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Segment Disclosures | 6 Months Ended
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Jun. 30, 2023
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 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:
|  | Three Months Ended June 30, 2023 |
|  |  |  |  | Managed REIT |  |  | Corporate |  |  |  |
|  | Self Storage |  |  | Platform |  |  | and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Self storage rental revenue |  | $ | 51,677,815 |  |  | $ | — |  |  | $ | — |  |  | $ | 51,677,815 |
Ancillary operating revenue |  |  | 2,180,151 |  |  |  | — |  |  |  | — |  |  |  | 2,180,151 |
Managed REIT Platform revenue |  |  | — |  |  |  | 4,320,705 |  |  |  | — |  |  |  | 4,320,705 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 1,411,699 |  |  |  | — |  |  |  | 1,411,699 |
Total revenues |  |  | 53,857,966 |  |  |  | 5,732,404 |  |  |  | — |  |  |  | 59,590,370 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses |  |  | 16,482,843 |  |  |  | — |  |  |  | — |  |  |  | 16,482,843 |
Managed REIT Platform expense |  |  | — |  |  |  | 681,131 |  |  |  | — |  |  |  | 681,131 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 1,411,699 |  |  |  | — |  |  |  | 1,411,699 |
General and administrative |  |  | — |  |  |  | — |  |  |  | 7,181,892 |  |  |  | 7,181,892 |
Depreciation |  |  | 13,143,376 |  |  |  | — |  |  |  | 232,546 |  |  |  | 13,375,922 |
Intangible amortization expense |  |  | 1,786,761 |  |  |  | 48,930 |  |  |  | — |  |  |  | 1,835,691 |
Acquisition expenses |  |  | 11,106 |  |  |  | — |  |  |  | — |  |  |  | 11,106 |
Total operating expenses |  |  | 31,424,086 |  |  |  | 2,141,760 |  |  |  | 7,414,438 |  |  |  | 40,980,284 |
Income (loss) from operations |  |  | 22,433,880 |  |  |  | 3,590,644 |  |  |  | (7,414,438 | ) |  |  | 18,610,086 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Equity in earnings (losses) from investments in JV Properties |  |  | — |  |  |  | — |  |  |  | (535,767 | ) |  |  | (535,767 | )
Equity in earnings (losses) from investments in Managed REITs |  |  | — |  |  |  | (216,725 | ) |  |  | — |  |  |  | (216,725 | )
Other, net |  |  | 504,831 |  |  |  | 696,050 |  |  |  | (8,366 | ) |  |  | 1,192,515 |
Interest expense |  |  | (14,862,399 | ) |  |  | — |  |  |  | (42,150 | ) |  |  | (14,904,549 | )
Income tax (expense) benefit |  |  | (187,718 | ) |  |  | (43,726 | ) |  |  | 365,238 |  |  |  | 133,794 |
Net income (loss) |  | $ | 7,888,594 |  |  | $ | 4,026,243 |  |  | $ | (7,635,483 | ) |  | $ | 4,279,354 |
|  | Three Months Ended June 30, 2022 |
|  |  |  |  | Managed REIT |  |  | Corporate |  |  |  |
|  | Self Storage |  |  | Platform |  |  | and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Self storage rental revenue |  | $ | 46,471,360 |  |  | $ | — |  |  | $ | — |  |  | $ | 46,471,360 |
Ancillary operating revenue |  |  | 2,098,835 |  |  |  | — |  |  |  | — |  |  |  | 2,098,835 |
Managed REIT Platform revenue |  |  | — |  |  |  | 2,013,134 |  |  |  | — |  |  |  | 2,013,134 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 1,204,919 |  |  |  | — |  |  |  | 1,204,919 |
Total revenues |  |  | 48,570,195 |  |  |  | 3,218,053 |  |  |  | — |  |  |  | 51,788,248 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses |  |  | 13,637,231 |  |  |  | — |  |  |  | — |  |  |  | 13,637,231 |
Managed REIT Platform expense |  |  | — |  |  |  | 617,846 |  |  |  | — |  |  |  | 617,846 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 1,204,919 |  |  |  | — |  |  |  | 1,204,919 |
General and administrative |  |  | — |  |  |  | — |  |  |  | 7,946,583 |  |  |  | 7,946,583 |
Depreciation |  |  | 11,654,085 |  |  |  | — |  |  |  | 172,021 |  |  |  | 11,826,106 |
Intangible amortization expense |  |  | 4,312,249 |  |  |  | 159,724 |  |  |  | — |  |  |  | 4,471,973 |
Acquisition expenses |  |  | 285,097 |  |  |  | — |  |  |  | — |  |  |  | 285,097 |
Contingent earnout adjustment |  |  | — |  |  |  | 800,000 |  |  |  | — |  |  |  | 800,000 |
Write-off of equity interest and preexisting relationships upon acquisition of control |  |  | — |  |  |  | 2,049,682 |  |  |  | — |  |  |  | 2,049,682 |
Total operating expenses |  |  | 29,888,662 |  |  |  | 4,832,171 |  |  |  | 8,118,604 |  |  |  | 42,839,437 |
Gain on equity interests upon acquisition |  |  | — |  |  |  | 16,101,237 |  |  |  | — |  |  |  | 16,101,237 |
Income (loss) from operations |  |  | 18,681,533 |  |  |  | 14,487,119 |  |  |  | (8,118,604 | ) |  |  | 25,050,048 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Equity in earnings (losses) from investments in JV Properties |  |  | — |  |  |  | — |  |  |  | (191,109 | ) |  |  | (191,109 | )
Equity in earnings (losses) from investments in Managed REITs |  |  | — |  |  |  | (167,977 | ) |  |  | — |  |  |  | (167,977 | )
Other, net |  |  | (751,986 | ) |  |  | 658,408 |  |  |  | (171,234 | ) |  |  | (264,812 | )
Interest expense |  |  | (8,809,456 | ) |  |  | — |  |  |  | (43,130 | ) |  |  | (8,852,586 | )
Income tax (expense) benefit |  |  | 741,807 |  |  |  | (20,664 | ) |  |  | 111,890 |  |  |  | 833,033 |
Net loss on extinguishment of debt |  |  | (2,393,475 | ) |  |  | — |  |  |  | — |  |  |  | (2,393,475 | )
Net income (loss) |  | $ | 7,468,423 |  |  | $ | 14,956,886 |  |  | $ | (8,412,187 | ) |  | $ | 14,013,122 |
|  | Six Months Ended June 30, 2023 |
|  |  |  |  | Managed REIT |  |  | Corporate |  |  |  |
|  | Self Storage |  |  | Platform |  |  | and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Self storage rental revenue |  | $ | 102,954,713 |  |  | $ | — |  |  | $ | — |  |  | $ | 102,954,713 |
Ancillary operating revenue |  |  | 4,370,773 |  |  |  | — |  |  |  | — |  |  |  | 4,370,773 |
Managed REIT Platform revenue |  |  | — |  |  |  | 6,597,240 |  |  |  | — |  |  |  | 6,597,240 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 2,802,909 |  |  |  | — |  |  |  | 2,802,909 |
Total revenues |  |  | 107,325,486 |  |  |  | 9,400,149 |  |  |  | — |  |  |  | 116,725,635 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses |  |  | 33,016,295 |  |  |  | — |  |  |  | — |  |  |  | 33,016,295 |
Managed REIT Platform expense |  |  | — |  |  |  | 1,231,067 |  |  |  | — |  |  |  | 1,231,067 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 2,802,909 |  |  |  | — |  |  |  | 2,802,909 |
General and administrative |  |  | — |  |  |  | — |  |  |  | 13,718,518 |  |  |  | 13,718,518 |
Depreciation |  |  | 26,229,212 |  |  |  | — |  |  |  | 418,981 |  |  |  | 26,648,193 |
Intangible amortization expense |  |  | 3,657,535 |  |  |  | 97,861 |  |  |  | — |  |  |  | 3,755,396 |
Acquisition expenses |  |  | 42,296 |  |  |  | — |  |  |  | — |  |  |  | 42,296 |
Total operating expenses |  |  | 62,945,338 |  |  |  | 4,131,837 |  |  |  | 14,137,499 |  |  |  | 81,214,674 |
Income (loss) from operations |  |  | 44,380,148 |  |  |  | 5,268,312 |  |  |  | (14,137,499 | ) |  |  | 35,510,961 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Equity in earnings (losses) from investments in JV Properties |  |  | — |  |  |  | — |  |  |  | (940,878 | ) |  |  | (940,878 | )
Equity in earnings (losses) from investments in Managed REITs |  |  | — |  |  |  | (449,750 | ) |  |  | — |  |  |  | (449,750 | )
Other, net |  |  | 221,109 |  |  |  | 1,839,014 |  |  |  | (116,630 | ) |  |  | 1,943,493 |
Interest expense |  |  | (29,524,357 | ) |  |  | — |  |  |  | (84,089 | ) |  |  | (29,608,446 | )
Income tax (expense) benefit |  |  | (290,443 | ) |  |  | (85,597 | ) |  |  | 232,614 |  |  |  | (143,426 | )
Net income (loss) |  | $ | 14,786,457 |  |  | $ | 6,571,979 |  |  | $ | (15,046,482 | ) |  | $ | 6,311,954 |
|  | Six Months Ended June 30, 2022 |
|  |  |  |  | Managed REIT |  |  | Corporate |  |  |  |
|  | Self Storage |  |  | Platform |  |  | and Other |  |  | Total |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Self storage rental revenue |  | $ | 89,528,232 |  |  | $ | — |  |  | $ | — |  |  | $ | 89,528,232 |
Ancillary operating revenue |  |  | 4,073,155 |  |  |  | — |  |  |  | — |  |  |  | 4,073,155 |
Managed REIT Platform revenue |  |  | — |  |  |  | 3,822,230 |  |  |  | — |  |  |  | 3,822,230 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 2,348,492 |  |  |  | — |  |  |  | 2,348,492 |
Total revenues |  |  | 93,601,387 |  |  |  | 6,170,722 |  |  |  | — |  |  |  | 99,772,109 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses |  |  | 26,742,556 |  |  |  | — |  |  |  | — |  |  |  | 26,742,556 |
Managed REIT Platform expense |  |  | — |  |  |  | 1,007,111 |  |  |  | — |  |  |  | 1,007,111 |
Reimbursable costs from Managed REITs |  |  | — |  |  |  | 2,348,492 |  |  |  | — |  |  |  | 2,348,492 |
General and administrative |  |  | — |  |  |  | — |  |  |  | 13,784,230 |  |  |  | 13,784,230 |
Depreciation |  |  | 22,533,041 |  |  |  | — |  |  |  | 401,051 |  |  |  | 22,934,092 |
Intangible amortization expense |  |  | 7,998,012 |  |  |  | 374,845 |  |  |  | — |  |  |  | 8,372,857 |
Acquisition expenses |  |  | 702,871 |  |  |  | — |  |  |  | — |  |  |  | 702,871 |
Contingent earnout adjustment |  |  | — |  |  |  | 1,313,821 |  |  |  | — |  |  |  | 1,313,821 |
Write-off of equity interest and preexisting relationships upon acquisition of control |  |  | — |  |  |  | 2,049,682 |  |  |  | — |  |  |  | 2,049,682 |
Total operating expenses |  |  | 57,976,480 |  |  |  | 7,093,951 |  |  |  | 14,185,281 |  |  |  | 79,255,712 |
Gain on sale of real estate |  |  | — |  |  |  | 16,101,237 |  |  |  | — |  |  |  | 16,101,237 |
Income (loss) from operations |  |  | 35,624,907 |  |  |  | 15,178,008 |  |  |  | (14,185,281 | ) |  |  | 36,617,634 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Equity in earnings (losses) from investments in JV Properties |  |  | — |  |  |  | — |  |  |  | (424,403 | ) |  |  | (424,403 | )
Equity in earnings (losses) from investments in Managed REITs |  |  | — |  |  |  | (307,384 | ) |  |  | — |  |  |  | (307,384 | )
Other, net |  |  | (752,989 | ) |  |  | 814,021 |  |  |  | (354,359 | ) |  |  | (293,327 | )
Interest expense |  |  | (16,342,343 | ) |  |  | — |  |  |  | (86,027 | ) |  |  | (16,428,370 | )
Income tax (expense) benefit |  |  | 564,533 |  |  |  | (77,427 | ) |  |  | 24,800 |  |  |  | 511,906 |
Net loss on extinguishment of debt |  |  | (2,393,475 | ) |  |  | — |  |  |  | — |  |  |  | (2,393,475 | )
Net income (loss) |  | $ | 16,700,633 |  |  | $ | 15,607,218 |  |  | $ | (15,025,270 | ) |  | $ | 17,282,581 |
The following table summarizes our total assets by segment:
Segments |  | June 30, 2023 |  |  | December 31, 2022 |
Self Storage(1) |  | $ | 1,795,627,912 |  |  | $ | 1,820,922,309 |
Managed REIT Platform(2) |  |  | 38,633,273 |  |  |  | 65,433,006 |
Corporate and Other |  |  | 59,851,221 |  |  |  | 60,862,072 |
Total assets(3) |  | $ | 1,894,112,406 |  |  | $ | 1,947,217,387 |
(1) Included in the assets of the Self Storage segment as of June 30, 2023 and December 31, 2022 was approximately $52.2 million and $52.2 million of goodwill, respectively. Additionally, as of June 30, 2023 and December 31, 2022, there were no accumulated impairment charges to goodwill within the Self Storage segment. (2) Included in the assets of the Managed REIT Platform segment as of June 30, 2023 and December 31, 2022 is approximately $1.4 million and $1.4 million of goodwill, respectively. Such goodwill is net of accumulated impairment charges in the Managed REIT Platform segment of approximately $24.7 million, 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 as of December 31, 2022 and June 30, 2023, respectively, were associated with our self storage platform. As of June 30, 2023 and December 31, 2022, approximately $173 million and $170 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the three and six months ended June 30, 2023, approximately $5.6 million and $10.9 million, respectively, of our revenues in the self storage segment related to our operations in Canada. For the three and six months ended June 30, 2022, approximately $5.4 million and $10.5 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. As of June 30, 2023 and December 31, 2022, approximately $34.5 million and $28.5 million, respectively, of our assets in the Corporate and Other segment in the table above relate to our JV Properties which operate in Canada. For the six months ended June 30, 2023 and 2022, approximately $0.9 million and $0.4 million of losses, respectively, relate to these JV Properties' operations in Canada.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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