XML 31 R18.htm IDEA: XBRL DOCUMENT v3.24.1
Segment Disclosures
 12 Months Ended
Dec. 31, 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 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, 2023

 

 

 

 

 

 

Managed REIT

 

 

Corporate

 

 

 

 

 

 

Self Storage

 

 

Platform

 

 

and Other

 

 

Total

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Self storage rental revenue

 

$

206,494,202

 

 

$

—

 

 

$

—

 

 

$

206,494,202

 

Ancillary operating revenue

 

 

8,826,868

 

 

 

—

 

 

 

—

 

 

 

8,826,868

 

Managed REIT Platform revenue

 

 

—

 

 

 

11,906,311

 

 

 

—

 

 

 

11,906,311

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

5,764,363

 

 

 

—

 

 

 

5,764,363

 

Total revenues

 

 

215,321,070

 

 

 

17,670,674

 

 

 

—

 

 

 

232,991,744

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

 

65,362,857

 

 

 

—

 

 

 

—

 

 

 

65,362,857

 

Managed REIT Platform expense

 

 

—

 

 

 

3,365,491

 

 

 

—

 

 

 

3,365,491

 

Reimbursable costs from Managed REITs

 

 

—

 

 

 

5,764,363

 

 

 

—

 

 

 

5,764,363

 

General and administrative

 

 

—

 

 

 

—

 

 

 

27,451,533

 

 

 

27,451,533

 

Depreciation

 

 

52,754,196

 

 

 

—

 

 

 

882,157

 

 

 

53,636,353

 

Intangible amortization expense

 

 

6,398,131

 

 

 

195,722

 

 

 

—

 

 

 

6,593,853

 

Acquisition expenses

 

 

192,358

 

 

 

—

 

 

 

—

 

 

 

192,358

 

Total operating expenses

 

 

124,707,542

 

 

 

9,325,576

 

 

 

28,333,690

 

 

 

162,366,808

 

Income (loss) from operations

 

 

90,613,528

 

 

 

8,345,098

 

 

 

(28,333,690

)

 

 

70,624,936

 

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

      Equity in earnings (losses) from
         investments in JV Properties

 

 

—

 

 

 

—

 

 

 

(1,625,135

)

 

 

(1,625,135

)

      Equity in earnings (losses) from
         investments in Managed REITs

 

 

—

 

 

 

(1,273,143

)

 

 

—

 

 

 

(1,273,143

)

Other, net

 

 

217,807

 

 

 

3,359,875

 

 

 

(448,815

)

 

 

3,128,867

 

Interest expense

 

 

(61,636,064

)

 

 

—

 

 

 

(168,557

)

 

 

(61,804,621

)

Income tax (expense) benefit

 

 

2,400,878

 

 

 

(196,599

)

 

 

391,577

 

 

 

2,595,856

 

Net income (loss)

 

$

31,596,149

 

 

$

10,235,231

 

 

$

(30,184,620

)

 

$

11,646,760

 

 

 

 

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):

 

 

 

 

 

 

 

 

 

 

 

 

      Equity in earnings (losses) from
         investments in JV Properties

 

 

—

 

 

 

—

 

 

 

(760,005

)

 

 

(760,005

)

      Equity in earnings (losses) from
         investments in Managed REITs

 

 

—

 

 

 

(930,201

)

 

 

—

 

 

 

(930,201

)

Other, net

 

 

(209,578

)

 

 

1,085,533

 

 

 

(34,554

)

 

 

841,401

 

Interest expense

 

 

(41,339,401

)

 

 

—

 

 

 

(172,510

)

 

 

(41,511,911

)

Net loss on extinguishment of debt

 

 

(2,393,475

)

 

 

—

 

 

 

—

 

 

 

(2,393,475

)

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):

 

 

 

 

 

 

 

 

 

 

 

 

      Equity in earnings (losses) from
         investments in JV Properties

 

 

—

 

 

 

—

 

 

 

(494,327

)

 

 

(494,327

)

      Equity in earnings (losses) from
         investments in Managed REITs

 

 

—

 

 

 

(623,393

)

 

 

—

 

 

 

(623,393

)

Other, net

 

 

(173,245

)

 

 

20,990

 

 

 

(785,376

)

 

 

(937,631

)

Interest expense

 

 

(33,207,310

)

 

 

—

 

 

 

(176,294

)

 

 

(33,383,604

)

Net loss on extinguishment of debt

 

 

(2,444,788

)

 

 

—

 

 

 

—

 

 

 

(2,444,788

)

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

)

 

 

 

The following table summarizes our total assets by segment:

 

Segments

 

December 31, 2023

 

 

December 31, 2022

 

Self Storage(1)

 

$

1,798,510,325

 

 

$

1,820,922,309

 

Managed REIT Platform(2)

 

 

41,761,259

 

 

 

65,433,006

 

Corporate and Other

 

 

55,369,141

 

 

 

60,862,072

 

Total assets(3)

 

$

1,895,640,725

 

 

$

1,947,217,387

 

 

(1) Included in the assets of the Self Storage segment as of December 31, 2023 and 2022 were approximately $52.2 million of goodwill. Additionally, as of December 31, 2023 and 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 December 31, 2023 and 2022, was approximately $1.4 million of goodwill. 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 year ended December 31, 2020.

 

(3) Other than our investments in and advances to Managed REITs and investments in JV properties, substantially all of our investments in real estate facilities and intangible assets as of December 31, 2023 and 2022, respectively, were associated with our self storage platform.

 

As of December 31, 2023 and 2022, approximately $174 million and $170 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the years ended December 31, 2023, 2022, and 2021, approximately $22.1 million, $21.5 million, and $19.2 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 December 31, 2023 and 2022, approximately $35.8 million and $28.5 million, respectively, of our assets in the Corporate and Other segment table above relate to our JV Properties which operate in Canada. For the years ended December 31, 2023 and 2022, approximately $1.6 million and $0.8 million of losses, respectively, relate to these JV Properties' operations in Canada.