Quarterly report pursuant to Section 13 or 15(d)

Commitment and Contingencies

v3.22.1
Commitment and Contingencies
3 Months Ended
Mar. 31, 2022
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 warehousing and 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 March 31, 2022. At March 31, 2022 and December 31, 2021, the Company’s aggregate right-of-use assets total $18.9 million and $19.5 million, respectively, and are included in other assets on the consolidated balance sheet. The related lease liabilities at March 31, 2022 and December 31, 2021 total $18.7 million and $19.2 million, respectively, and are included in accounts payable and accrued liabilities on the consolidated balance sheet.

Expenses related to operating leases totaled $0.7 million and $0.6 million for the three months ended March 31, 2022 and 2021, respectively. At March 31, 2022, the weighted average remaining lease term and weighted average discount rate for the Company’s operating leases were 10.1 years and 4.59%, respectively.

At March 31, 2022, the Company has approximately $24.0 million of operating lease commitments, excluding variable consideration. The undiscounted future minimum lease payments are summarized by year in the table below:

 

(in thousands)

 

 

 

2022

 

$

2,141

 

2023

 

 

2,663

 

2024

 

 

2,584

 

2025

 

 

2,402

 

2026

 

 

2,484

 

Thereafter

 

 

11,697

 

Total

 

$

23,971

 

 

The difference between the amounts included in the table above and the aggregate lease liability recorded in the accompanying consolidated balance sheet at March 31, 2022 is the result of the impact of the discount rate on future minimum lease payments.

At March 31, 2022, the Company was under contract to acquire 15 self-storage facilities for an aggregate purchase price of $279.1 million. During April 2022, the Company completed the acquisition of five of these self-storage facilities for an aggregate purchase price of $88.5 million. The purchases of the remaining 10 self-storage facilities are subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.

At March 31, 2022, the Company has signed contracts in place with third-party contractors for expansion and enhancements at its existing facilities. The Company expects to pay $56.9 million under these contracts in 2022 and 2023.