Venture

Number of
Properties at
June 30,
2021

Company
common
ownership
interest at
June 30,
2021

Carrying value
of investment
at June 30,
2021

Carrying value of
investment at
December 31,
2020

Sovran HHF Storage Holdings LLC (“Sovran HHF”)1

36

20%

$59.5 million

$60.5 million

Sovran HHF Storage Holdings II LLC (“Sovran HHF II”)2

22

15%

($4.7   million)

$27.3 million

Life Storage-SERS Storage LLC (“SERS”)

3

20%

$3.0   million

$3.0   million

Life Storage-HIERS Storage LLC (“HIERS”)

17

20%

$14.0 million

$14.3 million

191 V Life Storage Holdings LLC ("191 V")3

17

20%

$28.4 million

—

Iskalo Office Holdings, LLC (“Iskalo”)4

N/A

49%

($2.4   million)

($2.5   million)

Life Storage Spacemax, LLC ("Spacemax")

6

40%

$14.9 million

$16.7 million

Life Storage Virtus, LLC ("Virtus")5

1

20%

$1.3   million

$1.5   million

SNL Orix Merrick, LLC ("Merrick")6

—

5%

—

$2.5   million

Joint ventures with properties in development stage7

7

Various

$11.7 million

$10.4 million

Other unconsolidated joint ventures (6 joint ventures)

6

Various

$6.7   million

$6.8   million

1

In September 2020, the Company acquired 17 self-storage facilities and related assets from Sovran HHF for total consideration of $175.2 million, which is net of the Company’s share of Sovran HHF’s gain resulting from the transaction. In connection with this transaction, non-recourse loans with principal balances totaling $34.0 million were settled. Also in September 2020, Sovran HHF sold four self-storage facilities to an unrelated third-party for total consideration of $42.3 million, resulting in a gain on sale of $2.1 million. As of June 30, 2021, the carrying value of the Company’s investment in Sovran HHF exceeds its share of the underlying equity in net assets of Sovran HHF by approximately $1.7 million as a result of the capitalization of certain acquisition related costs in 2008. This difference is included in the carrying value of the investment.

2

In September 2020, the Company acquired eight self-storage facilities and related assets from Sovran HHF II for total consideration of $120.2 million, which is net of the Company’s share of Sovran HHF II’s gain resulting from the transaction. In connection with this transaction, $35.8 million of non-recourse loans related to these properties were settled in April 2021. Also in connection with this transaction, the Company made a $12.7 million contribution to Sovran HHF II. On April 1, 2021, Sovran HHF II paid off $69.1 million in existing nonrecourse mortgage debt and entered into $110 million of new nonrecourse mortgage debt which matures in 2029. As a result of the net proceeds from these transactions, the Company received a distribution of $31.6 million from Sovran HHF II on April 1, 2021 which is included in return of investment in unconsolidated joint ventures on the consolidated statement of cash flows at June 30, 2021.

3

In May 2021, the Company executed a joint venture agreement, 191 V Life Storage Holdings LLC, with an unrelated third-party with the purpose of acquiring and operating self-storage facilities. In June 2021, 191 V acquired 17 self-storage facilities for a total of $320 million, at which time 191 V entered into $184 million of nonrecourse mortgage debt which matures in 2026. During 2021, the Company contributed $28.7 million to 191 V as the Company's share of the initial capital investment in the joint venture.

4

Iskalo owns the building that houses the Company’s headquarters. The Company paid rent to Iskalo of $0.7 million and $0.6 million during the six months ended June 30, 2021 and 2020, respectively.

5

In February 2020, the Company executed a joint venture agreement, Life Storage Virtus, LLC, with an unrelated third-party with the purpose of acquiring and operating a self-storage facility. During the first quarter of 2020, Virtus acquired a self-storage facility for a total of $21.7 million. In connection with this acquisition, Virtus entered into $14.0 million of non-recourse mortgage debt. During 2020, the Company contributed $1.7 million to Virtus as the Company’s share of the initial capital investment in the joint venture.

6

In March 2021, the Company acquired a self-storage facility and related assets from Merrick for total consideration of $47.9 million which is net of the Company’s share of Merrick’s gain resulting from the transaction. In connection with this transaction, all non-recourse loans held by Merrick were settled.

7

The Company has entered into seven separate joint ventures, two of which are developing self-storage facilities in Ontario, Canada, four of which are developing self-storage facilities in the New York City market, and one of which is developing a self-storage facility in the Tucson, AZ, market. The Company has contributed an aggregate total of $11.7 million as its share of capital to these joint ventures.

(dollars in thousands)
Venture

Three Months
Ended
June 30, 2021

Three Months
Ended
June 30, 2020

Six Months
Ended
June 30, 2021

Six Months
Ended
June 30, 2020

Sovran HHF

$

747

$

861

$

1,401

$

1,783

Sovran HHF II

389

446

721

901

Other unconsolidated joint ventures

292

(337

)

527

(598

)

$

1,428

$

970

$

2,649

$

2,086