Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 9,356,202 | |
Entity Shell Company | false | |
Entity File Number | 001-12681 | |
Entity Tax Identification Number | 13-3926714 | |
Entity Address, Address Line One | 11 Hanover Square | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10005 | |
City Area Code | 212 | |
Local Phone Number | 785-0900 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common shares, $0.01 par value per share | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Real estate assets, net | $ 60,117,747 | $ 59,752,153 |
Cash and cash equivalents | 2,385,653 | 3,990,160 |
Restricted cash | 302,072 | 263,405 |
Investments in securities | 1,543,143 | 1,761,312 |
Accounts receivable | 86,082 | 164,078 |
Prepaid expenses and other assets | 432,964 | 325,450 |
Line of credit issuance costs, net | 232,206 | 311,869 |
Intangible assets, net | 158,485 | 398,795 |
Goodwill | 694,121 | 694,121 |
Total assets | 65,952,473 | 67,661,343 |
Liabilities and equity | ||
Note payable, net | 18,617,181 | 18,839,787 |
Line of credit borrowing | 4,914,000 | 4,914,000 |
Accounts payable and accrued expenses | 1,884,088 | 1,841,640 |
Total liabilities | 25,415,269 | 25,595,427 |
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, 9,356,202 and 9,330,297 issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 93,562 | 93,303 |
Additional paid in capital | 40,393,722 | 40,329,502 |
Retained earnings | 49,920 | 1,643,111 |
Total equity | 40,537,204 | 42,065,916 |
Total liabilities and equity | $ 65,952,473 | $ 67,661,343 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
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 | 9,356,202 | 9,330,297 |
Common stock, shares outstanding | 9,356,202 | 9,330,297 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | ||||
Rental income | $ 2,133,512 | $ 2,077,453 | $ 4,283,752 | $ 4,116,137 |
Total revenues | 2,234,212 | 2,148,687 | 4,473,756 | 4,255,197 |
Expenses | ||||
Property operations | 875,209 | 923,529 | 1,791,289 | 1,836,878 |
General and administrative | 575,568 | 554,635 | 1,258,191 | 1,110,639 |
Depreciation and amortization | 502,746 | 352,809 | 1,018,682 | 704,376 |
Business development | 817 | 15,044 | 10,057 | 23,294 |
Total expenses | 1,954,340 | 1,846,017 | 4,078,219 | 3,675,187 |
Operating income | 279,872 | 302,670 | 395,537 | 580,010 |
Other income (expense) | ||||
Dividend and interest income | 20,270 | 17,446 | 44,369 | 34,646 |
Unrealized (loss) gain on marketable equity securities | (27,764) | 72,833 | (218,169) | 227,282 |
Interest expense | (294,522) | (256,104) | (600,305) | (517,270) |
Total other (expense), net | (302,016) | (165,825) | (774,105) | (255,342) |
Net (loss) income and comprehensive (loss) income | $ (22,144) | $ 136,845 | $ (378,568) | $ 324,668 |
Earnings per share | ||||
Basic | $ 0 | $ 0.02 | $ (0.04) | $ 0.04 |
Diluted | $ 0 | $ 0.02 | $ (0.04) | $ 0.04 |
Weighted average shares outstanding | ||||
Basic | 9,269,567 | 7,640,991 | 9,266,189 | 7,635,885 |
Diluted | 9,269,567 | 7,650,296 | 9,266,189 | 7,642,980 |
Other property related income | ||||
Revenues | ||||
Revenues | $ 83,199 | $ 71,234 | $ 155,159 | $ 139,060 |
Management fees and other income | ||||
Revenues | ||||
Revenues | $ 17,501 | $ 34,845 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 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 | |||
Restricted stock grants issued | $ 414 | (414) | ||
Restricted stock grants issued, Shares | 41,343 | |||
Stock-based compensation | 54,160 | 54,160 | ||
Net income (loss) | 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 | |||
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 | |||
Net income (loss) | 324,668 | |||
Ending Balance at Jun. 30, 2019 | 36,630,733 | $ 77,293 | 34,067,426 | 2,486,014 |
Ending Balance, shares at Jun. 30, 2019 | 7,729,330 | |||
Beginning Balances at Mar. 31, 2019 | 36,944,565 | $ 77,340 | 34,015,649 | 2,851,576 |
Beginning Balance, shares at Mar. 31, 2019 | 7,733,967 | |||
Restricted stock grant forfeitures | $ (47) | 47 | ||
Restricted stock grant forfeitures, shares | (4,637) | |||
Stock-based compensation | 51,730 | 51,730 | ||
Net income (loss) | 136,845 | 136,845 | ||
Dividends | (502,407) | (502,407) | ||
Ending Balance at Jun. 30, 2019 | 36,630,733 | $ 77,293 | 34,067,426 | 2,486,014 |
Ending Balance, shares at Jun. 30, 2019 | 7,729,330 | |||
Beginning Balances at Dec. 31, 2019 | $ 42,065,916 | $ 93,303 | 40,329,502 | 1,643,111 |
Beginning Balance, shares at Dec. 31, 2019 | 9,330,297 | 9,330,297 | ||
Restricted stock grants issued | $ 259 | (259) | ||
Restricted stock grants issued, Shares | 25,905 | |||
Stock-based compensation | $ 29,162 | 29,162 | ||
Net income (loss) | (356,424) | (356,424) | ||
Dividends | (606,469) | (606,469) | ||
Ending Balance at Mar. 31, 2020 | 41,132,185 | $ 93,562 | 40,358,405 | 680,218 |
Ending Balance, shares at Mar. 31, 2020 | 9,356,202 | |||
Beginning Balances at Dec. 31, 2019 | $ 42,065,916 | $ 93,303 | 40,329,502 | 1,643,111 |
Beginning Balance, shares at Dec. 31, 2019 | 9,330,297 | 9,330,297 | ||
Net income (loss) | $ (378,568) | |||
Ending Balance at Jun. 30, 2020 | $ 40,537,204 | $ 93,562 | 40,393,722 | 49,920 |
Ending Balance, shares at Jun. 30, 2020 | 9,356,202 | 9,356,202 | ||
Beginning Balances at Mar. 31, 2020 | $ 41,132,185 | $ 93,562 | 40,358,405 | 680,218 |
Beginning Balance, shares at Mar. 31, 2020 | 9,356,202 | |||
Stock-based compensation | 35,317 | 35,317 | ||
Net income (loss) | (22,144) | (22,144) | ||
Dividends | (608,154) | (608,154) | ||
Ending Balance at Jun. 30, 2020 | $ 40,537,204 | $ 93,562 | $ 40,393,722 | $ 49,920 |
Ending Balance, shares at Jun. 30, 2020 | 9,356,202 | 9,356,202 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net (loss) income | $ (378,568) | $ 324,668 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities | ||
Depreciation and amortization | 1,018,681 | 704,376 |
Unrealized loss (gain) on marketable equity securities | 218,169 | (227,282) |
Amortization of loan procurement costs | 100,029 | 100,534 |
Stock-based compensation | 64,479 | 105,890 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 77,996 | (38,340) |
Prepaid expenses and other assets | (107,514) | (35,730) |
Accounts payable and accrued expenses | 40,494 | 170,034 |
Net cash provided by operating activities | 1,033,766 | 1,104,150 |
Cash flows from investing activities | ||
Construction | (1,043,538) | (244,674) |
Improvements and equipment additions | (100,427) | (21,877) |
Net cash used in investing activities | (1,143,965) | (266,551) |
Cash flows from financing activities | ||
Principal payments on note payable | (242,972) | (233,014) |
Dividends paid | (1,212,669) | (1,000,475) |
Net cash used in financing activities | (1,455,641) | (1,233,489) |
Net decrease in cash and cash equivalents | (1,565,840) | (395,890) |
Cash, cash equivalents, and restricted cash, beginning of period | 4,253,565 | 1,712,266 |
Cash, cash equivalents, and restricted cash, end of period | 2,687,725 | 1,316,376 |
Supplemental schedule of cash flow information | ||
Interest paid | $ 518,070 | $ 413,181 |
Organization
Organization | 6 Months Ended |
Jun. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | 1. ORGANIZATION Global Self Storage, Inc. (the “Company,” “we,” “our,” “us”) is a self-administered and self-managed Maryland real estate investment trust (“REIT”) that owns, operates, manages, acquires, develops and redevelops self storage properties (“stores” or “properties”) in the United States. Through its wholly owned subsidiaries, the Company owns and/or manages 13 self-storage properties in Connecticut, Illinois, Indiana, New York, Ohio, Pennsylvania, South Carolina, and Oklahoma. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Upon deregistration as an investment company, effective January 19, 2016, 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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated balance sheet as of December 31, 2019 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, 2019. Risks and Uncertainties — The recent outbreak of the novel coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by, among other things, instituting quarantines, mandating business and school closures, restricting travel and imposing social distancing practices. Such actions are creating significant disruption in global supply chains, and adversely impacting a number of industries. The major disruption caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and a significant decline in the U.S. Gross Domestic Product (“GDP”). COVID-19 has had a continued and prolonged adverse impact on economic and market conditions and has triggered a period of economic slowdown which could have a material adverse effect on the Company’s results and financial condition. The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of the United States public health response, (iii) the pandemic’s impact on the U.S. and global economies, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19, and (vi) the negative impact on our properties. 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. Cash equivalents consists of money market fund shares and may include, among other things, highly liquid investments purchased with an original maturity of three months or less. 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. The following table provides a reconciliation of cash, cash equivalents, and restricted cash in our unaudited consolidated balance sheets to the total amount shown in our consolidated statements of cash flows: June 30, 2020 December 31, 2019 Cash and cash equivalents $ 2,385,653 $ 3,990,160 Restricted cash 302,072 263,405 Total cash, cash equivalents, and restricted cash as shown in our unaudited consolidated statements of cash flows $ 2,687,725 $ 4,253,565 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 has elected to treat its corporate subsidiary, SSG TRS LLC, as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRS may perform additional services for tenants and may engage in any real estate or non-real estate related business. A TRS is subject to federal corporate income tax. 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 (2016 – 2018), or is expected to be taken in the Company’s 2019 tax returns. 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. 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 1, 2018 and are generally capitalized for acquisitions that qualify as asset acquisitions. When properties 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 properties 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 an interest rate cap agreement. 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 analysis of the interest rate cap 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. 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 in accordance with ASC Topic 842, Leases The Company's management fees are earned subject to the terms of the related property management services agreements (“PSAs”). These PSAs provide that the Company will perform management services, which include leasing and operating the property and providing accounting, marketing, banking, maintenance and other services. These services are provided in exchange for monthly management fees, which are based on a percentage of revenues collected from stores owned by third parties. PSAs generally have original terms of three years, after which management services are provided on a month-to-month basis unless terminated. Management fees are due on the last day of each calendar month that management services are provided. The Company accounts for the management services provided to a customer as a single performance obligation which are rendered over time each month in accordance with ASC Topic 606, Revenue from Contracts with Customers 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. 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 lease, and goodwill for impairment annually. If there are indicators of impairment and we determine that the 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. The Company evaluates goodwill for impairment annually and whenever relevant events, circumstances, and other related factors indicate that fair value may be less that carrying amounts. If it is determined that the carrying amount of goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value, an impairment charge is recorded. As a result of the recent global economic disruption and uncertainty due to the COVID-19 pandemic, the Company concluded a triggering event had occurred as of June 30, 2020, and accordingly, performed interim impairment testing. Based on the quantitative assessment performed, the Company concluded that no impairment existed. 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. For awards granted which contain a graded vesting schedule and the only condition for vesting is a service condition, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For awards granted for which vesting is subject to a performance condition, compensation cost is recognized over the requisite service period if and when the Company concludes it is probable that the performance condition will be achieved. Loan Procurement Costs Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If 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. The effects of the COVID-19 pandemic may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses and the fair value estimates of the Company’s assets and liabilities. 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 Company adopted this guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 – Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU No. 2018-19 – Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which clarifies that receivables arising from operating leases are within the scope of the leasing standard (ASU No. 2016-02), and not within the scope of ASU No. 2016-13. The Company adopted this standard on January 1, 2020, with no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Real Estate Assets
Real Estate Assets | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Real Estate Assets | 3. REAL ESTATE ASSETS The carrying value of the Company’s real estate assets is summarized as follows June 30, 2020 December 31, 2019 Land $ 6,122,065 $ 6,122,065 Buildings, improvements, and equipment 59,808,351 57,178,338 Construction in progress 46,187 1,532,235 Self storage properties 65,976,603 64,832,638 Less: Accumulated depreciation (5,858,856 ) (5,080,485 ) Real estate assets, net $ 60,117,747 $ 59,752,153 In June 2020, the Company completed the conversion of certain commercially-leased space to all-climate-controlled units at McCordsville, IN which added approximately 13,713 leasable square feet to the property. In February 2020, the Company completed the expansion at Millbrook, NY which added approximately 11,800 of leasable square feet of all-climate-controlled units to the property. During the second quarter of 2020, the Company began construction on an expansion at its West Henrietta, NY property. The expansion was subsequently completed in August 2020, which added approximately 7,300 leasable square feet of drive-up storage units to the property. |
Marketable Equity Securities
Marketable Equity Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Equity Securities | 4. MARKETABLE EQUITY SECURITIES Investments in marketable equity securities consisted of the following: Gross Unrealized June 30, 2020 Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 787,656 $ — $ 1,543,143 Total investment in marketable equity securities $ 755,487 $ 787,656 $ — $ 1,543,143 Gross Unrealized December 31, 2019 Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 1,005,825 $ — $ 1,761,312 Total investment in marketable equity securities $ 755,487 $ 1,005,825 $ — $ 1,761,312 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. FAIR VALUE MEASUREMENTS The use of fair value to measure the financial instruments held by the Company and its subsidiaries is fundamental to its consolidated financial statements and is a critical accounting estimate because a substantial portion of its assets and liabilities are recorded at estimated fair value. The application of fair value measurements may be on a recurring or nonrecurring basis depending on the accounting principles applicable to the specific asset or liability or whether management has elected to carry the item at its estimated fair value. The hierarchy of valuation techniques is based on whether the inputs to those techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs create the following fair value hierarchy: Level 1 — Quoted prices in active markets for identical instruments or liabilities. Level 2 — Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing an asset or liability and are developed based on market data obtained from sources independent of the Company. These may include quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, and market-corroborated inputs. Level 3 — Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Company’s own assumptions about the factors that market participants use in pricing an asset or liability and are based on the best information available in the circumstances. This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when estimating fair value. The valuation method used to estimate fair value may produce a fair value measurement that may not be indicative of ultimate realizable value. Furthermore, while management believes its valuation methods are appropriate and consistent with those used by other market participants, the use of different methods or assumptions to estimate the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Those estimated values may differ significantly from the values that would have been used had a readily available market for such loans or investments existed, or had such loans or investments been liquidated, and those differences could be material to the financial statements. Fair valued assets consist of shares of equity securities and an interest rate cap. The value of the equity securities is based on a traded market price and is considered to be a level 1 measurement, and the value of the interest rate cap is based on its maturity, observable market-based inputs including interest rate curves and is considered to be a level 2 measurement. The following table provides the assets and liabilities carried at fair value measured on a recurring basis: June 30, 2020 Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,543,143 $ — $ — $ 1,543,143 Interest rate cap derivative — 1,053 — 1,053 Total assets at fair value $ 1,543,143 $ 1,053 $ — $ 1,544,196 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,761,312 $ — $ — $ 1,761,312 Interest rate cap derivative — 51 — 51 Total assets at fair value $ 1,761,312 $ 51 $ — $ 1,761,363 There were no assets transferred from level 1 to level 2 as of June 30, 2020. The Company did not have any assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of June 30, 2020. 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 June 30, 2020. The estimated fair value of the Company’s combined debt was approximately $24,235,505 as of June 30, 2020. 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 | 6 Months Ended |
Jun. 30, 2020 | |
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: Notional Amount Effective Maturity Product June 30, 2020 December 31, 2019 Strike Date Date Cap Agreement $ 7,500,000 $ 7,500,000 3.50 % - 4.00% 12/24/2018 12/20/2021 The counterparty to this arrangement is SMBC Capital Markets. The Company is potentially exposed to credit loss in the event of non-performance by the counterparty. The Company does not anticipate the counterparty to fail to meet its obligations as they become due. |
Note Payable
Note Payable | 6 Months Ended |
Jun. 30, 2020 | |
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 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. The Company recorded amortization expense of $10,150 and $10,405 for the three months ended June 30, 2020 and 2019, respectively and $20,366 and $20,871 for the six months ended June 30, 2020 and 2019, respectively. The carrying value of the Company’s note payable is summarized as follows: Note Payable June 30, 2020 December 31, 2019 Principal balance outstanding $ 19,095,584 $ 19,338,556 Less: Loan procurement costs, net (478,403 ) (498,769 ) Total note payable, net $ 18,617,181 $ 18,839,787 As of June 30, 2020, 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 June 30, 2020: 2020 (6 months) $ 289,968 2021 513,857 2022 535,816 2023 558,714 2024 582,591 2025 and thereafter 16,614,638 Total principal payments $ 19,095,584 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 (effective rate 6.46%) 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. The Company recorded amortization expense of $39,832 and $39,832 for the three months ended June 30, 2020 and 2019, respectively, and $79,663 and $79,663 for the six months ended June 30, 2020 and 2019, respectively. The outstanding loan balance under the Revolver was $4,914,000 as of June 30, 2020 and December 31, 2019. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 8. LEASES Global Self Storage as Lessor The Company's property rental revenue is primarily related to rents received from tenants at its operating stores. The Company's leases with its self storage tenants are generally on month-to-month terms, include automatic monthly renewals, allow flexibility to increase rental rates over time as market conditions permit, and provide for the collection of contingent fees such as late fees. These leases do not include any terms or conditions that allow the tenants to purchase the leased space. All self-storage leases for which the Company acts as lessor have been classified as operating leases. The real estate assets related to the Company's stores are included in "Real estate assets, net" on the Company's consolidated balance sheets and are presented at historical cost less accumulated depreciation and impairment, if any. Rental income related to these operating leases is included in Property rental revenue on the Company's consolidated statements of operations, and is recognized each month during the month-to-month terms at the rental rate in place during each month. Global Self Storage as Lessee The Company is a lessee in a lease agreement for an automobile entered into November 2019 with a lease term of three years. The lease agreement does not contain any material residual value guarantees or material restrictive covenants. As a result of the Company’s election of the package of practical expedients permitted within ASC Topic 842, which among other things, allows for the carryforward of historical lease classification, all of the Company’s lease agreements have been classified as operating leases. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s secured borrowing rates and implied secured spread at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives. The Company had no right-of-use assets and lease liabilities related to its operating leases as of June 30, 2019. As of June 30, 2020, the Company had right-of-use assets and lease liabilities related to its operating leases of $31,412 and $31,412, which are included in Prepaid expenses and other assets and Accounts payable and accrued expenses on the Company’s consolidated balance sheets, respectively, and amortization expense is included in General and administrative expenses in the Company’s consolidated statements of operations. As of June 30, 2020, the Company’s weighted average remaining lease term and weighted average discount rate related to its operating leases were approximately 2.3 years and 4.78%, respectively. The future minimum lease payments under the automobile lease are $7,127, $14,254, and $11,878 for the years ending December 31, 2020, 2021, and 2022, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 9. 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 June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Net income (loss) $ (22,144 ) $ 136,845 $ (378,568 ) $ 324,668 Weighted average common shares outstanding: Average number of common shares outstanding - basic 9,269,567 7,640,991 9,266,189 7,635,885 Net effect of dilutive unvested restricted stock awards included for treasury stock method — 9,305 — 7,095 Average number of common shares outstanding - diluted 9,269,567 7,650,296 9,266,189 7,642,980 Earnings per common share Basic $ (0.00 ) $ 0.02 $ (0.04 ) $ 0.04 Diluted $ (0.00 ) $ 0.02 $ (0.04 ) $ 0.04 For the three and six months ended June 30, 2020, 16,863 and 16,906 shares of common stock from outstanding restricted stock awards were excluded from the computation of diluted net loss per common share since the effect would be anti-dilutive. Common stock dividends totaled $608,153 ($0.065 per share) and $502,407 ($0.065 per share) for the three months ended June 30, 2020 and 2019, respectively, and $1,214,623 ($0.13 per share) and $1,005,701 ($0.13 per share) for the six months ended June 30, 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. 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 June 30, 2020, certain of the Affiliates and the Company’s directors and employees may be deemed to own approximately 7.8% 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 was $18,013 and $17,346 for the three months ended June 30, 2020 and 2019, respectively, and $39,341 and $36,683 for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the Company had reimbursements payable to MMC and Winco for compensation and benefits and rent and overhead of $66,339. 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 $2,254 and $3,228 for the automobile payments paid and due in 2020 and 2019, respectively. The Company leases office space and storage to certain Affiliates under rental agreements. The terms of occupancy are month to month and automatically renew unless terminated by either party on ten days’ written notice. The Company earned rental income of $2,301 and $2,001 for the three months ended June 30, 2020 and 2019, respectively, and $4,602 and $4,002 for the six months ended June 30, 2020 and 2019, respectively. On May 19, 2020, MMC (the “Borrower”) entered into a Paycheck Protection Program Term Note (“PPP Note”) with Customers Bank on behalf of itself and the Affiliates under the Paycheck Protection Program (the "Program") of the recently enacted Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") administered by the U.S. Small Business Administration. The Borrower received total proceeds of $486,602 from the PPP Note. In accordance with the requirements of the CARES Act, the Affiliates expect to use proceeds from the PPP Note primarily for payroll and other eligible costs. Interest accrues on the PPP Note at the rate per annum of 1.00%. The Borrower may apply to Customers Bank for forgiveness of the amount due on the PPP Note which shall be an amount equal to the sum of payroll costs, mortgage interest, rent obligations and covered utility payments incurred during, at the Borrowers discretion, either the eight weeks or twenty-four weeks (the “Covered Period”) following disbursement under the PPP Note. During the period from May 19, 2020 through the six-month anniversary of the date of the PPP Note (the “Deferral Expiration Date”), neither principal nor interest shall be due and payable. On the Deferral Expiration Date, the outstanding principal of the PPP Note or the amount that is not forgiven under the Program shall convert to an amortizing term loan. On May 19, 2022, all accrued interest that is not forgiven under the Program shall be due and payable. Additionally, on December 19, 2020 and continuing on the 19th day of each month thereafter until May 19, 2022 equal installments of principal shall be due and payable, each in an amount determined by the Lender (the “Monthly Principal Amount”). Interest shall be payable at the same time as the Monthly Principal Amount. Any outstanding principal and accrued interest shall be due and payable in full on May 19, 2022. The Company expects to contribute to the repayment of outstanding principal and interest in proportion to its share of payroll and other eligible costs used in the original calculation of the loan request. For the three and six months ended June 30, 2020, there has been no material impact to the Company’s operations or cash flows due to the PPP Note. If and when the PPP Note is, in part or wholly forgiven, and legal release is received, the Company expects to record a gain in an amount proportionate to its share of payroll costs and other eligible expenses incurred during the Covered Period. The Company expects the loan forgiveness to reduce such expenses and reduce related reimbursements to MMC and Winco accordingly. |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Capital Stock | 11. CAPITAL STOCK As of June 30, 2020, the Company was authorized to issue 450,000,000 shares of $0.01 par value common stock of which 9,356,202 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 | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 12. 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 26, 2020, the Company approved restricted stock awards under the Plan to certain of its officers and employees in the aggregate amount of 25,905 shares, of which 10,880 shares are time-based grants and 15,025 shares are performance-based grants. The Company recorded $35,317 and $51,731 for the three months ended June 30, 2020 and 2019, respectively, and $64,478 and $105,890 for the six months ended June 30, 2020 and 2019, respectively, of expense in general and administrative expense in its statement of operations related to restricted stock awards. At June 30, 2020, there was $172,164 and $144,117 of unrecognized compensation expense related to unvested time-based and performance-based restricted stock awards, respectively. That cost is expected to be recognized over a weighted-average period of 2.34 and 2.73 years for time-based and performance-based awards, respectively. 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 grants entitle 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, 2019 39,932 $ 4.31 Granted 10,880 $ 3.58 Vested (8,946 ) $ 4.28 Unvested at June 30, 2020 41,866 $ 4.13 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 2020. Each of these performance components are weighted 50% and are measured over the performance cycle, which is defined as the year ending on December 31st in the year of grant. At the end of the performance cycle, the financial performance components are reviewed to determine the number of shares actually earned, which can be as low as 0% of shares granted and up to a maximum of 200% of shares granted. 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 2020, 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, 2019 27,739 $ 4.21 Granted 15,025 $ 3.58 Vested (5,332 ) $ 4.25 Unvested at June 30, 2020 37,432 $ 3.95 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 | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Upon deregistration as an investment company, effective January 19, 2016, 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 six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated balance sheet as of December 31, 2019 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, 2019. Risks and Uncertainties — The recent outbreak of the novel coronavirus pandemic (“COVID-19”) around the globe continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving and many countries, including the United States, have reacted by, among other things, instituting quarantines, mandating business and school closures, restricting travel and imposing social distancing practices. Such actions are creating significant disruption in global supply chains, and adversely impacting a number of industries. The major disruption caused by COVID-19 brought to a halt most economic activity in most of the United States resulting in a significant increase in unemployment claims and a significant decline in the U.S. Gross Domestic Product (“GDP”). COVID-19 has had a continued and prolonged adverse impact on economic and market conditions and has triggered a period of economic slowdown which could have a material adverse effect on the Company’s results and financial condition. The full impact of COVID-19 on the real estate industry, the credit markets and consequently on the Company’s financial condition and results of operations is uncertain and cannot be predicted at the current time as it depends on several factors beyond the control of the Company including, but not limited to (i) the uncertainty around the severity and duration of the outbreak, (ii) the effectiveness of the United States public health response, (iii) the pandemic’s impact on the U.S. and global economies, (iv) the timing, scope and effectiveness of additional governmental responses to the pandemic, (v) the timing and speed of economic recovery, including the availability of a treatment or vaccination for COVID-19, and (vi) the negative impact on our properties. |
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. Cash equivalents consists of money market fund shares and may include, among other things, highly liquid investments purchased with an original maturity of three months or less. 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. The following table provides a reconciliation of cash, cash equivalents, and restricted cash in our unaudited consolidated balance sheets to the total amount shown in our consolidated statements of cash flows: June 30, 2020 December 31, 2019 Cash and cash equivalents $ 2,385,653 $ 3,990,160 Restricted cash 302,072 263,405 Total cash, cash equivalents, and restricted cash as shown in our unaudited consolidated statements of cash flows $ 2,687,725 $ 4,253,565 |
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 has elected to treat its corporate subsidiary, SSG TRS LLC, as a taxable REIT subsidiary (“TRS”). In general, the Company’s TRS may perform additional services for tenants and may engage in any real estate or non-real estate related business. A TRS is subject to federal corporate income tax. 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 (2016 – 2018), or is expected to be taken in the Company’s 2019 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. 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 1, 2018 and are generally capitalized for acquisitions that qualify as asset acquisitions. When properties 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 properties 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 an interest rate cap agreement. 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 analysis of the interest rate cap 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. |
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 in accordance with ASC Topic 842, Leases The Company's management fees are earned subject to the terms of the related property management services agreements (“PSAs”). These PSAs provide that the Company will perform management services, which include leasing and operating the property and providing accounting, marketing, banking, maintenance and other services. These services are provided in exchange for monthly management fees, which are based on a percentage of revenues collected from stores owned by third parties. PSAs generally have original terms of three years, after which management services are provided on a month-to-month basis unless terminated. Management fees are due on the last day of each calendar month that management services are provided. The Company accounts for the management services provided to a customer as a single performance obligation which are rendered over time each month in accordance with ASC Topic 606, Revenue from Contracts with Customers 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. 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 lease, and goodwill for impairment annually. If there are indicators of impairment and we determine that the 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. The Company evaluates goodwill for impairment annually and whenever relevant events, circumstances, and other related factors indicate that fair value may be less that carrying amounts. If it is determined that the carrying amount of goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value, an impairment charge is recorded. As a result of the recent global economic disruption and uncertainty due to the COVID-19 pandemic, the Company concluded a triggering event had occurred as of June 30, 2020, and accordingly, performed interim impairment testing. Based on the quantitative assessment performed, the Company concluded that no impairment existed. |
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. For awards granted which contain a graded vesting schedule and the only condition for vesting is a service condition, compensation cost is recognized as an expense on a straight-line basis over the requisite service period as if the award was, in substance, a single award. For awards granted for which vesting is subject to a performance condition, compensation cost is recognized over the requisite service period if and when the Company concludes it is probable that the performance condition will be achieved. |
Loan Procurement Costs | Loan Procurement Costs Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If 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. The effects of the COVID-19 pandemic may negatively and materially impact significant estimates and assumptions used by the Company including, but not limited to estimates of expected credit losses and the fair value estimates of the Company’s assets and liabilities. 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 Company adopted this guidance on January 1, 2020, with no material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 – Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new guidance changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU No. 2018-19 – Codification Improvements to Topic 326, Financial Instruments - Credit Losses, which clarifies that receivables arising from operating leases are within the scope of the leasing standard (ASU No. 2016-02), and not within the scope of ASU No. 2016-13. The Company adopted this standard on January 1, 2020, with no material impact on the Company’s consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848)." ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash in our unaudited consolidated balance sheets to the total amount shown in our consolidated statements of cash flows: June 30, 2020 December 31, 2019 Cash and cash equivalents $ 2,385,653 $ 3,990,160 Restricted cash 302,072 263,405 Total cash, cash equivalents, and restricted cash as shown in our unaudited consolidated statements of cash flows $ 2,687,725 $ 4,253,565 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 December 31, 2019 Land $ 6,122,065 $ 6,122,065 Buildings, improvements, and equipment 59,808,351 57,178,338 Construction in progress 46,187 1,532,235 Self storage properties 65,976,603 64,832,638 Less: Accumulated depreciation (5,858,856 ) (5,080,485 ) Real estate assets, net $ 60,117,747 $ 59,752,153 |
Marketable Equity Securities (T
Marketable Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investments in Marketable Equity Securities | Investments in marketable equity securities consisted of the following: Gross Unrealized June 30, 2020 Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 787,656 $ — $ 1,543,143 Total investment in marketable equity securities $ 755,487 $ 787,656 $ — $ 1,543,143 Gross Unrealized December 31, 2019 Cost Basis Gains Losses Value Investment in marketable equity securities Common stocks $ 755,487 $ 1,005,825 $ — $ 1,761,312 Total investment in marketable equity securities $ 755,487 $ 1,005,825 $ — $ 1,761,312 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,543,143 $ — $ — $ 1,543,143 Interest rate cap derivative — 1,053 — 1,053 Total assets at fair value $ 1,543,143 $ 1,053 $ — $ 1,544,196 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Marketable equity securities $ 1,761,312 $ — $ — $ 1,761,312 Interest rate cap derivative — 51 — 51 Total assets at fair value $ 1,761,312 $ 51 $ — $ 1,761,363 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: Notional Amount Effective Maturity Product June 30, 2020 December 31, 2019 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) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Payable [Abstract] | |
Carrying Value of Note Payable | The carrying value of the Company’s note payable is summarized as follows: Note Payable June 30, 2020 December 31, 2019 Principal balance outstanding $ 19,095,584 $ 19,338,556 Less: Loan procurement costs, net (478,403 ) (498,769 ) Total note payable, net $ 18,617,181 $ 18,839,787 |
Future Principal Payment Requirements | The following table represents the future principal payment requirements on the note payable as of June 30, 2020: 2020 (6 months) $ 289,968 2021 513,857 2022 535,816 2023 558,714 2024 582,591 2025 and thereafter 16,614,638 Total principal payments $ 19,095,584 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Net income (loss) $ (22,144 ) $ 136,845 $ (378,568 ) $ 324,668 Weighted average common shares outstanding: Average number of common shares outstanding - basic 9,269,567 7,640,991 9,266,189 7,635,885 Net effect of dilutive unvested restricted stock awards included for treasury stock method — 9,305 — 7,095 Average number of common shares outstanding - diluted 9,269,567 7,650,296 9,266,189 7,642,980 Earnings per common share Basic $ (0.00 ) $ 0.02 $ (0.04 ) $ 0.04 Diluted $ (0.00 ) $ 0.02 $ (0.04 ) $ 0.04 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019 39,932 $ 4.31 Granted 10,880 $ 3.58 Vested (8,946 ) $ 4.28 Unvested at June 30, 2020 41,866 $ 4.13 |
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, 2019 27,739 $ 4.21 Granted 15,025 $ 3.58 Vested (5,332 ) $ 4.25 Unvested at June 30, 2020 37,432 $ 3.95 |
Organization - Additional Infor
Organization - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020storesegment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of owned self-storage properties | store | 13 |
Number of operating segment | segment | 1 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 2,385,653 | $ 3,990,160 | ||
Restricted cash | 302,072 | 263,405 | ||
Total cash, cash equivalents, and restricted cash as shown in our unaudited consolidated statements of cash flows | $ 2,687,725 | $ 4,253,565 | $ 1,316,376 | $ 1,712,266 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020USD ($)Contract | |
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 |
Property Management Services Agreements | |
Summary Of Significant Accounting Policies [Line Items] | |
Services agreement original terms | 3 years |
Number of contract | Contract | 1 |
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 |
Real Estate Assets - Summary of
Real Estate Assets - Summary of Carrying Value of Real Estate Assets (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Real Estate [Abstract] | ||
Land | $ 6,122,065 | $ 6,122,065 |
Buildings, improvements, and equipment | 59,808,351 | 57,178,338 |
Construction in progress | 46,187 | 1,532,235 |
Self storage properties | 65,976,603 | 64,832,638 |
Less: Accumulated depreciation | (5,858,856) | (5,080,485) |
Real estate assets, net | $ 60,117,747 | $ 59,752,153 |
Real Estate Assets - Additional
Real Estate Assets - Additional Information (Details) - ft² | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 29, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | |
McCordsville, IN | |||
Real Estate Properties [Line Items] | |||
Gross square feet of traditional drive-up storage units and all-climate-controlled units | 13,713 | ||
McCordsville, IN | Scenario Forecast | |||
Real Estate Properties [Line Items] | |||
Number of leasable unit | 7,300 | ||
Millbrook, NY | |||
Real Estate Properties [Line Items] | |||
Gross square feet of traditional drive-up storage units and all-climate-controlled units | 11,800 |
Marketable Equity Securities -
Marketable Equity Securities - Schedule of Investments in Marketable Equity Securities (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | $ 755,487 | $ 755,487 |
Gross Unrealized Gains | 787,656 | 1,005,825 |
Value | 1,543,143 | 1,761,312 |
Common Stock | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost Basis | 755,487 | 755,487 |
Gross Unrealized Gains | 787,656 | 1,005,825 |
Value | $ 1,543,143 | $ 1,761,312 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Total assets at fair value | $ 1,544,196 | $ 1,761,363 |
Marketable Equity Securities | ||
Assets | ||
Total assets at fair value | 1,543,143 | 1,761,312 |
Interest Rate Cap Derivative | ||
Assets | ||
Total assets at fair value | 1,053 | 51 |
Level 1 | ||
Assets | ||
Total assets at fair value | 1,543,143 | 1,761,312 |
Level 1 | Marketable Equity Securities | ||
Assets | ||
Total assets at fair value | 1,543,143 | 1,761,312 |
Level 2 | ||
Assets | ||
Total assets at fair value | 1,053 | 51 |
Level 2 | Interest Rate Cap Derivative | ||
Assets | ||
Total assets at fair value | $ 1,053 | $ 51 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Jun. 30, 2020USD ($) |
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 |
Level 2 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Estimated fair value of debt | $ 24,235,505 |
Derivatives - Summary of Terms
Derivatives - Summary of Terms of Derivative Financial Instrument (Details) - Cap Agreement - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
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 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||||
Borrowing principal amount | $ 19,095,584 | $ 19,095,584 | $ 19,338,556 | ||||
Loan procurement costs | $ 646,246 | 478,403 | 478,403 | 498,769 | |||
Amortization expense | 100,029 | $ 100,534 | |||||
Note payable, net book value | 34,300,000 | 34,300,000 | |||||
Line of credit, outstanding borrowings | 4,914,000 | 4,914,000 | 4,914,000 | ||||
Revolving Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Amortization expense | 39,832 | $ 39,832 | 79,663 | 79,663 | |||
Line of credit, issuance costs | $ 477,981 | ||||||
Line of credit, outstanding borrowings | 4,914,000 | 4,914,000 | $ 4,914,000 | ||||
Promissory Note | |||||||
Debt Instrument [Line Items] | |||||||
Borrowing principal amount | $ 20,000,000 | ||||||
Debt instrument interest rate | 4.192% | ||||||
Debt instrument maturity date | Jul. 1, 2036 | ||||||
Amortization expense | $ 10,150 | $ 10,405 | $ 20,366 | $ 20,871 | |||
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% | ||||||
Debt instrument effective interest rate | 6.46% |
Note Payable - Carrying Value o
Note Payable - Carrying Value of Note Payable (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 24, 2016 |
Notes Payable [Abstract] | |||
Principal balance outstanding | $ 19,095,584 | $ 19,338,556 | |
Less: Loan procurement costs, net | (478,403) | (498,769) | $ (646,246) |
Total note payable, net | $ 18,617,181 | $ 18,839,787 |
Note Payable - Future Principal
Note Payable - Future Principal Payment Requirements (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Notes Payable [Abstract] | ||
2020 (6 months) | $ 289,968 | |
2021 | 513,857 | |
2022 | 535,816 | |
2023 | 558,714 | |
2024 | 582,591 | |
2025 and thereafter | 16,614,638 | |
Total principal payments | $ 19,095,584 | $ 19,338,556 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Leases [Abstract] | |||||
Operating lease right-of-use asset | $ 31,412 | $ 0 | |||
Operating lease liability | $ 31,412 | $ 0 | |||
Operating lease weighted average remaining lease term | 2 years 3 months 18 days | ||||
Operating lease weighted average discount rate percent | 4.78% | ||||
Future minimum lease payments | $ 11,878 | $ 14,254 | $ 7,127 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income (loss) | $ (22,144) | $ (356,424) | $ 136,845 | $ 187,823 | $ (378,568) | $ 324,668 |
Weighted average common shares outstanding: | ||||||
Average number of common shares outstanding - basic | 9,269,567 | 7,640,991 | 9,266,189 | 7,635,885 | ||
Net effect of dilutive unvested restricted stock awards included for treasury stock method | 9,305 | 7,095 | ||||
Average number of common shares outstanding - diluted | 9,269,567 | 7,650,296 | 9,266,189 | 7,642,980 | ||
Earnings per common share | ||||||
Basic | $ 0 | $ 0.02 | $ (0.04) | $ 0.04 | ||
Diluted | $ 0 | $ 0.02 | $ (0.04) | $ 0.04 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Common stock dividends | $ 608,153 | $ 502,407 | $ 1,214,623 | $ 1,005,701 |
Common stock dividends per share | $ 0.065 | $ 0.065 | $ 0.13 | $ 0.13 |
Restricted Stock Awards | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti dilutive shares excluded from computation of diluted net loss per common share | 16,863 | 16,906 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | May 19, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Related Party Transaction [Line Items] | |||||
Reimbursement of monthly automobile expenses | $ 1,000 | ||||
Automobile reimbursement amount | $ 2,254 | $ 3,228 | |||
Paycheck Protection Program Term Note ("PPP Note") | |||||
Related Party Transaction [Line Items] | |||||
Description of note | During the period from May 19, 2020 through the six-month anniversary of the date of the PPP Note (the “Deferral Expiration Date”), neither principal nor interest shall be due and payable. On the Deferral Expiration Date, the outstanding principal of the PPP Note or the amount that is not forgiven under the Program shall convert to an amortizing term loan. On May 19, 2022, all accrued interest that is not forgiven under the Program shall be due and payable. Additionally, on December 19, 2020 and continuing on the 19th day of each month thereafter until May 19, 2022 equal installments of principal shall be due and payable, each in an amount determined by the Lender (the “Monthly Principal Amount”). Interest shall be payable at the same time as the Monthly Principal Amount. Any outstanding principal and accrued interest shall be due and payable in full on May 19, 2022. The Company expects to contribute to the repayment of outstanding principal and interest in proportion to its share of payroll and other eligible costs used in the original calculation of the loan request. For the three and six months ended June 30, 2020, there has been no material impact to the Company’s operations or cash flows due to the PPP Note. If and when the PPP Note is, in part or wholly forgiven, and legal release is received, the Company expects to record a gain in an amount proportionate to its share of payroll costs and other eligible expenses incurred during the Covered Period. The Company expects the loan forgiveness to reduce such expenses and reduce related reimbursements to MMC and Winco accordingly. | ||||
PEO | |||||
Related Party Transaction [Line Items] | |||||
Termination of notice period | 10 days | ||||
Rental income | $ 2,301 | $ 2,001 | $ 4,602 | 4,002 | |
PEO | Paycheck Protection Program Term Note ("PPP Note") | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from Note | $ 486,602 | ||||
Interest rate of note | 1.00% | ||||
PEO | Global Self Storage, Inc | |||||
Related Party Transaction [Line Items] | |||||
Percentage ownership by affiliates, directors and employees | 7.80% | 7.80% | |||
Winco | |||||
Related Party Transaction [Line Items] | |||||
Aggregate rent and overhead accrued expense paid | $ 18,013 | $ 17,346 | $ 39,341 | $ 36,683 | |
MMC and Winco | |||||
Related Party Transaction [Line Items] | |||||
Reimbursements payable | $ 66,339 | $ 66,339 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Equity [Abstract] | ||
Common stock, shares authorized | 450,000,000 | 450,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 9,356,202 | 9,330,297 |
Common stock, shares outstanding | 9,356,202 | 9,330,297 |
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. 26, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | 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 | $ 64,479 | $ 105,890 | ||||
Time-Based Restricted Stock Grants | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares, granted | 10,880 | |||||
Performance-Based Restricted Stock Grants | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares, granted | 15,025 | |||||
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 | $ 35,317 | $ 51,731 | $ 64,478 | $ 105,890 | ||
2017 Equity Incentive Plan | Restricted Stock Awards | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares, granted | 25,905 | |||||
2017 Equity Incentive Plan | Time-Based Restricted Stock Grants | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Number of shares, granted | 10,880 | |||||
Unrecognized share-based compensation cost related to unvested restricted stock awards | 172,164 | $ 172,164 | ||||
Cost is expected to be recognized over a weighted average periods | 2 years 4 months 2 days | |||||
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. | |||||
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 | |||||
Unrecognized share-based compensation cost related to unvested restricted stock awards | $ 144,117 | $ 144,117 | ||||
Cost is expected to be recognized over a weighted average periods | 2 years 8 months 23 days | |||||
Vesting period | 4 years | |||||
Shares measured weighted performance cycle | 50.00% | |||||
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% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Time Based Restricted Stock Grant Activity (Details) - Time-Based Restricted Stock Grants | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Beginning, Stock | shares | 39,932 |
Granted, Stock | shares | 10,880 |
Vested, Stock | shares | (8,946) |
Unvested Ending, Stock | shares | 41,866 |
Unvested Beginning, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.31 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 3.58 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 4.28 |
Unvested Ending, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.13 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Performance Based Grant Activity (Details) - Performance-Based Restricted Stock Grants | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Unvested Beginning, Stock | shares | 27,739 |
Granted, Stock | shares | 15,025 |
Vested, Stock | shares | (5,332) |
Unvested Ending, Stock | shares | 37,432 |
Unvested Beginning, Weighted-Average Grant-Date Fair Value | $ / shares | $ 4.21 |
Granted, Weighted-Average Grant-Date Fair Value | $ / shares | 3.58 |
Vested, Weighted-Average Grant-Date Fair Value | $ / shares | 4.25 |
Unvested Ending, Weighted-Average Grant-Date Fair Value | $ / shares | $ 3.95 |