Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

v3.19.3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
 9 Months Ended
Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract]  
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
2018 Joint Venture
As of September 30, 2019, 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"), owned and operated a portfolio of 103 self storage properties containing approximately 7.8 million rentable square feet, configured in over 63,000 storage units and located across 17 states.
2016 Joint Venture
As of September 30, 2019, 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"), owned and operated a portfolio of 72 properties containing approximately 4.9 million rentable square feet, configured in approximately 40,000 storage units and located across 13 states.
During the nine months ended September 30, 2019, the 2016 Joint Venture sold to the Company one self storage property for a gross sales price of $4.1 million. See Note 10 for additional details about the Company's acquisition of the self storage property from the 2016 Joint Venture.
The following table presents the combined condensed financial position of the Company's unconsolidated real estate ventures as of September 30, 2019 and December 31, 2018 (in thousands):
 
September 30, 2019
 
December 31, 2018
ASSETS
 
 
 
Self storage properties, net
$
1,849,177

 
$
1,894,412

Other assets
27,632

 
50,915

Total assets
$
1,876,809

 
$
1,945,327

LIABILITIES AND EQUITY
 
 
 
Debt financing
$
947,678

 
$
956,357

Other liabilities
23,559

 
16,516

Equity
905,572

 
972,454

Total liabilities and equity
$
1,876,809

 
$
1,945,327

 
 
 
 

The following tables present the combined condensed operating information of the Company's unconsolidated real estate ventures for the three and nine months ended September 30, 2019 and 2018 (in thousands):
 
Three Months Ended September 30,
 
2019
 
2018
Total revenue
$
41,600

 
$
23,090

Property operating expenses
12,727

 
6,766

Net operating income
28,873

 
16,324

Supervisory, administrative and other expenses
(2,750
)
 
(1,594
)
Depreciation and amortization
(20,788
)
 
(7,801
)
Interest expense
(9,934
)
 
(4,836
)
Loss on sale of self storage properties
—

 
(820
)
Acquisition and other expenses
(314
)
 
(307
)
Net (loss) income
$
(4,913
)
 
$
966

 
 
 
 

 
Nine Months Ended September 30,
 
2019
 
2018
Total revenue
$
122,253

 
$
53,092

Property operating expenses
37,815

 
17,059

Net operating income
84,438

 
36,033

Supervisory, administrative and other expenses
(8,109
)
 
(3,723
)
Depreciation and amortization
(64,502
)
 
(18,835
)
Interest expense
(29,895
)
 
(10,663
)
Loss on sale of self storage properties
(806
)
 
(820
)
Acquisition and other expenses
(1,141
)
 
(844
)
Net (loss) income
$
(20,015
)
 
$
1,148

 
 
 
 

The combined condensed operating information in the tables above only includes information for the 2018 Joint Venture following the acquisition of the Initial 2018 JV Portfolio in September 2018.