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Related Party Transactions
 12 Months Ended
Mar. 31, 2025
Related Party Transactions [Abstract]  
Related Party Transactions

Note 20. Related Party Transactions

U-Haul Holding Company has engaged in related party transactions and has continuing related party interests with certain major stockholders, directors and officers of the consolidated group as disclosed below.

SAC Holding Corporation and SAC Holding II Corporation (collectively, “SAC Holdings”) were established in order to acquire and develop self-storage properties. These properties are being managed by us pursuant to management agreements. SAC Holdings, Four SAC Self-Storage Corporation, Five SAC Self-Storage Corporation, Galaxy Investments, L.P. and 2015 SAC Self-Storage, LLC are substantially controlled by Blackwater Investments, Inc. (“Blackwater”). Blackwater is wholly owned by Willow Grove Holdings LP, which is owned by Mark V. Shoen (a significant stockholder), and various trusts associated with Edward J. Shoen (our Chairman of the Board, President and a significant stockholder) and Mark V. Shoen.

Related Party Revenues

 

 

 

Years Ended March 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

U-Haul management fee revenue from Blackwater

$

 

29,903

 

$

 

29,702

 

$

 

29,825

 

U-Haul management fee revenue from Mercury

 

 

6,908

 

 

 

7,302

 

 

 

7,248

 

 

$

 

36,811

 

$

 

37,004

 

$

 

37,073

 

 

We currently manage the self-storage properties owned or leased by Blackwater and Mercury Partners, L.P. (“Mercury”), pursuant to a standard form of management agreement, under which we receive a management fee of between 4% and 10% of the gross receipts plus reimbursement for certain expenses. We received management fees, exclusive of reimbursed expenses, of $37.1 million, $37.2 million and $37.0 million from the above-mentioned entities during fiscal 2025, 2024 and 2023, respectively. This management fee is consistent with the fee received for other properties we previously managed for third parties. Mark V. Shoen controls the general partner of Mercury. The limited partner interests of Mercury are owned indirectly by James P. Shoen and various trusts benefiting Edward J. Shoen and James P. Shoen or their descendants.

During the fourth quarter of fiscal 2024, Mercury exercised their option to purchase 78 U-Haul branded self-storage locations from W.P. Carey. The self-storage component of these properties was previously leased by Mercury from W.P. Carey and managed by U-Haul, while the non-self-storage portions of these properties were leased by U-Haul. Post acquisition, Mercury now owns all of these properties and U-Haul acts as property manager.

There were several changes recognized in fiscal 2025 that will continue going forward as a result of this transaction. Self-moving and self-storage products and service sales along with the associated cost of product goods sold previously recognized by U-Haul will now be with Mercury. Self-moving equipment rental revenue and U-Box related revenue will remain unchanged; however, Mercury will earn standard commissions for the transactions at these locations. Certain operating expenses at these locations that were formerly the responsibility of U-Haul will now be reimbursed by Mercury. The net effect of all of these changes is not expected to result in a material change to operating earnings over the course of the fiscal year.

From an operational standpoint our customers will not recognize any changes to the services they receive from these locations.

Related Party Costs and Expenses

 

 

 

Years Ended March 31,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(In thousands)

 

U-Haul lease expenses to Blackwater

$

 

2,416

 

$

 

2,416

 

$

 

2,416

 

U-Haul printing expenses to Blackwater

 

 

4,624

 

 

 

3,681

 

 

 

—

 

U-Haul commission expenses to Blackwater

 

 

83,685

 

 

 

82,095

 

 

 

88,067

 

U-Haul lease expenses to Mercury

 

 

152

 

 

 

25

 

 

 

—

 

U-Haul commission expenses to Mercury

 

 

22,530

 

 

 

1,893

 

 

 

—

 

 

$

 

113,407

 

$

 

90,110

 

$

 

90,483

 

 

We lease space for marketing company offices, vehicle repair shops and hitch installation centers from subsidiaries of Blackwater and Mercury. The terms of the leases are similar to the terms of leases for other properties owned by unrelated parties that are leased to us.

 

SAC Holdings provides ancillary and specialty printing services to us. The financial and other terms of the transactions are substantially identical to the terms of additional specialty printing vendors.

As of March 31, 2025, subsidiaries of Blackwater acted as U-Haul independent dealers. The financial and other terms of the dealership contracts with the aforementioned companies and their subsidiaries are substantially identical to the terms of those with our other independent dealers whereby commissions are paid by us based upon equipment rental revenues.

These agreements with subsidiaries of Blackwater and Mercury, excluding Dealer Agreements, provided revenues of $36.8 million, $29.7 million and $29.8 million, expenses of $7.2 million, $2.4 million and $2.4 million and cash flows of $34.5 million, $27.3 million and $27.4 million during fiscal 2025, 2024 and 2023, respectively. Revenues were $512.8 million, $384.5 million and $418.9 million and commission expenses were $106.2 million, $82.1 million and $88.1 million, respectively, related to Dealer Agreements for fiscal 2025, 2024 and 2023.

In November 2024, Real Estate purchased a property from Property and Casualty Insurance for $4.6 million.

We determined that we do not have a variable interest pursuant to the VIE model under ASC 810 in the holding entities of Blackwater or in Mercury.

Related Party Assets

 

 

 

March 31,

 

 

 

2025

 

 

2024

 

 

 

(In thousands)

 

U-Haul receivable from Blackwater

$

 

28,442

 

$

 

31,950

 

U-Haul receivable from Mercury

 

 

12,517

 

 

 

24,536

 

Other (a)

 

 

4,044

 

 

 

1,448

 

 

$

 

45,003

 

$

 

57,934

 

 

(a)
Timing differences for intercompany balances with insurance subsidiaries resulting from the three-month difference in reporting periods.