Annual report pursuant to Section 13 and 15(d)

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
 12 Months Ended
Dec. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
2018 Joint Venture
As of December 31, 2021, the Company's unconsolidated real estate venture, formed in September 2018 with an affiliate of Heitman America Real Estate REIT LLC (the "2018 Joint Venture"), in which the Company has a 25% ownership interest, owned and operated a portfolio of 103 self storage properties containing approximately 7.8 million rentable square feet, configured in over 64,000 storage units and located across 17 states.
The 2018 Joint Venture acquired one self storage property for $9.7 million during the year ended December 31, 2020, which was combined and is being operated together with one of the 2018 Joint Venture's existing properties. The 2018 Joint Venture financed the acquisition with $4.7 million of debt financing and $5.0 million of capital contributions from the 2018 Joint Venture members, of which the Company contributed $1.3 million for its 25% proportionate share.
2016 Joint Venture
As of December 31, 2021, the Company's unconsolidated real estate venture, formed in September 2016 with a state pension fund advised by Heitman Capital Management LLC (the "2016 Joint Venture"), in which the Company has a 25% ownership interest, owned and operated a portfolio of 74 properties containing approximately 4.9 million rentable square feet, configured in approximately 40,000 storage units and located across 13 states.
The 2016 Joint Venture acquired two self storage properties for $12.1 million during the year ended December 31, 2020. The 2016 Joint Venture financed these acquisitions with capital contributions from the 2016 Joint Venture members, of which the Company contributed $3.1 million for its 25% proportionate share.
The Company's investments in the 2018 Joint Venture and 2016 Joint Venture are accounted for using the equity method of accounting and are included in investment in unconsolidated real estate ventures in the Company’s consolidated balance sheets. The Company’s earnings from its investments in the 2018 Joint Venture and 2016 Joint Venture are presented in equity in earnings (losses) of unconsolidated real estate ventures on the Company’s consolidated statements of operations.
The following table presents the combined condensed financial position of the Company's unconsolidated real estate ventures as of December 31, 2021 and December 31, 2020 (in thousands):
December 31,
2021 2020
ASSETS
Self storage properties, net $ 1,741,538  $ 1,799,522 
Other assets 23,562  24,397 
Total assets $ 1,765,100  $ 1,823,919 
LIABILITIES AND EQUITY
Debt financing $ 1,001,378  $ 1,000,464 
Other liabilities 19,493  21,612 
Equity 744,229  801,843 
Total liabilities and equity $ 1,765,100  $ 1,823,919 
The following table presents the combined condensed operating information of the Company's unconsolidated real estate ventures for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
2021 2020 2019
Total revenue $ 187,861  $ 164,762  $ 162,827 
Property operating expenses 50,829  49,632  49,845 
Net operating income 137,032  115,130  112,982 
Supervisory, administrative and other expenses
 (12,288) (10,935) (10,818)
Depreciation and amortization (61,628) (61,188) (79,556)
Interest expense (41,658) (41,204) (39,936)
Loss on sale of self storage properties —  —  (806)
Acquisition and other expenses (511) (969) (1,971)
Net income (loss) $ 20,947  $ 834  $ (20,105)