Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-33519 | |
Entity Registrant Name | Public Storage | |
Entity Central Index Key | 0001393311 | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 95-3551121 | |
Entity Address, Address Line One | 701 Western Avenue | |
Entity Address, City or Town | Glendale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91201-2349 | |
City Area Code | 818 | |
Local Phone Number | 244-8080 | |
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 | 174,597,753 | |
Common Shares [Member] | ||
Title of 12(b) Security | Common Shares, $0.10 par value | |
Trading Symbol | PSA | |
Security Exchange Name | NYSE | |
Series U Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.625% Cum Pref Share, Series U, $0.01 par value | |
Trading Symbol | PSAPrU | |
Security Exchange Name | NYSE | |
Series V Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.375% Cum Pref Share, Series V, $0.01 par value | |
Trading Symbol | PSAPrV | |
Security Exchange Name | NYSE | |
Series W Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.200% Cum Pref Share, Series W, $0.01 par value | |
Trading Symbol | PSAPrW | |
Security Exchange Name | NYSE | |
Series X Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.200% Cum Pref Share, Series X, $0.01 par value | |
Trading Symbol | PSAPrX | |
Security Exchange Name | NYSE | |
Series A Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.875% Cum Pref Share, Series A, $0.01 par value | |
Trading Symbol | PSAPrA | |
Security Exchange Name | NYSE | |
Series B Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.400% Cum Pref Share, Series B, $0.01 par value | |
Trading Symbol | PSAPrB | |
Security Exchange Name | NYSE | |
Series C Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.125% Cum Pref Share, Series C, $0.01 par value | |
Trading Symbol | PSAPrC | |
Security Exchange Name | NYSE | |
Series D Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 4.950% Cum Pref Share, Series D, $0.01 par value | |
Trading Symbol | PSAPrD | |
Security Exchange Name | NYSE | |
Series E Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 4.900% Cum Pref Share, Series E, $0.01 par value | |
Trading Symbol | PSAPrE | |
Security Exchange Name | NYSE | |
Series F Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.150% Cum Pref Share, Series F, $0.01 par value | |
Trading Symbol | PSAPrF | |
Security Exchange Name | NYSE | |
Series G Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.050% Cum Pref Share, Series G, $0.01 par value | |
Trading Symbol | PSAPrG | |
Security Exchange Name | NYSE | |
Series H Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 5.600% Cum Pref Share, Series H, $0.01 par value | |
Trading Symbol | PSAPrH | |
Security Exchange Name | NYSE |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and equivalents | $ 360,331 | $ 361,218 |
Real estate facilities, at cost: | ||
Land | 4,116,718 | 4,047,982 |
Buildings | 11,665,027 | 11,248,862 |
Real estate facilities, gross | 15,781,745 | 15,296,844 |
Accumulated depreciation | (6,375,132) | (6,140,072) |
Real estate facilities, net | 9,406,613 | 9,156,772 |
Construction in process | 191,874 | 285,339 |
Total real estate facilities | 9,598,487 | 9,442,111 |
Investments in unconsolidated real estate entities | 778,523 | 783,988 |
Goodwill and other intangible assets, net | 210,178 | 209,856 |
Other assets | 165,772 | 131,097 |
Total assets | 11,113,291 | 10,928,270 |
LIABILITIES AND EQUITY | ||
Notes payable | 1,908,110 | 1,412,283 |
Accrued and other liabilities | 410,671 | 371,259 |
Total liabilities | 2,318,781 | 1,783,542 |
Commitments and contingencies (Note 12) | ||
Public Storage shareholders' equity: | ||
Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 149,500 shares issued (in series) and outstanding, (161,000 at December 31, 2018), at liquidation preference | 3,737,500 | 4,025,000 |
Common Shares, $0.10 par value, 650,000,000 shares authorized, 174,294,523 shares issued and outstanding (174,130,881 shares at December 31, 2018) | 17,429 | 17,413 |
Paid-in capital | 5,729,945 | 5,718,485 |
Accumulated deficit | (648,391) | (577,360) |
Accumulated other comprehensive loss | (67,549) | (64,060) |
Total Public Storage shareholders’ equity | 8,768,934 | 9,119,478 |
Noncontrolling interests | 25,576 | 25,250 |
Total equity | 8,794,510 | 9,144,728 |
Total liabilities and equity | $ 11,113,291 | $ 10,928,270 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Balance Sheets [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 149,500 | 161,000 |
Preferred stock, shares outstanding | 149,500 | 161,000 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 650,000,000 | 650,000,000 |
Common stock, shares issued | 174,294,523 | 174,130,881 |
Common stock, shares outstanding | 174,294,523 | 174,130,881 |
Statements Of Income
Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 710,950 | $ 685,528 | $ 1,399,988 | $ 1,355,452 |
Expenses: | ||||
Self-storage cost of operations | 196,083 | 179,876 | 389,739 | 362,063 |
Ancillary cost of operations | 11,653 | 11,101 | 22,198 | 21,741 |
Depreciation and amortization | 126,859 | 119,777 | 248,800 | 237,756 |
General and administrative | 15,264 | 31,329 | 34,767 | 62,849 |
Interest expense | 12,254 | 8,388 | 20,397 | 16,495 |
Operating expenses | 362,113 | 350,471 | 715,901 | 700,904 |
Interest and other income | 8,582 | 6,328 | 15,547 | 11,872 |
Equity in earnings of unconsolidated real estate entities | 18,914 | 41,963 | 36,586 | 72,758 |
Foreign currency exchange (loss) gain | (5,218) | 21,944 | 2,573 | 10,126 |
Gain on sale of real estate | 341 | 341 | 424 | |
Net income | 371,456 | 405,292 | 739,134 | 749,728 |
Allocation to noncontrolling interests | (1,400) | (1,490) | (2,557) | (2,929) |
Net income allocable to Public Storage shareholders | 370,056 | 403,802 | 736,577 | 746,799 |
Allocation of net income to: | ||||
Preferred shareholders- distributions | (53,525) | (54,077) | (108,537) | (108,158) |
Preferred shareholders - redemptions (Note 8) | (8,861) | (17,394) | ||
Restricted share units | (1,259) | (1,425) | (2,492) | (2,522) |
Net income allocable to common shareholders | $ 306,411 | $ 348,300 | $ 608,154 | $ 636,119 |
Net income per common share: | ||||
Basic | $ 1.76 | $ 2 | $ 3.49 | $ 3.66 |
Diluted | $ 1.76 | $ 2 | $ 3.49 | $ 3.65 |
Basic weighted average common shares outstanding | 174,253 | 173,932 | 174,215 | 173,912 |
Diluted weighted average common shares outstanding | 174,542 | 174,224 | 174,459 | 174,186 |
Self-Storage Operations [Member] | ||||
Revenues: | ||||
Total revenues | $ 669,339 | $ 645,206 | $ 1,319,747 | $ 1,276,743 |
Ancillary Operations [Member] | ||||
Revenues: | ||||
Total revenues | $ 41,611 | $ 40,322 | $ 80,241 | $ 78,709 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statements Of Comprehensive Income [Abstract] | ||||
Net income | $ 371,456 | $ 405,292 | $ 739,134 | $ 749,728 |
Other comprehensive income (loss): | ||||
Aggregate foreign currency exchange (loss) gain | (6,796) | 8,194 | (916) | 589 |
Adjust for aggregate foreign currency exchange loss (gain) included in net income | 5,218 | (21,944) | (2,573) | (10,126) |
Other comprehensive loss | (1,578) | (13,750) | (3,489) | (9,537) |
Total comprehensive income | 369,878 | 391,542 | 735,645 | 740,191 |
Allocation to noncontrolling interests | (1,400) | (1,490) | (2,557) | (2,929) |
Comprehensive income allocable to Public Storage shareholders | $ 368,478 | $ 390,052 | $ 733,088 | $ 737,262 |
Statement Of Equity
Statement Of Equity - USD ($) $ in Thousands | Cumulative Preferred Shares [Member] | Common Shares [Member] | Paid-In Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Total Public Storage Shareholders' Equity [Member] | Noncontrolling Interests [Member] | Total |
Balances at Dec. 31, 2017 | $ 4,025,000 | $ 17,385 | $ 5,648,399 | $ (675,711) | $ (75,064) | $ 8,940,009 | $ 24,360 | $ 8,964,369 |
Issuance of common shares in connection with share-based compensation | 9 | 1,690 | 1,699 | 1,699 | ||||
Share-based compensation expense, net of cash paid in lieu of common shares | 22,989 | 22,989 | 22,989 | |||||
Contributions by noncontrolling interests | 752 | 752 | ||||||
Net income | 749,728 | 749,728 | 749,728 | |||||
Net income allocated to noncontrolling interests | (2,929) | (2,929) | 2,929 | (2,929) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (108,158) | (108,158) | (108,158) | |||||
Noncontrolling interests | (3,055) | (3,055) | ||||||
Common shares and restricted share units | (697,995) | (697,995) | (697,995) | |||||
Other comprehensive loss (Note 2) | (9,537) | (9,537) | (9,537) | |||||
Balances at Jun. 30, 2018 | 4,025,000 | 17,394 | 5,673,078 | (735,065) | (84,601) | 8,895,806 | 24,986 | 8,920,792 |
Balances at Mar. 31, 2018 | 4,025,000 | 17,393 | 5,655,267 | (735,806) | (70,851) | 8,891,003 | 24,787 | 8,915,790 |
Issuance of common shares in connection with share-based compensation | 1 | 731 | 732 | 732 | ||||
Share-based compensation expense, net of cash paid in lieu of common shares | 17,080 | 17,080 | 17,080 | |||||
Contributions by noncontrolling interests | 49 | 49 | ||||||
Net income | 405,292 | 405,292 | 405,292 | |||||
Net income allocated to noncontrolling interests | (1,490) | (1,490) | 1,490 | (1,490) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (54,077) | (54,077) | (54,077) | |||||
Noncontrolling interests | (1,340) | (1,340) | ||||||
Common shares and restricted share units | (348,984) | (348,984) | (348,984) | |||||
Other comprehensive loss (Note 2) | (13,750) | (13,750) | (13,750) | |||||
Balances at Jun. 30, 2018 | 4,025,000 | 17,394 | 5,673,078 | (735,065) | (84,601) | 8,895,806 | 24,986 | 8,920,792 |
Balances at Dec. 31, 2018 | 4,025,000 | 17,413 | 5,718,485 | (577,360) | (64,060) | 9,119,478 | 25,250 | 9,144,728 |
Issuance of 11,400 preferred shares (Note 8) | 285,000 | 276,723 | 276,723 | |||||
Issuance of 11,400 preferred shares (Note 8), adjustment to APIC | (8,277) | |||||||
Redemption of preferred shares (Note 8) | (572,500) | (572,500) | (572,500) | |||||
Issuance of common shares in connection with share-based compensation | 16 | 17,374 | 17,390 | 17,390 | ||||
Share-based compensation expense, net of cash paid in lieu of common shares | 2,363 | 2,363 | 2,363 | |||||
Contributions by noncontrolling interests | 1,302 | 1,302 | ||||||
Net income | 739,134 | 739,134 | 739,134 | |||||
Net income allocated to noncontrolling interests | (2,557) | (2,557) | 2,557 | (2,557) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (108,537) | (108,537) | (108,537) | |||||
Noncontrolling interests | (3,533) | (3,533) | ||||||
Common shares and restricted share units | (699,071) | (699,071) | (699,071) | |||||
Other comprehensive loss (Note 2) | (3,489) | (3,489) | (3,489) | |||||
Balances at Jun. 30, 2019 | 3,737,500 | 17,429 | 5,729,945 | (648,391) | (67,549) | 8,768,934 | 25,576 | 8,794,510 |
Balances at Mar. 31, 2019 | 4,025,000 | 17,422 | 5,708,699 | (615,329) | (65,971) | 9,069,821 | 24,800 | 9,094,621 |
Redemption of preferred shares (Note 8) | (287,500) | (287,500) | (287,500) | |||||
Issuance of common shares in connection with share-based compensation | 7 | 15,790 | 15,797 | 15,797 | ||||
Share-based compensation expense, net of cash paid in lieu of common shares | 5,456 | 5,456 | 5,456 | |||||
Contributions by noncontrolling interests | 1,106 | 1,106 | ||||||
Net income | 371,456 | 371,456 | 371,456 | |||||
Net income allocated to noncontrolling interests | (1,400) | (1,400) | 1,400 | (1,400) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (53,525) | (53,525) | (53,525) | |||||
Noncontrolling interests | (1,730) | (1,730) | ||||||
Common shares and restricted share units | (349,593) | (349,593) | (349,593) | |||||
Other comprehensive loss (Note 2) | (1,578) | (1,578) | (1,578) | |||||
Balances at Jun. 30, 2019 | $ 3,737,500 | $ 17,429 | $ 5,729,945 | $ (648,391) | $ (67,549) | $ 8,768,934 | $ 25,576 | $ 8,794,510 |
Statement Of Equity (Parentheti
Statement Of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement Of Equity [Abstract] | ||||
Issuance of preferred shares, shares | 11,400 | |||
Redemption of preferred shares, shares | 11,500 | 22,900 | ||
Issuance of common shares in connection with share-based compensation, shares | 79,231 | 9,276 | 163,642 | 83,665 |
Common shares and restricted share units, per share distribution | $ 2 | $ 2 | $ 4 | $ 4 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 739,134 | $ 749,728 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Gain on real estate investment sales | (341) | (424) |
Depreciation and amortization | 248,800 | 237,756 |
Equity in earnings of unconsolidated real estate entities | (36,586) | (72,758) |
Distributions from retained earnings of unconsolidated real estate entities | 38,562 | 25,288 |
Foreign currency exchange gain | (2,573) | (10,126) |
Share-based compensation expense | 12,374 | 33,231 |
Other | 15,824 | 16,577 |
Total adjustments | 276,060 | 229,544 |
Net cash flows from operating activities | 1,015,194 | 979,272 |
Cash flows from investing activities: | ||
Payments for capital expenditures to maintain real estate facilities for: Costs incurred during the period | (61,630) | (44,189) |
Payments for capital expenditures to maintain real estate facilities for: Costs incurred in previous periods | (9,391) | (12,728) |
Payments for development and expansion of real estate facilities for: Costs incurred during the period | (75,751) | (121,188) |
Payments for development and expansion of real estate facilities for: Costs incurred in previous periods | (70,624) | (45,939) |
Acquisition of real estate facilities and intangible assets | (196,185) | (33,930) |
Proceeds from sale of real estate investments | 438 | 1,947 |
Net cash flows used in investing activities | (413,143) | (256,027) |
Cash flows from financing activities: | ||
Repayments on notes payable | (948) | (882) |
Issuance of notes payable, net of issuance costs | 496,900 | |
Issuance of preferred shares | 276,723 | |
Issuance of common shares | 17,390 | 1,699 |
Redemption of preferred shares | (572,500) | |
Cash paid upon vesting of restricted share units | (10,011) | (10,242) |
Contributions by noncontrolling interests | 1,302 | 752 |
Distributions paid to Public Storage shareholders | (807,608) | (806,153) |
Distributions paid to noncontrolling interests | (3,533) | (3,055) |
Net cash flows used in financing activities | (602,285) | (817,881) |
Net cash flows from operating, investing and financing activities | (234) | (94,636) |
Net effect of foreign exchange translation | 46 | 13 |
Decrease in cash and equivalents, including restricted cash | (188) | (94,623) |
Cash and equivalents, including restricted cash at beginning of the period: | ||
Cash and equivalents | 361,218 | 433,376 |
Restricted cash included in other assets | 22,801 | 22,677 |
Cash, equivalents, and restricted cash | 384,019 | 456,053 |
Cash and equivalents, including restricted cash at end of the period: | ||
Cash and equivalents | 360,331 | 338,419 |
Restricted cash included in other assets | 23,500 | 23,011 |
Cash, equivalents, and restricted cash | 383,831 | 361,430 |
Costs incurred during the period remaining unpaid at period end for: | ||
Capital expenditures to maintain real estate facilities | (10,929) | (9,038) |
Construction or expansion of real estate facilities | (53,955) | (43,158) |
Accrued and other liabilities | 64,884 | 52,196 |
Real estate acquired in exchange for assumption of notes payable | (1,817) | |
Notes payable assumed in connection with acquisition of real estate | 1,817 | |
Foreign currency translation adjustment: | ||
Real estate facilities, net of accumulated depreciation | 149 | |
Investments in unconsolidated real estate entities | 3,489 | 9,396 |
Notes payable | (2,527) | (10,121) |
Accumulated other comprehensive (loss) gain | $ (916) | $ 589 |
Description Of The Business
Description Of The Business | 6 Months Ended |
Jun. 30, 2019 | |
Description Of The Business [Abstract] | |
Description Of The Business | 1. Description of the Business Public Storage (referred to herein as “the Company,” “we,” “us,” or “our”), a Maryland real estate investment trust (“REIT”), was organized in 1980. Our principal business activities include the ownership and operation of self-storage facilities which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, ancillary activities such as merchandise sales and tenant reinsurance to the tenants at our self-storage facilities, as well as the acquisition and development of additional self-storage space. At June 30, 2019, we have direct and indirect equity interests in 2,456 self-storage facilities (with approximately 166 million net rentable square feet) located in 38 states in the United States (“U.S.”) operating under the “Public Storage” name, and 0.9 million net rentable square feet of commercial and retail space. We own 31.3 million common shares (an approximate 35 % interest) of Shurgard Self Storage SA (“Shurgard”, referred to in previous filings as “Shurgard Europe”), a public company traded on Euronext Brussels under the “SHUR” symbol, which owns 231 self-storage facilities (with approximately 13 million net rentable square feet) located in seven Western European countries, all operating under the “Shurgard” name. We also own an aggregate approximate 42 % common equity interest in PS Business Parks, Inc. (“PSB”), a REIT traded on the New York Stock Exchange under the “PSB” symbol, which owns 28 million aggregate net rentable square feet of commercial properties, primarily multi-tenant industrial, flex, and office space, located in six states. Disclosures of the number and square footage of facilities, as well as the number and coverage of tenant reinsurance policies (Note 12) are unaudited and outside the scope of our independent registered public accounting firm’s review of our financial statements in accordance with the standards of the Public Company Accounting Oversight Board (U.S.). |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation We have prepared the accompanying interim financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Accounting Standards Codification of the Financial Accounting Standards Board (“FASB”), and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, the interim financial statements presented herein reflect all adjustments, of a normal recurring nature, that are necessary to fairly present the interim financial statements. Because they do not include all of the disclosures required by GAAP for complete annual financial statements, these interim financial statements should be read together with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Certain amounts previously reported in our June 30, 2018 financial statements have been reclassified to conform to the June 30, 2019 presentation, including separate presentation on our Statements of Cash Flows of our cash payments for real estate investments between cash paid for amounts incurred during the current period and amounts incurred during previous periods. Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We have no involvement with any material VIEs. We consolidate all other entities when we control them through voting shares or contractual rights. The entities we consolidate, for the period in which the reference applies, are referred to collectively as the “Subsidiaries,” and we eliminate intercompany transactions and balances. We account for our investments in entities that we do not consolidate but have significant influence over using the equity method of accounting. These entities, for the periods in which the reference applies, are referred to collectively as the “Unconsolidated Real Estate Entities,” eliminating intra-entity profits and losses and amortizing any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity were a consolidated subsidiary. Equity in earnings of unconsolidated real estate entities represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. When we begin consolidating an entity, we reflect our preexisting equity interest at book value. All changes in consolidation status are reflected prospectively. Collectively, at June 30, 2019, the Company and the Subsidiaries own 2,456 self-storage facilities and three commercial facilities in the U.S. At June 30, 2019, the Unconsolidated Real Estate Entities are comprised of PSB and Shurgard. Use of Estimates The financial statements and accompanying notes reflect our estimates and assumptions. Actual results could differ from those estimates and assumptions. Income Taxes We have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, we do not incur federal income tax if we distribute 100 % of our REIT taxable income each year, and if we meet certain organizational and operational rules. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no federal income tax expense related to our REIT taxable income. Our merchandise and tenant reinsurance operations are subject to corporate income tax and such taxes are included in ancillary cost of operations. We also incur income and other taxes in certain states, which are included in general and administrative expense. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of June 30, 2019, we had no tax benefits that were not recognized. Real Estate Facilities Real estate facilities are recorded at cost. We capitalize all costs incurred to acquire, develop, construct, renovate and improve facilities, including interest and property taxes incurred during the construction period. We allocate the net acquisition cost of acquired real estate facilities to the underlying land, buildings, and identified intangible assets based upon their respective individual estimated fair values. Costs associated with dispositions of real estate, as well as repairs and maintenance costs, are expensed as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 25 years . When we sell a full or partial interest in a real estate facility without retaining a controlling interest following sale, we recognize a gain or loss on sale as if 100 % of the property was sold at fair value. If we retain a controlling interest following the sale, we record a noncontrolling interest for the book value of the partial interest sold, and recognize additional paid-in capital for the difference between the consideration received and the partial interest at book value. Other Assets Other assets primarily consist of rents receivable from our tenants, prepaid expenses, restricted cash and right-to-use assets. See “Recent Accounting Pronouncements and Guidance” below. Accrued and Other Liabilities Accrued and other liabilities consist primarily of rents prepaid by our tenants, trade payables, property tax accruals, accrued payroll, accrued tenant reinsurance losses, lease liabilities, and contingent loss accruals when probable and estimable. See “Recent Accounting Pronouncements and Guidance” below. We believe the fair value of our accrued and other liabilities approximates book value, due primarily to the short period until repayment. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. Cash Equivalents, Restricted Cash, Marketable Securities and Other Financial Instruments Cash equivalents represent highly liquid financial instruments such as money market funds with daily liquidity or short-term commercial paper or treasury securities maturing within three months of acquisition. Cash and equivalents which are restricted from general corporate use are included in other assets. We believe that the book value of all such financial instruments for all periods presented approximates fair value, due to the short period to maturity. Fair Value As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Our estimates of fair value involve considerable judgment and are not necessarily indicative of the amounts that could be realized in current market exchanges. We estimate the fair value of our cash and equivalents, marketable securities, other assets, debt, and other liabilities by discounting the related future cash flows at a rate based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity. Such quoted interest rates are referred to generally as “Level 2” inputs. We use significant judgment to estimate fair values of investments in real estate, goodwill, and other intangible assets. In estimating their values, we consider significant unobservable inputs such as market prices of land, market capitalization rates, expected returns, earnings multiples, projected levels of earnings, costs of construction, and functional depreciation. These inputs are referred to generally as “Level 3” inputs. Currency and Credit Risk Financial instruments that are exposed to credit risk consist primarily of cash and equivalents, certain portions of other assets including rents receivable from our tenants and restricted cash. Cash equivalents we invest in are either money market funds with a rating of at least AAA by Standard & Poor’s, commercial paper that is rated A1 by Standard & Poor’s or deposits with highly rated commercial banks. At June 30, 2019, due primarily to our investment in Shurgard (Note 4) and our notes payable denominated in Euros (Note 6), our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, and to a lesser extent, other European currencies, against the U.S. Dollar. Goodwill and Other Intangible Assets Intangible assets are comprised of goodwill, the “Shurgard” trade name, acquired customers in place, and leasehold interests in land. Goodwill totaled $ 174.6 million at June 30, 2019 and December 31, 2018. The “Shurgard” trade name, which is used by Shurgard pursuant to a fee-based licensing agreement, has a book value of $ 18.8 million at June 30, 2019 and December 31, 2018. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Acquired customers in place and leasehold interests in land are finite-lived assets and are amortized relative to the benefit of the customers in place or the benefit to land lease expense to each period. At June 30, 2019, these intangibles had a net book value of $ 16.8 million ($ 16.5 million at December 31, 2018). Accumulated amortization totaled $ 29.2 million at June 30, 2019 ($ 28.9 million at December 31, 2018), and amortization expense of $ 8.4 million and $ 8.8 million was recorded in the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expense for our finite-lived intangible assets at June 30, 2019 is approximately $ 6.7 million in the remainder of 2019, $ 5.0 million in 2020 and $ 5.1 million thereafter. During the six months ended June 30, 2019, intangibles increased $ 8.7 million in connection with the acquisition of self-storage facilities (Note 3). Evaluation of Asset Impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. We evaluate our investments in unconsolidated real estate entities for impairment on a quarterly basis. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary. We evaluate goodwill for impairment annually and whenever relevant events, circumstances and other related factors indicate that fair value of the related reporting unit may be less than the carrying amount. If we determine that the fair value of the reporting unit exceeds the aggregate carrying amount, no impairment charge is recorded. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value. We evaluate other indefinite-lived intangible assets, such as the “Shurgard” trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that the fair value is less than the carrying amount. When we conclude that it is likely that the asset is not impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value. No impairments were recorded in any of our evaluations for any period presented herein. Revenue and Expense Recognition Revenues from self-storage facilities, which are primarily composed of rental income earned pursuant to month-to-month leases, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. Ancillary revenues and interest and other income are recognized when earned. We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates when bills or assessments have not been received from the taxing authorities. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations (including advertising expenditures), general and administrative expense, and interest expense are expensed as incurred. Foreign Currency Exchange Translation The local currency (primarily the Euro) is the functional currency for our interests in foreign operations. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our statements of income are translated at the average exchange rates during the respective period. When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings. The Euro was translated at exchange rates of approximately 1.137 U.S. Dollars per Euro at June 30, 2019 ( 1.144 at December 31, 2018), and average exchange rates of 1.124 and 1.192 for the three months ended June 30, 2019 and 2018, respectively, and average exchange rates of 1.130 and 1.210 for the six months ended June 30, 2019 and 2018, respectively. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in equity as a component of accumulated other comprehensive income (loss). Comprehensive Income Total comprehensive income represents net income, adjusted for changes in other comprehensive income (loss) for the applicable period. The aggregate foreign currency exchange gains and losses reflected on our statements of comprehensive income are comprised primarily of foreign currency exchange gains and losses on our investment in Shurgard and our unsecured notes denominated in Euros. Recent Accounting Pronouncements and Guidance In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified-retrospective approach to adoption and became effective for interim and annual periods beginning on January 1, 2019. In July 2018, the FASB further amended this standard to allow for a new transition method that offers the option to use the effective date as the date of initial application and not adjust the comparative-period financial information. We adopted the new standard effective January 1, 2019, using the new transition method, recording a total of $ 38.7 million in right of use assets, reflected in other assets, and substantially the same amount in lease liabilities, reflected in accrued and other liabilities, for leases where we are the lessee (principally ground leases and office leases) . The lease liabilities are recognized based on the present value of the remaining lease payments for each operating lease using each respective remaining lease term and a corresponding estimated incremental borrowing rate. We estimated the incremental borrowing rate primarily by reference to average yield spread on debt issuances by companies of a similar credit rating as us, and the treasury yields as of January 1, 2019. We had no material amount of leases covered by the standard where we are the lessor (principally our storage leases) because substantially all of such leases are month to month. For leases where we are the lessee or the lessor, we applied (i) the package of practical expedients to not reassess prior conclusions related to contracts that are or that contain leases, lease classification and initial direct costs, (ii) the hindsight practical expedient to determine the lease term and in assessing impairment of the right of use assets, and (iii) the easement practical expedient to not assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under this new standard. In addition, for leases where we are the lessee, we also elected to (a) not apply the new standard to our leases with an original term of 12 months or less, and (b) not separate lease and associated non-lease components. Net Income per Common Share Net income is allocated to (i) noncontrolling interests based upon their share of the net income of the Subsidiaries, (ii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds (an “EITF D-42 allocation”), and (iii) the remaining net income is allocated to each of our equity securities based upon the dividends declared or accumulated during the period, combined with participation rights in undistributed earnings. Basic and diluted net income per common share are each calculated based upon net income allocable to common shareholders presented on the face of our income statement, divided by (i) in the case of basic net income per common share, weighted average common shares, and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact, if dilutive, of stock options outstanding (Note 10). The following table reconciles from basic to diluted common shares outstanding (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,253 173,932 174,215 173,912 Net effect of dilutive stock options - based on treasury stock method 289 292 244 274 Diluted weighted average common shares outstanding 174,542 174,224 174,459 174,186 |
Real Estate Facilities
Real Estate Facilities | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate Facilities [Abstract] | |
Real Estate Facilities | 3. Real Estate Facilities Activity in real estate facilities during the six months ended June 30, 2019 is as follows: Six Months Ended June 30, 2019 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 15,296,844 Costs incurred for capital expenditures to maintain real estate facilities 72,559 Acquisitions 189,273 Dispositions ( 102 ) Developed or expanded facilities opened for operation 223,171 Ending balance 15,781,745 Accumulated depreciation: Beginning balance ( 6,140,072 ) Depreciation expense ( 235,065 ) Dispositions 5 Ending balance ( 6,375,132 ) Construction in process: Beginning balance 285,339 Costs incurred for development and expansion of real estate facilities 129,706 Developed or expanded facilities opened for operation ( 223,171 ) Ending balance 191,874 Total real estate facilities at June 30, 2019 $ 9,598,487 During the six months ended June 30, 2019, we acquired 22 self-storage facilities ( 1,428,000 net rentable square feet), for a total cost of $ 198.0 million, consisting of $ 196.2 million in cash and the assumption of $ 1.8 million in mortgage notes. Approximately $ 8.7 million of the total cost was allocated to intangible assets. We completed development and redevelopment activities costing $ 223.2 million during the six months ended June 30, 2019, adding 2.7 million net rentable square feet of self-storage space. Construction in process at June 30, 2019 consists of projects to develop new self-storage facilities and expand existing self-storage facilities. During the six months ended June 30, 2019, we paid a total of $ 146.4 million with respect to the development and expansion of real estate facilities, including $ 70.6 million to repay amounts accrued at December 31, 2018 ($ 167.1 million during the six months ended June 30, 2018, including $ 45.9 million to repay amounts accrued at December 31, 2017). Of the $ 129.7 million in costs incurred during the six months ended June 30, 2019, $ 54.0 million remains unpaid at June 30, 2019. During the six months ended June 30, 2019, we paid a total of $ 71.0 million with respect to capital expenditures to maintain real estate facilities, including $ 9.4 million to repay amounts accrued at December 31, 2018 ($ 56.9 million during the six months ended June 30, 2018, including $ 12.7 million to repay amounts accrued at December 31, 2017). Of the $ 72.6 million in costs incurred during the six months ended June 30, 2019, $ 10.9 million remains unpaid at June 30, 2019. |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Entities | 6 Months Ended |
Jun. 30, 2019 | |
Investments In Unconsolidated Real Estate Entities [Abstract] | |
Investments In Unconsolidated Real Estate Entities | 4. Investments in Unconsolidated Real Estate Entities The following table sets forth our investments in, and equity in earnings of, the Unconsolidated Real Estate Entities (amounts in thousands): Investments in Unconsolidated Real Estate Entities at June 30, 2019 December 31, 2018 PSB $ 432,743 $ 434,533 Shurgard 345,780 349,455 Total $ 778,523 $ 783,988 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 PSB $ 14,864 $ 36,612 $ 28,584 $ 60,443 Shurgard 4,050 5,351 8,002 12,315 Total $ 18,914 $ 41,963 $ 36,586 $ 72,758 Investment in PSB Throughout all periods presented, we owned 7,158,354 shares of PSB’s common stock and 7,305,355 limited partnership units in an operating partnership controlled by PSB, representing an aggregate approximately 42 % common equity interest. The limited partnership units are convertible at our option, subject to certain conditions, on a one -for-one basis into PSB common stock. Based upon the closing price at June 30, 2019 ($ 168.53 per share of PSB common stock), the shares and units we owned had a market value of approximately $ 2.4 billion. Our equity in earnings of PSB is comprised of our equity interest in PSB’s earnings, less amortization of the PSB Basis Differential (defined below). During the six months ended June 30, 2019 and 2018, we received cash distributions from PSB totaling $ 30.4 million and $ 24.6 million, respectively. At June 30, 2019, our pro-rata investment in PSB’s real estate assets included in investment in real estate entities exceeds our pro-rata share of the underlying amounts on PSB’s balance sheet by approximately $ 31.9 million ($ 32.3 million at December 31, 2018). This differential (the “PSB Basis Differential”) is being amortized as a reduction to equity in earnings of the Unconsolidated Real Estate Entities. Such amortization totaled approximately $ 0.4 million and $ 0.9 million during the six months ended June 30, 2019 and 2018, respectively. PSB’s filings and selected financial information can be accessed through the SEC, and on PSB’s website, www.psbusinessparks.com. Information on this website is not incorporated by reference herein and is not a part of this Quarterly Report on Form 10-Q. Investment in Shurgard Throughout all periods presented, we effectively owned, directly and indirectly 31,268,459 Shurgard common shares, representing, prior to October 15, 2018, an approximate 49 % equity interest in Shurgard. On October 15, 2018, Shurgard completed an initial global offering (the “Offering”), issuing 25.0 million of its common shares to third parties at a price of € 23 per share, reducing our ownership interest to approximately 35 %. Following the Offering, Shurgard’s shares trade on Euronext Brussels under the “SHUR” symbol. Based upon the closing price at June 30, 2019 ( € 31.80 per share of SHUR common stock, at 1.137 exchange rate of US Dollars to the Euro), the shares we owned had a market value of approximately $ 1.1 billion. Our equity in earnings of Shurgard is comprised of our equity share of Shurgard’s net income, plus our equity share of the trademark license fees that Shurgard pays to us for the use of the “Shurgard” trademark. The remaining license fees we receive from Shurgard are classified as interest and other income on our income statement. Shurgard paid dividends to its public shareholders during the six months ended June 30, 2019 of € 0.22 per share. The aggregate dividends we received totaling $ 7.7 million in the six months ended June 30, 2019, combined with our equity share of trademark license fees collected from Shurgard, totaling $ 0.5 million and $ 0.7 million in the six months ended June 30, 2019 and 2018, are reflected as “distributions from retained earnings of unconsolidated real estate entities” on our statements of cash flows. Changes in foreign currency exchange rates decreased our investment in Shurgard by approximately $ 3.5 million and $ 9.4 million in the six months ended June 30, 2019 and 2018, respectively. Shurgard’s public filings and publicly reported information can be obtained on its website, https://corporate.shurgard.eu and on the website of the Luxembourg Stock Exchange, http://www.bourse.lu. Information on these websites is not incorporated by reference herein and is not a part of this Quarterly Report on Form 10-Q. |
Credit Facility
Credit Facility | 6 Months Ended |
Jun. 30, 2019 | |
Credit Facility [Abstract] | |
Credit Facility | 5. Credit Facility We have a revolving credit agreement (the “Credit Facility”) with a $ 500 million borrowing limit, which was amended on April 19, 2019 to (i) extend the maturity date from March 31, 2020 to April 19, 2024 , (ii) decrease the current effective borrowing spread over LIBOR from 0.850 % to 0.70 %, and (iii) decrease the current effective facility fee from 0.080 % to 0.070 %. All other terms remained substantially the same. Amounts drawn on the Credit Facility bear annual interest at rates ranging from LIBOR plus 0.70 % to LIBOR plus 1.350 % depending upon the ratio of our Total Indebtedness to Gross Asset Value (as defined in the Credit Facility) (LIBOR plus 0.70 % at June 30, 2019). We are also required to pay a quarterly facility fee ranging from 0.070 % per annum to 0.250 % per annum depending upon the ratio of our Total Indebtedness to our Gross Asset Value ( 0.070 % per annum at June 30, 2019). At June 30, 2019 and July 30, 2019, we had no outstanding borrowings under this Credit Facility. We had undrawn standby letters of credit, which reduce our borrowing capacity, totaling $ 15.9 million at June 30, 2019 ($ 16.2 million at December 31, 2018). The Credit Facility has various customary restrictive covenants, all of which we were in compliance with at June 30, 2019 . |
Notes Payable
Notes Payable | 6 Months Ended |
Jun. 30, 2019 | |
Notes Payable [Abstract] | |
Notes Payable | 6. Notes Payable Our notes payable at June 30, 2019 and December 31, 2018 are set forth in the tables below: Amounts at June 30, 2019 Coupon Effective Unamortized Book Fair Rate Rate Principal Costs Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 2.370 % 2.483 % $ 500,000 $ ( 1,683 ) $ 498,317 $ 502,766 Notes due September 15, 2027 3.094 % 3.218 % 500,000 ( 4,340 ) 495,660 509,595 Notes due May 1, 2029 3.385 % 3.459 % 500,000 ( 3,031 ) 496,969 521,481 1,500,000 ( 9,054 ) 1,490,946 1,533,842 Euro Denominated Unsecured Debt Notes due April 12, 2024 1.540 % 1.540 % 113,712 - 113,712 118,086 Notes due November 3, 2025 2.175 % 2.175 % 275,192 - 275,192 297,656 388,904 - 388,904 415,742 Mortgage Debt , secured by 27 real estate facilities with a net book value of $ 109.5 million 4.051 % 4.015 % 28,260 - 28,260 29,013 $ 1,917,164 $ ( 9,054 ) $ 1,908,110 $ 1,978,597 Amounts at December 31, 2018 Book Fair Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 $ 498,053 $ 482,017 Notes due September 15, 2027 495,396 469,055 Notes due May 1, 2029 - - 993,449 951,072 Euro Denominated Unsecured Debt Notes due April 12, 2024 114,449 115,964 Notes due November 3, 2025 276,982 286,078 391,431 402,042 Mortgage Debt 27,403 27,613 $ 1,412,283 $ 1,380,727 U.S. Dollar Denominated Unsecured Debt On September 18, 2017 , we issued, in a public offering, two tranches each totaling $ 500.0 million of U.S. Dollar denominated unsecured notes. In connection with the offering, we incurred a total of $ 7.9 million in costs, which is reflected as a reduction in the principal amount and amortized, using the effective interest method, over the term of each respective note. Interest on such notes is payable semi-annually on March 15 and September 15 of each year, commencing March 15, 2018. On April 12, 2019, we completed a public offering of $ 500 million in aggregate principal amount of senior notes bearing interest at an annual rate of 3.385 % maturing on May 1, 2029 . In connection with the offering, we incurred a total of $ 3.1 million in costs. The notes issued on April 12, 2019 and on September 18, 2017 are referred to hereinafter as the “U.S. Dollar Notes.” The U.S. Dollar Notes have various financial covenants, all of which we were in compliance with at June 30, 2019. Included in these covenants are (a) a maximum Debt to Total Assets of 65 % (approximately 6 % at June 30, 2019) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5 x (approximately 62 x for the twelve months ended June 30, 2019) as well as covenants limiting the amount we can encumber our properties with mortgage debt. Euro Denominated Unsecured Debt Our euro denominated unsecured notes (the “Euro Notes”) are payable to institutional investors. The Euro Notes consist of two tranches, (i) € 242.0 million issued on November 3, 2015 for $ 264.3 million in net proceeds upon converting the Euros to U.S. Dollars and (ii) € 100.0 million issued on April 12, 2016 for $ 113.6 million in net proceeds upon converting the Euros to U.S. Dollars. Interest is payable semi-annually. The Euro Notes have various customary financial covenants, all of which we were in compliance with at June 30, 2019. We reflect changes in the U.S. Dollar equivalent of the amount payable, as a result of changes in foreign exchange rates as “foreign currency exchange (loss) gain” on our income statement (losses of $ 5.2 million and gains of $ 2.6 million for the three and six months ended June 30, 2019, respectively, as compared to gains of $ 21.9 million and $ 10.1 million for the same periods in 2018). Mortgage Debt Our non-recourse mortgage debt was assumed in connection with property acquisitions, and recorded at fair value with any premium or discount to the stated note balance amortized using the effective interest method. During the six months ended June 30, 2019 , we assumed a mortgage note with a contractual value of $ 1.8 million and an interest rate of 3.9 %, which approximated market rate, in connection with the acquisition of a real estate facility. At June 30, 2019, the related contractual interest rates are fixed, ranging between 3.2 % and 7.1 %, and mature between January 1, 20 22 and July 1, 20 30 . At June 30, 2019 , approximate principal maturities of our Notes Payable are as follows (amounts in thousands): Unsecured Mortgage Debt Debt Total Remainder of 2019 $ - $ 971 $ 971 2020 - 2,015 2,015 2021 - 1,883 1,883 2022 500,000 2,584 502,584 2023 - 19,226 19,226 Thereafter 1,388,904 1,581 1,390,485 $ 1,888,904 $ 28,260 $ 1,917,164 Weighted average effective rate 2.8 % 4.0 % 2.9 % Cash paid for interest totaled $ 21.8 million and $ 18.3 million for the six months ended June 30, 2019 and 2018, respectively. Interest capitalized as real estate totaled $ 2.0 million and $ 2.3 million for the six months ended June 30, 2019 and 2018, respectively. |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2019 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling Interests At June 30, 2019, the noncontrolling interests represent (i) third-party equity interests in subsidiaries owning 19 operating self-storage facilities and five self-storage facilities that are under construction and (ii) 231,978 partnership units held by third-parties in a subsidiary that are convertible on a one -for-one basis (subject to certain limitations) into common shares of the Company at the option of the unitholder (collectively, the “Noncontrolling Interests”). At June 30, 2019, the Noncontrolling Interests cannot require us to redeem their interests, other than pursuant to a liquidation of the subsidiary. During the six months ended June 30, 2019 and 2018, we allocated a total of $ 2.6 million and $ 2.9 million, respectively, of income to these interests; and we paid $ 3.5 million and $ 3.1 million, respectively, in distributions to these interests. During the six months ended June 30, 2019 and 2018, Noncontrolling Interests contributed $ 1.3 million and $ 0.8 million, respectively, to our subsidiaries. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders’ Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity Preferred Shares At June 30, 2019 and December 31, 2018, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding: At June 30, 2019 At December 31, 2018 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series U 6/15/2017 5.625 % 11,500 $ 287,500 11,500 $ 287,500 Series V 9/20/2017 5.375 % 19,800 495,000 19,800 495,000 Series W 1/16/2018 5.200 % 20,000 500,000 20,000 500,000 Series X 3/13/2018 5.200 % 9,000 225,000 9,000 225,000 Series Y 3/17/2019 6.375 % - - 11,400 285,000 Series Z 6/4/2019 6.000 % - - 11,500 287,500 Series A 12/2/2019 5.875 % 7,600 190,000 7,600 190,000 Series B 1/20/2021 5.400 % 12,000 300,000 12,000 300,000 Series C 5/17/2021 5.125 % 8,000 200,000 8,000 200,000 Series D 7/20/2021 4.950 % 13,000 325,000 13,000 325,000 Series E 10/14/2021 4.900 % 14,000 350,000 14,000 350,000 Series F 6/2/2022 5.150 % 11,200 280,000 11,200 280,000 Series G 8/9/2022 5.050 % 12,000 300,000 12,000 300,000 Series H 3/11/2024 5.600 % 11,400 285,000 - - Total Preferred Shares 149,500 $ 3,737,500 161,000 $ 4,025,000 The holders of our Preferred Shares have general preference rights with respect to liquidation, quarterly distributions and any accumulated unpaid distributions. Except under certain conditions and as noted below, holders of the Preferred Shares will not be entitled to vote on most matters. In the event of a cumulative arrearage equal to six quarterly dividends, holders of all outstanding series of preferred shares (voting as a single class without regard to series) will have the right to elect two additional members to serve on our board of trustees (our “Board”) until the arrearage has been cured. At June 30, 2019, there were no dividends in arrears. Except under certain conditions relating to the Company’s qualification as a REIT, the Preferred Shares are not redeemable prior to the dates indicated on the table above. On or after the respective dates, each of the series of Preferred Shares is redeemable at our option, in whole or in part, at $ 25.00 per depositary share, plus accrued and unpaid dividends. Holders of the Preferred Shares cannot require us to redeem such shares. Upon issuance of our Preferred Shares, we classify the liquidation value as preferred equity on our balance sheet with any issuance costs recorded as a reduction to Paid-in capital. On March 11, 2019, we issued 11.4 million depositary shares, each representing 0.001 of a share of our 5.600 % Series H Preferred Shares, at an issuance price of $ 25.00 per depositary share, for a total of $ 285.0 million in gross proceeds, and we incurred $ 8.3 million in issuance costs. On March 28, 2019, we redeemed our 6.375 % Series Y Preferred Shares, at par. We recorded an $ 8.5 million allocation of income from our common shareholders to the holders of our Preferred Shares in the six months ended June 30, 2019 in connection with this redemption. On June 27, 2019, we redeemed our 6.000 % Series Z Preferred Shares, at par. We recorded an $ 8.9 million allocation of income from our common shareholders to the holders of our Preferred Shares in the three and six months ended June 30, 2019 in connection with this redemption. Dividends Common share dividends, including amounts paid to our restricted share unitholders, totaled $ 349.6 million ($ 2.00 per share) and $ 349.0 million ($ 2.00 per share) for the three months ended June 30, 2019 and 2018, respectively, and $ 699.1 million ($ 4.00 per share) and $ 698.0 million ($ 4.00 per share) for the six months ended June 30, 2019 and 2018, respectively. Preferred share dividends totaled $ 53.5 million and $ 54.1 million for the three months ended June 30, 2019 and 2018, respectively, and $ 108.5 million and $ 108.2 million for the six months ended June 30, 2019 and 2018, respectively. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 9. Related Party Transactions B. Wayne Hughes, our former Chairman and his family, including his daughter Tamara Hughes Gustavson and his son B. Wayne Hughes, Jr., who are both members of our Board, collectively own approximately 14.5 % of our common shares outstanding at June 30, 2019. At June 30, 2019, B. Wayne Hughes and Tamara Hughes Gustavson together owned and controlled 62 self-storage facilities in Canada. These facilities operate under the “Public Storage” tradename, which we license to the owners of these facilities for use in Canada on a royalty-free, non-exclusive basis. We have no ownership interest in these facilities and we do not own or operate any facilities in Canada. If we chose to acquire or develop our own facilities in Canada, we would have to share the use of the “Public Storage” name in Canada. We have a right of first refusal, subject to limitations, to acquire the stock or assets of the corporation engaged in the operation of these facilities if their owners agree to sell them. Our subsidiaries reinsure risks relating to loss of goods stored by customers in these facilities, and have received approximately $ 696,000 and $ 625,000 for the six months ended June 30, 2019 and 2018, respectively. Our right to continue receiving these premiums may be qualified. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation Under various share-based compensation plans and under terms established by our Board or a committee thereof, we grant non-qualified options to purchase the Company’s common shares, as well as restricted share units (“RSUs”), to trustees, officers, and key employees. Stock options and RSUs are considered “granted” and “outstanding” as the terms are used herein, when (i) the Company and the recipient reach a mutual understanding of the key terms of the award, (ii) the award has been authorized, (iii) the recipient is affected by changes in the market price of our stock, and (iv) it is probable that any performance conditions will be met. We amortize the grant-date fair value of awards as compensation expense over the service period, which begins on the grant date and ends generally on the vesting date. For awards that are earned solely upon the passage of time and continued service, the entire cost of the award is amortized on a straight-line basis over the service period. For awards with performance conditions, the individual cost of each vesting is amortized separately over each individual service period (the “accelerated attribution” method). In amortizing share-based compensation expense, we do not estimate future forfeitures in advance. Instead, we reverse previously amortized share-based compensation expense with respect to grants that are forfeited in the period the employee terminates employment. In February 2018, we announced that our Chief Executive Officer and Chief Financial Officer at the time were retiring from their executive roles at the end of 2018 and would then serve only as Trustees of the Company. Pursuant to our share-based compensation plans, their unvested grants will continue to vest over the original vesting periods during their service as Trustees. For financial reporting, the end of the service periods for previous stock option and RSU grants for these executives changed from (i) the various vesting dates to (ii) December 31, 2018 when they retired. Accordingly, all remaining share-based compensation expense for these two executives was amortized in the year ended December 31, 2018. See also “net income per common share” in Note 2 for further discussion regarding the impact of RSUs and stock options on our net income per common share and income allocated to common shareholders. Stock Options Stock options vest over 3 to 5 years, expire ten years after the grant date, and the exercise price is equal to the closing trading price of our common shares on the grant date. Employees cannot require the Company to settle their award in cash. We use the Black-Scholes option valuation model to estimate the fair value of our stock options. Outstanding stock option grants are included on a one-for-one basis in our diluted weighted average shares, to the extent dilutive, after applying the treasury stock method (based upon the average common share price during the period) to assumed exercise proceeds and measured but unrecognized compensation. For the three and six months ended June 30, 2019, we recorded $ 1.4 million and $ 2.2 million, respectively, in compensation expense related to stock options, as compared to $ 3.5 million and $ 7.0 million for the same periods in 2018. Amounts for the three and six months ended June 30, 2018 include $ 1.8 million and $ 3.6 million in connection with the acceleration of amortization on grants as discussed above. During the six months ended June 30, 2019, 105,000 stock options were granted, 106,755 options were exercised and 10,000 options were forfeited. A total of 2,409,167 stock options were outstanding at June 30, 2019 ( 2,420,922 at December 31, 2018) and have an average exercise price of $ 203.78 . Restricted Share Units RSUs generally vest over 5 to 8 years from the grant date. The grantee receives dividends for each outstanding RSU equal to the per-share dividends received by our common shareholders. We expense any dividends previously paid upon forfeiture of the related RSU. Upon vesting, the grantee receives common shares equal to the number of vested RSUs, less common shares withheld in exchange for tax deposits made by the Company to satisfy the grantee’s statutory tax liabilities arising from the vesting. The fair value of our RSUs is determined based upon the applicable closing trading price of our common shares. During the six months ended June 30, 2019, 50,775 RSUs were granted, 29,892 RSUs were forfeited and 97,556 RSUs vested. This vesting resulted in the issuance of 56,887 common shares. In addition, tax deposits totaling $ 10.0 million ($ 10.3 million for the same period in 2018) were made on behalf of employees in exchange for 40,669 common shares withheld upon vesting. A total of 641,023 RSUs were outstanding at June 30, 2019 ( 717,696 at December 31, 2018). A total of $ 4.3 million and $ 11.1 million in RSU expense was recorded for the three and six months ended June 30, 2019, respectively, which includes approximately $ 0.1 million and $ 1.1 million in employer taxes incurred upon vesting, as compared to $ 13.8 million and $ 27.2 million for the same periods in 2018, which includes approximately $ 0.1 million and $ 1.0 million in employer taxes incurred upon vesting. Amounts for the three and six months ended June 30, 2018 include $ 6.0 million and $ 12.1 million, respectively, in connection with the acceleration of amortization on grants to our CEO and CFO as discussed above. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Segment Information | 11. Segment Information Our reportable segments reflect the significant components of our operations where discrete financial information is evaluated separately by our chief operating decision maker (“CODM”). We organize our segments based primarily upon the nature of the underlying products and services, as well as the drivers of profitability growth. The net income for each reportable segment included in the tables below are in conformity with GAAP and our significant accounting policies as denoted in Note 2. The amounts not attributable to reportable segments are aggregated under “other items not allocated to segments.” Following is a description of and basis for presentation for each of our reportable segments. Self-Storage Operations The Self-Storage Operations segment reflects the rental operations from all self-storage facilities we own. Our CODM reviews the net operating income (“NOI”) of this segment, which represents the related revenues less cost of operations (prior to depreciation expense), in assessing performance and making resource allocation decisions. The presentation in the tables below sets forth the NOI of this segment, as well as the depreciation expense for this segment, which while reviewed by our CODM and included in net income, is not considered by the CODM in assessing performance and decision making. For all periods presented, substantially all of our real estate facilities, goodwill and other intangible assets, other assets, and accrued and other liabilities are associated with the Self-Storage Operations segment. Ancillary Operations The Ancillary Operations segment reflects the sale of merchandise and reinsurance of policies against losses to goods stored by our self-storage tenants, activities which are incidental to our primary self-storage rental activities. Our CODM reviews the NOI of these operations in assessing performance and making resource allocation decisions. Investment in PSB This segment represents our 42 % equity interest in PSB, a publicly-traded REIT that owns, operates, acquires and develops commercial properties, primarily multi-tenant flex, office, and industrial space. PSB has a separate management team that makes its financing, capital allocation, and other significant decisions. In making resource allocation decisions with respect to our investment in PSB, the CODM reviews PSB’s net income, which is detailed in PSB’s periodic filings with the SEC. The segment presentation in the tables below includes our equity earnings from PSB. Investment in Shurgard This segment represents our equity interest in Shurgard, a publicly held company which owns and operates self-storage facilities located in seven countries in Western Europe. Shurgard has a separate management team and board of trustees that makes its financing, capital allocation, and other significant decisions. In making resource allocation decisions with respect to our investment in Shurgard, the CODM reviews Shurgard’s net income. The segment presentation below includes our equity earnings from Shurgard. Presentation of Segment Information The following tables reconcile NOI (as applicable) and net income of each segment to our consolidated net income (amounts in thousands): Three months ended June 30, 2019 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 669,339 $ - $ - $ - $ - $ 669,339 Ancillary operations - 41,611 - - - 41,611 669,339 41,611 - - - 710,950 Cost of operations: Self-storage operations 196,083 - - - - 196,083 Ancillary operations - 11,653 - - - 11,653 196,083 11,653 - - - 207,736 Net operating income: Self-storage operations 473,256 - - - - 473,256 Ancillary operations - 29,958 - - - 29,958 473,256 29,958 - - - 503,214 Other components of net income (loss): Depreciation and amortization ( 126,859 ) - - - - ( 126,859 ) General and administrative - - - - ( 15,264 ) ( 15,264 ) Interest and other income - - - - 8,582 8,582 Interest expense - - - - ( 12,254 ) ( 12,254 ) Equity in earnings of unconsolidated real estate entities - - 14,864 4,050 - 18,914 Foreign currency exchange loss - - - - ( 5,218 ) ( 5,218 ) Gain on sale of real estate - - - - 341 341 Net income (loss) $ 346,397 $ 29,958 $ 14,864 $ 4,050 $ ( 23,813 ) $ 371,456 Three months ended June 30, 2018 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 645,206 $ - $ - $ - $ - $ 645,206 Ancillary operations - 40,322 - - - 40,322 645,206 40,322 - - - 685,528 Cost of operations: Self-storage operations 179,876 - - - - 179,876 Ancillary operations - 11,101 - - - 11,101 179,876 11,101 - - - 190,977 Net operating income: Self-storage operations 465,330 - - - - 465,330 Ancillary operations - 29,221 - - - 29,221 465,330 29,221 - - - 494,551 Other components of net income (loss): Depreciation and amortization ( 119,777 ) - - - - ( 119,777 ) General and administrative - - - - ( 31,329 ) ( 31,329 ) Interest and other income - - - - 6,328 6,328 Interest expense - - - - ( 8,388 ) ( 8,388 ) Equity in earnings of unconsolidated real estate entities - - 36,612 5,351 - 41,963 Foreign currency exchange gain - - - - 21,944 21,944 Net income (loss) $ 345,553 $ 29,221 $ 36,612 $ 5,351 $ ( 11,445 ) $ 405,292 Six months ended June 30, 2019 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 1,319,747 $ - $ - $ - $ - $ 1,319,747 Ancillary operations - 80,241 - - - 80,241 1,319,747 80,241 - - - 1,399,988 Cost of operations: Self-storage operations 389,739 - - - - 389,739 Ancillary operations - 22,198 - - - 22,198 389,739 22,198 - - - 411,937 Net operating income: Self-storage operations 930,008 - - - - 930,008 Ancillary operations - 58,043 - - - 58,043 930,008 58,043 - - - 988,051 Other components of net income (loss): Depreciation and amortization ( 248,800 ) - - - - ( 248,800 ) General and administrative - - - - ( 34,767 ) ( 34,767 ) Interest and other income - - - - 15,547 15,547 Interest expense - - - - ( 20,397 ) ( 20,397 ) Equity in earnings of unconsolidated real estate entities - - 28,584 8,002 - 36,586 Foreign currency exchange gain - - - - 2,573 2,573 Gain on sale of real estate - - - - 341 341 Net income (loss) $ 681,208 $ 58,043 $ 28,584 $ 8,002 $ ( 36,703 ) $ 739,134 Six months ended June 30, 2018 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 1,276,743 $ - $ - $ - $ - $ 1,276,743 Ancillary operations - 78,709 - - - 78,709 1,276,743 78,709 - - - 1,355,452 Cost of operations: Self-storage operations 362,063 - - - - 362,063 Ancillary operations - 21,741 - - - 21,741 362,063 21,741 - - - 383,804 Net operating income: Self-storage operations 914,680 - - - - 914,680 Ancillary operations - 56,968 - - - 56,968 914,680 56,968 - - - 971,648 Other components of net income (loss): Depreciation and amortization ( 237,756 ) - - - - ( 237,756 ) General and administrative - - - - ( 62,849 ) ( 62,849 ) Interest and other income - - - - 11,872 11,872 Interest expense - - - - ( 16,495 ) ( 16,495 ) Equity in earnings of unconsolidated real estate entities - - 60,443 12,315 - 72,758 Foreign currency exchange gain - - - - 10,126 10,126 Gain on sale of real estate - - - - 424 424 Net income (loss) $ 676,924 $ 56,968 $ 60,443 $ 12,315 $ ( 56,922 ) $ 749,728 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 12. Commitments and Contingencies Contingent Losses We are a party to various legal proceedings and subject to various claims and complaints; however, we believe that the likelihood of these contingencies resulting in a material loss to the Company, either individually or in the aggregate, is remote. Insurance and Loss Exposure We carry property, earthquake, general liability, employee medical insurance and workers compensation coverage through internationally recognized insurance carriers, subject to deductibles. Our deductible for general liability is $ 2.0 million per occurrence. Our annual deductible for property loss is $ 25.0 million per occurrence. This deductible decreases to $ 5.0 million once we reach $ 35.0 million in aggregate losses for occurrences that exceed $ 5.0 million. Insurance carriers’ aggregate limits on these policies of $ 75.0 million for property losses and $ 102.0 million for general liability losses are higher than estimates of maximum probable losses that could occur from individual catastrophic events determined in recent engineering and actuarial studies; however, in case of multiple catastrophic events, these limits could be exceeded. We reinsure a program that provides insurance to our customers from an independent third-party insurer. This program covers customer claims for losses to goods stored at our facilities as a result of specific named perils (earthquakes are not covered by this program), up to a maximum limit of $ 5,000 per storage unit. We reinsure all risks in this program, but purchase insurance to cover this exposure for a limit of $ 15.0 million for losses in excess of $ 5.0 million per occurrence. We are subject to licensing requirements and regulations in several states. Customers participate in the program at their option. At June 30, 2019, there were approximately 970,000 certificates held by our self-storage customers, representing aggregate coverage of approximately $ 3.1 billion. Construction Commitments We have construction commitments representing future expected payments for construction under contract totaling $ 87.1 million at June 30, 2019. We expect to pay approximately $ 45.2 million in the remainder of 2019 and $ 41.9 million in 2020 for these construction commitments. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Subsequent to June 30, 2019, we acquired or were under contract to acquire (subject to customary closing conditions) ten self-storage facilities with 815,000 net rentable square feet, for $ 86.5 million. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We have prepared the accompanying interim financial statements in accordance with U.S. generally accepted accounting principles (“GAAP”) as set forth in the Accounting Standards Codification of the Financial Accounting Standards Board (“FASB”), and in conformity with the rules and regulations of the Securities and Exchange Commission (“SEC”). In our opinion, the interim financial statements presented herein reflect all adjustments, of a normal recurring nature, that are necessary to fairly present the interim financial statements. Because they do not include all of the disclosures required by GAAP for complete annual financial statements, these interim financial statements should be read together with the audited financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Certain amounts previously reported in our June 30, 2018 financial statements have been reclassified to conform to the June 30, 2019 presentation, including separate presentation on our Statements of Cash Flows of our cash payments for real estate investments between cash paid for amounts incurred during the current period and amounts incurred during previous periods. |
Consolidation and Equity Method of Accounting | Consolidation and Equity Method of Accounting We consider entities to be Variable Interest Entities (“VIEs”) when they have insufficient equity to finance their activities without additional subordinated financial support provided by other parties, or the equity holders as a group do not have a controlling financial interest. We consolidate VIEs when we have (i) the power to direct the activities most significantly impacting economic performance, and (ii) either the obligation to absorb losses or the right to receive benefits from the VIE. We have no involvement with any material VIEs. We consolidate all other entities when we control them through voting shares or contractual rights. The entities we consolidate, for the period in which the reference applies, are referred to collectively as the “Subsidiaries,” and we eliminate intercompany transactions and balances. We account for our investments in entities that we do not consolidate but have significant influence over using the equity method of accounting. These entities, for the periods in which the reference applies, are referred to collectively as the “Unconsolidated Real Estate Entities,” eliminating intra-entity profits and losses and amortizing any differences between the cost of our investment and the underlying equity in net assets against equity in earnings as if the Unconsolidated Real Estate Entity were a consolidated subsidiary. Equity in earnings of unconsolidated real estate entities represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. When we begin consolidating an entity, we reflect our preexisting equity interest at book value. All changes in consolidation status are reflected prospectively. Collectively, at June 30, 2019, the Company and the Subsidiaries own 2,456 self-storage facilities and three commercial facilities in the U.S. At June 30, 2019, the Unconsolidated Real Estate Entities are comprised of PSB and Shurgard. |
Use of Estimates | Use of Estimates The financial statements and accompanying notes reflect our estimates and assumptions. Actual results could differ from those estimates and assumptions. |
Income Taxes | Income Taxes We have elected to be treated as a REIT, as defined in the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, we do not incur federal income tax if we distribute 100 % of our REIT taxable income each year, and if we meet certain organizational and operational rules. We believe we have met these REIT requirements for all periods presented herein. Accordingly, we have recorded no federal income tax expense related to our REIT taxable income. Our merchandise and tenant reinsurance operations are subject to corporate income tax and such taxes are included in ancillary cost of operations. We also incur income and other taxes in certain states, which are included in general and administrative expense. We recognize tax benefits of uncertain income tax positions that are subject to audit only if we believe it is more likely than not that the position would ultimately be sustained assuming the relevant taxing authorities had full knowledge of the relevant facts and circumstances of our positions. As of June 30, 2019, we had no tax benefits that were not recognized. |
Real Estate Facilities | Real Estate Facilities Real estate facilities are recorded at cost. We capitalize all costs incurred to acquire, develop, construct, renovate and improve facilities, including interest and property taxes incurred during the construction period. We allocate the net acquisition cost of acquired real estate facilities to the underlying land, buildings, and identified intangible assets based upon their respective individual estimated fair values. Costs associated with dispositions of real estate, as well as repairs and maintenance costs, are expensed as incurred. We depreciate buildings and improvements on a straight-line basis over estimated useful lives ranging generally between 5 to 25 years . When we sell a full or partial interest in a real estate facility without retaining a controlling interest following sale, we recognize a gain or loss on sale as if 100 % of the property was sold at fair value. If we retain a controlling interest following the sale, we record a noncontrolling interest for the book value of the partial interest sold, and recognize additional paid-in capital for the difference between the consideration received and the partial interest at book value. |
Other Assets | Other Assets Other assets primarily consist of rents receivable from our tenants, prepaid expenses, restricted cash and right-to-use assets. See “Recent Accounting Pronouncements and Guidance” below. |
Accrued and Other Liabilities | Accrued and Other Liabilities Accrued and other liabilities consist primarily of rents prepaid by our tenants, trade payables, property tax accruals, accrued payroll, accrued tenant reinsurance losses, lease liabilities, and contingent loss accruals when probable and estimable. See “Recent Accounting Pronouncements and Guidance” below. We believe the fair value of our accrued and other liabilities approximates book value, due primarily to the short period until repayment. We disclose the nature of significant unaccrued losses that are reasonably possible of occurring and, if estimable, a range of exposure. |
Cash Equivalents, Restricted Cash, Marketable Securities and Other Financial Instruments | Cash Equivalents, Restricted Cash, Marketable Securities and Other Financial Instruments Cash equivalents represent highly liquid financial instruments such as money market funds with daily liquidity or short-term commercial paper or treasury securities maturing within three months of acquisition. Cash and equivalents which are restricted from general corporate use are included in other assets. We believe that the book value of all such financial instruments for all periods presented approximates fair value, due to the short period to maturity. |
Fair Value | Fair Value As used herein, the term “fair value” is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Our estimates of fair value involve considerable judgment and are not necessarily indicative of the amounts that could be realized in current market exchanges. We estimate the fair value of our cash and equivalents, marketable securities, other assets, debt, and other liabilities by discounting the related future cash flows at a rate based upon quoted interest rates for securities that have similar characteristics such as credit quality and time to maturity. Such quoted interest rates are referred to generally as “Level 2” inputs. We use significant judgment to estimate fair values of investments in real estate, goodwill, and other intangible assets. In estimating their values, we consider significant unobservable inputs such as market prices of land, market capitalization rates, expected returns, earnings multiples, projected levels of earnings, costs of construction, and functional depreciation. These inputs are referred to generally as “Level 3” inputs. |
Currency and Credit Risk | Currency and Credit Risk Financial instruments that are exposed to credit risk consist primarily of cash and equivalents, certain portions of other assets including rents receivable from our tenants and restricted cash. Cash equivalents we invest in are either money market funds with a rating of at least AAA by Standard & Poor’s, commercial paper that is rated A1 by Standard & Poor’s or deposits with highly rated commercial banks. At June 30, 2019, due primarily to our investment in Shurgard (Note 4) and our notes payable denominated in Euros (Note 6), our operating results and financial position are affected by fluctuations in currency exchange rates between the Euro, and to a lesser extent, other European currencies, against the U.S. Dollar. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets are comprised of goodwill, the “Shurgard” trade name, acquired customers in place, and leasehold interests in land. Goodwill totaled $ 174.6 million at June 30, 2019 and December 31, 2018. The “Shurgard” trade name, which is used by Shurgard pursuant to a fee-based licensing agreement, has a book value of $ 18.8 million at June 30, 2019 and December 31, 2018. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Acquired customers in place and leasehold interests in land are finite-lived assets and are amortized relative to the benefit of the customers in place or the benefit to land lease expense to each period. At June 30, 2019, these intangibles had a net book value of $ 16.8 million ($ 16.5 million at December 31, 2018). Accumulated amortization totaled $ 29.2 million at June 30, 2019 ($ 28.9 million at December 31, 2018), and amortization expense of $ 8.4 million and $ 8.8 million was recorded in the six months ended June 30, 2019 and 2018, respectively. The estimated future amortization expense for our finite-lived intangible assets at June 30, 2019 is approximately $ 6.7 million in the remainder of 2019, $ 5.0 million in 2020 and $ 5.1 million thereafter. During the six months ended June 30, 2019, intangibles increased $ 8.7 million in connection with the acquisition of self-storage facilities (Note 3). |
Evaluation of Asset Impairment | Evaluation of Asset Impairment We evaluate our real estate and finite-lived intangible assets for impairment each quarter. If there are indicators of impairment and we determine that the asset is not recoverable from future undiscounted cash flows to be received through the asset’s remaining life (or, if earlier, the expected disposal date), we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value or net proceeds from expected disposal. We evaluate our investments in unconsolidated real estate entities for impairment on a quarterly basis. We record an impairment charge to the extent the carrying amount exceeds estimated fair value, when we believe any such shortfall is other than temporary. We evaluate goodwill for impairment annually and whenever relevant events, circumstances and other related factors indicate that fair value of the related reporting unit may be less than the carrying amount. If we determine that the fair value of the reporting unit exceeds the aggregate carrying amount, no impairment charge is recorded. Otherwise, we record an impairment charge to the extent the carrying amount of the goodwill exceeds the amount that would be allocated to goodwill if the reporting unit were acquired for estimated fair value. We evaluate other indefinite-lived intangible assets, such as the “Shurgard” trade name for impairment at least annually and whenever relevant events, circumstances and other related factors indicate that the fair value is less than the carrying amount. When we conclude that it is likely that the asset is not impaired, we do not record an impairment charge and no further analysis is performed. Otherwise, we record an impairment charge to the extent the carrying amount exceeds the asset’s estimated fair value. No impairments were recorded in any of our evaluations for any period presented herein. |
Revenue and Expense Recognition | Revenue and Expense Recognition Revenues from self-storage facilities, which are primarily composed of rental income earned pursuant to month-to-month leases, as well as associated late charges and administrative fees, are recognized as earned. Promotional discounts reduce rental income over the promotional period, which is generally one month. Ancillary revenues and interest and other income are recognized when earned. We accrue for property tax expense based upon actual amounts billed and, in some circumstances, estimates when bills or assessments have not been received from the taxing authorities. If these estimates are incorrect, the timing and amount of expense recognition could be incorrect. Cost of operations (including advertising expenditures), general and administrative expense, and interest expense are expensed as incurred. |
Foreign Currency Exchange Translation | Foreign Currency Exchange Translation The local currency (primarily the Euro) is the functional currency for our interests in foreign operations. The related balance sheet amounts are translated into U.S. Dollars at the exchange rates at the respective financial statement date, while amounts on our statements of income are translated at the average exchange rates during the respective period. When financial instruments denominated in a currency other than the U.S. Dollar are expected to be settled in cash in the foreseeable future, the impact of changes in the U.S. Dollar equivalent are reflected in current earnings. The Euro was translated at exchange rates of approximately 1.137 U.S. Dollars per Euro at June 30, 2019 ( 1.144 at December 31, 2018), and average exchange rates of 1.124 and 1.192 for the three months ended June 30, 2019 and 2018, respectively, and average exchange rates of 1.130 and 1.210 for the six months ended June 30, 2019 and 2018, respectively. Cumulative translation adjustments, to the extent not included in cumulative net income, are included in equity as a component of accumulated other comprehensive income (loss). |
Comprehensive Income | Comprehensive Income Total comprehensive income represents net income, adjusted for changes in other comprehensive income (loss) for the applicable period. The aggregate foreign currency exchange gains and losses reflected on our statements of comprehensive income are comprised primarily of foreign currency exchange gains and losses on our investment in Shurgard and our unsecured notes denominated in Euros. |
Recent Accounting Pronouncements And Guidance | Recent Accounting Pronouncements and Guidance In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. The new standard requires a modified-retrospective approach to adoption and became effective for interim and annual periods beginning on January 1, 2019. In July 2018, the FASB further amended this standard to allow for a new transition method that offers the option to use the effective date as the date of initial application and not adjust the comparative-period financial information. We adopted the new standard effective January 1, 2019, using the new transition method, recording a total of $ 38.7 million in right of use assets, reflected in other assets, and substantially the same amount in lease liabilities, reflected in accrued and other liabilities, for leases where we are the lessee (principally ground leases and office leases) . The lease liabilities are recognized based on the present value of the remaining lease payments for each operating lease using each respective remaining lease term and a corresponding estimated incremental borrowing rate. We estimated the incremental borrowing rate primarily by reference to average yield spread on debt issuances by companies of a similar credit rating as us, and the treasury yields as of January 1, 2019. We had no material amount of leases covered by the standard where we are the lessor (principally our storage leases) because substantially all of such leases are month to month. For leases where we are the lessee or the lessor, we applied (i) the package of practical expedients to not reassess prior conclusions related to contracts that are or that contain leases, lease classification and initial direct costs, (ii) the hindsight practical expedient to determine the lease term and in assessing impairment of the right of use assets, and (iii) the easement practical expedient to not assess whether existing or expired land easements that were not previously accounted for as leases under ASC 840 are or contain a lease under this new standard. In addition, for leases where we are the lessee, we also elected to (a) not apply the new standard to our leases with an original term of 12 months or less, and (b) not separate lease and associated non-lease components. |
Net Income Per Common Share | Net Income per Common Share Net income is allocated to (i) noncontrolling interests based upon their share of the net income of the Subsidiaries, (ii) preferred shareholders, to the extent redemption cost exceeds the related original net issuance proceeds (an “EITF D-42 allocation”), and (iii) the remaining net income is allocated to each of our equity securities based upon the dividends declared or accumulated during the period, combined with participation rights in undistributed earnings. Basic and diluted net income per common share are each calculated based upon net income allocable to common shareholders presented on the face of our income statement, divided by (i) in the case of basic net income per common share, weighted average common shares, and (ii) in the case of diluted income per share, weighted average common shares adjusted for the impact, if dilutive, of stock options outstanding (Note 10). The following table reconciles from basic to diluted common shares outstanding (amounts in thousands): Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,253 173,932 174,215 173,912 Net effect of dilutive stock options - based on treasury stock method 289 292 244 274 Diluted weighted average common shares outstanding 174,542 174,224 174,459 174,186 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Net Income Per Common Share | Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,253 173,932 174,215 173,912 Net effect of dilutive stock options - based on treasury stock method 289 292 244 274 Diluted weighted average common shares outstanding 174,542 174,224 174,459 174,186 |
Real Estate Facilities (Tables)
Real Estate Facilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Real Estate Facilities [Abstract] | |
Schedule Of Real Estate Activities | Six Months Ended June 30, 2019 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 15,296,844 Costs incurred for capital expenditures to maintain real estate facilities 72,559 Acquisitions 189,273 Dispositions ( 102 ) Developed or expanded facilities opened for operation 223,171 Ending balance 15,781,745 Accumulated depreciation: Beginning balance ( 6,140,072 ) Depreciation expense ( 235,065 ) Dispositions 5 Ending balance ( 6,375,132 ) Construction in process: Beginning balance 285,339 Costs incurred for development and expansion of real estate facilities 129,706 Developed or expanded facilities opened for operation ( 223,171 ) Ending balance 191,874 Total real estate facilities at June 30, 2019 $ 9,598,487 |
Investments In Unconsolidated_2
Investments In Unconsolidated Real Estate Entities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments In Unconsolidated Real Estate Entities [Abstract] | |
Schedule Of Investments In Real Estate Entities And Equity In Earnings Of Real Estate Entities | Investments in Unconsolidated Real Estate Entities at June 30, 2019 December 31, 2018 PSB $ 432,743 $ 434,533 Shurgard 345,780 349,455 Total $ 778,523 $ 783,988 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 PSB $ 14,864 $ 36,612 $ 28,584 $ 60,443 Shurgard 4,050 5,351 8,002 12,315 Total $ 18,914 $ 41,963 $ 36,586 $ 72,758 |
Notes Payable (Tables)
Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Payable [Abstract] | |
Notes Payable | Amounts at June 30, 2019 Coupon Effective Unamortized Book Fair Rate Rate Principal Costs Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 2.370 % 2.483 % $ 500,000 $ ( 1,683 ) $ 498,317 $ 502,766 Notes due September 15, 2027 3.094 % 3.218 % 500,000 ( 4,340 ) 495,660 509,595 Notes due May 1, 2029 3.385 % 3.459 % 500,000 ( 3,031 ) 496,969 521,481 1,500,000 ( 9,054 ) 1,490,946 1,533,842 Euro Denominated Unsecured Debt Notes due April 12, 2024 1.540 % 1.540 % 113,712 - 113,712 118,086 Notes due November 3, 2025 2.175 % 2.175 % 275,192 - 275,192 297,656 388,904 - 388,904 415,742 Mortgage Debt , secured by 27 real estate facilities with a net book value of $ 109.5 million 4.051 % 4.015 % 28,260 - 28,260 29,013 $ 1,917,164 $ ( 9,054 ) $ 1,908,110 $ 1,978,597 Amounts at December 31, 2018 Book Fair Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 $ 498,053 $ 482,017 Notes due September 15, 2027 495,396 469,055 Notes due May 1, 2029 - - 993,449 951,072 Euro Denominated Unsecured Debt Notes due April 12, 2024 114,449 115,964 Notes due November 3, 2025 276,982 286,078 391,431 402,042 Mortgage Debt 27,403 27,613 $ 1,412,283 $ 1,380,727 |
Maturities Of Notes Payable | Unsecured Mortgage Debt Debt Total Remainder of 2019 $ - $ 971 $ 971 2020 - 2,015 2,015 2021 - 1,883 1,883 2022 500,000 2,584 502,584 2023 - 19,226 19,226 Thereafter 1,388,904 1,581 1,390,485 $ 1,888,904 $ 28,260 $ 1,917,164 Weighted average effective rate 2.8 % 4.0 % 2.9 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders’ Equity [Abstract] | |
Preferred Shares Outstanding | At June 30, 2019 At December 31, 2018 Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series U 6/15/2017 5.625 % 11,500 $ 287,500 11,500 $ 287,500 Series V 9/20/2017 5.375 % 19,800 495,000 19,800 495,000 Series W 1/16/2018 5.200 % 20,000 500,000 20,000 500,000 Series X 3/13/2018 5.200 % 9,000 225,000 9,000 225,000 Series Y 3/17/2019 6.375 % - - 11,400 285,000 Series Z 6/4/2019 6.000 % - - 11,500 287,500 Series A 12/2/2019 5.875 % 7,600 190,000 7,600 190,000 Series B 1/20/2021 5.400 % 12,000 300,000 12,000 300,000 Series C 5/17/2021 5.125 % 8,000 200,000 8,000 200,000 Series D 7/20/2021 4.950 % 13,000 325,000 13,000 325,000 Series E 10/14/2021 4.900 % 14,000 350,000 14,000 350,000 Series F 6/2/2022 5.150 % 11,200 280,000 11,200 280,000 Series G 8/9/2022 5.050 % 12,000 300,000 12,000 300,000 Series H 3/11/2024 5.600 % 11,400 285,000 - - Total Preferred Shares 149,500 $ 3,737,500 161,000 $ 4,025,000 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Information [Abstract] | |
Summary Of Segment Information | Three months ended June 30, 2019 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 669,339 $ - $ - $ - $ - $ 669,339 Ancillary operations - 41,611 - - - 41,611 669,339 41,611 - - - 710,950 Cost of operations: Self-storage operations 196,083 - - - - 196,083 Ancillary operations - 11,653 - - - 11,653 196,083 11,653 - - - 207,736 Net operating income: Self-storage operations 473,256 - - - - 473,256 Ancillary operations - 29,958 - - - 29,958 473,256 29,958 - - - 503,214 Other components of net income (loss): Depreciation and amortization ( 126,859 ) - - - - ( 126,859 ) General and administrative - - - - ( 15,264 ) ( 15,264 ) Interest and other income - - - - 8,582 8,582 Interest expense - - - - ( 12,254 ) ( 12,254 ) Equity in earnings of unconsolidated real estate entities - - 14,864 4,050 - 18,914 Foreign currency exchange loss - - - - ( 5,218 ) ( 5,218 ) Gain on sale of real estate - - - - 341 341 Net income (loss) $ 346,397 $ 29,958 $ 14,864 $ 4,050 $ ( 23,813 ) $ 371,456 Three months ended June 30, 2018 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 645,206 $ - $ - $ - $ - $ 645,206 Ancillary operations - 40,322 - - - 40,322 645,206 40,322 - - - 685,528 Cost of operations: Self-storage operations 179,876 - - - - 179,876 Ancillary operations - 11,101 - - - 11,101 179,876 11,101 - - - 190,977 Net operating income: Self-storage operations 465,330 - - - - 465,330 Ancillary operations - 29,221 - - - 29,221 465,330 29,221 - - - 494,551 Other components of net income (loss): Depreciation and amortization ( 119,777 ) - - - - ( 119,777 ) General and administrative - - - - ( 31,329 ) ( 31,329 ) Interest and other income - - - - 6,328 6,328 Interest expense - - - - ( 8,388 ) ( 8,388 ) Equity in earnings of unconsolidated real estate entities - - 36,612 5,351 - 41,963 Foreign currency exchange gain - - - - 21,944 21,944 Net income (loss) $ 345,553 $ 29,221 $ 36,612 $ 5,351 $ ( 11,445 ) $ 405,292 Six months ended June 30, 2019 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 1,319,747 $ - $ - $ - $ - $ 1,319,747 Ancillary operations - 80,241 - - - 80,241 1,319,747 80,241 - - - 1,399,988 Cost of operations: Self-storage operations 389,739 - - - - 389,739 Ancillary operations - 22,198 - - - 22,198 389,739 22,198 - - - 411,937 Net operating income: Self-storage operations 930,008 - - - - 930,008 Ancillary operations - 58,043 - - - 58,043 930,008 58,043 - - - 988,051 Other components of net income (loss): Depreciation and amortization ( 248,800 ) - - - - ( 248,800 ) General and administrative - - - - ( 34,767 ) ( 34,767 ) Interest and other income - - - - 15,547 15,547 Interest expense - - - - ( 20,397 ) ( 20,397 ) Equity in earnings of unconsolidated real estate entities - - 28,584 8,002 - 36,586 Foreign currency exchange gain - - - - 2,573 2,573 Gain on sale of real estate - - - - 341 341 Net income (loss) $ 681,208 $ 58,043 $ 28,584 $ 8,002 $ ( 36,703 ) $ 739,134 Six months ended June 30, 2018 Self-Storage Operations Ancillary Operations Investment in PSB Investment in Shurgard Other Items Not Allocated to Segments Total (Amounts in thousands) Revenues: Self-storage operations $ 1,276,743 $ - $ - $ - $ - $ 1,276,743 Ancillary operations - 78,709 - - - 78,709 1,276,743 78,709 - - - 1,355,452 Cost of operations: Self-storage operations 362,063 - - - - 362,063 Ancillary operations - 21,741 - - - 21,741 362,063 21,741 - - - 383,804 Net operating income: Self-storage operations 914,680 - - - - 914,680 Ancillary operations - 56,968 - - - 56,968 914,680 56,968 - - - 971,648 Other components of net income (loss): Depreciation and amortization ( 237,756 ) - - - - ( 237,756 ) General and administrative - - - - ( 62,849 ) ( 62,849 ) Interest and other income - - - - 11,872 11,872 Interest expense - - - - ( 16,495 ) ( 16,495 ) Equity in earnings of unconsolidated real estate entities - - 60,443 12,315 - 72,758 Foreign currency exchange gain - - - - 10,126 10,126 Gain on sale of real estate - - - - 424 424 Net income (loss) $ 676,924 $ 56,968 $ 60,443 $ 12,315 $ ( 56,922 ) $ 749,728 |
Description Of The Business (Na
Description Of The Business (Narrative) (Details) ft² in Millions | 6 Months Ended | ||||
Jun. 30, 2019ft²stateitemcountyshares | Dec. 31, 2018shares | Oct. 15, 2018 | Oct. 14, 2018 | Sep. 30, 2018 | |
Public Storage [Member] | |||||
Nature Of Business [Line Items] | |||||
PSA self-storage facilities | item | 2,456 | ||||
Net rentable square feet | 166 | ||||
Number of states with facilities | state | 38 | ||||
Public Storage [Member] | Commercial and Retail Space [Member] | |||||
Nature Of Business [Line Items] | |||||
Net rentable square feet | 0.9 | ||||
Shurgard [Member] | |||||
Nature Of Business [Line Items] | |||||
Net rentable square feet | 13 | ||||
Shares owned | shares | 31,268,459 | 31,268,459 | |||
Ownership interest, percentage | 35.00% | 35.00% | 49.00% | 49.00% | |
Number of facilities owned by Shurgard Europe | item | 231 | ||||
Direct interest in self-storage facilities, number of countries | county | 7 | ||||
PSB [Member] | |||||
Nature Of Business [Line Items] | |||||
Net rentable square feet | 28 | ||||
Number of states with facilities | state | 6 | ||||
Ownership interest, percentage | 42.00% |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Consolidation And Equity Method Of Accounting) (Narrative) (Details) - U.S. [Member] | Jun. 30, 2019item |
Summary Of Significant Accounting Policies [Line Items] | |
Number of self-storage facilities owned | 2,456 |
Commercial facilities in U.S. | 3 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Income Taxes) (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Summary Of Significant Accounting Policies [Abstract] | |
Percentage of taxable income distributed for exemption of federal income tax | 100.00% |
Income tax expense | $ 0 |
Unrecognized tax benefits | $ 0 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Real Estate Facilities) (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Percentage of interest in real estate sold at fair value | 100.00% |
Maximum [Member] | |
Estimated useful lives of buildings and improvements | 25 years |
Minimum [Member] | |
Estimated useful lives of buildings and improvements | 5 years |
Summary Of Significant Accoun_7
Summary Of Significant Accounting Policies (Goodwill And Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | |||
Goodwill balance | $ 174.6 | $ 174.6 | |
Shurgard trade name, book value | 18.8 | 18.8 | |
In-place and leasehold interests in land, net book value | 16.8 | 16.5 | |
In-place and leasehold interests in land, accumulated amortization | 29.2 | $ 28.9 | |
In-place and leasehold interests in land, amortization expense | 8.4 | $ 8.8 | |
Estimated future amortization expense, remainder of 2019 | 6.7 | ||
Estimated future amortization expense, 2020 | 5 | ||
Estimated future amortization expense, thereafter | 5.1 | ||
Increase in in-place and leasehold interests in land | $ 8.7 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Evaluation Of Asset Impairment) (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Impairments | $ 0 | $ 0 |
Summary Of Significant Accoun_9
Summary Of Significant Accounting Policies (Foreign Currency Exchange Translation) (Narrative) (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Exchange rate translation | 1.137 | 1.137 | 1.144 | ||
Weighted Average [Member] | |||||
Trading Activity, Gains and Losses, Net [Line Items] | |||||
Exchange rate | 1.124 | 1.192 | 1.130 | 1.210 |
Summary Of Significant Accou_10
Summary Of Significant Accounting Policies (Recent Accounting Pronouncements and Guidance) (Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Summary Of Significant Accounting Policies [Abstract] | |
Right-of-use assets from operating leases | $ 38.7 |
Summary Of Significant Accou_11
Summary Of Significant Accounting Policies (Net Income Per Common Share) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary Of Significant Accounting Policies [Abstract] | ||||
Basic weighted average common shares outstanding | 174,253 | 173,932 | 174,215 | 173,912 |
Net effect of dilutive stock options - based on treasury stock method | 289 | 292 | 244 | 274 |
Diluted weighted average common shares outstanding | 174,542 | 174,224 | 174,459 | 174,186 |
Real Estate Facilities (Narrati
Real Estate Facilities (Narrative) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($)ft²item | Jun. 30, 2018USD ($) | |
Schedule Of Real Estate Facilities [Line Items] | ||
Cash to acquire self-storage facilities | $ 196,185 | $ 33,930 |
Payments for development and expansion of real estate facilities | 146,400 | 167,100 |
Payments for development and expansion of real estate facilities for: Costs incurred in previous periods | 70,624 | 45,939 |
Costs incurred for development and expansion of real estate facilities | 129,706 | |
Unpaid costs incurred for development and expansion of real estate facilities | 54,000 | |
Payments for capital expenditures to maintain real estate facilities | 71,000 | 56,900 |
Payments for capital expenditures to maintain real estate facilities for: Costs incurred in previous periods | 9,391 | $ 12,728 |
Costs incurred for capital expenditures to maintain real estate facilities | 72,559 | |
Unpaid costs incurred for capital expenditures to maintain real estate facilities | $ 10,900 | |
Acquisition Of Self-Storage Facilities Other Investments [Member] | ||
Schedule Of Real Estate Facilities [Line Items] | ||
Number of operating self-storage facilities | item | 22 | |
Net rentable square feet | ft² | 1,428,000 | |
Total cost of acquisition | $ 198,000 | |
Cash to acquire self-storage facilities | 196,200 | |
Mortgage debt assumed | 1,800 | |
Allocated to intangible assets | 8,700 | |
Newly Developed and Expansion Projects [Member] | Completed Developed and Expansion Project [Member] | ||
Schedule Of Real Estate Facilities [Line Items] | ||
Aggregate costs to develop and expand | $ 223,200 | |
Addtional net rentable square feet | ft² | 2,700,000 |
Real Estate Facilities (Schedul
Real Estate Facilities (Schedule Of Real Estate Activities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Real Estate Facilities [Abstract] | ||
Beginning balance (Operating facilities, at cost) | $ 15,296,844 | |
Costs incurred for capital expenditures to maintain real estate facilities | 72,559 | |
Acquisitions | 189,273 | |
Dispositions | (102) | |
Developed or expanded facilities opened for operation | 223,171 | |
Ending balance (Operating facilities, at cost) | 15,781,745 | |
Beginning balance (Accumulated depreciation) | (6,140,072) | |
Depreciation expense | (235,065) | |
Dispositions | 5 | |
Ending balance (Accumulated depreciation) | (6,375,132) | |
Beginning balance (Construction in process) | 285,339 | |
Costs incurred for development and expansion of real estate facilities | 129,706 | |
Developed or expanded facilities opened for operations | (223,171) | |
Ending balance (Construction in process) | 191,874 | |
Total real estate facilities | $ 9,598,487 | $ 9,442,111 |
Investments In Unconsolidated_3
Investments In Unconsolidated Real Estate Entities (Investment in PSB) (Narrative) (Details) - PSB [Member] - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Common stock owned of PSB | 7,158,354 | 7,158,354 | |
Limited partnership units in PSB | 7,305,355 | 7,305,355 | |
Ownership interest, percentage | 42.00% | ||
Limited partnership units option to convert to common stock, conversion basis. | 1 | ||
Closing price per share | $ 168.53 | ||
Market value | $ 2,400 | ||
Cash distribution received | 30.4 | $ 24.6 | |
Basis differential | 31.9 | $ 32.3 | |
Amortization of basis differential | $ 0.4 | $ 0.9 |
Investments In Unconsolidated_4
Investments In Unconsolidated Real Estate Entities (Investment In Shurgard) (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018$ / shares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)€ / sharesshares | Jun. 30, 2018USD ($)$ / shares | Jun. 30, 2019€ / shares | Dec. 31, 2018shares | Oct. 15, 2018€ / sharesshares | Oct. 14, 2018 | Sep. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||
Exchange rate translation | 1.137 | 1.137 | 1.137 | 1.144 | ||||||
Common stock dividends paid per share | $ / shares | $ 2 | $ 2 | $ 4 | $ 4 | ||||||
Shurgard [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Shares issued | shares | 25,000,000 | |||||||||
Price per share | € / shares | € 23 | |||||||||
Shares owned | shares | 31,268,459 | 31,268,459 | 31,268,459 | 31,268,459 | ||||||
Ownership interest, percentage | 35.00% | 35.00% | 35.00% | 35.00% | 49.00% | 49.00% | ||||
Closing price per share | € / shares | € 31.80 | |||||||||
Exchange rate translation | 1.137 | 1.137 | 1.137 | |||||||
Market value | $ 1,100 | $ 1,100 | $ 1,100 | |||||||
Common stock dividends paid per share | € / shares | $ 0.22 | |||||||||
Cash distribution received | 7.7 | |||||||||
Change in investment from foreign currency exchange rates | (3.5) | $ (9.4) | ||||||||
Trademark License [Member] | Shurgard [Member] | ||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||
Cash distribution received | $ 0.5 | $ 0.7 |
Investments In Unconsolidated_5
Investments In Unconsolidated Real Estate Entities (Schedule Of Investments In Real Estate Entities And Equity In Earnings Of Real Estate Entities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | $ 778,523 | $ 778,523 | $ 783,988 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | 18,914 | $ 41,963 | 36,586 | $ 72,758 | |
PSB [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | 432,743 | 432,743 | 434,533 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | 14,864 | 36,612 | 28,584 | 60,443 | |
Shurgard [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in Unconsolidated Real Estate Entities | 345,780 | 345,780 | $ 349,455 | ||
Equity in Earnings of Unconsolidated Real Estate Entities | $ 4,050 | $ 5,351 | $ 8,002 | $ 12,315 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - Credit Facility [Member] - USD ($) | Apr. 19, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Jul. 30, 2019 |
Schedule Of Debt [Line Items] | ||||||
Credit Facility borrowing capacity | $ 500,000,000 | $ 500,000,000 | ||||
Expiration of Credit Facility | Apr. 19, 2024 | Mar. 31, 2020 | ||||
Interest rate spread (LIBOR) | 0.70% | 0.85% | 0.70% | |||
Frequency of commitment fee | quarterly | |||||
Commitment fee percentage | 0.07% | 0.08% | 0.07% | |||
Outstanding borrowings | $ 0 | $ 0 | ||||
Reduction in borrowing capacity to amount of letters of credit | $ 15,900,000 | $ 16,200,000 | ||||
Minimum [Member] | ||||||
Schedule Of Debt [Line Items] | ||||||
Interest rate spread (LIBOR) | 0.70% | |||||
Commitment fee percentage | 0.07% | |||||
Maximum [Member] | ||||||
Schedule Of Debt [Line Items] | ||||||
Interest rate spread (LIBOR) | 1.35% | |||||
Commitment fee percentage | 0.25% | |||||
Subsequent Event [Member] | ||||||
Schedule Of Debt [Line Items] | ||||||
Outstanding borrowings | $ 0 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) | Apr. 12, 2019USD ($) | Sep. 18, 2017USD ($)item | Apr. 12, 2016USD ($) | Nov. 03, 2015USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018 | Apr. 12, 2016EUR (€) | Nov. 03, 2015EUR (€) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from issuance of debt | $ 496,900,000 | |||||||||||
Foreign currency exchange (loss) gain | $ (5,218,000) | $ 21,944,000 | 2,573,000 | $ 10,126,000 | ||||||||
Cash paid for interest expense | 21,800,000 | 18,300,000 | ||||||||||
Interest capitalized as real estate | 2,000,000 | $ 2,300,000 | 2,000,000 | $ 2,300,000 | $ 2,000,000 | |||||||
Mortgage Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Mortgage debt assumed | $ 1,800,000 | $ 1,800,000 | $ 1,800,000 | |||||||||
Interest rate | 3.90% | 3.90% | 3.90% | |||||||||
Mortgage Notes [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 3.20% | 3.20% | 3.20% | |||||||||
Maturity date | Jan. 1, 2022 | |||||||||||
Mortgage Notes [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 7.10% | 7.10% | 7.10% | |||||||||
Maturity date | Jul. 1, 2030 | |||||||||||
U.S. Dollar Denominated Unsecured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance date | Sep. 18, 2017 | |||||||||||
Number of tranches | item | 2 | |||||||||||
Debt issuance amount | $ 500,000,000 | |||||||||||
Debt issuance costs | $ 7,900,000 | |||||||||||
Debt to Total Assets ratio | 6.00% | |||||||||||
Adjusted EBTIDA to interest Expense ratio | 62 | |||||||||||
U.S. Dollar Denominated Unsecured Debt [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Adjusted EBTIDA to interest Expense ratio | 1.5 | |||||||||||
U.S. Dollar Denominated Unsecured Debt [Member] | Notes Due May 1, 2029 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance amount | $ 500,000,000 | |||||||||||
Debt issuance costs | $ 3,100,000 | |||||||||||
Interest rate | 3.385% | 3.385% | 3.385% | 3.385% | ||||||||
Maturity date | May 1, 2029 | May 1, 2029 | ||||||||||
U.S. Dollar Denominated Unsecured Debt [Member] | Maximum Covenant [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt to Total Assets ratio | 65.00% | |||||||||||
Euro Denominated Unsecured Debt [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of tranches | item | 2 | |||||||||||
Euro Denominated Unsecured Debt [Member] | Notes Due November 3, 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance date | Nov. 3, 2015 | |||||||||||
Debt issuance amount | € | € 242,000,000 | |||||||||||
Proceeds from issuance of debt | $ 264,300,000 | |||||||||||
Interest rate | 2.175% | 2.175% | 2.175% | |||||||||
Maturity date | Nov. 3, 2025 | Nov. 3, 2025 | ||||||||||
Euro Denominated Unsecured Debt [Member] | Notes Due April 12, 2024 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Issuance date | Apr. 12, 2016 | |||||||||||
Debt issuance amount | € | € 100,000,000 | |||||||||||
Proceeds from issuance of debt | $ 113,600,000 | |||||||||||
Interest rate | 1.54% | 1.54% | 1.54% | |||||||||
Maturity date | Apr. 12, 2024 | Apr. 12, 2024 |
Notes Payable (Notes Payable) (
Notes Payable (Notes Payable) (Details) | Apr. 12, 2019 | Jun. 30, 2019USD ($)item | Dec. 31, 2018USD ($) |
Principal | $ 1,917,164,000 | ||
Unamortized Costs | (9,054,000) | ||
Book Value | 1,908,110,000 | $ 1,412,283,000 | |
Fair Value | 1,978,597,000 | 1,380,727,000 | |
U.S. Dollar Denominated Unsecured Debt [Member] | |||
Principal | 1,500,000,000 | ||
Unamortized Costs | (9,054,000) | ||
Book Value | 1,490,946,000 | 993,449,000 | |
Fair Value | $ 1,533,842,000 | 951,072,000 | |
U.S. Dollar Denominated Unsecured Debt [Member] | Notes Due September 15, 2022 [Member] | |||
Coupon Rate | 2.37% | ||
Effective Rate | 2.483% | ||
Principal | $ 500,000,000 | ||
Unamortized Costs | (1,683,000) | ||
Book Value | 498,317,000 | 498,053,000 | |
Fair Value | $ 502,766,000 | $ 482,017,000 | |
Maturity date | Sep. 15, 2022 | Sep. 15, 2022 | |
U.S. Dollar Denominated Unsecured Debt [Member] | Notes Due September 15, 2027 [Member] | |||
Coupon Rate | 3.094% | ||
Effective Rate | 3.218% | ||
Principal | $ 500,000,000 | ||
Unamortized Costs | (4,340,000) | ||
Book Value | 495,660,000 | $ 495,396,000 | |
Fair Value | $ 509,595,000 | $ 469,055,000 | |
Maturity date | Sep. 15, 2027 | Sep. 15, 2027 | |
U.S. Dollar Denominated Unsecured Debt [Member] | Notes Due May 1, 2029 [Member] | |||
Coupon Rate | 3.385% | 3.385% | |
Effective Rate | 3.459% | ||
Principal | $ 500,000,000 | ||
Unamortized Costs | (3,031,000) | ||
Book Value | 496,969,000 | ||
Fair Value | $ 521,481,000 | ||
Maturity date | May 1, 2029 | May 1, 2029 | |
Euro Denominated Unsecured Debt [Member] | |||
Principal | $ 388,904,000 | ||
Book Value | 388,904,000 | 391,431,000 | |
Fair Value | $ 415,742,000 | 402,042,000 | |
Euro Denominated Unsecured Debt [Member] | Notes Due April 12, 2024 [Member] | |||
Coupon Rate | 1.54% | ||
Effective Rate | 1.54% | ||
Principal | $ 113,712,000 | ||
Book Value | 113,712,000 | 114,449,000 | |
Fair Value | $ 118,086,000 | $ 115,964,000 | |
Maturity date | Apr. 12, 2024 | Apr. 12, 2024 | |
Euro Denominated Unsecured Debt [Member] | Notes Due November 3, 2025 [Member] | |||
Coupon Rate | 2.175% | ||
Effective Rate | 2.175% | ||
Principal | $ 275,192,000 | ||
Book Value | 275,192,000 | $ 276,982,000 | |
Fair Value | $ 297,656,000 | $ 286,078,000 | |
Maturity date | Nov. 3, 2025 | Nov. 3, 2025 | |
Mortgage Debt [Member] | |||
Coupon Rate | 4.051% | ||
Effective Rate | 4.015% | ||
Principal | $ 28,260,000 | ||
Book Value | 28,260,000 | $ 27,403,000 | |
Fair Value | 29,013,000 | $ 27,613,000 | |
Mortgage Debt [Member] | Secured By Real Estate Facilities [Member] | |||
Net book value of real estate facilities securing notes payable | $ 109,500,000 | ||
Real estate facilities securing debt | item | 27 |
Notes Payable (Maturities Of No
Notes Payable (Maturities Of Notes Payable) (Details) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | |
Total debt | $ 1,917,164,000 |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
2022 | 500,000,000 |
Thereafter | 1,388,904,000 |
Total debt | $ 1,888,904,000 |
Weighted average effective rate | 2.80% |
Mortgage Notes [Member] | |
Debt Instrument [Line Items] | |
Remainder of 2019 | $ 971,000 |
2020 | 2,015,000 |
2021 | 1,883,000 |
2022 | 2,584,000 |
2023 | 19,226,000 |
Thereafter | 1,581,000 |
Total debt | $ 28,260,000 |
Weighted average effective rate | 4.00% |
Total [Member] | |
Debt Instrument [Line Items] | |
Remainder of 2019 | $ 971,000 |
2020 | 2,015,000 |
2021 | 1,883,000 |
2022 | 502,584,000 |
2023 | 19,226,000 |
Thereafter | 1,390,485,000 |
Total debt | $ 1,917,164,000 |
Weighted average effective rate | 2.90% |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)itemshares | Jun. 30, 2018USD ($) | |
Noncontrolling Interest [Line Items] | ||||
Distributions paid | $ 1,730 | $ 1,340 | $ 3,533 | $ 3,055 |
Contributions by noncontrolling interests | $ 1,106 | 49 | $ 1,302 | 752 |
Noncontrolling Interests [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Permanent noncontrolling interest in subsidiaries, number of self-storage facilities | item | 19 | 19 | ||
Permanent noncontrolling interest in subsidiaries, number of self-storage facilities under construction | item | 5 | |||
Partnership units conversion ratio | 1 | |||
Convertible partnership units | shares | 231,978 | |||
Income allocated to other permanent noncontrolling interest in subsidiaries | $ 2,600 | 2,900 | ||
Distributions paid | $ 1,730 | 1,340 | 3,533 | 3,055 |
Contributions by noncontrolling interests | $ 1,106 | $ 49 | $ 1,302 | $ 752 |
Shareholders' Equity (Preferred
Shareholders' Equity (Preferred Shares) (Narrative) (Details) $ / shares in Units, shares in Millions | Jun. 27, 2019 | Mar. 28, 2019 | Mar. 11, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)item$ / shares |
Class of Stock [Line Items] | |||||
Number of quarterly dividends in arrearage before preferred shareholders can elect additional board members | item | 6 | ||||
Number of additional board members the preferred shareholders can elect in the case of an excess arrearage of quarterly dividends | item | 2 | ||||
Amount of preferred dividends in arrears | $ 0 | ||||
Redemption price per share | $ / shares | $ 25 | $ 25 | |||
Gross proceeds from issuance of preferred stock | $ 276,723,000 | ||||
EITF D-42 allocations | $ 8,861,000 | $ 17,394,000 | |||
Series F Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend rate percentage | 5.15% | ||||
Series H Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Redemption price per share | $ / shares | $ 25 | ||||
Shares issued | shares | 11.4 | ||||
Preferred shares per depositary share | 0.001% | ||||
Gross proceeds from issuance of preferred stock | $ 285,000,000 | ||||
Original issuance costs on preferred shares redeemed during the period | $ 8,300,000 | ||||
Dividend rate percentage | 5.60% | 5.60% | |||
Series Y Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend rate percentage | 6.375% | 6.375% | |||
EITF D-42 allocations | $ 8,500,000 | ||||
Series Z Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Dividend rate percentage | 6.00% | 6.00% | |||
EITF D-42 allocations | $ 8,900,000 | $ 8,900,000 |
Shareholders_ Equity (Dividends
Shareholders’ Equity (Dividends) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Shareholders’ Equity [Abstract] | ||||
Common stock dividends paid in aggregate | $ 349,600 | $ 349,000 | $ 699,100 | $ 698,000 |
Common stock dividends paid per share | $ 2 | $ 2 | $ 4 | $ 4 |
Preferred share dividends | $ 53,525 | $ 54,077 | $ 108,537 | $ 108,158 |
Shareholders' Equity (Preferr_2
Shareholders' Equity (Preferred Shares Outstanding) (Details) - USD ($) $ in Thousands | Jun. 27, 2019 | Mar. 28, 2019 | Mar. 11, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||||
Preferred stock, shares outstanding | 149,500 | 161,000 | |||
Liquidation Preference | $ 3,737,500 | $ 4,025,000 | |||
Series U Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jun. 15, 2017 | ||||
Dividend Rate % | 5.625% | ||||
Preferred stock, shares outstanding | 11,500 | 11,500 | |||
Liquidation Preference | $ 287,500 | $ 287,500 | |||
Series V Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Sep. 20, 2017 | ||||
Dividend Rate % | 5.375% | ||||
Preferred stock, shares outstanding | 19,800 | 19,800 | |||
Liquidation Preference | $ 495,000 | $ 495,000 | |||
Series W Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jan. 16, 2018 | ||||
Dividend Rate % | 5.20% | ||||
Preferred stock, shares outstanding | 20,000 | 20,000 | |||
Liquidation Preference | $ 500,000 | $ 500,000 | |||
Series X Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Mar. 13, 2018 | ||||
Dividend Rate % | 5.20% | ||||
Preferred stock, shares outstanding | 9,000 | 9,000 | |||
Liquidation Preference | $ 225,000 | $ 225,000 | |||
Series Y Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Mar. 17, 2019 | ||||
Dividend Rate % | 6.375% | 6.375% | |||
Preferred stock, shares outstanding | 11,400 | ||||
Liquidation Preference | $ 285,000 | ||||
Series Z Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jun. 4, 2019 | ||||
Dividend Rate % | 6.00% | 6.00% | |||
Preferred stock, shares outstanding | 11,500 | ||||
Liquidation Preference | $ 287,500 | ||||
Series A Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Dec. 2, 2019 | ||||
Dividend Rate % | 5.875% | ||||
Preferred stock, shares outstanding | 7,600 | 7,600 | |||
Liquidation Preference | $ 190,000 | $ 190,000 | |||
Series B Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jan. 20, 2021 | ||||
Dividend Rate % | 5.40% | ||||
Preferred stock, shares outstanding | 12,000 | 12,000 | |||
Liquidation Preference | $ 300,000 | $ 300,000 | |||
Series C Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | May 17, 2021 | ||||
Dividend Rate % | 5.125% | ||||
Preferred stock, shares outstanding | 8,000 | 8,000 | |||
Liquidation Preference | $ 200,000 | $ 200,000 | |||
Series D Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jul. 20, 2021 | ||||
Dividend Rate % | 4.95% | ||||
Preferred stock, shares outstanding | 13,000 | 13,000 | |||
Liquidation Preference | $ 325,000 | $ 325,000 | |||
Series E Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Oct. 14, 2021 | ||||
Dividend Rate % | 4.90% | ||||
Preferred stock, shares outstanding | 14,000 | 14,000 | |||
Liquidation Preference | $ 350,000 | $ 350,000 | |||
Series F Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Jun. 2, 2022 | ||||
Dividend Rate % | 5.15% | ||||
Preferred stock, shares outstanding | 11,200 | 11,200 | |||
Liquidation Preference | $ 280,000 | $ 280,000 | |||
Series G Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Aug. 9, 2022 | ||||
Dividend Rate % | 5.05% | ||||
Preferred stock, shares outstanding | 12,000 | 12,000 | |||
Liquidation Preference | $ 300,000 | $ 300,000 | |||
Series H Preferred Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Earliest Redemption Date | Mar. 11, 2024 | ||||
Dividend Rate % | 5.60% | 5.60% | |||
Preferred stock, shares outstanding | 11,400 | ||||
Liquidation Preference | $ 285,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) | 6 Months Ended | |
Jun. 30, 2019USD ($)item | Jun. 30, 2018USD ($) | |
Related Party Transaction [Line Items] | ||
Tenants reinsurance premiums earned by subsidiaries | $ | $ 696,000 | $ 625,000 |
Hughes Family [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage ownership of common shares outstanding | 14.50% | |
Canada [Member] | Hughes Family [Member] | ||
Related Party Transaction [Line Items] | ||
Number of self-storage facilities | item | 62 | |
Ownership interest | 0.00% |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options) (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Dec. 31, 2018employeeshares | |
Chief Executive Officer and Chief Financial Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of executives retiring | employee | 2 | ||||
Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period, number of years | 10 years | ||||
Compensation expense | $ | $ 1.4 | $ 3.5 | $ 2.2 | $ 7 | |
Stock options granted | 105,000 | ||||
Stock options exercised | 106,755 | ||||
Stock options forfeited | 10,000 | ||||
Stock options outstanding | 2,409,167 | 2,409,167 | 2,420,922 | ||
Average exercise price | $ / shares | $ 203.78 | $ 203.78 | |||
Stock Options [Member] | Chief Executive Officer and Chief Financial Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Acceleration of amortization on grants | $ | $ 1.8 | $ 3.6 | |||
Maximum [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 5 years | ||||
Minimum [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 3 years |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Units) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Tax deposits made in exchange for RSUs | $ 10,011 | $ 10,242 | |||
Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grants in period | 50,775 | ||||
Forfeited in period | 29,892 | ||||
Vested in period | 97,556 | ||||
Common shares issued upon vesting | 56,887 | ||||
Tax deposits made in exchange for RSUs | $ 10,000 | 10,300 | |||
Common stock withheld upon vesting in exchange for tax deposits | 40,669 | ||||
Restricted share units outstanding | 641,023 | 641,023 | 717,696 | ||
Restricted share unit expense | $ 4,300 | $ 13,800 | $ 11,100 | 27,200 | |
Taxes incurred upon vesting of restricted share units | $ 100 | 100 | $ 1,100 | 1,000 | |
Maximum [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 8 years | ||||
Minimum [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period, number of years | 5 years | ||||
Chief Executive Officer and Chief Financial Officer [Member] | Restricted Share Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Acceleration of amortization on grants | $ 6,000 | $ 12,100 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - country | Jun. 30, 2019 | Oct. 15, 2018 | Oct. 14, 2018 | Sep. 30, 2018 |
PSB [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percentage | 42.00% | |||
Shurgard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership interest, percentage | 35.00% | 35.00% | 49.00% | 49.00% |
Number of countries in which entity operates | 7 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 710,950 | $ 685,528 | $ 1,399,988 | $ 1,355,452 |
Self-storage operations | 196,083 | 179,876 | 389,739 | 362,063 |
Ancillary operations | 11,653 | 11,101 | 22,198 | 21,741 |
Total cost of operations | 207,736 | 190,977 | 411,937 | 383,804 |
Net operating income: Self-storage operations | 473,256 | 465,330 | 930,008 | 914,680 |
Net operating income: Ancillary operations | 29,958 | 29,221 | 58,043 | 56,968 |
Total net operating income | 503,214 | 494,551 | 988,051 | 971,648 |
Depreciation and amortization | (126,859) | (119,777) | (248,800) | (237,756) |
General and administrative | (15,264) | (31,329) | (34,767) | (62,849) |
Interest and other income | 8,582 | 6,328 | 15,547 | 11,872 |
Interest expense | (12,254) | (8,388) | (20,397) | (16,495) |
Equity in earnings of unconsolidated real estate entities | 18,914 | 41,963 | 36,586 | 72,758 |
Foreign currency exchange (loss) gain | (5,218) | 21,944 | 2,573 | 10,126 |
Gain on sale of real estate | 341 | 341 | 424 | |
Net income (loss) | 371,456 | 405,292 | 739,134 | 749,728 |
Self-Storage Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 669,339 | 645,206 | 1,319,747 | 1,276,743 |
Self-storage operations | 196,083 | 179,876 | 389,739 | 362,063 |
Total cost of operations | 196,083 | 179,876 | 389,739 | 362,063 |
Net operating income: Self-storage operations | 473,256 | 465,330 | 930,008 | 914,680 |
Total net operating income | 473,256 | 465,330 | 930,008 | 914,680 |
Depreciation and amortization | (126,859) | (119,777) | (248,800) | (237,756) |
Net income (loss) | 346,397 | 345,553 | 681,208 | 676,924 |
Ancillary Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 41,611 | 40,322 | 80,241 | 78,709 |
Ancillary operations | 11,653 | 11,101 | 22,198 | 21,741 |
Total cost of operations | 11,653 | 11,101 | 22,198 | 21,741 |
Net operating income: Ancillary operations | 29,958 | 29,221 | 58,043 | 56,968 |
Total net operating income | 29,958 | 29,221 | 58,043 | 56,968 |
Net income (loss) | 29,958 | 29,221 | 58,043 | 56,968 |
Invesment in PSB [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 14,864 | 36,612 | 28,584 | 60,443 |
Net income (loss) | 14,864 | 36,612 | 28,584 | 60,443 |
Investment In Shurgard [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity in earnings of unconsolidated real estate entities | 4,050 | 5,351 | 8,002 | 12,315 |
Net income (loss) | 4,050 | 5,351 | 8,002 | 12,315 |
Other Items Not Allocated To Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
General and administrative | (15,264) | (31,329) | (34,767) | (62,849) |
Interest and other income | 8,582 | 6,328 | 15,547 | 11,872 |
Interest expense | (12,254) | (8,388) | (20,397) | (16,495) |
Foreign currency exchange (loss) gain | (5,218) | 21,944 | 2,573 | 10,126 |
Gain on sale of real estate | 341 | 341 | 424 | |
Net income (loss) | (23,813) | (11,445) | (36,703) | (56,922) |
Self-Storage Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 669,339 | 645,206 | 1,319,747 | 1,276,743 |
Self-Storage Operations [Member] | Self-Storage Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 669,339 | 645,206 | 1,319,747 | 1,276,743 |
Ancillary Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 41,611 | 40,322 | 80,241 | 78,709 |
Ancillary Operations [Member] | Ancillary Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 41,611 | $ 40,322 | $ 80,241 | $ 78,709 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 6 Months Ended |
Jun. 30, 2019USD ($)item | |
Commitments And Contingencies [Abstract] | |
Deductible for general liability | $ 2,000,000 |
Deductible for property | 25,000,000 |
Reduced deductible for property | 5,000,000 |
Aggregate maximum losses for property | 35,000,000 |
Aggregate per occurance property coverage | 5,000,000 |
Aggregate limit for property coverage | 75,000,000 |
Aggregate limit for general liability coverage | 102,000,000 |
Tenant insurance program against claims, maximum amount | 5,000 |
Third-party insurance coverage for claims paid exceeding amount for individual event | 15,000,000 |
Third-party limit for insurance coverage claims paid for individual event | $ 5,000,000 |
Tenant certificate holders participating in insurance program, approximate | item | 970,000 |
Aggregate coverage of tenants participating in insurance program | $ 3,100,000,000 |
Construction commitments | 87,100,000 |
Construction commitments remainder of 2019 | 45,200,000 |
Construction commitments 2020 | $ 41,900,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Jul. 31, 2019USD ($)ft²item | |
Subsequent Event [Line Items] | |
Number of self-storage facilities acquired or under contract to be acquired | item | 10 |
Net rentable square feet | ft² | 815,000 |
Total cost of acquisition | $ | $ 86.5 |