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

Quarterly report pursuant to Section 13 or 15(d)

SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS

SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS

6 Months Ended

Jun. 30, 2019

SELF STORAGE PROPERTY ACQUISITIONS AND DISPOSITIONS

Acquisitions

The Company acquired 56 self storage properties with an estimated fair value of $379.9 million during the six months ended June 30, 2019. Of these acquisitions, 21 self storage properties with an estimated fair value of $145.5 million were acquired by the Company from its PROs and one self storage property with an estimated fair value of $4.1 million was acquired by the Company from the 2016 Joint Venture. The 56 self storage property acquisitions were accounted for as asset acquisitions and accordingly, $2.6 million 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 the total purchase price to the estimated fair value of tangible and intangible assets acquired, and liabilities assumed. 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 value of $9.2 million, resulting in a total fair value of $370.7 million allocated to real estate.

The following table summarizes the investment in self storage property acquisitions completed by the Company during the six months ended June 30, 2019 (dollars in thousands):



Acquisitions Closed During the Three Months Ended:	Number of Properties	Summary of Investment
		Cash and Acquisition Costs		Value of OP Equity⁽¹⁾		Other Liabilities		Total
		Cash and Acquisition Costs		Value of OP Equity⁽¹⁾		Other Liabilities		Total
March 31, 2019	32	$	160,531	$	33,356	$	674	$	194,561
June 30, 2019	24	168,442		15,515		1,378		185,335
Total	56	$	328,973	$	48,871	$	2,052	$	379,896


⁽¹⁾	^{Value of OP equity represents the fair value of Series A-1 preferred units, OP units and subordinated performance units.}

Dispositions

During the six months ended June 30, 2019, the Company sold one self storage property to an unrelated third party. The gross sales price was $6.5 million and the Company recognized $2.8 million of gain on the sale.