Annual report pursuant to Section 13 and 15(d)

Commitment and Contingencies

v3.10.0.1
Commitment and Contingencies
12 Months Ended
Dec. 31, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitment and Contingencies

14. COMMITMENTS AND CONTINGENCIES

The Company’s current practice is to conduct environmental investigations in connection with property acquisitions. At this time, the Company is not aware of any environmental contamination of any of its facilities that individually or in the aggregate would be material to the Company’s overall business, financial condition, or results of operations.

Future minimum lease payments on land and building leases related to self-storage facilities and the lease of the Company’s headquarters are as follows (dollars in thousands):

 

Year ending December 31:

 

 

 

 

2019

 

$

2,887

 

2020

 

 

2,524

 

2021

 

 

2,393

 

2022

 

 

2,393

 

2023

 

 

1,687

 

Thereafter

 

 

10,344

 

Total

 

$

22,228

 

 

At December 31, 2018, the Company was under contract to acquire a self-storage facility for a purchase price of $9.3 million. The purchase of this facility is subject to customary conditions to closing, and there is no assurance that this facility will be acquired.

At December 31, 2018, the Company has signed contracts in place with third-party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $29.7 million under these contracts in 2019.

On or about August 25, 2014, a putative class action was filed against the Company in the Superior Court of New Jersey Law Division Burlington County. The action sought to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of various statutory laws. On October 17, 2014, the action was removed from the Superior Court of New Jersey Law Division Burlington County to the United States District Court for the District of New Jersey. The parties subsequently reached a settlement of all claims for an aggregate amount of $8.0 million, and the settlement was approved by the court on June 12, 2018. The Company is in the process of making payments under the settlement to the members of the class and has made most of the required payments as of December 31, 2018. The aggregate remaining settlement amount of $0.2 million has been recorded as a liability in the Company’s consolidated balance sheet.