Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 21, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | EXR | ||
Entity Registrant Name | Extra Space Storage Inc. | ||
Entity Central Index Key | 1,289,490 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 126,037,528 | ||
Entity Public Float | $ 9,468,562,974 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Real estate assets, net | $ 7,132,431 | $ 6,770,447 |
Investments in unconsolidated real estate ventures | 70,091 | 79,570 |
Cash and cash equivalents | 55,683 | 43,858 |
Restricted cash | 30,361 | 13,884 |
Receivables from related parties and affiliated real estate joint ventures | 2,847 | 16,611 |
Other assets, net | 163,724 | 167,076 |
Total assets | 7,455,137 | 7,091,446 |
Liabilities, Noncontrolling Interests and Equity: | ||
Notes payable, net | 3,738,497 | 3,213,588 |
Exchangeable senior notes, net | 604,276 | 610,314 |
Notes payable to trusts, net | 117,444 | 117,321 |
Revolving lines of credit | 94,000 | 365,000 |
Accounts payable and accrued expenses | 96,087 | 101,388 |
Other liabilities | 81,026 | 87,669 |
Total liabilities | 4,731,330 | 4,495,280 |
Commitments and contingencies | ||
Extra Space Storage Inc. stockholders' equity: | ||
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 500,000,000 shares authorized, 126,007,091 and 125,881,460 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 1,260 | 1,259 |
Additional paid-in capital | 2,569,485 | 2,566,120 |
Accumulated other comprehensive income | 33,290 | 16,770 |
Accumulated deficit | (253,284) | (339,257) |
Total Extra Space Storage Inc. stockholders' equity | 2,350,751 | 2,244,892 |
Noncontrolling interest represented by Preferred Operating Partnership units, net of $120,230 notes receivable | 159,636 | 147,920 |
Noncontrolling interests in Operating Partnership | 213,301 | 203,354 |
Other noncontrolling interests | 119 | 0 |
Total noncontrolling interests and equity | 2,723,807 | 2,596,166 |
Total liabilities, noncontrolling interests and equity | $ 7,455,137 | $ 7,091,446 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 126,007,091 | 125,881,460 |
Common stock, shares outstanding (in shares) | 126,007,091 | 125,881,460 |
Note receivable from noncontrolling interest represented by Preferred Operating Partnership units | $ 120,230 | $ 120,230 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Property rental | $ 967,229 | $ 864,742 | $ 676,138 |
Tenant reinsurance | 98,401 | 87,291 | 71,971 |
Management fees and other income | 39,379 | 39,842 | 34,161 |
Total revenues | 1,105,009 | 991,875 | 782,270 |
Expenses: | |||
Property operations | 271,974 | 250,005 | 203,965 |
Tenant reinsurance | 19,173 | 15,555 | 13,033 |
Acquisition related costs and other | 0 | 12,111 | 69,401 |
General and administrative | 78,961 | 81,806 | 67,758 |
Depreciation and amortization | 193,296 | 182,560 | 133,457 |
Total expenses | 563,404 | 542,037 | 487,614 |
Revenues less cost of operations | 541,605 | 449,838 | 294,656 |
Gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate | 112,789 | 8,465 | 1,501 |
Interest expense | (153,511) | (133,479) | (95,682) |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (5,103) | (4,980) | (3,310) |
Interest income | 3,801 | 6,148 | 3,461 |
Interest income on note receivable from Preferred Operating Partnership unit holder | 2,935 | 4,850 | 4,850 |
Income before equity in earnings of unconsolidated real estate ventures and income tax expense | 502,516 | 330,842 | 205,476 |
Equity in earnings of unconsolidated real estate ventures | 15,331 | 12,895 | 12,351 |
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests | 0 | 69,199 | 2,857 |
Income tax expense | (3,625) | (15,847) | (11,148) |
Net income | 514,222 | 397,089 | 209,536 |
Net income allocated to Preferred Operating Partnership noncontrolling interests | (14,989) | (14,700) | (11,718) |
Net income allocated to Operating Partnership and other noncontrolling interests | (20,220) | (16,262) | (8,344) |
Net income attributable to common stockholders | $ 479,013 | $ 366,127 | $ 189,474 |
Earnings per common share | |||
Basic (in dollars per share) | $ 3.79 | $ 2.92 | $ 1.58 |
Diluted (in dollars per share) | $ 3.76 | $ 2.91 | $ 1.56 |
Weighted average number of shares | |||
Basic (in shares) | 125,967,831 | 125,087,554 | 119,816,743 |
Diluted (in shares) | 134,155,771 | 125,948,076 | 126,918,869 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 514,222 | $ 397,089 | $ 209,536 |
Other comprehensive income (loss): | |||
Change in fair value of interest rate swaps | 17,308 | 24,598 | (4,929) |
Total comprehensive income | 531,530 | 421,687 | 204,607 |
Less: comprehensive income attributable to noncontrolling interests | 35,997 | 32,438 | 20,001 |
Comprehensive income attributable to common stockholders | $ 495,533 | $ 389,249 | $ 184,606 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred D Units | Preferred Operating Partnership, Series A | Preferred Operating Partnership, Series B | Preferred Operating Partnership, Series C | Preferred Operating Partnership, Series D | Preferred Operating Partnership, Series DPreferred D Units | Operating Partnership | Other | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Redemption of Operating Partnership units for sale of property | Redemption of Operating Partnership units for sale of propertyOperating Partnership | Redemption of Operating Partnership units for common stock and cash | Redemption of Operating Partnership units for common stock and cashOperating Partnership | Redemption of Operating Partnership units for common stock and cashCommon Stock | Redemption of Operating Partnership units for common stock and cashAdditional Paid-in Capital |
Beginning balance at Dec. 31, 2014 | $ 1,911,983 | $ 14,809 | $ 41,903 | $ 10,730 | $ 13,710 | $ 92,422 | $ 984 | $ 1,163 | $ 1,995,484 | $ (1,484) | $ (257,738) | ||||||||
Beginning balance (in shares) at Dec. 31, 2014 | 116,360,239 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock upon the exercise of options (in shares) | 79,974 | 79,974 | |||||||||||||||||
Issuance of common stock upon the exercise of options | $ 1,542 | $ 1 | 1,541 | ||||||||||||||||
Restricted stock grants issued (in shares) | 174,558 | ||||||||||||||||||
Restricted stock grants issued | 2 | $ 2 | |||||||||||||||||
Restricted stock grants cancelled (in shares) | (18,090) | ||||||||||||||||||
Restricted stock grants cancelled | 0 | ||||||||||||||||||
Issuance of common stock, net of offering costs (in shares) | 6,735,000 | ||||||||||||||||||
Issuance of common stock, net of offering costs | 446,877 | $ 67 | 446,810 | ||||||||||||||||
Compensation expense related to stock-based awards | 6,055 | 6,055 | |||||||||||||||||
Purchase of remaining equity interest in existing consolidated joint venture | (1,268) | (822) | (446) | ||||||||||||||||
Issuance of Operating Partnership units in conjunction with acquisitions | 142,399 | 142,399 | |||||||||||||||||
Redemption of Operating Partnership units | 0 | (28,106) | $ 8 | 28,098 | |||||||||||||||
Redemption of Operating Partnership units (in shares) | 787,850 | ||||||||||||||||||
Repurchase of equity portion of 2013 exchangeable senior notes | (70,112) | (70,112) | |||||||||||||||||
Issuance of 2015 exchangeable senior notes - equity component | 22,597 | 22,597 | |||||||||||||||||
Net income (loss) | 209,536 | 6,445 | 2,514 | 2,074 | 685 | 8,344 | 189,474 | ||||||||||||
Other comprehensive income (loss) | (4,929) | (15) | (46) | (4,868) | |||||||||||||||
Tax effect from vesting of restricted stock grants and stock option exercises | 1,727 | 1,727 | |||||||||||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (24,503) | (7,050) | (2,515) | (2,074) | (685) | (12,179) | |||||||||||||
Dividends paid on common stock | (269,302) | (269,302) | |||||||||||||||||
Ending balance at Dec. 31, 2015 | $ 2,372,604 | 14,189 | 41,902 | 10,730 | 13,710 | 202,834 | 162 | $ 1,241 | 2,431,754 | (6,352) | (337,566) | ||||||||
Ending balance (in shares) at Dec. 31, 2015 | 124,119,531 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock upon the exercise of options (in shares) | 97,855 | 97,855 | |||||||||||||||||
Issuance of common stock upon the exercise of options | $ 1,444 | 1,444 | |||||||||||||||||
Restricted stock grants issued (in shares) | 119,931 | ||||||||||||||||||
Restricted stock grants issued | 2 | $ 2 | |||||||||||||||||
Restricted stock grants cancelled (in shares) | (9,947) | ||||||||||||||||||
Restricted stock grants cancelled | 0 | ||||||||||||||||||
Issuance of common stock, net of offering costs (in shares) | 1,381,300 | ||||||||||||||||||
Issuance of common stock, net of offering costs | 123,422 | $ 14 | 123,408 | ||||||||||||||||
Compensation expense related to stock-based awards | 8,045 | 8,045 | |||||||||||||||||
Purchase of remaining equity interest in existing consolidated joint venture | 0 | 800 | (162) | (638) | |||||||||||||||
Issuance of Operating Partnership units in conjunction with acquisitions | 7,247 | $ 67,193 | $ 67,193 | 7,247 | |||||||||||||||
Redemption of Operating Partnership units | $ (7,689) | $ (7,689) | $ (506) | $ (1,083) | $ 577 | ||||||||||||||
Redemption of Operating Partnership units (in shares) | 23,850 | ||||||||||||||||||
Repurchase of equity portion of 2013 exchangeable senior notes (in shares) | 148,940 | ||||||||||||||||||
Repurchase of equity portion of 2013 exchangeable senior notes | (872) | $ 2 | (874) | ||||||||||||||||
Net income (loss) | 397,089 | 7,645 | 2,514 | 2,570 | 1,971 | 16,262 | 366,127 | ||||||||||||
Other comprehensive income (loss) | 24,598 | 201 | 1,275 | 23,122 | |||||||||||||||
Tax effect from vesting of restricted stock grants and stock option exercises | 2,404 | 2,404 | |||||||||||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (30,997) | (7,650) | (2,514) | (2,570) | (1,971) | (16,292) | |||||||||||||
Dividends paid on common stock | (367,818) | (367,818) | |||||||||||||||||
Ending balance at Dec. 31, 2016 | $ 2,596,166 | 14,385 | 41,902 | 10,730 | 80,903 | 203,354 | 0 | $ 1,259 | 2,566,120 | 16,770 | (339,257) | ||||||||
Ending balance (in shares) at Dec. 31, 2016 | 125,881,460 | 125,881,460 | |||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||||
Issuance of common stock upon the exercise of options (in shares) | 38,418 | 38,418 | |||||||||||||||||
Issuance of common stock upon the exercise of options | $ 1,266 | 1,266 | |||||||||||||||||
Restricted stock grants issued (in shares) | 95,392 | ||||||||||||||||||
Restricted stock grants issued | 0 | $ 1 | (1) | ||||||||||||||||
Restricted stock grants cancelled (in shares) | (8,179) | ||||||||||||||||||
Restricted stock grants cancelled | 0 | ||||||||||||||||||
Compensation expense related to stock-based awards | 9,561 | 9,561 | |||||||||||||||||
Purchase of remaining equity interest in existing consolidated joint venture | (2,510) | (1,238) | (1,272) | ||||||||||||||||
Issuance of Operating Partnership units in conjunction with acquisitions | 7,618 | $ 11,161 | $ 11,161 | 7,618 | |||||||||||||||
Noncontrolling Interest in consolidated joint venture | 216 | 216 | |||||||||||||||||
Repurchase of equity portion of 2013 exchangeable senior notes | (6,189) | (6,189) | |||||||||||||||||
Net income (loss) | 514,222 | 6,300 | 2,514 | 2,703 | 3,472 | 20,317 | (97) | 479,013 | |||||||||||
Other comprehensive income (loss) | 17,308 | 106 | 682 | 16,520 | |||||||||||||||
Tax effect from vesting of restricted stock grants and stock option exercises | 0 | ||||||||||||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (31,972) | (5,851) | (2,514) | (2,703) | (3,472) | (17,432) | |||||||||||||
Dividends paid on common stock | (393,040) | (393,040) | |||||||||||||||||
Ending balance at Dec. 31, 2017 | $ 2,723,807 | $ 14,940 | $ 41,902 | $ 10,730 | $ 92,064 | $ 213,301 | $ 119 | $ 1,260 | $ 2,569,485 | $ 33,290 | $ (253,284) | ||||||||
Ending balance (in shares) at Dec. 31, 2017 | 126,007,091 | 126,007,091,000 |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends paid on common stock (in dollars per share) | $ 3.12 | $ 2.93 | $ 2.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 514,222 | $ 397,089 | $ 209,536 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 193,296 | 182,560 | 133,457 |
Amortization of deferred financing costs | 12,289 | 12,922 | 7,779 |
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | 5,103 | 4,980 | 3,310 |
Non-cash interest expense related to amortization of premium on notes payable | 0 | (872) | (2,409) |
Compensation expense related to stock-based awards | 9,561 | 8,045 | 6,055 |
Gain on sale of real estate assets and purchase of joint venture partners' interests | 0 | (69,199) | (2,857) |
Gain on real estate transactions, earnout from prior acquisition and impairment of real estate | (112,789) | (8,465) | (1,501) |
Distributions from unconsolidated real estate ventures in excess of earnings | 4,567 | 3,534 | 4,531 |
Changes in operating assets and liabilities: | |||
Receivables from related parties and affiliated real estate joint ventures | 1,966 | 1,367 | (1,436) |
Other assets | (14,694) | (2,981) | (1,172) |
Accounts payable and accrued expenses | (10,515) | 10,075 | 108 |
Other liabilities | (5,631) | 208 | 11,928 |
Net cash provided by operating activities | 597,375 | 539,263 | 367,329 |
Cash flows from investing activities: | |||
Acquisition of real estate assets | 653,185 | 1,086,523 | 349,897 |
Development and redevelopment of real estate assets | (31,746) | (23,279) | (26,931) |
Acquisition of SmartStop, net of cash acquired | 0 | 0 | (1,200,853) |
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | 312,165 | 60,813 | 800 |
Change in restricted cash | (16,477) | 16,854 | 1,282 |
Investment in unconsolidated real estate ventures | (17,944) | (28,241) | (3,434) |
Return of investment in unconsolidated real estate ventures | 581 | 16,953 | 45,080 |
Purchase/issuance of notes receivable | 0 | (26,429) | (84,331) |
Principal payments received from notes receivable | 44,869 | 42,785 | 0 |
Purchase of equipment and fixtures | (7,819) | (4,968) | (7,380) |
Net cash used in investing activities | (369,556) | (1,032,035) | (1,625,664) |
Cash flows from financing activities: | |||
Proceeds from the sale of common stock, net of offering costs | 0 | 123,424 | 446,877 |
Proceeds from notes payable and revolving lines of credit | 1,325,623 | 1,900,357 | 2,121,802 |
Principal payments on notes payable and revolving lines of credit | (1,088,679) | (1,122,442) | (1,313,570) |
Deferred financing costs | (6,967) | (17,486) | (9,779) |
Net proceeds from the issuance of 2015 exchangeable senior notes | 0 | 0 | 563,500 |
Repurchase of exchangeable senior notes | (19,916) | (22,195) | (227,212) |
Net proceeds from exercise of stock options | 1,266 | 1,444 | 1,542 |
Proceeds from termination of interest rate cap | 0 | 1,650 | 0 |
Purchase of interest rate cap | 0 | 0 | (2,884) |
Payment of earnout from prior acquisition | 0 | (4,600) | 0 |
Redemption of Operating Partnership units held by noncontrolling interests | (2,510) | (506) | 0 |
Contributions from noncontrolling interests | 201 | 0 | 0 |
Dividends paid on common stock | (393,040) | (367,818) | (269,302) |
Distributions to noncontrolling interests | (31,972) | (30,997) | (24,503) |
Net cash provided by (used in) financing activities | (215,994) | 460,831 | 1,286,471 |
Net increase (decrease) in cash and cash equivalents | 11,825 | (31,941) | 28,136 |
Cash and cash equivalents, beginning of the period | 43,858 | 75,799 | 47,663 |
Cash and cash equivalents, end of the period | 55,683 | 43,858 | 75,799 |
Supplemental schedule of cash flow information | |||
Interest paid | 136,202 | 122,265 | 89,507 |
Income taxes paid | 5,648 | 14,864 | 1,782 |
Redemption of Operating Partnership units held by noncontrolling interests for common stock | |||
Noncontrolling interests in Operating Partnership | 0 | (577) | (28,106) |
Common stock and paid-in capital | 0 | 577 | 28,106 |
Tax effect from vesting of restricted stock grants and option exercises | |||
Other assets | 0 | 2,404 | 1,727 |
Additional paid-in capital | 0 | (2,404) | (1,727) |
Acquisitions of real estate assets | |||
Real Estate Assets | 627,462 | 1,149,936 | |
Notes payable assumed | (24,055) | (9,723) | |
Investment in unconsolidated real estate ventures | (12,957) | 0 | 0 |
Accrued construction costs and capital expenditures | |||
Acquisition of real estate assets | 3,509 | 8,497 | 2,332 |
Development and redevelopment of real estate assets | 1,703 | 125 | 0 |
Accounts payable and accrued expenses | (5,212) | (8,622) | (2,332) |
Distribution of real estate from investments in unconsolidated real estate ventures | |||
Real estate assets, net | 0 | 25,055 | 0 |
Investments in unconsolidated real estate ventures | 0 | (25,055) | 0 |
Disposition of real estate assets | |||
Real estate assets, net | 0 | (7,689) | 0 |
Issuance of Preferred OP Units for additional investment in unconsolidated real estate venture | |||
Preferred OP Units issued | (4,351) | 0 | 0 |
Investment in unconsolidated real estate ventures | 4,351 | 0 | 0 |
Acquisitions of real estate assets | |||
Acquisitions of real estate assets | |||
Real Estate Assets | 51,455 | 84,163 | 158,009 |
Value of Operating Partnership units issued | (14,428) | (74,440) | (142,399) |
Notes payable assumed | (24,055) | (9,723) | 0 |
Receivables from related parties and affiliated real estate joint ventures | 0 | 0 | (15,610) |
Other noncontrolling interests | (15) | 0 | 0 |
Operating Partnership units redeemed | |||
Disposition of real estate assets | |||
Operating Partnership units redeemed | 0 | 7,689 | 0 |
Acquisition of noncontrolling interests | |||
Acquisition of noncontrolling interests | |||
Operating Partnership units issued | 0 | (800) | 0 |
Other noncontrolling interests | 0 | 162 | 0 |
Additional paid-in capital | $ 0 | $ 638 | $ 0 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Extra Space Storage Inc. (the “Company”) is a fully integrated, self-administered and self-managed real estate investment trust (“REIT”), formed as a Maryland corporation on April 30, 2004, to own, operate, manage, acquire, develop and redevelop professionally managed self-storage properties located throughout the United States. The Company was formed to continue the business of Extra Space Storage LLC and its subsidiaries, which had engaged in the self-storage business since 1977. The Company’s interest in its stores is held through its operating partnership, Extra Space Storage LP (the “Operating Partnership”), which was formed on May 5, 2004. The Company’s primary assets are general partner and limited partner interests in the Operating Partnership. This structure is commonly referred to as an umbrella partnership REIT, or UPREIT. The Company invests in stores by acquiring wholly-owned stores or by acquiring an equity interest in real estate entities. At December 31, 2017 , the Company had direct and indirect equity interests in 1,061 storage facilities. In addition, the Company managed 422 stores for third parties bringing the total number of stores which it owns and/or manages to 1,483 . These stores are located in 39 states, Washington, D.C. and Puerto Rico. The Company also offers tenant reinsurance at its owned and managed stores that insures the value of goods in the storage units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly- or majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In our Segment Information in Note 18, the number of segments has changed from three to two . The prior years' segment information has been reclassified to conform to the current year's presentation. Variable Interest Entities The Company accounts for arrangements that are not controlled through voting or similar rights as variable interest entities (“VIEs”). An enterprise is required to consolidate a VIE if it is the primary beneficiary of the VIE. A VIE is created when (i) the equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) the entity’s equity holders as a group either: (a) lack the power, through voting or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance, (b) are not obligated to absorb expected losses of the entity if they occur, or (c) do not have the right to receive expected residual returns of the entity if they occur. If an entity is deemed to be a VIE, the enterprise that is deemed to have a variable interest, or combination of variable interests, that provides the enterprise with a controlling financial interest in the VIE, is considered the primary beneficiary and must consolidate the VIE. The Company has concluded that under certain circumstances when the Company enters into arrangements for the formation of joint ventures, a VIE may be created under condition (i), (ii) (b) or (c) of the previous paragraph. For each VIE created, the Company has performed a qualitative analysis, including considering which party, if any, has the power to direct the activities most significant to the economic performance of each VIE and whether that party has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If the Company is determined to be the primary beneficiary of the VIE, the assets, liabilities and operations of the VIE are consolidated with the Company’s financial statements. Additionally, the Operating Partnership has notes payable to three trusts that are VIEs under condition (ii)(a) above. Since the Operating Partnership is not the primary beneficiary of the trusts, these VIEs are not consolidated. The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control, and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting on the accompanying consolidated financial statements. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value Disclosures Derivative financial instruments Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. In conjunction with the Financial Accounting Standard Board’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets - Cash Flow Hedge Swap Agreements $ 38,365 $ — $ 38,365 $ — Other liabilities - Cash Flow Hedge Swap Agreements $ 9 $ — $ 9 $ — There were no transfers of assets and liabilities between Level 1 and Level 2 during the year ended December 31, 2017 . The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of December 31, 2017 or 2016 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount. For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company reviews stores in the lease-up stage and compares actual operating results to original projections. When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets. When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. The Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets (categorized within Level 3 of the fair value hierarchy). If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize a loss on the assets held for sale. The operations of assets held for sale or sold during the period are presented as part of normal operations for all periods presented. The Company assesses annually whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be impaired and when events or circumstances indicate that there may be impairment. An investment is impaired if management’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount of the investment over the fair value of the investment. As of December 31, 2017 and 2016 , the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable-rate notes payable, revolving lines of credit and other liabilities reflected in the consolidated balance sheets at December 31, 2017 and 2016 , approximate fair value. The fair values of the Company’s notes receivable from Preferred Operating Partnership unit holders and other fixed rate notes receivable were based on the discounted estimated future cash flow of the notes (categorized within Level 3 of the fair value hierarchy); the discount rate used approximated the current market rate for loans with similar maturities and credit quality. The fair values of the Company’s fixed rate notes payable and notes payable to trusts were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality. The fair value of the Company’s exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party. The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: December 31, 2017 December 31, 2016 Fair Carrying Fair Carrying Notes receivable from Preferred Operating Partnership unit holders $ 113,683 $ 120,230 $ 125,642 $ 120,230 Fixed rate notes receivable $ 20,942 $ 20,608 $ 53,450 $ 52,201 Fixed rate notes payable and notes payable to trusts $ 2,774,242 $ 2,815,085 $ 2,404,996 $ 2,417,558 Exchangeable senior notes $ 719,056 $ 624,259 $ 706,827 $ 638,170 Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Interest, property taxes, and other costs associated with development incurred during the construction period are capitalized. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. Expenditures for maintenance and repairs 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 five and 39 years. Stores purchased at the time of certificate of occupancy issuance and stores purchased subsequent to the Company's adoption of ASU 2017-01 on January 1, 2017 are considered asset acquisitions. As such, the purchase price is allocated to the real estate assets acquired based on their relative fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their relative fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its stores. Any debt assumed as part of the acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transactions costs are capitalized as part of the purchase price. Intangible lease rights represent: (1) purchase price amounts allocated to leases on three stores that cannot be classified as ground or building leases; these rights are amortized to expense over the life of the leases and (2) intangibles related to ground leases on eight stores where the leases were assumed by the Company at rates that were lower than the current market rates for similar leases. The values associated with these assumed leases were recorded as intangibles, which will be amortized over the lease terms. Real Estate Sales In general, sales of real estate and related profits/losses are recognized when all consideration has changed hands and risks and rewards of ownership have been transferred. Certain types of continuing involvement preclude sale treatment and related profit recognition; other forms of continuing involvement allow for sale recognition but require deferral of profit recognition. Investments in Unconsolidated Real Estate Ventures The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, the Company’s investment in real estate ventures is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated real estate ventures. For the purposes of presentation in the statement of cash flows, the Company follows the “look through” approach for classification of distributions from joint ventures. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the joint venture’s sale of assets), in which case it is reported as an investing activity. Cash and Cash Equivalents The Company’s cash is deposited with financial institutions located throughout the United States and at times may exceed federally insured limits. The Company considers all highly liquid debt instruments with a maturity date of three months or less to be cash equivalents. Restricted Cash Restricted cash is comprised of letters of credit and escrowed funds deposited with financial institutions located throughout the United States relating to earnest money deposits on potential acquisitions, real estate taxes, insurance and capital expenditures. Other Assets Other assets consist of equipment and fixtures, rents receivable from our tenants, investments in trusts, notes and other receivables, other intangible assets, deferred tax assets, prepaid expenses and the fair value of interest rate swaps. Depreciation of equipment and fixtures is computed on a straight-line basis over three to five years. Derivative Instruments and Hedging Activities The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Risk Management and Use of Financial Instruments In the normal course of its ongoing business operations, the Company encounters economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk on its interest-bearing liabilities. Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments. Market risk is the risk of declines in the value of stores due to changes in rental rates, interest rates or other market factors affecting the value of stores held by the Company. The Company has entered into interest rate swap agreements to manage a portion of its interest rate risk. Exchange of Common Operating Partnership Units Redemption of common Operating Partnership units for shares of common stock, when redeemed under the original provisions of the Operating Partnership agreement, are accounted for by reclassifying the underlying net book value of the units from noncontrolling interest to the Company’s equity. Revenue and Expense Recognition Rental revenues are recognized as earned based upon amounts that are currently due from tenants. Leases are generally on month-to-month terms. Prepaid rents are recognized on a straight-line basis over the term of the leases. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees, merchandise sales and truck rentals are recognized as income when earned. Management fee revenues are recognized monthly as services are performed and in accordance with the terms of the related management agreements. Equity in earnings of unconsolidated real estate entities is recognized based on the Company's ownership interest in the earnings of each of the unconsolidated real estate entities. Interest income is recognized as earned. Property expenses, including utilities, property taxes, repairs and maintenance and other costs to manage the facilities are recognized as incurred. The Company accrues for property tax expense based upon invoice amounts, estimates and historical trends. If these estimates are incorrect, the timing of expense recognition could be affected. Tenant reinsurance premiums are recognized as revenue over the period of insurance coverage. The Company records an unpaid claims liability at the end of each period based on existing unpaid claims and historical claims payment history. The unpaid claims liability represents an estimate of the ultimate cost to settle all unpaid claims as of each period end, including both reported but unpaid claims and claims that may have been incurred but have not been reported. The Company uses a third party claims administrator to adjust all tenant reinsurance claims received. The administrator evaluates each claim to determine the ultimate claim loss and includes an estimate for claims that may have been incurred but not reported. Annually, a third party actuary evaluates the adequacy of the unpaid claims liability. Prior year claim reserves are adjusted as experience develops or new information becomes known. The impact of such adjustments is included in the current period operations. The unpaid claims liability is not discounted to its present value. Each tenant chooses the amount of insurance coverage they want through the tenant reinsurance program. Tenants can purchase policies in amounts of 2,000 dollars to 10,000 dollars of insurance coverage in exchange for a monthly fee. As of December 31, 2017 , the average insurance coverage for tenants was approximately 2,800 dollars. The Company’s exposure per claim is limited by the maximum amount of coverage chosen by each tenant. The Company purchases reinsurance for losses exceeding a set amount for any one event. The Company does not currently have any amounts recoverable under the reinsurance arrangements. For the years ended December 31, 2017 , 2016 and 2015 , the number of claims made were 5,671 , 4,055 and 3,959 , respectively. The following table presents information on the portion of the Company’s unpaid claims liability, which is included in other liabilities on the Company's consolidated balance sheets, that relates to tenant insurance for the periods indicated: For the Year Ended December 31, Tenant Reinsurance Claims: 2017 2016 2015 Unpaid claims liability at beginning of year $ 3,896 $ 3,908 $ 3,121 Claims and claim adjustment expense for claims incurred in the current year 11,700 7,250 6,421 Claims and claim adjustment expense (benefit) for claims incurred in the prior years (203 ) 87 — Payments for current year claims (8,895 ) (5,423 ) (4,283 ) Payments for prior year claims (1,331 ) (1,926 ) (1,351 ) Unpaid claims liability at the end of the year $ 5,167 $ 3,896 $ 3,908 Advertising Costs The Company incurs advertising costs primarily attributable to internet, directory and other advertising. These costs are expensed as incurred. The Company recognized $14,410 , $12,867 and $10,528 in advertising expense for the years ended December 31, 2017 , 2016 and 2015 , respectively, which are included in property operating expenses on the Company’s consolidated statements of operations. Income Taxes The Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended ("the Internal Revenue Code"). 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. For any taxable year that the Company fails to qualify as a REIT and for which applicable statutory relief provisions did not apply, we would be taxed at the regular corporate rates on all of our taxable income for at least that year and the ensuing four years. The Company is subject to certain state and local taxes. Provision for such taxes has been included in income tax expense on the Company’s consolidated statements of operations. For the year ended December 31, 2017 , 0% (unaudited) of all distributions to stockholders qualified as a return of capital. The Company has elected to treat its corporate subsidiary, Extra Space Management, Inc. (“ESMI”), 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. ESM Reinsurance Limited, a wholly-owned subsidiary of ESMI, generates income from insurance premiums that are subject to federal corporate income tax and state insurance premiums tax. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. At December 31, 2017 and 2016 , there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of December 31, 2017 and 2016 , the Company had no interest or penalties related to uncertain tax provisions. Stock-Based Compensation The measurement and recognition of compensation expense for all share-based payment awards to employees and directors 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. Earnings Per Common Share Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using either the two-class, treasury stock or as if-converted method, whichever is most dilutive. Potential common shares are securities (such as options, convertible debt, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series C Convertible Redeemable Preferred Units (“Series C Units”), Series D Redeemable Preferred Units (“Series D Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right. In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (those that reduce earnings per common share) are included. For the years ended December 31, 2017 , 2016 and 2015 , options to purchase approximately 45,286 , 88,552 , and 62,254 shares of common stock, respectively, were excluded from the computation of earnings per share as their effect would have been anti-dilutive. For the purposes of computing the diluted impact of the potential exchange of the Preferred Operating Partnership Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, The Company divided the total value of the Preferred Operating Partnership units by the average share price of $78.59 for the year ended December 31, 2017 . The following table presents the number of weighted OP Units and Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive: For the Year Ended December 31, 2017 2016 2015 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Common OP Units — 5,564,631 — Series A Units (Variable Only) — 875,480 — Series B Units 533,174 499,966 579,640 Series C Units 377,135 353,646 410,002 Series D Units — 552,796 189,649 910,309 7,846,519 1,179,291 The Operating Partnership had $49,259 of its 2.375% Exchangeable Senior Notes due 2033 (the “2013 Notes”) issued and outstanding as of December 31, 2017 . The 2013 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2013 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2013 Notes. The exchange price of the 2013 Notes was $53.05 per share as of December 31, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2013 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. The Operating Partnership had $575,000 of its 3.125% Exchangeable Senior Notes due 2035 (the “2015 Notes”) issued and outstanding as of December 31, 2017 . The 2015 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2015 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2015 Notes. The exchange price of the 2015 Notes was $93.80 per share as of December 31, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2015 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. Though the Company has retained that right, Accounting Standards Codification (“ASC”) 260, “Earnings per Share,” requires an assumption that shares would be used to pay the exchange obligation in excess of the accreted principal amount, and requires that those shares be included in the Company’s calculation of weighted average common shares outstanding for the diluted earnings per share computation. For the years ended December 31, 2017 , 2016 and 2015 , 344,430 shares, 309,730 shares and 513,040 shares, respectively, related to the 2013 Notes were included in the computation for diluted earnings per share. For the years ended December 31, 2017 , 2016 and 2015 , no shares related to the 2015 Notes were included in the computation for diluted earnings per share as the exchange price exceeded the per share price of the Company’s common stock during this period. For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series A Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the positive intent and ability to settle at least $101,700 of the instrument in cash (or net settle a portion of the Series A Units against the related outstanding note receivable), only the amount of the instrument in excess of $101,700 is considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46. The computation of earnings per share is as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 Net income attributable to common stockholders $ 479,013 $ 366,127 $ 189,474 Earnings and dividends allocated to participating securities (975 ) (792 ) (601 ) Earnings for basic computati |
Real Estate Assets
Real Estate Assets | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Assets | REAL ESTATE ASSETS The components of real estate assets are summarized as follows: December 31, 2017 December 31, 2016 Land - operating $ 1,731,915 $ 1,664,659 Land - development 13,246 26,982 Buildings, improvements and other intangibles 6,286,762 5,833,836 Intangible assets - tenant relationships 114,375 111,528 Intangible lease rights 12,443 12,443 8,158,741 7,649,448 Less: accumulated depreciation and amortization (1,060,060 ) (900,861 ) Net operating real estate assets 7,098,681 6,748,587 Real estate under development/redevelopment 33,750 21,860 Net real estate assets $ 7,132,431 $ 6,770,447 Real estate assets held for sale included in net real estate assets $ 10,276 $ 1,970 As of December 31, 2017 , the Company had one operating store and one parcel of undeveloped land classified as held for sale. The estimated fair value less selling costs of these assets are greater than the carrying value of the assets, and therefore no loss has been recorded related to the operating store held for sale. These assets held for sale are included in the self-storage operations segment of the Company’s segment information. The parcel of undeveloped land was sold in January 2018 and the Company anticipates the operating store will be sold by the end of 2018. During the second quarter of 2017, the Company recorded an impairment loss of $6,100 relating to several parcels of undeveloped land where the carrying value was greater than the fair value. The Company amortizes to expense intangible assets—tenant relationships on a straight-line basis over the average period that a tenant is expected to utilize the facility (currently estimated at 18 months ). The Company amortizes to expense the intangible lease rights over the terms of the related leases. Amortization related to the tenant relationships and lease rights was $14,349 , $21,133 , and $11,695 for the years ended December 31, 2017 , 2016 and 2015 , respectively. The remaining balance of the unamortized lease rights will be amortized over the next one year to 44 years . Accumulated amortization related to intangibles was $112,347 and $101,120 as of December 31, 2017 and 2016 , respectively. |
Property Acquisitions and Dispo
Property Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Property Acquisitions and Dispositions | PROPERTY ACQUISITIONS AND DISPOSITIONS The following table shows the Company’s acquisitions of stores for the years ended December 31, 2017 and 2016 . The table excludes purchases of raw land or improvements made to existing assets. Consideration Paid Total Quarter Number of Stores Total Cash Paid Loan Assumed Non- controlling Interests Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of OP Units Issued Number of OP Units Issued Real Estate Assets Q4 2017 37 (1) $ 535,299 $ 502,845 $ 14,592 $ (1,812 ) $ 12,957 $ 1,099 $ 5,618 64,708 $ 535,299 Q3 2017 4 31,966 29,919 — — — 47 2,000 25,520 31,966 Q2 2017 3 34,641 16,608 9,463 1,827 — (67 ) 6,810 272,400 34,641 Q1 2017 2 25,556 25,541 — — — 15 — — 25,556 46 $ 627,462 $ 574,913 $ 24,055 $ 15 $ 12,957 $ 1,094 $ 14,428 362,628 $ 627,462 Q4 2016 27 (2) $ 320,564 $ 297,569 $ — $ — $ — $ 4,997 $ 17,998 563,819 $ 328,683 Q3 2016 27 (3) 296,280 296,345 — — — (65 ) — — 307,268 Q2 2016 22 244,264 176,689 9,723 — — 1,615 56,237 2,215,231 244,264 Q1 2016 23 (4) 225,537 225,156 — — — 381 — — 269,721 99 $ 1,086,645 $ 995,759 $ 9,723 $ — $ — $ 6,928 $ 74,235 2,779,050 $ 1,149,936 (1) Store acquisitions during the three months ended December 31, 2017 include the acquisition of seven stores that had been owned by joint ventures in which the Company held an equity interest. No gain or loss was recognized as a result of these acquisitions as the Company accounted for them as asset acquisitions subsequent to the adoption of ASU 2017-01, rather than as business combinations achieved in stages (step acquisitions). (2) On November 17, 2016, the Company acquired 11 stores from its ESS WCOT LLC joint venture ("WCOT") in a step acquisition. The Company owns 5.0% of WCOT, with the other 95.0% owned by affiliates of Prudential Global Investment Management ("Prudential"). WCOT created a new subsidiary, Extra Space Properties 132 LLC ("ESP 132") and transferred 11 stores into ESP 132. WCOT then distributed ESP 132 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $68,814 . Immediately after the distribution, the Company acquired Prudential's 95.0% interest in ESP 132 for $153,304 , resulting in 100% ownership of ESP 132 and the related 11 stores. Based on the purchase price of Prudential's share of ESP 132, the Company determined that the fair value of its investment in ESP 132 immediately prior to the acquisition of Prudential's share was $8,119 , and the Company recorded a gain of $4,651 as a result of remeasuring to fair value its existing equity interest in ESP 132. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations. The fair value of the stores purchased was recorded at $161,072 . (3) On September 16, 2016, the Company acquired 23 stores from its ESS PRISA II LLC joint venture ("PRISA II") in a step acquisition. The Company owned 4.4% of PRISA II, with the other 95.6% owned by affiliates of Prudential. PRISA II created a new subsidiary, Extra Space Properties 131 LLC ("ESP 131"), and transferred 23 stores into ESP 131. PRISA II then distributed ESP 131 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $4,326 . Immediately after the distribution, the Company acquired Prudential's 95.6% interest in ESP 131 for $238,679 , resulting in 100% ownership of ESP 131 and the related 23 stores. Based on the purchase price of Prudential's share of ESP 131, the Company determined that the fair value of its investment in ESP 131 immediately prior to the acquisition of Prudential's share was $10,988 , and the Company recorded a gain of $6,778 as a result of re-measuring to fair value its existing equity interest in ESP 131. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations. The fair value of the stores purchased was recorded at $248,530 . Subsequent to these transactions, PRISA II owned 42 stores. The Company sold its 4.4% interest in PRISA II to Prudential immediately following these transactions, as disclosed in Note 5. (4) On February 2, 2016, the Company acquired six stores from its VRS Self Storage LLC joint venture (“VRS”) in a step acquisition. The Company owns 45.0% of VRS, with the other 55.0% owned by affiliates of Prudential. VRS created a new subsidiary, Extra Space Properties 122 LLC (“ESP 122”) and transferred six stores into ESP 122. VRS then distributed ESP 122 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $17,261 . Immediately after the distribution, the Company acquired Prudential’s 55.0% interest in ESP 122 for $53,940 , resulting in 100% ownership of ESP 122 and the related six stores. Based on the purchase price of Prudential’s share of ESP 122, the Company determined that the fair value of its investment in ESP 122 immediately prior to the acquisition of Prudential’s share was $44,184 , and the Company recorded a gain of $26,923 as a result of re-measuring to fair value its existing equity interest in ESP 122. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners’ interests on the Company’s consolidated statements of operations. The fair value of the stores purchased was recorded at $98,082 . Store Disposals On November 30, 2017, the Company sold 36 stores located in various states that had been classified as held for sale for an aggregate sales price of $295,000 . The buyer of these properties was Storage Portfolio II JV, LLC ("SP II"), a newly formed joint venture in which the Company has a 10.0% equity interest. The Company recognized a gain of $118,776 related to this disposition, which represented 90.0% of the total gain. This amount is included in gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate on the Company's consolidated statements of operations. The Company deferred 10.0% of the gain due to the fact that it held an equity interest in the buyer, which resulted in a reduction in the carrying value of the Company's investment in SP II. On September 13, 2017, the Company closed on the sale of a parcel of land located in New York that had been classified as held for sale for $ 19,000 in cash. This parcel of land had been written down to its fair value less selling costs during the six months ended June 30, 2017, and a loss of $3,500 was recorded. Therefore, no additional gain or loss was recorded related to this sale at the time of closing. On July 26, 2016, the Company completed the sale of an operating store located in Indiana that had been classified as held for sale for $4,447 in cash. The Company recognized no gain or loss related to this disposition. On April 20, 2016, the Company completed the sale of seven operating stores located in Ohio and Indiana that had been classified as held for sale for $17,555 in cash. The Company recognized a gain of $11,265 related to this disposition, which is included in gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate on the Company's consolidated statements of operations. On April 1, 2016, the Company disposed of a single store in Texas in exchange for 85,452 of the Company's OP Units valued at $7,689 . The Operating Partnership canceled the OP Units received in this disposition. The Company recognized a gain of $93 related to this disposition, which is included in gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate on the Company's consolidated statements of operations. Losses on Earnouts from Prior Acquisitions On December 2014, the Company acquired a portfolio of five stores located in New Jersey and Virginia. As part of this acquisition, the Company agreed to make an additional cash payment to the sellers if the acquired stores exceeded a specified amount of net operating income for the years ending December 31, 2015 and 2016. At the acquisition date, the Company recorded an estimated liability related to this earnout provision. The operating income of these stores during the earnout period was higher than expected, resulting in an increase in the estimate of the amount due to the sellers of $4,284 , which was recorded as a loss and included in gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate on the Company's consolidated statements of operations for the year ended December 31, 2016. During 2011, the Company acquired a store located in Florida. As part of this acquisition, the Company agreed to make an additional cash payment to the sellers if the acquired store exceeded a specified amount of net rental income for any twelve-month period prior to June 30, 2015. At the acquisition date, $133 was recorded as the estimated amount that would be due, and the Company believed that it was unlikely that any significant additional payment would be made as a result of this earnout provision. Because the rental growth of the stores was trending significantly higher than expected, the Company estimated that an additional earnout payment of $2,500 was due to the seller as of December 31, 2014. This amount is included in gain (loss) on real estate transactions, earnout from prior acquisitions and sale of other assets on the Company’s consolidated statements of operations for the year ended December 31, 2014. During the year ended December 31, 2015, the Company recorded a gain of $400 to adjust the existing liability to the actual amount owed to the sellers as of June 30, 2015. This gain is included in gain (loss) on real estate transactions, earnout from prior acquisitions and impairment of real estate on the Company’s consolidated statements of operations for the year ended December 31, 2015. |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Ventures | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Real Estate Ventures | INVESTMENTS IN UNCONSOLIDATED REAL ESTATE VENTURES Investments in unconsolidated real estate ventures consist of the following: Number of Properties Equity Excess Profit December 31, 2017 2016 VRS Self Storage, LLC ("VRS") 16 45% 54% $ 19,467 $ 20,433 Storage Portfolio I LLC ("SP I") 24 25% 40% 11,495 11,782 Storage Portfolio II JV LLC ("SP II'") 36 10% 30% (3,140 ) — PRISA Self Storage LLC ("PRISA") 85 4% 4% 9,638 10,152 Extra Space West Two LLC ("ESW II") 5 5% 40% 3,939 4,048 WCOT Self Storage LLC ("WCOT") 16 5% 20% (357 ) 160 Extra Space West One LLC ("ESW") 7 5% 40% (900 ) (546 ) Extra Space Northern Properties Six LLC ("ESNPS") 10 10% 35% (1,279 ) (905 ) Other minority owned stores 15 10-50% 19-50% 31,228 34,446 214 $ 70,091 $ 79,570 In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash/profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash/profits than its equity interest. In accordance with ASC 810, the Company reviews all of its joint venture relationships annually to ensure that there are no entities that require consolidation. As of December 31, 2017 , there were no previously unconsolidated entities that were required to be consolidated as a result of this review. The Company has entered into several new unconsolidated real estate ventures. The Company accounts for its investment in the following ventures under the equity method of accounting. Information about these real estate ventures is summarized as follows: Number of new unconsolidated joint ventures Number of Stores Equity ownership % Total initial investment Year ended December 31, 2017 4 39 10.0% - 25.0% $ 13,341 Year ended December 31, 2016 8 8 20.0% - 50.0% $ 26,387 Year ended December 31, 2015 1 1 50% $ 2,885 On September 16, 2016, subsequent to its acquisition of 23 properties as outlined in Note 4, the Company sold its 4.42% interest in PRISA II to Prudential for $34,758 in cash. The carrying value of the Company's investment prior to the acquisition was $3,912 , and the Company recorded a gain on the sale of $30,846 . This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations. On April 25, 2016, the Company and Prudential entered into the “Second Amendment to Amended and Restated Operating Agreement of ESS PRISA LLC” and the “First Amendment to Amended and Restated Operating Agreement of ESS PRISA II LLC” (the “Amendments”). The Amendments are deemed effective as of April 1, 2016. Under the Amendments, the Company gave up any future rights to receive distributions from these joint ventures at the higher “excess profit participation” percentage of 17.0% in exchange for a higher equity ownership percentage. The Company’s equity ownership in ESS PRISA LLC increased from 2.0% to 4.0% , and the Company’s equity ownership in ESS PRISA II LLC increased from 2.0% to 4.4% . The Company continues to account for its investment in PRISA under the equity method of accounting. The Company subsequently sold its interest in PRISA II as noted above. Equity in earnings of unconsolidated real estate ventures consists of the following: For the Year Ended December 31, 2017 2016 2015 Equity in earnings of VRS $ 3,562 $ 2,919 $ 4,041 Equity in earnings of SP I 2,684 2,380 1,951 Equity in earnings of SP II 33 — — Equity in earnings of PRISA 2,430 1,912 1,013 Equity in earnings of ESW II 1,210 174 145 Equity in earnings of WCOT 1,033 614 569 Equity in earnings of ESW 2,502 2,269 1,875 Equity in earnings of ESNPS 918 823 633 Equity in earnings of other minority owned stores 959 1,804 2,124 $ 15,331 $ 12,895 $ 12,351 Equity in earnings of ESW II, SP I and VRS and other minority owned stores includes the amortization of the Company’s excess purchase price of $27,691 of these equity investments over its original basis. The excess basis is amortized over 40 years. |
Notes Payable and Revolving Lin
Notes Payable and Revolving Lines of Credit | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Notes Payable and Revolving Lines of Credit | NOTES PAYABLE AND REVOLVING LINES OF CREDIT The components of notes payable are summarized as follows: Notes Payable December 31, 2017 December 31, 2016 Fixed Rate Variable Rate Basis Rate (2) Maturity Dates Secured fixed rate notes payable (1) $ 2,095,495 $ 2,297,968 2.6% - 6.1% September 2018 - February 2030 Secured variable rate notes payable (1) 717,979 642,970 3.0% - 3.4% LIBOR plus 1.4% - 1.8% September 2018 - December 2024 Unsecured fixed rate notes payable 600,000 — 3.1% - 4.0% October 2021 - August 2027 Unsecured variable rate notes payable 350,000 300,000 2.8% - 3.2% LIBOR plus 1.3% - 1.7% October 2021 - October 2023 Total 3,763,474 3,240,938 Less: unamortized debt issuance costs (24,977 ) (27,350 ) Total $ 3,738,497 $ 3,213,588 (1) The loans are collateralized by mortgages on real estate assets and the assignment of rents. (2) 30-day USD LIBOR On October 14, 2016, the Company entered into a credit agreement (the “Credit Agreement”) which provides for aggregate borrowings of up to $1.15 billion , consisting of a senior unsecured four-year revolving credit facility of $500 million (the “Revolving Credit Facility”), a senior unsecured five-year term loan of $430 million (the “Five-Year Term Loan Facility”) and a senior unsecured seven-year term loan of $220 million (the “Seven-Year Term Loan Facility” and, together with the Revolving Credit Facility and the Five-Year Term Loan Facility, the “Credit Facility”). The Company may request an increase in the amount of the commitments under the Credit Facility up to an aggregate of $1.5 billion , and extend the term of the Revolving Credit Facility for up to two additional periods of six months each, after satisfying certain conditions. Amounts outstanding under the Credit Facility bear interest at floating rates, at the Company’s option, equal to either (i) LIBOR plus the applicable Eurodollar rate margin or (ii) the applicable base rate which is the applicable margin plus the highest of (a) 0.0% , (b) the federal funds rate plus 0.50% , (c) U.S. Bank’s prime rate or (d) the Eurodollar rate plus 1.00% . The applicable Eurodollar rate margin will range from 1.35% to 2.50% per annum and the applicable base rate margin will range from 0.35% to 1.50% per annum, in each case depending on the Company’s Consolidated Leverage Ratio, as defined in the Credit Agreement, and the type of loan. If the Operating Partnership obtains a specified investment grade rating from two or more specified credit rating agencies, and elects to use the alternative rates based on the Company’s debt rating, the applicable Eurodollar rate margin will range from 0.85% to 2.45% per annum and the applicable base rate margin will range from 0.00% to 1.45% per annum, in each case depending on the rating achieved and the type of loan. The Credit Agreement is guaranteed by the Company and is not secured by any assets of the Company. We are subject to certain restrictive covenants relating to our outstanding debt. As of December 31, 2017 , the Company was in compliance with all of its financial covenants. The following table summarizes the scheduled maturities of notes payable at December 31, 2017 : 2018 $ 210,085 2019 456,117 2020 930,308 2021 658,146 2022 493,493 Thereafter 1,015,325 $ 3,763,474 Real estate assets are pledged as collateral for the secured loans. Of the Company’s $3,763,474 principal amount of notes payable outstanding at December 31, 2017 , $2,545,278 was recourse due to guarantees or other security provisions. All of the Company’s lines of credit are guaranteed by the Company. The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated: As of December 31, 2017 Revolving Lines of Credit Amount Drawn Capacity Interest Rate Origination Date Maturity Basis Rate (1) Credit Line 1 (2) $ 19,000 $ 100,000 3.2% 6/4/2010 6/30/2018 LIBOR plus 1.7% Credit Line 2 (3)(4) 75,000 500,000 3.0% 10/14/2016 10/14/2020 LIBOR plus 1.4% $ 94,000 $ 600,000 (1) 30-day USD LIBOR (2) Secured by mortgages on certain real estate assets. One two-year extension available. (3) Unsecured. Two six-month extensions available. (4) Basis Rate as of December 31, 2017. Rate is subject to change based on our consolidated leverage ratio. EXCHANGEABLE SENIOR NOTES In September 2015, the Operating Partnership issued $575,000 of its 3.125% Exchangeable Senior Notes due 2035. Costs incurred to issue the 2015 Notes were approximately $11,992 , consisting primarily of a 2.0% underwriting fee. These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in other assets in the consolidated balance sheets. The 2015 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on April 1 and October 1 of each year beginning April 1, 2016, until the maturity date of October 1, 2035. The Notes bear interest at 3.125% per annum and contain an exchange settlement feature, which provides that the 2015 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2015 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2015 Notes as of December 31, 2017 was approximately 10.66 shares of the Company’s common stock per $1,000 principal amount of the 2015 Notes. The Operating Partnership may redeem the 2015 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after October 5, 2020, the Operating Partnership may redeem the 2015 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2015 Notes. The holders of the 2015 Notes have the right to require the Operating Partnership to repurchase the 2015 Notes for cash, in whole or in part, on October 1 of the years 2020, 2025 and 2030, (unless the Operating Partnership has called the 2015 Notes for redemption), and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2015 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2015 Notes, which may result in the accelerated maturity of the 2015 Notes. On June 21, 2013, the Operating Partnership issued $250,000 of its 2.375% Exchangeable Senior Notes due 2033 at a 1.5% discount, or $3,750 . Costs incurred to issue the 2013 Notes were approximately $1,672 . These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in other assets in the consolidated balance sheets. The 2013 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2014, until the maturity date of July 1, 2033. The 2013 Notes bear interest at 2.375% per annum and contain an exchange settlement feature, which provides that the 2013 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2013 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2013 Notes as of December 31, 2017 was approximately 18.85 shares of the Company’s common stock per $1,000 principal amount of the 2013 Notes. Additionally, the 2013 Notes and the 2015 Notes can be exchanged during any calendar quarter, if the last reported sale price of the common stock of the Company is greater than or equal to 130% of the exchange price for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter. The price of the Company’s common stock exceeded 130% of the exchange price for the required time period for the 2013 Notes during the quarter ended December 31, 2017 . Therefore, holders of the 2013 Notes may elect to exchange such notes during the quarter ending March 31, 2018. The price of the Company’s common stock did not exceed 130% of the exchange price for the required time period for the 2015 Notes during the quarter ended December 31, 2017 . The Operating Partnership may redeem the 2013 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after July 5, 2018, the Operating Partnership may redeem the 2013 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2013 Notes. The holders of the 2013 Notes have the right to require the Operating Partnership to repurchase the 2013 Notes for cash, in whole or in part, on July 1 of the years 2018, 2023 and 2028, and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2013 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2013 Notes, which may result in the accelerated maturity of the 2013 Notes. GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date, July 1, 2018 for the 2013 Notes and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0% , which approximates the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance. Information about the carrying amount of the equity component, the principal amount of the liability component, its unamortized discount and its net carrying amount were as follows for the periods indicated: December 31, 2017 December 31, 2016 Carrying amount of equity component - 2013 Notes $ — $ — Carrying amount of equity component - 2015 Notes 22,597 22,597 Carrying amount of equity components $ 22,597 $ 22,597 Principal amount of liability component - 2013 Notes $ 49,259 $ 63,170 Principal amount of liability component - 2015 Notes 575,000 575,000 Unamortized discount - equity component - 2013 Notes (315 ) (1,187 ) Unamortized discount - equity component - 2015 Notes (12,974 ) (17,355 ) Unamortized cash discount - 2013 Notes (74 ) (281 ) Unamortized debt issuance costs (6,620 ) (9,033 ) Net carrying amount of liability components $ 604,276 $ 610,314 The amount of interest cost recognized relating to the contractual interest rate and the amortization of the discount on the liability component for the 2013 Notes and 2015 Notes was as follows for the periods indicated: For the Year Ended December 31, 2017 2016 2015 Contractual interest $ 19,303 $ 19,483 $ 9,939 Amortization of discount 5,103 4,980 3,310 Total interest expense recognized $ 24,406 $ 24,463 $ 13,249 Repurchase of 2013 Notes During July, August and October 2017, the Company repurchased a total principal amount of $13,911 of the 2013 Notes. The Company paid cash of $20,042 for the total of the principal amount and the exchange value in excess of the principal amount. During April 2016, the Company repurchased a total principal amount of $2,555 of the 2013 Notes. The Company paid cash for the principal amount and issued a total of 18,031 shares of common stock valued at $1,686 for the exchange value in excess of the principal amount. During February 2016, the Company repurchased a total principal amount of $19,639 of the 2013 Notes. The Company paid cash for the principal amount, and issued a total of 130,909 shares of common stock valued at $11,380 for the exchange value in excess of the principal amount. As part of the 2015 Notes offering, the Company repurchased $164,636 of the 2013 Notes for $227,212 on September 15, 2015. The Company allocated the value of the consideration paid to repurchase the 2013 Notes (1) to the extinguishment of the liability component and (2) to the reacquisition of the equity component. The amount allocated to the extinguishment of the liability component is equal to the fair value of that component immediately prior to extinguishment. The difference between the consideration attributed to the extinguishment of the liability component and the sum of (a) the net carrying amount of the repurchased liability component, and (b) the related unamortized debt issuance costs, is recognized as a gain on debt extinguishment. The remaining settlement consideration is allocated to the reacquisition of the equity component of the repurchased 2013 Notes and recognized as a reduction of stockholders’ equity. Information about the repurchases is as follows: For the Year Ended December 31, 2017 2016 2015 Principal amount repurchased $ 13,911 $ 22,194 $ 164,636 Amount allocated to: Extinguishment of liability component $ 13,692 $ 21,363 $ 157,100 Reacquisition of equity component 6,350 13,898 70,112 Total consideration paid for repurchase $ 20,042 $ 35,261 $ 227,212 Exchangeable senior notes repurchased $ 13,911 $ 22,194 $ 164,636 Extinguishment of liability component (13,692 ) (21,363 ) (157,100 ) Discount on exchangeable senior notes (184 ) (788 ) (6,931 ) Related debt issuance costs (35 ) (43 ) (605 ) Gain/(loss) on repurchase $ — $ — $ — Subsequent to year end, the Company has repurchased a total principal amount of $37,704 of the 2013 Notes. The Company paid cash for these repurchases totaling $58,465 , which included the principal amount and the exchange value in excess of the principal amount. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources and duration of its debt funding and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash receipts and its known or expected cash payments principally related to the Company’s investments and borrowings. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income (“OCI”) and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. A portion of these changes is excluded from accumulated other comprehensive income as it is allocated to noncontrolling interests. During the years ended December 31, 2017 , 2016 and 2015 , such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. During 2018 , the Company estimates that $4,736 will be reclassified as a decrease to interest expense. The following table summarizes the terms of the Company’s 29 derivative financial instruments, which have a total combined notional amount of $2,154,799 as of December 31, 2017 : Hedge Product Range of Notional Amounts Strike Effective Dates Maturity Dates Swap Agreements $4,873 - $267,431 1.13% - 3.84% 10/3/2011 - 4/28/2017 9/20/2018 - 2/1/2024 Fair Values of Derivative Instruments The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets: Asset / Liability Derivatives December 31, 2017 December 31, 2016 Derivatives designated as hedging instruments: Fair Value Other assets $ 38,365 $ 23,844 Other liabilities $ 9 $ 2,447 Effect of Derivative Instruments The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the periods presented. No tax effect has been presented as the derivative instruments are held by the Company: Gain (loss) recognized in OCI For the Year Ended December 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Year Ended December 31, Type 2017 2016 2017 2016 2015 Swap Agreements $ 8,499 $ 6,388 Interest expense $ (8,853 ) $ (18,800 ) $ (12,487 ) Credit-Risk-Related Contingent Features The Company has agreements with some of its derivative counterparties that contain provisions pursuant to which, the Company could be declared in default of its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. The Company also has an agreement with some of its derivative counterparties that incorporates the loan covenant provisions of the Company’s indebtedness with a lender affiliate of the derivative counterparty. Failure to comply with the loan covenant provisions would result in the Company being in default on any derivative instrument obligations covered by the agreement. As of December 31, 2017 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was immaterial. As of December 31, 2017 , the Company had not posted any collateral related to these agreements. If the Company had breached any of these provisions as of December 31, 2017 , it could have been required to cash settle its obligations under these agreements at their termination value. |
Notes Payable to Trusts
Notes Payable to Trusts | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Notes Payable to Trusts | NOTES PAYABLE TO TRUSTS During July 2005, ESS Statutory Trust III (the “Trust III”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership, issued an aggregate of $40,000 of preferred securities which mature on July 31, 2035 . In addition, the Trust III issued 1,238 of Trust common securities to the Operating Partnership for a purchase price of $1,238 . On July 27, 2005, the proceeds from the sale of the preferred and common securities of $41,238 were loaned in the form of a note to the Operating Partnership (“Note 3”). Note 3 had a fixed rate of 6.91% through July 31, 2010, and then was payable at a variable rate equal to the three month LIBOR plus 2.4% per annum. Effective July 11, 2011, the Trust III entered into an interest rate swap that fixes the interest rate to be paid at 5.0% per annum and matures July 11, 2018 . The interest on Note 3, payable quarterly, will be used by the Trust III to pay dividends on the trust preferred securities. The trust preferred securities became redeemable by the Trust III with no prepayment premium on July 27, 2010 . During May 2005, ESS Statutory Trust II (the “Trust II”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership of the Company, issued an aggregate of $41,000 of preferred securities which mature on June 30, 2035 . In addition, the Trust II issued 1,269 of Trust common securities to the Operating Partnership for a purchase price of $1,269 . On May 24, 2005, the proceeds from the sale of the preferred and common securities of $42,269 were loaned in the form of a note to the Operating Partnership (“Note 2”). Note 2 had a fixed rate of 6.7% through June 30, 2010 , and then was payable at a variable rate equal to the three month LIBOR plus 2.4% per annum. Effective July 11, 2011, the Trust II entered into an interest rate swap that fixes the interest rate to be paid at 5.0% per annum and matures July 11, 2018 . The interest on Note 2, payable quarterly, will be used by the Trust II to pay dividends on the trust preferred securities. The trust preferred securities became redeemable by the Trust II with no prepayment premium on June 30, 2010. During April 2005, ESS Statutory Trust I (the “Trust”), a newly formed Delaware statutory trust and a wholly-owned, unconsolidated subsidiary of the Operating Partnership of the Company issued an aggregate of $35,000 of trust preferred securities which mature on June 30, 2035 . In addition, the Trust issued 1,083 of Trust common securities to the Operating Partnership for a purchase price of $1,083 . On April 8, 2005, the proceeds from the sale of the trust preferred and common securities of $36,083 were loaned in the form of a note to the Operating Partnership (the “Note”). The Note has a variable rate equal to the three month LIBOR plus 2.3% per annum. Effective June 30, 2010, the Trust entered into an interest rate swap that fixes the interest rate to be paid at 5.1% per annum and matures on June 30, 2018 . The interest on the Note, payable quarterly, will be used by the Trust to pay dividends on the trust preferred securities. The trust preferred securities are redeemable by the Trust with no prepayment premium. Trust, Trust II and Trust III (together, the “Trusts”) are VIEs because the holders of the equity investment at risk (the trust preferred securities) do not have the power to direct the activities of the entities that most significantly affect the entities’ economic performance because of their lack of voting or similar rights. Because the Operating Partnership’s investment in the Trusts’ common securities was financed directly by the Trusts as a result of its loan of the proceeds to the Operating Partnership, that investment is not considered to be an equity investment at risk. The Operating Partnership’s investment in the Trusts is not a variable interest because equity interests are variable interests only to the extent that the investment is considered to be at risk, and therefore the Operating Partnership cannot be the primary beneficiary of the Trusts. Since the Company is not the primary beneficiary of the Trusts, they have not been consolidated. A debt obligation has been recorded in the form of notes as discussed above for the proceeds, which are owed to the Trusts by the Company. The Company has also recorded its investment in the Trusts’ common securities as other assets. The Company has not provided financing or other support during the periods presented to the Trusts that it was not previously contractually obligated to provide. The Company’s maximum exposure to loss as a result of its involvement with the Trusts is equal to the total amount of the notes discussed above less the amounts of the Company’s investments in the Trusts’ common securities. The net amount is the notes payable that the Trusts owe to third parties for their investments in the Trusts’ preferred securities. The notes payable to trusts are presented net of unamortized deferred financing costs of $2,146 and $2,269 as of December 31, 2017 and 2016 , respectively. Following is a tabular comparison of the liabilities the Company has recorded as a result of its involvements with the Trusts to the maximum exposure to loss the Company is subject to related to the Trusts as of December 31, 2017 : Notes payable to Trusts Investment Balance Maximum exposure to loss Difference Trust $ 36,083 $ 1,083 $ 35,000 $ — Trust II 42,269 1,269 41,000 — Trust III 41,238 1,238 40,000 — Total 119,590 3,590 116,000 — Unamortized debt issuance costs (2,146 ) Total notes payable to trusts, net $ 117,444 |
Exchangeable Senior Notes
Exchangeable Senior Notes | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Exchangeable Senior Notes | NOTES PAYABLE AND REVOLVING LINES OF CREDIT The components of notes payable are summarized as follows: Notes Payable December 31, 2017 December 31, 2016 Fixed Rate Variable Rate Basis Rate (2) Maturity Dates Secured fixed rate notes payable (1) $ 2,095,495 $ 2,297,968 2.6% - 6.1% September 2018 - February 2030 Secured variable rate notes payable (1) 717,979 642,970 3.0% - 3.4% LIBOR plus 1.4% - 1.8% September 2018 - December 2024 Unsecured fixed rate notes payable 600,000 — 3.1% - 4.0% October 2021 - August 2027 Unsecured variable rate notes payable 350,000 300,000 2.8% - 3.2% LIBOR plus 1.3% - 1.7% October 2021 - October 2023 Total 3,763,474 3,240,938 Less: unamortized debt issuance costs (24,977 ) (27,350 ) Total $ 3,738,497 $ 3,213,588 (1) The loans are collateralized by mortgages on real estate assets and the assignment of rents. (2) 30-day USD LIBOR On October 14, 2016, the Company entered into a credit agreement (the “Credit Agreement”) which provides for aggregate borrowings of up to $1.15 billion , consisting of a senior unsecured four-year revolving credit facility of $500 million (the “Revolving Credit Facility”), a senior unsecured five-year term loan of $430 million (the “Five-Year Term Loan Facility”) and a senior unsecured seven-year term loan of $220 million (the “Seven-Year Term Loan Facility” and, together with the Revolving Credit Facility and the Five-Year Term Loan Facility, the “Credit Facility”). The Company may request an increase in the amount of the commitments under the Credit Facility up to an aggregate of $1.5 billion , and extend the term of the Revolving Credit Facility for up to two additional periods of six months each, after satisfying certain conditions. Amounts outstanding under the Credit Facility bear interest at floating rates, at the Company’s option, equal to either (i) LIBOR plus the applicable Eurodollar rate margin or (ii) the applicable base rate which is the applicable margin plus the highest of (a) 0.0% , (b) the federal funds rate plus 0.50% , (c) U.S. Bank’s prime rate or (d) the Eurodollar rate plus 1.00% . The applicable Eurodollar rate margin will range from 1.35% to 2.50% per annum and the applicable base rate margin will range from 0.35% to 1.50% per annum, in each case depending on the Company’s Consolidated Leverage Ratio, as defined in the Credit Agreement, and the type of loan. If the Operating Partnership obtains a specified investment grade rating from two or more specified credit rating agencies, and elects to use the alternative rates based on the Company’s debt rating, the applicable Eurodollar rate margin will range from 0.85% to 2.45% per annum and the applicable base rate margin will range from 0.00% to 1.45% per annum, in each case depending on the rating achieved and the type of loan. The Credit Agreement is guaranteed by the Company and is not secured by any assets of the Company. We are subject to certain restrictive covenants relating to our outstanding debt. As of December 31, 2017 , the Company was in compliance with all of its financial covenants. The following table summarizes the scheduled maturities of notes payable at December 31, 2017 : 2018 $ 210,085 2019 456,117 2020 930,308 2021 658,146 2022 493,493 Thereafter 1,015,325 $ 3,763,474 Real estate assets are pledged as collateral for the secured loans. Of the Company’s $3,763,474 principal amount of notes payable outstanding at December 31, 2017 , $2,545,278 was recourse due to guarantees or other security provisions. All of the Company’s lines of credit are guaranteed by the Company. The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated: As of December 31, 2017 Revolving Lines of Credit Amount Drawn Capacity Interest Rate Origination Date Maturity Basis Rate (1) Credit Line 1 (2) $ 19,000 $ 100,000 3.2% 6/4/2010 6/30/2018 LIBOR plus 1.7% Credit Line 2 (3)(4) 75,000 500,000 3.0% 10/14/2016 10/14/2020 LIBOR plus 1.4% $ 94,000 $ 600,000 (1) 30-day USD LIBOR (2) Secured by mortgages on certain real estate assets. One two-year extension available. (3) Unsecured. Two six-month extensions available. (4) Basis Rate as of December 31, 2017. Rate is subject to change based on our consolidated leverage ratio. EXCHANGEABLE SENIOR NOTES In September 2015, the Operating Partnership issued $575,000 of its 3.125% Exchangeable Senior Notes due 2035. Costs incurred to issue the 2015 Notes were approximately $11,992 , consisting primarily of a 2.0% underwriting fee. These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in other assets in the consolidated balance sheets. The 2015 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on April 1 and October 1 of each year beginning April 1, 2016, until the maturity date of October 1, 2035. The Notes bear interest at 3.125% per annum and contain an exchange settlement feature, which provides that the 2015 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2015 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2015 Notes as of December 31, 2017 was approximately 10.66 shares of the Company’s common stock per $1,000 principal amount of the 2015 Notes. The Operating Partnership may redeem the 2015 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after October 5, 2020, the Operating Partnership may redeem the 2015 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2015 Notes. The holders of the 2015 Notes have the right to require the Operating Partnership to repurchase the 2015 Notes for cash, in whole or in part, on October 1 of the years 2020, 2025 and 2030, (unless the Operating Partnership has called the 2015 Notes for redemption), and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2015 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2015 Notes, which may result in the accelerated maturity of the 2015 Notes. On June 21, 2013, the Operating Partnership issued $250,000 of its 2.375% Exchangeable Senior Notes due 2033 at a 1.5% discount, or $3,750 . Costs incurred to issue the 2013 Notes were approximately $1,672 . These costs are being amortized as an adjustment to interest expense over five years , which represents the estimated term based on the first available redemption date, and are included in other assets in the consolidated balance sheets. The 2013 Notes are general unsecured senior obligations of the Operating Partnership and are fully guaranteed by the Company. Interest is payable on January 1 and July 1 of each year beginning January 1, 2014, until the maturity date of July 1, 2033. The 2013 Notes bear interest at 2.375% per annum and contain an exchange settlement feature, which provides that the 2013 Notes may, under certain circumstances, be exchangeable for cash (for the principal amount of the 2013 Notes) and, with respect to any excess exchange value, for cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock, at the Company’s option. The exchange rate of the 2013 Notes as of December 31, 2017 was approximately 18.85 shares of the Company’s common stock per $1,000 principal amount of the 2013 Notes. Additionally, the 2013 Notes and the 2015 Notes can be exchanged during any calendar quarter, if the last reported sale price of the common stock of the Company is greater than or equal to 130% of the exchange price for at least 20 trading days during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter. The price of the Company’s common stock exceeded 130% of the exchange price for the required time period for the 2013 Notes during the quarter ended December 31, 2017 . Therefore, holders of the 2013 Notes may elect to exchange such notes during the quarter ending March 31, 2018. The price of the Company’s common stock did not exceed 130% of the exchange price for the required time period for the 2015 Notes during the quarter ended December 31, 2017 . The Operating Partnership may redeem the 2013 Notes at any time to preserve the Company’s status as a REIT. In addition, on or after July 5, 2018, the Operating Partnership may redeem the 2013 Notes for cash, in whole or in part, at 100% of the principal amount plus accrued and unpaid interest, upon at least 30 days but not more than 60 days prior written notice to the holders of the 2013 Notes. The holders of the 2013 Notes have the right to require the Operating Partnership to repurchase the 2013 Notes for cash, in whole or in part, on July 1 of the years 2018, 2023 and 2028, and upon the occurrence of certain designated events, in each case for a repurchase price equal to 100% of the principal amount of the 2013 Notes plus accrued and unpaid interest. Certain events are considered “Events of Default,” as defined in the indenture governing the 2013 Notes, which may result in the accelerated maturity of the 2013 Notes. GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date, July 1, 2018 for the 2013 Notes and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0% , which approximates the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance. Information about the carrying amount of the equity component, the principal amount of the liability component, its unamortized discount and its net carrying amount were as follows for the periods indicated: December 31, 2017 December 31, 2016 Carrying amount of equity component - 2013 Notes $ — $ — Carrying amount of equity component - 2015 Notes 22,597 22,597 Carrying amount of equity components $ 22,597 $ 22,597 Principal amount of liability component - 2013 Notes $ 49,259 $ 63,170 Principal amount of liability component - 2015 Notes 575,000 575,000 Unamortized discount - equity component - 2013 Notes (315 ) (1,187 ) Unamortized discount - equity component - 2015 Notes (12,974 ) (17,355 ) Unamortized cash discount - 2013 Notes (74 ) (281 ) Unamortized debt issuance costs (6,620 ) (9,033 ) Net carrying amount of liability components $ 604,276 $ 610,314 The amount of interest cost recognized relating to the contractual interest rate and the amortization of the discount on the liability component for the 2013 Notes and 2015 Notes was as follows for the periods indicated: For the Year Ended December 31, 2017 2016 2015 Contractual interest $ 19,303 $ 19,483 $ 9,939 Amortization of discount 5,103 4,980 3,310 Total interest expense recognized $ 24,406 $ 24,463 $ 13,249 Repurchase of 2013 Notes During July, August and October 2017, the Company repurchased a total principal amount of $13,911 of the 2013 Notes. The Company paid cash of $20,042 for the total of the principal amount and the exchange value in excess of the principal amount. During April 2016, the Company repurchased a total principal amount of $2,555 of the 2013 Notes. The Company paid cash for the principal amount and issued a total of 18,031 shares of common stock valued at $1,686 for the exchange value in excess of the principal amount. During February 2016, the Company repurchased a total principal amount of $19,639 of the 2013 Notes. The Company paid cash for the principal amount, and issued a total of 130,909 shares of common stock valued at $11,380 for the exchange value in excess of the principal amount. As part of the 2015 Notes offering, the Company repurchased $164,636 of the 2013 Notes for $227,212 on September 15, 2015. The Company allocated the value of the consideration paid to repurchase the 2013 Notes (1) to the extinguishment of the liability component and (2) to the reacquisition of the equity component. The amount allocated to the extinguishment of the liability component is equal to the fair value of that component immediately prior to extinguishment. The difference between the consideration attributed to the extinguishment of the liability component and the sum of (a) the net carrying amount of the repurchased liability component, and (b) the related unamortized debt issuance costs, is recognized as a gain on debt extinguishment. The remaining settlement consideration is allocated to the reacquisition of the equity component of the repurchased 2013 Notes and recognized as a reduction of stockholders’ equity. Information about the repurchases is as follows: For the Year Ended December 31, 2017 2016 2015 Principal amount repurchased $ 13,911 $ 22,194 $ 164,636 Amount allocated to: Extinguishment of liability component $ 13,692 $ 21,363 $ 157,100 Reacquisition of equity component 6,350 13,898 70,112 Total consideration paid for repurchase $ 20,042 $ 35,261 $ 227,212 Exchangeable senior notes repurchased $ 13,911 $ 22,194 $ 164,636 Extinguishment of liability component (13,692 ) (21,363 ) (157,100 ) Discount on exchangeable senior notes (184 ) (788 ) (6,931 ) Related debt issuance costs (35 ) (43 ) (605 ) Gain/(loss) on repurchase $ — $ — $ — Subsequent to year end, the Company has repurchased a total principal amount of $37,704 of the 2013 Notes. The Company paid cash for these repurchases totaling $58,465 , which included the principal amount and the exchange value in excess of the principal amount. |
Related Party and Affiliated Re
Related Party and Affiliated Real Estate Joint Venture Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party and Affiliated Real Estate Joint Venture Transactions | RELATED PARTY AND AFFILIATED REAL ESTATE JOINT VENTURE TRANSACTIONS The Company provides management services to certain joint ventures and third parties for a fee. Management fee revenues for related party and affiliated real estate joint ventures and other income are summarized as follows: For the Year Ended December 31, Entity Type 2017 2016 2015 PRISA Affiliated real estate joint ventures $ 6,303 $ 6,117 $ 5,809 SP I Affiliated real estate joint ventures 1,450 1,397 1,312 WCOT Affiliated real estate joint ventures 1,159 1,819 1,799 VRS Affiliated real estate joint ventures 1,038 1,053 1,398 ESNPS Affiliated real estate joint ventures 645 620 584 ESW Affiliated real estate joint ventures 590 555 515 ESW II Affiliated real estate joint ventures 502 482 452 PRISA II Affiliated real estate joint ventures — 3,469 4,703 Other Franchisees, third parties and other 27,692 24,330 17,589 $ 39,379 $ 39,842 $ 34,161 Receivables from related parties and affiliated real estate joint ventures balances are summarized as follows: December 31, 2017 December 31, 2016 Mortgage notes receivable $ — $ 15,860 Other receivables from stores 2,847 751 $ 2,847 $ 16,611 Mortgage notes receivable consisted of short-term mortgage notes to joint ventures and one three-year revolving line of credit to a joint venture. These short-term mortgage notes had a maturity of less than a year and were repaid prior to December 31, 2017. Other receivables from stores consist of amounts due for management fees, asset management fees and expenses paid on behalf of the stores that the Company manages. The Company believes that all of these related party and affiliated real estate joint venture receivables are fully collectible. The Company did not have any payables to related parties at December 31, 2017 or 2016 . The Company has entered into an annual aircraft dry lease and service and management agreement with SpenAero, L.C. (“SpenAero”), an affiliate of Spencer F. Kirk, who was the Company's Chief Executive Officer through December 31, 2016 and continues to serve as a member of the Company's Board of Directors. Under the terms of the agreement, the Company pays a defined hourly rate for use of the aircraft. During the years ended December 31, 2017 , 2016 and 2015 , the Company paid SpenAero $167 , $1,180 and $1,163 , respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY The Company’s charter provides that it can issue up to 500,000,000 shares of common stock, $0.01 par value per share and 50,000,000 shares of preferred stock, $0.01 par value per share. As of December 31, 2017 , 126,007,091 shares of common stock were issued and outstanding, and no shares of preferred stock were issued or outstanding. All holders of the Company's common stock are entitled to receive dividends and to one vote on all matters submitted to a vote of stockholders. The transfer agent and registrar for the Company’s common stock is American Stock Transfer & Trust Company. On August 28, 2015, the Company filed a $400,000 “at the market” equity program with the Securities and Exchange Commission, and entered into separate equity distribution agreements with five sales agents. On May 6, 2016, the Company filed its current $400,000 "at the market" equity program with the Securities and Exchange Commission using a new shelf registration statement on Form S-3, and entered into separate equity distribution agreements with five sales agents. Under the terms of the current equity distribution agreements, the Company may from time to time offer and sell shares of common stock, up to the aggregate offering price of $400,000 , through its sales agents. The current equity distribution agreements, dated May 6, 2016, replaced and superseded the previous equity distribution agreements, dated August 28, 2015. During the year ended December 31, 2017 , the Company sold no shares of common stock under its "at the market" equity program. During July 2016, the Company sold 550,000 shares of common stock under the current “at the market” equity program at an average sales price of $92.04 per share, resulting in net proceeds of $50,062 . At December 31, 2017 , the Company had $349,375 available for issuance under the existing equity distribution agreements. From January 1, 2016, through May 6, 2016, the Company sold 831,300 shares of common stock under the previous “at the market” equity program at an average sales price of $89.66 per share, resulting in net proceeds of $73,360 . During September 2015, the Company sold 410,000 shares of common stock under the previous “at the market” equity program at an average sales price of $75.17 per share, resulting in net proceeds of $30,266 . On June 22, 2015, the Company issued and sold 6,325,000 shares of its common stock in a public offering at a price of $68.15 per share. The Company received gross proceeds of $431,049 . The underwriting discount and transaction costs were $14,438 , resulting in net proceeds of $416,611 . |
Noncontrolling Interest Represe
Noncontrolling Interest Represented By Preferred Operating Partnership Units | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest Represented By Preferred Operating Partnership Units | NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS Classification of Noncontrolling Interests GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the Operating Partnership’s preferred units and classifies the noncontrolling interest represented by such preferred units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. As of December 31, 2017 , the noncontrolling interests represented by Operating Partnership preferred units consisted of the following: • 875,480 Series A Units; • 1,676,087 Series B Units; • 704,016 Series C Units; and • 3,682,521 Series D Units. At December 31, 2017 and 2016 , the noncontrolling interests represented by the Preferred Operating Partnership Units qualified for classification as permanent equity on the Company's consolidated balance sheets. The partnership agreement of the Operating Partnership (as amended, the "Partnership Agreement") provides for the designation and issuance of the OP Units. Series A Participating Redeemable Preferred Units The Series A Units were issued in June 2007. Series A Units in the amount of $101,700 bear a fixed priority return of 2.3% and originally had a fixed liquidation value of $115,000 . The remaining balance participates in distributions with, and has a liquidation value equal to, that of the common OP Units. The Series A Units became redeemable at the option of the holder on September 1, 2008, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock. As a result of the redemption of 114,500 Series A Units in October 2014, the remaining fixed liquidation value was reduced to $101,700 . On April 18, 2017, the holder of the Series A Units and the Operating Partnership agreed to reduce the fixed priority return on the Series A Units from 5.0% to 2.3% in exchange for a reduction in the interest rate of the related loan, as more fully described below. The Partnership Agreement provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. On June 25, 2007, the Operating Partnership loaned the holders of the Series A Units $100,000 . The note receivable bears interest at 2.1% . On April 18, 2017, a loan amendment was signed modifying the maturity date of the loan to the later of the death of the Series A Unit holder or his spouse and also lowering the interest rate of the loan from 4.9% to 2.1% . The loan amendment was determined to be a loan modification under GAAP, and therefore no change in value was recognized. The loan is secured by the borrower’s Series A Units. No future redemption of Series A Units can be made unless the loan secured by the Series A Units is also repaid. The Series A Units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan is also the holder of the Series A Units. Series B Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series B Units. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series B Units were issued in 2013 and 2014 and have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902 . Holders of the Series B Units receive distributions at an annual rate of 6.0% . These distributions are cumulative. The Series B Units are redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash or shares of its common stock. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. Series C Convertible Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units rank junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series C Units were issued in 2013 and 2014 and have a liquidation value of $42.10 per unit for a fixed liquidation value of $29,639 . From issuance to the fifth anniversary of issuance, each Series C Unit holder will receive quarterly distributions equal to the quarterly distribution for common OP Unit plus $0.18 . Beginning on the fifth anniversary of issuance, each Series C Unit holder will receive a fixed quarterly distribution equal to the aggregate quarterly distribution payable in respect of such Series C Unit during the four quarters immediately preceding the fifth anniversary of issuance divided by four. These distributions are cumulative. The Series C Units will become redeemable at the option of the holder one year from the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. The Series C Units will also become convertible into common OP Units at the option of the holder one year from the date of issuance, at a rate of 0.9145 common OP Units per Series C Unit converted. This conversion option expires upon the fifth anniversary of the date of issuance. In December 2014, the Operating Partnership loaned holders of the Series C Units $20,230 . The notes receivable, which are collateralized by the Series C Units, bear interest at 5.0% and mature on December 15, 2024. The Series C Units are shown on the balance sheet net of the $20,230 loan because the borrower under the loan receivable is also the holder of the Series C Units. Series D Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series D Units. The Series D Units rank junior to the Series A Units, on parity with the Series B Units and Series C Units, and senior to all other partnership interest of the Operating Partnership with respect to distributions and liquidation. The Series D Units have been issued at various times from 2014 to 2017. During the year ended December 31, 2017 , the Operating Partnership issued 446,420 Series D Units valued at $11,161 in conjunction with wholly-owned and joint venture acquisitions. During the year ended December 31, 2016 , the Operating Partnership issued a total of 2,687,711 Series D Units valued at $67,193 in conjunction with the acquisition of real estate assets. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $92,064 . Holders of the Series D Units receive distributions at an annual rate between 3.0% and 5.0% . These distributions are cumulative. The Series D Units will become redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. In addition, certain of the Series D Units are exchangeable for common OP Units until the tenth anniversary of the date of issuance, with the number of common OP Units to be issued equal to $25.00 per Series D Unit, divided by the value of a share of common stock as of the exchange date. NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP The Company’s interest in its stores is held through the Operating Partnership. Between its general partner and limited partner interests, the Company held a 90.9% majority ownership interest therein as of December 31, 2017 . The remaining ownership interests in the Operating Partnership (including Preferred Operating Partnership units) of 9.1% are held by certain former owners of assets acquired by the Operating Partnership. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company's option in cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (based on the ten -day average trading price) at the time of the redemption. Alternatively, the Company may, at its sole discretion, elect to acquire those OP Units in exchange for shares of its common stock on a one-for-one basis , subject to anti-dilution adjustments provided in the Operating Partnership agreement. The ten -day average closing stock price at December 31, 2017 , was $86.77 and there were 5,664,370 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on December 31, 2017 and the Company elected to pay the OP Unit holders cash, the Company would have paid $491,497 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 OP Units redeemed for common stock — 23,850 787,850 OP Units redeemed for cash 33,896 6,760 — Cash paid for OP Units redeemed $ 2,510 $ 506 $ — OP Units issued in conjunction with acquisitions 90,228 93,569 2,043,613 Value of OP Units issued in conjunction with acquisitions $ 7,618 $ 7,247 $ 142,399 GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the common OP Units and classifies the noncontrolling interest represented by the common OP Units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. OTHER NONCONTROLLING INTERESTS Other noncontrolling interests represent the ownership interest of third parties in two consolidated joint ventures as of December 31, 2017 . One joint venture owns an operating store and a development store in Texas. and a development store in Colorado, and the other owns a development property in Pennsylvania. The voting interests of the third-party owners are between 5.0% and 20.0% . |
Noncontrolling Interest in Oper
Noncontrolling Interest in Operating Partnership | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Operating Partnership | NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS Classification of Noncontrolling Interests GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the Operating Partnership’s preferred units and classifies the noncontrolling interest represented by such preferred units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. As of December 31, 2017 , the noncontrolling interests represented by Operating Partnership preferred units consisted of the following: • 875,480 Series A Units; • 1,676,087 Series B Units; • 704,016 Series C Units; and • 3,682,521 Series D Units. At December 31, 2017 and 2016 , the noncontrolling interests represented by the Preferred Operating Partnership Units qualified for classification as permanent equity on the Company's consolidated balance sheets. The partnership agreement of the Operating Partnership (as amended, the "Partnership Agreement") provides for the designation and issuance of the OP Units. Series A Participating Redeemable Preferred Units The Series A Units were issued in June 2007. Series A Units in the amount of $101,700 bear a fixed priority return of 2.3% and originally had a fixed liquidation value of $115,000 . The remaining balance participates in distributions with, and has a liquidation value equal to, that of the common OP Units. The Series A Units became redeemable at the option of the holder on September 1, 2008, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock. As a result of the redemption of 114,500 Series A Units in October 2014, the remaining fixed liquidation value was reduced to $101,700 . On April 18, 2017, the holder of the Series A Units and the Operating Partnership agreed to reduce the fixed priority return on the Series A Units from 5.0% to 2.3% in exchange for a reduction in the interest rate of the related loan, as more fully described below. The Partnership Agreement provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. On June 25, 2007, the Operating Partnership loaned the holders of the Series A Units $100,000 . The note receivable bears interest at 2.1% . On April 18, 2017, a loan amendment was signed modifying the maturity date of the loan to the later of the death of the Series A Unit holder or his spouse and also lowering the interest rate of the loan from 4.9% to 2.1% . The loan amendment was determined to be a loan modification under GAAP, and therefore no change in value was recognized. The loan is secured by the borrower’s Series A Units. No future redemption of Series A Units can be made unless the loan secured by the Series A Units is also repaid. The Series A Units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan is also the holder of the Series A Units. Series B Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series B Units. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series B Units were issued in 2013 and 2014 and have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902 . Holders of the Series B Units receive distributions at an annual rate of 6.0% . These distributions are cumulative. The Series B Units are redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash or shares of its common stock. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. Series C Convertible Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units rank junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series C Units were issued in 2013 and 2014 and have a liquidation value of $42.10 per unit for a fixed liquidation value of $29,639 . From issuance to the fifth anniversary of issuance, each Series C Unit holder will receive quarterly distributions equal to the quarterly distribution for common OP Unit plus $0.18 . Beginning on the fifth anniversary of issuance, each Series C Unit holder will receive a fixed quarterly distribution equal to the aggregate quarterly distribution payable in respect of such Series C Unit during the four quarters immediately preceding the fifth anniversary of issuance divided by four. These distributions are cumulative. The Series C Units will become redeemable at the option of the holder one year from the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. The Series C Units will also become convertible into common OP Units at the option of the holder one year from the date of issuance, at a rate of 0.9145 common OP Units per Series C Unit converted. This conversion option expires upon the fifth anniversary of the date of issuance. In December 2014, the Operating Partnership loaned holders of the Series C Units $20,230 . The notes receivable, which are collateralized by the Series C Units, bear interest at 5.0% and mature on December 15, 2024. The Series C Units are shown on the balance sheet net of the $20,230 loan because the borrower under the loan receivable is also the holder of the Series C Units. Series D Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series D Units. The Series D Units rank junior to the Series A Units, on parity with the Series B Units and Series C Units, and senior to all other partnership interest of the Operating Partnership with respect to distributions and liquidation. The Series D Units have been issued at various times from 2014 to 2017. During the year ended December 31, 2017 , the Operating Partnership issued 446,420 Series D Units valued at $11,161 in conjunction with wholly-owned and joint venture acquisitions. During the year ended December 31, 2016 , the Operating Partnership issued a total of 2,687,711 Series D Units valued at $67,193 in conjunction with the acquisition of real estate assets. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $92,064 . Holders of the Series D Units receive distributions at an annual rate between 3.0% and 5.0% . These distributions are cumulative. The Series D Units will become redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. In addition, certain of the Series D Units are exchangeable for common OP Units until the tenth anniversary of the date of issuance, with the number of common OP Units to be issued equal to $25.00 per Series D Unit, divided by the value of a share of common stock as of the exchange date. NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP The Company’s interest in its stores is held through the Operating Partnership. Between its general partner and limited partner interests, the Company held a 90.9% majority ownership interest therein as of December 31, 2017 . The remaining ownership interests in the Operating Partnership (including Preferred Operating Partnership units) of 9.1% are held by certain former owners of assets acquired by the Operating Partnership. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company's option in cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (based on the ten -day average trading price) at the time of the redemption. Alternatively, the Company may, at its sole discretion, elect to acquire those OP Units in exchange for shares of its common stock on a one-for-one basis , subject to anti-dilution adjustments provided in the Operating Partnership agreement. The ten -day average closing stock price at December 31, 2017 , was $86.77 and there were 5,664,370 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on December 31, 2017 and the Company elected to pay the OP Unit holders cash, the Company would have paid $491,497 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 OP Units redeemed for common stock — 23,850 787,850 OP Units redeemed for cash 33,896 6,760 — Cash paid for OP Units redeemed $ 2,510 $ 506 $ — OP Units issued in conjunction with acquisitions 90,228 93,569 2,043,613 Value of OP Units issued in conjunction with acquisitions $ 7,618 $ 7,247 $ 142,399 GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the common OP Units and classifies the noncontrolling interest represented by the common OP Units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. OTHER NONCONTROLLING INTERESTS Other noncontrolling interests represent the ownership interest of third parties in two consolidated joint ventures as of December 31, 2017 . One joint venture owns an operating store and a development store in Texas. and a development store in Colorado, and the other owns a development property in Pennsylvania. The voting interests of the third-party owners are between 5.0% and 20.0% . |
Other Noncontrolling Interests
Other Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Other Noncontrolling Interests | NONCONTROLLING INTEREST REPRESENTED BY PREFERRED OPERATING PARTNERSHIP UNITS Classification of Noncontrolling Interests GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section, but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the Operating Partnership’s preferred units and classifies the noncontrolling interest represented by such preferred units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. As of December 31, 2017 , the noncontrolling interests represented by Operating Partnership preferred units consisted of the following: • 875,480 Series A Units; • 1,676,087 Series B Units; • 704,016 Series C Units; and • 3,682,521 Series D Units. At December 31, 2017 and 2016 , the noncontrolling interests represented by the Preferred Operating Partnership Units qualified for classification as permanent equity on the Company's consolidated balance sheets. The partnership agreement of the Operating Partnership (as amended, the "Partnership Agreement") provides for the designation and issuance of the OP Units. Series A Participating Redeemable Preferred Units The Series A Units were issued in June 2007. Series A Units in the amount of $101,700 bear a fixed priority return of 2.3% and originally had a fixed liquidation value of $115,000 . The remaining balance participates in distributions with, and has a liquidation value equal to, that of the common OP Units. The Series A Units became redeemable at the option of the holder on September 1, 2008, which redemption obligation may be satisfied, at the Company’s option, in cash or shares of its common stock. As a result of the redemption of 114,500 Series A Units in October 2014, the remaining fixed liquidation value was reduced to $101,700 . On April 18, 2017, the holder of the Series A Units and the Operating Partnership agreed to reduce the fixed priority return on the Series A Units from 5.0% to 2.3% in exchange for a reduction in the interest rate of the related loan, as more fully described below. The Partnership Agreement provides for the designation and issuance of the Series A Units. The Series A Units have priority over all other partnership interests of the Operating Partnership with respect to distributions and liquidation. On June 25, 2007, the Operating Partnership loaned the holders of the Series A Units $100,000 . The note receivable bears interest at 2.1% . On April 18, 2017, a loan amendment was signed modifying the maturity date of the loan to the later of the death of the Series A Unit holder or his spouse and also lowering the interest rate of the loan from 4.9% to 2.1% . The loan amendment was determined to be a loan modification under GAAP, and therefore no change in value was recognized. The loan is secured by the borrower’s Series A Units. No future redemption of Series A Units can be made unless the loan secured by the Series A Units is also repaid. The Series A Units are shown on the balance sheet net of the $100,000 loan because the borrower under the loan is also the holder of the Series A Units. Series B Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series B Units. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series B Units were issued in 2013 and 2014 and have a liquidation value of $25.00 per unit for a fixed liquidation value of $41,902 . Holders of the Series B Units receive distributions at an annual rate of 6.0% . These distributions are cumulative. The Series B Units are redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligations may be satisfied at the Company’s option in cash or shares of its common stock. The Series B Units rank junior to the Series A Units, on parity with the Series C Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. Series C Convertible Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units rank junior to the Series A Units, on parity with the Series B Units and Series D Units, and senior to all other partnership interests of the Operating Partnership with respect to distributions and liquidation. The Series C Units were issued in 2013 and 2014 and have a liquidation value of $42.10 per unit for a fixed liquidation value of $29,639 . From issuance to the fifth anniversary of issuance, each Series C Unit holder will receive quarterly distributions equal to the quarterly distribution for common OP Unit plus $0.18 . Beginning on the fifth anniversary of issuance, each Series C Unit holder will receive a fixed quarterly distribution equal to the aggregate quarterly distribution payable in respect of such Series C Unit during the four quarters immediately preceding the fifth anniversary of issuance divided by four. These distributions are cumulative. The Series C Units will become redeemable at the option of the holder one year from the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. The Series C Units will also become convertible into common OP Units at the option of the holder one year from the date of issuance, at a rate of 0.9145 common OP Units per Series C Unit converted. This conversion option expires upon the fifth anniversary of the date of issuance. In December 2014, the Operating Partnership loaned holders of the Series C Units $20,230 . The notes receivable, which are collateralized by the Series C Units, bear interest at 5.0% and mature on December 15, 2024. The Series C Units are shown on the balance sheet net of the $20,230 loan because the borrower under the loan receivable is also the holder of the Series C Units. Series D Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series D Units. The Series D Units rank junior to the Series A Units, on parity with the Series B Units and Series C Units, and senior to all other partnership interest of the Operating Partnership with respect to distributions and liquidation. The Series D Units have been issued at various times from 2014 to 2017. During the year ended December 31, 2017 , the Operating Partnership issued 446,420 Series D Units valued at $11,161 in conjunction with wholly-owned and joint venture acquisitions. During the year ended December 31, 2016 , the Operating Partnership issued a total of 2,687,711 Series D Units valued at $67,193 in conjunction with the acquisition of real estate assets. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $92,064 . Holders of the Series D Units receive distributions at an annual rate between 3.0% and 5.0% . These distributions are cumulative. The Series D Units will become redeemable at the option of the holder on the first anniversary of the date of issuance, which redemption obligation may be satisfied at the Company’s option in cash or shares of its common stock. In addition, certain of the Series D Units are exchangeable for common OP Units until the tenth anniversary of the date of issuance, with the number of common OP Units to be issued equal to $25.00 per Series D Unit, divided by the value of a share of common stock as of the exchange date. NONCONTROLLING INTEREST IN OPERATING PARTNERSHIP The Company’s interest in its stores is held through the Operating Partnership. Between its general partner and limited partner interests, the Company held a 90.9% majority ownership interest therein as of December 31, 2017 . The remaining ownership interests in the Operating Partnership (including Preferred Operating Partnership units) of 9.1% are held by certain former owners of assets acquired by the Operating Partnership. The noncontrolling interest in the Operating Partnership represents OP Units that are not owned by the Company. OP Units are redeemable at the option of the holder, which redemption may be satisfied at the Company's option in cash based upon the fair market value of an equivalent number of shares of the Company’s common stock (based on the ten -day average trading price) at the time of the redemption. Alternatively, the Company may, at its sole discretion, elect to acquire those OP Units in exchange for shares of its common stock on a one-for-one basis , subject to anti-dilution adjustments provided in the Operating Partnership agreement. The ten -day average closing stock price at December 31, 2017 , was $86.77 and there were 5,664,370 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on December 31, 2017 and the Company elected to pay the OP Unit holders cash, the Company would have paid $491,497 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 OP Units redeemed for common stock — 23,850 787,850 OP Units redeemed for cash 33,896 6,760 — Cash paid for OP Units redeemed $ 2,510 $ 506 $ — OP Units issued in conjunction with acquisitions 90,228 93,569 2,043,613 Value of OP Units issued in conjunction with acquisitions $ 7,618 $ 7,247 $ 142,399 GAAP requires a company to present ownership interests in subsidiaries held by parties other than the company in the consolidated financial statements within the equity section but separate from the company’s equity. It also requires the amount of consolidated net income attributable to the parent and to the noncontrolling interest to be clearly identified and presented on the face of the consolidated statement of operations and requires changes in ownership interest to be accounted for similarly as equity transactions. If noncontrolling interests are determined to be redeemable, they are to be carried at their redemption value as of the balance sheet date and reported as temporary equity. The Company has evaluated the terms of the common OP Units and classifies the noncontrolling interest represented by the common OP Units as stockholders’ equity in the accompanying consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling amount as permanent equity in the consolidated balance sheets. Any noncontrolling interests that fail to qualify as permanent equity will be reclassified as temporary equity and adjusted to the greater of (1) the carrying amount, or (2) its redemption value as of the end of the period in which the determination is made. OTHER NONCONTROLLING INTERESTS Other noncontrolling interests represent the ownership interest of third parties in two consolidated joint ventures as of December 31, 2017 . One joint venture owns an operating store and a development store in Texas. and a development store in Colorado, and the other owns a development property in Pennsylvania. The voting interests of the third-party owners are between 5.0% and 20.0% . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION As of December 31, 2017 , 1,653,855 shares were available for issuance under the Company’s 2015 Incentive Award Plan (the “Plan”). Option grants are issued with an exercise price equal to the closing price of stock on the date of grant. Unless otherwise determined by the Compensation, Nominating and Governance Committee (“CNG Committee”) at the time of grant, options shall vest ratably over a four -year period beginning on the date of grant. Each option wi ll be exercisable once it has vested. Options are exercisable at such times and subject to such terms as deter mined by the CNG Committee, but under no circumstances may be exercised if such exercise would cause a violation of the ownership limit in the Company’s charter. Options expire 10 years from the date of grant. Beginning in 2017, the CNG Committee decided to the replace stock options granted to executives with performance based stock units for executive compensation. See the "Performance-Based Stock Units" section below. Also as defined under the terms of the Plan, restricted stock grants may be awarded. The stock grants are subject to a vesting period over which the restrictions are released and the stock certificates are given to the grantee. During the performance or vesting period, the grantee is not permitted to sell, transfer, pledge, encumber or assign shares of restricted stock granted under the Plan; however, the grantee has the ability to vote the shares and receive nonforfeitable dividends paid on shares. Unless otherwise determined by the CNG Committee at the time of grant, the forfeiture and transfer restrictions on the shares lapse over a four -year period beginning on the date of grant. Option Grants A summary of stock option activity is as follows: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of December 31, 2017 Outstanding at December 31, 2014 568,727 $ 16.62 Granted 89,575 69.93 Exercised (79,974 ) 18.79 Forfeited (5,699 ) 39.83 Outstanding at December 31, 2015 572,629 $ 24.42 Granted 35,800 85.99 Exercised (97,855 ) 14.75 Forfeited — — Outstanding at December 31, 2016 510,574 $ 30.60 Exercised (38,418 ) 32.94 Outstanding at December 31, 2017 472,156 $ 30.41 3.71 $26,934 Vested and Expected to Vest 468,601 $ 30.05 3.68 $26,897 Ending Exercisable 394,363 $ 21.86 2.96 $25,864 The aggregate intrinsic value in the table above represents the total value (the difference between the Company’s closing stock price on the last trading day of 2017 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on December 31, 2017 . The amount of aggregate intrinsic value will change based on the fair market value of the Company’s stock. The weighted average fair value of stock options granted in 2016 and 2015 , was $20.30 and $16.89 , respectively. There were no options granted in 2017 . The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: For the Year Ended December 31, 2016 2015 Expected volatility 37.0 % 38.0 % Dividend yield 3.6 % 3.6 % Risk-free interest rate 1.3 % 1.5 % Average expected term (years) 5 5 The Black-Scholes model incorporates assumptions to value stock-based awards. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the estimated life of the option. The Company uses actual historical data to calculate the expected price volatility, dividend yield and average expected term. The forfeiture rate, which is estimated at a weighted-average of 7.4% of unvested options outstanding as of December 31, 2017 , is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimates. A summary of stock options outstanding and exercisable as of December 31, 2017 , is as follows: Options Outstanding Options Exercisable Exercise Price Shares Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Weighted Average Exercise Price $6.22 - $6.22 157,750 1.13 $ 6.22 157,750 $ 6.22 $11.59 - $12.21 105,480 2.17 12.04 105,480 12.04 $19.6 - $65.36 105,986 5.20 39.89 89,629 36.47 $65.45 - $73.52 67,140 7.47 71.46 32,550 71.65 $85.99 - $85.99 35,800 8.15 85.99 8,954 85.99 $6.22-$85.99 472,156 3.71 $ 30.41 394,363 $ 21.86 The Company recorded compensation expense relating to outstanding options of $649 , $729 and $510 in general and administrative expense for the years ended December 31, 2017 , 2016 and 2015 , respectively. Total cash received for the years ended December 31, 2017 , 2016 and 2015 , related to option exercises was $1,265 , $1,444 and $1,542 , respectively. At December 31, 2017 , there was $869 of total unrecognized compensation expense related to non-vested stock options under the Plan. That cost is expected to be recognized over a weighted-average period of 1.56 years. The valuation model applied in this calculation utilizes subjective assumptions that could potentially change over time, including the expected forfeiture rate. Therefore, the amount of unrecognized compensation expense at December 31, 2017 noted above does not necessarily represent the expense that will ultimately be realized by the Company in the statement of operations. Common Stock Granted to Employees and Directors The Company recorded $8,072 , $7,316 and $5,545 of expense in general and administrative expense in its statement of operations related to restricted stock awards granted to employees and directors for the years ended December 31, 2017 , 2016 and 2015 , respectively. The forfeiture rate, which is estimated at a weighted-average of 10.1% of unvested awards outstanding as of December 31, 2017 , is adjusted periodically based on the extent to which actual forfeitures differ, or are expected to differ, from the previous estimates. At December 31, 2017 there was $12,913 of total unrecognized compensation expense related to non-vested restricted stock awards under the Plan. That cost is expected to be recognized over a weighted-average period of 2.14 years. The fair value of common stock awards is determined based on the closing trading price of the Company’s common stock on the grant date. A summary of the Company’s employee and director share grant activity is as follows: Restricted Stock Grants Shares Weighted-Average Grant-Date Fair Value Unreleased at December 31, 2014 291,749 $ 37.73 Granted 174,558 69.18 Released (129,808 ) 34.86 Cancelled (18,090 ) 44.54 Unreleased at December 31, 2015 318,409 $ 55.75 Granted 119,931 87.61 Released (128,808 ) 50.05 Cancelled (9,947 ) 67.36 Unreleased at December 31, 2016 299,585 $ 70.57 Granted 95,392 74.49 Released (120,323 ) 63.95 Cancelled (8,179 ) 77.25 Unreleased at December 31, 2017 266,475 $ 74.76 Performance-based Stock Units In 2017, the CNG Committee changed its compensation for executives to issue performance-based stock units (the "PSUs") as a replacement for stock option awards. The PSUs granted to executives in March 2017 represent the right to earn shares of the Company's common stock. These awards have two financial performance components: (1) the Company's core FFO performance ("FFO Target"), and (2) the Company's total stockholder return relative to the performance of a defined group of peers ("TSR Target"). Each of these performance components are weighted 50% and are measured over the performance period, which is defined as the three -year period ending December 31, 2019. At the end of the performance period, the financial performance components are reviewed to determine the number of shares actually granted to executives, which can be as low as zero shares and up to a maximum of two shares issued for each PSU. A summary of the PSU activity is as follows: Performance-based Stock Units Units Weighted-Average Grant-Date Fair Value Unvested at December 31, 2016 — $ — Granted 30,071 83.84 Unvested at December 31, 2017 30,071 83.84 The Company estimated the fair value of the PSUs as of the grant date, using the closing trading price of the Company's common stock on the grant date to value the FFO Target portion. A Monte Carlo simulation model was used to calculate the fair value of the TSR Target portion of the PSUs, using an expected term of 2.8 years, a risk-free rate of 1.6% , and expected volatility of 21.4% . Under the terms of the PSUs, dividends for the entire measurement period are paid in cash when the shares are issued, so a dividend yield of zero was used. The Monte Carlo simulation model incorporates assumptions to value stock-based awards. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the estimated life of the PSUs. Compensation cost is recognized ratably over the period from the date of grant to the end of the related performance period. The Company recognized compensation expense of $840 during the year ended December 31, 2017 related to the PSUs, which is included in general and administrative expense in the Company's consolidated statements of operations. The intrinsic value of unvested PSUs as of December 31, 2017 was $2,630 . As of December 31, 2017, there was $1,681 of total unrecognized compensation expense related to the PSUs under the Plan. That cost is expected to be recognized over a period of two years. The valuation model applied in this calculation utilizes subjective assumptions that could potentially change over time, including the probabilities associated with achieving the FFO Targets (categorized within Level 3 of the fair value hierarchy). Therefore, the amount of unrecognized compensation expense at December 31, 2017 noted above does not necessarily represent the expense that will ultimately be realized by the Company in the statement of operations. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | EMPLOYEE BENEFIT PLAN The Company has a retirement savings plan under Section 401(k) of the Internal Revenue Code under which eligible employees can contribute up to 60% of their annual salary, subject to a statutory prescribed annual limit. For the years ended December 31, 2017 , 2016 and 2015 , the Company made matching contributions to the plan of $2,212 , $1,944 and $1,680 , respectively, based on 100% of the first 3% and up to 50% of the next 2% of an employee’s compensation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES As a REIT, the Company is generally not subject to federal income tax with respect to that portion of its income which is distributed annually to its stockholders. However, the Company has elected to treat one of its corporate subsidiaries, Extra Space Management, Inc., as a taxable REIT subsidiary. In general, the Company’s TRS may perform additional services for tenants and generally may engage in any real estate or non-real estate related business. A TRS is subject to federal corporate income tax. The Company accounts for income taxes in accordance with the provisions of ASC 740, “Income Taxes.” Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. The Company has elected to use the Tax-Law-Ordering approach to determine when excess tax benefits will be realized. The income tax provision for the years ended December 31, 2017 , 2016 and 2015 , is comprised of the following components: For the Year Ended December 31, 2017 Federal State Total Current expense $ 5,677 $ 1,662 $ 7,339 Tax credits/true-up (5,573 ) (383 ) (5,956 ) Change in deferred expense 1,700 542 2,242 Total tax expense $ 1,804 $ 1,821 $ 3,625 For the Year Ended December 31, 2016 Federal State Total Current expense $ 14,627 $ 2,368 $ 16,995 Tax credits/true-up (312 ) — (312 ) Change in deferred benefit (369 ) (467 ) (836 ) Total tax expense $ 13,946 $ 1,901 $ 15,847 For the Year Ended December 31, 2015 Federal State Total Current expense $ 3,736 $ 1,640 $ 5,376 Tax credits/true-up 274 — 274 Change in deferred expense (benefit) 7,016 (1,518 ) 5,498 Total tax expense $ 11,026 $ 122 $ 11,148 A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows: For the Year Ended December 31, 2017 2016 2015 Expected tax at statutory rate $ 186,274 35.0 % $ 144,708 35.0 % $ 77,151 35.0 % Non-taxable REIT income (170,811 ) (32.1 )% (131,112 ) (31.7 )% (67,084 ) (30.4 )% State and local tax expense - net of federal benefit 2,306 0.4 % 2,399 0.6 % 1,249 0.6 % Change in valuation allowance 159 — % (845 ) (0.2 )% (624 ) (0.3 )% Tax credits/true-up (5,956 ) (1.1 )% (312 ) (0.1 )% 274 0.1 % Remeasurement of deferred balances (8,460 ) (1.6 )% — — % — — % Miscellaneous 113 — % 1,009 0.2 % 182 0.1 % Total provision $ 3,625 0.6 % $ 15,847 3.8 % $ 11,148 5.1 % The major sources of temporary differences stated at their deferred tax effects are as follows: December 31, 2017 December 31, 2016 Deferred tax liabilities: Fixed assets $ (15,271 ) $ (16,488 ) Other (108 ) (201 ) State deferred taxes (2,822 ) (1,242 ) Total deferred tax liabilities (18,201 ) (17,931 ) Deferred tax assets: Captive insurance subsidiary 252 413 Accrued liabilities 873 2,741 Stock compensation 1,287 1,713 Solar credit 43 — Other 57 1,548 SmartStop TRS 219 365 State deferred taxes 7,802 6,078 Total deferred tax assets 10,533 12,858 Valuation allowance (4,924 ) (4,765 ) Net deferred income tax liabilities $ (12,592 ) $ (9,838 ) The state income tax net operating losses expire between 2018 and 2035. The valuation allowance is associated with the state income tax net operating losses. The tax years 2013 through 2016 remain open related to the state returns, and 2014 through 2016 for the federal returns. Federal tax reform legislation that was enacted on December 22, 2017 (commonly known as the Tax Cuts and Jobs Act) (the “2017 Tax Legislation”) made substantial changes to the Internal Revenue Code. Among those changes are a reduction in the U.S. federal corporate tax rate from the previous rate of 35% to 21%, the elimination or modification of various currently allowed deductions, and a deduction for REIT stockholders that are individuals, trusts and estates of up to 20% of ordinary REIT dividends. Many of the provisions of the 2017 Tax Legislation will require guidance through the issuance of Treasury regulations in order to assess their effect. There may be a substantial delay before such regulations are issued, increasing the uncertainty as to the ultimate effect of the statutory amendments on the Company. It is also likely that there will be technical corrections legislation proposed with respect to the 2017 Tax Legislation, the effect of which cannot be predicted and may be adverse to the Company or its stockholders. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the 2017 Tax Legislation. SAB 118 provides a measurement period that should not extend beyond one year from the Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the 2017 Tax Legislation. The Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, the Company is still analyzing certain aspects of the 2017 Tax Legislation and refining calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The tax benefit recorded related to the remeasurement of the deferred tax balance and valuation allowance was $8,606 , which is included as a component of income tax expense. The impact of the 2017 Tax Legislation may differ from the Company’s estimates, possibly materially, due to, among other things, changes in interpretations and assumptions the Company has made, guidance that may be issued and actions the Company may take as a result of the 2017 Tax Legislation. The Company will continue to make and refine calculations as additional analysis is completed. In addition, the estimates may also be affected as the Company gains a more thorough understanding of the tax law. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company’s segment disclosures present the measure used by the chief operating decision makers ("CODMs") for purposes of assessing each segment’s performance. The Company’s CODMs are comprised of several members of its executive management team who use net operating income ("NOI") to assess the performance of the business for the Company’s reportable operating segments. NOI for our self-storage operations represents total property revenue less direct property operating expenses. NOI for our tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense. The Company’s segments were historically comprised of three reportable segments: (1) rental operations; (2) tenant reinsurance; and (3) property management, acquisition and development. Based on how the CODMs reviews performance and makes decisions, the Company realigned its segments into two reportable segments: (1) self-storage operations and (2) tenant reinsurance. The self-storage operations activities include rental operations of wholly-owned stores. The Company's consolidated revenues equal total segment revenues plus property management fees and other income. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Excluded from segment revenues and net operating income is property management fees and other income. For all periods presented, substantially all of our real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. The prior periods have been restated to conform to the current presentation. Financial information for the Company’s business segments is set forth below: Year Ended December 31, 2017 2016 2015 Revenues: Self-storage operations $ 967,229 $ 864,742 $ 676,138 Tenant reinsurance 98,401 87,291 71,971 Total segment revenues $ 1,065,630 $ 952,033 $ 748,109 Operating expenses: Self-storage operations $ 271,974 $ 250,005 $ 203,965 Tenant reinsurance 19,173 15,555 13,033 Total segment operating expenses $ 291,147 $ 265,560 $ 216,998 Net operating income: Self-storage operations $ 695,255 $ 614,737 $ 472,173 Tenant reinsurance 79,228 71,736 58,938 Total segment net operating income $ 774,483 $ 686,473 $ 531,111 Total segment net operating income $ 774,483 $ 686,473 $ 531,111 Other components of net income (loss): Property management fees and other income 39,379 39,842 34,161 General and administrative expense (78,961 ) (81,806 ) (67,758 ) Depreciation and amortization expense (193,296 ) (182,560 ) (133,457 ) Acquisition and other related costs (1) — (12,111 ) (69,401 ) Gain (loss) on real estate transactions, earnout 112,789 8,465 1,501 Interest expense (153,511 ) (133,479 ) (95,682 ) Non-cash interest expense related to the amortization of (5,103 ) (4,980 ) (3,310 ) Interest income 3,801 6,148 3,461 Interest income on note receivable from Preferred Operating 2,935 4,850 4,850 Equity in earnings of unconsolidated real estate ventures 15,331 12,895 12,351 Equity in earnings of unconsolidated real estate ventures - gain — 69,199 2,857 Income tax expense (3,625 ) (15,847 ) (11,148 ) Net income $ 514,222 $ 397,089 $ 209,536 (1) Beginning January 1, 2017, acquisition related costs have been capitalized due to the adoption of ASU 2017-01"Business Combinations (Topic 805): Clarifying the Definition of a Business." |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company has operating leases on its corporate offices and owns 23 stores that are subject to leases. At December 31, 2017 , future minimum rental payments under these non-cancelable operating leases were as follows (unaudited): Less than 1 year $ 8,015 Year 2 7,521 Year 3 7,566 Year 4 7,448 Year 5 7,147 Thereafter 114,729 $ 152,426 The Company recorded expense of $6,898 , $4,578 and $3,858 related to operating leases in the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company is involved in various legal proceedings and is subject to various claims and complaints arising in the ordinary course of business. Because litigation is inherently unpredictable, the outcome of these matters cannot presently be determined with any degree of certainty. In accordance with applicable accounting guidance, management establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be an exposure to loss in excess of any amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. Therefore, any estimate(s) of loss disclosed below represents what management believes to be an estimate of loss only for certain matters meeting these criteria and does not represent the Company's maximum loss exposure. The Company could in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period, notwithstanding the fact that the Company is currently vigorously defending any legal proceedings against it. As of December 31, 2017 , the Company was involved in various legal proceedings and was subject to various claims and complaints arising in the ordinary course of business. In the opinion of management, such litigation, claims and complaints are not expected to have a material adverse effect on the Company’s financial condition or results of operations. As of December 31, 2017 , the Company was under agreement to acquire 14 stores at a total purchase price of $190,222 . Of these stores, ten are scheduled to close in 2018 at a purchase price of $141,294 , three are scheduled to close in 2019 at a purchase price of $38,400 , and one is scheduled to close thereafter at a purchase price of $10,528 . Additionally, the Company is under agreement to acquire 17 stores with joint venture partners, for a total investment of $88,203 . Fourteen of these stores are scheduled to close in 2018, while the remaining three stores are expected to close in 2019. The Company owns and/or operates stores located in Texas, Florida, and Puerto Rico that were impacted by Hurricanes Harvey, Irma, and Maria during the year ended December 31, 2017 . Losses incurred to date by these hurricanes include property damage, net of insurance recoveries, of $2,110 , and tenant reinsurance claims of $2,250 , which are included in property operations and tenant reinsurance on the Company's condensed consolidated statements of operations. Although there can be no assurance, the Company is not aware of any material environmental liability, for which it believes it will be ultimately responsible, that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to its properties could result in future material environmental liabilities. |
Supplementary Quarterly Financi
Supplementary Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Quarterly Financial Data (Unaudited) | SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED) For the Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Revenues $ 263,008 $ 276,003 $ 284,156 $ 281,842 Cost of operations 138,805 139,596 144,275 140,728 Revenues less cost of operations $ 124,203 $ 136,407 $ 139,881 $ 141,114 Net income $ 89,734 $ 94,098 $ 101,075 $ 229,315 Net income attributable to common stockholders $ 82,282 $ 87,006 $ 93,764 $ 215,983 Earnings per common share—basic $ 0.65 $ 0.69 $ 0.74 $ 1.71 Earnings per common share—diluted $ 0.64 $ 0.69 $ 0.74 $ 1.69 For the Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 229,403 $ 244,273 $ 257,183 $ 261,016 Cost of operations 135,775 133,971 134,459 137,832 Revenues less cost of operations $ 93,628 $ 110,302 $ 122,724 $ 123,184 Net income $ 89,407 $ 90,040 $ 127,226 $ 90,416 Net income attributable to common stockholders $ 82,592 $ 83,044 $ 118,088 $ 82,403 Earnings per common share—basic $ 0.66 $ 0.66 $ 0.94 $ 0.65 Earnings per common share—diluted $ 0.66 $ 0.66 $ 0.93 $ 0.65 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS Subsequent to year end the Company has purchased five stores for a total of $69,852 . On February 2, 2018, the Company and Teachers Insurance and Annuity ("TIAA") entered into the Third Amended and Restated Limited Liability Company Agreement of Storage Portfolio I LLC (as amended, the "SP I LLC Agreement"). The amendment to the SP I LLC Agreement is deemed effective as of January 1, 2018. Under the SP I LLC Agreement, the joint venture was recapitalized and the Company's ownership percentage of the SP I joint venture increased to 34.0% . Additionally, the Company's excess profit participation percentage increased to 49.0% . |
Schedule III - Real Estate and
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended |
Dec. 31, 2017 | |
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |
Schedule III - Real Estate and Accumulated Depreciation | Extra Space Storage Inc. Schedule III Real Estate and Accumulated Depreciation (Dollars in thousands) As of December 31, 2017 Building and Improvements Intial Cost Adjustments and Costs Subsequent to Acquisition Gross carrying amount at December 31, 2017 Self - Storage Facilities by State: Store Count Land Intial Cost Building and Improvements Accumulated Depreciation Debt Land Total AL 8 $ 28,937 $ 7,690 $ 42,770 $ 2,749 $ 7,691 $ 45,518 $ 53,209 $ 5,629 AZ 22 39,996 24,250 109,844 7,614 24,248 117,460 141,708 16,873 CA 145 669,690 449,865 1,050,646 82,601 450,072 1,133,040 1,583,112 194,614 CO 13 28,411 9,785 45,004 12,959 9,972 57,776 67,748 14,611 CT 7 14,364 9,875 50,966 3,351 9,874 54,318 64,192 6,657 FL 82 325,016 141,187 532,262 41,778 142,081 573,146 715,227 97,830 GA 55 124,373 70,611 334,343 19,789 70,602 354,141 424,743 37,953 HI 9 39,041 17,663 133,870 4,703 17,663 138,573 156,236 17,887 IL 31 75,753 44,427 225,423 19,708 43,449 246,109 289,558 28,278 IN 15 16,511 12,447 58,247 4,728 12,447 62,975 75,422 7,870 KS 1 — 366 1,897 491 366 2,388 2,754 916 KY 10 31,023 7,914 61,852 4,099 7,914 65,951 73,865 7,675 LA 2 8,731 6,114 8,541 1,252 6,115 9,792 15,907 3,615 MA 41 109,919 61,040 217,696 34,110 61,221 251,625 312,846 63,898 MD 32 144,812 99,147 284,253 12,225 98,419 297,206 395,625 53,154 MI 6 2,785 7,657 38,777 1,865 7,657 40,642 48,299 2,744 MN 1 — 1,528 16,030 240 1,528 16,270 17,798 523 MO 5 14,671 4,129 15,444 2,977 4,086 18,464 22,550 6,143 MS 3 — 2,420 20,849 1,338 2,420 22,187 24,607 1,342 NC 16 30,490 28,298 91,659 3,300 28,296 94,961 123,257 5,391 NH 2 6,109 754 4,054 1,011 817 5,002 5,819 2,074 NJ 55 206,391 117,000 490,627 29,396 117,447 519,576 637,023 97,042 NM 10 11,513 22,889 61,575 3,521 22,889 65,096 87,985 5,103 NV 14 28,990 15,252 74,376 3,562 15,252 77,938 93,190 5,834 NY 22 117,779 121,479 232,875 20,664 122,215 252,803 375,018 44,859 OH 16 37,286 16,677 40,923 5,295 16,676 46,219 62,895 9,769 OR 6 31,070 7,906 39,576 1,116 7,906 40,692 48,598 5,261 PA 16 29,140 22,176 123,544 8,138 21,468 132,390 153,858 16,058 RI 2 7,852 3,191 6,926 946 3,191 7,872 11,063 2,426 SC 23 44,315 37,075 135,760 8,265 37,076 144,024 181,100 14,133 TN 17 48,717 25,938 91,497 6,246 25,938 97,743 123,681 12,135 TX 97 291,418 166,643 629,982 43,395 166,625 673,395 840,020 71,866 UT 10 21,938 9,008 39,295 9,636 9,008 48,931 57,939 7,515 VA 44 204,498 132,362 390,878 13,872 132,363 404,749 537,112 44,694 WA 8 32,080 12,528 47,645 1,791 12,530 49,434 61,964 8,581 DC 1 9,304 14,394 18,172 326 14,394 18,498 32,892 812 Other corporate assets — — 2,202 97,501 — 99,703 99,703 25,948 Intangible tenant relationships and lease rights — — 126,819 — — 126,819 126,819 112,347 Construction in Progress/Undeveloped Land — 17,874 — 29,275 13,245 33,904 47,149 — Totals 847 $ 2,832,923 $ 1,749,559 $ 5,897,098 $ 545,834 $ 1,745,161 $ 6,447,330 $ 8,192,491 $ 1,060,060 Activity in real estate facilities during the years ended December 31, 2017 , 2016 and 2015 is as follows: 2017 2016 2015 Operating facilities Balance at beginning of year $ 7,649,448 $ 6,392,487 $ 4,722,162 Acquisitions 628,391 1,159,304 1,609,608 Improvements 71,090 92,480 46,696 Transfers from construction in progress 19,079 26,400 19,971 Dispositions and other (209,267 ) (21,223 ) (5,950 ) Balance at end of year $ 8,158,741 $ 7,649,448 $ 6,392,487 Accumulated depreciation: Balance at beginning of year $ 900,861 $ 728,087 $ 604,336 Depreciation expense 185,903 174,906 123,751 Dispositions and other (26,704 ) (2,132 ) — Balance at end of year $ 1,060,060 $ 900,861 $ 728,087 Real estate under development/redevelopment: Balance at beginning of year $ 21,860 $ 24,909 $ 17,870 Current development 33,484 23,404 27,010 Transfers to operating facilities (19,079 ) (26,400 ) (19,971 ) Dispositions and other (2,515 ) (53 ) — Balance at end of year $ 33,750 $ 21,860 $ 24,909 Net real estate assets $ 7,132,431 $ 6,770,447 $ 5,689,309 As of December 31, 2017 , the aggregate cost of real estate for U.S. federal income tax purposes was $6,914,712 . |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the accounts of the Company and its wholly- or majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The Company accounts for arrangements that are not controlled through voting or similar rights as variable interest entities (“VIEs”). An enterprise is required to consolidate a VIE if it is the primary beneficiary of the VIE. A VIE is created when (i) the equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support from other parties, or (ii) the entity’s equity holders as a group either: (a) lack the power, through voting or similar rights, to direct the activities of the entity that most significantly impact the entity’s economic performance, (b) are not obligated to absorb expected losses of the entity if they occur, or (c) do not have the right to receive expected residual returns of the entity if they occur. If an entity is deemed to be a VIE, the enterprise that is deemed to have a variable interest, or combination of variable interests, that provides the enterprise with a controlling financial interest in the VIE, is considered the primary beneficiary and must consolidate the VIE. The Company has concluded that under certain circumstances when the Company enters into arrangements for the formation of joint ventures, a VIE may be created under condition (i), (ii) (b) or (c) of the previous paragraph. For each VIE created, the Company has performed a qualitative analysis, including considering which party, if any, has the power to direct the activities most significant to the economic performance of each VIE and whether that party has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. If the Company is determined to be the primary beneficiary of the VIE, the assets, liabilities and operations of the VIE are consolidated with the Company’s financial statements. Additionally, the Operating Partnership has notes payable to three trusts that are VIEs under condition (ii)(a) above. Since the Operating Partnership is not the primary beneficiary of the trusts, these VIEs are not consolidated. The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control, and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting on the accompanying consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value Disclosures | Fair Value Disclosures Derivative financial instruments Currently, the Company uses interest rate swaps to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves. The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of future interest rates (forward curves) derived from observable market interest rate forward curves. The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. In adjusting the fair value of its derivative contracts for the effect of nonperformance risk, the Company has considered the impact of netting and any applicable credit enhancements, such as collateral postings, thresholds, mutual puts, and guarantees. In conjunction with the Financial Accounting Standard Board’s fair value measurement guidance, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with its derivatives utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. However, as of December 31, 2017 , the Company has assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets - Cash Flow Hedge Swap Agreements $ 38,365 $ — $ 38,365 $ — Other liabilities - Cash Flow Hedge Swap Agreements $ 9 $ — $ 9 $ — There were no transfers of assets and liabilities between Level 1 and Level 2 during the year ended December 31, 2017 . The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of December 31, 2017 or 2016 . Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Long-lived assets held for use are evaluated for impairment when events or circumstances indicate there may be impairment. The Company reviews each store at least annually to determine if any such events or circumstances have occurred or exist. The Company focuses on stores where occupancy and/or rental income have decreased by a significant amount. For these stores, the Company determines whether the decrease is temporary or permanent, and whether the store will likely recover the lost occupancy and/or revenue in the short term. In addition, the Company reviews stores in the lease-up stage and compares actual operating results to original projections. When the Company determines that an event that may indicate impairment has occurred, the Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets. An impairment loss is recorded if the net carrying value of the assets exceeds the undiscounted future net operating cash flows attributable to the assets. The impairment loss recognized equals the excess of net carrying value over the related fair value of the assets. When real estate assets are identified by management as held for sale, the Company discontinues depreciating the assets and estimates the fair value of the assets, net of selling costs. The Company compares the carrying value of the related long-lived assets to the undiscounted future net operating cash flows attributable to the assets (categorized within Level 3 of the fair value hierarchy). If the estimated fair value, net of selling costs, of the assets that have been identified as held for sale is less than the net carrying value of the assets, the Company would recognize a loss on the assets held for sale. The operations of assets held for sale or sold during the period are presented as part of normal operations for all periods presented. The Company assesses annually whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be impaired and when events or circumstances indicate that there may be impairment. An investment is impaired if management’s estimate of the fair value of the investment is less than its carrying value. To the extent impairment has occurred, and is considered to be other than temporary, the loss is measured as the excess of the carrying amount of the investment over the fair value of the investment. As of December 31, 2017 and 2016 , the Company did not have any assets or liabilities measured at fair value on a nonrecurring basis. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, restricted cash, receivables, other financial instruments included in other assets, accounts payable and accrued expenses, variable-rate notes payable, revolving lines of credit and other liabilities reflected in the consolidated balance sheets at December 31, 2017 and 2016 , approximate fair value. The fair values of the Company’s notes receivable from Preferred Operating Partnership unit holders and other fixed rate notes receivable were based on the discounted estimated future cash flow of the notes (categorized within Level 3 of the fair value hierarchy); the discount rate used approximated the current market rate for loans with similar maturities and credit quality. The fair values of the Company’s fixed rate notes payable and notes payable to trusts were estimated using the discounted estimated future cash payments to be made on such debt (categorized within Level 3 of the fair value hierarchy); the discount rates used approximated current market rates for loans, or groups of loans, with similar maturities and credit quality. The fair value of the Company’s exchangeable senior notes was estimated using an average market price for similar securities obtained from a third party. The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: December 31, 2017 December 31, 2016 Fair Carrying Fair Carrying Notes receivable from Preferred Operating Partnership unit holders $ 113,683 $ 120,230 $ 125,642 $ 120,230 Fixed rate notes receivable $ 20,942 $ 20,608 $ 53,450 $ 52,201 Fixed rate notes payable and notes payable to trusts $ 2,774,242 $ 2,815,085 $ 2,404,996 $ 2,417,558 Exchangeable senior notes $ 719,056 $ 624,259 $ 706,827 $ 638,170 |
Real Estate Assets | Real Estate Assets Real estate assets are stated at cost, less accumulated depreciation. Direct and allowable internal costs associated with the development, construction, renovation, and improvement of real estate assets are capitalized. Interest, property taxes, and other costs associated with development incurred during the construction period are capitalized. The construction period begins when expenditures for the real estate assets have been made and activities that are necessary to prepare the asset for its intended use are in progress. The construction period ends when the asset is substantially complete and ready for its intended use. Expenditures for maintenance and repairs 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 five and 39 years. Stores purchased at the time of certificate of occupancy issuance and stores purchased subsequent to the Company's adoption of ASU 2017-01 on January 1, 2017 are considered asset acquisitions. As such, the purchase price is allocated to the real estate assets acquired based on their relative fair values, which are estimated using significant unobservable inputs. The value of the tangible assets, consisting of land and buildings, is determined as if vacant. Intangible assets, which represent the value of existing tenant relationships, are recorded at their relative fair values based on the avoided cost to replace the current leases. The Company measures the value of tenant relationships based on the rent lost due to the amount of time required to replace existing customers, which is based on the Company’s historical experience with turnover in its stores. Any debt assumed as part of the acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transactions costs are capitalized as part of the purchase price. Intangible lease rights represent: (1) purchase price amounts allocated to leases on three stores that cannot be classified as ground or building leases; these rights are amortized to expense over the life of the leases and (2) intangibles related to ground leases on eight stores where the leases were assumed by the Company at rates that were lower than the current market rates for similar leases. The values associated with these assumed leases were recorded as intangibles, which will be amortized over the lease terms. |
Investments in Unconsolidated Real Estate Ventures | Investments in Unconsolidated Real Estate Ventures The Company’s investments in real estate joint ventures, where the Company has significant influence, but not control and joint ventures which are VIEs in which the Company is not the primary beneficiary, are recorded under the equity method of accounting in the accompanying consolidated financial statements. Under the equity method, the Company’s investment in real estate ventures is stated at cost and adjusted for the Company’s share of net earnings or losses and reduced by distributions. Equity in earnings of real estate ventures is generally recognized based on the Company’s ownership interest in the earnings of each of the unconsolidated real estate ventures. For the purposes of presentation in the statement of cash flows, the Company follows the “look through” approach for classification of distributions from joint ventures. Under this approach, distributions are reported under operating cash flow unless the facts and circumstances of a specific distribution clearly indicate that it is a return of capital (e.g., a liquidating dividend or distribution of the proceeds from the joint venture’s sale of assets), in which case it is reported as an investing activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company’s cash is deposited with financial institutions located throughout the United States and at times may exceed federally insured limits. The Company considers all highly liquid debt instruments with a maturity date of three months or less to be cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash is comprised of letters of credit and escrowed funds deposited with financial institutions located throughout the United States relating to earnest money deposits on potential acquisitions, real estate taxes, insurance and capital expenditures. |
Other Assets | Other Assets Other assets consist of equipment and fixtures, rents receivable from our tenants, investments in trusts, notes and other receivables, other intangible assets, deferred tax assets, prepaid expenses and the fair value of interest rate swaps. Depreciation of equipment and fixtures is computed on a straight-line basis over three to five years. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. The Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. |
Risk Management and Use of Financial Instruments | Risk Management and Use of Financial Instruments In the normal course of its ongoing business operations, the Company encounters economic risk. There are three main components of economic risk: interest rate risk, credit risk and market risk. The Company is subject to interest rate risk on its interest-bearing liabilities. Credit risk is the risk of inability or unwillingness of tenants to make contractually required payments. Market risk is the risk of declines in the value of stores due to changes in rental rates, interest rates or other market factors affecting the value of stores held by the Company. The Company has entered into interest rate swap agreements to manage a portion of its interest rate risk. |
Exchange of Common Operating Partnership Units | Exchange of Common Operating Partnership Units Redemption of common Operating Partnership units for shares of common stock, when redeemed under the original provisions of the Operating Partnership agreement, are accounted for by reclassifying the underlying net book value of the units from noncontrolling interest to the Company’s equity. |
Revenue and Expense Recognition | Revenue and Expense Recognition Rental revenues are recognized as earned based upon amounts that are currently due from tenants. Leases are generally on month-to-month terms. Prepaid rents are recognized on a straight-line basis over the term of the leases. Promotional discounts are recognized as a reduction to rental income over the promotional period. Late charges, administrative fees, merchandise sales and truck rentals are recognized as income when earned. Management fee revenues are recognized monthly as services are performed and in accordance with the terms of the related management agreements. Equity in earnings of unconsolidated real estate entities is recognized based on the Company's ownership interest in the earnings of each of the unconsolidated real estate entities. Interest income is recognized as earned. Property expenses, including utilities, property taxes, repairs and maintenance and other costs to manage the facilities are recognized as incurred. The Company accrues for property tax expense based upon invoice amounts, estimates and historical trends. If these estimates are incorrect, the timing of expense recognition could be affected. Tenant reinsurance premiums are recognized as revenue over the period of insurance coverage. The Company records an unpaid claims liability at the end of each period based on existing unpaid claims and historical claims payment history. The unpaid claims liability represents an estimate of the ultimate cost to settle all unpaid claims as of each period end, including both reported but unpaid claims and claims that may have been incurred but have not been reported. The Company uses a third party claims administrator to adjust all tenant reinsurance claims received. The administrator evaluates each claim to determine the ultimate claim loss and includes an estimate for claims that may have been incurred but not reported. Annually, a third party actuary evaluates the adequacy of the unpaid claims liability. Prior year claim reserves are adjusted as experience develops or new information becomes known. The impact of such adjustments is included in the current period operations. The unpaid claims liability is not discounted to its present value. Each tenant chooses the amount of insurance coverage they want through the tenant reinsurance program. Tenants can purchase policies in amounts of 2,000 dollars to 10,000 dollars of insurance coverage in exchange for a monthly fee. As of December 31, 2017 , the average insurance coverage for tenants was approximately 2,800 dollars. The Company’s exposure per claim is limited by the maximum amount of coverage chosen by each tenant. The Company purchases reinsurance for losses exceeding a set amount for any one event. The Company does not currently have any amounts recoverable under the reinsurance arrangements. For the years ended December 31, 2017 , 2016 and 2015 , the number of claims made were 5,671 , 4,055 and 3,959 , respectively. The following table presents information on the portion of the Company’s unpaid claims liability, which is included in other liabilities on the Company's consolidated balance sheets, that relates to tenant insurance for the periods indicated: For the Year Ended December 31, Tenant Reinsurance Claims: 2017 2016 2015 Unpaid claims liability at beginning of year $ 3,896 $ 3,908 $ 3,121 Claims and claim adjustment expense for claims incurred in the current year 11,700 7,250 6,421 Claims and claim adjustment expense (benefit) for claims incurred in the prior years (203 ) 87 — Payments for current year claims (8,895 ) (5,423 ) (4,283 ) Payments for prior year claims (1,331 ) (1,926 ) (1,351 ) Unpaid claims liability at the end of the year $ 5,167 $ 3,896 $ 3,908 |
Advertising Costs | Advertising Costs The Company incurs advertising costs primarily attributable to internet, directory and other advertising. These costs are expensed as incurred. The Company recognized $14,410 , $12,867 and $10,528 in advertising expense for the years ended December 31, 2017 , 2016 and 2015 , respectively, which are included in property operating expenses on the Company’s consolidated statements of operations. |
Income Taxes | Income Taxes The Company has elected to be treated as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended ("the Internal Revenue Code"). 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. For any taxable year that the Company fails to qualify as a REIT and for which applicable statutory relief provisions did not apply, we would be taxed at the regular corporate rates on all of our taxable income for at least that year and the ensuing four years. The Company is subject to certain state and local taxes. Provision for such taxes has been included in income tax expense on the Company’s consolidated statements of operations. For the year ended December 31, 2017 , 0% (unaudited) of all distributions to stockholders qualified as a return of capital. The Company has elected to treat its corporate subsidiary, Extra Space Management, Inc. (“ESMI”), 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. ESM Reinsurance Limited, a wholly-owned subsidiary of ESMI, generates income from insurance premiums that are subject to federal corporate income tax and state insurance premiums tax. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities. At December 31, 2017 and 2016 , there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of December 31, 2017 and 2016 , the Company had no interest or penalties related to uncertain tax provisions. |
Stock-Based Compensation | Stock-Based Compensation The measurement and recognition of compensation expense for all share-based payment awards to employees and directors 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. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed using the two-class method by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. All outstanding unvested restricted stock awards contain rights to non-forfeitable dividends and participate in undistributed earnings with common stockholders; accordingly, they are considered participating securities that are included in the two-class method. Diluted earnings per common share measures the performance of the Company over the reporting period while giving effect to all potential common shares that were dilutive and outstanding during the period. The denominator includes the weighted average number of basic shares and the number of additional common shares that would have been outstanding if the potential common shares that were dilutive had been issued, and is calculated using either the two-class, treasury stock or as if-converted method, whichever is most dilutive. Potential common shares are securities (such as options, convertible debt, Series A Participating Redeemable Preferred Units (“Series A Units”), Series B Redeemable Preferred Units (“Series B Units”), Series C Convertible Redeemable Preferred Units (“Series C Units”), Series D Redeemable Preferred Units (“Series D Units”) and common Operating Partnership units (“OP Units”)) that do not have a current right to participate in earnings of the Company but could do so in the future by virtue of their option, redemption or conversion right. In computing the dilutive effect of convertible securities, net income is adjusted to add back any changes in earnings in the period associated with the convertible security. The numerator also is adjusted for the effects of any other non-discretionary changes in income or loss that would result from the assumed conversion of those potential common shares. In computing diluted earnings per common share, only potential common shares that are dilutive (those that reduce earnings per common share) are included. For the years ended December 31, 2017 , 2016 and 2015 , options to purchase approximately 45,286 , 88,552 , and 62,254 shares of common stock, respectively, were excluded from the computation of earnings per share as their effect would have been anti-dilutive. For the purposes of computing the diluted impact of the potential exchange of the Preferred Operating Partnership Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the intent and ability to settle the redemption in shares, The Company divided the total value of the Preferred Operating Partnership units by the average share price of $78.59 for the year ended December 31, 2017 . The following table presents the number of weighted OP Units and Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive: For the Year Ended December 31, 2017 2016 2015 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Common OP Units — 5,564,631 — Series A Units (Variable Only) — 875,480 — Series B Units 533,174 499,966 579,640 Series C Units 377,135 353,646 410,002 Series D Units — 552,796 189,649 910,309 7,846,519 1,179,291 The Operating Partnership had $49,259 of its 2.375% Exchangeable Senior Notes due 2033 (the “2013 Notes”) issued and outstanding as of December 31, 2017 . The 2013 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2013 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2013 Notes. The exchange price of the 2013 Notes was $53.05 per share as of December 31, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2013 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. The Operating Partnership had $575,000 of its 3.125% Exchangeable Senior Notes due 2035 (the “2015 Notes”) issued and outstanding as of December 31, 2017 . The 2015 Notes could potentially have a dilutive impact on the Company’s earnings per share calculations. The 2015 Notes are exchangeable by holders into shares of the Company’s common stock under certain circumstances per the terms of the indenture governing the 2015 Notes. The exchange price of the 2015 Notes was $93.80 per share as of December 31, 2017 , and could change over time as described in the indenture. The Company has irrevocably agreed to pay only cash for the accreted principal amount of the 2015 Notes relative to its exchange obligations, but retained the right to satisfy the exchange obligation in excess of the accreted principal amount in cash and/or common stock. Though the Company has retained that right, Accounting Standards Codification (“ASC”) 260, “Earnings per Share,” requires an assumption that shares would be used to pay the exchange obligation in excess of the accreted principal amount, and requires that those shares be included in the Company’s calculation of weighted average common shares outstanding for the diluted earnings per share computation. For the years ended December 31, 2017 , 2016 and 2015 , 344,430 shares, 309,730 shares and 513,040 shares, respectively, related to the 2013 Notes were included in the computation for diluted earnings per share. For the years ended December 31, 2017 , 2016 and 2015 , no shares related to the 2015 Notes were included in the computation for diluted earnings per share as the exchange price exceeded the per share price of the Company’s common stock during this period. For the purposes of computing the diluted impact on earnings per share of the potential exchange of Series A Units for common shares upon redemption, where the Company has the option to redeem in cash or shares and where the Company has stated the positive intent and ability to settle at least $101,700 of the instrument in cash (or net settle a portion of the Series A Units against the related outstanding note receivable), only the amount of the instrument in excess of $101,700 is considered in the calculation of shares contingently issuable for the purposes of computing diluted earnings per share as allowed by ASC 260-10-45-46. The computation of earnings per share is as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 Net income attributable to common stockholders $ 479,013 $ 366,127 $ 189,474 Earnings and dividends allocated to participating securities (975 ) (792 ) (601 ) Earnings for basic computations 478,038 365,335 188,873 Earnings and dividends allocated to participating securities — 792 — Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units 30,088 — 14,790 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership Units (Series A) (3,119 ) — (5,088 ) Net income for diluted computations $ 505,007 $ 366,127 $ 198,575 Weighted average common shares outstanding: Average number of common shares outstanding - basic 125,967,831 125,087,554 119,816,743 OP Units 5,590,831 — 5,451,357 Series A Units 875,480 — 875,480 Series D Units 1,081,561 — — Unvested restricted stock awards included for treasury stock method — 299,585 — Shares related to exchangeable senior notes and dilutive stock options 640,068 560,937 775,289 Average number of common shares outstanding - diluted 134,155,771 125,948,076 126,918,869 Earnings per common share Basic $ 3.79 $ 2.92 $ 1.58 Diluted $ 3.76 $ 2.91 $ 1.56 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued ASU 2014-9, “ Revenue from Contracts with Customers, ” which amends the guidance for revenue recognition to replace numerous, industry-specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. ASU 2014-9 outlines a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. ASU 2014-9 includes all contracts with customers to provide goods and services in the ordinary course of business, except for certain contracts that are specifically excluded from the scope, such as lease contracts and insurance contracts. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. ASU 2014-9 will become effective for annual and interim periods beginning after December 15, 2017 with early adoption on the original effective date permitted. The Company has determined that its property rental revenue and tenant reinsurance revenue will not be subject to the guidance in ASU 2014-9, as they qualify as lease contract and insurance contracts, which are excluded from its scope. The Company's management fee revenue will be included in the scope of ASU 2014-9, however, revenue recognized under ASU 2014-9 will not differ materially from revenue recognized under existing guidance. The Company anticipates adopting the standard using the modified retrospective transition method as of January 1, 2018. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which modifies the accounting for leases, intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. ASU 2016-02 will require entities to recognize a liability for their lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the statements of operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. ASU 2016-02 requires that assets and liabilities be presented or disclosed separately, and requires additional disclosure of certain qualitative and quantitative information related to these lease agreements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018. The Company is currently assessing the impact of the adoption on ASU 2016-02 on the Company's consolidated financial statements. In March 2016, the FASB issued ASU 2016-05, "Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships." ASU 2016-05 clarifies that a change in the counterparty to a derivative instrument that has been designated as a hedging instrument does not, in and of itself, require re-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. The Company adopted this guidance on January 1, 2017. The adoption of ASU 2016-05 did not have a material impact on the Company's consolidated financial statements . In March 2016, the FASB issued ASU 2016-09, “ Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting .” ASU 2016-09 simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company adopted this guidance prospectively on January 1, 2017, and prior periods have not been adjusted. As a result of the adoption of this guidance, the Company no longer presents the tax effects from vesting of restricted stock grants and stock option exercises on its condensed consolidated statement of noncontrolling interests and equity. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance on several specific cash flow issues, including the classification of debt prepayment or debt extinguishment costs, contingent consideration payments, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In October 2016, the FASB issued ASU 2016-18, " Statement of Cash Flows (Topic 230): Restricted Cash," which requires that a statement of cash flows explains the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company will adopt this guidance January 1, 2018 and will begin presenting restricted cash along with cash and cash equivalents in its consolidated statements of cash flows. In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805) - Clarifying the Definition of a Business," which provides guidance on whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Specifically, when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. Additionally, ASU 2017-01 also provides other guidance providing a more robust framework to use in determining whether a set of assets and activities is a business. This guidance is effective for annual periods beginning after December 15, 2017. Early application of ASU 2017-01 is permitted for transactions for which the acquisition or disposition date occurs before the issuance date or effective date of the amendments, only when the transaction has not been reported in financial statements that have been issued. The Company adopted the guidance in ASU 2017-01 to new acquisitions beginning on January 1, 2017. The adoption of this guidance resulted in a decrease in acquisition related costs, as the Company's acquisition of operating stores are considered asset acquisitions rather than business combinations under ASU 2017-01, and such costs are capitalized under the new guidance. In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements for Accounting for Hedging Activities," which amends and simplifies existing guidance for the financial reporting of hedging relationships to allow companies to better portray the economic effects of risk management activities in their financial statements. ASU 2017-12 is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company plans to adopt ASU 2017-12 on January 1, 2018. ASU 2017-12 requires a modified retrospective transition method in which the Company will recognize the cumulative effect of the change on the opening balance of each affected component of equity in the consolidated balance sheets as of the date of adoption. The Company is currently assessing the impact of the adoption on ASU 2017-12 on the Company's consolidated financial statements. |
Convertible Debt | GAAP requires entities with convertible debt instruments that may be settled entirely or partially in cash upon conversion to separately account for the liability and equity components of the instrument in a manner that reflects the issuer’s economic interest cost. The Company therefore accounts for the liability and equity components of the 2013 Notes and 2015 Notes separately. The equity components are included in paid-in capital in stockholders’ equity in the consolidated balance sheets, and the value of the equity components are treated as original issue discount for purposes of accounting for the debt components. The discounts are being amortized as interest expense over the remaining period of the debt through its first redemption date, July 1, 2018 for the 2013 Notes and October 1, 2020 for the 2015 Notes. The effective interest rate on the liability components of both the 2013 Notes and the 2015 Notes is 4.0% , which approximates the market rate of interest of similar debt without exchange features (i.e. nonconvertible debt) at the time of issuance. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of December 31, 2017 , aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Other assets - Cash Flow Hedge Swap Agreements $ 38,365 $ — $ 38,365 $ — Other liabilities - Cash Flow Hedge Swap Agreements $ 9 $ — $ 9 $ — |
Schedule of Fair Value of Financial Instruments | The fair values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: December 31, 2017 December 31, 2016 Fair Carrying Fair Carrying Notes receivable from Preferred Operating Partnership unit holders $ 113,683 $ 120,230 $ 125,642 $ 120,230 Fixed rate notes receivable $ 20,942 $ 20,608 $ 53,450 $ 52,201 Fixed rate notes payable and notes payable to trusts $ 2,774,242 $ 2,815,085 $ 2,404,996 $ 2,417,558 Exchangeable senior notes $ 719,056 $ 624,259 $ 706,827 $ 638,170 |
Schedule of Unpaid Claims Liability | The following table presents information on the portion of the Company’s unpaid claims liability, which is included in other liabilities on the Company's consolidated balance sheets, that relates to tenant insurance for the periods indicated: For the Year Ended December 31, Tenant Reinsurance Claims: 2017 2016 2015 Unpaid claims liability at beginning of year $ 3,896 $ 3,908 $ 3,121 Claims and claim adjustment expense for claims incurred in the current year 11,700 7,250 6,421 Claims and claim adjustment expense (benefit) for claims incurred in the prior years (203 ) 87 — Payments for current year claims (8,895 ) (5,423 ) (4,283 ) Payments for prior year claims (1,331 ) (1,926 ) (1,351 ) Unpaid claims liability at the end of the year $ 5,167 $ 3,896 $ 3,908 |
Schedule of Antidilutive Shares Excluded from Computation of Earnings Per Share | The following table presents the number of weighted OP Units and Preferred Operating Partnership units, and the potential common shares, that were excluded from the computation of earnings per share as their effect would have been anti-dilutive: For the Year Ended December 31, 2017 2016 2015 Equivalent Shares (if converted) Equivalent Shares (if converted) Equivalent Shares (if converted) Common OP Units — 5,564,631 — Series A Units (Variable Only) — 875,480 — Series B Units 533,174 499,966 579,640 Series C Units 377,135 353,646 410,002 Series D Units — 552,796 189,649 910,309 7,846,519 1,179,291 |
Schedule of Computation of Earnings Per Common Share | The computation of earnings per share is as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 Net income attributable to common stockholders $ 479,013 $ 366,127 $ 189,474 Earnings and dividends allocated to participating securities (975 ) (792 ) (601 ) Earnings for basic computations 478,038 365,335 188,873 Earnings and dividends allocated to participating securities — 792 — Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units 30,088 — 14,790 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership Units (Series A) (3,119 ) — (5,088 ) Net income for diluted computations $ 505,007 $ 366,127 $ 198,575 Weighted average common shares outstanding: Average number of common shares outstanding - basic 125,967,831 125,087,554 119,816,743 OP Units 5,590,831 — 5,451,357 Series A Units 875,480 — 875,480 Series D Units 1,081,561 — — Unvested restricted stock awards included for treasury stock method — 299,585 — Shares related to exchangeable senior notes and dilutive stock options 640,068 560,937 775,289 Average number of common shares outstanding - diluted 134,155,771 125,948,076 126,918,869 Earnings per common share Basic $ 3.79 $ 2.92 $ 1.58 Diluted $ 3.76 $ 2.91 $ 1.56 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Schedule of Components of Real Estate Assets | The components of real estate assets are summarized as follows: December 31, 2017 December 31, 2016 Land - operating $ 1,731,915 $ 1,664,659 Land - development 13,246 26,982 Buildings, improvements and other intangibles 6,286,762 5,833,836 Intangible assets - tenant relationships 114,375 111,528 Intangible lease rights 12,443 12,443 8,158,741 7,649,448 Less: accumulated depreciation and amortization (1,060,060 ) (900,861 ) Net operating real estate assets 7,098,681 6,748,587 Real estate under development/redevelopment 33,750 21,860 Net real estate assets $ 7,132,431 $ 6,770,447 Real estate assets held for sale included in net real estate assets $ 10,276 $ 1,970 |
Property Acquisitions and Dis34
Property Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Operating Properties Acquired | The following table shows the Company’s acquisitions of stores for the years ended December 31, 2017 and 2016 . The table excludes purchases of raw land or improvements made to existing assets. Consideration Paid Total Quarter Number of Stores Total Cash Paid Loan Assumed Non- controlling Interests Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of OP Units Issued Number of OP Units Issued Real Estate Assets Q4 2017 37 (1) $ 535,299 $ 502,845 $ 14,592 $ (1,812 ) $ 12,957 $ 1,099 $ 5,618 64,708 $ 535,299 Q3 2017 4 31,966 29,919 — — — 47 2,000 25,520 31,966 Q2 2017 3 34,641 16,608 9,463 1,827 — (67 ) 6,810 272,400 34,641 Q1 2017 2 25,556 25,541 — — — 15 — — 25,556 46 $ 627,462 $ 574,913 $ 24,055 $ 15 $ 12,957 $ 1,094 $ 14,428 362,628 $ 627,462 Q4 2016 27 (2) $ 320,564 $ 297,569 $ — $ — $ — $ 4,997 $ 17,998 563,819 $ 328,683 Q3 2016 27 (3) 296,280 296,345 — — — (65 ) — — 307,268 Q2 2016 22 244,264 176,689 9,723 — — 1,615 56,237 2,215,231 244,264 Q1 2016 23 (4) 225,537 225,156 — — — 381 — — 269,721 99 $ 1,086,645 $ 995,759 $ 9,723 $ — $ — $ 6,928 $ 74,235 2,779,050 $ 1,149,936 (1) Store acquisitions during the three months ended December 31, 2017 include the acquisition of seven stores that had been owned by joint ventures in which the Company held an equity interest. No gain or loss was recognized as a result of these acquisitions as the Company accounted for them as asset acquisitions subsequent to the adoption of ASU 2017-01, rather than as business combinations achieved in stages (step acquisitions). (2) On November 17, 2016, the Company acquired 11 stores from its ESS WCOT LLC joint venture ("WCOT") in a step acquisition. The Company owns 5.0% of WCOT, with the other 95.0% owned by affiliates of Prudential Global Investment Management ("Prudential"). WCOT created a new subsidiary, Extra Space Properties 132 LLC ("ESP 132") and transferred 11 stores into ESP 132. WCOT then distributed ESP 132 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $68,814 . Immediately after the distribution, the Company acquired Prudential's 95.0% interest in ESP 132 for $153,304 , resulting in 100% ownership of ESP 132 and the related 11 stores. Based on the purchase price of Prudential's share of ESP 132, the Company determined that the fair value of its investment in ESP 132 immediately prior to the acquisition of Prudential's share was $8,119 , and the Company recorded a gain of $4,651 as a result of remeasuring to fair value its existing equity interest in ESP 132. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations. The fair value of the stores purchased was recorded at $161,072 . (3) On September 16, 2016, the Company acquired 23 stores from its ESS PRISA II LLC joint venture ("PRISA II") in a step acquisition. The Company owned 4.4% of PRISA II, with the other 95.6% owned by affiliates of Prudential. PRISA II created a new subsidiary, Extra Space Properties 131 LLC ("ESP 131"), and transferred 23 stores into ESP 131. PRISA II then distributed ESP 131 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $4,326 . Immediately after the distribution, the Company acquired Prudential's 95.6% interest in ESP 131 for $238,679 , resulting in 100% ownership of ESP 131 and the related 23 stores. Based on the purchase price of Prudential's share of ESP 131, the Company determined that the fair value of its investment in ESP 131 immediately prior to the acquisition of Prudential's share was $10,988 , and the Company recorded a gain of $6,778 as a result of re-measuring to fair value its existing equity interest in ESP 131. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners' interests on the Company's consolidated statements of operations. The fair value of the stores purchased was recorded at $248,530 . Subsequent to these transactions, PRISA II owned 42 stores. The Company sold its 4.4% interest in PRISA II to Prudential immediately following these transactions, as disclosed in Note 5. (4) On February 2, 2016, the Company acquired six stores from its VRS Self Storage LLC joint venture (“VRS”) in a step acquisition. The Company owns 45.0% of VRS, with the other 55.0% owned by affiliates of Prudential. VRS created a new subsidiary, Extra Space Properties 122 LLC (“ESP 122”) and transferred six stores into ESP 122. VRS then distributed ESP 122 to the Company and Prudential on a pro rata basis. This distribution was accounted for as a spinoff, and was therefore recorded at the net carrying amount of the properties of $17,261 . Immediately after the distribution, the Company acquired Prudential’s 55.0% interest in ESP 122 for $53,940 , resulting in 100% ownership of ESP 122 and the related six stores. Based on the purchase price of Prudential’s share of ESP 122, the Company determined that the fair value of its investment in ESP 122 immediately prior to the acquisition of Prudential’s share was $44,184 , and the Company recorded a gain of $26,923 as a result of re-measuring to fair value its existing equity interest in ESP 122. This gain is included in equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of joint venture partners’ interests on the Company’s consolidated statements of operations. The fair value of the stores purchased was recorded at $98,082 . |
Investments in Unconsolidated35
Investments in Unconsolidated Real Estate Ventures - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Real Estate Ventures | Investments in unconsolidated real estate ventures consist of the following: Number of Properties Equity Excess Profit December 31, 2017 2016 VRS Self Storage, LLC ("VRS") 16 45% 54% $ 19,467 $ 20,433 Storage Portfolio I LLC ("SP I") 24 25% 40% 11,495 11,782 Storage Portfolio II JV LLC ("SP II'") 36 10% 30% (3,140 ) — PRISA Self Storage LLC ("PRISA") 85 4% 4% 9,638 10,152 Extra Space West Two LLC ("ESW II") 5 5% 40% 3,939 4,048 WCOT Self Storage LLC ("WCOT") 16 5% 20% (357 ) 160 Extra Space West One LLC ("ESW") 7 5% 40% (900 ) (546 ) Extra Space Northern Properties Six LLC ("ESNPS") 10 10% 35% (1,279 ) (905 ) Other minority owned stores 15 10-50% 19-50% 31,228 34,446 214 $ 70,091 $ 79,570 |
Equity Method Investments | Information about these real estate ventures is summarized as follows: Number of new unconsolidated joint ventures Number of Stores Equity ownership % Total initial investment Year ended December 31, 2017 4 39 10.0% - 25.0% $ 13,341 Year ended December 31, 2016 8 8 20.0% - 50.0% $ 26,387 Year ended December 31, 2015 1 1 50% $ 2,885 |
Schedule of Equity in Earnings of Unconsolidated Real Estate Ventures | Equity in earnings of unconsolidated real estate ventures consists of the following: For the Year Ended December 31, 2017 2016 2015 Equity in earnings of VRS $ 3,562 $ 2,919 $ 4,041 Equity in earnings of SP I 2,684 2,380 1,951 Equity in earnings of SP II 33 — — Equity in earnings of PRISA 2,430 1,912 1,013 Equity in earnings of ESW II 1,210 174 145 Equity in earnings of WCOT 1,033 614 569 Equity in earnings of ESW 2,502 2,269 1,875 Equity in earnings of ESNPS 918 823 633 Equity in earnings of other minority owned stores 959 1,804 2,124 $ 15,331 $ 12,895 $ 12,351 |
Notes Payable and Revolving L36
Notes Payable and Revolving Lines of Credit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Notes Payable | The components of notes payable are summarized as follows: Notes Payable December 31, 2017 December 31, 2016 Fixed Rate Variable Rate Basis Rate (2) Maturity Dates Secured fixed rate notes payable (1) $ 2,095,495 $ 2,297,968 2.6% - 6.1% September 2018 - February 2030 Secured variable rate notes payable (1) 717,979 642,970 3.0% - 3.4% LIBOR plus 1.4% - 1.8% September 2018 - December 2024 Unsecured fixed rate notes payable 600,000 — 3.1% - 4.0% October 2021 - August 2027 Unsecured variable rate notes payable 350,000 300,000 2.8% - 3.2% LIBOR plus 1.3% - 1.7% October 2021 - October 2023 Total 3,763,474 3,240,938 Less: unamortized debt issuance costs (24,977 ) (27,350 ) Total $ 3,738,497 $ 3,213,588 (1) The loans are collateralized by mortgages on real estate assets and the assignment of rents. (2) 30-day USD LIBOR |
Schedule of Maturities of Notes Payable | The following table summarizes the scheduled maturities of notes payable at December 31, 2017 : 2018 $ 210,085 2019 456,117 2020 930,308 2021 658,146 2022 493,493 Thereafter 1,015,325 $ 3,763,474 |
Schedule of Information on Lines of Credit | The following table presents information on the Company’s lines of credit, the proceeds of which are used to repay debt and for general corporate purposes, for the periods indicated: As of December 31, 2017 Revolving Lines of Credit Amount Drawn Capacity Interest Rate Origination Date Maturity Basis Rate (1) Credit Line 1 (2) $ 19,000 $ 100,000 3.2% 6/4/2010 6/30/2018 LIBOR plus 1.7% Credit Line 2 (3)(4) 75,000 500,000 3.0% 10/14/2016 10/14/2020 LIBOR plus 1.4% $ 94,000 $ 600,000 (1) 30-day USD LIBOR (2) Secured by mortgages on certain real estate assets. One two-year extension available. (3) Unsecured. Two six-month extensions available. (4) Basis Rate as of December 31, 2017. Rate is subject to change based on our consolidated leverage ratio. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Summarizing Terms of Entity's Derivative Financial Instruments | The following table summarizes the terms of the Company’s 29 derivative financial instruments, which have a total combined notional amount of $2,154,799 as of December 31, 2017 : Hedge Product Range of Notional Amounts Strike Effective Dates Maturity Dates Swap Agreements $4,873 - $267,431 1.13% - 3.84% 10/3/2011 - 4/28/2017 9/20/2018 - 2/1/2024 |
Schedule of Balance Sheet Classification and Fair Value of Entity's Derivative Financial Instruments | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the consolidated balance sheets: Asset / Liability Derivatives December 31, 2017 December 31, 2016 Derivatives designated as hedging instruments: Fair Value Other assets $ 38,365 $ 23,844 Other liabilities $ 9 $ 2,447 |
Schedule of Information Relating to Gain (Loss) Recognized on Swap Agreements | The tables below present the effect of the Company’s derivative financial instruments on the consolidated statements of operations for the periods presented. No tax effect has been presented as the derivative instruments are held by the Company: Gain (loss) recognized in OCI For the Year Ended December 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Year Ended December 31, Type 2017 2016 2017 2016 2015 Swap Agreements $ 8,499 $ 6,388 Interest expense $ (8,853 ) $ (18,800 ) $ (12,487 ) |
Notes Payable to Trusts (Tables
Notes Payable to Trusts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Liabilities and Maximum Exposure to Loss Related to Trusts | Following is a tabular comparison of the liabilities the Company has recorded as a result of its involvements with the Trusts to the maximum exposure to loss the Company is subject to related to the Trusts as of December 31, 2017 : Notes payable to Trusts Investment Balance Maximum exposure to loss Difference Trust $ 36,083 $ 1,083 $ 35,000 $ — Trust II 42,269 1,269 41,000 — Trust III 41,238 1,238 40,000 — Total 119,590 3,590 116,000 — Unamortized debt issuance costs (2,146 ) Total notes payable to trusts, net $ 117,444 |
Exchangeable Senior Notes - (Ta
Exchangeable Senior Notes - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Information about Carrying Amount of Equity Component, Principal Amount of Liability Component, Unamortized Discount and Net Carrying Amount for Notes | Information about the carrying amount of the equity component, the principal amount of the liability component, its unamortized discount and its net carrying amount were as follows for the periods indicated: December 31, 2017 December 31, 2016 Carrying amount of equity component - 2013 Notes $ — $ — Carrying amount of equity component - 2015 Notes 22,597 22,597 Carrying amount of equity components $ 22,597 $ 22,597 Principal amount of liability component - 2013 Notes $ 49,259 $ 63,170 Principal amount of liability component - 2015 Notes 575,000 575,000 Unamortized discount - equity component - 2013 Notes (315 ) (1,187 ) Unamortized discount - equity component - 2015 Notes (12,974 ) (17,355 ) Unamortized cash discount - 2013 Notes (74 ) (281 ) Unamortized debt issuance costs (6,620 ) (9,033 ) Net carrying amount of liability components $ 604,276 $ 610,314 |
Summary of Amount of Interest Cost Recognized Relating to Contractual Interest Rate and Amortization of Discount on Liability Component of Notes | The amount of interest cost recognized relating to the contractual interest rate and the amortization of the discount on the liability component for the 2013 Notes and 2015 Notes was as follows for the periods indicated: For the Year Ended December 31, 2017 2016 2015 Contractual interest $ 19,303 $ 19,483 $ 9,939 Amortization of discount 5,103 4,980 3,310 Total interest expense recognized $ 24,406 $ 24,463 $ 13,249 |
Summary of Repurchase of Debt | Information about the repurchases is as follows: For the Year Ended December 31, 2017 2016 2015 Principal amount repurchased $ 13,911 $ 22,194 $ 164,636 Amount allocated to: Extinguishment of liability component $ 13,692 $ 21,363 $ 157,100 Reacquisition of equity component 6,350 13,898 70,112 Total consideration paid for repurchase $ 20,042 $ 35,261 $ 227,212 Exchangeable senior notes repurchased $ 13,911 $ 22,194 $ 164,636 Extinguishment of liability component (13,692 ) (21,363 ) (157,100 ) Discount on exchangeable senior notes (184 ) (788 ) (6,931 ) Related debt issuance costs (35 ) (43 ) (605 ) Gain/(loss) on repurchase $ — $ — $ — |
Other Liabilities - (Tables)
Other Liabilities - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Unpaid Claims Liability | The following table presents information on the portion of the Company’s unpaid claims liability, which is included in other liabilities on the Company's consolidated balance sheets, that relates to tenant insurance for the periods indicated: For the Year Ended December 31, Tenant Reinsurance Claims: 2017 2016 2015 Unpaid claims liability at beginning of year $ 3,896 $ 3,908 $ 3,121 Claims and claim adjustment expense for claims incurred in the current year 11,700 7,250 6,421 Claims and claim adjustment expense (benefit) for claims incurred in the prior years (203 ) 87 — Payments for current year claims (8,895 ) (5,423 ) (4,283 ) Payments for prior year claims (1,331 ) (1,926 ) (1,351 ) Unpaid claims liability at the end of the year $ 5,167 $ 3,896 $ 3,908 |
Related Party and Affiliated 41
Related Party and Affiliated Real Estate Joint Venture Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summarized Information of Management Fee Revenues for Related Party and Affiliated Joint Ventures | Management fee revenues for related party and affiliated real estate joint ventures and other income are summarized as follows: For the Year Ended December 31, Entity Type 2017 2016 2015 PRISA Affiliated real estate joint ventures $ 6,303 $ 6,117 $ 5,809 SP I Affiliated real estate joint ventures 1,450 1,397 1,312 WCOT Affiliated real estate joint ventures 1,159 1,819 1,799 VRS Affiliated real estate joint ventures 1,038 1,053 1,398 ESNPS Affiliated real estate joint ventures 645 620 584 ESW Affiliated real estate joint ventures 590 555 515 ESW II Affiliated real estate joint ventures 502 482 452 PRISA II Affiliated real estate joint ventures — 3,469 4,703 Other Franchisees, third parties and other 27,692 24,330 17,589 $ 39,379 $ 39,842 $ 34,161 |
Summarized Information of Receivables from Related Party and Affiliated Joint Ventures | Receivables from related parties and affiliated real estate joint ventures balances are summarized as follows: December 31, 2017 December 31, 2016 Mortgage notes receivable $ — $ 15,860 Other receivables from stores 2,847 751 $ 2,847 $ 16,611 |
Noncontrolling Interests In Ope
Noncontrolling Interests In Operating Partnership Noncontrolling Interest in Operating Partnership (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | OP Unit activity is summarized as follows for the periods presented: For the Year Ended December 31, 2017 2016 2015 OP Units redeemed for common stock — 23,850 787,850 OP Units redeemed for cash 33,896 6,760 — Cash paid for OP Units redeemed $ 2,510 $ 506 $ — OP Units issued in conjunction with acquisitions 90,228 93,569 2,043,613 Value of OP Units issued in conjunction with acquisitions $ 7,618 $ 7,247 $ 142,399 |
Stock-Based Compensation - (Tab
Stock-Based Compensation - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity is as follows: Options Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value as of December 31, 2017 Outstanding at December 31, 2014 568,727 $ 16.62 Granted 89,575 69.93 Exercised (79,974 ) 18.79 Forfeited (5,699 ) 39.83 Outstanding at December 31, 2015 572,629 $ 24.42 Granted 35,800 85.99 Exercised (97,855 ) 14.75 Forfeited — — Outstanding at December 31, 2016 510,574 $ 30.60 Exercised (38,418 ) 32.94 Outstanding at December 31, 2017 472,156 $ 30.41 3.71 $26,934 Vested and Expected to Vest 468,601 $ 30.05 3.68 $26,897 Ending Exercisable 394,363 $ 21.86 2.96 $25,864 |
Schedule of Weighted Average Assumptions Used to Estimate Fair Value of Granted Stock Options | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: For the Year Ended December 31, 2016 2015 Expected volatility 37.0 % 38.0 % Dividend yield 3.6 % 3.6 % Risk-free interest rate 1.3 % 1.5 % Average expected term (years) 5 5 |
Schedule of Stock Options Outstanding and Exercisable | A summary of stock options outstanding and exercisable as of December 31, 2017 , is as follows: Options Outstanding Options Exercisable Exercise Price Shares Weighted Average Remaining Contractual Life Weighted Average Exercise Price Shares Weighted Average Exercise Price $6.22 - $6.22 157,750 1.13 $ 6.22 157,750 $ 6.22 $11.59 - $12.21 105,480 2.17 12.04 105,480 12.04 $19.6 - $65.36 105,986 5.20 39.89 89,629 36.47 $65.45 - $73.52 67,140 7.47 71.46 32,550 71.65 $85.99 - $85.99 35,800 8.15 85.99 8,954 85.99 $6.22-$85.99 472,156 3.71 $ 30.41 394,363 $ 21.86 |
Summary of Company's Employee and Director Share Grant Activity | A summary of the Company’s employee and director share grant activity is as follows: Restricted Stock Grants Shares Weighted-Average Grant-Date Fair Value Unreleased at December 31, 2014 291,749 $ 37.73 Granted 174,558 69.18 Released (129,808 ) 34.86 Cancelled (18,090 ) 44.54 Unreleased at December 31, 2015 318,409 $ 55.75 Granted 119,931 87.61 Released (128,808 ) 50.05 Cancelled (9,947 ) 67.36 Unreleased at December 31, 2016 299,585 $ 70.57 Granted 95,392 74.49 Released (120,323 ) 63.95 Cancelled (8,179 ) 77.25 Unreleased at December 31, 2017 266,475 $ 74.76 |
Schedule of Nonvested Performance-based Units Activity | A summary of the PSU activity is as follows: Performance-based Stock Units Units Weighted-Average Grant-Date Fair Value Unvested at December 31, 2016 — $ — Granted 30,071 83.84 Unvested at December 31, 2017 30,071 83.84 |
Income Taxes - (Tables)
Income Taxes - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summarized Statement of Components of Income Tax Provision | The income tax provision for the years ended December 31, 2017 , 2016 and 2015 , is comprised of the following components: For the Year Ended December 31, 2017 Federal State Total Current expense $ 5,677 $ 1,662 $ 7,339 Tax credits/true-up (5,573 ) (383 ) (5,956 ) Change in deferred expense 1,700 542 2,242 Total tax expense $ 1,804 $ 1,821 $ 3,625 For the Year Ended December 31, 2016 Federal State Total Current expense $ 14,627 $ 2,368 $ 16,995 Tax credits/true-up (312 ) — (312 ) Change in deferred benefit (369 ) (467 ) (836 ) Total tax expense $ 13,946 $ 1,901 $ 15,847 For the Year Ended December 31, 2015 Federal State Total Current expense $ 3,736 $ 1,640 $ 5,376 Tax credits/true-up 274 — 274 Change in deferred expense (benefit) 7,016 (1,518 ) 5,498 Total tax expense $ 11,026 $ 122 $ 11,148 |
Schedule of Reconciliation of Statutory Income Tax Provisions to the Effective Income Tax Provisions | A reconciliation of the statutory income tax provisions to the effective income tax provisions for the periods indicated is as follows: For the Year Ended December 31, 2017 2016 2015 Expected tax at statutory rate $ 186,274 35.0 % $ 144,708 35.0 % $ 77,151 35.0 % Non-taxable REIT income (170,811 ) (32.1 )% (131,112 ) (31.7 )% (67,084 ) (30.4 )% State and local tax expense - net of federal benefit 2,306 0.4 % 2,399 0.6 % 1,249 0.6 % Change in valuation allowance 159 — % (845 ) (0.2 )% (624 ) (0.3 )% Tax credits/true-up (5,956 ) (1.1 )% (312 ) (0.1 )% 274 0.1 % Remeasurement of deferred balances (8,460 ) (1.6 )% — — % — — % Miscellaneous 113 — % 1,009 0.2 % 182 0.1 % Total provision $ 3,625 0.6 % $ 15,847 3.8 % $ 11,148 5.1 % |
Schedule of Major Sources of Temporary Differences Stated at their Deferred Tax Effects | The major sources of temporary differences stated at their deferred tax effects are as follows: December 31, 2017 December 31, 2016 Deferred tax liabilities: Fixed assets $ (15,271 ) $ (16,488 ) Other (108 ) (201 ) State deferred taxes (2,822 ) (1,242 ) Total deferred tax liabilities (18,201 ) (17,931 ) Deferred tax assets: Captive insurance subsidiary 252 413 Accrued liabilities 873 2,741 Stock compensation 1,287 1,713 Solar credit 43 — Other 57 1,548 SmartStop TRS 219 365 State deferred taxes 7,802 6,078 Total deferred tax assets 10,533 12,858 Valuation allowance (4,924 ) (4,765 ) Net deferred income tax liabilities $ (12,592 ) $ (9,838 ) |
Segment Information - (Tables)
Segment Information - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Business Segments | Financial information for the Company’s business segments is set forth below: Year Ended December 31, 2017 2016 2015 Revenues: Self-storage operations $ 967,229 $ 864,742 $ 676,138 Tenant reinsurance 98,401 87,291 71,971 Total segment revenues $ 1,065,630 $ 952,033 $ 748,109 Operating expenses: Self-storage operations $ 271,974 $ 250,005 $ 203,965 Tenant reinsurance 19,173 15,555 13,033 Total segment operating expenses $ 291,147 $ 265,560 $ 216,998 Net operating income: Self-storage operations $ 695,255 $ 614,737 $ 472,173 Tenant reinsurance 79,228 71,736 58,938 Total segment net operating income $ 774,483 $ 686,473 $ 531,111 Total segment net operating income $ 774,483 $ 686,473 $ 531,111 Other components of net income (loss): Property management fees and other income 39,379 39,842 34,161 General and administrative expense (78,961 ) (81,806 ) (67,758 ) Depreciation and amortization expense (193,296 ) (182,560 ) (133,457 ) Acquisition and other related costs (1) — (12,111 ) (69,401 ) Gain (loss) on real estate transactions, earnout 112,789 8,465 1,501 Interest expense (153,511 ) (133,479 ) (95,682 ) Non-cash interest expense related to the amortization of (5,103 ) (4,980 ) (3,310 ) Interest income 3,801 6,148 3,461 Interest income on note receivable from Preferred Operating 2,935 4,850 4,850 Equity in earnings of unconsolidated real estate ventures 15,331 12,895 12,351 Equity in earnings of unconsolidated real estate ventures - gain — 69,199 2,857 Income tax expense (3,625 ) (15,847 ) (11,148 ) Net income $ 514,222 $ 397,089 $ 209,536 (1) Beginning January 1, 2017, acquisition related costs have been capitalized due to the adoption of ASU 2017-01"Business Combinations (Topic 805): Clarifying the Definition of a Business." |
Commitments and Contingencies -
Commitments and Contingencies - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments Under Non-Cancelable Operating Lease | At December 31, 2017 , future minimum rental payments under these non-cancelable operating leases were as follows (unaudited): Less than 1 year $ 8,015 Year 2 7,521 Year 3 7,566 Year 4 7,448 Year 5 7,147 Thereafter 114,729 $ 152,426 |
Supplementary Quarterly Finan47
Supplementary Quarterly Financial Data (Unaudited) - (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Supplementary Quarterly Financial Data | SUPPLEMENTARY QUARTERLY FINANCIAL DATA (UNAUDITED) For the Three Months Ended March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Revenues $ 263,008 $ 276,003 $ 284,156 $ 281,842 Cost of operations 138,805 139,596 144,275 140,728 Revenues less cost of operations $ 124,203 $ 136,407 $ 139,881 $ 141,114 Net income $ 89,734 $ 94,098 $ 101,075 $ 229,315 Net income attributable to common stockholders $ 82,282 $ 87,006 $ 93,764 $ 215,983 Earnings per common share—basic $ 0.65 $ 0.69 $ 0.74 $ 1.71 Earnings per common share—diluted $ 0.64 $ 0.69 $ 0.74 $ 1.69 For the Three Months Ended March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Revenues $ 229,403 $ 244,273 $ 257,183 $ 261,016 Cost of operations 135,775 133,971 134,459 137,832 Revenues less cost of operations $ 93,628 $ 110,302 $ 122,724 $ 123,184 Net income $ 89,407 $ 90,040 $ 127,226 $ 90,416 Net income attributable to common stockholders $ 82,592 $ 83,044 $ 118,088 $ 82,403 Earnings per common share—basic $ 0.66 $ 0.66 $ 0.94 $ 0.65 Earnings per common share—diluted $ 0.66 $ 0.66 $ 0.93 $ 0.65 |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2017storestate |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of storage facilities in which the entity had equity interests | 1,061 |
Number of stores managed for third parties | 422 |
Number of stores owned and/or managed | 1,483 |
Number of states in which storage facilities are located | state | 39 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Basis of Presentation (Details) - segment | 3 Months Ended | 9 Months Ended |
Dec. 31, 2017 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Number of segments | 2 | 3 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Variable Interest Entities (Details) | Dec. 31, 2017entity |
Accounting Policies [Abstract] | |
Number of nonconsolidated VIEs to which Operating Partnership has notes payable (in number of entities) | 3 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring $ in Thousands | Dec. 31, 2017USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | $ 38,365 |
Other liabilities - Cash Flow Hedge Swap Agreements | 9 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 0 |
Other liabilities - Cash Flow Hedge Swap Agreements | 0 |
Significant Other Observable Inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 38,365 |
Other liabilities - Cash Flow Hedge Swap Agreements | 9 |
Significant Unobservable Inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Other assets - Cash Flow Hedge Swap Agreements | 0 |
Other liabilities - Cash Flow Hedge Swap Agreements | $ 0 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Fair Value Disclosures (Details) | Dec. 31, 2017USD ($) |
Accounting Policies [Abstract] | |
Transfers of assets and liabilities between Level 1 and Level 2 | $ 0 |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Schedule of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred Operating Partnership unit holders | $ 113,683 | $ 125,642 |
Fixed rate notes receivable | 20,942 | 53,450 |
Fixed rate notes payable and notes payable to trusts | 2,774,242 | 2,404,996 |
Exchangeable senior notes | 719,056 | 706,827 |
Carrying Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred Operating Partnership unit holders | 120,230 | 120,230 |
Fixed rate notes receivable | 20,608 | 52,201 |
Fixed rate notes payable and notes payable to trusts | 2,815,085 | 2,417,558 |
Exchangeable senior notes | $ 624,259 | $ 638,170 |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Real Estate Assets (Details) | 12 Months Ended |
Dec. 31, 2017store | |
Property, Plant and Equipment [Line Items] | |
Number of properties whereby leases cannot be classified as ground or building leases | 3 |
Number of properties whereby leases have been assumed at rates lower than the current market rates | 8 |
Buildings, improvements and other intangibles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Buildings, improvements and other intangibles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 39 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Other Assets (Details) - Equipment and fixtures | 12 Months Ended |
Dec. 31, 2017 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun56
Summary of Significant Accounting Policies - Risk Management and Use of Financial Instruments (Details) | 12 Months Ended |
Dec. 31, 2017item | |
Accounting Policies [Abstract] | |
Number of main components of economic risk | 3 |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Revenue and Expense Recognition (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)claim | Dec. 31, 2016claim | Dec. 31, 2015claim | |
Accounting Policies [Abstract] | |||
Minimum amount of insurance coverage | $ 2,000 | ||
Maximum amount of insurance coverage | 10,000 | ||
Average amount of insurance coverage | $ 2,800 | ||
Number of claims made | claim | 5,671 | 4,055 | 3,959 |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Schedule of Unpaid Claims Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tenant Reinsurance Claims: | |||
Unpaid claims liability at beginning of year | $ 3,896 | $ 3,908 | $ 3,121 |
Claims and claim adjustment expense for claims incurred in the current year | 11,700 | 7,250 | 6,421 |
Claims and claim adjustment expense (benefit) for claims incurred in the prior years | (203) | 87 | 0 |
Payments for current year claims | (8,895) | (5,423) | (4,283) |
Payments for prior year claims | (1,331) | (1,926) | (1,351) |
Unpaid claims liability at the end of the year | $ 5,167 | $ 3,896 | $ 3,908 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||
Advertising expense | $ 14,410 | $ 12,867 | $ 10,528 |
Summary of Significant Accoun60
Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | ||
REIT taxable income required to be distributed (as a percent) | 90.00% | |
Percentage of all distributions to stockholders which qualified as a return of capital | 0.00% | |
Unrecognized tax benefits | $ 0 | $ 0 |
Interest or penalties related to uncertain tax provisions | $ 0 | $ 0 |
Summary of Significant Accoun61
Summary of Significant Accounting Policies - Earnings Per Common Share (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 21, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Average share price (in dollars per share) | $ 78.59 | ||||
Exchangeable senior notes | $ 604,276,000 | $ 610,314,000 | |||
Series A Units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Instruments to be settled in cash (at least) | $ 101,700,000 | ||||
Options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 45,286 | 88,552 | 62,254 | ||
2013 Notes | Operating Partnership | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exchangeable senior notes | $ 49,259,000 | $ 63,170,000 | |||
Fixed Rate | 2.375% | 2.375% | |||
Exchange price (in dollars per share) | $ 53.05 | ||||
Shares related to the Notes included in the computation for diluted earnings per share (in shares) | 344,430 | 309,730 | 513,040 | ||
2015 Notes | Operating Partnership | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Exchangeable senior notes | $ 575,000,000 | $ 575,000,000 | |||
Fixed Rate | 3.125% | 3.125% | |||
Exchange price (in dollars per share) | $ 93.80 | ||||
Shares related to the Notes included in the computation for diluted earnings per share (in shares) | 0 |
Summary of Significant Accoun62
Summary of Significant Accounting Policies - Schedule of Antidilutive Shares Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 910,309 | 7,846,519 | 1,179,291 |
Common OP Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 0 | 5,564,631 | 0 |
Series A Units (Variable Only) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 0 | 875,480 | 0 |
Series B Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 533,174 | 499,966 | 579,640 |
Series C Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 377,135 | 353,646 | 410,002 |
Series D Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Equivalent Shares (if converted) (in shares) | 0 | 552,796 | 189,649 |
Summary of Significant Accoun63
Summary of Significant Accounting Policies - Schedule of Computation of Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | |||||||||||
Net income attributable to common stockholders | $ 215,983 | $ 93,764 | $ 87,006 | $ 82,282 | $ 82,403 | $ 118,088 | $ 83,044 | $ 82,592 | $ 479,013 | $ 366,127 | $ 189,474 |
Earnings and dividends allocated to participating securities | (975) | (792) | (601) | ||||||||
Earnings for basic computations | 478,038 | 365,335 | 188,873 | ||||||||
Earnings and dividends allocated to participating securities | 0 | 792 | 0 | ||||||||
Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units | 30,088 | 0 | 14,790 | ||||||||
Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership Units (Series A) | (3,119) | 0 | (5,088) | ||||||||
Net income for diluted computations | $ 505,007 | $ 366,127 | $ 198,575 | ||||||||
Weighted average common shares outstanding: | |||||||||||
Average number of common shares outstanding - basic (in shares) | 125,967,831 | 125,087,554 | 119,816,743 | ||||||||
OP Units (in shares) | 5,590,831 | 0 | 5,451,357 | ||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Unvested restricted stock awards included for treasury stock method (in shares) | 0 | 299,585 | 0 | ||||||||
Shares related to exchangeable senior notes and dilutive stock options (in shares) | 640,068 | 560,937 | 775,289 | ||||||||
Average number of common shares outstanding - diluted (in shares) | 134,155,771 | 125,948,076 | 126,918,869 | ||||||||
Earnings per common share | |||||||||||
Basic (in dollars per share) | $ 1.71 | $ 0.74 | $ 0.69 | $ 0.65 | $ 0.65 | $ 0.94 | $ 0.66 | $ 0.66 | $ 3.79 | $ 2.92 | $ 1.58 |
Diluted (in dollars per share) | $ 1.69 | $ 0.74 | $ 0.69 | $ 0.64 | $ 0.65 | $ 0.93 | $ 0.66 | $ 0.66 | $ 3.76 | $ 2.91 | $ 1.56 |
Series A Units | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Series A&D Units (in shares) | 875,480 | 0 | 875,480 | ||||||||
Series D Units | |||||||||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||
Series A&D Units (in shares) | 1,081,561 | 0 | 0 |
Real Estate Assets - Schedule o
Real Estate Assets - Schedule of Components of Real Estate Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | $ 8,158,741 | $ 7,649,448 | |
Less: accumulated depreciation and amortization | (1,060,060) | (900,861) | |
Net operating real estate assets | 7,098,681 | 6,748,587 | |
Real estate under development/redevelopment | 33,750 | 21,860 | |
Net real estate assets | 7,132,431 | 6,770,447 | $ 5,689,309 |
Real estate assets held for sale included in net real estate assets | 10,276 | 1,970 | |
Land - operating | |||
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | 1,731,915 | 1,664,659 | |
Land - development | |||
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | 13,246 | 26,982 | |
Buildings, improvements and other intangibles | |||
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | 6,286,762 | 5,833,836 | |
Intangible assets - tenant relationships | |||
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | 114,375 | 111,528 | |
Intangible lease rights | |||
Real Estate Properties [Line Items] | |||
Real estate assets, at cost | $ 12,443 | $ 12,443 |
Real Estate Assets - Additional
Real Estate Assets - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)storeland_parcel | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Real Estate [Abstract] | |||
Number of operating stores classified as held for sale | store | 1 | ||
Number of parcels of land classified as held for sale | land_parcel | 1 | ||
Impairment loss | $ 6,100 | ||
Average period that a tenant is expected to utilize the facility | 18 months | ||
Amortization related to the tenant relationships and lease rights | $ 14,349 | $ 21,133 | $ 11,695 |
Real Estate Properties [Line Items] | |||
Intangible assets, accumulated amortization | $ 112,347 | $ 101,120 | |
Minimum | |||
Real Estate Properties [Line Items] | |||
Remaining amortization period | 1 year | ||
Maximum | |||
Real Estate Properties [Line Items] | |||
Remaining amortization period | 44 years |
Property Acquisitions and Dis66
Property Acquisitions and Dispositions - Acquisitions of Operating Stores (Details) | Nov. 17, 2016USD ($)store | Sep. 16, 2016USD ($)store | Feb. 02, 2016USD ($)store | Dec. 31, 2017USD ($)storeshares | Sep. 30, 2017USD ($)storeshares | Jun. 30, 2017USD ($)storeshares | Mar. 31, 2017USD ($)storeshares | Dec. 31, 2016USD ($)storeshares | Sep. 30, 2016USD ($)storeshares | Jun. 30, 2016USD ($)storeshares | Mar. 31, 2016USD ($)storeshares | Dec. 31, 2017USD ($)storeshares | Dec. 31, 2016USD ($)storeshares | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||||||||||||
Number of stores | store | 37 | 4 | 3 | 2 | 27 | 27 | 22 | 23 | 46 | 99 | ||||
Total | $ 535,299,000 | $ 31,966,000 | $ 34,641,000 | $ 25,556,000 | $ 320,564,000 | $ 296,280,000 | $ 244,264,000 | $ 225,537,000 | $ 627,462,000 | $ 1,086,645,000 | ||||
Cash Paid | 502,845,000 | 29,919,000 | 16,608,000 | 25,541,000 | 297,569,000 | 296,345,000 | 176,689,000 | 225,156,000 | 574,913,000 | 995,759,000 | ||||
Loan Assumed | 14,592,000 | 0 | 9,463,000 | 0 | 0 | 0 | 9,723,000 | 0 | 24,055,000 | 9,723,000 | ||||
Non- controlling Interests | (1,812,000) | 0 | 1,827,000 | 0 | 0 | 0 | 0 | 0 | 15,000 | 0 | ||||
Investments in Real Estate Ventures | 12,957,000 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12,957,000 | 0 | ||||
Net Liabilities/ (Assets) Assumed | 1,099,000 | 47,000 | (67,000) | 15,000 | 4,997,000 | (65,000) | 1,615,000 | 381,000 | 1,094,000 | 6,928,000 | ||||
Value of OP Units Issued | $ 5,618,000 | $ 2,000,000 | $ 6,810,000 | $ 0 | $ 17,998,000 | $ 0 | $ 56,237,000 | $ 0 | $ 14,428,000 | $ 74,235,000 | ||||
Number of OP Units Issued (in shares) | shares | 64,708 | 25,520 | 272,400 | 0 | 563,819 | 0 | 2,215,231 | 0 | 362,628 | 2,779,050 | ||||
Real Estate Assets | $ 535,299,000 | $ 31,966,000 | $ 34,641,000 | $ 25,556,000 | $ 328,683,000 | $ 307,268,000 | $ 244,264,000 | $ 269,721,000 | $ 627,462,000 | $ 1,149,936,000 | ||||
Number of acquired stores | store | 7 | |||||||||||||
Gain (loss) on sale of properties | $ 0 | |||||||||||||
Equity method ownership percentage | 25.00% | 25.00% | 50.00% | |||||||||||
ESS PRISA II LLC Joint Venture | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of acquired stores | store | 23 | |||||||||||||
Equity method ownership percentage | 4.40% | |||||||||||||
Number of stores owned | store | 42 | |||||||||||||
Extra Space Properties One Three One LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net carrying amount of properties distributed | $ 4,326,000 | |||||||||||||
Equity Ownership (as a percent) | 100.00% | |||||||||||||
Previous equity interest | $ 10,988,000 | |||||||||||||
Step acquisition, equity interest in acquiree, remeasurement gain | $ 6,778,000 | |||||||||||||
Number of transferred stores | store | 23 | |||||||||||||
VRS | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of acquired stores | store | 6 | |||||||||||||
Equity method ownership percentage | 45.00% | |||||||||||||
Extra Space Properties One Two Two LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Fair value of real estate assets acquired | $ 98,082,000 | |||||||||||||
Number of acquired stores | store | 6 | |||||||||||||
Net carrying amount of properties distributed | $ 17,261,000 | |||||||||||||
Equity Ownership (as a percent) | 100.00% | |||||||||||||
Previous equity interest | $ 44,184,000 | |||||||||||||
Step acquisition, equity interest in acquiree, remeasurement gain | $ 26,923,000 | |||||||||||||
Number of transferred stores | store | 6 | |||||||||||||
ESS WCOT LLC Joint Venture | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Fair value of real estate assets acquired | $ 161,072,000 | |||||||||||||
Number of acquired stores | store | 11 | |||||||||||||
Equity method ownership percentage | 5.00% | |||||||||||||
Additional interest acquired in the venture | 94.96% | |||||||||||||
Net carrying amount of properties distributed | $ 68,814,000 | |||||||||||||
Amount paid to acquire joint venture partners interests | $ 153,304,000 | |||||||||||||
Equity Ownership (as a percent) | 100.00% | |||||||||||||
Previous equity interest | $ 8,119,000 | |||||||||||||
Step acquisition, equity interest in acquiree, remeasurement gain | $ 4,651,000 | |||||||||||||
Prudential Real Estate and Affiliates | ESS PRISA II LLC Joint Venture | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additional interest acquired in the venture | 95.60% | |||||||||||||
Prudential Real Estate and Affiliates | Extra Space Properties One Three One LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additional interest acquired in the venture | 95.60% | |||||||||||||
Amount paid to acquire joint venture partners interests | $ 238,679,000 | |||||||||||||
Prudential Real Estate and Affiliates | VRS | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additional interest acquired in the venture | 55.00% | |||||||||||||
Prudential Real Estate and Affiliates | Extra Space Properties One Two Two LLC | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Additional interest acquired in the venture | 55.00% | |||||||||||||
Amount paid to acquire joint venture partners interests | $ 53,940,000 | |||||||||||||
Various States Properties Sept16, 2016 | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Fair value of real estate assets acquired | $ 248,530,000 |
Property Acquisitions and Dis67
Property Acquisitions and Dispositions - Narrative (Details) shares in Thousands | Nov. 30, 2017USD ($)store | Sep. 13, 2017USD ($) | Jul. 26, 2016USD ($) | Apr. 20, 2016USD ($)store | Apr. 01, 2016USD ($)shares | Dec. 31, 2014USD ($)store | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Nov. 17, 2016 | Dec. 31, 2011USD ($) |
Property Acquisitions [Line Items] | |||||||||||
Equity method ownership percentage | 25.00% | 50.00% | |||||||||
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | $ 312,165,000 | $ 60,813,000 | $ 800,000 | ||||||||
Impairment loss | $ 6,100,000 | ||||||||||
New Jersey and Virginia, 5 Stores Acquired in 2014 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Number of operating stores acquired | store | 5 | ||||||||||
Increase in payments due to sellers | $ 4,284,000 | ||||||||||
Florida, Stores Acquired in 2011 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Amount due to sellers resulting from higher rental income of properties | $ 2,500,000 | $ 133,000 | |||||||||
Gain (loss) on earnout consideration | $ 400,000 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal of New York Land, September 13, 2017 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | $ 19,000,000 | ||||||||||
Impairment loss | $ 3,500,000 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal Of Indiana Store, July 26,2016 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | $ 4,447,000 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal of Indiana Stores, July 26, 2016 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Gain (loss) on disposition of assets | $ 0 | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal of Ohio and Indiana Stores, April 20, 2016 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | $ 17,555,000 | ||||||||||
Gain (loss) on disposition of assets | $ 11,265,000 | ||||||||||
Number of stores sold | store | 36 | 7 | |||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal of 36 Stores Located in Various States | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Proceeds from sale of real estate assets, investments in real estate ventures and other assets | $ 295,000,000 | ||||||||||
Percentage of gain deferred on disposition | 10.00% | ||||||||||
Gain (loss) on disposition of assets | $ 118,776,000 | ||||||||||
Percentage of gain received on disposition | 90.00% | ||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Disposal of Texas Store, April 1, 2016 | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Gain (loss) on disposition of assets | $ 93,000 | ||||||||||
Partner capital units (in shares) | shares | 85 | ||||||||||
Consideration | $ 7,689,000 | ||||||||||
ESS WCOT LLC Joint Venture | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Equity method ownership percentage | 5.00% | ||||||||||
PRISA | |||||||||||
Property Acquisitions [Line Items] | |||||||||||
Equity method ownership percentage | 10.00% |
Investments in Unconsolidated68
Investments in Unconsolidated Real Estate Ventures - Narrative (Details) $ in Thousands | Sep. 16, 2016USD ($)store | Dec. 31, 2017USD ($)store | Dec. 31, 2017USD ($) | Dec. 31, 2016 | Apr. 01, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Equity Method Investments [Line Items] | |||||||
Number of acquired stores | store | 7 | ||||||
Equity method ownership percentage | 25.00% | 25.00% | 50.00% | ||||
Amortization amount of excess purchase price included in equity earnings | $ 27,691 | $ 27,691 | |||||
Amortization period of excess purchase price included in equity earnings | 40 years | ||||||
ESS PRISA II LLC Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Number of acquired stores | store | 23 | ||||||
Ownership percentage sold | 4.42% | ||||||
Amount sold | $ 3,912 | ||||||
Realized gain (loss) on disposal | $ 30,846 | ||||||
Equity method ownership percentage | 4.40% | ||||||
ESS PRISA LLC and ESS PRISA TWO LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Unconsolidated joint ventures excess profit participation percentage forfeited | 17.00% | ||||||
ESS PRISA LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method ownership percentage | 4.00% | 2.00% | |||||
ESS Prisa Two LLC | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method ownership percentage | 4.40% | 2.00% | |||||
Minimum | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method ownership percentage | 10.00% | 10.00% | 20.00% | ||||
Maximum | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method ownership percentage | 50.00% | ||||||
Prudential Real Estate and Affiliates | ESS PRISA II LLC Joint Venture | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Proceeds from sale of equity method investments | $ 34,758 |
Investments in Unconsolidated69
Investments in Unconsolidated Real Estate Ventures - Schedule of Investments in Unconsolidated Real Estate Ventures (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Property | Dec. 31, 2016USD ($) | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 25.00% | 50.00% | |
Investment balance | $ 70,091 | $ 79,570 | |
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 10.00% | 20.00% | |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | ||
PREXR | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 16 | ||
Equity method ownership percentage | 45.00% | ||
Excess profit participation percentage | 54.00% | ||
Investment balance | $ 19,467 | $ 20,433 | |
SP I | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 24 | ||
Equity method ownership percentage | 25.00% | ||
Excess profit participation percentage | 40.00% | ||
Investment balance | $ 11,495 | 11,782 | |
PRISA | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 36 | ||
Equity method ownership percentage | 10.00% | ||
Excess profit participation percentage | 30.00% | ||
Investment balance | $ (3,140) | 0 | |
ESW II | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 85 | ||
Equity method ownership percentage | 4.00% | ||
Excess profit participation percentage | 4.00% | ||
Investment balance | $ 9,638 | 10,152 | |
Clarendon | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 5 | ||
Equity method ownership percentage | 5.00% | ||
Excess profit participation percentage | 40.00% | ||
Investment balance | $ 3,939 | 4,048 | |
PRISA II | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 16 | ||
Equity method ownership percentage | 5.00% | ||
Excess profit participation percentage | 20.00% | ||
Investment balance | $ (357) | 160 | |
ESW | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 7 | ||
Equity method ownership percentage | 5.00% | ||
Excess profit participation percentage | 40.00% | ||
Investment balance | $ (900) | (546) | |
ESNPS | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 10 | ||
Equity method ownership percentage | 10.00% | ||
Excess profit participation percentage | 35.00% | ||
Investment balance | $ (1,279) | (905) | |
Other Minority Owned Properties | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 15 | ||
Investment balance | $ 31,228 | 34,446 | |
Other Minority Owned Properties | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 10.00% | ||
Excess profit participation percentage | 19.00% | ||
Other Minority Owned Properties | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% | ||
Excess profit participation percentage | 50.00% | ||
Total Investment | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Properties | Property | 214 | ||
Investment balance | $ 70,091 | $ 79,570 |
Investments in Unconsolidated70
Investments in Unconsolidated Real Estate Ventures - Equity Method Investments (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)storejoint_venture | Dec. 31, 2016USD ($)storejoint_venture | Dec. 31, 2015USD ($)storejoint_venture | |
Schedule of Equity Method Investments [Line Items] | |||
New unconsolidated joint ventures, number | joint_venture | 4 | 8 | 1 |
Number of operating stores owned | store | 39 | 8 | 1 |
Equity method ownership percentage | 25.00% | 50.00% | |
Initial Investment | $ | $ 13,341 | $ 26,387 | $ 2,885 |
Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 10.00% | 20.00% | |
Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method ownership percentage | 50.00% |
Investments in Unconsolidated71
Investments in Unconsolidated Real Estate Ventures - Schedule of Equity in Earnings of Unconsolidated Real Estate Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | $ 15,331 | $ 12,895 | $ 12,351 |
PREXR | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 3,562 | 2,919 | 4,041 |
SP I | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 2,684 | 2,380 | 1,951 |
PRISA | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 33 | 0 | 0 |
ESW II | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 2,430 | 1,912 | 1,013 |
Clarendon | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 1,210 | 174 | 145 |
ESS PRISA II LLC Joint Venture | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 1,033 | 614 | 569 |
ESW | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 2,502 | 2,269 | 1,875 |
ESNPS | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | 918 | 823 | 633 |
Other Minority Owned Properties | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity in earnings | $ 959 | $ 1,804 | $ 2,124 |
Notes Payable and Revolving L72
Notes Payable and Revolving Lines of Credit - Schedule of Components of Notes Payable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Variable Rate Interest | ||
Notes payable to Trusts | $ 3,763,474 | |
Notes payable, net | 3,738,497 | $ 3,213,588 |
Notes Payable | ||
Fixed Rate Interest | ||
Notes payable at fixed rate of interest | 2,095,495 | 2,297,968 |
Variable Rate Interest | ||
Notes payable at variable rate of interest | 717,979 | 642,970 |
Notes payable to Trusts | 3,763,474 | 3,240,938 |
Unamortized debt issuance costs | (24,977) | (27,350) |
Notes payable, net | $ 3,738,497 | 3,213,588 |
Notes Payable | Minimum | ||
Variable Rate Interest | ||
Fixed Rate | 2.60% | |
Variable Rate | 3.00% | |
Notes Payable | Maximum | ||
Variable Rate Interest | ||
Fixed Rate | 6.10% | |
Variable Rate | 3.40% | |
Notes Payable | LIBOR | Minimum | ||
Variable Rate Interest | ||
Basis spread on variable rate (as a percent) | 1.40% | |
Notes Payable | LIBOR | Maximum | ||
Variable Rate Interest | ||
Basis spread on variable rate (as a percent) | 1.80% | |
Notes Payable | Unsecured Loan With Bank | ||
Fixed Rate Interest | ||
Notes payable at fixed rate of interest | $ 600,000 | 0 |
Variable Rate Interest | ||
Notes payable at variable rate of interest | $ 350,000 | $ 300,000 |
Notes Payable | Unsecured Loan With Bank | Minimum | ||
Variable Rate Interest | ||
Fixed Rate | 3.10% | |
Variable Rate | 2.80% | |
Notes Payable | Unsecured Loan With Bank | Maximum | ||
Variable Rate Interest | ||
Fixed Rate | 4.00% | |
Variable Rate | 3.20% | |
Notes Payable | Unsecured Loan With Bank | LIBOR | Minimum | ||
Variable Rate Interest | ||
Basis spread on variable rate (as a percent) | 1.30% | |
Notes Payable | Unsecured Loan With Bank | LIBOR | Maximum | ||
Variable Rate Interest | ||
Basis spread on variable rate (as a percent) | 1.70% |
Notes Payable and Revolving L73
Notes Payable and Revolving Lines of Credit - Additional Information (Details) | Oct. 14, 2016USD ($)extensionagency | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 600,000,000 | ||
Notes payable to trusts | 3,763,474,000 | ||
Notes Payable | |||
Debt Instrument [Line Items] | |||
Notes payable to trusts | 3,763,474,000 | $ 3,240,938,000 | |
Notes payable subject to recourse | $ 2,545,278,000 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Debt instrument, term | extension | 2 | ||
Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
Number of credit rating agencies | agency | 2 | ||
Credit Agreement | Revolving Credit Facility | Federal Funds Effective Swap Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Credit Agreement | Revolving Credit Facility | Eurodollar | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Credit Agreement | Revolving Credit Facility | Eurodollar | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.35% | ||
Basis spread on variable rate, alternative rating | 0.0085 | ||
Credit Agreement | Revolving Credit Facility | Eurodollar | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 2.50% | ||
Basis spread on variable rate, alternative rating | 0.0245 | ||
Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.35% | ||
Basis spread on variable rate, alternative rating | 0 | ||
Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.50% | ||
Basis spread on variable rate, alternative rating | 0.0145 | ||
Credit Agreement | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,150,000,000 | ||
Increase limit | 1,500,000,000 | ||
Four Year Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 500,000,000 | ||
Five Year Term Loan | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 430,000,000 | ||
Seven Year Term Loan | Line of Credit | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 220,000,000 |
Notes Payable and Revolving L74
Notes Payable and Revolving Lines of Credit - Schedule of Maturities of Notes Payable (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 210,085 |
2,019 | 456,117 |
2,020 | 930,308 |
2,021 | 658,146 |
2,022 | 493,493 |
Thereafter | 1,015,325 |
Total | $ 3,763,474 |
Notes Payable and Revolving L75
Notes Payable and Revolving Lines of Credit - Schedule of Information on Lines of Credit (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Amount Drawn | $ 94,000 | $ 365,000 |
Capacity | 600,000 | |
Credit Line 1 | ||
Debt Instrument [Line Items] | ||
Amount Drawn | 19,000 | |
Capacity | $ 100,000 | |
Interest Rate | 3.20% | |
Origination Date | Jun. 4, 2010 | |
Maturity | Jun. 30, 2018 | |
Credit Line 2 | ||
Debt Instrument [Line Items] | ||
Amount Drawn | $ 75,000 | |
Capacity | $ 500,000 | |
Interest Rate | 3.00% | |
Origination Date | Oct. 14, 2016 | |
Maturity | Oct. 14, 2020 | |
LIBOR | Credit Line 1 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.70% | |
LIBOR | Credit Line 2 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.40% |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | Dec. 31, 2017USD ($)derivative |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives to be reclassified as a decrease to interest expense | $ (4,736) |
Number of derivative financial instruments | derivative | 29 |
Combined notional amount | $ 2,154,799 |
Derivatives - Schedule Summariz
Derivatives - Schedule Summarizing Terms of Entity's Derivative Financial Instruments (Details) | Dec. 31, 2017USD ($) |
Derivative [Line Items] | |
Notional amounts | $ 2,154,799,000 |
Cash Flow Hedging | Swap Agreements | Minimum | |
Derivative [Line Items] | |
Notional amounts | $ 4,873,000 |
Strike rate | 1.13% |
Cash Flow Hedging | Swap Agreements | Maximum | |
Derivative [Line Items] | |
Notional amounts | $ 267,431,000 |
Strike rate | 3.84% |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet Classification and Fair Value of Entity's Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 38,365 | $ 23,844 |
Other liabilities | ||
Derivative [Line Items] | ||
Other liabilities - Cash Flow Hedge Swap Agreements | $ 9 | $ 2,447 |
Derivatives - Schedule of Infor
Derivatives - Schedule of Information Relating to Gain (Loss) Recognized on Swap Agreements (Details) - Swap Agreements - Cash Flow Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in OCI | $ 8,499 | $ 6,388 | |
Gain (loss) reclassified from OCI | $ (8,853) | $ (18,800) | $ (12,487) |
Notes Payable to Trusts - Addit
Notes Payable to Trusts - Additional Information (Details) | 1 Months Ended | 12 Months Ended | 60 Months Ended | 61 Months Ended | ||||
Jul. 31, 2005USD ($)Security | May 31, 2005USD ($)Security | Apr. 30, 2005USD ($)Security | Dec. 31, 2017USD ($) | Jun. 30, 2010 | Jul. 31, 2010 | Dec. 31, 2016USD ($) | Jul. 11, 2011 | |
Variable Interest Entity [Line Items] | ||||||||
Unamortized deferred financing costs, net | $ 2,146,000 | $ 2,269,000 | ||||||
Variable Interest Entity, Not Primary Beneficiary | Trust III | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Proceeds from issuance of securities | $ 41,238,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust III | Preferred Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | 40,000,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust III | Common Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | $ 1,238,000 | |||||||
Number of securities issued (in securities) | Security | 1,238 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust II | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Proceeds from issuance of securities | $ 42,269,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust II | Preferred Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | 41,000,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust II | Common Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | $ 1,269,000 | |||||||
Number of securities issued (in securities) | Security | 1,269 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Proceeds from issuance of securities | $ 36,083,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust | Preferred Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | 35,000,000 | |||||||
Variable Interest Entity, Not Primary Beneficiary | Trust | Common Securities | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Issuance of securities | $ 1,083,000 | |||||||
Number of securities issued (in securities) | Security | 1,083 | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust III | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Interest rate, fixed (as a percent) | 6.91% | |||||||
Interest rate swap, fixed rate of interest | 4.99% | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust III | LIBOR | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Margin added to variable rate (as a percent) | 2.40% | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust II | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Interest rate, fixed (as a percent) | 6.67% | |||||||
Interest rate swap, fixed rate of interest | 4.99% | |||||||
Prepayment premium | $ 0 | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust II | LIBOR | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Margin added to variable rate (as a percent) | 2.40% | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Interest rate swap, fixed rate of interest | 5.14% | |||||||
Prepayment premium | $ 0 | |||||||
Operating Partnership | Variable Interest Entity, Not Primary Beneficiary | Trust | LIBOR | ||||||||
Variable Interest Entity [Line Items] | ||||||||
Margin added to variable rate (as a percent) | 2.30% |
Notes Payable to Trusts - Sched
Notes Payable to Trusts - Schedule of Liabilities and Maximum Exposure to Loss Related to Trusts (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | $ 3,763,474,000 | |
Operating Partnership | ||
Variable Interest Entity [Line Items] | ||
Unamortized debt issuance costs | (6,620,000) | $ (9,033,000) |
Total notes payable to trusts, net | 604,276,000 | $ 610,314,000 |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 3,590,000 | |
Maximum exposure to loss | 116,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Trust | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,083,000 | |
Maximum exposure to loss | 35,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Trust II | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,269,000 | |
Maximum exposure to loss | 41,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Trust III | ||
Variable Interest Entity [Line Items] | ||
Investment Balance | 1,238,000 | |
Maximum exposure to loss | 40,000,000 | |
Difference | 0 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Notes payable to Trusts | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 119,590,000 | |
Unamortized debt issuance costs | (2,146,000) | |
Total notes payable to trusts, net | 117,444,000 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Notes payable to Trusts | Trust | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 36,083,000 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Notes payable to Trusts | Trust II | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | 42,269,000 | |
Variable Interest Entity, Not Primary Beneficiary | Operating Partnership | Notes payable to Trusts | Trust III | ||
Variable Interest Entity [Line Items] | ||
Notes payable to Trusts | $ 41,238,000 |
Exchangeable Senior Notes - Add
Exchangeable Senior Notes - Additional Information (Details) | Jun. 21, 2013USD ($) | Apr. 30, 2016USD ($)shares | Feb. 29, 2016USD ($)shares | Sep. 30, 2015USD ($) | Dec. 31, 2017USD ($)d | Jan. 01, 2018USD ($) | Oct. 31, 2017USD ($) | Aug. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 15, 2015USD ($) |
Common Stock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Converted instrument, shares issued (in shares) | shares | 18,031 | 130,909 | |||||||||
Converted instrument, amount | $ 1,686,000 | $ 11,380,000 | |||||||||
2013 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Notes exchange, threshold percentage | 130.00% | ||||||||||
Notes exchange, threshold trading days | d | 20 | ||||||||||
Notes exchange, threshold consecutive trading days | d | 30 | ||||||||||
Effective rate of interest | 4.00% | ||||||||||
Operating Partnership | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Related debt issuance costs | $ 6,620,000 | $ 9,033,000 | |||||||||
Operating Partnership | 2015 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of notes issued | $ 575,000,000 | ||||||||||
Fixed Rate | 3.125% | 3.125% | |||||||||
Related debt issuance costs | $ 11,992,000 | ||||||||||
Underwriting fee percentage | 2.00% | ||||||||||
Amortization period | 5 years | ||||||||||
Conversion ratio, number of shares per $1,000 principal amount, numerator | 10.66 | ||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest | 100.00% | ||||||||||
Redemption price as percentage of principal amount of notes at request of debt holders and upon occurrence of designated event | 100.00% | ||||||||||
Operating Partnership | 2015 Notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of days of written notice to holders of notes required for redemption | 30 days | ||||||||||
Operating Partnership | 2015 Notes | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of days of written notice to holders of notes required for redemption | 60 days | ||||||||||
Operating Partnership | 2013 Notes | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount of notes issued | $ 250,000,000 | ||||||||||
Fixed Rate | 2.375% | 2.375% | |||||||||
Related debt issuance costs | $ 1,672,000 | $ 35,000 | 43,000 | $ 605,000 | |||||||
Conversion ratio, number of shares per $1,000 principal amount, numerator | 18.85 | ||||||||||
Principal amount used for debt instrument conversion ratio | $ 1,000 | ||||||||||
Redemption price as percentage of principal amount of notes plus accrued and unpaid interest | 100.00% | ||||||||||
Redemption price as percentage of principal amount of notes at request of debt holders and upon occurrence of designated event | 100.00% | ||||||||||
Discount rate (as a percent) | 1.50% | ||||||||||
Unamortized cash discount | $ 3,750,000 | 184,000 | 788,000 | 6,931,000 | |||||||
Amortization period | 5 years | ||||||||||
Principal amount repurchased | 13,911,000 | $ 13,911,000 | 22,194,000 | 164,636,000 | $ 164,636,000 | ||||||
Total consideration paid for repurchase | $ 2,555,000 | $ 19,639,000 | $ 20,042,000 | $ 20,042,000 | $ 35,261,000 | $ 227,212,000 | $ 227,212,000 | ||||
Operating Partnership | 2013 Notes | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Principal amount repurchased | $ 37,704,000 | ||||||||||
Total consideration paid for repurchase | $ 58,465,000 | ||||||||||
Operating Partnership | 2013 Notes | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of days of written notice to holders of notes required for redemption | 30 days | ||||||||||
Operating Partnership | 2013 Notes | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of days of written notice to holders of notes required for redemption | 60 days |
Exchangeable Senior Notes - Car
Exchangeable Senior Notes - Carrying Amount of Equity Component and Principal Amount of Liability Component (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 21, 2013 |
Debt Instrument [Line Items] | |||||
Exchangeable senior notes repurchased | $ 604,276 | $ 610,314 | |||
Operating Partnership | |||||
Debt Instrument [Line Items] | |||||
Carrying amount of equity components | 22,597 | 22,597 | |||
Unamortized debt issuance costs | (6,620) | (9,033) | |||
Net carrying amount of liability components | 604,276 | 610,314 | |||
Operating Partnership | 2013 Notes | |||||
Debt Instrument [Line Items] | |||||
Carrying amount of equity components | 0 | 0 | |||
Exchangeable senior notes repurchased | 49,259 | 63,170 | |||
Unamortized discount - equity components | (315) | (1,187) | |||
Unamortized cash discount | 74 | 281 | |||
Unamortized debt issuance costs | (35) | (43) | $ (605) | $ (1,672) | |
Operating Partnership | 2015 Notes | |||||
Debt Instrument [Line Items] | |||||
Carrying amount of equity components | 22,597 | 22,597 | |||
Exchangeable senior notes repurchased | 575,000 | 575,000 | |||
Unamortized discount - equity components | $ (12,974) | $ (17,355) | |||
Unamortized debt issuance costs | $ (11,992) |
Exchangeable Senior Notes - Int
Exchangeable Senior Notes - Interest Cost Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Contractual interest | $ 19,303 | $ 19,483 | $ 9,939 |
Amortization of discount | 5,103 | 4,980 | 3,310 |
Total interest expense recognized | $ 24,406 | $ 24,463 | $ 13,249 |
Exchangeable Senior Notes - Rep
Exchangeable Senior Notes - Repurchase of Debt (Details) - Operating Partnership - USD ($) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2017 | Aug. 31, 2017 | Apr. 30, 2016 | Feb. 29, 2016 | Sep. 15, 2015 | Jun. 21, 2013 | |
Debt Instrument [Line Items] | |||||||||
Related debt issuance costs | $ (6,620) | $ (9,033) | |||||||
2013 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal amount repurchased | 13,911 | 22,194 | $ 164,636 | $ 13,911 | $ 164,636 | ||||
Extinguishment of liability component | 13,692 | 21,363 | 157,100 | ||||||
Reacquisition of equity component | 6,350 | 13,898 | 70,112 | ||||||
Total consideration paid for repurchase | 20,042 | 35,261 | 227,212 | $ 20,042 | $ 2,555 | $ 19,639 | $ 227,212 | ||
Extinguishment of liability component | (13,692) | (21,363) | (157,100) | ||||||
Discount on exchangeable senior notes | (184) | (788) | (6,931) | $ (3,750) | |||||
Related debt issuance costs | (35) | (43) | (605) | $ (1,672) | |||||
Gain/(loss) on repurchase | $ 0 | $ 0 | $ 0 |
Other Liabilities - (Details)
Other Liabilities - (Details) - claim | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities Disclosure [Abstract] | |||
Number of claims made | 5,671 | 4,055 | 3,959 |
Other Liabilities - Components
Other Liabilities - Components of Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||||
Deferred tax liability | $ 12,592 | $ 9,838 | ||
Unpaid claims liability | 5,167 | 3,896 | $ 3,908 | $ 3,121 |
Other liabilities, Total | $ 81,026 | $ 87,669 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Unpaid Claims Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Unpaid claims liability at beginning of year | $ 3,896 | $ 3,908 | $ 3,121 |
Claims and claim adjustment expense for claims incurred in the current year | 11,700 | 7,250 | 6,421 |
Claims and claim adjustment expense for claims incurred in the prior years | 203 | (87) | 0 |
Payments for current year claims | (8,895) | (5,423) | (4,283) |
Payments for prior year claims | (1,331) | (1,926) | (1,351) |
Unpaid claims liability at the end of the year | $ 5,167 | $ 3,896 | $ 3,908 |
Related Party and Affiliated 89
Related Party and Affiliated Real Estate Joint Venture Transactions - Summarized Information of Management Fee Revenues for Related Party and Affiliated Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | $ 39,379 | $ 39,842 | $ 34,161 |
PRISA | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 6,303 | 6,117 | 5,809 |
SP I | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 1,450 | 1,397 | 1,312 |
WCOT | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 1,159 | 1,819 | 1,799 |
VRS | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 1,038 | 1,053 | 1,398 |
ESNPS | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 645 | 620 | 584 |
ESW | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 590 | 555 | 515 |
ESW II | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 502 | 482 | 452 |
PRISA II | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | 0 | 3,469 | 4,703 |
Other | |||
Related Party Transaction [Line Items] | |||
Management fee revenues and other income | $ 27,692 | $ 24,330 | $ 17,589 |
Related Party and Affiliated 90
Related Party and Affiliated Real Estate Joint Venture Transactions - Summarized Information of Receivables from Related Party and Affiliated Joint Ventures (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Other Related Party Transactions [Line Items] | ||
Receivables from related parties and affiliated real estate joint ventures | $ 2,847 | $ 16,611 |
Mortgage notes receivable | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Receivables from related parties and affiliated real estate joint ventures | 0 | 15,860 |
Other receivables from stores | ||
Schedule of Other Related Party Transactions [Line Items] | ||
Receivables from related parties and affiliated real estate joint ventures | $ 2,847 | $ 751 |
Related Party and Affiliated 91
Related Party and Affiliated Real Estate Joint Venture Transactions - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)line_of_credit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Related Party Transaction Due From To Related Party [Line Items] | |||
Number of three-year revolving lines of credit to joint ventures | line_of_credit | 1 | ||
SpenAero | |||
Related Party Transaction Due From To Related Party [Line Items] | |||
Payments to related party | $ | $ 167 | $ 1,180 | $ 1,163 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | May 06, 2016USD ($)sales_agent | Aug. 28, 2015USD ($)sales_agent | Jun. 22, 2015USD ($)$ / sharesshares | Jul. 31, 2016USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | May 06, 2016USD ($)$ / sharesshares | Dec. 31, 2017USD ($)item$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($) |
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | |||||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||||||
Common stock, shares issued (in shares) | 126,007,091 | 125,881,460 | |||||||
Common stock, shares outstanding (in shares) | 126,007,091 | 125,881,460 | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||
Number of votes, common stockholder rights | item | 1 | ||||||||
Net proceeds from sale of stock | $ | $ 416,611 | $ 0 | $ 123,424 | $ 446,877 | |||||
Public offering price (in dollars per share) | $ / shares | $ 68.15 | ||||||||
Gross proceeds from issuance | $ | $ 431,049 | ||||||||
Underwriting discount and transaction costs | $ | $ 14,438 | ||||||||
“At the market” equity program | |||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||
Aggregate offering price | $ | $ 400,000 | $ 400,000 | |||||||
Number of sales agents | sales_agent | 5 | 5 | |||||||
Common stock sold (in shares) | 550,000 | 410,000 | 831,300 | 0 | |||||
Average sales price (in dollars per share) | $ / shares | $ 92.04 | $ 75.17 | $ 89.66 | ||||||
Net proceeds from sale of stock | $ | $ 50,062 | $ 30,266 | $ 73,360 | ||||||
Available for issuance | $ | $ 349,375 | ||||||||
Public offering | |||||||||
Changes In Equity And Comprehensive Income Line Items [Line Items] | |||||||||
Common stock sold (in shares) | 6,325,000 |
Noncontrolling Interest Repre93
Noncontrolling Interest Represented By Preferred Operating Partnership Units - (Details) | Apr. 18, 2017 | Jun. 15, 2016 | Jun. 25, 2007shares | Dec. 31, 2014USD ($) | Oct. 31, 2014USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2017USD ($)shares | Jun. 30, 2017USD ($)shares | Mar. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Sep. 30, 2016USD ($)shares | Jun. 30, 2016USD ($)shares | Mar. 31, 2016USD ($)shares | Dec. 31, 2017USD ($)shares$ / shares | Dec. 31, 2016USD ($)shares | Jun. 30, 2007USD ($) |
Noncontrolling Interest [Line Items] | ||||||||||||||||
Loan to holders of preferred OP units | $ 120,230,000 | $ 120,230,000 | $ 120,230,000 | $ 120,230,000 | ||||||||||||
Number of OP Units Issued (in shares) | shares | 64,708 | 25,520 | 272,400 | 0 | 563,819 | 0 | 2,215,231 | 0 | 362,628 | 2,779,050 | ||||||
Value of OP Units Issued | $ 5,618,000 | $ 2,000,000 | $ 6,810,000 | $ 0 | $ 17,998,000 | $ 0 | $ 56,237,000 | $ 0 | $ 14,428,000 | $ 74,235,000 | ||||||
Series A Participating Redeemable Preferred Units | Holders Of Series A Preferred Operating Partnership Units | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Loan to holders of preferred OP units | $ 100,000,000 | $ 100,000,000 | ||||||||||||||
Note receivable interest rate (as a percent) | 2.13% | 4.85% | ||||||||||||||
Additional units redeemed | shares | 0 | |||||||||||||||
Series D Redeemable Preferred Units | Operating Partnership | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Number of OP Units Issued (in shares) | shares | 446,420 | 2,687,711 | ||||||||||||||
Value of OP Units Issued | $ 11,161,000 | $ 67,193,000 | ||||||||||||||
Series A Units | Series A Participating Redeemable Preferred Units | Operating Partnership | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Preferred units outstanding (in units) | shares | 875,480 | 875,480 | ||||||||||||||
Fixed priority return on preferred OP units, amount | $ 101,700,000 | $ 101,700,000 | ||||||||||||||
Fixed priority return on preferred OP units, stated return rate (as a percent) | 2.25% | 5.00% | ||||||||||||||
Fixed priority return on preferred OP units, liquidation value | $ 115,000,000 | |||||||||||||||
Series A Units | Series A Participating Redeemable Preferred Units | Holders Of Series A Preferred Operating Partnership Units | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Maximum number of preferred OP units converted prior to the maturity date of the loan (in shares) | shares | 114,500 | |||||||||||||||
Series B Units | Series B Redeemable Preferred Units | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||||||||||
Fixed liquidation value | $ 41,902,000 | $ 41,902,000 | ||||||||||||||
Annual rate of return (as a percent) | 6.00% | |||||||||||||||
Series B Units | Series B Redeemable Preferred Units | Operating Partnership | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Preferred units outstanding (in units) | shares | 1,676,087 | 1,676,087 | ||||||||||||||
Series C Units | Series C Convertible Redeemable Preferred Units | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Loan to holders of preferred OP units | $ 20,230,000 | |||||||||||||||
Note receivable interest rate (as a percent) | 5.00% | |||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 42.1 | $ 42.1 | ||||||||||||||
Fixed liquidation value | $ 29,639,000 | $ 29,639,000 | ||||||||||||||
Quarterly distribution per preferred OP unit payable above quarterly distribution for common OP Unit (in dollars per share) | $ / shares | $ 0.18 | |||||||||||||||
Basis for determining fixed quarterly distribution in year 5, period before fifth anniversary | 12 months | |||||||||||||||
Period from date of issuance after which preferred OP units will become redeemable at the option of the holder | 1 year | |||||||||||||||
Period from date of issuance after which preferred OP units will become convertible into common OP units at the option of the holder | 1 year | |||||||||||||||
Preferred OP units conversion ratio (in units) | shares | 0.9145 | |||||||||||||||
Series C Units | Series C Convertible Redeemable Preferred Units | Operating Partnership | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Preferred units outstanding (in units) | shares | 704,016 | 704,016 | ||||||||||||||
Series D Units | Series D Redeemable Preferred Units | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Liquidation value (in dollars per share) | $ / shares | $ 25 | $ 25 | ||||||||||||||
Fixed liquidation value | $ 92,064,000 | $ 92,064,000 | ||||||||||||||
Series D Units | Series D Redeemable Preferred Units | Minimum | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Annual rate of return (as a percent) | 3.00% | |||||||||||||||
Series D Units | Series D Redeemable Preferred Units | Maximum | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Annual rate of return (as a percent) | 5.00% | |||||||||||||||
Series D Units | Series D Redeemable Preferred Units | Operating Partnership | ||||||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||||||
Preferred units outstanding (in units) | shares | 3,682,521 | 3,682,521 |
Noncontrolling Interests In O94
Noncontrolling Interests In Operating Partnership - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Noncontrolling Interest [Line Items] | |
Period used as a denomination to determine the average closing price of common stock | 10 days |
Basis of exchange, operating partnership units for common stock | one-for-one basis |
Ten day average closing stock price (in dollars per share) | $ / shares | $ 86.77 |
Operating Partnership | |
Noncontrolling Interest [Line Items] | |
Ownership interest held by entity (as a percent) | 90.90% |
Voting interests of third-party owners | 9.10% |
OP units outstanding (in units) | shares | 5,664,370 |
Consideration to be paid on redemption of common OP units | $ | $ 491,497 |
Noncontrolling Interests In O95
Noncontrolling Interests In Operating Partnership - Schedule of OP Unit Activity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Noncontrolling Interest [Abstract] | |||
OP Units redeemed for common stock (in units) | 0 | 23,850 | 787,850 |
OP Units redeemed for cash (in units) | 33,896 | 6,760 | 0 |
Cash paid for OP Units redeemed | $ 2,510 | $ 506 | $ 0 |
OP Units issued in conjunction with acquisitions (in units) | 90,228 | 93,569 | 2,043,613 |
Value of OP Units issued in conjunction with acquisitions | $ 7,618 | $ 7,247 | $ 142,399 |
Other Noncontrolling Interests
Other Noncontrolling Interests (Details) - Other Noncontrolling Interest | Dec. 31, 2017joint_venture |
Noncontrolling Interest [Line Items] | |
Number of consolidated joint ventures | 2 |
Minimum | |
Noncontrolling Interest [Line Items] | |
Noncontrolling interest in operating partnership (as a percent) | 5.00% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance under plans (in shares) | 1,653,855 | ||
Weighted average fair value of stock options granted (in dollars per share) | $ 20.30 | $ 16.89 | |
Options granted (in shares) | 0 | 35,800 | 89,575 |
Weighted average forfeiture rate | 7.40% | ||
Net proceeds from exercise of stock options | $ 1,266 | $ 1,444 | $ 1,542 |
Average expected term | 5 years | 5 years | |
Risk-free interest rate (as a percent) | 1.30% | 1.50% | |
Expected volatility (as a percent) | 37.00% | 38.00% | |
Dividend yield (as a percent) | 3.60% | 3.60% | |
Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period, minimum | 10 years | ||
Compensation expense recorded during the period in general and administrative expense | $ 649 | $ 729 | $ 510 |
Net proceeds from exercise of stock options | 1,265 | 1,444 | 1,542 |
Unrecognized compensation expense | $ 869 | ||
Weighted-average period for recognition of unrecognized compensation expense | 1 year 6 months 22 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Weighted average forfeiture rate | 10.10% | ||
Compensation expense recorded during the period in general and administrative expense | $ 8,072 | $ 7,316 | $ 5,545 |
Unrecognized compensation expense | $ 12,913 | ||
Weighted-average period for recognition of unrecognized compensation expense | 2 years 1 month 21 days | ||
Performance-based Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Compensation expense recorded during the period in general and administrative expense | $ 840 | ||
Unrecognized compensation expense | $ 1,681 | ||
Weighted-average period for recognition of unrecognized compensation expense | 2 years | ||
Share-based Compensation Arrangement By Share-based Payment Award, Component Weight, Percentage | 50.00% | ||
Minimum shares issued for each PSU (in shares) | 0 | ||
Maximum shares issued for each PSU (in shares) | 2 | ||
Average expected term | 2 years 9 months 18 days | ||
Risk-free interest rate (as a percent) | 1.60% | ||
Expected volatility (as a percent) | 21.40% | ||
Dividend yield (as a percent) | 0.00% | ||
Intrinsic value of unvested PSUs | $ 2,630 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock option activity | |||
Balance at the beginning of the period (in shares) | 510,574 | 572,629 | 568,727 |
Granted (in shares) | 0 | 35,800 | 89,575 |
Exercised (in shares) | (38,418) | (97,855) | (79,974) |
Forfeited (in shares) | 0 | (5,699) | |
Balance at the end of the period (in shares) | 472,156 | 510,574 | 572,629 |
Vested and Expected to Vest (in shares) | 468,601 | ||
Exercisable at the end of the period(in shares) | 394,363 | ||
Weighted average exercise price | |||
Balance at the beginning of the period (in dollars per share) | $ 30.60 | $ 24.42 | $ 16.62 |
Granted (in dollars per share) | 85.99 | 69.93 | |
Exercised (in dollars per share) | 32.94 | 14.75 | 18.79 |
Forfeited (in dollars per share) | 0 | 39.83 | |
Balance at the end of the period (in dollars per share) | 30.41 | $ 30.60 | $ 24.42 |
Vested and Expected to Vest (in dollars per share) | 30.05 | ||
Exercisable at the end of the period (in dollars per share) | $ 21.86 | ||
Weighted average remaining contractual life | |||
Outstanding at the beginning of period | 3 years 259 days | ||
Vested and Expected to Vest | 3 years 248 days | ||
Exercisable at the end of period | 2 years 350 days | ||
Aggregate intrinsic value | |||
Outstanding at the end of the period | $ 26,934 | ||
Vested and Expected to Vest at the end of the period | 26,897 | ||
Exercisable at the end of the period | $ 25,864 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Fair Value Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected volatility | 37.00% | 38.00% |
Dividend yield | 3.60% | 3.60% |
Risk-free interest rate | 1.30% | 1.50% |
Average expected term (years) | 5 years | 5 years |
Stock-Based Compensation - S100
Stock-Based Compensation - Summary Stock Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding (in shares) | shares | 472,156 |
Options outstanding, Weighted Average Remaining Contractual Life | 3 years 259 days |
Exercise price range(in dollars per share) | $ 30.41 |
Options exercisable (in shares) | shares | 394,363 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 21.86 |
$6.22 - $6.22 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (in dollars per share) | 6.22 |
Exercise price range, upper limit (in dollars per share) | $ 6.22 |
Options outstanding (in shares) | shares | 157,750 |
Options outstanding, Weighted Average Remaining Contractual Life | 1 year 47 days |
Exercise price range(in dollars per share) | $ 6.22 |
Options exercisable (in shares) | shares | 157,750 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 6.22 |
$11.59 - $12.21 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (in dollars per share) | 11.59 |
Exercise price range, upper limit (in dollars per share) | $ 11.59 |
Options outstanding (in shares) | shares | 105,480 |
Options outstanding, Weighted Average Remaining Contractual Life | 2 years 62 days |
Exercise price range(in dollars per share) | $ 12.04 |
Options exercisable (in shares) | shares | 105,480 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 12.04 |
$19.6 - $65.36 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (in dollars per share) | 12.21 |
Exercise price range, upper limit (in dollars per share) | $ 12.21 |
Options outstanding (in shares) | shares | 105,986 |
Options outstanding, Weighted Average Remaining Contractual Life | 5 years 73 days |
Exercise price range(in dollars per share) | $ 39.89 |
Options exercisable (in shares) | shares | 89,629 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 36.47 |
$65.45 - $73.52 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (in dollars per share) | 19.60 |
Exercise price range, upper limit (in dollars per share) | $ 28.79 |
Options outstanding (in shares) | shares | 67,140 |
Options outstanding, Weighted Average Remaining Contractual Life | 7 years 172 days |
Exercise price range(in dollars per share) | $ 71.46 |
Options exercisable (in shares) | shares | 32,550 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 71.65 |
$85.99 - $85.99 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (in dollars per share) | 38.4 |
Exercise price range, upper limit (in dollars per share) | $ 38.4 |
Options outstanding (in shares) | shares | 35,800 |
Options outstanding, Weighted Average Remaining Contractual Life | 8 years 55 days |
Exercise price range(in dollars per share) | $ 85.99 |
Options exercisable (in shares) | shares | 8,954 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 85.99 |
Stock-Based Compensation - S101
Stock-Based Compensation - Summary of Employee and Director Share Grant Activity (Details) - Restricted Stock - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Stock Grants | |||
Balance at the beginning of the period (in shares) | 299,585 | 318,409 | 291,749 |
Granted (in shares) | 95,392 | 119,931 | 174,558 |
Released (in shares) | (120,323) | (128,808) | (129,808) |
Cancelled (in shares) | (8,179) | (9,947) | (18,090) |
Balance at the end of the period (in shares) | 266,475 | 299,585 | 318,409 |
Weighted-Average Grant-Date Fair | |||
Balance at the beginning of the period (in dollars per share) | $ 70.57 | $ 55.75 | $ 37.73 |
Granted (in dollars per share) | 74.49 | 87.61 | 69.18 |
Released (in dollars per share) | 63.95 | 50.05 | 34.86 |
Cancelled (in dollars per share) | 77.25 | 67.36 | 44.54 |
Balance at the end of the period (in dollars per share) | $ 74.76 | $ 70.57 | $ 55.75 |
Stock-Based Compensation - S102
Stock-Based Compensation - Summary of PSU Activity (Details) - Performance-based Stock Units | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Units | |
Balance at the beginning of the period (in shares) | shares | 0 |
Granted (in shares) | shares | 30,071 |
Balance at the end of the period (in shares) | shares | 30,071 |
Weighted-Average Grant-Date Fair Value | |
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 83.84 |
Balance at the end of the period (in dollars per share) | $ / shares | $ 83.84 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Employee contribution to retirement saving plan as a percentage of annual salary, maximum | 60.00% | ||
Matching contributions made by the entity during the period | $ 2,212 | $ 1,944 | $ 1,680 |
Percentage of company's matching contributions of first 3 percent of employee's compensation | 100.00% | ||
Percentage of employee's compensation that qualifies for 100 percent matching contribution by the company | 3.00% | ||
Maximum percentage of the company's matching contributions of next 2 percent of employee's compensation | 50.00% | ||
Percentage of employee's compensation that qualifies for 50 percent matching contribution by the company | 2.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)subsidiary | |
Income Tax [Line Items] | |
Tax benefit related to remeasurment of deferred tax balance and valuation allowance | $ | $ 8,606 |
Extra Space Management, Inc | |
Income Tax [Line Items] | |
Number of taxable REIT subsidiaries | subsidiary | 1 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal | |||
Current expense, federal | $ 5,677 | $ 14,627 | $ 3,736 |
Tax credit/ true-up, federal | (5,573) | (312) | 274 |
Change in deferred benefit, federal | 1,700 | (369) | 7,016 |
Income tax expense, federal | 1,804 | 13,946 | 11,026 |
State | |||
Current expense, state | 1,662 | 2,368 | 1,640 |
Tax credit/ true-up, state | (383) | 0 | 0 |
Change in deferred benefit, state | 542 | (467) | (1,518) |
Income tax expense, state | 1,821 | 1,901 | 122 |
Current expense, total | 7,339 | 16,995 | 5,376 |
Tax credit/ true-up, total | (5,956) | (312) | 274 |
Change in deferred benefit, total | 2,242 | (836) | 5,498 |
Total provision | $ 3,625 | $ 15,847 | $ 11,148 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Statutory Income Tax Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Expected tax at statutory rate | $ 186,274 | $ 144,708 | $ 77,151 |
Non-taxable REIT income | (170,811) | (131,112) | (67,084) |
State and local tax expense - net of federal benefit | 2,306 | 2,399 | 1,249 |
Change in valuation allowance | 159 | (845) | (624) |
Tax credits/true-up | (5,956) | (312) | 274 |
Remeasurement of deferred balances | (8,460) | 0 | 0 |
Miscellaneous | 113 | 1,009 | 182 |
Total provision | $ 3,625 | $ 15,847 | $ 11,148 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Expected tax at statutory rate | 35.00% | 35.00% | 35.00% |
Non-taxable REIT income | (32.10%) | (31.70%) | (30.40%) |
State and local tax expense - net of federal benefit | 0.40% | 0.60% | 0.60% |
Change in valuation allowance | 0.00% | (0.20%) | (0.30%) |
Tax credits/true-up | (1.10%) | (0.10%) | 0.10% |
Remeasurement of deferred balances | (1.60%) | 0.00% | 0.00% |
Miscellaneous | 0.00% | 0.20% | 0.10% |
Total provision | 0.60% | 3.80% | 5.10% |
Income Taxes - Sources of Tempo
Income Taxes - Sources of Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Fixed assets | $ (15,271) | $ (16,488) |
Other | (108) | (201) |
State deferred taxes | (2,822) | (1,242) |
Total deferred tax liabilities | (18,201) | (17,931) |
Deferred Tax Assets, Gross [Abstract] | ||
Captive insurance subsidiary | 252 | 413 |
Accrued liabilities | 873 | 2,741 |
Stock compensation | 1,287 | 1,713 |
Solar credit | 43 | 0 |
Other | 57 | 1,548 |
SmartStop TRS | 219 | 365 |
State deferred taxes | 7,802 | 6,078 |
Total deferred tax assets | 10,533 | 12,858 |
Valuation allowance | (4,924) | (4,765) |
Net deferred income tax liabilities | $ (12,592) | $ (9,838) |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 2 | 3 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information of Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenues | $ 281,842 | $ 284,156 | $ 276,003 | $ 263,008 | $ 261,016 | $ 257,183 | $ 244,273 | $ 229,403 | $ 1,105,009 | $ 991,875 | $ 782,270 |
Cost of operations | 140,728 | 144,275 | 139,596 | 138,805 | 137,832 | 134,459 | 133,971 | 135,775 | 563,404 | 542,037 | 487,614 |
Total segment net operating income | 141,114 | 139,881 | 136,407 | 124,203 | 123,184 | 122,724 | 110,302 | 93,628 | 541,605 | 449,838 | 294,656 |
General and administrative expense | (78,961) | (81,806) | (67,758) | ||||||||
Gain (loss) on real estate transactions, earnout from prior acquisition and sale of other assets | 112,789 | 8,465 | 1,501 | ||||||||
Interest expense | (153,511) | (133,479) | (95,682) | ||||||||
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (5,103) | (4,980) | (3,310) | ||||||||
Interest income | 3,801 | 6,148 | 3,461 | ||||||||
Interest income on note receivable from Preferred Operating Partnership unit holder | 2,935 | 4,850 | 4,850 | ||||||||
Equity in earnings of unconsolidated real estate ventures | 15,331 | 12,895 | 12,351 | ||||||||
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of partners' interests | 0 | 69,199 | 2,857 | ||||||||
Income tax expense | (3,625) | (15,847) | (11,148) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 229,315 | $ 101,075 | $ 94,098 | $ 89,734 | $ 90,416 | $ 127,226 | $ 90,040 | $ 89,407 | 514,222 | 397,089 | 209,536 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 1,065,630 | 952,033 | 748,109 | ||||||||
Cost of operations | 291,147 | 265,560 | 216,998 | ||||||||
Total segment net operating income | 774,483 | 686,473 | 531,111 | ||||||||
Property management fees and other income | 39,379 | 39,842 | 34,161 | ||||||||
General and administrative expense | (78,961) | (81,806) | (67,758) | ||||||||
Depreciation and amortization expense | (193,296) | (182,560) | (133,457) | ||||||||
Acquisition and other related costs | 0 | (12,111) | (69,401) | ||||||||
Gain (loss) on real estate transactions, earnout from prior acquisition and sale of other assets | 112,789 | 8,465 | 1,501 | ||||||||
Interest expense | (153,511) | (133,479) | (95,682) | ||||||||
Non-cash interest expense related to amortization of discount on equity component of exchangeable senior notes | (5,103) | (4,980) | (3,310) | ||||||||
Interest income | 3,801 | 6,148 | 3,461 | ||||||||
Interest income on note receivable from Preferred Operating Partnership unit holder | 2,935 | 4,850 | 4,850 | ||||||||
Equity in earnings of unconsolidated real estate ventures | 15,331 | 12,895 | 12,351 | ||||||||
Equity in earnings of unconsolidated real estate ventures - gain on sale of real estate assets and purchase of partners' interests | 0 | 69,199 | 2,857 | ||||||||
Income tax expense | (3,625) | (15,847) | (11,148) | ||||||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 514,222 | 397,089 | 209,536 | ||||||||
Operating Segments | Self-storage operations | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 967,229 | 864,742 | 676,138 | ||||||||
Cost of operations | 271,974 | 250,005 | 203,965 | ||||||||
Total segment net operating income | 695,255 | 614,737 | 472,173 | ||||||||
Operating Segments | Tenant reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenues | 98,401 | 87,291 | 71,971 | ||||||||
Cost of operations | 19,173 | 15,555 | 13,033 | ||||||||
Total segment net operating income | $ 79,228 | $ 71,736 | $ 58,938 |
Commitments and Contingencie110
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)storeFacility | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Other Commitments [Line Items] | |||
Number of owned stores that have leases | Facility | 23 | ||
Expense related to ground leases | $ 6,898 | $ 4,578 | $ 3,858 |
Property loss from catastrophe, net | 2,110 | ||
Reinsurance recoverables, case basis | $ 2,250 | ||
Commitment To Acquire Retail Space | |||
Other Commitments [Line Items] | |||
Number of properties to be acquired | store | 14 | ||
Other commitment | $ 190,222 | ||
Commitment To Acquire Retail Space With Joint Venture Partners | |||
Other Commitments [Line Items] | |||
Number of properties to be acquired | store | 17 | ||
Other commitment | $ 88,203 | ||
Commitment To Acquire Retail Space With Joint Venture Partners, Expected To Close Next Fiscal Year | |||
Other Commitments [Line Items] | |||
Number of store acquisitions expected to close | store | 14 | ||
Commitment To Acquire Retail Space With Joint Venture Partners, Expected To Close Year Two | |||
Other Commitments [Line Items] | |||
Number of store acquisitions expected to close | store | 3 | ||
Commitment To Acquire Retail Space, Expected To Close Remainder Of Fiscal Year | |||
Other Commitments [Line Items] | |||
Other commitment | $ 141,294 | ||
Number of store acquisitions expected to close | store | 10 | ||
Commitment To Acquire Retail Space, Expected To Close In Year Two | |||
Other Commitments [Line Items] | |||
Other commitment | $ 38,400 | ||
Number of store acquisitions expected to close | store | 3 | ||
Commitment To Acquire Retail Space, Expected To Close After Year Two | |||
Other Commitments [Line Items] | |||
Other commitment | $ 10,528 | ||
Number of store acquisitions expected to close | store | 1 |
Commitments and Contingencie111
Commitments and Contingencies - Schedule of Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Less than 1 year | $ 8,015 |
Year 2 | 7,521 |
Year 3 | 7,566 |
Year 4 | 7,448 |
Year 5 | 7,147 |
Thereafter | 114,729 |
Total | $ 152,426 |
Supplementary Quarterly Fina112
Supplementary Quarterly Financial Data (Unaudited) - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 281,842 | $ 284,156 | $ 276,003 | $ 263,008 | $ 261,016 | $ 257,183 | $ 244,273 | $ 229,403 | $ 1,105,009 | $ 991,875 | $ 782,270 |
Cost of operations | 140,728 | 144,275 | 139,596 | 138,805 | 137,832 | 134,459 | 133,971 | 135,775 | 563,404 | 542,037 | 487,614 |
Revenues less cost of operations | 141,114 | 139,881 | 136,407 | 124,203 | 123,184 | 122,724 | 110,302 | 93,628 | 541,605 | 449,838 | 294,656 |
Net income | 229,315 | 101,075 | 94,098 | 89,734 | 90,416 | 127,226 | 90,040 | 89,407 | 514,222 | 397,089 | 209,536 |
Net income attributable to common stockholders | $ 215,983 | $ 93,764 | $ 87,006 | $ 82,282 | $ 82,403 | $ 118,088 | $ 83,044 | $ 82,592 | $ 479,013 | $ 366,127 | $ 189,474 |
Earnings per common share-basic (in dollars per share) | $ 1.71 | $ 0.74 | $ 0.69 | $ 0.65 | $ 0.65 | $ 0.94 | $ 0.66 | $ 0.66 | $ 3.79 | $ 2.92 | $ 1.58 |
Earnings per common share-diluted (in dollars per share) | $ 1.69 | $ 0.74 | $ 0.69 | $ 0.64 | $ 0.65 | $ 0.93 | $ 0.66 | $ 0.66 | $ 3.76 | $ 2.91 | $ 1.56 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Thousands | 2 Months Ended | 3 Months Ended | ||
Feb. 28, 2018USD ($)store | Dec. 31, 2017store | Feb. 02, 2018 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||||
Number of acquired stores | 7 | |||
Equity method ownership percentage | 25.00% | 50.00% | ||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of acquired stores | 5 | |||
Real estate asset acquisition, consideration transferred | $ | $ 69,852 | |||
Equity method ownership percentage | 33.98% | |||
Excess profit participation percentage | 49.00% |
Schedule III - Real Estate a114
Schedule III - Real Estate and Accumulated Depreciation - Property Summary (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($) | |
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 847 | |
Debt | $ 2,832,923 | |
Land Intial Cost | 1,749,559 | |
Building and Improvements Intial Cost | 5,897,098 | |
Adjustments and Costs Subsequent to Acquisition | 545,834 | |
Gross carrying amount - Land | 1,745,161 | |
Gross carrying amount - Building and improvements | 6,447,330 | |
Gross carrying amount - Total | 8,192,491 | |
Accumulated Depreciation | 1,060,060 | $ 900,861 |
AL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 5,629 | |
AZ | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 16,873 | |
CA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 194,614 | |
CO | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 14,611 | |
CT | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 6,657 | |
FL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 97,830 | |
GA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 37,953 | |
HI | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 17,887 | |
IL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 28,278 | |
IN | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 7,870 | |
KS | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 916 | |
KY | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 7,675 | |
LA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 3,615 | |
MA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 63,898 | |
MD | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 53,154 | |
MI | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 2,744 | |
MN | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 523 | |
MO | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 6,143 | |
MS | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 1,342 | |
NC | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 5,391 | |
NH | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 2,074 | |
NJ | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 97,042 | |
NM | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 5,103 | |
NV | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 5,834 | |
NY | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 44,859 | |
OH | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | 9,769 | |
OR | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Accumulated Depreciation | $ 5,261 | |
Self Storage Facility | AL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 8 | |
Debt | $ 28,937 | |
Land Intial Cost | 7,690 | |
Building and Improvements Intial Cost | 42,770 | |
Adjustments and Costs Subsequent to Acquisition | 2,749 | |
Gross carrying amount - Land | 7,691 | |
Gross carrying amount - Building and improvements | 45,518 | |
Gross carrying amount - Total | $ 53,209 | |
Self Storage Facility | AZ | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 22 | |
Debt | $ 39,996 | |
Land Intial Cost | 24,250 | |
Building and Improvements Intial Cost | 109,844 | |
Adjustments and Costs Subsequent to Acquisition | 7,614 | |
Gross carrying amount - Land | 24,248 | |
Gross carrying amount - Building and improvements | 117,460 | |
Gross carrying amount - Total | $ 141,708 | |
Self Storage Facility | CA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 145 | |
Debt | $ 669,690 | |
Land Intial Cost | 449,865 | |
Building and Improvements Intial Cost | 1,050,646 | |
Adjustments and Costs Subsequent to Acquisition | 82,601 | |
Gross carrying amount - Land | 450,072 | |
Gross carrying amount - Building and improvements | 1,133,040 | |
Gross carrying amount - Total | $ 1,583,112 | |
Self Storage Facility | CO | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 13 | |
Debt | $ 28,411 | |
Land Intial Cost | 9,785 | |
Building and Improvements Intial Cost | 45,004 | |
Adjustments and Costs Subsequent to Acquisition | 12,959 | |
Gross carrying amount - Land | 9,972 | |
Gross carrying amount - Building and improvements | 57,776 | |
Gross carrying amount - Total | $ 67,748 | |
Self Storage Facility | CT | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 7 | |
Debt | $ 14,364 | |
Land Intial Cost | 9,875 | |
Building and Improvements Intial Cost | 50,966 | |
Adjustments and Costs Subsequent to Acquisition | 3,351 | |
Gross carrying amount - Land | 9,874 | |
Gross carrying amount - Building and improvements | 54,318 | |
Gross carrying amount - Total | $ 64,192 | |
Self Storage Facility | FL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 82 | |
Debt | $ 325,016 | |
Land Intial Cost | 141,187 | |
Building and Improvements Intial Cost | 532,262 | |
Adjustments and Costs Subsequent to Acquisition | 41,778 | |
Gross carrying amount - Land | 142,081 | |
Gross carrying amount - Building and improvements | 573,146 | |
Gross carrying amount - Total | $ 715,227 | |
Self Storage Facility | GA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 55 | |
Debt | $ 124,373 | |
Land Intial Cost | 70,611 | |
Building and Improvements Intial Cost | 334,343 | |
Adjustments and Costs Subsequent to Acquisition | 19,789 | |
Gross carrying amount - Land | 70,602 | |
Gross carrying amount - Building and improvements | 354,141 | |
Gross carrying amount - Total | $ 424,743 | |
Self Storage Facility | HI | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 9 | |
Debt | $ 39,041 | |
Land Intial Cost | 17,663 | |
Building and Improvements Intial Cost | 133,870 | |
Adjustments and Costs Subsequent to Acquisition | 4,703 | |
Gross carrying amount - Land | 17,663 | |
Gross carrying amount - Building and improvements | 138,573 | |
Gross carrying amount - Total | $ 156,236 | |
Self Storage Facility | IL | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 31 | |
Debt | $ 75,753 | |
Land Intial Cost | 44,427 | |
Building and Improvements Intial Cost | 225,423 | |
Adjustments and Costs Subsequent to Acquisition | 19,708 | |
Gross carrying amount - Land | 43,449 | |
Gross carrying amount - Building and improvements | 246,109 | |
Gross carrying amount - Total | $ 289,558 | |
Self Storage Facility | IN | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 15 | |
Debt | $ 16,511 | |
Land Intial Cost | 12,447 | |
Building and Improvements Intial Cost | 58,247 | |
Adjustments and Costs Subsequent to Acquisition | 4,728 | |
Gross carrying amount - Land | 12,447 | |
Gross carrying amount - Building and improvements | 62,975 | |
Gross carrying amount - Total | $ 75,422 | |
Self Storage Facility | KS | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 1 | |
Debt | $ 0 | |
Land Intial Cost | 366 | |
Building and Improvements Intial Cost | 1,897 | |
Adjustments and Costs Subsequent to Acquisition | 491 | |
Gross carrying amount - Land | 366 | |
Gross carrying amount - Building and improvements | 2,388 | |
Gross carrying amount - Total | $ 2,754 | |
Self Storage Facility | KY | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 10 | |
Debt | $ 31,023 | |
Land Intial Cost | 7,914 | |
Building and Improvements Intial Cost | 61,852 | |
Adjustments and Costs Subsequent to Acquisition | 4,099 | |
Gross carrying amount - Land | 7,914 | |
Gross carrying amount - Building and improvements | 65,951 | |
Gross carrying amount - Total | $ 73,865 | |
Self Storage Facility | LA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 2 | |
Debt | $ 8,731 | |
Land Intial Cost | 6,114 | |
Building and Improvements Intial Cost | 8,541 | |
Adjustments and Costs Subsequent to Acquisition | 1,252 | |
Gross carrying amount - Land | 6,115 | |
Gross carrying amount - Building and improvements | 9,792 | |
Gross carrying amount - Total | $ 15,907 | |
Self Storage Facility | MA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 41 | |
Debt | $ 109,919 | |
Land Intial Cost | 61,040 | |
Building and Improvements Intial Cost | 217,696 | |
Adjustments and Costs Subsequent to Acquisition | 34,110 | |
Gross carrying amount - Land | 61,221 | |
Gross carrying amount - Building and improvements | 251,625 | |
Gross carrying amount - Total | $ 312,846 | |
Self Storage Facility | MD | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 32 | |
Debt | $ 144,812 | |
Land Intial Cost | 99,147 | |
Building and Improvements Intial Cost | 284,253 | |
Adjustments and Costs Subsequent to Acquisition | 12,225 | |
Gross carrying amount - Land | 98,419 | |
Gross carrying amount - Building and improvements | 297,206 | |
Gross carrying amount - Total | $ 395,625 | |
Self Storage Facility | MI | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 6 | |
Debt | $ 2,785 | |
Land Intial Cost | 7,657 | |
Building and Improvements Intial Cost | 38,777 | |
Adjustments and Costs Subsequent to Acquisition | 1,865 | |
Gross carrying amount - Land | 7,657 | |
Gross carrying amount - Building and improvements | 40,642 | |
Gross carrying amount - Total | $ 48,299 | |
Self Storage Facility | MN | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 1 | |
Debt | $ 0 | |
Land Intial Cost | 1,528 | |
Building and Improvements Intial Cost | 16,030 | |
Adjustments and Costs Subsequent to Acquisition | 240 | |
Gross carrying amount - Land | 1,528 | |
Gross carrying amount - Building and improvements | 16,270 | |
Gross carrying amount - Total | $ 17,798 | |
Self Storage Facility | MO | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 5 | |
Debt | $ 14,671 | |
Land Intial Cost | 4,129 | |
Building and Improvements Intial Cost | 15,444 | |
Adjustments and Costs Subsequent to Acquisition | 2,977 | |
Gross carrying amount - Land | 4,086 | |
Gross carrying amount - Building and improvements | 18,464 | |
Gross carrying amount - Total | $ 22,550 | |
Self Storage Facility | MS | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 3 | |
Debt | $ 0 | |
Land Intial Cost | 2,420 | |
Building and Improvements Intial Cost | 20,849 | |
Adjustments and Costs Subsequent to Acquisition | 1,338 | |
Gross carrying amount - Land | 2,420 | |
Gross carrying amount - Building and improvements | 22,187 | |
Gross carrying amount - Total | $ 24,607 | |
Self Storage Facility | NC | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 16 | |
Debt | $ 30,490 | |
Land Intial Cost | 28,298 | |
Building and Improvements Intial Cost | 91,659 | |
Adjustments and Costs Subsequent to Acquisition | 3,300 | |
Gross carrying amount - Land | 28,296 | |
Gross carrying amount - Building and improvements | 94,961 | |
Gross carrying amount - Total | $ 123,257 | |
Self Storage Facility | NH | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 2 | |
Debt | $ 6,109 | |
Land Intial Cost | 754 | |
Building and Improvements Intial Cost | 4,054 | |
Adjustments and Costs Subsequent to Acquisition | 1,011 | |
Gross carrying amount - Land | 817 | |
Gross carrying amount - Building and improvements | 5,002 | |
Gross carrying amount - Total | $ 5,819 | |
Self Storage Facility | NJ | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 55 | |
Debt | $ 206,391 | |
Land Intial Cost | 117,000 | |
Building and Improvements Intial Cost | 490,627 | |
Adjustments and Costs Subsequent to Acquisition | 29,396 | |
Gross carrying amount - Land | 117,447 | |
Gross carrying amount - Building and improvements | 519,576 | |
Gross carrying amount - Total | $ 637,023 | |
Self Storage Facility | NM | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 10 | |
Debt | $ 11,513 | |
Land Intial Cost | 22,889 | |
Building and Improvements Intial Cost | 61,575 | |
Adjustments and Costs Subsequent to Acquisition | 3,521 | |
Gross carrying amount - Land | 22,889 | |
Gross carrying amount - Building and improvements | 65,096 | |
Gross carrying amount - Total | $ 87,985 | |
Self Storage Facility | NV | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 14 | |
Debt | $ 28,990 | |
Land Intial Cost | 15,252 | |
Building and Improvements Intial Cost | 74,376 | |
Adjustments and Costs Subsequent to Acquisition | 3,562 | |
Gross carrying amount - Land | 15,252 | |
Gross carrying amount - Building and improvements | 77,938 | |
Gross carrying amount - Total | $ 93,190 | |
Self Storage Facility | NY | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 22 | |
Debt | $ 117,779 | |
Land Intial Cost | 121,479 | |
Building and Improvements Intial Cost | 232,875 | |
Adjustments and Costs Subsequent to Acquisition | 20,664 | |
Gross carrying amount - Land | 122,215 | |
Gross carrying amount - Building and improvements | 252,803 | |
Gross carrying amount - Total | $ 375,018 | |
Self Storage Facility | OH | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 16 | |
Debt | $ 37,286 | |
Land Intial Cost | 16,677 | |
Building and Improvements Intial Cost | 40,923 | |
Adjustments and Costs Subsequent to Acquisition | 5,295 | |
Gross carrying amount - Land | 16,676 | |
Gross carrying amount - Building and improvements | 46,219 | |
Gross carrying amount - Total | $ 62,895 | |
Self Storage Facility | OR | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 6 | |
Debt | $ 31,070 | |
Land Intial Cost | 7,906 | |
Building and Improvements Intial Cost | 39,576 | |
Adjustments and Costs Subsequent to Acquisition | 1,116 | |
Gross carrying amount - Land | 7,906 | |
Gross carrying amount - Building and improvements | 40,692 | |
Gross carrying amount - Total | $ 48,598 | |
Self Storage Facility | PA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 16 | |
Debt | $ 29,140 | |
Land Intial Cost | 22,176 | |
Building and Improvements Intial Cost | 123,544 | |
Adjustments and Costs Subsequent to Acquisition | 8,138 | |
Gross carrying amount - Land | 21,468 | |
Gross carrying amount - Building and improvements | 132,390 | |
Gross carrying amount - Total | 153,858 | |
Accumulated Depreciation | $ 16,058 | |
Self Storage Facility | RI | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 2 | |
Debt | $ 7,852 | |
Land Intial Cost | 3,191 | |
Building and Improvements Intial Cost | 6,926 | |
Adjustments and Costs Subsequent to Acquisition | 946 | |
Gross carrying amount - Land | 3,191 | |
Gross carrying amount - Building and improvements | 7,872 | |
Gross carrying amount - Total | 11,063 | |
Accumulated Depreciation | $ 2,426 | |
Self Storage Facility | SC | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 23 | |
Debt | $ 44,315 | |
Land Intial Cost | 37,075 | |
Building and Improvements Intial Cost | 135,760 | |
Adjustments and Costs Subsequent to Acquisition | 8,265 | |
Gross carrying amount - Land | 37,076 | |
Gross carrying amount - Building and improvements | 144,024 | |
Gross carrying amount - Total | 181,100 | |
Accumulated Depreciation | $ 14,133 | |
Self Storage Facility | TN | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 17 | |
Debt | $ 48,717 | |
Land Intial Cost | 25,938 | |
Building and Improvements Intial Cost | 91,497 | |
Adjustments and Costs Subsequent to Acquisition | 6,246 | |
Gross carrying amount - Land | 25,938 | |
Gross carrying amount - Building and improvements | 97,743 | |
Gross carrying amount - Total | 123,681 | |
Accumulated Depreciation | $ 12,135 | |
Self Storage Facility | TX | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 97 | |
Debt | $ 291,418 | |
Land Intial Cost | 166,643 | |
Building and Improvements Intial Cost | 629,982 | |
Adjustments and Costs Subsequent to Acquisition | 43,395 | |
Gross carrying amount - Land | 166,625 | |
Gross carrying amount - Building and improvements | 673,395 | |
Gross carrying amount - Total | 840,020 | |
Accumulated Depreciation | $ 71,866 | |
Self Storage Facility | UT | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 10 | |
Debt | $ 21,938 | |
Land Intial Cost | 9,008 | |
Building and Improvements Intial Cost | 39,295 | |
Adjustments and Costs Subsequent to Acquisition | 9,636 | |
Gross carrying amount - Land | 9,008 | |
Gross carrying amount - Building and improvements | 48,931 | |
Gross carrying amount - Total | 57,939 | |
Accumulated Depreciation | $ 7,515 | |
Self Storage Facility | VA | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 44 | |
Debt | $ 204,498 | |
Land Intial Cost | 132,362 | |
Building and Improvements Intial Cost | 390,878 | |
Adjustments and Costs Subsequent to Acquisition | 13,872 | |
Gross carrying amount - Land | 132,363 | |
Gross carrying amount - Building and improvements | 404,749 | |
Gross carrying amount - Total | 537,112 | |
Accumulated Depreciation | $ 44,694 | |
Self Storage Facility | DC | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 8 | |
Debt | $ 32,080 | |
Land Intial Cost | 12,528 | |
Building and Improvements Intial Cost | 47,645 | |
Adjustments and Costs Subsequent to Acquisition | 1,791 | |
Gross carrying amount - Land | 12,530 | |
Gross carrying amount - Building and improvements | 49,434 | |
Gross carrying amount - Total | 61,964 | |
Accumulated Depreciation | $ 8,581 | |
Self Storage Facility | DC | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Store Count | store | 1 | |
Debt | $ 9,304 | |
Land Intial Cost | 14,394 | |
Building and Improvements Intial Cost | 18,172 | |
Adjustments and Costs Subsequent to Acquisition | 326 | |
Gross carrying amount - Land | 14,394 | |
Gross carrying amount - Building and improvements | 18,498 | |
Gross carrying amount - Total | 32,892 | |
Accumulated Depreciation | 812 | |
Other Corporate Assets | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Debt | 0 | |
Land Intial Cost | 0 | |
Building and Improvements Intial Cost | 2,202 | |
Adjustments and Costs Subsequent to Acquisition | 97,501 | |
Gross carrying amount - Land | 0 | |
Gross carrying amount - Building and improvements | 99,703 | |
Gross carrying amount - Total | 99,703 | |
Accumulated Depreciation | 25,948 | |
Intangible tenant relationships and lease rights | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Debt | 0 | |
Land Intial Cost | 0 | |
Building and Improvements Intial Cost | 126,819 | |
Adjustments and Costs Subsequent to Acquisition | 0 | |
Gross carrying amount - Land | 0 | |
Gross carrying amount - Building and improvements | 126,819 | |
Gross carrying amount - Total | 126,819 | |
Accumulated Depreciation | 112,347 | |
Construction in Progress/Undeveloped Land | ||
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items] | ||
Debt | 0 | |
Land Intial Cost | 17,874 | |
Building and Improvements Intial Cost | 0 | |
Adjustments and Costs Subsequent to Acquisition | 29,275 | |
Gross carrying amount - Land | 13,245 | |
Gross carrying amount - Building and improvements | 33,904 | |
Gross carrying amount - Total | 47,149 | |
Accumulated Depreciation | $ 0 |
Schedule III - Real Estate a115
Schedule III - Real Estate and Accumulated Depreciation - Activity in Real Estate Facilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Real estate, gross: | |||
Balance at end of year | $ 8,192,491 | ||
Accumulated depreciation: | |||
Balance at beginning of year | 900,861 | ||
Balance at end of year | 1,060,060 | $ 900,861 | |
Net real estate assets: | |||
Net real estate assets | 7,132,431 | 6,770,447 | $ 5,689,309 |
Aggregate cost of real estate for U.S. federal income tax purposes | 6,914,712 | ||
Operating facilities | |||
Real estate, gross: | |||
Balance at beginning of year | 7,649,448 | 6,392,487 | 4,722,162 |
Acquisitions | 628,391 | 1,159,304 | 1,609,608 |
Improvements | 71,090 | 92,480 | 46,696 |
Transfers from construction in progress (to operating facilities) | 19,079 | 26,400 | 19,971 |
Dispositions and other | 209,267 | 21,223 | 5,950 |
Balance at end of year | 8,158,741 | 7,649,448 | 6,392,487 |
Accumulated depreciation: | |||
Balance at beginning of year | 900,861 | 728,087 | 604,336 |
Depreciation expense | 185,903 | 174,906 | 123,751 |
Dispositions and other | 26,704 | 2,132 | 0 |
Balance at end of year | 1,060,060 | 900,861 | 728,087 |
Real estate under development/redevelopment: | |||
Real estate, gross: | |||
Balance at beginning of year | 21,860 | 24,909 | 17,870 |
Current development | 33,484 | 23,404 | 27,010 |
Transfers from construction in progress (to operating facilities) | (19,079) | (26,400) | (19,971) |
Dispositions and other | 2,515 | 53 | 0 |
Balance at end of year | $ 33,750 | $ 21,860 | $ 24,909 |