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SEGMENT INFORMATION
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
The Company’s segment disclosures present the measure used by the chief operating decision maker (“CODM”) for purposes of assessing each segment’s performance. The Company’s CODM is its Executive Committee (“EC”), which uses net operating income (“NOI”) to assess the performance of the business for the Company’s reportable operating segments. The EC is comprised of the Chief Executive Officer, Chief Financial Officer, Chief Investment Officer, Chief Digital Officer, Chief Strategy and Partnership Officer, Chief Operating Officer, and Chief Legal Officer. The Company’s segments are comprised of two reportable segments: (1) self-storage operations and (2) tenant reinsurance. NOI for the Company’s self-storage operations represents total property revenue less direct property operating expenses. NOI for the Company’s tenant reinsurance segment represents tenant reinsurance revenue less tenant reinsurance expenses.
The Company’s consolidated revenues equal total segment revenues plus management fees and other income. The self-storage operations activities include rental operations of wholly-owned stores. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Management fees and other income is excluded from segment revenues and net operating income.
The CODM regularly reviews NOI to assess the performance of each segment and makes decisions about resources to be allocated to each segment. As part of this process, the CODM approves each operating segment’s budget, determines allocation of funds for capital expenditures, and reviews discrete financial information on a quarterly basis. Based on each segment’s budgeted operating revenues and expenses, resources are allocated to each segment, and these budgeted amounts comprising NOI are compared against actual segment performance.
For all periods presented, substantially all of the Company’s real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. Financial information for the Company’s business segments is set forth below:
For the Three Months Ended March 31,
20252024
Revenues
Self-Storage Operations$704,380 $688,044 
Tenant Reinsurance84,712 81,347 
Total segment revenues$789,092 $769,391 
Operating expenses
Self-Storage Operations:
Payroll and benefits$43,746 $43,399 
Marketing15,150 16,625 
Office expense34,994 29,454 
Property operating expense21,225 20,218 
Repairs and maintenance16,257 15,211 
Property taxes79,884 67,680 
Insurance8,432 8,245 
Other segment items (1)
3,894 3,686 
Total self-storage operations expenses223,582 204,518 
 
Tenant Reinsurance:
Tenant reinsurance expense and other segment items (2)
$17,116 $18,505 
 
Total segment operating expenses$240,698 $223,023 
 
Net operating income
Self-Storage Operations$480,798 $483,526 
Tenant Reinsurance67,596 62,842 
Total segment net operating income:$548,394 $546,368 
Other components of net income:
Management fees and other income30,905 30,148 
General and administrative expense(45,974)(43,722)
Depreciation and amortization expense(180,356)(196,966)
Gain on real estate assets held for sale and sold, net35,761 — 
Interest expense (142,399)(132,887)
Non-cash interest expense related to amortization of discount on Life Storage unsecured senior notes(11,313)(10,705)
Interest income 38,967 23,573 
Equity in earnings and dividend income from unconsolidated real estate entities19,931 15,007 
Income tax expense(8,991)(6,742)
Net income $284,925 $224,074 
(1) Other segment items for the Self-Storage Operations segment include miscellaneous items such as legal and professional fees, capital expenditures, taxes, and casualty losses.
(2) Tenant reinsurance expense and other segment items for the Tenant Reinsurance segment include claims expense, acquisition costs, claims service fees, and miscellaneous administrative items.