Quarterly report pursuant to Section 13 or 15(d)

Commitment and Contingencies

v3.20.2
Commitment and Contingencies
6 Months Ended
Jun. 30, 2020
Commitments And Contingencies Disclosure [Abstract]  
Commitment and Contingencies

16. COMMITMENT AND CONTINGENCIES

The Company’s lease population is comprised of leases for land and/or buildings in which certain of the Company’s self-storage facilities operate, as well as leases of corporate office space. All leases where the Company is the lessee qualify as operating leases and the Company does not have any financing leases as of June 30, 2020. At June 30, 2020 and December 31, 2019, the Company’s aggregate right-of-use assets total $19.6 million and $20.2 million, respectively, and are included in other assets on the consolidated balance sheet. The related lease liabilities at June 30, 2020 and December 31, 2019 total $19.0 million and $19.9 million, respectively, and are included in accounts payable and accrued liabilities on the consolidated balance sheet.  

Expenses related to operating leases totaled $0.5 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $1.0 million and $1.3 million for the six months ended June 30, 2020 and 2019, respectively. At June 30, 2020, the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were 10.8 years and 4.6%, respectively.

At June 30, 2020, the Company has approximately $24.3 million of operating lease commitments, excluding variable consideration. The undiscounted future minimum lease payments are summarized by year in the table below:

 

(in thousands)

 

 

 

 

2020

 

$

820

 

2021

 

 

2,294

 

2022

 

 

2,294

 

2023

 

 

2,294

 

2024

 

 

2,280

 

Thereafter

 

 

14,349

 

Total

 

$

24,331

 

 

The difference between the amounts included in the table above and the aggregate lease liability recorded in the accompanying consolidated balance sheet at June 30, 2020 is the result of the impact of the discount rate on future minimum lease payments.

At March 31, 2020, the Company was under contract to sell one of its self-storage facilities for $19.0 million. The sale of this self-storage facility did not occur and the Company is no longer under contract to sell this self-storage facility at June 30, 2020.

At June 30, 2020, the Company has signed contracts in place with third-party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $17.3 million under these contracts in 2020 and 2021.