The Life Storage Merger added 757 wholly-owned stores and one consolidated joint venture store to the portfolio. An additional 14 stores were acquired during the year ended December 31, 2023, and 58 stores were acquired during the year ended December 31, 2024.

Management fees and other income increased by 18.5% due to an increase in the number of stores managed. As of December 31, 2024, we managed 2,044 stores for third parties and unconsolidated joint ventures, compared to 1,811 stores as of December 31, 2023.

The decision to operate all stores under a single brand resulted in an impairment of the Life Storage trade name intangible asset, resulting in a $51.8 million loss. This indicates a shift in branding strategy.

The company employs industry-leading revenue management systems, developed by their management team, to analyze, set, and adjust rental rates daily across the portfolio in response to changing market conditions. This allows for proactive revenue management.

Management spends a significant portion of their time maximizing cash flows from their diverse portfolio of stores. This indicates a focus on efficient asset management.

Life Storage Merger transition costs were $66.7 million, primarily consisting of severance payments. This reflects costs associated with integrating the acquired business.

The company acknowledges the vulnerability of information technology systems to cyberattacks and security incidents, which could disrupt operations and compromise confidential information. This is a recurring risk factor for many companies.

Climate change may cause extreme weather, changes in precipitation and temperature, increases in wildfire risk, and rising sea levels, which may cause physical damage to stores or a decrease in demand for rental space. This is a growing concern for real estate companies.

The company holds interests in operating stores through joint ventures, which could be adversely affected by the company's lack of sole decision-making authority, reliance on co-venturers' financial conditions, and disputes between the company and its co-venturers.

Competition in the local markets in which many of the company's stores are located is significant and has affected occupancy levels, rental rates, and operating expenses. Development of self-storage facilities has increased in recent years, which has intensified competition.

The company believes that it is well-positioned to compete for acquisitions, but acknowledges that it has encountered competition when it has sought to acquire existing operating stores, especially for brokered portfolios.

The company states that it is the largest self-storage operator in the United States, indicating a strong competitive position based on scale.

The clustering of assets around large population centers enables the company to reduce operating costs through economies of scale.

For same-stores as of December 31, 2024, the average length of stay for tenants who had vacated was approximately 17.5 months, suggesting operational stability.

The company's store portfolio is made up of different types of construction and building configurations, with most sites being 'hybrid' facilities, a mix of both drive-up buildings and multi-floor buildings.

The company has a cybersecurity risk management program intended to protect the confidentiality, integrity, and availability of its critical systems and information, which includes a cybersecurity Incident Response Plan.

The company designs and assesses its cybersecurity program based on the Center for Internet Security Critical Security Controls Version 8 (CIS V8).

The company's management team, including the Senior Vice President of Information Systems and Vice President of Information Security and Compliance, is responsible for assessing and managing material risks from cybersecurity threats.

The company primarily uses public bonds, unsecured private placement bonds, and unsecured bank term loans to finance store acquisitions and development efforts.

The company has an active 'at the market' ('ATM') program for selling stock and sells stock under the ATM program from time to time to raise capital when it believes conditions are advantageous.

The company views equity interests in its Operating Partnership as another source of capital that can provide an attractive tax planning opportunity to sellers of real estate.

The company is committed to fostering an inclusive culture and living its core values of integrity, teamwork, excellence, passion and innovation.

In 2024, the company continued to expand participation in its employee resource groups, which provide employees with opportunities to build connections, celebrate culture, access mentoring, and engage in educational initiatives that strengthen the workplace community.

The company believes that its emphasis on training and development, employee safety, employee health and well-being, and a commitment to its values leads to an increase in employee engagement and positions it to attract and retain top diverse talent.

The self-storage business is subject to seasonal fluctuations, with a greater portion of revenues and profits typically realized from May through September.

The self-storage industry is characterized by fragmented ownership, where the largest companies in the industry own a fraction of the operating stores.

The scarcity of capital available to small operators for acquisitions and expansions, internet marketing, call centers, and the potential for savings through economies of scale are factors that are leading to consolidation in the industry.