| Segment Disclosures |
Note 9. Segment Disclosures We operate in two reportable business segments: (i) self storage operations and (ii) our Managed REIT Platform business. Our self storage operations consist of our wholly-owned self storage facilities, primarily consisting of month-to month rental revenue and related ancillary revenue that these self storage facilities produce. Our Managed REIT Platform business consists of the various management services we perform for the Managed REITs, including the services performed related to our property management, asset management, and construction and development management contracts. The reportable segments offer different products and services to different customers and are therefore managed separately. The chief operating decision maker (“CODM”) is our Chief Executive Officer. Our CODM and other management regularly evaluate performance based upon segment operating income (“SOI”). For our self storage operations, SOI is defined as leasing and related revenues, less property level operating expenses. SOI for the Company’s Managed REIT Platform business represents Managed REIT Platform revenues less Managed REIT Platform expenses. Our CODM uses SOI when making decisions about allocating capital and personnel to the various segments. Property operating expenses represents a significant segment expense for purposes of evaluating performance of our self storage operations. Managed REIT Platform expense represents a significant segment expense for purposes of evaluating performance of the Company's Managed REIT Platform. Such income statement amounts are reflected below in the calculation of SOI. On a quarterly basis, our CODM considers budget-to-actual and period-to-period variances when evaluating company and segment performance in addition to other interim reviews. The following tables summarize information for the reportable segments for the periods presented (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2025 |
|
|
|
|
|
|
Managed REIT |
|
|
Corporate |
|
|
|
|
|
|
Self Storage |
|
|
Platform |
|
|
and Other |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Self storage rental revenue |
|
$ |
61,768 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
61,768 |
|
Ancillary operating revenue |
|
|
2,825 |
|
|
|
— |
|
|
|
— |
|
|
|
2,825 |
|
Managed REIT Platform revenue |
|
|
— |
|
|
|
3,841 |
|
|
|
— |
|
|
|
3,841 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
1,995 |
|
|
|
— |
|
|
|
1,995 |
|
Total revenues |
|
|
64,593 |
|
|
|
5,836 |
|
|
|
— |
|
|
|
70,429 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes |
|
|
6,859 |
|
|
|
— |
|
|
|
— |
|
|
|
6,859 |
|
Payroll (1) |
|
|
6,691 |
|
|
|
— |
|
|
|
— |
|
|
|
6,691 |
|
Advertising |
|
|
1,604 |
|
|
|
— |
|
|
|
— |
|
|
|
1,604 |
|
Repairs & maintenance |
|
|
2,005 |
|
|
|
— |
|
|
|
— |
|
|
|
2,005 |
|
Utilities |
|
|
1,691 |
|
|
|
— |
|
|
|
— |
|
|
|
1,691 |
|
Property insurance |
|
|
1,556 |
|
|
|
— |
|
|
|
— |
|
|
|
1,556 |
|
Administrative and professional |
|
|
3,085 |
|
|
|
— |
|
|
|
— |
|
|
|
3,085 |
|
Total property operating expenses |
|
|
23,491 |
|
|
|
— |
|
|
|
— |
|
|
|
23,491 |
|
Managed REIT Platform expense (1) |
|
|
— |
|
|
|
2,074 |
|
|
|
— |
|
|
|
2,074 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
1,995 |
|
|
|
— |
|
|
|
1,995 |
|
Segment operating income |
|
|
41,102 |
|
|
|
1,767 |
|
|
|
— |
|
|
|
42,869 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative (1) |
|
|
— |
|
|
|
— |
|
|
|
10,435 |
|
|
|
10,435 |
|
Depreciation |
|
|
16,064 |
|
|
|
— |
|
|
|
210 |
|
|
|
16,274 |
|
Intangible amortization expense |
|
|
2,904 |
|
|
|
— |
|
|
|
— |
|
|
|
2,904 |
|
Acquisition expenses |
|
|
408 |
|
|
|
— |
|
|
|
72 |
|
|
|
480 |
|
Total other operating expenses |
|
|
19,376 |
|
|
|
— |
|
|
|
10,717 |
|
|
|
30,093 |
|
Income (loss) from operations |
|
|
21,726 |
|
|
|
1,767 |
|
|
|
(10,717 |
) |
|
|
12,776 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) from
investments in JV Properties |
|
|
— |
|
|
|
— |
|
|
|
(47 |
) |
|
|
(47 |
) |
Equity in earnings (losses) from
investments in Managed REITs |
|
|
— |
|
|
|
(248 |
) |
|
|
— |
|
|
|
(248 |
) |
Other, net |
|
|
4,649 |
|
|
|
— |
|
|
|
18 |
|
|
|
4,667 |
|
Interest income |
|
|
139 |
|
|
|
1,397 |
|
|
|
— |
|
|
|
1,536 |
|
Interest expense |
|
|
(12,480 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
(12,521 |
) |
Income tax (expense) benefit |
|
|
(497 |
) |
|
|
(118 |
) |
|
|
— |
|
|
|
(615 |
) |
Net income (loss) |
|
$ |
13,537 |
|
|
$ |
2,798 |
|
|
$ |
(10,787 |
) |
|
$ |
5,548 |
|
(1) Included within Payroll, Managed REIT Platform expense, and General and administrative expense was approximately $1.9 million, $1.1 million, and $1.5 million of stock and related compensation expense related to our IPO Grant for the three months ended September 30, 2025, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2024 |
|
|
|
|
|
|
Managed REIT |
|
|
Corporate |
|
|
|
|
|
|
Self Storage |
|
|
Platform |
|
|
and Other |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Self storage rental revenue |
|
$ |
52,921 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
52,921 |
|
Ancillary operating revenue |
|
|
2,457 |
|
|
|
— |
|
|
|
— |
|
|
|
2,457 |
|
Managed REIT Platform revenue |
|
|
— |
|
|
|
2,923 |
|
|
|
— |
|
|
|
2,923 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
1,856 |
|
|
|
— |
|
|
|
1,856 |
|
Total revenues |
|
|
55,378 |
|
|
|
4,779 |
|
|
|
— |
|
|
|
60,157 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes |
|
|
5,305 |
|
|
|
— |
|
|
|
— |
|
|
|
5,305 |
|
Payroll |
|
|
4,223 |
|
|
|
— |
|
|
|
— |
|
|
|
4,223 |
|
Advertising |
|
|
1,393 |
|
|
|
— |
|
|
|
— |
|
|
|
1,393 |
|
Repairs & Maintenance |
|
|
1,387 |
|
|
|
— |
|
|
|
— |
|
|
|
1,387 |
|
Utilities |
|
|
1,440 |
|
|
|
— |
|
|
|
— |
|
|
|
1,440 |
|
Property Insurance |
|
|
1,473 |
|
|
|
— |
|
|
|
— |
|
|
|
1,473 |
|
Administrative and professional |
|
|
3,028 |
|
|
|
— |
|
|
|
— |
|
|
|
3,028 |
|
Total property operating expenses |
|
|
18,249 |
|
|
|
— |
|
|
|
— |
|
|
|
18,249 |
|
Managed REIT Platform expense |
|
|
— |
|
|
|
1,053 |
|
|
|
— |
|
|
|
1,053 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
1,856 |
|
|
|
— |
|
|
|
1,856 |
|
Segment operating income |
|
|
37,129 |
|
|
|
1,870 |
|
|
|
— |
|
|
|
38,999 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
7,210 |
|
|
|
7,210 |
|
Depreciation |
|
|
13,592 |
|
|
|
— |
|
|
|
244 |
|
|
|
13,836 |
|
Intangible amortization expense |
|
|
202 |
|
|
|
13 |
|
|
|
— |
|
|
|
215 |
|
Acquisition expenses |
|
|
38 |
|
|
|
— |
|
|
|
— |
|
|
|
38 |
|
Total other operating expenses |
|
|
13,832 |
|
|
|
13 |
|
|
|
7,454 |
|
|
|
21,299 |
|
Income (loss) from operations |
|
|
23,297 |
|
|
|
1,857 |
|
|
|
(7,454 |
) |
|
|
17,700 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) from
investments in JV Properties |
|
|
— |
|
|
|
— |
|
|
|
(380 |
) |
|
|
(380 |
) |
Equity in earnings (losses) from
investments in Managed REITs |
|
|
— |
|
|
|
(248 |
) |
|
|
— |
|
|
|
(248 |
) |
Other, net |
|
|
(1,976 |
) |
|
|
— |
|
|
|
(5 |
) |
|
|
(1,981 |
) |
Interest income |
|
|
263 |
|
|
|
760 |
|
|
|
— |
|
|
|
1,023 |
|
Interest expense |
|
|
(19,061 |
) |
|
|
— |
|
|
|
(41 |
) |
|
|
(19,102 |
) |
Income tax (expense) benefit |
|
|
(333 |
) |
|
|
(75 |
) |
|
|
4 |
|
|
|
(404 |
) |
Net income (loss) |
|
$ |
2,190 |
|
|
$ |
2,294 |
|
|
$ |
(7,876 |
) |
|
$ |
(3,392 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2025 |
|
|
|
|
|
|
Managed REIT |
|
|
Corporate |
|
|
|
|
|
|
Self Storage |
|
|
Platform |
|
|
and Other |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Self storage rental revenue |
|
$ |
176,509 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
176,509 |
|
Ancillary operating revenue |
|
|
8,161 |
|
|
|
— |
|
|
|
— |
|
|
|
8,161 |
|
Managed REIT Platform revenue |
|
|
— |
|
|
|
11,990 |
|
|
|
— |
|
|
|
11,990 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
6,035 |
|
|
|
— |
|
|
|
6,035 |
|
Total revenues |
|
|
184,670 |
|
|
|
18,025 |
|
|
|
— |
|
|
|
202,695 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes |
|
|
19,966 |
|
|
|
— |
|
|
|
— |
|
|
|
19,966 |
|
Payroll (1) |
|
|
17,892 |
|
|
|
— |
|
|
|
— |
|
|
|
17,892 |
|
Advertising |
|
|
4,650 |
|
|
|
— |
|
|
|
— |
|
|
|
4,650 |
|
Repairs & maintenance |
|
|
5,050 |
|
|
|
— |
|
|
|
— |
|
|
|
5,050 |
|
Utilities |
|
|
4,458 |
|
|
|
— |
|
|
|
— |
|
|
|
4,458 |
|
Property insurance |
|
|
4,738 |
|
|
|
— |
|
|
|
— |
|
|
|
4,738 |
|
Administrative and professional |
|
|
8,874 |
|
|
|
— |
|
|
|
— |
|
|
|
8,874 |
|
Total property operating expenses |
|
|
65,628 |
|
|
|
— |
|
|
|
— |
|
|
|
65,628 |
|
Managed REIT Platform expense (1) |
|
|
— |
|
|
|
6,559 |
|
|
|
— |
|
|
|
6,559 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
6,035 |
|
|
|
— |
|
|
|
6,035 |
|
Segment operating income |
|
|
119,042 |
|
|
|
5,431 |
|
|
|
— |
|
|
|
124,473 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative (1) |
|
|
— |
|
|
|
— |
|
|
|
29,980 |
|
|
|
29,980 |
|
Depreciation |
|
|
45,974 |
|
|
|
— |
|
|
|
767 |
|
|
|
46,741 |
|
Intangible amortization expense |
|
|
6,431 |
|
|
|
— |
|
|
|
— |
|
|
|
6,431 |
|
Acquisition expenses |
|
|
853 |
|
|
|
— |
|
|
|
189 |
|
|
|
1,042 |
|
Total other operating expenses |
|
|
53,258 |
|
|
|
— |
|
|
|
30,936 |
|
|
|
84,194 |
|
Income (loss) from operations |
|
|
65,784 |
|
|
|
5,431 |
|
|
|
(30,936 |
) |
|
|
40,279 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) from
investments in JV Properties |
|
|
— |
|
|
|
— |
|
|
|
(408 |
) |
|
|
(408 |
) |
Equity in earnings (losses) from
investments in Managed REITs |
|
|
— |
|
|
|
(620 |
) |
|
|
— |
|
|
|
(620 |
) |
Other, net |
|
|
3,369 |
|
|
|
— |
|
|
|
334 |
|
|
|
3,703 |
|
Interest income |
|
|
390 |
|
|
|
2,594 |
|
|
|
— |
|
|
|
2,984 |
|
Interest expense |
|
|
(46,453 |
) |
|
|
— |
|
|
|
(120 |
) |
|
|
(46,573 |
) |
Loss on debt extinguishment |
|
|
(2,533 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2,533 |
) |
Income tax (expense) benefit |
|
|
(1,200 |
) |
|
|
(258 |
) |
|
|
(80 |
) |
|
|
(1,538 |
) |
Net income (loss) |
|
$ |
19,357 |
|
|
$ |
7,147 |
|
|
$ |
(31,210 |
) |
|
$ |
(4,706 |
) |
(1) Included within Payroll, Managed REIT Platform expense, and General and administrative expense was approximately $3.6 million, $2.0 million, and $3.1 million of stock and related compensation expense related to our IPO Grant for the nine months ended September 30, 2025, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2024 |
|
|
|
|
|
|
Managed REIT |
|
|
Corporate |
|
|
|
|
|
|
Self Storage |
|
|
Platform |
|
|
and Other |
|
|
Total |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Self storage rental revenue |
|
$ |
156,050 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
156,050 |
|
Ancillary operating revenue |
|
|
6,973 |
|
|
|
— |
|
|
|
— |
|
|
|
6,973 |
|
Managed REIT Platform revenue |
|
|
— |
|
|
|
8,328 |
|
|
|
— |
|
|
|
8,328 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
5,011 |
|
|
|
— |
|
|
|
5,011 |
|
Total revenues |
|
|
163,023 |
|
|
|
13,339 |
|
|
|
— |
|
|
|
176,362 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Property operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
Property taxes |
|
|
15,817 |
|
|
|
— |
|
|
|
— |
|
|
|
15,817 |
|
Payroll |
|
|
12,629 |
|
|
|
— |
|
|
|
— |
|
|
|
12,629 |
|
Advertising |
|
|
4,295 |
|
|
|
— |
|
|
|
— |
|
|
|
4,295 |
|
Repairs & maintenance |
|
|
4,197 |
|
|
|
— |
|
|
|
— |
|
|
|
4,197 |
|
Utilities |
|
|
3,846 |
|
|
|
— |
|
|
|
— |
|
|
|
3,846 |
|
Property insurance |
|
|
4,070 |
|
|
|
— |
|
|
|
— |
|
|
|
4,070 |
|
Administrative and professional |
|
|
8,480 |
|
|
|
— |
|
|
|
— |
|
|
|
8,480 |
|
Total property operating expenses |
|
|
53,334 |
|
|
|
— |
|
|
|
— |
|
|
|
53,334 |
|
Managed REIT Platform expense |
|
|
— |
|
|
|
2,552 |
|
|
|
— |
|
|
|
2,552 |
|
Reimbursable costs from Managed REITs |
|
|
— |
|
|
|
5,011 |
|
|
|
— |
|
|
|
5,011 |
|
Segment operating income |
|
|
109,689 |
|
|
|
5,776 |
|
|
|
— |
|
|
|
115,465 |
|
Other operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
|
— |
|
|
|
— |
|
|
|
22,449 |
|
|
|
22,449 |
|
Depreciation |
|
|
40,348 |
|
|
|
— |
|
|
|
709 |
|
|
|
41,057 |
|
Intangible amortization expense |
|
|
350 |
|
|
|
111 |
|
|
|
— |
|
|
|
461 |
|
Acquisition expenses |
|
|
121 |
|
|
|
— |
|
|
|
— |
|
|
|
121 |
|
Total other operating expenses |
|
|
40,819 |
|
|
|
111 |
|
|
|
23,158 |
|
|
|
64,088 |
|
Income (loss) from operations |
|
|
68,870 |
|
|
|
5,665 |
|
|
|
(23,158 |
) |
|
|
51,377 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Equity in earnings (losses) from
investments in JV Properties |
|
|
— |
|
|
|
— |
|
|
|
(1,068 |
) |
|
|
(1,068 |
) |
Equity in earnings (losses) from
investments in Managed REITs |
|
|
— |
|
|
|
(957 |
) |
|
|
— |
|
|
|
(957 |
) |
Other, net |
|
|
(2,891 |
) |
|
|
— |
|
|
|
(58 |
) |
|
|
(2,949 |
) |
Interest income |
|
|
758 |
|
|
|
1,617 |
|
|
|
— |
|
|
|
2,375 |
|
Interest expense |
|
|
(52,826 |
) |
|
|
— |
|
|
|
(123 |
) |
|
|
(52,949 |
) |
Loss on debt extinguishment |
|
|
(471 |
) |
|
|
— |
|
|
|
— |
|
|
|
(471 |
) |
Income tax (expense) benefit |
|
|
(862 |
) |
|
|
(210 |
) |
|
|
(21 |
) |
|
|
(1,093 |
) |
Net income (loss) |
|
$ |
12,578 |
|
|
$ |
6,115 |
|
|
$ |
(24,428 |
) |
|
$ |
(5,735 |
) |
The following table summarizes our total assets by segment (in thousands):
|
|
|
|
|
|
|
|
|
Segments |
|
September 30, 2025 |
|
|
December 31, 2024 |
|
Self Storage(1) |
|
$ |
2,206,364 |
|
|
$ |
1,915,303 |
|
Managed REIT Platform(2) |
|
|
118,034 |
|
|
|
63,700 |
|
Corporate and Other |
|
|
66,881 |
|
|
|
63,064 |
|
Total assets(3) |
|
$ |
2,391,279 |
|
|
$ |
2,042,067 |
|
(1) Included in the assets of the Self Storage segment as of September 30, 2025 and December 31, 2024 was approximately $52.2 million of goodwill. Additionally, as of September 30, 2025 and December 31, 2024, 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 September 30, 2025 and December 31, 2024 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 quarter ended March 31, 2020. (3) Other than our investments in and advances to Managed REITs and our investments in JV Properties, substantially all of our investments in real estate facilities and intangible assets as well as our capital expenditures for the nine months and year ended September 30, 2025 and December 31, 2024, respectively, were associated with our self storage platform. Please see Note 3 – Real Estate of the Notes to the Consolidated Financial Statements for additional detail. As of September 30, 2025 and December 31, 2024, approximately $254 million, and $155 million, respectively, of our assets in the self storage segment related to our operations in Canada. For the three and nine months ended September 30, 2025, approximately $6.8 million, and $18.3 million, respectively, of our revenues in the self storage segment related to our operations in Canada. For the three and nine months ended September 30, 2024, approximately $5.8 million, and $16.9 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 September 30, 2025 and December 31, 2024, approximately $34.9 million and $32.8 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 nine months ended September 30, 2025 and 2024, approximately $0.4 million and $1.1 million of losses, respectively, relate to these JV Properties' operations in Canada.
|