National Storage Affiliates Trust Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LEASES

LEASES

3 Months Ended

Mar. 31, 2019

The Company determines if a contractual arrangement is a lease at inception. As a lessee, the Company has non-cancelable lease agreements for real estate and its corporate office space that are classified as operating leases. The Company's operating leases are included in operating lease right-of-use ("ROU") assets and operating lease liabilities in its condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's operating leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at commencement date in determining the discount rate for the present value of the lease payments. To the extent that the lease agreements provide for fixed increases throughout the term of the lease, the Company recognizes lease expense on a straight-line basis over the expected lease terms.

Real Estate Leasehold Interests

The Company has seven properties that are subject to non-cancelable leasehold interest agreements with remaining lease terms ranging from 15 to 73 years, inclusive of extension options that the Company anticipates exercising. Rent expense under these leasehold interest agreements is included in property operating expenses in the accompanying condensed consolidated statements of operations and amounted to $0.4 million and $0.4 million for the three months ended March 31, 2019 and 2018, respectively.

Office Leases

The Company has entered into non-cancelable lease agreements for its corporate office space with remaining lease terms ranging from four to eight years. Rent expense related to these office leases is included in general and administrative expenses in the accompanying condensed consolidated statements of operations and amounted to $0.1 million and less than $0.1 million for the three months ended March 31, 2019 and 2018, respectively.

The weighted-average remaining lease term and the weighted-average discount rate for the Company's operating leases as of March 31, 2019 are as follows:



	March 31, 2019
Weighted-average remaining lease term
Real estate leasehold interests	29 years
Office leases	7 years
Weighted-average remaining discount rate
Real estate leasehold interests	4.9	%
Office leases	4.1	%

As of March 31, 2019, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):



Year Ending December 31,	Real Estate Leasehold Interests			Office Leases			Total
2019	$	1,005		$	144		$	1,149
2020	1,385			286			1,671
2021	1,410			387			1,797
2022	1,425			381			1,806
2023	1,431			346			1,777
2024 through 2092	36,419			1,043			37,462
Total lease payments	$	43,075		$	2,587		$	45,662
Less imputed interest	(21,108		)	(388		)	(21,496		)
Total	$	21,967		$	2,199		$	24,166

As of December 31, 2018, the future minimum lease payments under the Company's operating leases, for which the Company is a lessee, are as follows (in thousands):



Year Ending December 31,	Real Estate Leasehold Interests		Office Leases		Total
2019	$	1,334	$	345	$	1,679
2020	1,379		398		1,777
2021	1,404		387		1,791
2022	1,419		381		1,800
2023	1,424		346		1,770
2024 through 2092	36,074		1,073		37,147
Total lease payments	$	43,034	$	2,930	$	45,964