INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIES (Tables)

3 Months Ended

Mar. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

Schedule of investments in unconsolidated real estate ventures

Net investments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures consist of the following:


	Number of Stores	Equity Ownership %	Excess Profit % (1)	March 31,		December 31,
				2025		2024
PRISA Self Storage LLC	85	4%	4%	$	8,640	$	8,967
HF1 Sovran HHF Storage Holdings LLC	37	49%	49%-59%	302,982		304,526
Storage Portfolio II JV LLC	36	10%	30%	(9,777)		(9,584)
Storage Portfolio IV JV LLC	32	10%	30%	46,832		47,150
Storage Portfolio I LLC	24	34%	49%	(43,913)		(43,803)
PR II EXR JV LLC (2)	—	25%	25%	—		105,909
HF2 Sovran HHF Storage Holdings II LLC	22	49%	49%-59%	113,180		114,034
HF5 Life Storage-HIERS Storage LLC	17	20%	20%	25,047		25,192
HF6 191 V Life Storage Holdings LLC	17	20%	20%	10,532		10,821
ESS-CA TIVS JV LP	16	55%	55%-65%	27,097		27,217
VRS Self Storage, LLC	16	45%	54%	(17,913)		(17,557)
HF10 Life Storage HHF Wasatch Holdings LLC	16	20%	20%	18,913		19,295
Other unconsolidated real estate ventures	121	10%-50%	10%-50%	313,132		314,852
SmartStop Self Storage REIT, Inc. Preferred Stock (5)	n/a	n/a	n/a	200,000		200,000
Strategic Storage Trust VI, Inc. Preferred Stock (4)	n/a	n/a	n/a	150,000		150,000
Strategic Storage Growth Trust III, Inc. Preferred Stock (3)	n/a	n/a	n/a	100,000		—
Net Investments in and Cash distributions in unconsolidated real estate entities	439			$	1,244,752	$	1,257,019

Investments in unconsolidated real estate entities				$	1,320,849	$	1,332,338
Cash distributions in unconsolidated real estate ventures				(76,097)		(75,319)
Net Investments in and Cash distributions in unconsolidated real estate entities				$	1,244,752	$	1,257,019

(1) Includes pro-rata equity ownership share and promoted interest.

(2) On March 31, 2025, the Company closed on the transfer and distribution of membership interests in its PR II EXR JV LLC joint venture. The Company exchanged its 25% ownership interest in 17 properties for its partner’s 75% ownership interest in six properties. The portfolio consisted of 23 properties; therefore, the Company now owns 100% of the six properties, and its partner now owns 100% of the 17 properties.

(3) On February 4, 2025, the Company invested $100,000 in shares of newly issued convertible preferred stock of Strategic Storage Growth Trust III, Inc., an affiliate of SmartStop. The dividend rate for the preferred shares is 8.85% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing, and are redeemable thereafter subject to a redemption premium. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company’s condensed consolidated statements of operations.

(4) In May 2023, the Company invested $150,000 in shares of convertible preferred stock of Strategic Storage Trust VI, Inc. with a dividend rate of 8.35% per annum, subject to increase after five years. The preferred shares are generally not redeemable for three years, except in the case of a change of control or initial listing of Strategic Storage. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities on the Company’s condensed consolidated statements of operations.

(5) In October 2019, the Company invested $200,000 in shares of convertible preferred stock of SmartStop with a dividend rate of 7.00% per annum, subject to increase after five years. The preferred shares are generally not redeemable for five years, except in the case of a change of control or initial listing of SmartStop. Dividend income from this investment is included on the equity in earnings and dividend income from unconsolidated real estate entities line on the Company’s

condensed consolidated statements of operations. Subsequent to quarter end, the Company was repaid its $200,000 preferred equity investment in SmartStop.