Annual report pursuant to Section 13 and 15(d)

SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS

v3.24.0.1
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS
Acquisitions
The Company acquired 20 self storage properties and annexes to existing properties with an estimated fair value of $229.5 million during the year ended December 31, 2023 and 45 self storage properties with an estimated fair value of $569.2 million during the year ended December 31, 2022. Of these acquisitions, during the year ended December 31, 2023, 19 self storage properties with an estimated fair value of $199.3 million were acquired by the Company from its PROs. During the year ended December 31, 2022, five self storage properties with an estimated fair value of $55.7 million were acquired by the Company from its PROs.
The self storage property acquisitions were accounted for as asset acquisitions and accordingly, during the years ended December 31, 2023 and 2022, $1.6 million and $3.7 million, respectively, of transaction costs related to the acquisitions were capitalized as part of the basis of the acquired properties. The Company recognized the estimated fair value of the acquired assets and assumed liabilities on the respective dates of such acquisitions. The Company allocated a portion of the purchase price to identifiable intangible assets consisting of customer in-place leases which were recorded at estimated fair values of $4.8 million and $9.5 million during the years ended December 31, 2023 and 2022, respectively, resulting in a total fair value of $224.7 million and $559.7 million allocated to real estate during the years ended December 31, 2023 and 2022, respectively.
The following table summarizes, by calendar quarter, the investments in self storage property acquisitions completed by the Company during the years ended December 31, 2023 and 2022 (dollars in thousands):
Acquisitions closed during the Three Months Ended: Summary of Investment
Number of Properties Cash and Acquisition Costs
Value of Equity(1)
Other Liabilities/ (Other Assets) Total
March 31, 2023 16  $ 9,920  $ 150,531  $ 85  $ 160,536 
June 30, 2023(2)
—  8,167  5,577  34  13,778 
September 30, 2023 2  13,666  16,370  78  30,114 
December 31, 2023 2  16,972  8,062  (12) 25,022 
Total
 20  $ 48,725  $ 180,540  $ 185  $ 229,450 
March 31, 2022 12  $ 76,027  $ 16,576  $ 332  $ 92,935 
June 30, 2022 8  99,954  13,938  641  114,533 
September 30, 2022 23  313,784  6,244  1,761  321,789 
December 31, 2022 2  7,622  32,141  156  39,919 
Total
 45  $ 497,387  $ 68,899  $ 2,890  $ 569,176 
(1)Value of OP equity represents the fair value of Series A-1 preferred units, Series B Preferred Shares, OP units, subordinated performance units, and LTIP units.
(2)During the three months ended June 30, 2023, the Company acquired two annexes to existing properties.
The results of operations for these self storage acquisitions are included in the Company's consolidated statements of operations beginning on the respective closing date for each acquisition. The accompanying consolidated statements of operations includes aggregate revenue of $12.3 million and operating expenses of $10.9 million related to the 20 self storage properties acquired during the year ended December 31, 2023. For the year ended December 31, 2022, the accompanying consolidated statements of operations includes aggregate revenue of $18.0 million and operating expenses of $19.8 million related to the 45 self storage properties acquired during such period.
During the year ended December 31, 2023, in connection with the retirement of Move It as a PRO as discussed in Note 1 and Note 3, the Company acquired Move It's rights to its asset management agreements, the Move It brand, and other intellectual property for $4.7 million.
Dispositions
During the year ended December 31, 2023, the Company sold 32 self storage properties and an undeveloped land parcel for net proceeds of $262.3 million. The Company recorded a net gain on the dispositions of $63.9 million.
For the year ended December 31, 2022, the Company disposed of two self storage properties and an undeveloped land parcel for net proceeds of $11.0 million. The Company recorded a net gain on the dispositions of $5.5 million.
Assets Held for Sale
As of December 31, 2023, the Company classified as held for sale 39 self storage properties to be sold to a third party in 2024 and 56 self storage properties that were contributed to the 2024 Joint Venture in 2024.