v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company’s segment disclosures present the measure used by the chief operating decision maker (“CODM”) for purposes of assessing each segment’s performance. The Company’s CODM is its Executive Committee (“EC”), which uses net operating income (“NOI”) to assess the performance of the business for the Company’s reportable operating segments. The EC is comprised of the Chief Executive Officer, President, Chief Financial Officer, Chief Investment Officer, Chief Digital Officer, Chief Operations Officer, and Chief Legal Officer. The Company’s segments are comprised of two reportable segments: (1) self-storage operations and (2) tenant reinsurance. NOI for the Company’s self-storage operations represents total property revenue less direct property operating expenses. NOI for the Company’s tenant reinsurance segment represents tenant reinsurance revenue less tenant reinsurance expenses.
The Company’s consolidated revenues equal total segment revenues plus management fees and other income. The self-storage operations activities include rental operations of stores that are wholly-owned and in consolidated joint ventures. Tenant reinsurance activities include the reinsurance of risks relating to the loss of goods stored by tenants in the stores operated by the Company. Management fees and other income is excluded from segment revenues and net operating income.
The CODM regularly reviews NOI to assess the performance of each segment and makes decisions about resources to be allocated to each segment. As part of this process, the CODM approves each operating segment’s budget, determines allocation of funds for capital expenditures, and reviews discrete financial information on a quarterly basis. Based on each segment’s budgeted operating revenues and expenses, resources are allocated to each segment, and these budgeted amounts comprising NOI are compared against actual segment performance.
For all periods presented, substantially all of the Company’s real estate assets, intangible assets, other assets, and accrued and other liabilities are associated with the self-storage operations segment. Financial information for the Company’s business segments is set forth below:
For the Three Months Ended March 31,
20262025
Revenues
Self-Storage Operations$733,213 $704,380 
Tenant Reinsurance89,119 84,712 
Total segment revenues$822,332 $789,092 
Operating expenses
Self-Storage Operations:
Payroll and benefits$45,542 $43,746 
Marketing15,758 15,150 
Office expense (1)
19,594 18,854 
Property operating expense (1)
41,107 37,365 
Repairs and maintenance17,968 16,257 
Property taxes83,975 79,884 
Insurance9,714 8,432 
Other segment items (2)
4,645 3,894 
Total self-storage operations expenses238,303 223,582 
 
Tenant Reinsurance:
Tenant reinsurance expense and other segment items (3)
$17,867 $17,116 
 
Total segment operating expenses$256,170 $240,698 
 
Net operating income
Self-Storage Operations$494,910 $480,798 
Tenant Reinsurance71,252 67,596 
Total segment net operating income:$566,162 $548,394 
Other components of net income:
Management fees and other income33,695 30,905 
General and administrative expense(46,509)(45,974)
Depreciation and amortization expense(185,795)(180,356)
Gain on real estate assets held for sale and sold, net— 35,761 
Interest expense (147,299)(142,399)
Non-cash interest expense related to amortization of discount on unsecured senior notes, net(12,555)(11,313)
Interest income 39,543 38,967 
Equity in earnings and dividend income from unconsolidated real estate entities15,760 19,931 
Equity in earnings of unconsolidated real estate ventures - gain on sale of a joint venture interest207 — 
Income tax expense(10,789)(8,991)
Net income $252,420 $284,925 
(1) Amounts related to lease expense have been reclassified from Office expense to Property operating expense for the three months ended March 31, 2025 for comparability.
(2) Other segment items for the Self-Storage Operations segment include miscellaneous items such as legal and professional fees, capital expenditures, taxes, and casualty losses.
(3) Tenant reinsurance expense and other segment items for the Tenant Reinsurance segment include claims expense, acquisition costs, claims service fees, and miscellaneous administrative items.