | | 32 | | | | 620 | | | | 8,803 | | | | 9,423 | | | | 113 | | | 2016 | | | 7/15/2016 | | | | 5 to 40 years | | Dallas - S Good Latimer | | TX | | | | | | | 4,030 | | | | 8,029 | | | | 64 | | | | 4,030 | | | | 8,093 | | | | 12,123 | | | | 104 | | | 2016 | | | 7/15/2016 | | | | 5 to 40 years | | Boulder - Arapahoe | | CO | | | | | | | 3,690 | | | | 12,074 | | | | 28 | | | | 3,690 | | | | 12,102 | | | | 15,792 | | | | 158 | | | 1992 | | | 7/15/2016 | | | | 5 to 40 years | | Boulder - Odell | | CO | | | | | | | 2,650 | | | | 15,304 | | | | 30 | | | | 2,650 | | | | 15,334 | | | | 17,984 | | | | 201 | | | 1998 | | | 7/15/2016 | | | | 5 to 40 years | | Boulder - Arapahoe | | CO | | | | | | | 11,540 | | | | 15,571 | | | | 34 | | | | 11,540 | | | | 15,605 | | | | 27,145 | | | | 204 | | | 1984 | | | 7/15/2016 | | | | 5 to 40 years | | Boulder - Broadway | | CO | | | | | | | 2,670 | | | | 5,623 | | | | 42 | | | | 2,670 | | | | 5,665 | | | | 8,335 | | | | 75 | | | 1992 | | | 7/15/2016 | | | | 5 to 40 years | | Houston - Westpark | | TX | | | | | | | 2,760 | | | | 8,288 | | | | 96 | | | | 2,760 | | | | 8,384 | | | | 11,144 | | | | 110 | | | 1996 | | | 7/15/2016 | | | | 5 to 40 years | | Houston - C. Jester | | TX | | | | | | | 8,080 | | | | 10,114 | | | | 96 | | | | 8,080 | | | | 10,210 | | | | 18,290 | | | | 132 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Houston - Bay Pointe | | TX | | | | | | | 1,960 | | | | 9,585 | | | | 65 | | | | 1,960 | | | | 9,650 | | | | 11,610 | | | | 125 | | | 1972 | | | 7/15/2016 | | | | 5 to 40 years | | Houston - FM 529 | | TX | | | | | | | 680 | | | | 3,951 | | | | 48 | | | | 680 | | | | 3,999 | | | | 4,679 | | | | 53 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Houston - Jones | | TX | | | | | | | 1,260 | | | | 2,382 | | | | 44 | | | | 1,260 | | | | 2,426 | | | | 3,686 | | | | 35 | | | 1994 | | | 7/15/2016 | | | | 5 to 40 years | | Jackson - Flowood | | MS | | | | | | | 680 | | | | 20,066 | | | | 36 | | | | 680 | | | | 20,102 | | | | 20,782 | | | | 260 | | | 2000 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Spencer | | NV | | | | | | | 1,020 | | | | 25,152 | | | | 16 | | | | 1,020 | | | | 25,168 | | | | 26,188 | | | | 320 | | | 2000 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Maule | | NV | | | | | | | 2,510 | | | | 11,822 | | | | 15 | | | | 2,510 | | | | 11,837 | | | | 14,347 | | | | 151 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Wigwam | | NV | | | | | | | 590 | | | | 16,838 | | | | 3 | | | | 590 | | | | 16,841 | | | | 17,431 | | | | 212 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Stufflebeam | | NV | | | | | | | 350 | | | | 6,977 | | | | 86 | | | | 350 | | | | 7,063 | | | | 7,413 | | | | 91 | | | 1996 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Ft. Apache | | NV | | | | | | | 1,470 | | | | 11,047 | | | | 15 | | | | 1,470 | | | | 11,062 | | | | 12,532 | | | | 144 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - North | | NV | | | | | | | 390 | | | | 7,042 | | | | 20 | | | | 390 | | | | 7,062 | | | | 7,452 | | | | 91 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Warm Springs | | NV | | | | | | | 1,340 | | | | 5,141 | | | | 51 | | | | 1,340 | | | | 5,192 | | | | 6,532 | | | | 83 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Conestoga | | NV | | | | | | | 1,420 | | | | 10,295 | | | | 21 | | | | 1,420 | | | | 10,316 | | | | 11,736 | | | | 138 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Warm Springs | | NV | | | | | | | 1,080 | | | | 16,436 | | | | 15 | | | | 1,080 | | | | 16,451 | | | | 17,531 | | | | 209 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Nellis | | NV | | | | | | | 790 | | | | 5,233 | | | | 7 | | | | 790 | | | | 5,240 | | | | 6,030 | | | | 73 | | | 1995 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Cheyenne | | NV | | | | | | | 1,470 | | | | 17,366 | | | | 17 | | | | 1,470 | | | | 17,383 | | | | 18,853 | | | | 231 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Dean Martin | | NV | | | | | | | 3,050 | | | | 23,333 | | | | 6 | | | | 3,050 | | | | 23,339 | | | | 26,389 | | | | 327 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Flamingo | | NV | | | | | | | 980 | | | | 13,451 | | | | 23 | | | | 980 | | | | 13,474 | | | | 14,454 | | | | 171 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - North | | NV | | | | | | | 330 | | | | 15,651 | | | | 19 | | | | 330 | | | | 15,670 | | | | 16,000 | | | | 199 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Henderson | | NV | | | | | | | 570 | | | | 12,676 | | | | 37 | | | | 570 | | | | 12,713 | | | | 13,283 | | | | 167 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - North | | NV | | | | | | | 520 | | | | 10,105 | | | | 6 | | | | 520 | | | | 10,111 | | | | 10,631 | | | | 132 | | | 2002 | | | 7/15/2016 | | | | 5 to 40 years | | Las Vegas - Farm | | NV | | | | | | | 1,510 | | | | 9,388 | | | | 13 | | | | 1,510 | | | | 9,401 | | | | 10,911 | | | | 121 | | | 2008 | | | 7/15/2016 | | | | 5 to 40 years | | Los Angeles - Torrance | | CA | | | | | | | 5,250 | | | | 32,363 | | | | 61 | | | | 5,250 | | | | 32,424 | | | | 37,674 | | | | 412 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Los Angeles - Irvine | | CA | | | | | | | 2,520 | | | | 18,402 | | | | 134 | | | | 2,520 | | | | 18,536 | | | | 21,056 | | | | 234 | | | 2002 | | | 7/15/2016 | | | | 5 to 40 years | | Los Angeles - Palm Desert | | CA | | | | | | | 2,660 | | | | 16,589 | | | | 69 | | | | 2,660 | | | | 16,658 | | | | 19,318 | | | | 216 | | | 2002 | | | 7/15/2016 | | | | 5 to 40 years | | Milwaukee - Green Bay | | WI | | | | | | | 750 | | | | 14,720 | | | | 3 | | | | 750 | | | | 14,723 | | | | 15,473 | | | | 189 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Orlando - Winter Garden | | FL | | | | | | | 640 | | | | 6,688 | | | | 38 | | | | 640 | | | | 6,726 | | | | 7,366 | | | | 87 | | | 2006 | | | 7/15/2016 | | | | 5 to 40 years | | Orlando - Longwood | | FL | | | | | | | 1,230 | | | | 9,586 | | | | 27 | | | | 1,230 | | | | 9,613 | | | | 10,843 | | | | 123 | | | 2000 | | | 7/15/2016 | | | | 5 to 40 years | | Orlando - Overland | | FL | | | | | | | 1,080 | | | | 3,713 | | | | 29 | | | | 1,080 | | | | 3,742 | | | | 4,822 | | | | 49 | | | 2000 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Calvine | | CA | | | | | | | 2,280 | | | | 17,069 | | | | 20 | | | | 2,280 | | | | 17,089 | | | | 19,369 | | | | 220 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Folsom | | CA | | | | | | | 1,200 | | | | 22,150 | | | | 16 | | | | 1,200 | | | | 22,166 | | | | 23,366 | | | | 279 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Pell | | CA | | | | | | | 540 | | | | 8,874 | | | | 12 | | | | 540 | | | | 8,886 | | | | 9,426 | | | | 115 | | | 2004 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Goldenland | | CA | | | | | | | 2,010 | | | | 8,944 | | | | 10 | | | | 2,010 | | | | 8,954 | | | | 10,964 | | | | 122 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Woodland | | CA | | | | | | | 860 | | | | 10,569 | | | | 18 | | | | 860 | | | | 10,587 | | | | 11,447 | | | | 135 | | | 2003 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - El Camino | | CA | | | | | | | 1,450 | | | | 12,239 | | | | 7 | | | | 1,450 | | | | 12,246 | | | | 13,696 | | | | 158 | | | 2002 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Bayou | | CA | | | | | | | 1,640 | | | | 21,603 | | | | 10 | | | | 1,640 | | | | 21,613 | | | | 23,253 | | | | 277 | | | 2005 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Calvine | | CA | | | | | | | 2,120 | | | | 24,650 | | | | 7 | | | | 2,120 | | | | 24,657 | | | | 26,777 | | | | 318 | | | 2003 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - El Dorado | | CA | | | | | | | 1,610 | | | | 24,829 | | | | 13 | | | | 1,610 | | | | 24,842 | | | | 26,452 | | | | 319 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Sacramento - Fruitridge | | CA | | | | | | | 1,480 | | | | 15,695 | | | | 126 | | | | 1,480 | | | | 15,821 | | | | 17,301 | | | | 207 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | Salt Lake City - W. Jordan | | UT | | | | | | | 780 | | | | 12,301 | | | | -88 | | | | 780 | | | | 12,213 | | | | 12,993 | | | | 154 | | | 2007 | | | 7/15/2016 | | | | 5 to 40 years | | San Antonio - US 281 | | TX | | | | | | | 1,380 | | | | 8,457 | | | | 57 | | | | 1,380 | | | | 8,514 | | | | 9,894 | | | | 108 | | | 2003 | | | 7/15/2016 | | | | 5 to 40 years | | Austin - San Marcos | | TX | | | | | | | 990 | | | | 7,323 | | | | 48 | | | | 990 | | | | 7,371 | | | | 8,361 | | | | 96 | | | 2016 | | | 7/15/2016 | | | | 5 to 40 years | | Charleston | | SC | | | | | | | 920 | | | | 7,700 | | | | 25 | | | | 920 | | | | 7,725 | | | | 8,645 | | | | 87 | | | 2016 | | | 7/29/2016 | | | | 5 to 40 years | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost to Company | | | Cost Capitalized Subsequent to Acquisition | | | Gross Amount at Which Carried at Close of Period | | | | | | | | | | | | Life on which depreciation | | | | | | | Encum | | | | | | Building, Equipment and | | | Building, Equipment and | | | | | | Building, Equipment and | | | | | | Accum. | | | Date of | | | Date | | | in latest income statement | | Description | | ST | | | brance | | | Land | | | Impvmts. | | | Impvmts. | | | Land | | | Impvmts. | | | Total | | | Deprec. | | | Const. | | | Acquired | | | is completed | | Denver - Westminster | | | CO | | | | | | | | 5,062 | | | | 3,679 | | | | 172 | | | | 5,062 | | | | 3,851 | | | | 8,913 | | | | 40 | | | | 2000 | | | | 8/4/2016 | | | | 5 to 40 years | | Chicago - Arlington Hgts | | | IL | | | | | | | | 370 | | | | 8,513 | | | | 3 | | | | 370 | | | | 8,516 | | | | 8,886 | | | | 18 | | | | 2016 | | | | 11/17/2016 | | | | 5 to 40 years | | Orlando - Curry Ford | | | FL | | | | 2,966 | | | | 3,268 | | | | 6,378 | | | | 23 | | | | 3,268 | | | | 6,401 | | | | 9,669 | | | | 13 | | | | 2016 | | | | 12/20/2016 | | | | 5 to 40 years | | Construction in Progress | | | | | | | | | | | 0 | | | | 0 | | | | 14,524 | | | | 0 | | | | 14,524 | | | | 14,524 | | | | 0 | | | | 2015 | | | | | | | | | | Corporate Office | | | NY | | | | | | | | 0 | | | | 68 | | | | 33,969 | | | | 1,633 | | | | 32,404 | | | | 34,037 | | | | 17,651 | | | | 2000 | | | | 5/1/2000 | | | | 5 to 40 years | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 13,027 | | | $ | 772,601 | | | $ | 2,965,619 | | | $ | 505,088 | | | $ | 786,764 | | | $ | 3,456,544 | | | $ | 4,243,308 | | | $ | 535,704 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 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 |
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 | 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 |
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 | 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 |
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 | 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 |
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 | 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 | | | | | | | |
90
Life Storage, Inc. Schedule III (dollars in thousands) | | | | | | | | December 31, | | | December 31, | | | December 31, | | | | December 31, 2016 | | December 31, 2015 | | December 31, 2014 | | | 2017 | | | 2016 | | | 2015 | | Cost: | | | | | | | | | | | | | | | | | | | Balance at beginning of period | | $ | 2,491,702 | | | $ | 2,177,983 | | | $ | 1,864,637 | | | $ | 4,243,308 | | | $ | 2,491,702 | | | $ | 2,177,983 | | Additions during period: | | | | | | | | | | | | | | | | | | | Acquisitions through foreclosure | | | — | | | | — | | | | — | | | — | | | — | | | — | | Other acquisitions | | | 1,714,029 | | | 278,572 | | | 286,691 | | | | 22,638 | | | | 1,714,029 | | | | 278,572 | | Improvements, etc. | | | 73,385 | | | 42,046 | | | 35,097 | | | | 84,191 | | | | 73,385 | | | | 42,046 | | | | | | | | | | | | | | 106,829 | | | | 1,787,414 | | | | 320,618 | | | | | 1,787,414 | | | 320,618 | | | 321,788 | | | Deductions during period: | | | | | | | | | | | | | | | | | | | Cost of assets disposed | | | (35,808 | ) | | (6,899 | ) | | (8,442 | ) | | | (28,727 | ) | | | (35,808 | ) | | | (6,899 | ) | Impairment write-down | | | — | | | | — | | | | — | | | — | | | — | | | — | | Casualty loss | | | — | | | | — | | | | — | | | — | | | — | | | — | | | | | | | | | | | | | | (28,727 | ) | | | (35,808 | ) | | | (6,899 | ) | | | | (35,808 | ) | | (6,899 | ) | | (8,442 | ) | | | | | | | | | | | | | Balance at close of period | | $ | 4,243,308 | | | $ | 2,491,702 | | | $ | 2,177,983 | | | $ | 4,321,410 | | | $ | 4,243,308 | | | $ | 2,491,702 | | | | | | | | | | | | | Accumulated Depreciation: | | | | | | | | | | | | | | | | | | | Balance at beginning of period | | $ | 465,195 | | | $ | 411,701 | | | $ | 366,472 | | | $ | 535,704 | | | $ | 465,195 | | | $ | 411,701 | | Additions during period: | | | | | | | | | | | | | | | | | | | Depreciation expense | | | 87,219 | | | 55,101 | | | 47,656 | | | | 102,674 | | | | 87,219 | | | | 55,101 | | | | | | | | | | | | | | | | 87,219 | | | 55,101 | | | 47,656 | | | | 102,674 | | | | 87,219 | | | | 55,101 | | Deductions during period: | | | | | | | | | | | | | | | | | | | Accumulated depreciation of assets disposed | | | (16,710 | ) | | (1,607 | ) | | (2,427 | ) | | | (14,064 | ) | | | (16,710 | ) | | | (1,607 | ) | Accumulated depreciation on impaired asset | | | — | | | | — | | | | — | | | — | | | — | | | — | | Accumulated depreciation on casualty loss | | | — | | | | — | | | | — | | | — | | | — | | | — | | | | | (16,710 | ) | | (1,607 | ) | | (2,427 | ) | | | (14,064 | ) | | | (16,710 | ) | | | (1,607 | ) | | | | | | | | | | | | Balance at close of period | | $ | 535,704 | | | $ | 465,195 | | | $ | 411,701 | | | $ | 624,314 | | | $ | 535,704 | | | $ | 465,195 | | | | | | | | | | | | |
The aggregate cost of real estate for U.S. federal income tax purposes is $4,326,173. $4,388,101 at December 31, 2017.91 103
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