Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | May 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-32269 | |
Entity Registrant Name | EXTRA SPACE STORAGE INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1076777 | |
Entity Address, Address Line One | 2795 East Cottonwood Parkway, Suite 300 | |
Entity Address, City or Town | Salt Lake City | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84121 | |
City Area Code | 801 | |
Local Phone Number | 365-4600 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | EXR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 134,279,862 | |
Amendment Flag | false | |
Entity Central Index Key | 0001289490 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Real estate assets, net | $ 8,940,724 | $ 8,834,649 |
Real estate assets - operating lease right-of-use assets | 236,961 | 227,949 |
Investments in unconsolidated real estate entities | 475,291 | 457,326 |
Investments in debt securities and notes receivable | 694,107 | 719,187 |
Cash and cash equivalents | 65,978 | 71,126 |
Restricted cash | 6,688 | 5,068 |
Other assets, net | 172,001 | 159,172 |
Total assets | 10,591,750 | 10,474,477 |
Liabilities, Noncontrolling Interests and Equity: | ||
Notes payable, net | 1,293,563 | 1,320,755 |
Unsecured term loans, net | 1,742,459 | 1,741,926 |
Unsecured senior notes, net | 2,756,644 | 2,360,066 |
Revolving lines of credit | 220,000 | 535,000 |
Operating lease liabilities | 242,842 | 233,356 |
Cash distributions in unconsolidated real estate ventures | 64,506 | 63,582 |
Accounts payable and accrued expenses | 136,856 | 142,285 |
Other liabilities | 256,716 | 291,531 |
Total liabilities | 6,713,586 | 6,688,501 |
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, 134,251,076 and 133,922,305 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 1,343 | 1,339 |
Additional paid-in capital | 3,329,608 | 3,285,948 |
Accumulated other comprehensive income (loss) | 6,457 | (42,546) |
Accumulated deficit | (127,193) | (128,245) |
Total Extra Space Storage Inc. stockholders' equity | 3,210,215 | 3,116,496 |
Noncontrolling interest represented by Preferred Operating Partnership units, net | 256,051 | 259,110 |
Noncontrolling interests in Operating Partnership, net and other noncontrolling interests | 411,898 | 410,370 |
Total noncontrolling interests and equity | 3,878,164 | 3,785,976 |
Total liabilities, noncontrolling interests and equity | $ 10,591,750 | $ 10,474,477 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 134,251,076 | 133,922,305 |
Common stock, outstanding (in shares) | 134,251,076 | 133,922,305 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Property rental | $ 379,808 | $ 303,593 |
Tenant reinsurance | 43,797 | 39,619 |
Management fees and other income | 19,957 | 15,645 |
Total revenues | 443,562 | 358,857 |
Expenses: | ||
Property operations | 103,542 | 92,367 |
Tenant reinsurance | 7,042 | 7,161 |
General and administrative | 29,762 | 23,540 |
Depreciation and amortization | 67,906 | 58,599 |
Total expenses | 208,252 | 181,667 |
Gain on real estate transactions | 0 | 63,883 |
Income from operations | 235,310 | 241,073 |
Interest expense | (42,538) | (40,695) |
Interest income | 18,989 | 12,304 |
Income before equity in earnings and dividend income from unconsolidated real estate ventures and income tax expense | 211,761 | 212,682 |
Equity in earnings and dividend income from unconsolidated real estate entities | 9,097 | 6,956 |
Income tax expense | (3,141) | (4,137) |
Net income | 217,717 | 215,501 |
Net income allocated to Preferred Operating Partnership noncontrolling interests | (4,333) | (3,680) |
Net income allocated to Operating Partnership and other noncontrolling interests | (9,805) | (8,823) |
Net income attributable to common stockholders | $ 203,579 | $ 202,998 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.52 | $ 1.54 |
Diluted (in dollars per share) | $ 1.51 | $ 1.53 |
Weighted average number of shares | ||
Basic (in shares) | 134,180,175 | 132,007,556 |
Diluted (in shares) | 141,581,862 | 139,676,548 |
Cash dividends paid per common share (in dollars per share) | $ 1.50 | $ 1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 217,717 | $ 215,501 |
Other comprehensive income: | ||
Change in fair value of interest rate swaps | 51,649 | 23,013 |
Total comprehensive income | 269,366 | 238,514 |
Less: comprehensive income attributable to noncontrolling interests | 16,784 | 13,603 |
Comprehensive income attributable to common stockholders | $ 252,582 | $ 224,911 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Noncontrolling Interests and Equity - USD ($) $ in Thousands | Total | Redemption of Operating Partnership units for stock | Redemption of Operating Partnership units for cash | Redemption of Operating Partnership units for cashSeries B Units | Noncontrolling Interest - Preferred Operating Partnership | Noncontrolling Interest - Preferred Operating PartnershipRedemption of Operating Partnership units for cashSeries B Units | Noncontrolling Interest - Operating Partnership | Noncontrolling Interest - Operating PartnershipRedemption of Operating Partnership units for stock | Noncontrolling Interest - Operating PartnershipRedemption of Operating Partnership units for cash | Noncontrolling Interest - Other | Common Stock | Common StockRedemption of Operating Partnership units for stock | Additional Paid-in Capital | Additional Paid-in CapitalRedemption of Operating Partnership units for stock | Additional Paid-in CapitalRedemption of Operating Partnership units for cash | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balance, beginning of period at Dec. 31, 2020 | $ 2,936,124 | $ 172,052 | $ 215,892 | $ 401 | $ 1,314 | $ 3,000,458 | $ (99,093) | $ (354,900) | |||||||||
Balance, beginning of period (in shares) at Dec. 31, 2020 | 131,357,961 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock upon the exercise of options (in shares) | 56,722 | ||||||||||||||||
Issuance of common stock upon the exercise of options | 4,254 | 4,254 | |||||||||||||||
Issuance of common stock in connection with share based compensation (in shares) | 89,793 | ||||||||||||||||
Issuance of common stock in connection with share based compensation | 3,652 | 3,652 | |||||||||||||||
Restricted stock grants cancelled (in shares) | (2,499) | ||||||||||||||||
Issuance of common stock, net of offering costs | 273,720 | $ 22 | 273,698 | ||||||||||||||
Issuance of common stock, net of offering costs (in shares) | 2,185,685 | ||||||||||||||||
Redemption of Operating Partnership units | $ 0 | $ (193) | $ 193 | ||||||||||||||
Redemption of Operating Partnership units (in shares) | 5,000 | ||||||||||||||||
Noncontrolling interest in consolidated joint venture | (50) | (50) | |||||||||||||||
Net income (loss) | 215,501 | 3,680 | 8,828 | (5) | 202,998 | ||||||||||||
Other comprehensive income | 23,013 | 144 | 956 | 21,913 | |||||||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (9,025) | (3,224) | (5,801) | ||||||||||||||
Dividends paid on common stock | (132,540) | (132,540) | |||||||||||||||
Balance, end of period at Mar. 31, 2021 | 3,314,649 | 172,652 | 219,682 | 346 | $ 1,336 | 3,282,255 | (77,180) | (284,442) | |||||||||
Balance, end of period (in shares) at Mar. 31, 2021 | 133,692,662 | ||||||||||||||||
Balance, beginning of period at Dec. 31, 2021 | $ 3,785,976 | 259,110 | 410,053 | 317 | $ 1,339 | 3,285,948 | (42,546) | (128,245) | |||||||||
Balance, beginning of period (in shares) at Dec. 31, 2021 | 133,922,305 | 133,922,305 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Issuance of common stock in connection with share based compensation (in shares) | 142,784 | ||||||||||||||||
Issuance of common stock in connection with share based compensation | $ 4,542 | 4,542 | |||||||||||||||
Restricted stock grants cancelled (in shares) | (779) | ||||||||||||||||
Redemption of Operating Partnership units | $ (2,672) | $ (3,375) | $ (3,375) | $ (829) | $ (1,843) | ||||||||||||
Issuance of common stock in conjunction with acquisitions | 40,965 | $ 4 | 40,961 | ||||||||||||||
Issuance of common stock in conjunction with acquisitions (in shares) | 186,766 | ||||||||||||||||
Net income (loss) | 217,717 | 4,333 | 9,805 | 203,579 | |||||||||||||
Other comprehensive income | 51,649 | 313 | 2,333 | 49,003 | |||||||||||||
Distributions to Operating Partnership units held by noncontrolling interests | (14,111) | (4,330) | (9,781) | ||||||||||||||
Dividends paid on common stock | (202,527) | (202,527) | |||||||||||||||
Balance, end of period at Mar. 31, 2022 | $ 3,878,164 | $ 256,051 | $ 411,581 | $ 317 | $ 1,343 | $ 3,329,608 | $ 6,457 | $ (127,193) | |||||||||
Balance, end of period (in shares) at Mar. 31, 2022 | 134,251,076 | 134,251,076 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Noncontrolling Interests and Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid on common stock (in dollars per share) | $ 1.50 | $ 1 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 217,717 | $ 215,501 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 67,906 | 58,599 |
Amortization of deferred financing costs | 1,984 | 2,286 |
Non-cash lease expense | 474 | 487 |
Compensation expense related to stock-based awards | 4,542 | 3,652 |
Accrual of interest income added to principal of debt securities and notes receivable | (9,951) | (8,533) |
Gain on real estate transactions | 0 | (63,883) |
Distributions from unconsolidated real estate ventures in excess of earnings | 2,795 | 1,863 |
Changes in operating assets and liabilities: | ||
Other assets | (6,209) | (2,737) |
Accounts payable and accrued expenses | (7,665) | (2,691) |
Other liabilities | 15,872 | (664) |
Net cash provided by operating activities | 287,465 | 203,880 |
Cash flows from investing activities: | ||
Acquisition of real estate assets | (195,805) | (161,752) |
Development and redevelopment of real estate assets | (14,716) | (14,086) |
Proceeds from sale of real estate assets and investments in real estate ventures | 0 | 132,733 |
Investment in unconsolidated real estate entities | (4,321) | (250) |
Return of investment in unconsolidated real estate ventures | 342 | 31,169 |
Issuance and purchase of notes receivable | (134,408) | (25,772) |
Principal payments received from notes receivable | 195,803 | 0 |
Proceeds from sale of notes receivable | 39,718 | 81,250 |
Purchase of equipment and fixtures | (7,985) | (697) |
Net cash provided by (used in) investing activities | (121,372) | 42,595 |
Cash flows from financing activities: | ||
Proceeds from the sale of common stock, net of offering costs | 0 | 273,720 |
Proceeds from notes payable and revolving lines of credit | 889,829 | 1,747,000 |
Principal payments on notes payable and revolving lines of credit | (1,230,924) | (2,193,409) |
Proceeds from issuance of public bonds, net | 400,000 | 0 |
Deferred financing costs | (5,842) | (1,689) |
Net proceeds from exercise of stock options | 0 | 4,254 |
Redemption of Operating Partnership units held by noncontrolling interests | (2,672) | 0 |
Redemption of Preferred B Units for cash | (3,375) | 0 |
Contributions from noncontrolling interests | 0 | 0 |
Dividends paid on common stock | (202,527) | (132,540) |
Distributions to noncontrolling interests | (14,110) | (9,025) |
Net cash used in financing activities | (169,621) | (311,689) |
Net decrease in cash, cash equivalents, and restricted cash | (3,528) | (65,214) |
Cash, cash equivalents, and restricted cash, beginning of the period | 76,194 | 128,009 |
Cash, cash equivalents, and restricted cash, end of the period | 72,666 | 62,795 |
Supplemental schedule of cash flow information | ||
Interest paid | 43,197 | 44,887 |
Income taxes paid | 703 | 1,047 |
Redemption of Operating Partnership units held by noncontrolling interests for common stock | ||
Noncontrolling interests in Operating Partnership | 0 | (4,005) |
Common stock and paid-in capital | 0 | 4,005 |
Acquisition and establishment of operating lease right of use assets and lease liabilities | ||
Real estate assets - operating lease right-of-use assets | 1,440 | 2,369 |
Operating lease liabilities | (1,440) | (2,369) |
Acquisitions of real estate assets | ||
Real estate assets, net | 40,492 | 41,491 |
Value of Operating Partnership and Preferred Operating Partnership units issued | (40,965) | 0 |
Investment in unconsolidated real estate ventures | 747 | 0 |
Net liabilities assumed | (274) | 0 |
Finance lease liability | 0 | (41,491) |
Accrued construction costs and capital expenditures | ||
Acquisition of real estate assets | 2,236 | 1,723 |
Accounts payable and accrued expenses | (2,236) | (1,723) |
Redemption of Preferred Operating Partnership units for common stock | ||
Preferred Operating Partnership units | 0 | (2,724) |
Additional paid-in capital | 0 | 2,724 |
Establishment of finance lease assets and lease liabilities | ||
Real estate assets, net | 0 | 40,993 |
Other liabilities | 0 | (40,993) |
Investment in unconsolidated real estate ventures received on sale of stores to joint venture | ||
Investment in unconsolidated real estate ventures | 0 | 33,878 |
Real estate assets | $ 0 | $ (33,878) |
Organization
Organization | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | ORGANIZATION 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 self-storage properties ("stores") 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 March 31, 2022, the Company had direct and indirect equity interests in 1,283 stores. In addition, the Company managed 847 stores for third parties, bringing the total number of stores which it owns and/or manages to 2,130. These stores are located in 41 states and Washington, D.C. The Company also offers tenant reinsurance at its owned and managed stores that insures the value of goods in the storage units. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, " Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance that provides transition relief for reference rate reform, including optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions that reference LIBOR or a reference rate that is expected to be discontinued as a result of reference rate reform if certain criteria are met. ASU 2020-04 is effective upon issuance, and the provisions generally can be applied prospectively as of January 1, 2020 through December 31, 2024. The Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. The Company also elected to apply additional expedients related to contract modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes are made to applicable debt and derivative contracts. Application of these expedients preserves the presentation of derivatives and debt contracts consistent with past presentation. In January 2021, the FASB issued ASU 2021-01, " Reference Rate Reform (Topic 848): Scope ", which refines the scope of Topic 848 and clarifies some of its guidance. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
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 FASB’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 the Company and its counterparties. However, as of March 31, 2022, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative positions and determined that the credit valuation adjustments were not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety were 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 March 31, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description 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 $ — $ 13,981 $ — Other liabilities - Cash flow hedge swap agreements $ — $ 2,189 $ — The Company did not have any significant assets or liabilities that are re-measured on a recurring basis using significant unobservable inputs as of March 31, 2022 or December 31, 2021. 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. 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 an impairment loss on the assets held for sale. The operations of assets held for sale or sold during the period is presented as part of normal operations for all periods presented. As of March 31, 2022, the Company had two operating stores classified as held for sale which are included in real estate assets, net. 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 annually 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. In connection with the Company’s acquisition of stores, the purchase price is allocated to the tangible and intangible assets and liabilities 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 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 an acquisition is recorded at fair value based on current interest rates compared to contractual rates. Acquisition-related transaction costs are capitalized as part of the purchase price. 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, lines of credit and other liabilities reflected in the condensed consolidated balance sheets at March 31, 2022 and December 31, 2021 approximate fair value. Restricted cash is comprised of funds deposited with financial institutions located throughout the United States primarily relating to earnest money deposits on potential acquisitions. The fair values of the Company’s notes receivable from Preferred and Common Operating Partnership unit holders and other fixed rate notes receivable were based on the discounted estimated future cash flows 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 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 values of the Company’s fixed-rate assets and liabilities were as follows for the periods indicated: March 31, 2022 December 31, 2021 Fair Carrying Fair Carrying Notes receivable from Preferred and Common Operating Partnership unit holders $ 98,054 $ 101,900 $ 101,824 $ 101,900 Fixed rate notes receivable $ 1,248 $ 1,251 $ 105,954 $ 104,251 Fixed rate debt $ 4,780,095 $ 4,860,356 $ 4,643,072 $ 4,506,435 |
Real Estate Assets
Real Estate Assets | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Real Estate Assets | REAL ESTATE ASSETS The components of real estate assets are summarized as follows: March 31, 2022 December 31, 2021 Land $ 2,186,751 $ 2,151,319 Buildings, improvements and other intangibles 8,347,651 8,227,094 Right of use asset - finance lease 114,668 117,718 Intangible assets - tenant relationships 135,535 134,577 Intangible lease rights 12,443 12,443 10,797,048 10,643,151 Less: accumulated depreciation and amortization (1,929,716) (1,867,750) Net operating real estate assets 8,867,332 8,775,401 Real estate under development/redevelopment 73,392 59,248 Real estate assets, net $ 8,940,724 $ 8,834,649 Real estate assets held for sale included in real estate assets, net $ 23,742 $ 8,436 As of March 31, 2022, the Company had two stores classified as held for sale. The estimated fair value less selling costs of these assets is greater than the carrying value of the assets, and therefore no loss has been recorded related to these assets. Assets held for sale are included in the self-storage operations segment of the Company’s segment information. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
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 D Redeemable Preferred Units (“Series D Units” and, together with the Series A Units and Series B Units, the “Preferred OP 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 (i.e. those that reduce earnings per common share) are included. For the three months ended March 31, 2022 and 2021, there were no anti-dilutive options. 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 for the period presented. The average share price for the three months ended March 31, 2022 and 2021 was $198.83 and $121.07, respectively. The following table presents the number of 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 Three Months Ended March 31, 2022 2021 Equivalent Shares (if converted) Equivalent Shares (if converted) Series B Units 182,974 337,839 Series D Units 1,033,222 — 1,216,196 337,839 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. Accordingly, the number of shares included in the computation for diluted earnings per share related to the Series A Units is equal to the number of Series A Units outstanding, with no additional shares included related to the fixed $101,700 amount. The computation of earnings per common share is as follows for the periods presented: For the Three Months Ended March 31, 2022 2021 Net income attributable to common stockholders $ 203,579 $ 202,998 Earnings and dividends allocated to participating securities (286) (312) Earnings for basic computations 203,293 202,686 Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units 11,693 11,894 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) (572) (572) Net income for diluted computations $ 214,414 $ 214,008 Weighted average common shares outstanding: Average number of common shares outstanding - basic 134,180,175 132,007,556 OP Units 6,520,781 5,800,729 Series A Units 875,480 875,480 Series D Units — 969,374 Shares related to dilutive stock options 5,426 23,409 Average number of common shares outstanding - diluted 141,581,862 139,676,548 Earnings per common share Basic $ 1.52 $ 1.54 Diluted $ 1.51 $ 1.53 |
Store Acquisitions
Store Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Store Acquisitions | STORE ACQUISITIONS Store Acquisitions The following table shows the Company’s acquisitions of stores for the three months ended March 31, 2022 and 2021. The table excludes purchases of raw land and improvements made to existing assets. All acquisitions are considered asset acquisitions under ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ." Consideration Paid Total Quarter Number of Stores Cash Paid Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of OP Units Issued Real estate assets Q1 2022 14 $ 185,910 $ 747 $ 274 $ 40,965 $ 227,896 Q1 2021 9 148,940 — 2,944 — 151,884 |
Investments in Unconsolidated R
Investments in Unconsolidated Real Estate Entities | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Real Estate Entities | INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES Investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's interest in preferred stock of SmartStop Self Storage REIT, Inc. ("SmartStop") and the Company's noncontrolling interest in real estate joint ventures that own stores. The Company accounts for its investment in SmartStop preferred stock, which does not have a readily determinable fair value, at the transaction price less impairment, if any. The Company accounts for its investments in joint ventures using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for cash contributions, distributions and net equity in income or loss, which is allocated in accordance with the provisions of the applicable partnership or joint venture agreement. 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 or 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 or profits than its equity interest. The Company separately reports investments with net equity less than zero in cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company's investment in and share of income from these joint ventures. This is generally the result of financing distributions, capital events or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization while distributions do not. Net investments in unconsolidated real estate ventures and cash distributions in unconsolidated real estate ventures consist of the following: Number of Stores Equity Ownership % Excess Profit % (1) March 31, December 31, 2022 2021 PRISA Self Storage LLC 85 4% 4% $ 8,746 $ 8,792 Storage Portfolio II JV LLC 36 10% 30% (6,336) (6,116) Storage Portfolio IV JV LLC 29 10% 30% 44,156 40,174 Storage Portfolio I LLC 24 34% 49% (40,447) (40,168) PR II EXR JV LLC 18 25% 25% 70,131 70,403 ESS-CA TIVS JV LP 16 55% 60% 32,582 32,288 VRS Self Storage, LLC 16 45% 54% (14,619) (14,269) ESS-NYFL JV LP 11 16% 24% 11,746 11,796 Extra Space Northern Properties Six LLC 10 10% 35% (3,104) (3,029) Alan Jathoo JV LLC 9 10% 10% 7,556 7,621 ESS Bristol Investments LLC 8 10% 30% 2,204 2,628 PR EXR Self Storage, LLC 5 25% 40% 59,172 59,393 Storage Portfolio III JV LLC 5 10% 30% 5,562 5,596 Other minority owned stores 16 20-50% 20-50% 33,436 18,635 SmartStop Self Storage REIT, Inc. Preferred Stock (2) n/a n/a n/a 200,000 200,000 Net Investments in and Cash distributions in unconsolidated real estate entities 288 $ 410,785 $ 393,744 (1) Includes pro-rata equity ownership share and maximum potential promoted interest. (2) The Company invested in shares of convertible preferred stock of SmartStop. The dividend rate for the preferred shares is 6.25% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations. During the three months ended March 31, 2022, the Company contributed a total of $4,321 of cash to its joint ventures, including its pro-rata portion of the purchase price of two operating stores. |
Investments in Debt Securities
Investments in Debt Securities and Notes Receivable | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt Securities and Notes Receivable | INVESTMENTS IN DEBT SECURITIES AND NOTES RECEIVABLE Investments in debt securities and notes receivable consists of the Company's investment in mandatorily redeemable preferred stock of Jernigan Capital, Inc. ("JCAP") in connection with JCAP's acquisition by affiliates of NexPoint Advisors, L.P. ("NexPoint Investment") and receivables due to the Company under its bridge loan program. Information about these balances is as follows: March 31, 2022 December 31, 2021 Debt securities - NexPoint Series A Preferred Stock $ 200,000 $ 200,000 Debt securities - NexPoint Series B Preferred Stock 100,000 100,000 Notes Receivable-Bridge Loans 348,185 279,042 Notes Receivable-Senior Mezzanine Loan, net — 102,079 Dividends Receivable 45,922 38,066 $ 694,107 $ 719,187 In November 2020, the Company invested $300,000 in the preferred stock of JCAP in connection with the acquisition of JCAP by affiliates of NexPoint Advisors, L.P. This investment consists of 200,000 Series A Preferred Shares valued at a total of $200,000, and 100,000 Series B Preferred Shares valued at a total of $100,000. The JCAP preferred stock is mandatorily redeemable after five years, with two one-year extension options. NexPoint may redeem the Preferred Shares at any time, subject to certain prepayment penalties. The Company accounts for the JCAP preferred stock as a held to maturity debt security at amortized cost. The Series A Preferred Shares and the Series B Preferred Shares have initial dividend rates of 10.0% and 12.0%, respectively. If the investment is not retired after five years, the preferred dividends increase annually. In July 2020, the Company purchased a senior mezzanine note receivable with a principal amount of $103,000. This note receivable bore interest at 5.5%, matured in December 2023 and was collateralized through an equity interest in which it or its subsidiaries wholly own 62 storage facilities. The Company paid cash of $101,142 for the loan receivable and accounted for the discount at amortized cost. The discount was being amortized over the term of the loan receivable. In February 2022, a junior mezzanine lender exercised its right to buy the Company’s position for the full principal balance plus interest due, as a result of which the Company sold this note for a total of $103,315 in cash. The remaining unamortized discount was recognized in the quarter as interest income. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT In May 2021, the Operating Partnership executed its initial public bond issuance by selling $450.0 million principal amount of 2.550% Senior Notes due 2031 (the "Notes Due 2031"). Interest on the Notes Due 2031 is paid semi-annually in arrears on June 1 and December 1 of each year. The Notes Due 2031 will mature on June 1, 2031, and the Operating Partnership may redeem the Notes Due 2031 at its option and sole discretion at any time prior to March 31, 2031 for cash equal to the outstanding principal amount plus the present value of the remaining scheduled interest payments, plus any accrued but unpaid interest. In September 2021, the Operating Partnership executed a public bond issuance by selling $600.0 million principal amount of 2.350% Senior Notes due 2032 (the "Notes Due 2032"). Interest on the Notes Due 2032 is paid semi-annually in arrears on March 15 and September 15 of each year. The Notes Due 2032 will mature on March 15, 2032, and the Operating Partnership may redeem the Notes Due 2032 at its option and sole discretion at any time prior to March 15, 2032 for cash equal to the outstanding principal amount plus the present value of the remaining scheduled interest payments, plus any accrued but unpaid interest. In March 2022, the Operating Partnership executed a public bond issuance by selling $400.0 million principal amount of 3.900% Senior Notes due 2029 (the "Notes Due 2029"). Interest on the Notes Due 2029 is paid semi-annually in arrears on April 1 and October 1 of each year. The Notes Due 2029 will mature on April 1, 2029, and the Operating Partnership may redeem the Notes Due 2029 at its option and sole discretion at any time prior to April 1, 2029 for cash equal to the outstanding principal amount plus the present value of the remaining scheduled interest payments, plus any accrued but unpaid interest. The Operating Partner may redeem the Notes Due 2029, the Notes Due 2031 and/or the Notes Due 2032 in whole at any time or in part from time to time, at the Operating Partnership’s option and sole discretion, at a redemption price equal to the greater of (i) 100% of the principal amount of the notes being redeemed and (ii) a make-whole premium calculated in accordance with the indenture governing the notes, plus, in each case, accrued and unpaid interest thereon to, but not including, the applicable redemption date. Notwithstanding the foregoing, on or after the date three months prior to the maturity date of the applicable notes, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date. Certain events are considered events of default, which may result in the accelerated maturity of the Notes Due 2029, the Notes Due 2031 and/or the Notes Due 2032, including, among other things, a default for 30 days in the payment of any installment of interest under the notes or a default in the payment of the principal amount or redemption price due with respect to the notes, when the same become due and payable. The Notes Due 2029, the Notes Due 2031 and the Notes Due 2032 are unsecured, and are fully and unconditionally guaranteed by the Company, ESS Holdings Business Trust I, and ESS Holdings Business Trust II (the "Guarantors," and together with the Operating Partnership, the "Obligated Group"), on a joint and several basis. The guarantee of the Notes Due 2031 and the Notes Due 2032 will be a senior unsecured obligation of each Guarantor. The Guarantors have no material operations separate from the operation of the Operating Partnership and no material assets, other than their respective investments directly or indirectly in the Operating Partnership, and therefore the assets, liabilities, and results of operations of the Obligated Group are not materially different than those reported in the Company's financial statements. The components of term debt are summarized as follows: Term Debt March 31, 2022 December 31, 2021 Fixed Rate Variable Rate (2) Maturity Dates Secured fixed-rate (1) $ 929,980 $ 930,830 2.46% - 4.50% October 2022 - February 2030 Secured variable-rate (1) 368,038 392,679 1.29% - 1.95% October 2022 - September 2030 Unsecured fixed-rate 3,930,376 3,575,000 1.40% - 4.39% February 2024 - March 2032 Unsecured variable-rate 594,624 550,000 1.40% February 2024 - October 2026 Total 5,823,018 5,448,509 Less: Unamortized debt issuance costs (30,352) (25,762) Total $ 5,792,666 $ 5,422,747 (1) The loans are collateralized by mortgages on real estate assets and the assignment of rents. (2) Basis rate is 30-day USD LIBOR, 30-day SOFR look-forward and SOFR. At March 31, 2022, the terms of the Second Amended and Restated Credit Agreement dated June 22, 2021 (the "Credit Agreement") are as follows: Debt Capacity Maturity Date Revolving Credit Facility $ 1,250,000 June 2025 Tranche 1 Term Loan Facility (1) 400,000 January 2027 Tranche 2 Term Loan Facility (1) 425,000 October 2026 Tranche 3 Term Loan Facility (1) 245,000 January 2025 Tranche 4 Term Loan Facility (1) 255,000 June 2026 Tranche 5 Term Loan Facility (1) 425,000 February 2024 $ 3,000,000 (1) The term loan amounts have been fully drawn as of March 31, 2022. Pursuant to the terms of the Credit Agreement, the Company may request an extension of the term of the revolving credit facility for up to two additional periods of six months each, after satisfying certain conditions. As of March 31, 2022, amounts outstanding under the revolving credit facility bore 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%. Per the Credit Agreement, the applicable Eurodollar rate margin and applicable base rate margin are based on the Company’s achieved debt rating, with the Eurodollar rate margin ranging from 0.7% to 1.6% per annum and the applicable base rate margin ranging from 0.00% to 0.60% per annum. The Credit Agreement is guaranteed by the Company and is not secured by any assets of the Company. The Company's unsecured debt is subject to certain financial covenants. As of March 31, 2022, the Company was in compliance with all of its financial covenants. The following table summarizes the scheduled maturities of term debt, excluding available extensions, at March 31, 2022: 2022 $ 232,486 2023 467,316 2024 425,000 2025 399,531 2026 803,537 Thereafter 3,495,148 $ 5,823,018 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 March 31, 2022 Revolving Lines of Credit Amount Drawn Capacity Interest Rate Maturity Basis Rate (1) Credit Line 1 (2) $ — $ 140,000 1.9% 7/1/2023 LIBOR plus 1.45% Credit Line 2 (3)(4) 220,000 1,250,000 1.3% 6/20/2025 LIBOR plus 0.85% $ 220,000 $ 1,390,000 (1) 30-day USD LIBOR (2) Secured by mortgages on certain real estate assets. No remaining extensions available. (3) Unsecured. Two six (4) Basis Rate as of March 31, 2022. Rate is subject to change based on the Company's investment grade rating. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | DERIVATIVES The Company is exposed to certain risks 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 by using derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposure that arises 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 these objectives, 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 three months ended March 31, 2022 and 2021, such derivatives were used to hedge the variable cash flows associated with existing variable-rate debt. In the coming 12 months, the Company estimates that $5,472 will be reclassified as an increase to interest expense. The Company held 19 derivative financial instruments which had a total combined notional amount of $1,934,369 as of March 31, 2022. 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 condensed consolidated balance sheets: Asset / Liability Derivatives Derivatives designated as hedging instruments: March 31, 2022 December 31, 2021 Other assets $ 13,981 $ 271 Other liabilities $ 2,189 $ 39,569 Effect of Derivative Instruments The table below presents the effect of the Company’s derivative financial instruments on the condensed 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 Three Months Ended March 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Three Months Ended March 31, Type 2022 2021 2022 2021 Swap Agreements $ 42,741 $ 14,176 Interest expense $ (8,912) $ (8,845) 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 March 31, 2022, 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 $1,743. As of March 31, 2022, the Company had not posted any collateral related to these agreements. If the Company had breached any of these provisions as of March 31, 2022, it could have been required to cash settle its obligations under the agreements at their termination value of $1,743, including accrued interest. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITYOn January 7, 2022, the Company issued 186,766 shares of its common stock to acquire two stores for $40,965. On August 9, 2021, the Company filed its $800,000 "at the market" equity program with the Securities and Exchange Commission using a shelf registration statement on Form S-3, and entered into separate equity distribution agreements with ten sales agents. No shares have been sold under the current "at the market" equity program. From January 1, 2021, through August 8, 2021, the Company sold 585,685 shares of common stock under its prior "at the market" equity program resulting in net proceeds of $66,617. On March 23, 2021, the Company sold 1,600,000 shares of its common stock in a registered offering structured as a bought deal at a price of $129.13 per share resulting in net proceeds of $206,572. On October 15, 2020, the Company's board of directors authorized a new share repurchase program allowing for the repurchase of shares with an aggregate value up to $400,000. No shares have been repurchased under the current program. |
Noncontrolling Interest Represe
Noncontrolling Interest Represented by Preferred Operating Partnership Units | 3 Months Ended |
Mar. 31, 2022 | |
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 condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the condensed 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 and (2) the redemption value as of the end of the period in which the determination is made. At March 31, 2022 and December 31, 2021, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company's condensed 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. As of March 31, 2022 and December 31, 2021, noncontrolling interests in Preferred OP Units were presented net of notes receivable from Preferred OP Unit holders of $100,000 as more fully described below. The balances for each of the specific Preferred OP Units as presented in the Statement of Noncontrolling Interests and Equity as of the periods indicated is as follows: March 31, 2022 December 31, 2021 Series A Units $ 15,922 $ 15,606 Series B Units 34,693 38,068 Series D Units 205,436 205,436 $ 256,051 $ 259,110 Series A Participating Redeemable Preferred Units 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. 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 OP Units. The Series A Units are redeemable at the option of the holder, 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, which represents 875,480 Series A Units. On June 25, 2007, the Operating Partnership loaned the holder of the Series A Units $100,000. The loan bears interest at 2.1%. 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. The Series B Units have a liquidation value of $25.00 per unit for a fixed liquidation value of $34,693 which represents 1,387,727 Series B Units. Holders of the Series B Units receive distributions at an annual rate of 6.0%. These distributions are cumulative. The Series B Units became 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. On February 15, 2022, 135,000 Series B Units were redeemed for $3,375 in cash. Series C Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units ranked 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. As of March 31, 2022 and December 31, 2021, there were no outstanding 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 interests of the Operating Partnership with respect to distributions and liquidation. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $205,435, which represents 8,217,422 Series D Units. 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 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 OP Units at the option of the holder until the tenth anniversary of the date of issuance, with the number of 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. The Series D Units have been issued at various times from 2014 to 2021. During the year ended December 31, 2021, the Operating Partnership issued a total of 3,522,937 Series D units valued at $88,073. 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 94.0% ownership interest in the Operating Partnership as of March 31, 2022. The remaining ownership interests in the Operating Partnership (including Preferred OP Units) of 6.0% are held by certain former owners of assets acquired by the Operating Partnership. As of March 31, 2022 and December 31, 2021, the noncontrolling interests in the Operating Partnership are shown on the balance sheet net of a note receivable of $1,900 because a borrower under the note receivable is also a holder of OP Units. This note receivable originated in December 2014, bears interest at 5.0% per annum and matures on December 15, 2024. 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, or shares of the Company's common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement. As of March 31, 2022, the ten-day average closing price of the Company's common stock was $199.65 and there were 6,515,408 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on March 31, 2022 and the Company elected to pay the OP Unit holders cash, the Company would have paid $1,300,801 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Three Months Ended March 31, 2022 2021 OP Units redeemed for common stock — 5,000 OP Units redeemed for cash 13,028 — Cash paid for OP Units redeemed $ 2,672 $ — 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 OP Units and classifies the noncontrolling interest represented by the OP Units as stockholders’ equity in the accompanying condensed 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 condensed 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 and (2) the redemption value as of the end of the period in which the determination is made. Other Noncontrolling Interests Other noncontrolling interests represent the ownership interests of third parties in one consolidated joint ventures as of March 31, 2022. This joint venture owns one property that is under development in Florida. The voting interests of the third-party owners are 10.0%. |
Noncontrolling Interest in Oper
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interest in Operating Partnership and 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 condensed consolidated balance sheets. The Company will periodically evaluate individual noncontrolling interests for the ability to continue to recognize the noncontrolling interest as permanent equity in the condensed 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 and (2) the redemption value as of the end of the period in which the determination is made. At March 31, 2022 and December 31, 2021, the noncontrolling interests represented by the Preferred OP Units qualified for classification as permanent equity on the Company's condensed 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. As of March 31, 2022 and December 31, 2021, noncontrolling interests in Preferred OP Units were presented net of notes receivable from Preferred OP Unit holders of $100,000 as more fully described below. The balances for each of the specific Preferred OP Units as presented in the Statement of Noncontrolling Interests and Equity as of the periods indicated is as follows: March 31, 2022 December 31, 2021 Series A Units $ 15,922 $ 15,606 Series B Units 34,693 38,068 Series D Units 205,436 205,436 $ 256,051 $ 259,110 Series A Participating Redeemable Preferred Units 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. 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 OP Units. The Series A Units are redeemable at the option of the holder, 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, which represents 875,480 Series A Units. On June 25, 2007, the Operating Partnership loaned the holder of the Series A Units $100,000. The loan bears interest at 2.1%. 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. The Series B Units have a liquidation value of $25.00 per unit for a fixed liquidation value of $34,693 which represents 1,387,727 Series B Units. Holders of the Series B Units receive distributions at an annual rate of 6.0%. These distributions are cumulative. The Series B Units became 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. On February 15, 2022, 135,000 Series B Units were redeemed for $3,375 in cash. Series C Redeemable Preferred Units The Partnership Agreement provides for the designation and issuance of the Series C Units. The Series C Units ranked 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. As of March 31, 2022 and December 31, 2021, there were no outstanding 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 interests of the Operating Partnership with respect to distributions and liquidation. The Series D Units have a liquidation value of $25.00 per unit, for a fixed liquidation value of $205,435, which represents 8,217,422 Series D Units. 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 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 OP Units at the option of the holder until the tenth anniversary of the date of issuance, with the number of 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. The Series D Units have been issued at various times from 2014 to 2021. During the year ended December 31, 2021, the Operating Partnership issued a total of 3,522,937 Series D units valued at $88,073. 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 94.0% ownership interest in the Operating Partnership as of March 31, 2022. The remaining ownership interests in the Operating Partnership (including Preferred OP Units) of 6.0% are held by certain former owners of assets acquired by the Operating Partnership. As of March 31, 2022 and December 31, 2021, the noncontrolling interests in the Operating Partnership are shown on the balance sheet net of a note receivable of $1,900 because a borrower under the note receivable is also a holder of OP Units. This note receivable originated in December 2014, bears interest at 5.0% per annum and matures on December 15, 2024. 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, or shares of the Company's common stock on a one-for-one basis, subject to anti-dilution adjustments provided in the Partnership Agreement. As of March 31, 2022, the ten-day average closing price of the Company's common stock was $199.65 and there were 6,515,408 OP Units outstanding. Assuming that all of the OP Unit holders exercised their right to redeem all of their OP Units on March 31, 2022 and the Company elected to pay the OP Unit holders cash, the Company would have paid $1,300,801 in cash consideration to redeem the units. OP Unit activity is summarized as follows for the periods presented: For the Three Months Ended March 31, 2022 2021 OP Units redeemed for common stock — 5,000 OP Units redeemed for cash 13,028 — Cash paid for OP Units redeemed $ 2,672 $ — 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 OP Units and classifies the noncontrolling interest represented by the OP Units as stockholders’ equity in the accompanying condensed 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 condensed 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 and (2) the redemption value as of the end of the period in which the determination is made. Other Noncontrolling Interests Other noncontrolling interests represent the ownership interests of third parties in one consolidated joint ventures as of March 31, 2022. This joint venture owns one property that is under development in Florida. The voting interests of the third-party owners are 10.0%. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
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 the Company's self-storage operations represents total property revenue less direct property operating expenses. NOI for the Company's tenant reinsurance segment represents tenant reinsurance revenues less tenant reinsurance expense. The Company has 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 the Company's real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. Financial information for the Company’s business segments is set forth below: For the Three Months Ended March 31, 2022 2021 Revenues: Self-Storage Operations $ 379,808 $ 303,593 Tenant Reinsurance 43,797 39,619 Total segment revenues $ 423,605 $ 343,212 Operating expenses: Self-Storage Operations $ 103,542 $ 92,367 Tenant Reinsurance 7,042 7,161 Total segment operating expenses $ 110,584 $ 99,528 Net operating income: Self-Storage Operations $ 276,266 $ 211,226 Tenant Reinsurance 36,755 32,458 Total segment net operating income: $ 313,021 $ 243,684 Other components of net income: Management fees and other income $ 19,957 $ 15,645 General and administrative expense (29,762) (23,540) Depreciation and amortization expense (67,906) (58,599) Gain on real estate transactions — 63,883 Interest expense (42,538) (40,695) Interest income 18,989 12,304 Equity in earnings and dividend income from unconsolidated real estate entities 9,097 6,956 Income tax expense (3,141) (4,137) Net income $ 217,717 $ 215,501 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES As of March 31, 2022, the Company was involved in various legal proceedings and was 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. 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 March 31, 2022, the Company was under agreement to acquire 18 stores at a total purchase price of $266,595. Twelve stores are scheduled to close in 2022 and six stores are scheduled to close in 2023. Additionally, the Company is under agreement to acquire four stores with joint venture partners, for a total investment of $13,010. Three stores are scheduled to close in 2022 and one store is scheduled to close in 2023. 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 stores, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to its stores could result in future material environmental liabilities. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of the Company are presented on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information, and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they may not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2022 are not necessarily indicative of results that may be expected for the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the Company’s audited financial statements as of that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. For further information refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued ASU 2020-04, " Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). ASU 2020-04 provides temporary optional guidance that provides transition relief for reference rate reform, including optional expedients and exceptions for applying GAAP to contract modifications, hedging relationships and other transactions that reference LIBOR or a reference rate that is expected to be discontinued as a result of reference rate reform if certain criteria are met. ASU 2020-04 is effective upon issuance, and the provisions generally can be applied prospectively as of January 1, 2020 through December 31, 2024. The Company elected to apply the hedge accounting expedients related to probability and the assessments of effectiveness for future LIBOR-indexed cash flows to assume that the index upon which future hedged transactions will be based matches the index on the corresponding derivatives. The Company also elected to apply additional expedients related to contract modifications, changes in critical terms, and updates to the designated hedged risks as qualifying changes are made to applicable debt and derivative contracts. Application of these expedients preserves the presentation of derivatives and debt contracts consistent with past presentation. In January 2021, the FASB issued ASU 2021-01, " Reference Rate Reform (Topic 848): Scope ", which refines the scope of Topic 848 and clarifies some of its guidance. The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The table below presents the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2022, aggregated by the level in the fair value hierarchy within which those measurements fall. Fair Value Measurements at Reporting Date Using Description 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 $ — $ 13,981 $ — Other liabilities - Cash flow hedge swap agreements $ — $ 2,189 $ — |
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: March 31, 2022 December 31, 2021 Fair Carrying Fair Carrying Notes receivable from Preferred and Common Operating Partnership unit holders $ 98,054 $ 101,900 $ 101,824 $ 101,900 Fixed rate notes receivable $ 1,248 $ 1,251 $ 105,954 $ 104,251 Fixed rate debt $ 4,780,095 $ 4,860,356 $ 4,643,072 $ 4,506,435 |
Real Estate Assets (Tables)
Real Estate Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Components of Real Estate Assets | The components of real estate assets are summarized as follows: March 31, 2022 December 31, 2021 Land $ 2,186,751 $ 2,151,319 Buildings, improvements and other intangibles 8,347,651 8,227,094 Right of use asset - finance lease 114,668 117,718 Intangible assets - tenant relationships 135,535 134,577 Intangible lease rights 12,443 12,443 10,797,048 10,643,151 Less: accumulated depreciation and amortization (1,929,716) (1,867,750) Net operating real estate assets 8,867,332 8,775,401 Real estate under development/redevelopment 73,392 59,248 Real estate assets, net $ 8,940,724 $ 8,834,649 Real estate assets held for sale included in real estate assets, net $ 23,742 $ 8,436 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Antidilutive Shares Excluded from Computation of Earnings Per Share | The following table presents the number of 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 Three Months Ended March 31, 2022 2021 Equivalent Shares (if converted) Equivalent Shares (if converted) Series B Units 182,974 337,839 Series D Units 1,033,222 — 1,216,196 337,839 |
Schedule of Computation of Earnings Per Common Share | The computation of earnings per common share is as follows for the periods presented: For the Three Months Ended March 31, 2022 2021 Net income attributable to common stockholders $ 203,579 $ 202,998 Earnings and dividends allocated to participating securities (286) (312) Earnings for basic computations 203,293 202,686 Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units 11,693 11,894 Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) (572) (572) Net income for diluted computations $ 214,414 $ 214,008 Weighted average common shares outstanding: Average number of common shares outstanding - basic 134,180,175 132,007,556 OP Units 6,520,781 5,800,729 Series A Units 875,480 875,480 Series D Units — 969,374 Shares related to dilutive stock options 5,426 23,409 Average number of common shares outstanding - diluted 141,581,862 139,676,548 Earnings per common share Basic $ 1.52 $ 1.54 Diluted $ 1.51 $ 1.53 |
Store Acquisitions (Tables)
Store Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of Operating Properties Acquired | The following table shows the Company’s acquisitions of stores for the three months ended March 31, 2022 and 2021. The table excludes purchases of raw land and improvements made to existing assets. All acquisitions are considered asset acquisitions under ASU 2017-01, " Business Combinations (Topic 805): Clarifying the Definition of a Business ." Consideration Paid Total Quarter Number of Stores Cash Paid Investments in Real Estate Ventures Net Liabilities/ (Assets) Assumed Value of OP Units Issued Real estate assets Q1 2022 14 $ 185,910 $ 747 $ 274 $ 40,965 $ 227,896 Q1 2021 9 148,940 — 2,944 — 151,884 |
Investments in Unconsolidated_2
Investments in Unconsolidated Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of investments in unconsolidated real estate ventures | Net investments in unconsolidated real estate ventures and cash distributions in unconsolidated real estate ventures consist of the following: Number of Stores Equity Ownership % Excess Profit % (1) March 31, December 31, 2022 2021 PRISA Self Storage LLC 85 4% 4% $ 8,746 $ 8,792 Storage Portfolio II JV LLC 36 10% 30% (6,336) (6,116) Storage Portfolio IV JV LLC 29 10% 30% 44,156 40,174 Storage Portfolio I LLC 24 34% 49% (40,447) (40,168) PR II EXR JV LLC 18 25% 25% 70,131 70,403 ESS-CA TIVS JV LP 16 55% 60% 32,582 32,288 VRS Self Storage, LLC 16 45% 54% (14,619) (14,269) ESS-NYFL JV LP 11 16% 24% 11,746 11,796 Extra Space Northern Properties Six LLC 10 10% 35% (3,104) (3,029) Alan Jathoo JV LLC 9 10% 10% 7,556 7,621 ESS Bristol Investments LLC 8 10% 30% 2,204 2,628 PR EXR Self Storage, LLC 5 25% 40% 59,172 59,393 Storage Portfolio III JV LLC 5 10% 30% 5,562 5,596 Other minority owned stores 16 20-50% 20-50% 33,436 18,635 SmartStop Self Storage REIT, Inc. Preferred Stock (2) n/a n/a n/a 200,000 200,000 Net Investments in and Cash distributions in unconsolidated real estate entities 288 $ 410,785 $ 393,744 (1) Includes pro-rata equity ownership share and maximum potential promoted interest. (2) The Company invested in shares of convertible preferred stock of SmartStop. The dividend rate for the preferred shares is 6.25% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company's condensed consolidated statements of operations. |
Investments in Debt Securitie_2
Investments in Debt Securities and Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt Securities and Bridge Loans Receivable | Information about these balances is as follows: March 31, 2022 December 31, 2021 Debt securities - NexPoint Series A Preferred Stock $ 200,000 $ 200,000 Debt securities - NexPoint Series B Preferred Stock 100,000 100,000 Notes Receivable-Bridge Loans 348,185 279,042 Notes Receivable-Senior Mezzanine Loan, net — 102,079 Dividends Receivable 45,922 38,066 $ 694,107 $ 719,187 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Debt | The components of term debt are summarized as follows: Term Debt March 31, 2022 December 31, 2021 Fixed Rate Variable Rate (2) Maturity Dates Secured fixed-rate (1) $ 929,980 $ 930,830 2.46% - 4.50% October 2022 - February 2030 Secured variable-rate (1) 368,038 392,679 1.29% - 1.95% October 2022 - September 2030 Unsecured fixed-rate 3,930,376 3,575,000 1.40% - 4.39% February 2024 - March 2032 Unsecured variable-rate 594,624 550,000 1.40% February 2024 - October 2026 Total 5,823,018 5,448,509 Less: Unamortized debt issuance costs (30,352) (25,762) Total $ 5,792,666 $ 5,422,747 (1) The loans are collateralized by mortgages on real estate assets and the assignment of rents. (2) Basis rate is 30-day USD LIBOR, 30-day SOFR look-forward and SOFR. |
Schedule of Information on Lines of Credit | At March 31, 2022, the terms of the Second Amended and Restated Credit Agreement dated June 22, 2021 (the "Credit Agreement") are as follows: Debt Capacity Maturity Date Revolving Credit Facility $ 1,250,000 June 2025 Tranche 1 Term Loan Facility (1) 400,000 January 2027 Tranche 2 Term Loan Facility (1) 425,000 October 2026 Tranche 3 Term Loan Facility (1) 245,000 January 2025 Tranche 4 Term Loan Facility (1) 255,000 June 2026 Tranche 5 Term Loan Facility (1) 425,000 February 2024 $ 3,000,000 (1) The term loan amounts have been fully drawn as of March 31, 2022. As of March 31, 2022 Revolving Lines of Credit Amount Drawn Capacity Interest Rate Maturity Basis Rate (1) Credit Line 1 (2) $ — $ 140,000 1.9% 7/1/2023 LIBOR plus 1.45% Credit Line 2 (3)(4) 220,000 1,250,000 1.3% 6/20/2025 LIBOR plus 0.85% $ 220,000 $ 1,390,000 (1) 30-day USD LIBOR (2) Secured by mortgages on certain real estate assets. No remaining extensions available. (3) Unsecured. Two six (4) Basis Rate as of March 31, 2022. Rate is subject to change based on the Company's investment grade rating. |
Schedule of Maturities of Notes Payable | The following table summarizes the scheduled maturities of term debt, excluding available extensions, at March 31, 2022: 2022 $ 232,486 2023 467,316 2024 425,000 2025 399,531 2026 803,537 Thereafter 3,495,148 $ 5,823,018 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 condensed consolidated balance sheets: Asset / Liability Derivatives Derivatives designated as hedging instruments: March 31, 2022 December 31, 2021 Other assets $ 13,981 $ 271 Other liabilities $ 2,189 $ 39,569 |
Schedule of information relating to gain (loss) recognized on swap agreements | The table below presents the effect of the Company’s derivative financial instruments on the condensed 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 Three Months Ended March 31, Location of amounts reclassified from OCI into income Gain (loss) reclassified from OCI For the Three Months Ended March 31, Type 2022 2021 2022 2021 Swap Agreements $ 42,741 $ 14,176 Interest expense $ (8,912) $ (8,845) |
Noncontrolling Interest (Tables
Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Balances of OP Units | The balances for each of the specific Preferred OP Units as presented in the Statement of Noncontrolling Interests and Equity as of the periods indicated is as follows: March 31, 2022 December 31, 2021 Series A Units $ 15,922 $ 15,606 Series B Units 34,693 38,068 Series D Units 205,436 205,436 $ 256,051 $ 259,110 |
Noncontrolling Interest in Op_2
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | OP Unit activity is summarized as follows for the periods presented: For the Three Months Ended March 31, 2022 2021 OP Units redeemed for common stock — 5,000 OP Units redeemed for cash 13,028 — Cash paid for OP Units redeemed $ 2,672 $ — |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information of Business Segments | Financial information for the Company’s business segments is set forth below: For the Three Months Ended March 31, 2022 2021 Revenues: Self-Storage Operations $ 379,808 $ 303,593 Tenant Reinsurance 43,797 39,619 Total segment revenues $ 423,605 $ 343,212 Operating expenses: Self-Storage Operations $ 103,542 $ 92,367 Tenant Reinsurance 7,042 7,161 Total segment operating expenses $ 110,584 $ 99,528 Net operating income: Self-Storage Operations $ 276,266 $ 211,226 Tenant Reinsurance 36,755 32,458 Total segment net operating income: $ 313,021 $ 243,684 Other components of net income: Management fees and other income $ 19,957 $ 15,645 General and administrative expense (29,762) (23,540) Depreciation and amortization expense (67,906) (58,599) Gain on real estate transactions — 63,883 Interest expense (42,538) (40,695) Interest income 18,989 12,304 Equity in earnings and dividend income from unconsolidated real estate entities 9,097 6,956 Income tax expense (3,141) (4,137) Net income $ 217,717 $ 215,501 |
Organization (Detail)
Organization (Detail) | Mar. 31, 2022storestate |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating storage facilities in which the entity has equity interests (in stores) | 1,283 |
Number of stores owned by franchisees and third parties | 847 |
Number of operating stores owned and/or managed | 2,130 |
Number of states in which operating storage facilities are located | state | 41 |
Fair Value Disclosures - Assets
Fair Value Disclosures - Assets and Liabilities on a Recurring Basis (Detail) - Recurring Basis $ in Thousands | Mar. 31, 2022USD ($) |
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 | 13,981 |
Other liabilities - Cash flow hedge swap agreements | 2,189 |
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 |
Fair Value Disclosures - Additi
Fair Value Disclosures - Additional Information (Detail) | Mar. 31, 2022store |
Fair Value Disclosures [Abstract] | |
Number of operating stores held-for-sale | 2 |
Fair Value Disclosures - Schedu
Fair Value Disclosures - Schedule of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred and Common Operating Partnership unit holders | $ 98,054 | $ 101,824 |
Fixed rate notes receivable | 1,248 | 105,954 |
Fixed rate debt | 4,780,095 | 4,643,072 |
Carrying Value | ||
Fair Value of Financial Instruments [Line Items] | ||
Notes receivable from Preferred and Common Operating Partnership unit holders | 101,900 | 101,900 |
Fixed rate notes receivable | 1,251 | 104,251 |
Fixed rate debt | $ 4,860,356 | $ 4,506,435 |
Real Estate Assets - Schedule o
Real Estate Assets - Schedule of Components of Real Estate Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Real Estate [Abstract] | ||
Land | $ 2,186,751 | $ 2,151,319 |
Buildings, improvements and other intangibles | 8,347,651 | 8,227,094 |
Right of use asset - finance lease | 114,668 | 117,718 |
Intangible assets - tenant relationships | 135,535 | 134,577 |
Intangible lease rights | 12,443 | 12,443 |
Gross operating real estate assets | 10,797,048 | 10,643,151 |
Less: accumulated depreciation and amortization | (1,929,716) | (1,867,750) |
Net operating real estate assets | 8,867,332 | 8,775,401 |
Real estate under development/redevelopment | 73,392 | 59,248 |
Net real estate assets | 8,940,724 | 8,834,649 |
Real estate assets held for sale included in real estate assets, net | $ 23,742 | $ 8,436 |
Real Estate Assets - Additional
Real Estate Assets - Additional Information (Details) | Mar. 31, 2022store |
Real Estate [Abstract] | |
Number of operating stores held-for-sale | 2 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 1,216,196 | 337,839 |
Average share price (in dollars per share) | $ 198.83 | $ 121.07 |
Series A Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exchangeable preferred operating partnership units settled in cash, minimum | $ 101,700 | |
Stock 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) | 0 | 0 |
Earnings Per Common Share - Ant
Earnings Per Common Share - Antidilutive Shares (Detail) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 1,216,196 | 337,839 |
Series B Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 182,974 | 337,839 |
Series D Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per common share (in shares) | 1,033,222 | 0 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Computation (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Net income attributable to common stockholders | $ 203,579 | $ 202,998 |
Earnings and dividends allocated to participating securities | (286) | (312) |
Earnings for basic computations | 203,293 | 202,686 |
Income allocated to noncontrolling interest - Preferred Operating Partnership Units and Operating Partnership Units | 11,693 | 11,894 |
Fixed component of income allocated to noncontrolling interest - Preferred Operating Partnership (Series A Units) | (572) | (572) |
Net income for diluted computations | $ 214,414 | $ 214,008 |
Weighted average common shares outstanding: | ||
Average number of common shares outstanding - basic (in shares) | 134,180,175 | 132,007,556 |
OP Units (in shares) | 6,520,781 | 5,800,729 |
Shares related to exchangeable senior notes and dilutive stock options (in shares) | 5,426 | 23,409 |
Average number of common shares outstanding - diluted (in shares) | 141,581,862 | 139,676,548 |
Earnings per common share | ||
Basic (in dollars per share) | $ 1.52 | $ 1.54 |
Diluted (in dollars per share) | $ 1.51 | $ 1.53 |
Series A Units | ||
Weighted average common shares outstanding: | ||
Preferred Units (in shares) | 875,480 | 875,480 |
Series D Units | ||
Weighted average common shares outstanding: | ||
Preferred Units (in shares) | 0 | 969,374 |
Store Acquisitions (Detail)
Store Acquisitions (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)store | Mar. 31, 2021USD ($)store | |
Real Estate [Abstract] | ||
Number of Stores | store | 14 | 9 |
Cash Paid | $ 185,910 | $ 148,940 |
Investments in Real Estate Ventures | 747 | 0 |
Net Liabilities/ (Assets) Assumed | 274 | 2,944 |
Value of OP Units Issued | 40,965 | 0 |
Total | $ 227,896 | $ 151,884 |
Investments in Unconsolidated_3
Investments in Unconsolidated Real Estate Entities (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($)storeproperty | Mar. 31, 2021USD ($) | Dec. 31, 2021USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 288 | ||
Investment balance | $ 410,785 | $ 393,744 | |
Amount invested | $ 4,321 | $ 250 | |
Number of joint venture stores purchased | store | 2 | ||
PRISA Self Storage LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 85 | ||
Equity Ownership % | 4.00% | ||
Excess Profit % | 4.00% | ||
Investment balance | $ 8,746 | 8,792 | |
Storage Portfolio II JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 36 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ (6,336) | (6,116) | |
Storage Portfolio IV JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 29 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ 44,156 | 40,174 | |
Storage Portfolio I LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 24 | ||
Equity Ownership % | 34.00% | ||
Excess Profit % | 49.00% | ||
Investment balance | $ (40,447) | (40,168) | |
PR II EXR JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 18 | ||
Equity Ownership % | 25.00% | ||
Excess Profit % | 25.00% | ||
Investment balance | $ 70,131 | 70,403 | |
ESS-CA TIVS JV LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 16 | ||
Equity Ownership % | 55.00% | ||
Excess Profit % | 60.00% | ||
Investment balance | $ 32,582 | 32,288 | |
VRS Self Storage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 16 | ||
Equity Ownership % | 45.00% | ||
Excess Profit % | 54.00% | ||
Investment balance | $ (14,619) | (14,269) | |
ESS-NYFL JV LP | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 11 | ||
Equity Ownership % | 16.00% | ||
Excess Profit % | 24.00% | ||
Investment balance | $ 11,746 | 11,796 | |
Extra Space Northern Properties Six LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 10 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 35.00% | ||
Investment balance | $ (3,104) | (3,029) | |
Alan Jathoo JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 9 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 10.00% | ||
Investment balance | $ 7,556 | 7,621 | |
ESS Bristol Investments LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 8 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ 2,204 | 2,628 | |
PR EXR Self Storage, LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 5 | ||
Equity Ownership % | 25.00% | ||
Excess Profit % | 40.00% | ||
Investment balance | $ 59,172 | 59,393 | |
Storage Portfolio III JV LLC | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 5 | ||
Equity Ownership % | 10.00% | ||
Excess Profit % | 30.00% | ||
Investment balance | $ 5,562 | 5,596 | |
Other minority owned stores | |||
Schedule of Equity Method Investments [Line Items] | |||
Number of Stores | property | 16 | ||
Investment balance | $ 33,436 | 18,635 | |
Other minority owned stores | Minimum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Ownership % | 20.00% | ||
Excess Profit % | 20.00% | ||
Other minority owned stores | Maximum | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Ownership % | 50.00% | ||
Excess Profit % | 50.00% | ||
SmartStop Self Storage REIT, Inc. Preferred Stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment balance | $ 200,000 | $ 200,000 | |
Investment, preferred dividend rate | 6.25% | ||
Period after which preferred stock dividend is subject to increase | 5 years | ||
Investment redemption restriction period | 5 years |
Investments in Debt Securitie_3
Investments in Debt Securities and Notes Receivable - Schedule (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Dividends Receivable | $ 45,922 | $ 38,066 |
Investments in debt securities and notes receivable | 694,107 | 719,187 |
Notes Receivable-Bridge Loans | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Notes receivable | 348,185 | 279,042 |
Notes Receivable-Senior Mezzanine Loan | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Notes receivable | 0 | 102,079 |
JCAP Series A Preferred Stock | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt securities | 200,000 | 200,000 |
JCAP Series B Preferred Stock | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Debt securities | $ 100,000 | $ 100,000 |
Investments in Debt Securitie_4
Investments in Debt Securities and Notes Receivable - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Feb. 28, 2022USD ($) | Nov. 30, 2020USD ($)extension_optionshares | Jul. 31, 2020USD ($)store | Mar. 31, 2022USD ($)extension_option | Mar. 31, 2021USD ($) | |
Schedule of Held-to-maturity Securities [Line Items] | |||||
Investment in debt securities | $ 300,000 | ||||
Debt securities, term | 5 years | ||||
Debt securities, extension option | extension_option | 2 | ||||
Debt securities, extension term | 1 year | ||||
Debt securities, period after which preferred dividends increase annually | 5 years | ||||
Collateral, number of facilities | store | 62 | ||||
Payments for issuance/purchase of notes receivable | $ 134,408 | $ 25,772 | |||
Proceeds from sale of notes receivable | $ 39,718 | $ 81,250 | |||
Bridge loans, extension option | extension_option | 2 | ||||
Bridge loans, extension term | 1 year | ||||
Notes Receivable-Senior Mezzanine Loan | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Purchase of note receivable | $ 103,000 | ||||
Note receivable interest rate | 5.50% | ||||
Payments for issuance/purchase of notes receivable | $ 101,142 | ||||
Proceeds from sale of notes receivable | $ 103,315 | ||||
Notes Receivable-Bridge Loans | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Payments for issuance/purchase of notes receivable | $ 134,408 | ||||
Proceeds from sale of notes receivable | $ 39,718 | ||||
Bridge loans, original maturities | 3 years | ||||
Principal amount of notes sold | $ 39,718 | ||||
JCAP Series A Preferred Stock | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Investment in debt securities | $ 200,000 | ||||
Investment in debt securities (in shares) | shares | 200,000 | ||||
Debt securities, dividend rate | 10.00% | ||||
JCAP Series B Preferred Stock | |||||
Schedule of Held-to-maturity Securities [Line Items] | |||||
Investment in debt securities | $ 100,000 | ||||
Investment in debt securities (in shares) | shares | 100,000 | ||||
Debt securities, dividend rate | 12.00% |
Debt - Additional Information (
Debt - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2022USD ($)extension_option | Sep. 30, 2021USD ($) | May 31, 2021USD ($) | |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Number of extensions available | extension_option | 2 | ||
Extension term | 6 months | ||
Line of Credit | Base rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
Line of Credit | Base rate | Investment grade election | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.00% | ||
Line of Credit | Base rate | Investment grade election | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.60% | ||
Line of Credit | Federal funds rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Line of Credit | Eurodollar | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Line of Credit | Eurodollar | Investment grade election | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.70% | ||
Line of Credit | Eurodollar | Investment grade election | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.60% | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Redemption price | 100.00% | ||
Senior Notes | Senior Notes Due 2031 | |||
Debt Instrument [Line Items] | |||
Principal amount of notes issued | $ 450,000,000 | ||
Debt stated interest rate | 2.55% | ||
Senior Notes | Senior Notes Due 2032 | |||
Debt Instrument [Line Items] | |||
Principal amount of notes issued | $ 600,000,000 | ||
Debt stated interest rate | 2.35% | ||
Senior Notes | Senior Notes Due 2029 | |||
Debt Instrument [Line Items] | |||
Principal amount of notes issued | $ 400,000,000 | ||
Debt stated interest rate | 3.90% |
Debt - Schedule of Components o
Debt - Schedule of Components of Notes Payable (Details) - Notes Payable - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 5,823,018 | $ 5,448,509 |
Less: Unamortized debt issuance costs | (30,352) | (25,762) |
Total | 5,792,666 | 5,422,747 |
Secured notes payable | ||
Debt Instrument [Line Items] | ||
Fixed rate notes payable | 929,980 | 930,830 |
Variable rate notes payable | $ 368,038 | 392,679 |
Secured notes payable | Minimum | ||
Debt Instrument [Line Items] | ||
Fixed Rate | 2.46% | |
Variable Rate | 1.29% | |
Secured notes payable | Maximum | ||
Debt Instrument [Line Items] | ||
Fixed Rate | 4.50% | |
Variable Rate | 1.95% | |
Unsecured notes payable | ||
Debt Instrument [Line Items] | ||
Fixed rate notes payable | $ 3,930,376 | 3,575,000 |
Variable rate notes payable | $ 594,624 | $ 550,000 |
Variable Rate | 1.40% | |
Unsecured notes payable | Minimum | ||
Debt Instrument [Line Items] | ||
Fixed Rate | 1.40% | |
Unsecured notes payable | Maximum | ||
Debt Instrument [Line Items] | ||
Fixed Rate | 4.39% |
Debt - Schedule of Lines of Cre
Debt - Schedule of Lines of Credit (Details) - Line of Credit | Mar. 31, 2022USD ($) |
Line of Credit Facility [Line Items] | |
Debt Capacity | $ 3,000,000,000 |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | 1,250,000,000 |
Tranche 1 Term Loan Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | 400,000,000 |
Tranche 2 Term Loan Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | 425,000,000 |
Tranche 3 Term Loan Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | 245,000,000 |
Tranche 4 Term Loan Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | 255,000,000 |
Tranche 5 Term Loan Facility | |
Line of Credit Facility [Line Items] | |
Debt Capacity | $ 425,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Notes Payable (Details) - Notes Payable - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2022 | $ 232,486 | |
2023 | 467,316 | |
2024 | 425,000 | |
2025 | 399,531 | |
2026 | 803,537 | |
Thereafter | 3,495,148 | |
Total | $ 5,823,018 | $ 5,448,509 |
Debt - Schedule of Information
Debt - Schedule of Information on Lines of Credit (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)extension_option | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Amount Drawn | $ 220,000,000 | $ 535,000,000 |
Lines Of Credit | ||
Debt Instrument [Line Items] | ||
Amount Drawn | 220,000,000 | |
Capacity | 1,390,000,000 | |
Credit Line 1 | ||
Debt Instrument [Line Items] | ||
Amount Drawn | 0 | |
Capacity | $ 140,000,000 | |
Interest Rate | 1.90% | |
Credit Line 2 | ||
Debt Instrument [Line Items] | ||
Amount Drawn | $ 220,000,000 | |
Capacity | $ 1,250,000,000 | |
Interest Rate | 1.30% | |
Number of extensions available | extension_option | 2 | |
Extension term | 6 months | |
LIBOR | Credit Line 1 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.45% | |
LIBOR | Credit Line 2 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.85% |
Derivatives - Additional Inform
Derivatives - Additional Information (Detail) $ in Thousands | Mar. 31, 2022USD ($)derivative |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Estimated amount of unrealized gains (losses) expected to be reclassified as interest expense in next fiscal year | $ (5,472) |
Number of derivative financial instruments | derivative | 19 |
Combined notional amount | $ 1,934,369 |
Fair value - net liability position | 1,743 |
Contingent cash settlement value | $ 1,743 |
Derivatives - Schedule of Balan
Derivatives - Schedule of Balance Sheet Classification and Fair Value of Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other assets | ||
Derivative [Line Items] | ||
Other assets - Cash flow hedge swap agreements | $ 13,981 | $ 271 |
Other liabilities | ||
Derivative [Line Items] | ||
Other liabilities - Cash flow hedge swap agreements | $ 2,189 | $ 39,569 |
Derivatives - Gain (Loss) Recog
Derivatives - Gain (Loss) Recognized on Swap Agreements (Detail) - Swap Agreements - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Derivative [Line Items] | ||
Gain (loss) recognized in OCI | $ 42,741 | $ 14,176 |
Gain (loss) reclassified from OCI | $ (8,912) | $ (8,845) |
Stockholders' Equity (Detail)
Stockholders' Equity (Detail) | Jan. 07, 2022USD ($)storeshares | Aug. 09, 2021USD ($)sales_agent | Mar. 23, 2021USD ($)$ / sharesshares | Mar. 31, 2022USD ($)shares | Aug. 08, 2021USD ($)shares | Oct. 15, 2020USD ($) |
Class of Stock [Line Items] | ||||||
Issuance of common stock in conjunction with acquisitions (in shares) | shares | 186,766 | |||||
Number of stores acquired through issuance of common stock | store | 2 | |||||
Issuance of common stock in conjunction with acquisitions | $ 40,965,000 | $ 40,965,000 | ||||
Number of sales agents | sales_agent | 10 | |||||
Shares issued (in shares) | shares | 1,600,000 | |||||
Net proceeds | $ 206,572,000 | |||||
Average sales price (in dollars per share) | $ / shares | $ 129.13 | |||||
Share repurchase program, authorized amount | $ 400,000,000 | |||||
Repurchase of common stock (in shares) | shares | 0 | |||||
At the Market Equity Distribution Agreement | ||||||
Class of Stock [Line Items] | ||||||
Aggregate offering price of common shares | $ 800,000,000 | |||||
Shares issued (in shares) | shares | 585,685 | |||||
Net proceeds | $ 66,617,000 |
Noncontrolling Interest Repre_2
Noncontrolling Interest Represented by Preferred Operating Partnership Units - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 15, 2022 | Apr. 18, 2017 | Oct. 31, 2014 | Jun. 30, 2007 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2014 | Jun. 25, 2007 |
Noncontrolling Interest [Line Items] | |||||||||
Loans and notes to affiliates | $ 100,000 | $ 100,000 | |||||||
Preferred units outstanding (in shares) | 6,515,408 | ||||||||
Note receivable interest rate | 5.00% | ||||||||
Value of units issued | $ 40,965 | $ 0 | |||||||
Series A Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Fixed priority return on preferred OP units, amount | $ 101,700 | $ 101,700 | |||||||
Fixed priority return on preferred OP units, stated return rate | 2.30% | ||||||||
Fixed priority return on preferred OP units, liquidation value | $ 115,000 | ||||||||
Preferred units outstanding (in shares) | 875,480 | ||||||||
Series B Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Preferred units outstanding (in shares) | 1,387,727 | ||||||||
Liquidation value (in dollars per share) | $ 25 | ||||||||
Fixed liquidation value | $ 34,693 | ||||||||
Annual rate of return percentage | 6.00% | ||||||||
Redemption of Operating Partnership units (in shares) | 135,000 | ||||||||
Redemption of Operating Partnership units | $ 3,375 | ||||||||
Series D Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Liquidation value (in dollars per share) | $ 25 | ||||||||
Fixed liquidation value | $ 205,435 | ||||||||
Fixed liquidation value (in shares) | 8,217,422 | ||||||||
Number of units issued (in shares) | 3,522,937 | ||||||||
Value of units issued | $ 88,073 | ||||||||
Series D Units | Minimum | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Annual rate of return percentage | 3.00% | ||||||||
Series D Units | Maximum | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Annual rate of return percentage | 5.00% | ||||||||
Operating Partnership Holders of A Units | Series A Units | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Loans and notes to affiliates | $ 100,000 | ||||||||
Maximum number of preferred OP units converted prior to the maturity date of the loan (in shares) | 114,500 | ||||||||
Note receivable interest rate | 2.10% |
Noncontrolling Interest Repre_3
Noncontrolling Interest Represented by Preferred Operating Partnership Units - Balances of OP Units (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest represented by Preferred Operating Partnership units, net | $ 256,051 | $ 259,110 |
Series A Units | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest represented by Preferred Operating Partnership units, net | 15,922 | 15,606 |
Series B Units | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest represented by Preferred Operating Partnership units, net | 34,693 | 38,068 |
Series D Units | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest represented by Preferred Operating Partnership units, net | $ 205,436 | $ 205,436 |
Noncontrolling Interest in Op_3
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022USD ($)propertyjoint_venture$ / sharesshares | Dec. 31, 2021USD ($) | |
Noncontrolling Interest [Line Items] | ||
Note receivable interest rate | 5.00% | |
Period used as a denomination to determine the average closing price of common stock | 10 days | |
Ten day average closing stock price (in dollars per share) | $ / shares | $ 199.65 | |
Preferred units outstanding (in shares) | shares | 6,515,408 | |
Consideration to be paid on redemption of common OP units | $ 1,300,801 | |
Noncontrolling Interest - Operating Partnership | ||
Noncontrolling Interest [Line Items] | ||
Loan receivable, reduction of noncontrolling interests | $ 1,900 | $ 1,900 |
Common Stock | ||
Noncontrolling Interest [Line Items] | ||
OP units conversion ratio | 1 | |
Other noncontrolling interests | ||
Noncontrolling Interest [Line Items] | ||
Number of consolidated joint ventures | joint_venture | 1 | |
Number of operating stores owned | property | 1 | |
Noncontrolling Interest - Operating Partnership | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest held | 94.00% | |
Ownership interest held by joint venture partner | 6.00% | |
Other noncontrolling interests | ||
Noncontrolling Interest [Line Items] | ||
Ownership interest held by joint venture partner | 10.00% |
Noncontrolling Interest in Op_4
Noncontrolling Interest in Operating Partnership and Other Noncontrolling Interests - Schedule of OP Unit Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | ||
OP Units redeemed for common stock (in shares) | 0 | 5,000 |
OP Units redeemed for cash (in shares) | 13,028 | 0 |
Cash paid for OP Units redeemed | $ 2,672 | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2022segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Financial Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenues: | $ 443,562 | $ 358,857 |
Operating expenses: | 208,252 | 181,667 |
Net operating income: | 235,310 | 241,073 |
Management fees and other income | 19,957 | 15,645 |
General and administrative expense | (29,762) | (23,540) |
Depreciation and amortization expense | (67,906) | (58,599) |
Gain on real estate transactions | 0 | 63,883 |
Interest expense | (42,538) | (40,695) |
Interest income | 18,989 | 12,304 |
Equity in earnings and dividend income from unconsolidated real estate entities | 9,097 | 6,956 |
Income tax expense | (3,141) | (4,137) |
Net income | 217,717 | 215,501 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues: | 423,605 | 343,212 |
Operating expenses: | 110,584 | 99,528 |
Net operating income: | 313,021 | 243,684 |
Self-Storage Operations | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues: | 379,808 | 303,593 |
Operating expenses: | 103,542 | 92,367 |
Net operating income: | 276,266 | 211,226 |
Tenant Reinsurance | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenues: | 43,797 | 39,619 |
Operating expenses: | 7,042 | 7,161 |
Net operating income: | $ 36,755 | $ 32,458 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Thousands | Mar. 31, 2022USD ($)store |
Commitment to acquire stores | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 18 |
Purchase price | $ | $ 266,595 |
Commitment to acquire stores, scheduled to close in current fiscal year | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 12 |
Commitment to acquire stores, scheduled to close in next fiscal year | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 6 |
Commitment to acquire stores with joint venture partners | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 4 |
Purchase price | $ | $ 13,010 |
Commitment to acquire stores with joint venture partners, scheduled to close in current fiscal year | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 3 |
Commitment to acquire stores with joint venture partners, scheduled to close in next fiscal year | |
Other Commitments [Line Items] | |
Number of real estate properties to be acquired | 1 |