Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 22, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SELF | |
Entity Registrant Name | Global Self Storage, Inc. | |
Entity Central Index Key | 0001031235 | |
Current Fiscal Year End Date | --12-31 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,733,967 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Real estate assets, net | $ 53,489,884 | $ 53,811,737 |
Cash and cash equivalents | 1,475,505 | 1,526,203 |
Restricted cash | 205,375 | 186,063 |
Investments in securities | 1,722,056 | 1,567,607 |
Accounts receivable | 91,340 | 67,604 |
Prepaid expenses and other assets | 283,681 | 263,767 |
Line of credit issuance costs | 431,365 | 471,196 |
Goodwill | 694,121 | 694,121 |
Total assets | 58,393,327 | 58,588,298 |
Liabilities and equity | ||
Note payable | 19,163,819 | 19,269,250 |
Accounts payable and accrued expenses | 2,284,943 | 2,113,172 |
Total liabilities | 21,448,762 | 21,382,422 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, $0.01 par value: 50,000,000 shares authorized, no shares outstanding | ||
Common stock, $0.01 par value: 450,000,000 shares authorized, 7,733,967 and 7,692,624 issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 77,340 | 76,926 |
Additional paid in capital | 34,015,649 | 33,961,903 |
Retained earnings | 2,851,576 | 3,167,047 |
Total equity | 36,944,565 | 37,205,876 |
Total liabilities and equity | $ 58,393,327 | $ 58,588,298 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, shares issued | 7,733,967 | 7,692,624 |
Common stock, shares outstanding | 7,733,967 | 7,692,624 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Rental income | $ 2,038,684 | $ 1,902,101 |
Other property related income | 67,827 | 59,784 |
Total revenues | 2,106,511 | 1,961,885 |
Expenses | ||
Property operations | 913,349 | 849,693 |
General and administrative | 555,928 | 465,423 |
Depreciation and amortization | 351,644 | 348,873 |
Business development | 8,250 | |
Total expenses | 1,829,171 | 1,663,989 |
Operating income | 277,340 | 297,896 |
Other income (expense) | ||
Dividend and interest income | 17,200 | 23,346 |
Unrealized gain (loss) on marketable equity securities | 154,449 | (41,907) |
Interest expense | (261,166) | (220,209) |
Total other income (expense), net | (89,517) | (238,770) |
Net income | $ 187,823 | $ 59,126 |
Earnings per share | ||
Basic | $ 0.02 | $ 0.01 |
Diluted | $ 0.02 | $ 0.01 |
Weighted average shares outstanding | ||
Basic | 7,630,722 | 7,619,469 |
Diluted | 7,637,733 | 7,619,489 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 187,823 | $ 59,126 |
Comprehensive gain (loss) | $ 187,823 | $ 59,126 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 3 months ended Mar. 31, 2019 - USD ($) | Total | Common Stock | Paid in Capital | Retained Earnings |
Beginning Balances at Dec. 31, 2018 | $ 37,205,876 | $ 76,926 | $ 33,961,903 | $ 3,167,047 |
Beginning Balance, shares at Dec. 31, 2018 | 7,692,624 | 7,692,624 | ||
Restricted stock grants issued | $ 414 | (414) | ||
Restricted stock grants issued, Shares | 41,343 | |||
Compensation expense related to stock-based awards | $ 54,160 | 54,160 | ||
Net income | 187,823 | 187,823 | ||
Dividends | (503,294) | (503,294) | ||
Ending Balance at Mar. 31, 2019 | $ 36,944,565 | $ 77,340 | $ 34,015,649 | $ 2,851,576 |
Ending Balance, shares at Mar. 31, 2019 | 7,733,967 | 7,733,967 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Net income | $ 187,823 | $ 59,126 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Depreciation and amortization | 351,644 | 348,873 |
Unrealized (gain) loss on marketable equity securities | (154,449) | 41,907 |
Amortization of loan procurement costs | 50,298 | 10,609 |
Compensation expense related to stock-based awards | 54,160 | 884 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (23,736) | 22,104 |
Prepaid expenses and other assets | (19,914) | (41,544) |
Accounts payable and accrued expenses | 167,521 | 125,650 |
Net cash provided by operating activities | 613,347 | 567,609 |
Cash flows from investing activities | ||
Construction | (22,401) | (28,008) |
Improvements and equipment additions | (7,390) | (24,171) |
Net cash used in investing activities | (29,791) | (52,179) |
Cash flows from financing activities | ||
Principal payments on note payable | (115,898) | |
Dividends paid | (499,044) | (495,266) |
Net cash used in financing activities | (614,942) | (495,266) |
Net (decrease) increase in cash and cash equivalents | (31,386) | 20,164 |
Cash, cash equivalents, and restricted cash, beginning of period | 1,712,266 | 2,256,415 |
Cash, cash equivalents, and restricted cash, end of period | 1,680,880 | 2,276,579 |
Supplemental schedule of cash flow information | ||
Interest paid | $ 207,200 | $ 209,600 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION Global Self Storage, Inc. a Maryland corporation (the “Company,” “we,” “our,” or “us”), is a self-administered and self-managed real estate investment trust (“REIT”) that owns, operates, manages, acquires, develops and redevelops The Company has elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended (the “IRC”). To the extent the Company continues to qualify as a REIT, it will not be subject to tax, with certain limited exceptions, on the taxable income that is distributed to its stockholders. The Company invests in self storage properties by acquiring stores through its wholly owned subsidiaries. At March 31, 2019, the Company owned and operated eleven stores. The Company operates primarily in one segment: rental operations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Upon deregistration as an investment company, the Company's status changed to an operating company from an investment company since it no longer met the assessment of an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The Company discontinued applying the guidance in ASC 946 and began to account for the change in status prospectively by accounting for its investments in accordance with other U.S. generally accepted accounting principles (“GAAP”) topics as of the date of the change in status. The accompanying unaudited consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with GAAP for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. Reclassifications Certain amounts from the prior year have been reclassified to conform to current year presentation as described below. Cash, Cash Equivalents, and Restricted Cash The Company’s cash is deposited with financial institutions located throughout the United States and at times may exceed federally insured limits. The Company considers all highly liquid investments, which may include money market fund shares, with a maturity of three months or less to be cash equivalents. Restricted cash is comprised of escrowed funds deposited with a bank relating to capital expenditures. The carrying amount reported on the balance sheet for cash, cash equivalents, and restricted cash approximates fair value. Income Taxes The Company has elected to be treated as a REIT under the IRC. In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. In managements’ opinion, the requirements to maintain these elections are being fulfilled. The Company is subject to certain state and local taxes. The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The Company has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years (2015 – 2017), or is expected to be taken in the Company’s 2018 tax returns. Legislation, commonly known as the Tax Cuts and Jobs Act (“TCJA”), was signed into law on December 22, 2017. The TCJA makes significant changes to the U.S. federal income tax rates for taxation of individuals and corporations (including REITs), generally effective for taxable years beginning after December 31, 2017. Marketable Equity Securities Investments in equity securities that have readily determinable fair values are accounted for equity securities measured at fair value. Gains or losses from changes in the fair value of equity securities are recorded in net income, until the investment is sold or otherwise disposed of, or until the investment is determined to be other-than-temporarily impaired. The specific identification method is used to determine the realized gain or loss on investments sold or otherwise disposed. Fair value is determined using a valuation hierarchy generally by reference to an active trading market, using quoted closing or bid prices. Judgment is used to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. Real Estate Assets Real estate assets are carried at the appreciated value as of January 19, 2016, the effective date of the Company’s change in status to an operating company, less accumulated depreciation from that date. Purchases subsequent to the effective date of the change in status are carried at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Property taxes and other costs associated with development incurred during a construction period are capitalized. A construction period begins when expenditures for a real estate asset have been made and activities that are necessary to prepare the asset for its intended use are in progress. A construction period ends when an asset is substantially complete and ready for its intended use. Acquisition costs are accounted for in accordance with Accounting Standard Update ("ASU") No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January I, 2018 (see section entitled Recent Accounting Pronouncements") and are generally capitalized. When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements, and equipment are recorded based upon their respective fair values as estimated by management. In allocating the purchase price for an acquisition, the Company determines whether the acquisition includes intangible assets or liabilities. The Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Internal and external transaction costs associated with acquisitions or dispositions of real estate, as well as repairs and maintenance costs, are charged to expense as incurred. Major replacements and betterments that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and improvements, which are generally between 5 and 39 years. Derivative Financial Instruments The Company carries all derivative financial instruments on the balance sheet at fair value. Fair value of derivatives is determined by reference to observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company’s use of derivative instruments has been limited to interest cap agreements. The fair values of derivative instruments are included in prepaid expenses and other assets in the accompanying balance sheets. For derivative instruments not designated as cash flow hedges, the unrealized gains and losses are included in interest expense in the accompanying statements of operations. For derivatives designated as cash flow hedges, the effective portion of the changes in the fair value of the derivatives is initially reported in accumulated other comprehensive income (loss) in the Company’s balance sheets and subsequently reclassified into earnings when the hedged transaction affects earnings. The valuation of interest rate cap agreements is determined using widely accepted valuation techniques. This analysis reflects the contractual terms of derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses generally consist of property tax accruals, unearned rental income, and trade payables. At March 31, 2019 and December 31, 2018, accounts payable and accrued expenses included a $900,000 contingent payment in connection with the purchase of a property made in 2016. Revenue and Expense Recognition Revenues from stores, which are primarily composed of rental income earned pursuant to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. Ancillary revenues from sales of merchandise and tenant insurance and other income are recognized when earned. The Company accrues for property tax expense based upon actual amounts billed and, in some circumstances, estimates and historical trends when bills or assessments have not been received from the taxing authorities or such bills and assessments are in dispute. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations and general and administrative expense are expensed as incurred. Credit Risk Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and certain portions of accounts receivable including rents receivable from our tenants. Cash and cash equivalents are on deposit with highly rated commercial banks. Evaluation of Asset Impairment The Company evaluates its real estate assets, intangible assets consisting of in-place leases, and goodwill for impairment annually. If there are indicators of impairment and we determine that an asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. Stock-based Compensation The measurement and recognition of compensation expense for all stock-based payment awards to employees are based on estimated fair values. Awards granted are valued at fair value and any compensation expense is recognized over the service periods of each award. Loan Procurement Costs In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. Jf there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company's revolving credit facility remain in Line of credit issuance costs, net of amortization on the Company's consolidated balance sheets. The costs are amortized over the estimated life of the related debt. Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from management’s estimates. Recently Issued Accounting Standards In August 2017, the FASB issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The standard became effective on January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard became effective on January 1, 2019. This standard will not have a material impact on operating results of financial condition, because all lease revenues are derived from month to month self storage leases and the Company does not incur a material amount of lease expense. |
Marketable Equity Securities
Marketable Equity Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Equity Securities | 3. MARKETABLE EQUITY SECURITIES Investments in marketable equity securities as of March 31, 2019 consisted of the following: Gross Unrealized Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 966,569 $ — $ 1,722,056 Total investment in marketable equity securities $ 755,487 $ 966,569 $ — $ 1,722,056 |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate Assets | 4. REAL ESTATE ASSETS The carrying value of the Company’s real estate assets is summarized as follows: Self storage properties, at cost: Beginning balance $ 51,879,327 Improvements and equipment additions 7,390 Ending balance 51,886,717 Land Beginning balance 5,493,814 Ending balance 5,493,814 Accumulated depreciation: Beginning balance (3,656,220 ) Depreciation expense (351,644 ) Ending balance (4,007,864 ) Construction in progress: Beginning balance 94,816 Current development 22,401 Ending balance 117,217 Total real estate assets at March 31, 2019 $ 53,489,884 The Company expects to break ground and begin construction on the Millbrook, NY expansion in the second quarter of 2019, which, when completed, will add approximately 16,500 of gross square feet of all-climate-controlled units. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5 . FAIR VALUE MEASUREMENTS GAAP 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. The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2019: Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,722,056 $ — $ — $ 1,722,056 Total assets at fair value $ 1,722,056 $ — $ — $ 1,722,056 There were no assets transferred from level 1 to level 2 as of March 31, 2019. The Company did not have any assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of March 31, 2019. The fair values of financial instruments including cash and cash equivalents, restricted cash, accounts receivable, and accounts payable approximated their respective carrying values as of March 31, 2019. The aggregate carrying value of the Company’s debt was $19,654,710 as of March 31, 2019. The estimated fair value of the Company’s debt was approximately $19.0 million as of March 31, 2019. This estimate was based on market interest rates for comparable obligations, general market conditions, and maturity. The Company’s debt is classified as level 2 of the fair value hierarchy. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | 6. The Company’s objective in using an interest rate derivative is to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company uses an interest rate cap to manage interest rate risk. The Company carries the premium paid for the interest rate cap as an asset on the balance sheet at fair value. The change in the unrealized gain or loss of the premium is recorded as an increase or decrease to interest expense. The following table summarizes the terms of the Company’s derivative financial instrument as of March 31, 2019: Notional Amount Effective Maturity Product March 31, 2019 December 31, 2018 Strike Date Date Cap Agreement $ 7,500,000 $ 7,500,000 3.50 % - 4.00% 12/24/2018 12/20/2021 |
Note Payable
Note Payable | 3 Months Ended |
Mar. 31, 2019 | |
Notes Payable [Abstract] | |
Note Payable | 7. NOTE PAYABLE On June 24, 2016, certain wholly-owned subsidiaries (“Secured Subsidiaries”) of the Company entered into a loan agreement and certain other related agreements (collectively, the “Loan Agreement”) between the Secured Subsidiaries and Insurance Strategy Funding IV, LLC (the “Lender”). Under the Loan Agreement, the Secured Subsidiaries are borrowing from the Lender in the principal amount of $20 million pursuant to a promissory note (the “Promissory Note”). The Promissory Note bears an interest rate equal to 4.192% per annum (effective interest rate 4.40%) and is due to mature on July 1, 2036. Pursuant to a security agreement (the “Security Agreement”), the obligations under the Loan Agreement are secured by certain real estate assets owned by the Secured Subsidiaries. The Company entered into a non-recourse guaranty on June 24, 2016 (the “Guaranty,” and together with the Loan Agreement, the Promissory Note and the Security Agreement, the “Loan Documents”) to guarantee the payment to Lender of certain obligations of the Secured Subsidiaries under the Loan Agreement. The Loan Documents require the Secured Subsidiaries and the Company to comply with certain covenants, including, among others, a minimum net worth test and other customary covenants. The Lender may accelerate amounts outstanding under the Loan Documents upon the occurrence of an event of default (as defined in the Loan Agreement) including, but not limited to, the failure to pay amounts due or commencement of bankruptcy proceedings. The Company incurred loan procurement costs of $646,246 and such costs have been recorded net of the note payable on the consolidated balance sheet and are amortized as an adjustment to interest expense over the term of the loan. As of March 31, 2019, the Company’s note payable is summarized as follows: Note Payable Carrying Value Principal balance outstanding $ 19,693,614 Less: Loan procurement costs, net (529,795 ) Total note payable, net $ 19,163,819 As of March 31, 2019, the note payable was secured by certain of its stores with an aggregate net book value of approximately $34.3 million. The following table represents the future principal payment requirements on the note payable as of March 31, 2019: 2019 $ 395,201 2020 492,797 2021 513,857 2022 535,816 2023 558,714 2024 and thereafter 17,197,229 Total principal payments 19,693,614 Less: Loan procurement costs, net (529,795 ) Total note payable $ 19,163,819 Revolving Line of Credit On December 20, 2018, certain wholly owned subsidiaries (the “Subsidiaries”) of the Company entered into a revolving credit loan agreement (the “Agreement”) between the Subsidiaries and TCF National Bank (the “Lender”). Under the Agreement, the Subsidiaries are borrowing from the Lender in the principal amount of up to $10 million pursuant to a promissory note (the “Note”). The Note bears an interest rate equal to 3.00% over the One Month U.S. Dollar London Inter-Bank Offered Rate and is due to mature on December 20, 2021. The obligations under the Agreement are secured by certain real estate assets owned by the Subsidiaries. The Company entered into a guaranty of payment on December 20, 2018 (the “Guaranty,” and together with the Agreement, the Note and related instruments, the “Revolver”) to guarantee the payment to Lender of certain obligations of the Subsidiaries under the Agreement. The Revolver requires the Subsidiaries and the Company to comply with certain covenants, including, among others, customary financial covenants. The Lender may accelerate amounts outstanding under the Loan Documents upon the occurrence of an Event of Default (as defined in the Agreement) including, but not limited to, the failure to pay amounts due to the Lender or commencement of bankruptcy proceedings. The Company incurred issuance costs of $477,981 and such costs are amortized as an adjustment to interest expense over the term of the loan. As of March 31, 2019, there were no outstanding borrowings under the Revolver. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 8. EARNINGS PER SHARE Basic earnings per share is computed using the weighted average number of shares outstanding. Diluted earnings per share is computed using the weighted average number of shares outstanding adjusted for the incremental shares attributed to potentially diluted securities. The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended March 31, 2019 2018 Net income $ 187,823 $ 59,126 Weighted average common shares outstanding: Average number of common shares outstanding - basic 7,630,722 7,619,469 Net effect of dilutive unvested restricted stock awards included for treasury stock method 7,011 20 Average number of common shares outstanding - diluted 7,637,733 7,619,489 Earnings per common share Basic $ 0.02 $ 0.01 Diluted $ 0.02 $ 0.01 Common stock dividends totaled $503,294 ($0.065 per share) and $495,266 ($0.065 per share) for the three months ended March 31, 2019 and 2018, respectively. The classification of these dividends for federal income tax purposes is expected to be determined after the Company’s fiscal year ending December 31, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. RELATED PARTY TRANSACTIONS Certain officers and directors of the Company also serve as officers and directors of Winmill & Co. Incorporated (“Winco”), Bexil Corporation, Tuxis Corporation (“Tuxis”), and their affiliates (collectively with the Company, the “Affiliates”). As of March 31, 2019, certain of the Affiliates owned approximately 6.9% of the Company’s outstanding common stock. Pursuant to an arrangement between a professional employer organization (“PEO”) and the Affiliates, the PEO provides payroll, benefits, compliance, and related services for employees of the Affiliates in accordance with applicable rules and regulations under the IRC and, in connection therewith, Midas Management Corporation (“MMC”), a subsidiary of Winco, acts as a conduit payer of compensation and benefits to the Affiliates’ employees including those who are concurrently employed by the Company and its Affiliates. Rent expense of concurrently used office space and overhead expenses for various concurrently used administrative and support functions incurred by the Affiliates are allocated at cost among them. The Affiliates participate in a 401(k) retirement savings plan for substantially all qualified employees. A matching expense based upon a percentage of contributions to the plan by eligible employees is incurred and allocated among the Affiliates. The matching expense is accrued and funded on a current basis and may not exceed the amount permitted as a deductible expense under the IRC. The aggregate rent and overhead accrued and paid by the Company to Winco for the three months ended March 31, 2019 was $19,338. As of March 31, 2019, the Company had reimbursements payable to MMC and Winco for compensation and benefits and rent and overhead of $22,689. The Company currently reimburses monthly automobile expenses of $1,000 per month to its President, Mark C. Winmill. To the extent that the monthly payment under the Company’s automobile lease exceeds the current monthly reimbursement amount, Mr. Winmill voluntarily reimburses the Company for the excess amount. In this regard, Mr. Winmill has reimbursed the Company $3,228 for the automobile payments paid and due in 2019. The Company leases office space to Tuxis under a rental agreement. The terms of occupancy are month to month and automatically renew unless terminated by either party on ten days’ written notice. The monthly rental charge is $667 per month, due and payable on the first day of each month. For the three months ended March 31, 2019, the total rent paid by Tuxis to the Company was $2,001. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Capital Stock | 10. CAPITAL STOCK As of March 31, 2019, the Company was authorized to issue 450,000,000 shares of $0.01 par value common stock of which 7,733,967 had been issued and was outstanding. The Company was also authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, authorized, of which none has been issued. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 11. STOCK-BASED COMPENSATION On October 16, 2017 (“Effective Date”), the Company’s stockholders approved the Company’s 2017 Equity Incentive Plan (the “Plan”). The Plan is designed to provide equity-based incentives to certain eligible persons, as defined in the Plan, in the form of options, share appreciation rights, restricted stock, restricted stock units, dividend equivalent rights or other forms of equity-based compensation as determined in the discretion of the Board of Directors, the Compensation Committee of the Board of Directors, or other designee thereof. The total number of shares of common stock reserved and available for issuance under the Plan on the Effective Date was 760,000. On March 27, 2019, the Company approved restricted stock awards under the Plan to certain of its officers and employees in the aggregate amount of 28,755 shares, of which 15,025 shares are performance-based grants and 13,730 shares are time-based grants. The Company recorded $54,160 of expense in general and administrative expense in its statement of operations related to restricted stock awards granted to certain officers and employees for the three months ended March 31, 2019. At March 31, 2019, there was $357,923 of total unrecognized compensation expense related to unvested restricted stock awards under the Plan. That cost is expected to be recognized over a weighted—average period of 3.24 years. The fair value of common stock awards is determined based on the closing trading price of the Company’s common stock on the grant date. Time-Based Restricted Stock Grants These time-based grants vest solely based on continued employment, with 6.25% of the shares eligible to vest on each three- month anniversary of the grant date during the remaining four-year time vesting period. Time-based restricted stock cannot be transferred during the vesting period. These time-based restricted stock entitles the holder to dividends paid by the Company on shares of its common stock. A summary of the Company’s time-based restricted stock grant activity is as follows: Weighted-Average Grant-Date Time-Based Restricted Stock Grants Stock Fair Value Unvested at December 31, 2018 47,228 $ 4.42 Granted 13,730 $ 3.94 Vested (3,633 ) $ 4.42 Unvested at March 31, 2019 57,325 $ 4.31 Performance-Based Restricted Stock Grants Performance-based restricted stock grants vest based on continued employment and the achievement of certain Funds from Operations, as adjusted (“AFFO”) and same store revenue growth (“SSRG”) goals by the Company during 2018. Between 0% and 200% of these shares will be earned based on achievement of the AFFO and SSRG goals in 2018, and the shares which are earned will remain subject to quarterly vesting during the remaining four-year time vesting period. Dividends paid by the Company prior to the determination of how many shares are earned will be retained by the Company and released only with respect to earned shares. If a Change in Control (as defined in the Plan) occurs during 2018, the number of shares earned will equal the greater of the number of shares granted and the number of shares which would have been earned based on the AFFO and SSRG through the date of the Change in Control. If following a Change in Control, a grantee is terminated by the Company without Cause or by the grantee with Good Reason (as each is defined in the Plan), all unvested restricted stock will fully vest. A summary of the Company’s performance-based restricted stock grant activity is as follows: Weighted-Average Grant-Date Performance-based Stock Grants Stock Fair Value Unvested at December 31, 2018 15,025 $ 4.42 Granted 27,613 $ 4.16 Vested (6,907 ) $ 4.42 Unvested at March 31, 2019 35,731 $ 4.22 Forfeitures are accounted for as they occur, compensation cost previously recognized for an award that is forfeited because of a failure to satisfy a service or performance condition is reversed in the period of the forfeiture. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES The Company enters into contracts that contain a variety of representations and warranties and which may provide general indemnifications. The Company’s maximum exposure under these arrangements is unknown as it involves future claims that may be made against the Company under circumstances that have not occurred. The Company leases an automobile under a lease expiring on January 3, 2020. The future minimum lease payments under the lease is $15,288 for the year ending December 31, 2019. The Company expects to break ground and begin construction on the Millbrook, NY expansion in the second quarter of 2019, which, when completed, will add approximately 16,500 of gross square feet of all-climate-controlled units. Under the terms of the 2016 Purchase Agreement with Tuxis, an additional $900,000 cash payment is due to Tuxis from the Company upon breaking ground and beginning construction. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Upon deregistration as an investment company, the Company's status changed to an operating company from an investment company since it no longer met the assessment of an investment company under the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946 (“ASC 946”). The Company discontinued applying the guidance in ASC 946 and began to account for the change in status prospectively by accounting for its investments in accordance with other U.S. generally accepted accounting principles (“GAAP”) topics as of the date of the change in status. The accompanying unaudited consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with GAAP for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The consolidated balance sheet as of December 31, 2018 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018. |
Reclassifications | Reclassifications Certain amounts from the prior year have been reclassified to conform to current year presentation as described below. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash The Company’s cash is deposited with financial institutions located throughout the United States and at times may exceed federally insured limits. The Company considers all highly liquid investments, which may include money market fund shares, with a maturity of three months or less to be cash equivalents. Restricted cash is comprised of escrowed funds deposited with a bank relating to capital expenditures. The carrying amount reported on the balance sheet for cash, cash equivalents, and restricted cash approximates fair value. |
Income Taxes | Income Taxes The Company has elected to be treated as a REIT under the IRC. In order to maintain its qualification as a REIT, among other things, the Company is required to distribute at least 90% of its REIT taxable income to its stockholders and meet certain tests regarding the nature of its income and assets. As a REIT, the Company is not subject to federal income tax with respect to that portion of its income which meets certain criteria and is distributed annually to stockholders. The Company plans to continue to operate so that it meets the requirements for taxation as a REIT. Many of these requirements, however, are highly technical and complex. If the Company were to fail to meet these requirements, it would be subject to federal income tax. In managements’ opinion, the requirements to maintain these elections are being fulfilled. The Company is subject to certain state and local taxes. The Company recognizes the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. The Company has reviewed its tax positions and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on federal, state, and local income tax returns for open tax years (2015 – 2017), or is expected to be taken in the Company’s 2018 tax returns. |
Marketable Equity Securities | Marketable Equity Securities Investments in equity securities that have readily determinable fair values are accounted for equity securities measured at fair value. Gains or losses from changes in the fair value of equity securities are recorded in net income, until the investment is sold or otherwise disposed of, or until the investment is determined to be other-than-temporarily impaired. The specific identification method is used to determine the realized gain or loss on investments sold or otherwise disposed. Fair value is determined using a valuation hierarchy generally by reference to an active trading market, using quoted closing or bid prices. Judgment is used to ascertain if a formerly active market has become inactive and in determining fair values when markets have become inactive. |
Real Estate Assets | Real Estate Assets Real estate assets are carried at the appreciated value as of January 19, 2016, the effective date of the Company’s change in status to an operating company, less accumulated depreciation from that date. Purchases subsequent to the effective date of the change in status are carried at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Property taxes and other costs associated with development incurred during a construction period are capitalized. A construction period begins when expenditures for a real estate asset have been made and activities that are necessary to prepare the asset for its intended use are in progress. A construction period ends when an asset is substantially complete and ready for its intended use. Acquisition costs are accounted for in accordance with Accounting Standard Update ("ASU") No. 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January I, 2018 (see section entitled Recent Accounting Pronouncements") and are generally capitalized. When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements, and equipment are recorded based upon their respective fair values as estimated by management. In allocating the purchase price for an acquisition, the Company determines whether the acquisition includes intangible assets or liabilities. The Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Internal and external transaction costs associated with acquisitions or dispositions of real estate, as well as repairs and maintenance costs, are charged to expense as incurred. Major replacements and betterments that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives. Depreciation is computed using the straight-line method over the estimated useful lives of the buildings and improvements, which are generally between 5 and 39 years. |
Derivative Financial Instruments | Derivative Financial Instruments The Company carries all derivative financial instruments on the balance sheet at fair value. Fair value of derivatives is determined by reference to observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship. The Company’s use of derivative instruments has been limited to interest cap agreements. The fair values of derivative instruments are included in prepaid expenses and other assets in the accompanying balance sheets. For derivative instruments not designated as cash flow hedges, the unrealized gains and losses are included in interest expense in the accompanying statements of operations. For derivatives designated as cash flow hedges, the effective portion of the changes in the fair value of the derivatives is initially reported in accumulated other comprehensive income (loss) in the Company’s balance sheets and subsequently reclassified into earnings when the hedged transaction affects earnings. The valuation of interest rate cap agreements is determined using widely accepted valuation techniques. This analysis reflects the contractual terms of derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. |
Accounts Payable and Accrued Expenses | Accounts Payable and Accrued Expenses Accounts payable and accrued expenses generally consist of property tax accruals, unearned rental income, and trade payables. At March 31, 2019 and December 31, 2018, accounts payable and accrued expenses included a $900,000 contingent payment in connection with the purchase of a property made in 2016. |
Revenue and Expense Recognition | Revenue and Expense Recognition Revenues from stores, which are primarily composed of rental income earned pursuant to month-to-month leases for storage space, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. Ancillary revenues from sales of merchandise and tenant insurance and other income are recognized when earned. The Company accrues for property tax expense based upon actual amounts billed and, in some circumstances, estimates and historical trends when bills or assessments have not been received from the taxing authorities or such bills and assessments are in dispute. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations and general and administrative expense are expensed as incurred. |
Credit Risk | Credit Risk Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and certain portions of accounts receivable including rents receivable from our tenants. Cash and cash equivalents are on deposit with highly rated commercial banks. |
Evaluation of Asset Impairment | Evaluation of Asset Impairment The Company evaluates its real estate assets, intangible assets consisting of in-place leases, and goodwill for impairment annually. If there are indicators of impairment and we determine that an asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. |
Stock-based Compensation | Stock-based Compensation The measurement and recognition of compensation expense for all stock-based payment awards to employees are based on estimated fair values. Awards granted are valued at fair value and any compensation expense is recognized over the service periods of each award. |
Loan Procurement Costs | Loan Procurement Costs In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. Jf there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company's revolving credit facility remain in Line of credit issuance costs, net of amortization on the Company's consolidated balance sheets. The costs are amortized over the estimated life of the related debt. |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could materially differ from management’s estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2017, the FASB issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The standard became effective on January 1, 2019. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard became effective on January 1, 2019. This standard will not have a material impact on operating results of financial condition, because all lease revenues are derived from month to month self storage leases and the Company does not incur a material amount of lease expense. |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investments in Marketable Equity Securities | Investments in marketable equity securities as of March 31, 2019 consisted of the following: Gross Unrealized Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 966,569 $ — $ 1,722,056 Total investment in marketable equity securities $ 755,487 $ 966,569 $ — $ 1,722,056 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Real Estate [Abstract] | |
Summary of Carrying Value of Real Estate Assets | The carrying value of the Company’s real estate assets is summarized as follows: Self storage properties, at cost: Beginning balance $ 51,879,327 Improvements and equipment additions 7,390 Ending balance 51,886,717 Land Beginning balance 5,493,814 Ending balance 5,493,814 Accumulated depreciation: Beginning balance (3,656,220 ) Depreciation expense (351,644 ) Ending balance (4,007,864 ) Construction in progress: Beginning balance 94,816 Current development 22,401 Ending balance 117,217 Total real estate assets at March 31, 2019 $ 53,489,884 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Carried at Fair Value Measured on Recurring Basis | The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of March 31, 2019: Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,722,056 $ — $ — $ 1,722,056 Total assets at fair value $ 1,722,056 $ — $ — $ 1,722,056 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Terms of Derivative Financial Instrument | The following table summarizes the terms of the Company’s derivative financial instrument as of March 31, 2019: Notional Amount Effective Maturity Product March 31, 2019 December 31, 2018 Strike Date Date Cap Agreement $ 7,500,000 $ 7,500,000 3.50 % - 4.00% 12/24/2018 12/20/2021 |
Note Payable (Tables)
Note Payable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Notes Payable [Abstract] | |
Carrying Value of Note Payable | As of March 31, 2019, the Company’s note payable is summarized as follows: Note Payable Carrying Value Principal balance outstanding $ 19,693,614 Less: Loan procurement costs, net (529,795 ) Total note payable, net $ 19,163,819 |
Future Principal Payment Requirements | The following table represents the future principal payment requirements on the note payable as of March 31, 2019: 2019 $ 395,201 2020 492,797 2021 513,857 2022 535,816 2023 558,714 2024 and thereafter 17,197,229 Total principal payments 19,693,614 Less: Loan procurement costs, net (529,795 ) Total note payable $ 19,163,819 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: For the Three Months Ended March 31, 2019 2018 Net income $ 187,823 $ 59,126 Weighted average common shares outstanding: Average number of common shares outstanding - basic 7,630,722 7,619,469 Net effect of dilutive unvested restricted stock awards included for treasury stock method 7,011 20 Average number of common shares outstanding - diluted 7,637,733 7,619,489 Earnings per common share Basic $ 0.02 $ 0.01 Diluted $ 0.02 $ 0.01 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Time Based Restricted Stock Grant Activity | A summary of the Company’s time-based restricted stock grant activity is as follows: Weighted-Average Grant-Date Time-Based Restricted Stock Grants Stock Fair Value Unvested at December 31, 2018 47,228 $ 4.42 Granted 13,730 $ 3.94 Vested (3,633 ) $ 4.42 Unvested at March 31, 2019 57,325 $ 4.31 |
Summary of Performance Based Grant Activity | A summary of the Company’s performance-based restricted stock grant activity is as follows: Weighted-Average Grant-Date Performance-based Stock Grants Stock Fair Value Unvested at December 31, 2018 15,025 $ 4.42 Granted 27,613 $ 4.16 Vested (6,907 ) $ 4.42 Unvested at March 31, 2019 35,731 $ 4.22 |
Organization- Additional Inform
Organization- Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019storesegment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of owned and operated stores | store | 11 |
Number of operating segment | segment | 1 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage of real estate investment trust taxable income distributed for exemption of federal income tax | 90.00% | |
Unrecognized tax benefits | $ 0 | |
Accounts Payable and Accrued Expenses | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Contingent payment | $ 900,000 | $ 900,000 |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives of buildings and improvements | 5 years | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Estimated useful lives of buildings and improvements | 39 years |
Marketable Equity Securities -
Marketable Equity Securities - Schedule of Investments in Marketable Equity Securities (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | $ 755,487 | |
Gross Unrealized Gains | 966,569 | |
Value | 1,722,056 | $ 1,567,607 |
Common stocks | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 755,487 | |
Gross Unrealized Gains | 966,569 | |
Value | $ 1,722,056 |
Real Estate Assets - Summary of
Real Estate Assets - Summary of Carrying Value of Real Estate Assets (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Beginning balance (Self storage properties, at cost) | $ 51,879,327 | |
Improvements and equipment additions | 7,390 | |
Ending balance (Self storage properties, at cost) | 51,886,717 | |
Beginning balance, land | 5,493,814 | |
Ending balance, land | 5,493,814 | |
Beginning balance, accumulated depreciation | (3,656,220) | |
Depreciation expense | (351,644) | |
Ending balance, accumulated depreciation | (4,007,864) | |
Beginning balance, construction in progress | 94,816 | |
Current development | 22,401 | |
Ending balance, construction in progress | 117,217 | |
Total real estate assets at March 31, 2019 | $ 53,489,884 | $ 53,811,737 |
Real Estate Assets - Additional
Real Estate Assets - Additional Information (Details) - Millbrook, NY - ft² | 3 Months Ended | |
Jun. 30, 2019 | Mar. 31, 2019 | |
Real Estate Properties [Line Items] | ||
Estimate for expansion relating to construction cost | As of March 31, 2019, development costs for this project has been capitalized and are reflected in real estate assets, net on the Company’s consolidated balance sheet. | |
Scenario Forecast | ||
Real Estate Properties [Line Items] | ||
Gross square feet of traditional drive-up storage units and all-climate-controlled units | 16,500 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring | Mar. 31, 2019USD ($) |
Assets | |
Total assets at fair value | $ 1,722,056 |
Marketable Equity Securities | |
Assets | |
Total assets at fair value | 1,722,056 |
Level 1 | |
Assets | |
Total assets at fair value | 1,722,056 |
Level 1 | Marketable Equity Securities | |
Assets | |
Total assets at fair value | $ 1,722,056 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Mar. 31, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Assets transferred from level 1 to level 2 | $ 0 |
Fair value, re-measured on recurring basis using significant unobservable inputs , assets value | 0 |
Fair value, re-measured on recurring basis using significant unobservable inputs , liabilities value | 0 |
Aggregate carrying value of debt | 19,693,614 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Aggregate carrying value of debt | 19,654,710 |
Estimated fair value of debt | $ 19,000,000 |
Derivatives - Summary of Terms
Derivatives - Summary of Terms of Derivative Financial Instrument (Details) - Cap Agreement - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional Amount | $ 7,500,000 | $ 7,500,000 |
Effective Date | Dec. 24, 2018 | |
Maturity Date | Dec. 20, 2021 | |
Minimum | ||
Derivative [Line Items] | ||
Strike | 3.50% | |
Maximum | ||
Derivative [Line Items] | ||
Strike | 4.00% |
Note Payable - Additional Infor
Note Payable - Additional Information (Details) - USD ($) | Dec. 20, 2018 | Jun. 24, 2016 | Mar. 31, 2019 |
Debt Instrument [Line Items] | |||
Borrowing principal amount | $ 19,693,614 | ||
Loan procurement costs | $ 646,246 | 529,795 | |
Note payable, net book value | 34,300,000 | ||
Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Line of credit, issuance costs | 477,981 | ||
Line of credit, outstanding borrowings | $ 0 | ||
Promissory Note | |||
Debt Instrument [Line Items] | |||
Borrowing principal amount | $ 20,000,000 | ||
Debt instrument interest rate | 4.192% | ||
Debt instrument effective interest rate | 4.40% | ||
Debt instrument maturity date | Jul. 1, 2036 | ||
Promissory Note | Revolving Line of Credit | |||
Debt Instrument [Line Items] | |||
Borrowing principal amount | $ 10,000,000 | ||
Debt instrument maturity date | Dec. 20, 2021 | ||
Promissory Note | Revolving Line of Credit | One Month London Inter-Bank Offered Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument interest rate | 3.00% |
Note Payable - Carrying Value o
Note Payable - Carrying Value of Note Payable (Details) - USD ($) | Mar. 31, 2019 | Jun. 24, 2016 |
Notes Payable [Abstract] | ||
Principal balance outstanding | $ 19,693,614 | |
Less: Loan procurement costs, net | (529,795) | $ (646,246) |
Total note payable, net | $ 19,163,819 |
Note Payable - Future Principal
Note Payable - Future Principal Payment Requirements (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 24, 2016 |
Notes Payable [Abstract] | |||
2019 | $ 395,201 | ||
2020 | 492,797 | ||
2021 | 513,857 | ||
2022 | 535,816 | ||
2023 | 558,714 | ||
2024 and thereafter | 17,197,229 | ||
Total principal payments | 19,693,614 | ||
Less: Loan procurement costs, net | (529,795) | $ (646,246) | |
Total note payable | $ 19,163,819 | $ 19,269,250 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 187,823 | $ 59,126 |
Weighted average common shares outstanding: | ||
Average number of common shares outstanding - basic | 7,630,722 | 7,619,469 |
Net effect of dilutive unvested restricted stock awards included for treasury stock method | 7,011 | 20 |
Average number of common shares outstanding - diluted | 7,637,733 | 7,619,489 |
Earnings per common share | ||
Basic | $ 0.02 | $ 0.01 |
Diluted | $ 0.02 | $ 0.01 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Common stock dividends | $ 503,294 | $ 495,266 |
Common stock dividends per share | $ 0.065 | $ 0.065 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | |
Reimbursement of monthly automobile expenses | $ 1,000 |
Automobile reimbursement amount | $ 3,228 |
PEO | Global Self Storage, Inc | |
Related Party Transaction [Line Items] | |
Percentage ownership by affiliates | 6.90% |
Winco | |
Related Party Transaction [Line Items] | |
Aggregate rent and overhead accrued expense paid | $ 19,338 |
MMC and Winco | |
Related Party Transaction [Line Items] | |
Reimbursements payable | $ 22,689 |
Tuxis | |
Related Party Transaction [Line Items] | |
Termination of notice period | 10 days |
Monthly rental charge | $ 667 |
Rental income | $ 2,001 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 7,733,967 | 7,692,624 |
Common stock, shares outstanding | 7,733,967 | 7,692,624 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares issued (in series) | 0 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | Mar. 27, 2019 | Mar. 31, 2019 | Mar. 31, 2018 | Oct. 16, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Recorded expense in general and administrative expense in its statement of operations related to restricted stock | $ 54,160 | $ 884 | ||
Performance-Based Restricted Stock Grants | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 27,613 | |||
Time-Based Restricted Stock Grants | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 13,730 | |||
2017 Equity Incentive Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Common stock reserved and available for issuance | 760,000 | |||
Recorded expense in general and administrative expense in its statement of operations related to restricted stock | $ 54,160 | |||
Unrecognized share-based compensation cost related to unvested restricted stock awards | $ 357,923 | |||
Cost is expected to be recognized over a weighted average periods | 3 years 2 months 26 days | |||
2017 Equity Incentive Plan | Restricted Stock Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 28,755 | |||
2017 Equity Incentive Plan | Performance-Based Restricted Stock Grants | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 15,025 | |||
Vesting period | 4 years | |||
2017 Equity Incentive Plan | Performance-Based Restricted Stock Grants | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock vested percentage based on achievement of goal | 0.00% | |||
2017 Equity Incentive Plan | Performance-Based Restricted Stock Grants | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock vested percentage based on achievement of goal | 200.00% | |||
2017 Equity Incentive Plan | Time-Based Restricted Stock Grants | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 13,730 | |||
Stock vested percentage | 6.25% | |||
Shares eligible vesting period | 3 months | |||
Vesting period | 4 years | |||
Share based compensation description | These time-based grants vest solely based on continued employment, with 6.25% of the shares eligible to vest on each three- month anniversary of the grant date during the remaining four-year time vesting period. |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Time Based Restricted Stock Grant Activity (Details) - Time-Based Restricted Stock Grants | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Beginning, Stock | shares | 47,228 |
Granted, Stock | shares | 13,730 |
Vested, Stock | shares | (3,633) |
Unvested Ending, Stock | shares | 57,325 |
Unvested Beginning, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.42 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 3.94 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 4.42 |
Unvested Ending, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.31 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Performance Based Grant Activity (Details) - Performance-Based Restricted Stock Grants | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Beginning, Stock | shares | 15,025 |
Granted, Stock | shares | 27,613 |
Vested, Stock | shares | (6,907) |
Unvested Ending, Stock | shares | 35,731 |
Unvested Beginning, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.42 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 4.16 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 4.42 |
Unvested Ending, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.22 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 3 Months Ended | ||
Jun. 30, 2019ft² | Mar. 31, 2019USD ($) | Dec. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |||
Lease expiration date | Jan. 3, 2020 | ||
Operating leases, future minimum payments, due in 2019 | $ 15,288 | ||
Millbrook, NY | |||
Commitments And Contingencies [Line Items] | |||
Estimate for expansion relating to construction cost | As of March 31, 2019, development costs for this project has been capitalized and are reflected in real estate assets, net on the Company’s consolidated balance sheet. | ||
Millbrook, NY | Scenario Forecast | |||
Commitments And Contingencies [Line Items] | |||
Gross square feet of traditional drive-up storage units and all-climate-controlled units | ft² | 16,500 | ||
Tuxis | |||
Commitments And Contingencies [Line Items] | |||
Additional cash payment | $ 900,000 |