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Real Estate Facilities
 12 Months Ended
Dec. 31, 2024
Real Estate [Abstract]  
Real Estate Facilities
Note 3. Real Estate Facilities
The following summarizes the activity in real estate facilities during the years ended December 31, 2024 and 2023 (in thousands):
 
Real estate facilities
   
Balance at December 31, 2022
    $ 1,887,206  
Acquisitions
      23,697  
Impact of foreign exchange rate changes and other
      4,342  
Improvements and additions
      9,501  
  
 
 
  
Balance at December 31, 2023
      1,924,746  
Acquisitions
      180,559  
Casualty loss
(1)
      (6,541 ) 
Impact of foreign exchange rate changes and other
      (16,374 ) 
Improvements and additions
      8,806  
  
 
 
  
Balance at December 31, 2024
   
$
2,091,196
 
  
 
 
  
Accumulated depreciation
   
Balance at December 31, 2022
    $ (202,683 ) 
Depreciation expense
      (52,620 ) 
Impact of foreign exchange rate changes
      (541 ) 
  
 
 
  
Balance at December 31, 2023
      (255,844 ) 
Casualty loss
(1)
      1,913  
Depreciation expense
      (53,975 ) 
Impact of foreign exchange rate changes and other
      2,774  
  
 
 
  
Balance at December 31, 2024
   
$
(305,132
) 
  
 
 
  
 
(1)
 
Hurricane Helene caused record flooding in late September 2024 in Asheville, North Carolina. One of our 14 wholly-owned properties in this market was severely flooded. As a result of the flooding and related damage, we recorded a net casualty loss related to the flooded property of approximately $4.6 million during the year ended December 31, 2024, to
write-off
the carrying value. We expect to rebuild and therefore we believe it is probable that we will receive insurance proceeds to offset the casualty loss and we recorded a receivable related to our pending insurance claim amounts as of December 31, 2024. There is no assurance as to when this property will be rebuilt or the performance of this property upon completion or stabilization. The casualty loss was completely offset in our consolidated statements of operations by such expected recovery. Any amount of insurance recovery related to the property damage in excess of the casualty loss incurred is considered a gain contingency, and would be recognized upon final settlement of the claims.
 
 
Self Storage Facility Acquisitions
The following table summarizes the purchase price allocation for the real estate related assets acquired during the year ended
De
cember 31, 2024 (in thousands):
 
Acquisition
  
Acquisition
Date
    
Occupancy Upon
Acquisition
 (1)
    
Real Estate
Assets
    
Intangibles
    
Total 
(2)
    
2024
Revenue
 (3)
    
2024
Net
Operating
Income
 (3)(4)
  
Colorado Springs II
     4/10/2024       86 %    $ 9,841     $ 675     $ 10,516     $ 693     $ 428  
Spartanburg
     7/16/2024       94 %      12,831       401       13,232       519       289  
Miami
     9/24/2024       96 %      30,408       753       31,161       410       228  
Nantucket
     11/20/2024       91 %      9,239       348       9,587       73       56  
Aurora V
     12/11/2024       85 %      14,067       600       14,667       77       35  
San Jose
     12/19/2024       98 %      19,077       539       19,616       53       29  
Washington, DC
     12/19/2024       88 %      17,598       694       18,292       48       26  
Ladera Ranch
 (5)
     12/20/2024       94 %      67,498       2,532       70,030       158       116  
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
     
$
180,559
 
  
$
6,542
 
  
$
187,101
 
  
$
2,031
 
  
$
1,207
 
     
 
 
    
 
 
    
 
 
    
 
 
    
 
 
  
 
(1)
Represent the approximate occupancy percentage of the property at the time of acquisition.
(2)
The allocation noted above is based on a determination of the relative fair value of the total consideration provided and represents the amount paid including capitalized acquisition costs.
(3)
The operating results of the self storage properties acquired have been included in our consolidated statements of operations since their acquisition dates.
(4)
Net operating income excludes corporate general and administrative expenses, interest expense, depreciation, amortization and acquisition related expenses.
(5)
 
See Note 5 – Debt, for additional information pertaining to a loan issued in connection with the acquisition of this self storage property.
SST IV Merger
On March 17, 2021, we closed on our merger with SST IV (the “SST IV Merger”). On such date, (the “SST IV Merger Date”), we acquired all of the real estate owned by SST IV, consisting primarily of (i) 24 self storage facilities, and (ii) SST IV’s 50% equity interest in six unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. As a result of the SST IV Merger, we issued approximately 5.8 million Class A Shares to the former SST IV stockholders.
SSGT II Merger
On June 1, 2022, we closed on the SSGT II Merger. On such date, (the “SSGT II Merger Date”), we acquired all of the real estate owned by SSGT II, consisting primarily of (i) 10 wholly-owned self storage facilities, and (ii) SSGT II’s 50% equity interest in three unconsolidated real estate ventures located in the Greater Toronto Area of Ontario, Canada. We issued approximately 2.9 million Class A Shares to the former SSGT II stockholders in connection with the SSGT II Merger.
Potential Acquisitions
As of March 12, 2025, we, through our wholly-owned subsidiaries were party to a purchase and sale agreement with unaffiliated third parties for the acquisition of three self storage facilities and one parcel of
land
 
 
located
in Canada, which had not closed as of December 31, 2024. The total purchase price for these properties was approximately $61.1 million, plus closing costs. There can be no assurance that we will complete these acquisitions. If we fail to acquire these properties, in addition to the incurred acquisition costs, we may also forfeit earnest money of approximately $2.3 million as a result.
We may assign some or all of the above purchase and sale agreements to one or more of our Managed REITs.