Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33519 | |
Entity Registrant Name | Public Storage | |
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 | 174,792,745 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001393311 | |
Common Shares [Member] | ||
Title of 12(b) Security | Common Shares, $0.10 par value | |
Trading Symbol | PSA | |
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 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 | |
Series I Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 4.875% Cum Pref Share, Series I, $0.01 par value | |
Trading Symbol | PSAPrI | |
Security Exchange Name | NYSE | |
Series J Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 4.700% Cum Pref Share, Series J, $0.01 par value | |
Trading Symbol | PSAPrJ | |
Security Exchange Name | NYSE | |
Series K Preferred Stock [Member] | ||
Title of 12(b) Security | Depositary Shares Each Representing 1/1,000 of a 4.750% Cum Pref Share, Series K, $0.01 par value | |
Trading Symbol | PSAPrK | |
Security Exchange Name | NYSE | |
Notes Due 2032 [Member] | ||
Title of 12(b) Security | 0.875% Senior Notes due 2032 | |
Trading Symbol | PSA32 | |
Security Exchange Name | NYSE |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and equivalents | $ 718,427 | $ 409,743 |
Real estate facilities, at cost: | ||
Land | 4,267,474 | 4,186,873 |
Buildings | 12,281,507 | 12,102,273 |
Real estate facilities, gross | 16,548,981 | 16,289,146 |
Accumulated depreciation | (6,751,150) | (6,623,475) |
Real estate facilities, net | 9,797,831 | 9,665,671 |
Construction in process | 161,699 | 141,934 |
Total real estate facilities | 9,959,530 | 9,807,605 |
Investments in unconsolidated real estate entities | 763,226 | 767,816 |
Goodwill and other intangible assets, net | 209,440 | 205,936 |
Other assets | 175,298 | 174,344 |
Total assets | 11,825,921 | 11,365,444 |
LIABILITIES AND EQUITY | ||
Notes payable | 2,438,668 | 1,902,493 |
Accrued and other liabilities | 357,045 | 383,284 |
Total liabilities | 2,795,713 | 2,285,777 |
Commitments and contingencies (Note 12) | ||
Public Storage shareholders' equity: | ||
Preferred Shares, $0.01 par value, 100,000,000 shares authorized, 162,600 shares issued (in series) and outstanding, (162,600 at December 31, 2019), at liquidation preference | 4,065,000 | 4,065,000 |
Common Shares, $0.10 par value, 650,000,000 shares authorized, 174,475,022 shares issued and outstanding (174,418,615 shares at December 31, 2019) | 17,448 | 17,442 |
Paid-in capital | 5,709,861 | 5,710,934 |
Accumulated deficit | (701,226) | (665,575) |
Accumulated other comprehensive loss | (78,005) | (64,890) |
Total Public Storage shareholders’ equity | 9,013,078 | 9,062,911 |
Noncontrolling interests | 17,130 | 16,756 |
Total equity | 9,030,208 | 9,079,667 |
Total liabilities and equity | $ 11,825,921 | $ 11,365,444 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 162,600 | 162,600 |
Preferred stock, shares outstanding | 162,600 | 162,600 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 650,000,000 | 650,000,000 |
Common stock, shares issued | 174,475,022 | 174,418,615 |
Common stock, shares outstanding | 174,475,022 | 174,418,615 |
Statements Of Income
Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues: | ||
Revenues | $ 716,082 | $ 689,038 |
Expenses: | ||
Self-storage cost of operations | 207,925 | 193,656 |
Ancillary cost of operations | 10,945 | 10,545 |
Depreciation and amortization | 135,900 | 121,941 |
General and administrative | 21,064 | 19,503 |
Interest expense | 13,621 | 8,143 |
Operating expenses | 389,455 | 353,788 |
Other increase to net income: | ||
Interest and other income | 6,479 | 6,965 |
Equity in earnings of unconsolidated real estate entities | 23,968 | 17,672 |
Foreign currency exchange gain | 8,945 | 7,791 |
Gain on sale of real estate | 1,117 | |
Net income | 367,136 | 367,678 |
Allocation to noncontrolling interests | (980) | (1,157) |
Net income allocable to Public Storage shareholders | 366,156 | 366,521 |
Allocation of net income to: | ||
Preferred shareholders- distributions | (52,005) | (55,012) |
Preferred shareholders - redemptions (Note 8) | (8,533) | |
Restricted share units | (1,017) | (1,233) |
Net income allocable to common shareholders | $ 313,134 | $ 301,743 |
Net income per common share: | ||
Basic | $ 1.80 | $ 1.73 |
Diluted | $ 1.79 | $ 1.73 |
Basic weighted average common shares outstanding | 174,446 | 174,177 |
Diluted weighted average common shares outstanding | 174,616 | 174,376 |
Self-Storage Operations [Member] | ||
Revenues: | ||
Revenues | $ 674,201 | $ 650,408 |
Ancillary Operations [Member] | ||
Revenues: | ||
Revenues | $ 41,881 | $ 38,630 |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statements Of Comprehensive Income [Abstract] | ||
Net income | $ 367,136 | $ 367,678 |
Other comprehensive income (loss): | ||
Aggregate foreign currency exchange (loss) gain | (4,170) | 5,880 |
Adjust for aggregate foreign currency exchange gain included in net income | (8,945) | (7,791) |
Other comprehensive loss | (13,115) | (1,911) |
Total comprehensive income | 354,021 | 365,767 |
Allocation to noncontrolling interests | (980) | (1,157) |
Comprehensive income allocable to Public Storage shareholders | $ 353,041 | $ 364,610 |
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, 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 11,400 preferred shares (Note 8) | (285,000) | (285,000) | (285,000) | |||||
Issuance of common shares in connection with share-based compensation (Note 10) | 9 | 1,584 | 1,593 | 1,593 | ||||
Cash paid in lieu of common shares, net of share-based compensation expense (Note 10) | 3,093 | 3,093 | 3,093 | |||||
Contributions by noncontrolling interests | 196 | 196 | ||||||
Net income | 367,678 | 367,678 | 367,678 | |||||
Net income allocated to noncontrolling interests | (1,157) | (1,157) | 1,157 | (1,157) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (55,012) | (55,012) | (55,012) | |||||
Noncontrolling interests | (1,803) | (1,803) | ||||||
Common shares and restricted share units ($2.00 per share) | (349,478) | (349,478) | (349,478) | |||||
Other comprehensive loss (Note 2) | (1,911) | (1,911) | (1,911) | |||||
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 |
Balances at Dec. 31, 2019 | 4,065,000 | 17,442 | 5,710,934 | (665,575) | (64,890) | 9,062,911 | 16,756 | 9,079,667 |
Issuance of common shares in connection with share-based compensation (Note 10) | 6 | 1,757 | 1,763 | 1,763 | ||||
Cash paid in lieu of common shares, net of share-based compensation expense (Note 10) | 2,830 | 2,830 | 2,830 | |||||
Contributions by noncontrolling interests | 566 | 566 | ||||||
Net income | 367,136 | 367,136 | 367,136 | |||||
Net income allocated to noncontrolling interests | (980) | (980) | 980 | (980) | ||||
Distributions to equity holders: | ||||||||
Preferred shares (Note 8) | (52,005) | (52,005) | (52,005) | |||||
Noncontrolling interests | (1,172) | (1,172) | ||||||
Common shares and restricted share units ($2.00 per share) | (349,802) | (349,802) | (349,802) | |||||
Other comprehensive loss (Note 2) | (13,115) | (13,115) | (13,115) | |||||
Balances at Mar. 31, 2020 | $ 4,065,000 | $ 17,448 | $ 5,709,861 | $ (701,226) | $ (78,005) | $ 9,013,078 | $ 17,130 | $ 9,030,208 |
Statement Of Equity (Parentheti
Statement Of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Equity [Abstract] | ||
Issuance of preferred shares, shares | 11,400 | |
Redemption of preferred shares, shares | 11,400 | |
Issuance of common shares in connection with share-based compensation, shares | 56,407 | 84,411 |
Common shareholders and restricted share unitholders, per share distribution | $ 2 | $ 2 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 367,136 | $ 367,678 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Gain on real estate investment sales | (1,117) | |
Depreciation and amortization | 135,900 | 121,941 |
Equity in earnings of unconsolidated real estate entities | (23,968) | (17,672) |
Distributions from cumulative equity in earnings of unconsolidated real estate entities | 15,443 | 15,435 |
Foreign currency exchange gain | (8,945) | (7,791) |
Share-based compensation expense | 5,677 | 6,664 |
Other | (27,176) | (16,423) |
Total adjustments | 95,814 | 102,154 |
Net cash flows from operating activities | 462,950 | 469,832 |
Cash flows from investing activities: | ||
Payments for capital expenditures to maintain real estate facilities for: Costs incurred during the period | (42,839) | (22,212) |
Payments for capital expenditures to maintain real estate facilities for: Costs incurred in previous periods | (14,665) | (10,773) |
Payments for development and expansion of real estate facilities for: Costs incurred during the period | (24,484) | (14,286) |
Payments for development and expansion of real estate facilities for: Costs incurred in previous periods | (23,132) | (62,723) |
Acquisition of real estate facilities and intangible assets | (186,183) | (79,499) |
Proceeds from sale of real estate investments | 1,399 | |
Net cash flows used in investing activities | (289,904) | (189,493) |
Cash flows from financing activities: | ||
Repayments on notes payable | (497) | (467) |
Issuance of notes payable, net of issuance costs | 545,151 | |
Issuance of preferred shares | 276,723 | |
Issuance of common shares | 1,763 | 1,593 |
Redemption of preferred shares | (285,000) | |
Cash paid upon vesting of restricted share units | (8,507) | (9,757) |
Contributions by noncontrolling interests | 566 | 196 |
Distributions paid to preferred shareholders, common shareholders and restricted share unitholders | (401,807) | (404,490) |
Distributions paid to noncontrolling interests | (1,172) | (1,803) |
Net cash flows from (used in) financing activities | 135,497 | (423,005) |
Net cash flows from operating, investing and financing activities | 308,543 | (142,666) |
Net effect of foreign exchange translation | 31 | 50 |
Increase (decrease) in cash and equivalents, including restricted cash | 308,574 | (142,616) |
Cash and equivalents, including restricted cash at beginning of the period: | ||
Cash and equivalents | 409,743 | 361,218 |
Restricted cash included in other assets | 23,811 | 22,801 |
Cash, equivalents, and restricted cash | 433,554 | 384,019 |
Cash and equivalents, including restricted cash at end of the period: | ||
Cash and equivalents | 718,427 | 217,973 |
Restricted cash included in other assets | 23,701 | 23,430 |
Cash, equivalents, and restricted cash | 742,128 | 241,403 |
Costs incurred during the period remaining unpaid at period end for: | ||
Capital expenditures to maintain real estate facilities | (14,018) | (7,993) |
Construction or expansion of real estate facilities | (20,605) | (47,675) |
Accrued and other liabilities | 34,623 | 55,668 |
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: | ||
Investments in unconsolidated real estate entities | 13,115 | 1,911 |
Notes payable | (8,914) | (7,741) |
Accumulated other comprehensive (loss) gain | $ (4,170) | $ 5,880 |
Description Of The Business
Description Of The Business | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, we have direct and indirect equity interests in 2,492 self-storage facilities (with approximately 170 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”) a public company traded on Euronext Brussels under the “SHUR” symbol, which owns 234 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 27.5 million 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 | 3 Months Ended |
Mar. 31, 2020 | |
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, primarily 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, 2019. Certain amounts previously reported in our March 31, 2019 financial statements have been reclassified to conform to the March 31, 2020 presentation. 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 presented on our income statements represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. The dividends we receive from the Unconsolidated Real Estate Entities are reflected on our statements of cash flows as “distributions from cumulative equity in earnings of unconsolidated real estate entities” to the extent of our cumulative equity in earnings, with any excess classified as “distributions in excess of cumulative equity in earnings from 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 March 31, 2020, the Company and the Subsidiaries own 2,492 self-storage facilities and four commercial facilities in the U.S. At March 31, 2020, 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 March 31, 2020, 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 (net of an allowance for uncollectible amounts), prepaid expenses, restricted cash and right-to-use assets. 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. 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 (net of an allowance for uncollectible receivables based upon expected losses in the portfolio) 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 March 31, 2020, 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, and finite-lived assets. Goodwill totaled $ 174.6 million at March 31, 2020 and December 31, 2019. 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 March 31, 2020 and December 31, 2019. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Our finite-lived assets are comprised primarily of acquired customers in place amortized relative to the benefit of the customers in place, with such amortization reflected as depreciation and amortization expense on our income statement; and property tax abatements amortized relative to the reduction in property tax paid, with such amortization reflected as self-storage cost of operations on our income statement. At March 31, 2020, these intangibles had a net book value of $ 16.0 million ($ 12.5 million at December 31, 2019). Accumulated amortization totaled $ 29.4 million at March 31, 2020 ($ 27.5 million at December 31, 2019), and amortization expense of $ 4.7 million and $ 3.9 million was recorded in the three months ended March 31, 2020 and 2019, respectively. The estimated future amortization expense for our finite-lived intangible assets at March 31, 2020 is approximately $ 7.6 million in the remainder of 2020, $ 2.4 million in 2021 and $ 6.0 million thereafter. During the three months ended March 31, 2020, intangibles increased $ 8.2 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 1.100 U.S. Dollars per Euro at March 31, 2020 ( 1.122 at December 31, 2019), and average exchange rates of 1.103 and 1.136 for the three months ended March 31, 2020 and 2019, 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 June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU 2018- 19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which clarified that receivables arising from operating leases are within the scope of the leasing standard (ASU 2016-02), and not within the scope of ASU 2016-13. We adopted this new standard on its effective date for us of January 1, 2020. Adoption of this new standard did not have a material impact on our consolidated financial statements. 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): For the Three Months Ended March 31, 2020 2019 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,446 174,177 Net effect of dilutive stock options - based on treasury stock method 170 199 Diluted weighted average common shares outstanding 174,616 174,376 |
Real Estate Facilities
Real Estate Facilities | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate Facilities [Abstract] | |
Real Estate Facilities | 3. Real Estate Facilities Activity in real estate facilities during the three months ended March 31, 2020 is as follows: Three Months Ended March 31, 2020 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 16,289,146 Costs incurred for capital expenditures to maintain real estate facilities 56,857 Acquisitions 177,936 Dispositions ( 282 ) Developed or expanded facilities opened for operation 25,324 Ending balance 16,548,981 Accumulated depreciation: Beginning balance ( 6,623,475 ) Depreciation expense ( 127,675 ) Ending balance ( 6,751,150 ) Construction in process: Beginning balance 141,934 Costs incurred for development and expansion of real estate facilities 45,089 Developed or expanded facilities opened for operation ( 25,324 ) Ending balance 161,699 Total real estate facilities at March 31, 2020 $ 9,959,530 During the three months ended March 31, 2020, we acquired nine self-storage facilities ( 748,000 net rentable square feet of storage space), for a total cost of $ 186.2 million in cash. Approximately $ 8.2 million of the total cost was allocated to intangible assets. We completed redevelopment activities costing $ 25.3 million during the three months ended March 31, 2020, adding 0.1 million net rentable square feet of self-storage space. Construction in process at March 31, 2020 consists of projects to develop new self-storage facilities and expand existing self-storage facilities. During the three months ended March 31, 2020, we paid a total of $ 47.6 million with respect to the development and expansion of real estate facilities, including $ 23.1 million to repay amounts accrued at December 31, 2019 ($ 77.0 million during the three months ended March 31, 2019, including $ 62.7 million to repay amounts accrued at December 31, 2018). Of the $ 45.1 million in costs incurred during the three months ended March 31, 2020, $ 20.6 million remains unpaid at March 31, 2020. During the three months ended March 31, 2020, we paid a total of $ 57.5 million with respect to capital expenditures to maintain real estate facilities, including $ 14.7 million to repay amounts accrued at December 31, 2019 ($ 33.0 million during the three months ended March 31, 2019, including $ 10.8 million to repay amounts accrued at December 31, 2018). Of the $ 56.9 million in costs incurred during the three months ended March 31, 2020, $ 14.0 million remains unpaid at March 31, 2020. |
Investments In Unconsolidated R
Investments In Unconsolidated Real Estate Entities | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 December 31, 2019 PSB $ 434,425 $ 427,875 Shurgard 328,801 339,941 Total $ 763,226 $ 767,816 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended March 31, 2020 2019 PSB $ 21,737 $ 13,720 Shurgard 2,231 3,952 Total $ 23,968 $ 17,672 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 March 31, 2020 ($ 135.52 ) per share of PSB common stock), the shares and units we owned had a market value of approximately $ 2.0 billion. Our equity in earnings of PSB is comprised of our equity share of PSB’s net income, less amortization of the PSB Basis Differential (defined below). During each of the three month periods ended March 31, 2020 and 2019, we received cash distributions from PSB totaling $ 15.2 million. At March 31, 2020, our pro-rata investment in PSB’s real estate assets included in investment in unconsolidated real estate entities exceeds our pro-rata share of the underlying amounts on PSB’s balance sheet by approximately $ 4.0 million ($ 4.2 million at December 31, 2019). 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 $ 0.2 million during each of the three month periods ended March 31, 2020 and 2019. PSB is a publicly held entity traded on the New York Stock Exchange under the symbol “PSB”. Investment in Shurgard Throughout all periods presented, we effectively owned, directly and indirectly 31,268,459 Shurgard common shares, representing an approximate 35 % equity interest in Shurgard. Based upon the closing price at March 31, 2020 ( € 27.00 per share of SHUR common stock, at 1.100 exchange rate of US Dollars to the Euro), the shares we owned had a market value of approximately $ 0.9 billion. Our equity in earnings of Shurgard is comprised of our equity share of Shurgard’s net income, plus $ 0.3 million and $ 0.2 million for the three months ended March 31, 2020 and 2019, respectively, representing our equity share of the trademark license fees that Shurgard pays to us for the use of the “Shurgard” trademark. We classify the remaining license fees we receive from Shurgard as interest and other income on our income statement. Our equity share of trademark license fees collected from Shurgard are accounted for as dividends. Shurgard did not pay any dividends to its shareholders during either of the three month periods ended March 31, 2020 or 2019. Changes in foreign currency exchange rates decreased our investment in Shurgard by approximately $ 13.1 million and $ 1.9 million in the three months ended March 31, 2020 and 2019, respectively. Shurgard is a publicly held entity trading on Euronext Brussels under the symbol “SHUR”. |
Credit Facility
Credit Facility | 3 Months Ended |
Mar. 31, 2020 | |
Credit Facility [Abstract] | |
Credit Facility | 5. Credit Facility We have a revolving credit agreement (the “Credit Facility”) with a $ 500 million borrowing limit, which matures on April 19, 2024 . Amounts drawn on the Credit Facility bear annual interest at rates ranging from LIBOR plus 0.7 % 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 0.7 % at March 31, 2020). We are also required to pay a quarterly facility fee ranging from 0.07 % per annum to 0.25 % per annum depending upon the ratio of our Total Indebtedness to our Gross Asset Value ( 0.07 % per annum at March 31, 2020). At March 31, 2020 and April 30, 2020, 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 March 31, 2020 ($ 15.9 million at December 31, 2019). The Credit Facility has various customary restrictive covenants, all of which we were in compliance with at March 31, 2020 . |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Notes Payable [Abstract] | |
Notes Payable | 6. Notes Payable Our notes payable are reflected net of costs of issuance, which are amortized as interest expense on the effective interest method over the term of each respective note. Our notes payable at March 31, 2020 and December 31, 2019 are set forth in the tables below: Amounts at March 31, 2020 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 $ ( 1,287 ) $ 498,713 $ 493,176 Notes due September 15, 2027 3.094 % 3.218 % 500,000 ( 3,944 ) 496,056 480,725 Notes due May 1, 2029 3.385 % 3.459 % 500,000 ( 2,799 ) 497,201 490,203 1,500,000 ( 8,030 ) 1,491,970 1,464,104 Euro Denominated Unsecured Debt Notes due April 12, 2024 1.540 % 1.540 % 110,005 - 110,005 110,091 Notes due November 3, 2025 2.175 % 2.175 % 266,227 - 266,227 266,574 Notes due January 24, 2032 0.875 % 0.978 % 550,026 ( 6,332 ) 543,694 509,269 926,258 ( 6,332 ) 919,926 885,934 Mortgage Debt , secured by 27 real estate facilities with a net book value of $ 104.8 million 4.010 % 3.984 % 26,772 - 26,772 27,128 $ 2,453,030 $ ( 14,362 ) $ 2,438,668 $ 2,377,166 Amounts at December 31, 2019 Book Fair Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 $ 498,581 $ 505,639 Notes due September 15, 2027 495,924 520,694 Notes due May 1, 2029 497,124 531,911 1,491,629 1,558,244 Euro Denominated Unsecured Debt Notes due April 12, 2024 112,156 115,932 Notes due November 3, 2025 271,433 298,398 Notes due January 24, 2032 - - 383,589 414,330 Mortgage Debt 27,275 28,506 $ 1,902,493 $ 2,001,080 U.S. Dollar Denominated Unsecured Notes 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. Interest on such notes is payable semi-annually on March 15 and September 15 of each year. 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. Interest on such notes is payable semi-annually on May 1 and November 1 of each year. 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 March 31, 2020. Included in these covenants are (a) a maximum Debt to Total Assets of 65 % (approximately 7 % at March 31, 2020) and (b) a minimum ratio of Adjusted EBITDA to Interest Expense of 1.5 x (approximately 42 x for the twelve months ended March 31, 2020) as well as covenants limiting the amount we can encumber our properties with mortgage debt. Euro Denominated Unsecured Notes Our euro denominated unsecured notes (the “Euro Notes”) are payable to institutional investors. The Euro Notes consist of three 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, (ii) € 100.0 million issued on April 12, 2016 for $ 113.6 million in net proceeds upon converting the Euros to U.S. Dollars, and (iii) € 500.0 million issued on January 24, 2020 for $ 545.2 million in net proceeds upon converting the Euros to U.S. Dollars. Interest is payable semi-annually on the notes issued November 3, 2015 and April 12, 2016 , and annually on the notes issued January 24, 2020 . The Euro Notes have financial covenants similar to those of the U.S. Dollar Notes. 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 gain” on our income statement (gains of $ 8.9 million and $ 7.8 million for the three months ended March 31, 2020 and 2019, respectively). Mortgage Notes 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. At March 31, 2020, 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 March 31, 2020 approximate principal maturities of our Notes Payable are as follows (amounts in thousands): Unsecured Mortgage Debt Debt Total Remainder of 2020 $ - $ 1,519 $ 1,519 2021 - 1,865 1,865 2022 500,000 2,584 502,584 2023 - 19,219 19,219 2024 110,005 124 110,129 Thereafter 1,816,253 1,461 1,817,714 $ 2,426,258 $ 26,772 $ 2,453,030 Weighted average effective rate 2.4 % 4.0 % 2.4 % Cash paid for interest totaled $ 14.1 million and $ 9.1 million for the three months ended March 31, 2020 and 2019, respectively. Interest capitalized as real estate totaled $ 0.9 million and $ 1.2 million for the three months ended March 31, 2020 and 2019, respectively. |
Noncontrolling Interests
Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2020 | |
Noncontrolling Interests [Abstract] | |
Noncontrolling Interests | 7. Noncontrolling Interests At March 31, 2020, the noncontrolling interests represent (i) third-party equity interests in subsidiaries owning 18 operating self-storage facilities and eight 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 March 31, 2020, the Noncontrolling Interests cannot require us to redeem their interests, other than pursuant to a liquidation of the subsidiary. During the three months ended March 31, 2020 and 2019, we allocated a total of $ 1.0 million and $ 1.2 million, respectively, of income to these interests; and we paid $ 1.2 million and $ 1.8 million, respectively, in distributions to these interests. During the three months ended March 31, 2020 and 2019, Noncontrolling Interests contributed $ 0.6 million and $ 0.2 million, respectively, to our subsidiaries. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Shareholders’ Equity [Abstract] | |
Shareholders' Equity | 8. Shareholders’ Equity Preferred Shares At March 31, 2020 and December 31, 2019, we had the following series of Cumulative Preferred Shares (“Preferred Shares”) outstanding: Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series V 9/20/2017 5.375 % 19,800 $ 495,000 Series W 1/16/2018 5.200 % 20,000 500,000 Series X 3/13/2018 5.200 % 9,000 225,000 Series B 1/20/2021 5.400 % 12,000 300,000 Series C 5/17/2021 5.125 % 8,000 200,000 Series D 7/20/2021 4.950 % 13,000 325,000 Series E 10/14/2021 4.900 % 14,000 350,000 Series F 6/2/2022 5.150 % 11,200 280,000 Series G 8/9/2022 5.050 % 12,000 300,000 Series H 3/11/2024 5.600 % 11,400 285,000 Series I 9/12/2024 4.875 % 12,650 316,250 Series J 11/15/2024 4.700 % 10,350 258,750 Series K 12/20/2024 4.750 % 9,200 230,000 Total Preferred Shares 162,600 $ 4,065,000 The holders of our Preferred Shares have general preference rights with respect to liquidation, quarterly distributions and any accumulated unpaid distributions. Except as noted below, holders of the Preferred Shares do not have voting rights. 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 March 31, 2020, there were no dividends in arrears. The affirmative vote of at least 66.67 % of the outstanding shares of a series of Preferred Shares is required for any material and adverse amendment to the terms of such series. The affirmative vote of at least 66.67 % of the outstanding shares of all of our Preferred Shares, voting as a single class, is required to issue shares ranking senior to our Preferred Shares. 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 three months ended March 31, 2019 in connection with this redemption. Dividends Common share dividends, including amounts paid to our restricted share unitholders, totaled $ 349.8 million ($ 2.00 per share) and $ 349.5 million ($ 2.00 per share) for the three months ended March 31, 2020 and 2019, respectively. Preferred share dividends totaled $ 52.0 million and $ 55.0 million for the three months ended March 31, 2020 and 2019, respectively. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
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 14.1 % of our common shares outstanding at March 31, 2020. At March 31, 2020, Tamara Hughes Gustavson owned and controlled 63 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 $ 349,000 and $ 323,000 for the three months ended March 31, 2020 and 2019, respectively. Our right to continue receiving these premiums may be qualified. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
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). The Codification previously stipulated that grants to nonemployee service providers (other than to trustees, where equity method treatment was permitted) were accounted for on the liability method, with expenses adjusted each period based upon changes in fair value. Recent changes in the Codification allows such grants to be accounted for on the equity award method, with compensation expense based upon grant date fair value. While we have no such grants to any such individuals for any periods presented, we will account for any future grants to nonemployee service providers based upon the equity award 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. 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 months ended March 31, 2020 and 2019, we recorded $ 0.9 million and $ 0.8 million, respectively, in compensation expense related to stock options. During the three months ended March 31, 2020, 770,000 stock options were granted, 8,000 options were exercised and 12,000 options were forfeited. A total of 3,089,667 stock options were outstanding at March 31, 2020, ( 2,339,667 at December 31, 2019) and have an average exercise price of $ 210.58 . 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 three months ended March 31, 2020, 25,460 RSUs were granted, 12,095 RSUs were forfeited and 74,089 RSUs vested. This vesting resulted in the issuance of 48,407 common shares. In addition, tax deposits totaling $ 8.5 million ($ 9.8 million for the same period in 2019) were made on behalf of employees in exchange for 25,682 common shares withheld upon vesting. A total of 558,426 RSUs were outstanding at March 31, 2020 ( 619,150 at December 31, 2019). A total of $ 5.7 million and $ 6.8 million in RSU expense was recorded for the three months ended March 31, 2020 and, 2019, respectively, which includes approximately $ 1.1 million and $ 1.0 million, respectively in employer taxes incurred upon vesting. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
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 approximate 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 and board of directors 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 approximate 35 % 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 table reconciles NOI (as applicable) and net income of each segment to our consolidated net income (amounts in thousands): For the Three Months Ended March 31, 2020 2019 Self-Storage Segment Revenue $ 674,201 $ 650,408 Cost of operations ( 207,925 ) ( 193,656 ) Net operating income 466,276 456,752 Depreciation and amortization ( 135,900 ) ( 121,941 ) Net income 330,376 334,811 Ancillary Segment Revenue 41,881 38,630 Cost of operations ( 10,945 ) ( 10,545 ) Net operating income 30,936 28,085 Investment in PSB Segment (a) - Equity in earnings of unconsolidated entities 21,737 13,720 Investment in Shurgard Segment (a) - Equity in earnings of unconsolidated entities 2,231 3,952 Total net income allocated to segments 385,280 380,568 Other items not allocated to segments: General and administrative ( 21,064 ) ( 19,503 ) Interest and other income 6,479 6,965 Interest expense ( 13,621 ) ( 8,143 ) Foreign currency exchange gain 8,945 7,791 Gain on sale of real estate 1,117 - Net income $ 367,136 $ 367,678 (a) See Note 4 for a reconciliation of these amounts to our total Equity in Earnings of Unconsolidated Real Estate Entities on our income statements. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020, there were approximately 950,000 certificates held by our self-storage customers, representing aggregate coverage of approximately $ 3.4 billion. Construction Commitments We have construction commitments representing future expected payments for construction under contract totaling $ 103.0 million at March 31, 2020. We expect to pay approximately $ 75.0 million in the remainder of 2020, $ 23.0 million in 2021 and $ 5.0 million in 2022 for these construction commitments. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events Subsequent to March 31, 2020 , we acquired or were under contract to acquire (subject to customary closing conditions) six self-storage facilities with 419,000 net rentable square feet, for $ 66.8 million. Subsequent to March 31, 2020, the global economy has continued to be severely impacted by the COVID-19 pandemic (the “COVID Pandemic”). W e are actively monitoring the impact of the COVID Pandemic, which we anticipate will negatively impact our business and results of operations for our second fiscal quarter and likely beyond. The extent to which the COVID Pandemic will impact our operations will depend largely on future developments, which are highly uncertain and cannot be accurately predicted, including new information that may emerge concerning the severity and duration of the COVID pandemic and actions by government authorities to contain the COVID pandemic or treat its impact, among other factors. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
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, primarily 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, 2019. Certain amounts previously reported in our March 31, 2019 financial statements have been reclassified to conform to the March 31, 2020 presentation. |
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 presented on our income statements represents our pro-rata share of the earnings of the Unconsolidated Real Estate Entities. The dividends we receive from the Unconsolidated Real Estate Entities are reflected on our statements of cash flows as “distributions from cumulative equity in earnings of unconsolidated real estate entities” to the extent of our cumulative equity in earnings, with any excess classified as “distributions in excess of cumulative equity in earnings from 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 March 31, 2020, the Company and the Subsidiaries own 2,492 self-storage facilities and four commercial facilities in the U.S. At March 31, 2020, 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 March 31, 2020, 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 (net of an allowance for uncollectible amounts), prepaid expenses, restricted cash and right-to-use assets. |
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. 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 (net of an allowance for uncollectible receivables based upon expected losses in the portfolio) 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 March 31, 2020, 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, and finite-lived assets. Goodwill totaled $ 174.6 million at March 31, 2020 and December 31, 2019. 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 March 31, 2020 and December 31, 2019. Goodwill and the “Shurgard” trade name have indefinite lives and are not amortized. Our finite-lived assets are comprised primarily of acquired customers in place amortized relative to the benefit of the customers in place, with such amortization reflected as depreciation and amortization expense on our income statement; and property tax abatements amortized relative to the reduction in property tax paid, with such amortization reflected as self-storage cost of operations on our income statement. At March 31, 2020, these intangibles had a net book value of $ 16.0 million ($ 12.5 million at December 31, 2019). Accumulated amortization totaled $ 29.4 million at March 31, 2020 ($ 27.5 million at December 31, 2019), and amortization expense of $ 4.7 million and $ 3.9 million was recorded in the three months ended March 31, 2020 and 2019, respectively. The estimated future amortization expense for our finite-lived intangible assets at March 31, 2020 is approximately $ 7.6 million in the remainder of 2020, $ 2.4 million in 2021 and $ 6.0 million thereafter. During the three months ended March 31, 2020, intangibles increased $ 8.2 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 1.100 U.S. Dollars per Euro at March 31, 2020 ( 1.122 at December 31, 2019), and average exchange rates of 1.103 and 1.136 for the three months ended March 31, 2020 and 2019, 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 June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 changes how entities measure credit losses for most financial assets. This standard requires an entity to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. In November 2018, the FASB issued ASU 2018- 19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses," which clarified that receivables arising from operating leases are within the scope of the leasing standard (ASU 2016-02), and not within the scope of ASU 2016-13. We adopted this new standard on its effective date for us of January 1, 2020. Adoption of this new standard did not have a material impact on our consolidated financial statements. |
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): For the Three Months Ended March 31, 2020 2019 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,446 174,177 Net effect of dilutive stock options - based on treasury stock method 170 199 Diluted weighted average common shares outstanding 174,616 174,376 |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Net Income Per Common Share | For the Three Months Ended March 31, 2020 2019 Weighted average common shares and equivalents outstanding: Basic weighted average common shares outstanding 174,446 174,177 Net effect of dilutive stock options - based on treasury stock method 170 199 Diluted weighted average common shares outstanding 174,616 174,376 |
Real Estate Facilities (Tables)
Real Estate Facilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Real Estate Facilities [Abstract] | |
Schedule Of Real Estate Activities | Three Months Ended March 31, 2020 (Amounts in thousands) Operating facilities, at cost: Beginning balance $ 16,289,146 Costs incurred for capital expenditures to maintain real estate facilities 56,857 Acquisitions 177,936 Dispositions ( 282 ) Developed or expanded facilities opened for operation 25,324 Ending balance 16,548,981 Accumulated depreciation: Beginning balance ( 6,623,475 ) Depreciation expense ( 127,675 ) Ending balance ( 6,751,150 ) Construction in process: Beginning balance 141,934 Costs incurred for development and expansion of real estate facilities 45,089 Developed or expanded facilities opened for operation ( 25,324 ) Ending balance 161,699 Total real estate facilities at March 31, 2020 $ 9,959,530 |
Investments In Unconsolidated_2
Investments In Unconsolidated Real Estate Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 December 31, 2019 PSB $ 434,425 $ 427,875 Shurgard 328,801 339,941 Total $ 763,226 $ 767,816 Equity in Earnings of Unconsolidated Real Estate Entities for the Three Months Ended March 31, 2020 2019 PSB $ 21,737 $ 13,720 Shurgard 2,231 3,952 Total $ 23,968 $ 17,672 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Payable [Abstract] | |
Notes Payable | Amounts at March 31, 2020 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 $ ( 1,287 ) $ 498,713 $ 493,176 Notes due September 15, 2027 3.094 % 3.218 % 500,000 ( 3,944 ) 496,056 480,725 Notes due May 1, 2029 3.385 % 3.459 % 500,000 ( 2,799 ) 497,201 490,203 1,500,000 ( 8,030 ) 1,491,970 1,464,104 Euro Denominated Unsecured Debt Notes due April 12, 2024 1.540 % 1.540 % 110,005 - 110,005 110,091 Notes due November 3, 2025 2.175 % 2.175 % 266,227 - 266,227 266,574 Notes due January 24, 2032 0.875 % 0.978 % 550,026 ( 6,332 ) 543,694 509,269 926,258 ( 6,332 ) 919,926 885,934 Mortgage Debt , secured by 27 real estate facilities with a net book value of $ 104.8 million 4.010 % 3.984 % 26,772 - 26,772 27,128 $ 2,453,030 $ ( 14,362 ) $ 2,438,668 $ 2,377,166 Amounts at December 31, 2019 Book Fair Value Value ($ amounts in thousands) U.S. Dollar Denominated Unsecured Debt Notes due September 15, 2022 $ 498,581 $ 505,639 Notes due September 15, 2027 495,924 520,694 Notes due May 1, 2029 497,124 531,911 1,491,629 1,558,244 Euro Denominated Unsecured Debt Notes due April 12, 2024 112,156 115,932 Notes due November 3, 2025 271,433 298,398 Notes due January 24, 2032 - - 383,589 414,330 Mortgage Debt 27,275 28,506 $ 1,902,493 $ 2,001,080 |
Maturities Of Notes Payable | Unsecured Mortgage Debt Debt Total Remainder of 2020 $ - $ 1,519 $ 1,519 2021 - 1,865 1,865 2022 500,000 2,584 502,584 2023 - 19,219 19,219 2024 110,005 124 110,129 Thereafter 1,816,253 1,461 1,817,714 $ 2,426,258 $ 26,772 $ 2,453,030 Weighted average effective rate 2.4 % 4.0 % 2.4 % |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Shareholders’ Equity [Abstract] | |
Preferred Shares Outstanding | Series Earliest Redemption Date Dividend Rate Shares Outstanding Liquidation Preference (Dollar amounts in thousands) Series V 9/20/2017 5.375 % 19,800 $ 495,000 Series W 1/16/2018 5.200 % 20,000 500,000 Series X 3/13/2018 5.200 % 9,000 225,000 Series B 1/20/2021 5.400 % 12,000 300,000 Series C 5/17/2021 5.125 % 8,000 200,000 Series D 7/20/2021 4.950 % 13,000 325,000 Series E 10/14/2021 4.900 % 14,000 350,000 Series F 6/2/2022 5.150 % 11,200 280,000 Series G 8/9/2022 5.050 % 12,000 300,000 Series H 3/11/2024 5.600 % 11,400 285,000 Series I 9/12/2024 4.875 % 12,650 316,250 Series J 11/15/2024 4.700 % 10,350 258,750 Series K 12/20/2024 4.750 % 9,200 230,000 Total Preferred Shares 162,600 $ 4,065,000 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Summary Of Segment Information | For the Three Months Ended March 31, 2020 2019 Self-Storage Segment Revenue $ 674,201 $ 650,408 Cost of operations ( 207,925 ) ( 193,656 ) Net operating income 466,276 456,752 Depreciation and amortization ( 135,900 ) ( 121,941 ) Net income 330,376 334,811 Ancillary Segment Revenue 41,881 38,630 Cost of operations ( 10,945 ) ( 10,545 ) Net operating income 30,936 28,085 Investment in PSB Segment (a) - Equity in earnings of unconsolidated entities 21,737 13,720 Investment in Shurgard Segment (a) - Equity in earnings of unconsolidated entities 2,231 3,952 Total net income allocated to segments 385,280 380,568 Other items not allocated to segments: General and administrative ( 21,064 ) ( 19,503 ) Interest and other income 6,479 6,965 Interest expense ( 13,621 ) ( 8,143 ) Foreign currency exchange gain 8,945 7,791 Gain on sale of real estate 1,117 - Net income $ 367,136 $ 367,678 (a) See Note 4 for a reconciliation of these amounts to our total Equity in Earnings of Unconsolidated Real Estate Entities on our income statements. |
Description Of The Business (Na
Description Of The Business (Narrative) (Details) ft² in Millions | 3 Months Ended | ||
Mar. 31, 2020ft²itemstatecountryshares | Dec. 31, 2019shares | Mar. 31, 2019 | |
Public Storage [Member] | |||
Nature Of Business [Line Items] | |||
PSA self-storage facilities | item | 2,492 | ||
Net rentable square feet | 170 | ||
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% | |
Number of facilities owned by Shurgard | item | 234 | ||
Number of countries in which entity operates | country | 7 | ||
PSB [Member] | |||
Nature Of Business [Line Items] | |||
Net rentable square feet | 27.5 | ||
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] | Mar. 31, 2020item |
Summary Of Significant Accounting Policies [Line Items] | |
Number of self-storage facilities owned | 2,492 |
Commercial facilities in U.S. | 4 |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Income Taxes) (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
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) | 3 Months Ended |
Mar. 31, 2020 | |
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 | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
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 | 12.5 | |
In-place and leasehold interests in land, accumulated amortization | 29.4 | $ 27.5 | |
In-place and leasehold interests in land, amortization expense | 4.7 | $ 3.9 | |
Estimated future amortization expense, remainder of 2020 | 7.6 | ||
Estimated future amortization expense, 2021 | 2.4 | ||
Estimated future amortization expense, thereafter | 6 | ||
Increase in in-place and leasehold interests in land | $ 8.2 |
Summary Of Significant Accoun_8
Summary Of Significant Accounting Policies (Evaluation Of Asset Impairment) (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Trading Activity, Gains and Losses, Net [Line Items] | |||
Exchange rate translation | 1.100 | 1.122 | |
Weighted Average [Member] | |||
Trading Activity, Gains and Losses, Net [Line Items] | |||
Exchange rate | 1.103 | 1.136 |
Summary Of Significant Accou_10
Summary Of Significant Accounting Policies (Net Income Per Common Share) (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | ||
Basic weighted average common shares outstanding | 174,446 | 174,177 |
Net effect of dilutive stock options - based on treasury stock method | 170 | 199 |
Diluted weighted average common shares outstanding | 174,616 | 174,376 |
Real Estate Facilities (Narrati
Real Estate Facilities (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)ft²item | Mar. 31, 2019USD ($) | |
Schedule Of Real Estate Facilities [Line Items] | ||
Payments for development and expansion of real estate facilities | $ 47,600 | $ 77,000 |
Payments for development and expansion of real estate facilities for: Costs incurred in previous periods | 23,132 | 62,723 |
Costs incurred for development and expansion of real estate facilities | 45,089 | |
Unpaid costs incurred for development and expansion of real estate facilities | 20,600 | |
Payments for capital expenditures to maintain real estate facilities | 57,500 | 33,000 |
Payments for capital expenditures to maintain real estate facilities for: Costs incurred in previous periods | 14,665 | $ 10,773 |
Costs incurred for capital expenditures to maintain real estate facilities | 56,857 | |
Unpaid costs incurred for capital expenditures to maintain real estate facilities | $ 14,000 | |
Acquisition Of Self-Storage Facilities Other Investments [Member] | ||
Schedule Of Real Estate Facilities [Line Items] | ||
Number of operating self-storage facilities | item | 9 | |
Net rentable square feet | ft² | 748,000 | |
Total cost of acquisition | $ 186,200 | |
Allocated to intangible assets | 8,200 | |
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 | $ 25,300 | |
Addtional net rentable square feet | ft² | 100,000 |
Real Estate Facilities (Schedul
Real Estate Facilities (Schedule Of Real Estate Activities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Real Estate Facilities [Abstract] | ||
Beginning balance (Operating facilities, at cost) | $ 16,289,146 | |
Costs incurred for capital expenditures to maintain real estate facilities | 56,857 | |
Acquisitions | 177,936 | |
Dispositions | (282) | |
Developed or expanded facilities opened for operation | 25,324 | |
Ending balance (Operating facilities, at cost) | 16,548,981 | |
Beginning balance (Accumulated depreciation) | (6,623,475) | |
Depreciation expense | (127,675) | |
Ending balance (Accumulated depreciation) | (6,751,150) | |
Beginning balance (Construction in process) | 141,934 | |
Costs incurred for development and expansion of real estate facilities | 45,089 | |
Developed or expanded facilities opened for operations | (25,324) | |
Ending balance (Construction in process) | 161,699 | |
Total real estate facilities at March 31, 2020 | $ 9,959,530 | $ 9,807,605 |
Investments In Unconsolidated_3
Investments In Unconsolidated Real Estate Entities (Investment in PSB) (Narrative) (Details) - PSB [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
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 | $ 135.52 | ||
Market value | $ 2,000 | ||
Cash distribution received | 15.2 | $ 15.2 | |
Basis differential | 4 | $ 4.2 | |
Amortization of basis differential | $ 0.2 | $ 0.2 |
Investments In Unconsolidated_4
Investments In Unconsolidated Real Estate Entities (Investment In Shurgard) (Narrative) (Details) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($) | Mar. 31, 2020€ / shares | Dec. 31, 2019shares | |
Schedule of Equity Method Investments [Line Items] | ||||
Exchange rate translation | 1.100 | 1.122 | ||
Shurgard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Shares owned | shares | 31,268,459 | 31,268,459 | ||
Ownership interest, percentage | 35.00% | 35.00% | ||
Closing price per share | € / shares | € 27 | |||
Exchange rate translation | 1.100 | |||
Market value | $ 900 | |||
Change in investment from foreign currency exchange rates | (13.1) | $ (1.9) | ||
Trademark License [Member] | Shurgard [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Cash distribution received | $ 0.3 | $ 0.2 |
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in Unconsolidated Real Estate Entities | $ 763,226 | $ 767,816 | |
Equity in Earnings of Unconsolidated Real Estate Entities | 23,968 | $ 17,672 | |
PSB [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in Unconsolidated Real Estate Entities | 434,425 | 427,875 | |
Equity in Earnings of Unconsolidated Real Estate Entities | 21,737 | 13,720 | |
Shurgard [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in Unconsolidated Real Estate Entities | 328,801 | $ 339,941 | |
Equity in Earnings of Unconsolidated Real Estate Entities | $ 2,231 | $ 3,952 |
Credit Facility (Narrative) (De
Credit Facility (Narrative) (Details) - Credit Facility [Member] - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Apr. 30, 2020 | |
Schedule Of Debt [Line Items] | |||
Credit Facility borrowing capacity | $ 500,000,000 | ||
Expiration of Credit Facility | Apr. 19, 2024 | ||
Interest rate spread (LIBOR) | 0.70% | ||
Frequency of commitment fee | quarterly | ||
Commitment fee percentage | 0.07% | ||
Outstanding borrowings | $ 0 | ||
Reduction in borrowing capacity to amount of letters of credit | $ 15,900,000 | $ 15,900,000 | |
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 ($) | Nov. 03, 2015USD ($) | Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019 | Mar. 31, 2020EUR (€) | Mar. 31, 2020USD ($) | Apr. 12, 2016EUR (€) | Nov. 03, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 545,151,000 | ||||||||||
Foreign currency exchange gain | 8,945,000 | $ 7,791,000 | |||||||||
Cash paid for interest expense | $ 14,100,000 | 9,100,000 | |||||||||
Interest capitalized as real estate | $ 1,200,000 | $ 900,000 | |||||||||
Mortgage Notes [Member] | Minimum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 3.20% | 3.20% | |||||||||
Maturity date | Jan. 1, 2022 | ||||||||||
Mortgage Notes [Member] | Maximum [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 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 | 7.00% | ||||||||||
Adjusted EBTIDA to interest Expense ratio | 42 | ||||||||||
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] | |||||||||||
Issuance date | Apr. 12, 2019 | ||||||||||
Debt issuance amount | $ 500,000,000 | ||||||||||
Debt issuance costs | $ 3,100,000 | ||||||||||
Interest rate | 3.385% | 3.385% | 3.385% | ||||||||
Maturity date | May 1, 2029 | 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 | 3 | ||||||||||
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 | ||||||||||
Interest rate | 2.175% | 2.175% | |||||||||
Maturity date | Nov. 3, 2025 | Nov. 3, 2025 | |||||||||
Proceeds from Issuance of Debt | $ 264,300,000 | ||||||||||
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 | ||||||||||
Interest rate | 1.54% | 1.54% | |||||||||
Maturity date | Apr. 12, 2024 | Apr. 12, 2024 | |||||||||
Proceeds from Issuance of Debt | $ 113,600,000 | ||||||||||
Euro Denominated Unsecured Debt [Member] | Notes Due January 24, 2032 [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Issuance date | Jan. 24, 2020 | ||||||||||
Debt issuance amount | € | € 500,000,000 | ||||||||||
Interest rate | 0.875% | 0.875% | |||||||||
Maturity date | Jan. 24, 2032 | ||||||||||
Proceeds from Issuance of Debt | $ 545,200,000 |
Notes Payable (Notes Payable) (
Notes Payable (Notes Payable) (Details) $ in Thousands | Apr. 12, 2019 | Mar. 31, 2020USD ($)item | Dec. 31, 2019USD ($) |
Principal | $ 2,453,030 | ||
Unamortized Costs | (14,362) | ||
Book Value | 2,438,668 | $ 1,902,493 | |
Fair Value | 2,377,166 | 2,001,080 | |
U.S. Dollar Denominated Unsecured Debt [Member] | |||
Principal | 1,500,000 | ||
Unamortized Costs | (8,030) | ||
Book Value | 1,491,970 | 1,491,629 | |
Fair Value | $ 1,464,104 | 1,558,244 | |
U.S. Dollar Denominated Unsecured Debt [Member] | Notes Due September 15, 2022 [Member] | |||
Coupon Rate | 2.37% | ||
Effective Rate | 2.483% | ||
Principal | $ 500,000 | ||
Unamortized Costs | (1,287) | ||
Book Value | 498,713 | 498,581 | |
Fair Value | $ 493,176 | $ 505,639 | |
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 | ||
Unamortized Costs | (3,944) | ||
Book Value | 496,056 | $ 495,924 | |
Fair Value | $ 480,725 | $ 520,694 | |
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 | ||
Unamortized Costs | (2,799) | ||
Book Value | 497,201 | $ 497,124 | |
Fair Value | $ 490,203 | $ 531,911 | |
Maturity date | May 1, 2029 | May 1, 2029 | May 1, 2029 |
Euro Denominated Unsecured Debt [Member] | |||
Principal | $ 926,258 | ||
Unamortized Costs | (6,332) | ||
Book Value | 919,926 | $ 383,589 | |
Fair Value | $ 885,934 | 414,330 | |
Euro Denominated Unsecured Debt [Member] | Notes Due April 12, 2024 [Member] | |||
Coupon Rate | 1.54% | ||
Effective Rate | 1.54% | ||
Principal | $ 110,005 | ||
Book Value | 110,005 | 112,156 | |
Fair Value | $ 110,091 | $ 115,932 | |
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 | $ 266,227 | ||
Book Value | 266,227 | $ 271,433 | |
Fair Value | $ 266,574 | $ 298,398 | |
Maturity date | Nov. 3, 2025 | Nov. 3, 2025 | |
Euro Denominated Unsecured Debt [Member] | Notes Due January 24, 2032 [Member] | |||
Coupon Rate | 0.875% | ||
Effective Rate | 0.978% | ||
Principal | $ 550,026 | ||
Unamortized Costs | (6,332) | ||
Book Value | 543,694 | ||
Fair Value | $ 509,269 | ||
Maturity date | Jan. 24, 2032 | ||
Mortgage Debt [Member] | |||
Coupon Rate | 4.01% | ||
Effective Rate | 3.984% | ||
Principal | $ 26,772 | ||
Book Value | 26,772 | 27,275 | |
Fair Value | $ 27,128 | $ 28,506 | |
Real estate facilities securing debt | item | 27 | ||
Net book value of real estate facilities securing notes payable | $ 104,800 |
Notes Payable (Maturities Of No
Notes Payable (Maturities Of Notes Payable) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
Total debt | $ 2,453,030 |
Unsecured Debt [Member] | |
Debt Instrument [Line Items] | |
2022 | 500,000 |
2024 | 110,005 |
Thereafter | 1,816,253 |
Total debt | $ 2,426,258 |
Weighted average effective rate | 2.40% |
Mortgage Debt [Member] | |
Debt Instrument [Line Items] | |
Remainder of 2020 | $ 1,519 |
2021 | 1,865 |
2022 | 2,584 |
2023 | 19,219 |
2024 | 124 |
Thereafter | 1,461 |
Total debt | $ 26,772 |
Weighted average effective rate | 4.00% |
Total [Member] | |
Debt Instrument [Line Items] | |
Remainder of 2020 | $ 1,519 |
2021 | 1,865 |
2022 | 502,584 |
2023 | 19,219 |
2024 | 110,129 |
Thereafter | 1,817,714 |
Total debt | $ 2,453,030 |
Weighted average effective rate | 2.40% |
Noncontrolling Interests (Narra
Noncontrolling Interests (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)itemshares | Mar. 31, 2019USD ($) | |
Noncontrolling Interest [Line Items] | ||
Distributions paid | $ 1,172 | $ 1,803 |
Contributions by noncontrolling interests | $ 566 | 196 |
Noncontrolling Interests [Member] | ||
Noncontrolling Interest [Line Items] | ||
Permanent noncontrolling interest in subsidiaries, number of self-storage facilities | item | 18 | |
Permanent noncontrolling interest in subsidiaries, number of self-storage facilities under construction | item | 8 | |
Partnership units conversion ratio | 1 | |
Convertible partnership units | shares | 231,978 | |
Income allocated to other permanent noncontrolling interest in subsidiaries | $ 1,000 | 1,200 |
Distributions paid | 1,172 | 1,803 |
Contributions by noncontrolling interests | $ 566 | $ 196 |
Shareholders' Equity (Preferred
Shareholders' Equity (Preferred Shares) (Narrative) (Details) | Mar. 28, 2019 | Mar. 11, 2019USD ($)$ / sharesshares | Mar. 31, 2020USD ($)item$ / shares | Mar. 31, 2019USD ($) |
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 | |||
Affirmative vote of outstanding shares of a series of Preferred Shares required for any material and adverse amendment to the terms of series, percent | 66.67% | |||
Affirmative vote of outstanding shares of all Preferred Shares, voting as a single class, required to issue shares ranking senior to Preferred Shares, percent | 66.67% | |||
Redemption price per share | $ / shares | $ 25 | |||
Gross proceeds from issuance of preferred stock | $ 276,723,000 | |||
EITF D-42 allocations | 8,533,000 | |||
Series H Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Redemption price per share | $ / shares | $ 25 | |||
Shares issued | shares | 11,400,000 | |||
Preferred shares per depositary share | shares | 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% | |||
EITF D-42 allocations | $ 8,500,000 |
Shareholders_ Equity (Dividends
Shareholders’ Equity (Dividends) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Shareholders’ Equity [Abstract] | ||
Common stock dividends paid in aggregate | $ 349,800 | $ 349,500 |
Common stock dividends paid per share | $ 2 | $ 2 |
Preferred share dividends | $ 52,005 | $ 55,012 |
Shareholders' Equity (Preferr_2
Shareholders' Equity (Preferred Shares Outstanding) (Details) - USD ($) $ in Thousands | Mar. 28, 2019 | Mar. 11, 2019 | Mar. 31, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Preferred stock, shares outstanding | 162,600 | 162,600 | ||
Liquidation Preference | $ 4,065,000 | |||
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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 225,000 | |||
Series Y Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Dividend Rate % | 6.375% | |||
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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Liquidation Preference | $ 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 | |||
Series I Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Earliest Redemption Date | Sep. 12, 2024 | |||
Dividend Rate % | 4.875% | |||
Preferred stock, shares outstanding | 12,650 | |||
Liquidation Preference | $ 316,250 | |||
Series J Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Earliest Redemption Date | Nov. 15, 2024 | |||
Dividend Rate % | 4.70% | |||
Preferred stock, shares outstanding | 10,350 | |||
Liquidation Preference | $ 258,750 | |||
Series K Preferred Stock [Member] | ||||
Class of Stock [Line Items] | ||||
Earliest Redemption Date | Dec. 20, 2024 | |||
Dividend Rate % | 4.75% | |||
Preferred stock, shares outstanding | 9,200 | |||
Liquidation Preference | $ 230,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | |
Related Party Transaction [Line Items] | ||
Tenants reinsurance premiums earned by subsidiaries | $ | $ 349 | $ 323 |
Hughes Family [Member] | ||
Related Party Transaction [Line Items] | ||
Percentage ownership of common shares outstanding | 14.10% | |
Canada [Member] | Hughes Family [Member] | ||
Related Party Transaction [Line Items] | ||
Number of self-storage facilities | item | 63 | |
Ownership interest | 0.00% |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Options) (Narrative) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period, number of years | 10 years | ||
Compensation expense | $ 0.9 | $ 0.8 | |
Stock options granted | 770,000 | ||
Stock options exercised | 8,000 | ||
Stock options forfeited | 12,000 | ||
Stock options outstanding | 3,089,667 | 2,339,667 | |
Exercisable, average exercise price per share | $ 210.58 | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, number of years | 3 years | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, number of years | 5 years |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Share Units) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash paid in exchange for common shares issued | $ 8,507 | $ 9,757 | |
Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period | 25,460 | ||
Forfeited in period | 12,095 | ||
Vested in period | 74,089 | ||
Common shares issued upon vesting | 48,407 | ||
Cash paid in exchange for common shares issued | $ 8,500 | 9,800 | |
Common stock withheld upon vesting in exchange for tax deposits | 25,682 | ||
Restricted share units outstanding | 558,426 | 619,150 | |
Restricted share unit expense | $ 5,700 | 6,800 | |
Taxes incurred upon vesting of restricted share units | $ 1,100 | $ 1,000 | |
Minimum [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, number of years | 5 years | ||
Maximum [Member] | Restricted Share Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, number of years | 8 years |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - country | Mar. 31, 2020 | Mar. 31, 2019 |
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% |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 716,082 | $ 689,038 |
Cost of operations | (207,925) | (193,656) |
Cost of operations | (10,945) | (10,545) |
Depreciation and amortization | (135,900) | (121,941) |
Equity in earnings of unconsolidated real estate entities | 23,968 | 17,672 |
General and administrative | (21,064) | (19,503) |
Interest and other income | 6,479 | 6,965 |
Interest expense | (13,621) | (8,143) |
Foreign currency exchange gain | 8,945 | 7,791 |
Gain on sale of real estate | 1,117 | |
Net income | 367,136 | 367,678 |
Self-Storage Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 674,201 | 650,408 |
Cost of operations | (207,925) | (193,656) |
Net operating income | 466,276 | 456,752 |
Depreciation and amortization | (135,900) | (121,941) |
Net income | 330,376 | 334,811 |
Ancillary Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 41,881 | 38,630 |
Cost of operations | (10,945) | (10,545) |
Net operating income | 30,936 | 28,085 |
Invesment in PSB [Member] | ||
Segment Reporting Information [Line Items] | ||
Equity in earnings of unconsolidated real estate entities | 21,737 | 13,720 |
Investment In Shurgard [Member] | ||
Segment Reporting Information [Line Items] | ||
Equity in earnings of unconsolidated real estate entities | 2,231 | 3,952 |
Allocated to Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Net income | 385,280 | 380,568 |
Other Items Not Allocated To Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
General and administrative | (21,064) | (19,503) |
Interest and other income | 6,479 | 6,965 |
Interest expense | (13,621) | (8,143) |
Foreign currency exchange gain | 8,945 | $ 7,791 |
Gain on sale of real estate | $ 1,117 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020USD ($)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 | 950,000 |
Aggregate coverage of tenants participating in insurance program | $ 3,400,000,000 |
Construction commitments | 103,000,000 |
Construction commitments remainder of 2020 | 75,000,000 |
Construction commitments 2021 | 23,000,000 |
Construction commitments 2022 | $ 5,000,000 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - Subsequent Event [Member] $ in Millions | 1 Months Ended |
Apr. 30, 2020USD ($)ft² | |
Subsequent Event [Line Items] | |
Net rentable square feet | ft² | 419,000 |
Total cost of acquisition | $ | $ 66.8 |