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Segment Disclosures
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Disclosures

Note 9. Segment Disclosures

We operate in two reportable business segments: (i) self storage operations and (ii) our Managed REIT Platform business.

Management evaluates performance based upon property net operating income (“NOI”). For our self storage operations, NOI is defined as leasing and related revenues, less property level operating expenses. NOI for the Company’s Managed REIT Platform business represents Managed REIT Platform revenues less Managed REIT Platform expenses.

The following tables summarize information for the reportable segments for the periods presented:

 

 

 

Year Ended December 31, 2022

 

 

 

 

 

 

Managed REIT

 

 

Corporate

 

 

 

 

 

 

Self Storage

 

 

Platform

 

 

and Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Self storage rental revenue

 

$

191,749,578

 

 

$

—

 

 

$

—

 

 

$

191,749,578

 

Ancillary operating revenue

 

 

8,445,803

 

 

 

—

 

 

 

—

 

 

 

8,445,803

 

Managed REIT Platform revenue

 

 

—

 

 

 

7,819,216

 

 

 

—

 

 

 

7,819,216

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

4,628,497

 

 

 

—

 

 

 

4,628,497

 

Total revenues

 

 

200,195,381

 

 

 

12,447,713

 

 

 

—

 

 

 

212,643,094

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

58,437,110

 

 

 

—

 

 

 

—

 

 

 

58,437,110

 

Managed REIT Platform expense

 

 

—

 

 

 

2,485,290

 

 

 

—

 

 

 

2,485,290

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

4,628,497

 

 

 

—

 

 

 

4,628,497

 

General and administrative

 

 

—

 

 

 

—

 

 

 

28,253,905

 

 

 

28,253,905

 

Depreciation

 

 

48,503,743

 

 

 

—

 

 

 

913,936

 

 

 

49,417,679

 

Intangible amortization expense

 

 

14,728,148

 

 

 

472,706

 

 

 

—

 

 

 

15,200,854

 

Acquisition expenses

 

 

888,009

 

 

 

—

 

 

 

—

 

 

 

888,009

 

Contingent earnout adjustment

 

 

—

 

 

 

1,514,447

 

 

 

—

 

 

 

1,514,447

 

Write-off of equity interest and preexisting
      relationships upon acquisition of control

 

 

—

 

 

 

2,049,682

 

 

 

—

 

 

 

2,049,682

 

Total operating expenses

 

 

122,557,010

 

 

 

11,150,622

 

 

 

29,167,841

 

 

 

162,875,473

 

Gain on equity interests upon acquisition

 

 

—

 

 

 

16,101,237

 

 

 

—

 

 

 

16,101,237

 

Income (loss) from operations

 

 

77,638,371

 

 

 

17,398,328

 

 

 

(29,167,841

)

 

 

65,868,858

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(41,339,401

)

 

 

—

 

 

 

(172,510

)

 

 

(41,511,911

)

Net loss on extinguishment of debt

 

 

(2,393,475

)

 

 

—

 

 

 

—

 

 

 

(2,393,475

)

Other, net

 

 

(209,578

)

 

 

155,332

 

 

 

(794,559

)

 

 

(848,805

)

Income tax (expense) benefit

 

 

36,197

 

 

 

563,053

 

 

 

(44,465

)

 

 

554,785

 

Net income (loss)

 

$

33,732,114

 

 

$

18,116,713

 

 

$

(30,179,375

)

 

$

21,669,452

 

 

 

 

Year Ended December 31, 2021

 

 

 

 

 

 

Managed REIT

 

 

Corporate

 

 

 

 

 

 

Self Storage

 

 

Platform

 

 

and Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Self storage rental revenue

 

$

150,610,337

 

 

$

—

 

 

$

—

 

 

$

150,610,337

 

Ancillary operating revenue

 

 

7,552,597

 

 

 

—

 

 

 

—

 

 

 

7,552,597

 

Managed REIT Platform revenue

 

 

—

 

 

 

6,322,970

 

 

 

—

 

 

 

6,322,970

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

4,278,667

 

 

 

—

 

 

 

4,278,667

 

Total revenues

 

 

158,162,934

 

 

 

10,601,637

 

 

 

—

 

 

 

168,764,571

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

48,127,657

 

 

 

—

 

 

 

—

 

 

 

48,127,657

 

Managed REIT Platform expense

 

 

—

 

 

 

1,451,166

 

 

 

—

 

 

 

1,451,166

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

4,278,667

 

 

 

—

 

 

 

4,278,667

 

General and administrative

 

 

—

 

 

 

—

 

 

 

23,265,196

 

 

 

23,265,196

 

Depreciation

 

 

40,203,484

 

 

 

—

 

 

 

742,922

 

 

 

40,946,406

 

Intangible amortization expense

 

 

11,134,100

 

 

 

1,288,105

 

 

 

—

 

 

 

12,422,205

 

Acquisition expenses

 

 

934,838

 

 

 

—

 

 

 

—

 

 

 

934,838

 

Contingent earnout adjustment

 

 

—

 

 

 

12,619,744

 

 

 

—

 

 

 

12,619,744

 

Write-off of equity interest and preexisting
      relationships in SST IV upon
      acquisition of control

 

 

—

 

 

 

8,389,573

 

 

 

—

 

 

 

8,389,573

 

Total operating expenses

 

 

100,400,079

 

 

 

28,027,255

 

 

 

24,008,118

 

 

 

152,435,452

 

Gain on sale of real estate

 

 

178,631

 

 

 

—

 

 

 

—

 

 

 

178,631

 

Income (loss) from operations

 

 

57,941,486

 

 

 

(17,425,618

)

 

 

(24,008,118

)

 

 

16,507,750

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(33,207,310

)

 

 

—

 

 

 

(176,294

)

 

 

(33,383,604

)

Net loss on extinguishment of debt

 

 

(2,444,788

)

 

 

—

 

 

 

—

 

 

 

(2,444,788

)

Other, net

 

 

(173,245

)

 

 

(602,403

)

 

 

(1,279,703

)

 

 

(2,055,351

)

Income tax (expense) benefit

 

 

(193,604

)

 

 

2,004,879

 

 

 

—

 

 

 

1,811,275

 

Net income (loss)

 

$

21,922,539

 

 

$

(16,023,142

)

 

$

(25,464,115

)

 

$

(19,564,718

)

 

 

 

 

 

Year Ended December 31, 2020

 

 

 

 

 

 

Managed REIT

 

 

Corporate

 

 

 

 

 

 

Self Storage

 

 

Platform

 

 

and Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Self storage rental revenue

 

$

104,888,883

 

 

$

—

 

 

$

—

 

 

$

104,888,883

 

Ancillary operating revenue

 

 

5,286,042

 

 

 

—

 

 

 

—

 

 

 

5,286,042

 

Managed REIT Platform revenue

 

 

—

 

 

 

8,048,630

 

 

 

—

 

 

 

8,048,630

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

5,800,808

 

 

 

—

 

 

 

5,800,808

 

Total revenues

 

 

110,174,925

 

 

 

13,849,438

 

 

 

—

 

 

 

124,024,363

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

38,305,199

 

 

 

—

 

 

 

—

 

 

 

38,305,199

 

Managed REIT Platform expense

 

 

—

 

 

 

2,806,921

 

 

 

—

 

 

 

2,806,921

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

5,800,808

 

 

 

—

 

 

 

5,800,808

 

General and administrative

 

 

—

 

 

 

—

 

 

 

16,471,199

 

 

 

16,471,199

 

Depreciation

 

 

31,773,526

 

 

 

—

 

 

 

521,101

 

 

 

32,294,627

 

Intangible amortization expense

 

 

5,234,312

 

 

 

4,542,804

 

 

 

—

 

 

 

9,777,116

 

Acquisition expenses

 

 

1,366,092

 

 

 

—

 

 

 

—

 

 

 

1,366,092

 

Contingent earnout adjustment

 

 

—

 

 

 

(2,500,000

)

 

 

—

 

 

 

(2,500,000

)

Impairment of goodwill and intangible assets

 

 

—

 

 

 

36,465,732

 

 

 

—

 

 

 

36,465,732

 

Impairment of investments in Managed REITs

 

 

—

 

 

 

4,376,879

 

 

 

—

 

 

 

4,376,879

 

Total operating expenses

 

 

76,679,129

 

 

 

51,493,144

 

 

 

16,992,300

 

 

 

145,164,573

 

Operating income (loss)

 

 

33,495,796

 

 

 

(37,643,706

)

 

 

(16,992,300

)

 

 

(21,140,210

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(35,864,227

)

 

 

—

 

 

 

(189,085

)

 

 

(36,053,312

)

Other, net

 

 

(783,189

)

 

 

1,222,086

 

 

 

(278,436

)

 

 

160,461

 

Income tax (expense) benefit

 

 

2,491,215

 

 

 

3,335,043

 

 

 

—

 

 

 

5,826,258

 

Net loss

 

$

(660,405

)

 

$

(33,086,577

)

 

$

(17,459,821

)

 

$

(51,206,803

)

 

 

 

The following table summarizes our total assets by segment:

 

Segments

 

December 31, 2022

 

 

December 31, 2021

 

Self Storage(1)

 

$

1,820,922,309

 

 

$

1,546,835,094

 

Managed REIT Platform(2)

 

 

65,433,006

 

 

 

21,707,326

 

Corporate and Other

 

 

60,862,072

 

 

 

49,750,356

 

Total assets(3)

 

$

1,947,217,387

 

 

$

1,618,292,776

 

 

(1) Included in the assets of the Self Storage segment as of December 31, 2022 and 2021 were approximately $52.2 million and $49.8 million of goodwill, respectively. Additionally, as of December 31, 2022 we had never recorded any impairment charges to goodwill within the Self Storage segment.

 

(2) Included in the assets of the Managed REIT Platform segment as of December 31, 2022 and 2021, were approximately $1.4 million and $3.9 million of goodwill, respectively. Such goodwill is net of previous impairment charges in the Managed REIT Platform segment of approximately $24.7 million as of December 31, 2022 and 2021, which relates to the impairment charge recorded during the quarter ended March 31, 2020.

 

(3) Other than our investments in and advances to Managed REITs, substantially all of our investments in real estate facilities and intangible assets made during the years ended December 31, 2022 and 2021 were associated with our self storage platform.

 

As of December 31, 2022 and 2021, approximately $170 million and $185 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the years ended December 31, 2022, 2021, and 2020, approximately $21.5 million, $19.2 million, and $14.7 million, respectively, of our revenues in the self storage segment related to our operations in Canada. Substantially all of our operations related to the management fees we generate through our management contracts with the Managed REITs are performed in the U.S.; accordingly substantially all of our assets and revenues related to our Managed REIT segment are based in the U.S. as well.