Annual report pursuant to Section 13 and 15(d)

Investment In Storage Facilities

v2.4.0.6
Investment In Storage Facilities
12 Months Ended
Dec. 31, 2011
Investment In Storage Facilities [Abstract]  
Investment In Storage Facilities

4. INVESTMENT IN STORAGE FACILITIES

The following summarizes activity in storage facilities during the years ended December 31, 2011 and December 31, 2010.

 

(Dollars in thousands)

   2011     2010  

Cost:

    

Beginning balance

   $ 1,419,956     $ 1,364,454  

Acquisition of storage facilities

     151,572       34,155  

Improvements and equipment additions

     21,764       23,311  

Increase (decrease) in construction in progress

     6,371       (1,788

Dispositions and impairments

     (3,560     (176
  

 

 

   

 

 

 

Ending balance

   $ 1,596,103     $ 1,419,956  
  

 

 

   

 

 

 

Accumulated Depreciation:

    

Beginning balance

   $ 271,797     $ 238,971  

Additions during the year

     35,008       32,939  

Dispositions and impairments

     (1,220     (113
  

 

 

   

 

 

 

Ending balance

   $ 305,585     $ 271,797  
  

 

 

   

 

 

 

The assets and liabilities of the acquired storage facilities, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, "Fair Value Measurements and Disclosures." During 2011 and 2010, the Company acquired 29 and 7 self-storage facilities, respectively, and the purchase price of the facilities was assigned as follows:

 

 

                          Consideration paid     Acquisition Date Fair Value  

State

   Number of
Properties
     Date of
Acquisition
     Purchase
Price
     Cash Paid      Loan
Assumed
     Net Other
Liabilities
(Assets)
Assumed
    Land      Building,
Equipment,
and
Improvements
     In-Place
Customers
Leases
     Closing
Costs
Expensed
 

2011

                            

New Jersey

     1         6/30/2011       $ 4,154       $ 4,131       $ —         $ 23      $ 626       $ 3,419       $ 109       $ 23   

New Jersey

     2         7/14/2011         14,571         14,439         —           132        1,681         12,540         350         467   

Missouri

     1         7/28/2011         2,400         2,350         —           50        197         2,132         71         95   

Georgia

     1         8/1711         9,500         9,399         —           101        1,043         8,252         205         226   

Texas

     22         9/22/2011         110,950         106,703         2,511         1,736        25,660         82,804         2,486         2,051   

Virginia

     1         9/29/2011         8,925         8,851         —           74        2,848         5,892         185         252   

Florida

     1         11/15/2011         4,600         4,571         —           29        197         4,281         122         164   
  

 

 

       

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total 2011

     29          $ 155,100       $ 150,444       $ 2,511       $ 2,145      $ 32,252       $ 119,320       $ 3,528       $ 3,278   
        

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

2010

                            

N. Carolina

     1         12/28/2010         5,040         5,020         —           20        846         4,095         99         157   

N. Carolina

     6         12/29/2010         29,680         29,697         —           (17     4,523         24,691         466         629   
  

 

 

       

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

Total 2010

     7          $ 34,720       $ 34,717       $ —         $ 3      $ 5,369       $ 28,786       $ 565       $ 786   
        

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

 

The Company did not acquire any storage facilities in 2009. The operating results of the acquired faculties have been included in the Company's operations since the respective acquisition dates.

The Company measures the fair value of in-place customer lease intangible assets based on the Company's experience with customer turnover. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). In-place customer leases are included in other assets on the Company's balance sheet as follows:

 

(Dollars in thousands)

   2011     2010  

In-place customer leases

   $ 9,542     $ 6,014  

Accumulated amortization

     (7,019     (5,449
  

 

 

   

 

 

 

Net carrying value at December 31,

   $ 2,523     $ 565  
  

 

 

   

 

 

 

Amortization expense related to in-place customer leases was $1.6 million, $0, and $0.3 million for the years ended December 31, 2011, 2010, and 2009, respectively. Amortization expense in 2012 is expected to be $2.5 million.