10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2016

Commission file number:

1-13820 (Life Storage, Inc.)

0-24071 (Life Storage LP)

LIFE STORAGE, INC.

LIFE STORAGE LP

(Exact name of Registrant as specified in its charter)

Maryland (Life Storage, Inc.)	16-1194043
Delaware (Life Storage LP)	16-1481551
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

6467 Main Street

Williamsville, NY 14221

(Address of principal executive offices) (Zip code)

(716) 633-1850

(Registrant’s telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Life Storage, Inc.	Yes  ☒    No  ☐
Life Storage LP	Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Life Storage, Inc.	Yes  ☒    No  ☐
Life Storage LP	Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Life Storage, Inc.:

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐

Life Storage LP:

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Life Storage, Inc.	Yes  ☐    No  ☒
Life Storage LP	Yes  ☐    No  ☒

As of October 24, 2016, 46,396,450 shares of Common Stock, $.01 par value per share, were outstanding.

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the periods ended September 30, 2016 of Life Storage, Inc., formerly known as Sovran Self Storage, Inc. (the “Parent Company”) and Life Storage LP, formerly known as Sovran Acquisition Limited Partnership (the “Operating Partnership”). The Parent Company is a real estate investment trust, or REIT, that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership. Effective August 15, 2016, the Parent Company changed its name from “Sovran Self Storage, Inc.” to “Life Storage, Inc.” and the Operating Partnership changed its name from “Sovran Acquisition Limited Partnership” to “Life Storage LP”. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and through its ownership of Holdings and its limited partnership interest, controls the operations of the Operating Partnership, holding a 99.6% ownership interest therein as of September 30, 2016. The remaining ownership interests in the Operating Partnership are held by certain former owners of assets acquired by the Operating Partnership. As the owner of the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

Management operates the Parent Company and the Operating Partnership as one enterprise. The management teams of the Parent Company and the Operating Partnership are identical.

There are few differences between the Parent Company and the Operating Partnership, which are reflected in the note disclosures in this report. The Company believes it is important to understand the differences between the Parent Company and the Operating Partnership in the context of how these entities operate as a consolidated enterprise. The Parent Company is a REIT, whose only material asset is its ownership of the partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the owner of the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all the assets of the Company and, directly or indirectly, holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s direct or indirect incurrence of indebtedness or through the issuance of partnership units of the Operating Partnership.

The substantive difference between the Parent Company’s and the Operating Partnership’s filings is the fact that the Parent Company is a REIT with public equity, while the Operating Partnership is a partnership with no publicly traded equity. In the financial statements, this difference is primarily reflected in the equity (or capital for the Operating Partnership) section of the consolidated balance sheets and in the consolidated statements of equity (or capital). Apart from the different equity treatment, the consolidated financial statements of the Parent Company and the Operating Partnership are nearly identical.

2

The Company believes that combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into a single report will:

• facilitate a better understanding by the investors of the Parent Company and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;

• remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both the Parent Company and the Operating Partnership; and

• create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

As the owner of the general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Parent Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company’s operations on a consolidated basis and how management operates the Company.

This report also includes separate Item 4—Controls and Procedures sections, signature pages and Exhibit 31 and 32 certifications for each of the Parent Company and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Parent Company and the Chief Executive Officer and the Chief Financial Officer of the Operating Partnership have made the requisite certifications and that the Parent Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended and 18 U.S.C. §1350.

3

Part I. Financial Information

Item 1. Financial Statements

LIFE STORAGE, INC.

CONSOLIDATED BALANCE SHEETS

(dollars in thousands, except share data)	September 30, 2016 (unaudited)			December 31, 2015
Assets
Investment in storage facilities:
Land	$	785,866		$	480,176
Building, equipment, and construction in progress		3,416,823			2,011,526
		4,202,689			2,491,702
Less: accumulated depreciation		(513,716	)		(465,195	)
Investment in storage facilities, net		3,688,973			2,026,507
Cash and cash equivalents		16,146			7,032
Accounts receivable		5,973			6,805
Receivable from unconsolidated joint ventures		747			929
Investment in unconsolidated joint ventures		66,667			62,520
Prepaid expenses		7,772			5,431
Fair value of interest rate swap agreements		—			550
Other assets		61,838			9,048
Total Assets	$	3,848,116		$	2,118,822
Liabilities
Line of credit	$	240,000		$	79,000
Term notes, net		1,387,119			746,650
Accounts payable and accrued liabilities		62,155			47,839
Deferred revenue		9,996			7,511
Fair value of interest rate swap agreements		19,248			15,343
Mortgages payable		10,134			1,993
Total Liabilities		1,728,652			898,336
Noncontrolling redeemable Operating Partnership Units at redemption value		17,996			18,171
Shareholders’ Equity
Common stock $.01 par value, 100,000,000 shares authorized, 46,396,450 shares outstanding at September 30, 2016 (36,710,673 at December 31, 2015)		464			367
Additional paid-in capital		2,343,581			1,388,343
Dividends in excess of net income		(214,703	)		(171,980	)
Accumulated other comprehensive loss		(27,932	)		(14,415	)
Total Shareholders’ Equity		2,101,410			1,202,315
Noncontrolling interest in consolidated subsidiary		58			—
Total Equity		2,101,468			1,202,315
Total Liabilities and Shareholders’ Equity	$	3,848,116		$	2,118,822

See notes to consolidated financial statements.

4

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands, except per share data)	2016			2015			2016			2015
Revenues
Rental income	$	118,319		$	88,066		$	308,655		$	250,439
Other operating income		9,482			7,362			25,274			21,124
Total operating revenues		127,801			95,428			333,929			271,563
Expenses
Property operations and maintenance		28,382			20,954			74,396			61,001
Real estate taxes		13,102			9,247			34,670			27,311
General and administrative		10,909			9,367			31,486			28,459
Acquisition costs		25,220			1,046			29,297			2,415
Operating leases of storage facilities		—			—			—			683
Depreciation and amortization		41,405			14,671			76,082			43,437
Total operating expenses		119,018			55,285			245,931			163,306
Income from operations		8,783			40,143			87,998			108,257
Other income (expenses)
Interest expense		(14,647	)		(9,419	)		(32,024	)		(27,796	)
Interest expense – bridge financing commitment fee		—			—			(7,329	)		—
Interest income		13			1			56			4
Gain (loss) on sale of storage facilities		—			—			15,270			(7	)
Equity in income of joint ventures		882			936			2,795			2,436
Net (loss) income		(4,969	)		31,661			66,766			82,894
Net loss (income) attributable to noncontrolling interest in the Operating Partnership		21			(157	)		(317	)		(407	)
Net loss attributable to noncontrolling interest in consolidated subsidiary		210			—			609			—
Net (loss) income attributable to common shareholders	$	(4,738	)	$	31,504		$	67,058		$	82,487
(Loss) earnings per common share attributable to common shareholders – basic	$	(0.10	)	$	0.88		$	1.59		$	2.35
(Loss) earnings per common share attributable to common shareholders – diluted	$	(0.10	)	$	0.88		$	1.58		$	2.33
Common shares used in basic (loss) earnings per share calculation		46,139,079			35,700,375			42,176,762			35,135,946
Common shares used in diluted (loss) earnings per share calculation		46,139,079			35,917,105			42,414,623			35,358,332
Dividends declared per common share	$	0.95		$	0.85		$	2.75		$	2.35

See notes to consolidated financial statements.

5

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2016			2015			2016			2015
Net (loss) income	$	(4,969	)	$	31,661		$	66,766		$	82,894
Other comprehensive (loss) income:
Effective portion of gain (loss) on derivatives net of reclassification to interest expense		2,931			(4,537	)		(13,517	)		(6,103	)
Total comprehensive (loss) income		(2,038	)		27,124			53,249			76,791
Comprehensive loss (income) attributable to noncontrolling interest in the Operating Partnership		8			(135	)		(253	)		(377	)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary		210			—			609			—
Comprehensive (loss) income attributable to common shareholders	$	(1,820	)	$	26,989		$	53,605		$	76,414

See notes to consolidated financial statements.

6

LIFE STORAGE, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)	January 1, 2016 to September 30, 2016			January 1, 2015 to September 30, 2015
Operating Activities
Net income	$	66,766		$	82,894
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		76,082			43,437
Amortization of debt issuance costs and bond discount		8,858			888
(Gain) loss on sale of storage facilities		(15,270	)		7
Equity in income of joint ventures		(2,795	)		(2,436	)
Distributions from unconsolidated joint ventures		3,875			3,250
Non-vested stock earned		5,583			4,786
Stock option expense		85			163
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable		4,308			(715	)
Prepaid expenses		(1,080	)		776
Receipts from (advances to) joint ventures		182			(231	)
Accounts payable and other liabilities		5,787			5,823
Deferred revenue		(3,012	)		(589	)
Net cash provided by operating activities		149,369			138,053
Investing Activities
Acquisitions of storage facilities, net of cash acquired		(1,738,538	)		(273,469	)
Improvements, equipment additions, and construction in progress		(44,441	)		(24,332	)
Net proceeds from the sale of storage facilities		34,074			711
Investment in unconsolidated joint ventures		(5,336	)		(483	)
Property deposit		(759	)		(1,215	)
Net cash used in investing activities		(1,755,000	)		(298,788	)
Financing Activities
Net proceeds from sale of common stock		944,872			176,503
Proceeds from line of credit		1,059,000			297,000
Repayments of line of credit		(898,000	)		(232,000	)
Proceeds from term notes, net of discount		796,682			—
Repayment of term note		(150,000	)		—
Debt issuance costs		(15,253	)		—
Settlement of forward starting interest rate swaps		(9,166	)		—
Dividends paid—common stock		(112,688	)		(82,742	)
Distributions to noncontrolling interest holders		(557	)		(403	)
Mortgage principal payments		(145	)		(99	)
Net cash provided by financing activities		1,614,745			158,259
Net increase (decrease) in cash		9,114			(2,476	)
Cash at beginning of period		7,032			8,543
Cash at end of period	$	16,146		$	6,067
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	$	31,489		$	25,844
Cash paid for income taxes, net of refunds	$	911		$	1,080

See notes to consolidated financial statements.

7

LIFE STORAGE LP

CONSOLIDATED BALANCE SHEETS

(dollars in thousands)	September 30, 2016 (unaudited)			December 31, 2015
Assets
Investment in storage facilities:
Land	$	785,866		$	480,176
Building, equipment, and construction in progress		3,416,823			2,011,526
		4,202,689			2,491,702
Less: accumulated depreciation		(513,716	)		(465,195	)
Investment in storage facilities, net		3,688,973			2,026,507
Cash and cash equivalents		16,146			7,032
Accounts receivable		5,973			6,805
Receivable from unconsolidated joint ventures		747			929
Investment in unconsolidated joint ventures		66,667			62,520
Prepaid expenses		7,772			5,431
Fair value of interest rate swap agreements		—			550
Other assets		61,838			9,048
Total Assets	$	3,848,116		$	2,118,822
Liabilities
Line of credit	$	240,000		$	79,000
Term notes, net		1,387,119			746,650
Accounts payable and accrued liabilities		62,155			47,839
Deferred revenue		9,996			7,511
Fair value of interest rate swap agreements		19,248			15,343
Mortgages payable		10,134			1,993
Total Liabilities		1,728,652			898,336
Limited partners’ redeemable capital interest at redemption value (196,008 and 168,866 units outstanding at September 30, 2016 and December 31, 2015, respectively)		17,996			18,171
Partners’ Capital
General partner (465,925 and 368,795 units outstanding at September 30, 2016 and December 31, 2015, respectively)		21,194			12,205
Limited partners (45,930,525 and 36,341,878 units outstanding at September 30, 2016 and December 31, 2015, respectively)		2,108,148			1,204,525
Accumulated other comprehensive loss		(27,932	)		(14,415	)
Total Controlling Partners’ Capital		2,101,410			1,202,315
Noncontrolling interest in consolidated subsidiary		58			—
Total Partners’ Capital		2,101,468			1,202,315
Total Liabilities and Partners’ Capital	$	3,848,116		$	2,118,822

See notes to consolidated financial statements.

8

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(dollars in thousands, except per unit data)	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Revenues
Rental income	$	118,319		$	88,066		$	308,655		$	250,439
Other operating income		9,482			7,362			25,274			21,124
Total operating revenues		127,801			95,428			333,929			271,563
Expenses
Property operations and maintenance		28,382			20,954			74,396			61,001
Real estate taxes		13,102			9,247			34,670			27,311
General and administrative		10,909			9,367			31,486			28,459
Acquisition costs		25,220			1,046			29,297			2,415
Operating leases of storage facilities		—			—			—			683
Depreciation and amortization		41,405			14,671			76,082			43,437
Total operating expenses		119,018			55,285			245,931			163,306
Income from operations		8,783			40,143			87,998			108,257
Other income (expenses)
Interest expense		(14,647	)		(9,419	)		(32,024	)		(27,796	)
Interest expense – bridge financing commitment fee		—			—			(7,329	)		—
Interest income		13			1			56			4
Gain (loss) on sale of storage facilities		—			—			15,270			(7	)
Equity in income of joint ventures		882			936			2,795			2,436
Net (loss) income		(4,969	)		31,661			66,766			82,894
Net loss (income) attributable to noncontrolling interest in the Operating Partnership		21			(157	)		(317	)		(407	)
Net loss attributable to noncontrolling interest in consolidated subsidiary		210			—			609			—
Net (loss) income attributable to common unitholders	$	(4,738	)	$	31,504		$	67,058		$	82,487
(Loss) earnings per common unit attributable to common unitholders – basic	$	(0.10	)	$	0.88		$	1.59		$	2.35
(Loss) earnings per common unit attributable to common unitholders – diluted	$	(0.10	)	$	0.88		$	1.58		$	2.33
Common units used in basic (loss) earnings per unit calculation		46,139,079			35,700,375			42,176,762			35,135,946
Common units used in diluted (loss) earnings per unit calculation		46,139,079			35,917,105			42,414,623			35,358,332
Distributions declared per common unit	$	0.95		$	0.85		$	2.75		$	2.35
Net (loss) income attributable to general partner	$	(47	)	$	317		$	674		$	829
Net (loss) income attributable to limited partners		(4,691	)		31,344			66,384			82,065

See notes to consolidated financial statements.

9

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(unaudited)

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2016			2015			2016			2015
Net (loss) income	$	(4,969	)	$	31,661		$	66,766		$	82,894
Other comprehensive (loss) income:
Effective portion of gain (loss) on derivatives net of reclassification to interest expense		2,931			(4,537	)		(13,517	)		(6,103	)
Total comprehensive (loss) income		(2,038	)		27,124			53,249			76,791
Comprehensive loss (income) attributable to noncontrolling interest in the Operating Partnership		8			(135	)		(253	)		(377	)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary		210			—			609			—
Comprehensive (loss) income attributable to common unitholders	$	(1,820	)	$	26,989		$	53,605		$	76,414

See notes to consolidated financial statements.

10

LIFE STORAGE LP

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(dollars in thousands)	January 1, 2016 to September 30, 2016			January 1, 2015 to September 30, 2015
Operating Activities
Net income	$	66,766		$	82,894
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		76,082			43,437
Amortization of debt issuance costs and bond discount		8,858			888
(Gain) loss on sale of storage facilities		(15,270	)		7
Equity in income of joint ventures		(2,795	)		(2,436	)
Distributions from unconsolidated joint ventures		3,875			3,250
Non-vested stock earned		5,583			4,786
Stock option expense		85			163
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable		4,308			(715	)
Prepaid expenses		(1,080	)		776
Receipts from (advances to) joint ventures		182			(231	)
Accounts payable and other liabilities		5,787			5,823
Deferred revenue		(3,012	)		(589	)
Net cash provided by operating activities		149,369			138,053
Investing Activities
Acquisitions of storage facilities, net of cash acquired		(1,738,538	)		(273,469	)
Improvements, equipment additions, and construction in progress		(44,441	)		(24,332	)
Net proceeds from the sale of storage facilities		34,074			711
Investment in unconsolidated joint ventures		(5,336	)		(483	)
Property deposit		(759	)		(1,215	)
Net cash used in investing activities		(1,755,000	)		(298,788	)
Financing Activities
Net proceeds from sale of partnership units		944,872			176,503
Proceeds from line of credit		1,059,000			297,000
Repayments of line of credit		(898,000	)		(232,000	)
Proceeds from term notes, net of discount		796,682			—
Repayment of term note		(150,000	)		—
Debt issuance costs		(15,253	)		—
Settlement of forward starting interest rate swaps		(9,166	)		—
Distributions to unitholders		(112,688	)		(82,742	)
Distributions to noncontrolling interest holders		(557	)		(403	)
Mortgage principal payments		(145	)		(99	)
Net cash provided by financing activities		1,614,745			158,259
Net increase (decrease) in cash		9,114			(2,476	)
Cash at beginning of period		7,032			8,543
Cash at end of period	$	16,146		$	6,067
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	$	31,489		$	25,844
Cash paid for income taxes, net of refunds	$	911		$	1,080

See notes to consolidated financial statements.

11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Life Storage, Inc., formerly known as Sovran Self Storage, Inc., (the “Parent Company”) and Life Storage LP, formerly known as Sovran Acquisition Limited Partnership, (the “Operating Partnership”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

Reclassification: Certain amounts from the 2015 financial statements have been reclassified to conform with the current year presentation as described in Note 5.

2. ORGANIZATION

Effective August 15, 2016, the Parent Company changed its name from “Sovran Self Storage, Inc.” to “Life Storage, Inc.” and the Operating Partnership changed its name from “Sovran Acquisition Limited Partnership” to “Life Storage LP”. Also, consistent with these name changes, and in connection with the rebranding of our storage facilities from “Uncle Bob’s Self Storage ^®“ to “Life Storage ^®“, the name of the general partner of the Operating Partnership has been changed from “Sovran Holdings, Inc.” to “Life Storage Holdings, Inc.” and the name of the Parent Company’s taxable REIT subsidiary changed from “Uncle Bob’s Management, LLC” to “Life Storage Solutions, LLC”.

The Parent Company operates as a self-administered and self-managed real estate investment trust (a “REIT”) that owns and operates self-storage facilities throughout the United States. All of the Parent Company’s assets are owned by, and all its operations are conducted through, the Operating Partnership. Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and through its ownership of Holdings and its limited partnership interest controls the operations of the Operating Partnership, holding a 99.6% ownership interest therein as of September 30, 2016. The remaining ownership interests in the Operating Partnership (the “Units”) are held by certain former owners of assets acquired by the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

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At September 30, 2016, we had an ownership interest in, and/or managed 657 self-storage properties in 29 states under the names Uncle Bob’s Self Storage ^® and Life Storage ^®. Among our 657 self-storage properties are 39 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings LLC) of which we are a 20% owner, 30 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings II LLC) of which we are a 15% owner, and 26 properties that we manage and have no ownership interest. Approximately 39.0% of the Company’s revenue is derived from stores in the states of Texas and Florida. In addition, approximately 9.9% of the Company’s revenue is derived from the Houston, Texas market.

We consolidate all wholly-owned subsidiaries. Partially owned subsidiaries and joint ventures are consolidated when we control the entity. Our consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, Life Storage Solutions, LLC (the Parent Company’s taxable REIT subsidiary), Warehouse Anywhere LLC (an entity owned 60% by Life Storage Solutions, LLC), and all other wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Investments in joint ventures that we do not control but for which we have significant influence over are accounted for using the equity method.

Included in the Parent Company’s consolidated balance sheets are noncontrolling redeemable operating partnership units and included in the Operating Partnership’s consolidated balance sheets are limited partners’ redeemable capital interest at redemption value. These interests are presented in the “mezzanine” section of the consolidated balance sheet because they do not meet the functional definition of a liability or equity under current accounting literature. These represent the outside ownership interests of the limited partners in the Operating Partnership. At September 30, 2016, there were 196,008 noncontrolling redeemable operating partnership Units outstanding (168,866 at December 31, 2015). These unitholders are entitled to receive distributions per unit equivalent to the dividends declared per share on the Parent Company’s common stock. The Operating Partnership is obligated to redeem each of these limited partnership Units in the Operating Partnership at the request of the holder thereof for cash equal to the fair market value of a share of the Parent Company’s common stock, at the time of such redemption, provided that the Company at its option may elect to acquire any such Unit presented for redemption for one common share or cash. The Company accounts for these noncontrolling redeemable Operating Partnership Units under the provisions of EITF D-98, “Classification and Measurement of Redeemable Securities” which was codified in FASB ASC Topic 480-10-S99. The application of the FASB ASC Topic 480-10-S99 accounting model requires the noncontrolling interest to follow normal noncontrolling interest accounting and then be marked to redemption value at the end of each reporting period if higher (but never adjusted below that normal noncontrolling interest accounting amount). The offset to the adjustment to the carrying amount of the noncontrolling interests is reflected in the Company’s dividends in excess of net income and in the Operating Partnership’s general partner and limited partners capital balances. Accordingly, in the accompanying consolidated balance sheets, noncontrolling interests are reflected at redemption value at September 30, 2016 and December 31, 2015, equal to the number of noncontrolling interest units outstanding multiplied by the fair market value of the Parent Company’s common stock at that date. Redemption value exceeded the value determined under the Company’s historical basis of accounting at those dates.

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The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance noncontrolling redeemable Operating Partnership Units	$	18,171
Issuance of Operating Partnership Units		7,767
Redemption of Operating Partnership Units		(4,795	)
Net income attributable to noncontrolling interest in the Operating Partnership		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance noncontrolling redeemable Operating Partnership Units	$	17,996

The following is a reconciliation of the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance Limited Partners’ Redeemable Capital Interest	$	18,171
Issuance of Limited Partners’ Redeemable Capital Interest Units		7,767
Redemption of Limited Partners’ Redeemable Capital Interest Units		(4,795	)
Net income attributable to Limited Partners’ Redeemable Capital Interest		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance Limited Partners’ Redeemable Capital Interest	$	17,996

In 2016 the Operating Partnership issued 69,005 Units with a fair market value of $7.8 million to acquire self-storage properties. The fair value of the Units on the date of issuance was determined based upon the fair market value of the Parent Company’s common stock on that date.

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation—Stock Compensation”. The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

For the three months ended September 30, 2016 and 2015, the Company recorded compensation expense (included in general and administrative expense) of $4,000 and $46,000, respectively, related to stock options and $1,758,000 and $1,552,000, respectively, related to amortization of non-vested stock grants and performance-based awards. For the nine months ended September 30, 2016 and 2015, the Company recorded compensation expense of $85,000 and $163,000, respectively, related to stock options and $5,515,000 and $4,743,000, respectively, related to amortization of non-vested stock grants and performance-based awards.

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During the three months ended September 30, 2016 and 2015, employees and directors exercised 0 and 1,900 stock options respectively, and 29,205 and 31,078 shares of non-vested stock, respectively, vested. During the nine months ended September 30, 2016 and 2015, employees and directors exercised 0 and 16,900 stock options respectively, and 40,086 and 42,307 shares of non-vested stock, respectively, vested.

4. INVESTMENT IN STORAGE FACILITIES AND INTANGIBLE ASSETS

The following summarizes our activity in storage facilities during the nine months ended September 30, 2016.

(dollars in thousands)
Cost:
Beginning balance	$	2,491,702
Acquisition of storage facilities		1,695,752
Improvements and equipment additions		38,282
Additions to consolidated subsidiary		2,164
Net increase in construction in progress		4,919
Dispositions		(30,130	)
Ending balance	$	4,202,689
Accumulated Depreciation:
Beginning balance	$	465,195
Additions during the period		59,587
Dispositions		(11,066	)
Ending balance	$	513,716

On July 15, 2016, the Company acquired all of the outstanding partnership interests in LifeStorage, LP, a Delaware limited partnership (“LS”). Pursuant to the acquisition, the Company acquired 83 self-storage properties throughout the country, including the following markets: Chicago, Illinois; Las Vegas, Nevada; Sacramento, California; Austin, Texas; and Los Angeles, California. Pursuant to the terms of the Agreement and Plan of Merger dated as of May 18, 2016 by and among LS, the Operating Partnership, Solar Lunar Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Operating Partnership, and Fortis Advisors LLC, a Delaware limited liability company, as Sellers’ Representative, the Company paid aggregate consideration of approximately $1.3 billion, of which $482 million was paid to discharge existing indebtedness of LS (including prepayment penalties and defeasance costs totaling $15.5 million). The merger was funded with the existing cash that was generated primarily from the proceeds from the Company’s May 2016 common stock offering and the 2026 Senior Notes offering, and draws on the Company’s line of credit totaling $482 million.

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Including the LS acquisition, the Company acquired 120 facilities during the nine months ended September 30, 2016. The acquisition of two stores that were acquired at certificate of occupancy were accounted for as asset acquisitions. The cost of these stores, including closing costs, was assigned to land, building, equipment and improvements components based upon their relative fair values. The assets and liabilities of the other 118 storage facilities acquired in 2016, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.” The purchase price of the 120 facilities acquired in 2016 has been preliminarily assigned as follows:

(dollars in thousands)							Consideration paid									Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition		Purchase Price		Cash Paid		Value of Operating Partnership Units Issued		Mortgage Assumed		Net Other Liabilities (Assets) Assumed			Land		Building, Equipment, and Improvements		In-Place Customers Leases		Trade Name		Closing Costs Expensed
FL		4		1/6/2016	$	20,350	$	20,246	$	—	$	—	$	104		$	6,646	$	13,339	$	365	$	—	$	389
CA		4		1/21/2016		78,750		78,562		—		—		188			27,876		49,860		1,014		—		349
NH		5		1/21/2016		54,225		53,941		—		—		284			12,902		40,428		895		—		596
MA		1		1/21/2016		11,375		11,350		—		—		25			4,874		6,335		166		—		69
TX		3		1/21/2016		42,050		41,894		—		—		156			23,487		18,000		563		—		263
AZ		1		2/1/2016		9,275		9,261		—		—		14			988		8,224		63		—		124
FL		1		2/12/2016		11,274		11,270		—		—		4			2,294		8,980		—		—		—
PA		1		2/17/2016		5,750		5,732		—		—		18			1,768		3,879		103		—		152
CO		1		2/29/2016		12,600		12,549		—		—		51			4,528		7,915		157		—		176
CA		3		3/16/2016		68,832		63,965		4,472		—		395			22,647		45,371		814		—		277
CA		1		3/17/2016		17,320		17,278		—		—		42			6,728		10,339		253		—		120
CA		1		4/11/2016		36,750		33,346		3,295		—		109			17,445		18,840		465		—		129
CT		2		4/14/2016		17,313		17,152		—		—		161			6,142		10,904		267		—		180
NY		2		4/26/2016		24,312		20,143		—		4,249		(80	)		5,710		18,201		401		—		348
FL		1		5/2/2016		8,100		4,006		—		4,036		58			3,018		4,922		160		—		149
TX		1		5/5/2016		10,800		10,708		—		—		92			2,333		8,302		165		—		121
NY		2		5/19/2016		8,400		8,366		—		—		34			714		7,521		165		—		188
CA, CO, FL, IL, MS, NV, TX, UT, WI		83		7/15/2016		1,299,989		1,335,332		—		—		(35,343	)		150,620		1,085,979		46,890		16,500		25,328
SC		1		7/29/2016		8,620		8,617		—		—		3			920		7,700		—		—		—
CO		1		8/4/2016		8,900		8,831		—		—		69			5,062		3,679		159		—		107
FL		1		9/27/2016		10,500		10,407		—		—		93			2,809		7,523		168		—		232
Total acquired 2016		120			$	1,765,485	$	1,782,956	$	7,767	$	8,285	$	(33,523	)	$	309,511	$	1,386,241	$	53,233	$	16,500	$	29,297

All of the properties acquired were purchased from unrelated third parties. The operating results of the facilities acquired have been included in the Company’s operations since the respective acquisition dates. The $1,783.0 million of cash paid for the properties acquired during 2016 includes payment for cash acquired of $40.8 million and $4.0 million of deposits that were paid in 2015 when certain of these properties originally went under contract. Both of these amounts are excluded from total cash payments for the acquisition of storage facilities in the consolidated statement of cash flows.

Non-cash investing activities during 2016 include the issuance of $7.8 million in Operating Partnership Units, the assumption of two mortgages with outstanding balances of $8.3 million, and the assumption of net other liabilities of $7.3 million.

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.

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In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
In-place customer leases	$	75,454		$	22,320
Accumulated amortization		(37,410	)		(21,017	)
Net carrying value at the end of period	$	38,044		$	1,303

Amortization expense related to in-place customer leases was $13.5 million and $0.7 million for the three months ended September 30, 2016 and 2015, respectively and was $16.5 million and $2.7 million for the nine months ended September 30, 2016 and 2015, respectively. The Company expects to record $29.9 million and $24.7 million of amortization expense for the years ended December 31, 2016 and 2017, respectively.

During the nine months ended September 30, 2016, the Company acquired 120 properties. The following pro forma information is based on the combined historical financial statements of the Company and the 120 properties acquired during the nine months ended September 30, 2016 as if the acquisitions had all occurred as of January 1, 2015.

(Dollars in thousands, except per share data)	Three Months Ended Sep. 30, 2016		Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Total revenues	$	131,421	$	120,905	$	383,991	$	342,973
Net income attributable to common shareholders	$	34,946	$	17,613	$	121,262	$	37,764
Earnings per common share
Basic	$	0.76	$	0.38	$	2.63	$	0.82
Diluted	$	0.75	$	0.38	$	2.62	$	0.81

The above pro forma information includes the results of eight stores acquired by LS in 2016 and 17 stores acquired by LS in in 2015. These stores therefore were not owned by LS for the entire pro forma periods and results prior to LS ownership are not included in the above pro forma information. The above pro forma information also includes increases in amortization of in-place customer leases totaling $13.3 million and $39.9 million for the three and nine month periods ending September 30, 2015, respectively. As noted above, in-place customer leases are amortized over their estimated future benefit period of 12 months. Material, nonrecurring pro forma adjustments directly attributable to the business combinations and included in the above pro forma financial information include reductions to interest expense related to acquisition bridge financing totaling $7.3 million for the nine months ended September 30, 2016 and reductions to acquisition costs totaling $25.2 million and $29.3 million for the three and nine months ended September 30, 2016, respectively.

The following table summarizes the revenues and earnings since the acquisition dates that are included in the Company’s consolidated statements of operations for the nine months ended September 30, 2016 related to the 120 properties acquired during the three and nine months ended September 30, 2016.

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(Dollars in thousands)	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Total revenues	$	26,990		$	38,711
Net loss attributable to common shareholders	$	(37,356	)	$	(39,954	)

The above net losses attributable to common shareholders were primarily due to amortization of in-place customer leases acquired and the acquisition costs incurred in connection with the 2016 acquisitions.

Property Dispositions

During 2016 the Company sold eight non-strategic properties with a carrying value of $18.8 million and received cash proceeds of $34.1 million, resulting in a $15.3 million gain on sale. During 2015 the Company sold three non-strategic properties purchased in 2014 and 2015 with a carrying value of $5.1 million and received cash proceeds of $4.6 million, resulting in a $0.5 million loss on sale. The following table summarizes the revenues and expenses up to the dates of sale of the 11 properties sold in 2016 and 2015 that are included in the Company’s consolidated statements of operations for 2016 and 2015.

(Dollars in thousands)	Three Months Ended September 30, 2016		Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Total operating revenues	$	—	$	1,249		$	2,324		$	3,508
Property operations and maintenance expense		—		(377	)		(614	)		(1,022	)
Real estate tax expense		—		(72	)		(98	)		(210	)
Depreciation and amortization expense		—		(197	)		(359	)		(547	)
Gain (loss) on sale of storage facilities		—		—			15,270			(7	)
	$	—	$	603		$	16,523		$	1,722

Change in Signage Useful Life Estimates

The change in name of the Company’s storage facilities from Uncle Bob’s Self Storage ^® to Life Storage ^® as discussed in Note 2 will require replacement of signage at all existing storage facilities which are currently included in investment in storage facilities, net on the consolidated balance sheets. The replacement of this signage is being completed at various times based on market and is expected to be completed in the first half of 2017. The Company has reassessed the estimated useful lives of the existing signage which resulted in an increase in depreciation expense of approximately $4 million in the third quarter of 2016 as depreciation was accelerated over the new useful lives. The Company estimates that this change will result in additional increases in depreciation expense of approximately $4 million in the fourth quarter of 2016 and approximately $1 million in 2017 as a result of the replacement of this existing Uncle Bob’s Self Storage ^® signage.

The accelerated depreciation reduced basic earnings per share/unit by approximately $0.10 and $0.11 for the three and nine months ended September 30, 2016, respectively, and reduced diluted earnings per share/unit by approximately $0.10 for the three and nine months ended September 30, 2016.

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5. UNSECURED LINE OF CREDIT AND TERM NOTES

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
Revolving line of credit borrowings	$	240,000		$	79,000
Term note due April 26, 2016		—			150,000
Term note due June 4, 2020		325,000			325,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			—
Term note due July 21, 2028		200,000			—
Total term note principal balance outstanding		1,400,000			750,000
Less: unamortized debt issuance costs		(9,646	)		(3,350	)
Less: unamortized senior term note discount		(3,235	)		—
Term notes payable	$	1,387,119		$	746,650

In January 2016, the Company exercised the expansion feature on its existing amended unsecured credit agreement and increased the revolving credit limit from $300 million to $500 million. The interest rate on the revolving credit facility bears interest at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.10%), and requires an annual 0.15% facility fee. The amended agreement also reduced the interest rate on the $325 million unsecured term note issued under this credit agreement maturing June 4, 2020, with the term note bearing interest at LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.15%). The interest rate at September 30, 2016 on the Company’s line of credit was approximately 1.62% (1.72% at December 31, 2015). At September 30, 2016, there was $260 million available on the unsecured line of credit. The revolving line of credit has a maturity date of December 10, 2019.

On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%. The proceeds from this term note were used to repay a portion of the then outstanding balance on the Company’s line of credit.

On April 8, 2014, the Company entered into a $175 million term note maturing April 8, 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded. The proceeds from this term note were used to repay the $115 million outstanding on the Company’s line of credit at April 8, 2014, with the excess proceeds used for acquisitions.

In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded. The proceeds from this term note were used to fund acquisitions and investments in unconsolidated joint ventures.

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The Company has maintained a $150 million unsecured term note maturing April 26, 2016 bearing interest at 6.38%. The Company used a draw on the line of credit to pay off the balance of this note on April 26, 2016.

The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At September 30, 2016, the Company was in compliance with its debt covenants.

We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at September 30, 2016 the entire availability on the line of credit could be drawn without violating our debt covenants.

On May 17, 2016, the Company entered into two senior unsecured acquisition bridge facilities (the “Bridge Facilities”) totaling $1,675 million with the Company’s third-party advisors to the LS acquisition (see Note 4). In consideration for the bridge financing commitments, the Company paid fees totaling $7.3 million which are included as interest expense – acquisition bridge financing commitment fee in the consolidated statements of operations for the nine month period ending September 30, 2016. The Bridge Facilities commitments were terminated on June 29, 2016.

On June 20, 2016, the Operating Partnership issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a 0.553% discount to par value. Interest on the 2026 Senior Notes is payable semi-annually in arrears on January 1 and July 1, beginning on January 1, 2017. The 2026 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $3.3 million and underwriting discount and other offering expenses of $5.5 million, totaled $591.2 million. The indenture under which the 2026 Senior Notes were issued restricts the ability of the Company and its subsidiaries to incur debt unless the Company and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 on all outstanding debt, after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Company and its subsidiaries to incur secured debt unless the Company and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Company and its consolidated subsidiaries. As of September 30, 2016, the Company was in compliance with all of the financial covenants under the 2026 Senior Notes.

During April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the requirements for the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-03 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years, with retrospective application required. Consistent with the guidance in ASU No. 2015-03 there are $3.4 million of debt issuance costs that have been presented as a reduction of term notes in our accompanying consolidated balance sheets at December 31, 2015 that were previously classified in other assets prior to the adoption of ASU No. 2015-03. The implementation of this accounting standards update had no effect on our results of operations or cash flows.

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In August 2015, the FASB issued Accounting Standards Update 2015-15, “Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. ASU No. 2015-15 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years. The implementation of this update did not result in any changes to our consolidated financial statements.

The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control. At this time no change in control is planned or anticipated.

6. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at September 30, 2016 and December 31, 2015 consist of the following:

(dollars in thousands)	September 30, 2016		December 31, 2015
4.065% mortgage note due April 1, 2023, secured by one self-storage facility with an aggregate net book value of $7.6 million, principal and interest paid monthly (effective interest rate 4.26%)	$	4,229	$	—
5.26% mortgage note due November 1, 2023, secured by one self-storage facility with an aggregate net book value of $8.2 million, principal and interest paid monthly (effective interest rate 5.52%)		4,018		—
5.99% mortgage note due May 1, 2026, secured by one self-storage facility with an aggregate net book value of $4.3 million, principal and interest paid monthly (effective interest rate 6.25%)		1,887		1,993
Total mortgages payable	$	10,134	$	1,993

The table below summarizes the Company’s debt obligations and interest rate derivatives at September 30, 2016. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 8. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

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	Expected Maturity Date Including Discount
(dollars in thousands)	2016		2017		2018		2019		2020		Thereafter		Total		Fair Value
Line of credit - variable rate LIBOR + 1.10% (1.62% at September 30, 2016)		—		—		—	$	240,000		—		—	$	240,000	$	240,000
Notes Payable:
Term note - variable rate LIBOR+1.15% (1.68% at September 30, 2016)		—		—		—		—	$	325,000		—	$	325,000	$	325,000
Term note - fixed rate 5.54%		—		—		—		—		—	$	100,000	$	100,000	$	113,250
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	192,387
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	616,281
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	204,294
Mortgage note - fixed rate 4.065%	$	22	$	88	$	92	$	96	$	99	$	3,832	$	4,229	$	4,205
Mortgage note - fixed rate 5.26%	$	15	$	63	$	67	$	71	$	74	$	3,728	$	4,018	$	4,276
Mortgage note - fixed rate 5.99%	$	35	$	151	$	160	$	170	$	181	$	1,190	$	1,887	$	2,031
Interest rate derivatives - liability		—		—		—		—		—		—		—	$	19,248

7. DERIVATIVE FINANCIAL INSTRUMENTS

Interest rate swaps are used to adjust the proportion of total debt that is subject to variable interest rates. The interest rate swaps require the Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and to receive in return an amount equal to a variable rate of interest times the same notional amount. The notional amounts are not exchanged. Forward starting interest rate swaps are also used by the Company to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.

The interest rate swaps qualify and are designated as hedges of the amount of future cash flows related to interest payments on variable rate debt. Therefore, the interest rate swaps are recorded in the consolidated balance sheet at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive Loss (“AOCL”). These deferred gains and losses are recognized in interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was de minimis for the three and nine months ended September 30, 2016, and 2015.

The Company has interest rate swap agreements in effect at September 30, 2016 as detailed below to effectively convert a total of $325 million of variable-rate debt to fixed-rate debt.

Notional Amount	Effective Date		Expiration Date		Fixed Rate Paid			Floating Rate Received
$125 Million		9/1/2011		8/1/18		2.3700	%		1 month LIBOR
$100 Million		12/30/11		12/29/17		1.6125	%		1 month LIBOR
$100 Million		9/4/13		9/4/18		1.3710	%		1 month LIBOR
$100 Million		12/29/17		11/29/19		3.9680	%		1 month LIBOR
$125 Million		8/1/18		6/1/20		4.1930	%		1 month LIBOR

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In the fourth quarter of 2015, the Company entered into forward starting interest rate swap agreements with a total notional value of $50 million. In the first quarter of 2016, the Company entered into additional forward starting interest rate swap agreements with a total notional value of $100 million. These forward starting interest rate swap agreements were entered into to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of fixed rate long-term debt. In conjunction with the issuance of the $600 million 2026 Senior Notes (see Note 5), the Company settled the forward starting swap agreements for a loss of approximately $9.2 million. The loss was recorded as accumulated other comprehensive loss and is being amortized as additional interest expense over the ten-year term of the $600 million 2026 Senior Notes. Consistent with the Company’s accounting policy, the cash outflow related to the settlement of the forward starting swap agreements is reflected as a financing activity in the consolidated statements of cash flows.

The interest rate swap agreements are the only derivative instruments, as defined by FASB ASC Topic 815 “Derivatives and Hedging”, held by the Company. During the three months ended September 30, 2016 and 2015, the net reclassification from AOCL to interest expense was $1.2 million and $1.2 million, respectively, based on payments made under the swap agreements. During the nine months ended September 30, 2016 and 2015, the net reclassification from AOCL to interest expense was $3.5 million and $3.9 million, respectively, based on payments made under the swap agreements. Reclassification of amounts included in AOCL at September 30, 2016 to interest expense will be approximately $4.3 million for the 12 months ended September 30, 2017. Payments made under the interest rate swap agreements will be reclassified to interest expense as settlements occur or as payments under the 2026 Senior Notes are made. The fair value of the swap agreements, including accrued interest, was a liability of $19.2 million at September 30, 2016, and an asset of $550,000 and a liability of $15.3 million at December 31, 2015.

The Company’s agreements with its interest rate swap counterparties contain provisions pursuant to which the Company could be declared in default of its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. The interest rate swap agreements also incorporate other loan covenants of the Company. Failure to comply with the loan covenant provisions would result in the Company being in default on the interest rate swap agreements. As of September 30, 2016, the Company had not posted any collateral related to the interest rate swap agreements. If the Company had breached any of these provisions as of September 30, 2016, it could have been required to settle its obligations under the agreements at their net termination cost of $19.2 million.

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The changes in AOCL for the three and nine months ended September 30, 2016 and September 30, 2015 are summarized as follows:

(dollars in thousands)	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Accumulated other comprehensive loss beginning of period	$	(30,863	)	$	(14,571	)	$	(14,415	)	$	(13,005	)
Realized loss reclassified from accumulated other comprehensive loss to interest expense		1,398			1,226			3,755			3,944
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps		1,533			(5,763	)		(17,272	)		(10,047	)
Loss included in other comprehensive loss		2,931			(4,537	)		(13,517	)		(6,103	)
Accumulated other comprehensive loss end of period	$	(27,932	)	$	(19,108	)	$	(27,932	)	$	(19,108	)

8. FAIR VALUE MEASUREMENTS

The Company applies the provisions of ASC Topic 820 “Fair Value Measurements and Disclosures” in determining the fair value of its financial and nonfinancial assets and liabilities. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Refer to Note 6 for presentation of the fair values of debt obligations which are disclosed at fair value on a recurring basis.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands):

	Asset (Liability)			Level 1		Level 2			Level 3
September 30, 2016
Interest rate swaps	$	(19,248	)		—	$	(19,248	)		—
December 31, 2015
Interest rate swaps	$	550			—	$	550			—
Interest rate swaps	$	(15,343	)		—	$	(15,343	)		—

Interest rate swaps are over the counter securities with no quoted readily available Level 1 inputs, and therefore are measured at fair value using inputs that are directly observable in active markets and are classified within Level 2 of the valuation hierarchy, using the income approach.

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During 2016, assets and liabilities measured at fair value on a non-recurring basis included the assets acquired and liabilities assumed in connection with the acquisition of 120 storage facilities (see note 4), including the LS acquisition. To determine the fair value of land, the Company used prices per acre derived from observed transactions involving comparable land in similar locations, which is considered a Level 2 input. To determine the fair value of buildings, equipment and improvements, the Company used current replacement cost based on information derived from construction industry data by geographic region which is considered a Level 2 input. The replacement cost is then adjusted for the age, condition, and economic obsolescence associated with these assets, which are considered Level 3 inputs. The fair value of in-place customer leases is based on the rent lost due to the amount of time required to replace existing customers and the cost to replace in-place tenants which are based on the Company’s historical experience with turnover at its facilities and on market rental rates and estimated downtime required to replace the in-place leases, all of which are Level 3 inputs. The average downtime is based upon estimated demand information including the number of potential customers exhibited in historical property interest data. The fair value of trade names is based on royalty payments avoided had the trade name been owned by a third party which is determined using market royalty rates. Other assets acquired and liabilities assumed in the acquisitions consist primarily of prepaid or accrued real estate taxes and deferred revenues from advance monthly rentals paid by customers. The fair values of these assets and liabilities are based on their carrying values as they typically turn over within one year from the acquisition date and these are Level 3 inputs.

9. INVESTMENT IN JOINT VENTURES

The Company has a 20% ownership interest in Sovran HHF Storage Holdings LLC (“Sovran HHF”), a joint venture that was formed in May 2008 to acquire self-storage properties that are managed by the Company. The carrying value of the Company’s investment at September 30, 2016 and December 31, 2015 was $43.8 million and $44.6 million, respectively. Twenty-five properties were acquired by Sovran HHF in 2008 for approximately $171.5 million and 14 additional properties were acquired by Sovran HHF in 2014 for $187.2 million. In 2008, the Company contributed $18.6 million to the joint venture as its share of capital required to fund the acquisitions. In 2012 the Company contributed an additional $1.2 million to the joint venture. In 2013 the Company received a return of capital distribution of $3.4 million as part of the refinancing of Sovran HHF. In 2014 the Company contributed an additional $28.6 million in cash to the joint venture as its share of capital required to fund acquisitions. In 2015 the Company contributed an additional $0.4 million in cash to the joint venture as its share of capital required to fund certain capital expenditures and property taxes related to 2014 acquisitions. As of September 30, 2016, 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, which is assessed for other-than-temporary impairment on a periodic basis. No other-than-temporary impairments have been recorded on this investment.

The Company has a 15% ownership interest in Sovran HHF Storage Holdings II LLC (“Sovran HHF II”), a joint venture that was formed in 2011 to acquire self-storage properties that are managed by the Company. The carrying value of the Company’s investment at September 30, 2016 and December 31, 2015 was $13.6 million and $13.9 million, respectively. Twenty properties were acquired by Sovran HHF II during 2011 for approximately $166.1 million. During 2011, the Company contributed $12.8 million to the joint venture as its share of capital required to fund the acquisitions. Ten additional properties were acquired by Sovran HHF II during 2012 for approximately $29 million. During 2012, the Company contributed $2.4 million to the joint venture as its share of capital required to fund the acquisitions. In 2015 the Company contributed an additional $1.7 million in cash to the joint venture as its share of capital required to fund the payoff of a mortgage note. The carrying value of this investment is assessed for other-than-temporary impairment on a periodic basis and no such impairments have been recorded on this investment.

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As manager of Sovran HHF and Sovran HHF II, the Company earns a management and call center fee of 7% of gross revenues which totaled $1.3 million and $1.3 million for the three months ended September 30, 2016 and 2015, respectively. The management and call center fees earned by the Company for the nine months ended September 30, 2016 and 2015, totaled $3.8 million and $3.6 million, respectively.

The Company’s share of Sovran HHF and Sovran HHF II’s income for the three months ended September 30, 2016 and 2015 was $0.8 million and $0.9 million, respectively. The Company’s share of Sovran HHF and Sovran HHF II’s income for the nine months ended September 30, 2016 and 2015 was $2.6 million and $2.3 million, respectively.

The Company has a 49% ownership interest in Iskalo Office Holdings, LLC, which owns the building that houses the Company’s headquarters and other tenants. The carrying value of the Company’s investment is a liability of $0.4 million and $0.5 million at September 30, 2016 and December 31, 2015, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. For the three months ended September 30, 2016, and 2015, the Company’s share of Iskalo Office Holdings, LLC’s income was $45,000 and $58,000, respectively. For the nine months ended September 30, 2016, and 2015, the Company’s share of Iskalo Office Holdings, LLC’s income was $158,000 and $162,000, respectively. The Company paid rent to Iskalo Office Holdings, LLC of $0.9 million and $0.8 million during the nine months ended September 30, 2016 and 2015, respectively.

The Company holds an 85% equity interest in Urban Box Coralway Storage, LLC (“Urban Box”), a joint venture with an unrelated third party. Urban Box was formed in 2015 and is currently developing a self-storage property in Florida. During 2015, the Company contributed $4.0 million to Urban Box as its share of capital to develop the property, which primarily consists of the acquisition of land in 2015. Urban Box has entered into a non-recourse mortgage loan in order to finance the future development costs. The Company and the other joint venture member have participation rights which require the agreement of both members in order to implement the activities of Urban Box which are most significant to its economic performance. Accordingly, the interest is recorded using the equity method.

The Company will perform property management services for Urban Box in exchange for a management fee based on 6% of property revenues. There were no management fees in 2016 or 2015.

The Company holds a 5% equity interest in SNL/Orix 1200 McDonald Ave., LLC (“McDonald”), a joint venture with an unrelated third party. The joint venture for McDonald was executed in 2016 and is currently developing a self-storage property in New York. During 2016, the Company contributed $0.4 million of common capital and $2.3 million of preferred capital to McDonald as its share of capital to develop the property. McDonald entered into a non-recourse mortgage loan in order to finance the future development costs. In accordance with the terms of the McDonald joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the interest is recorded using the equity method.

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The Company will perform property management services for McDonald in exchange for a management fee based on property revenues. There were no management fees in 2016 or 2015.

The Company holds a 5% equity interest in SNL Orix Merrick, LLC (“Merrick”), a joint venture with an unrelated third party. The joint venture for Merrick was executed in 2016 and is currently developing a self-storage property in New York. During 2016, the Company contributed $0.4 million of common capital and $2.1 million of preferred capital to Merrick as its share of capital to develop the property. Merrick will enter into a non-recourse mortgage loan in order to finance the future development costs. In accordance with the terms of the Merrick joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the interest is recorded using the equity method.

The Company will perform property management services for Merrick in exchange for a management fee based on property revenues. There were no management fees in 2016 or 2015.

A summary of the unconsolidated joint ventures’ financial statements as of and for the nine months ended September 30, 2016 is as follows:

(dollars in thousands)
Balance Sheet Data:
Investment in storage facilities, net	$	534,541
Investment in office building, net		5,000
Other assets		17,928
Total Assets	$	557,469
Due to the Company	$	767
Mortgages payable		222,434
Other liabilities		9,177
Total Liabilities		232,378
Unaffiliated partners’ equity		260,581
Company equity		64,510
Total Partners’ Equity		325,091
Total Liabilities and Partners’ Equity	$	557,469
Income Statement Data:
Total revenues	$	55,533
Property operating expenses		(17,922	)
Administrative, management and call center fees		(4,046	)
Depreciation and amortization of customer list		(10,179	)
Amortization of financing fees		(265	)
Income tax expense		(174	)
Interest expense		(7,730	)
Net income	$	15,217

The Company does not guarantee the debt of Sovran HHF, Sovran HHF II, Iskalo Office Holdings, LLC, Urban Box, McDonald, or Merrick.

We do not expect to have material future cash outlays relating to these joint ventures outside our share of capital for future acquisitions of properties.

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10. INCOME TAXES

The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes its taxable income to its shareholders and complies with certain other requirements.

The Company has elected to treat one of its subsidiaries as a taxable REIT subsidiary. In general, the Company’s taxable REIT subsidiary may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

For the three months ended September 30, 2016 and 2015, the Company recorded federal and state income tax expense of $0.2 million and $0.6 million, respectively. For the nine months ended September 30, 2016 and 2015, the Company recorded federal and state income tax expense of $0.9 million and $1.7 million, respectively. At September 30, 2016 and 2015, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of September 30, 2016 and 2015, the Company had no interest or penalties related to uncertain tax positions. Net income taxes payable and the deferred tax liability of our taxable REIT subsidiary are classified within accounts payable and accrued liabilities in the consolidated balance sheets. As of September 30, 2016, the Company’s taxable REIT subsidiary has a deferred tax liability of $1.3 million. The tax years 2013-2015 remain open to examination by the major taxing jurisdictions to which the Company is subject.

11. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance ASC Topic 260, “Earnings Per Share.” Effective January 1, 2009, FASB ASC Topic 260 was updated for the issuance of FASB Staff Position (“FSP”) EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities”, or FSP EITF 03-6-1, with transition guidance included in FASB ASC Topic 260-10-65-2. Under FSP EITF 03-6-1, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

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The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

(Loss) Earnings Per Share

(in thousands except per share data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common shareholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per share – weighted average shares		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per share – adjusted weighted average shares and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

(Loss) Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common unitholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per unit – weighted average units		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per unit – adjusted weighted average units and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

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Not included in the effect of dilutive securities above for both earnings per share and earnings per unit are 95,706 stock options and 270,298 unvested restricted shares for the three months ended September 30, 2016, and 11,000 stock options and 139,518 unvested restricted shares for the three months ended September 30, 2015, because their effect would be antidilutive. Not included in the effect of dilutive securities above are 110,757 unvested restricted shares for the nine months ended September 30, 2016, and 7,333 stock options and 157,383 unvested restricted shares for the nine months ended September 30, 2015, because their effect would be antidilutive.

12. SHAREHOLDERS’ EQUITY

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total shareholders’ equity	$	1,202,315
Net proceeds from the issuance of common stock		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units		2,907
Net income attributable to common shareholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Dividends		(112,688	)
Ending balance of total shareholders’ equity	$	2,101,410

On January 20, 2016, the Company completed the public offering of 2,645,000 shares of its common stock at $105.75 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $269.7 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness then outstanding on the Company’s unsecured line of credit.

On May 25, 2016, the Company completed the public offering of 6,900,000 shares of its common stock at $100.00 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $665.4 million. The Company initially used the net proceeds from the offering to repay the indebtedness then outstanding on the Company’s unsecured line of credit. The proceeds from this offering and the proceeds from the 2026 Senior Notes (see Note 5) were used, along with draws on the Company’s revolving line of credit, to fund the purchase of LS on July 15, 2016 (see Note 4).

On May 12, 2014, the Company entered into a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC (“Wells Fargo”), Jefferies LLC (“Jefferies”), SunTrust Robinson Humphrey, Inc. (“SunTrust”), Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC (“BB&T”), pursuant to which the Company may sell from time to time up to $225 million in aggregate offering price of shares of the Company’s common stock. Actual sales under the Equity Program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell, and issue shares of common stock under the Equity Program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the Equity Program.

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During the nine months ended September 30, 2016, the Company did not issue any shares of common stock under the Equity Program. As of September 30, 2016, the Company had $59.3 million available for issuance under the Equity Program.

During the nine months ended September 30, 2015, the Company issued 499,911 shares of common stock under the Equity Program at a weighted average issue price of $94.29 per share, generating net proceeds of $46.5 million after deducting $0.6 million of sales commissions paid to Jefferies and Piper.

In 2013, the Company implemented a Dividend Reinvestment Plan. The Company issued 94,050 and 105,876 shares under the plan during the nine months ended September 30, 2016 and September 30, 2015, respectively.

13. PARTNERS’ CAPITAL

The following is a reconciliation of the changes in total partners’ capital for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total controlling partners’ capital	$	1,202,315
Net proceeds from the issuance of partnership units		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on limited partners’ redeemable capital interests		2,907
Net income attributable to common unitholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Distributions		(112,688	)
Ending balance of total controlling partners’ capital	$	2,101,410

14. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the new guidance recognized at the date of initial application. The Company has not yet completed its assessment of the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements.

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In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 by the Company did not have a material impact on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This ASU is effective for annual reporting periods beginning after December 15, 2015 including interim periods within that reporting period. ASU 2015-02 amends the current consolidation model specifically as it relates to variable interest entities (“VIE’s”) and provides reporting entities with a revised consolidation analysis procedure. The adoption of ASU 2015-02 by the Company did not have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-16 by the Company did not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. ASU 2016-02 is effective for fiscal years and interim periods, within those years, beginning after December 15, 2018. Early adoption is permitted for all entities. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements.

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In March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”. ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The new standard will be effective for us on January 1, 2017. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-06 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The new standard will be effective for us on January 1, 2017. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-07 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-09 will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” in an effort to reduce existing diversity in practice related to the classification of certain cash receipts and cash payments on the statements of cash flows. The guidance addresses the classification of cash flows related to, among other things, distributions received from equity method investees. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements.

15. COMMITMENT AND CONTINGENCIES

At September 30, 2016, the Company was under contract to acquire seven self-storage facilities for an aggregate purchase price of approximately $85.6 million. The purchase of these facilities is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.

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 seeks to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of the New Jersey Truth in Customer Contract, Warranty and Notice Act, the New Jersey Consumer Fraud Act and the New Jersey Insurance Producer Licensing Act. 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 Company brought a motion to partially dismiss the complaint for failure to state a claim, and on July 16, 2015, the Company’s motion was granted in part and denied in part. On October 20, 2016, the complaint was amended to add a claim that the Company’s insurance program violates New Jersey consumer protection laws. The Company intends to vigorously defend the action, and the possibility of any adverse outcome cannot be determined at this time.

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16. SUBSEQUENT EVENTS

On October 4, 2016, the Company declared a quarterly dividend of $0.95 per common share. The dividend was paid on October 26, 2016 to shareholders of record on October 14, 2016. The total dividend paid amounted to $43.9 million.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of the Company’s consolidated financial condition and results of operations should be read in conjunction with the unaudited financial statements and notes thereto included elsewhere in this report.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

When used in this discussion and elsewhere in this document, the words “intends,” “believes,” “expects,” “anticipates,” and similar expressions are intended to identify “forward-looking statements” within the meaning of that term in Section 27A of the Securities Act of 1933 and in Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the effect of competition from new self-storage facilities, which would cause rents and occupancy rates to decline; the Company’s ability to evaluate, finance and integrate acquired businesses into the Company’s existing business and operations; the Company’s ability to effectively compete in the industry in which it does business; the Company’s existing indebtedness may mature in an unfavorable credit environment, preventing refinancing or forcing refinancing of the indebtedness on terms that are not as favorable as the existing terms; interest rates may fluctuate, impacting costs associated with the Company’s outstanding floating rate debt; the Company’s ability to comply with debt covenants; any future ratings on the Company’s debt instruments; regional concentration of the Company’s business may subject it to economic downturns in the states of Florida and Texas; the Company’s reliance on its call center; the Company’s cash flow may be insufficient to meet required payments of operating expenses, principal, interest and dividends; and tax law changes that may change the taxability of future income.

RESULTS OF OPERATIONS

FOR THE PERIOD JULY 1, 2016 THROUGH SEPTEMBER 30, 2016, COMPARED TO THE PERIOD JULY 1, 2015 THROUGH SEPTEMBER 30, 2015

We recorded rental revenues of $118.3 million for the three months ended September 30, 2016, an increase of $30.2 million or 34.4% when compared to rental revenues of $88.1 million for the same period in 2015. Of the increase in rental revenue, $3.6 million resulted from a 4.3% increase in rental revenues at the 417 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2015, excluding the properties we sold in 2015 and 2016, and excluding stores not yet stabilized and three stores significantly impacted by flooding in 2016). The increase in same store rental revenues was a result of a 30 basis point increase in average occupancy and a 3.7% increase in rental income per square foot. The remaining increase in rental revenue of $26.6 million resulted from the revenues from the acquisition of properties completed since January 1, 2015 and stores not yet stabilized. Other operating income, which includes merchandise sales, insurance administrative fees, truck rentals, management fees and acquisition fees, increased by $2.1 million for the three months ended September 30, 2016 compared to the same period in 2015 primarily as a result of increased administrative fees earned on customer insurance.

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Property operations and maintenance expenses increased $7.4 million or 35.4% in the three months ended September 30, 2016 compared to the same period in 2015. The 417 core properties considered in the same store pool experienced a $0.2 million or 0.8% increase in operating expenses as a result of higher payroll and benefit costs and increased repairs and maintenance expense. In addition to the same store operating expense increase, operating expenses increased $7.2 million from the acquisition of properties completed since January 1, 2015 and stores not yet stabilized. Real estate tax expense increased $3.9 million as a result of a 3.8% increase in property taxes on the 417 same store pool and the inclusion of taxes on the properties acquired in 2016 and 2015.

Net operating income increased $21.1 million or 32.3% as a result of a 5.8% increase in our same store net operating income and the acquisitions completed since January 1, 2015.

Net operating income or “NOI” is a non-GAAP (generally accepted accounting principles) financial measure that we define as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net (loss) income: interest expense, impairment and casualty losses, operating lease expense, depreciation and amortization expense, acquisition related costs, general and administrative expense, and deducting from net (loss) income: income from discontinued operations, interest income, gain on sale of real estate, and equity in income of joint ventures. We believe that NOI is a meaningful measure to investors in evaluating our operating performance because we utilize NOI in making decisions with respect to capital allocations, in determining current property values, and in comparing period-to-period and market-to-market property operating results. Additionally, NOI is widely used in the real estate industry and the self-storage industry to measure the performance and value of real estate assets without regard to various items included in net income that do not relate to or are not indicative of operating performance, such as depreciation and amortization, which can vary depending on accounting methods and the book value of assets. NOI should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP, such as total revenues, operating income and net (loss) income. There are material limitations to using a measure such as NOI, including the difficulty associated with comparing results among more than one company and the inability to analyze certain significant items, including depreciation and interest expense, that directly affect our net (loss) income. We compensate for these limitations by considering the economic effect of the excluded expense items independently as well as in connection with our analysis of net (loss) income. The following table reconciles NOI generated by our self-storage facilities to our net (loss) income presented in the consolidated financial statements for the three months ended September 30, 2016 and 2015.

	Three Months ended September 30,
(dollars in thousands)	2016			2015
Net operating income
Same store	$	63,461		$	59,974
Other stores and management fee income		22,856			5,253
Total net operating income		86,317			65,227
General and administrative		(10,909	)		(9,367	)
Acquisition related costs		(25,220	)		(1,046	)
Depreciation and amortization		(41,405	)		(14,671	)
Interest expense		(14,647	)		(9,419	)
Interest income		13			1
Equity in income of joint ventures		882			936
Net (loss) income	$	(4,969	)	$	31,661

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Our 2016 same store results consist of only those properties that were included in our consolidated results since January 1, 2015, excluding three stores purchased prior to January 1, 2015 that have not yet stabilized and three stores significantly impacted by flooding in 2016. The following table sets forth operating data for our 417 same store properties. These results provide information relating to property operating changes without the effects of acquisitions.

Same Store Summary

	Three Months ended September 30,				Percentage
(dollars in thousands)	2016		2015		Change
Same store rental income	$	87,271	$	83,702		4.3	%
Same store other operating income		4,862		4,448		9.3	%
Total same store operating income		92,133		88,150		4.5	%
Payroll and benefits		7,391		7,290		1.4	%
Real estate taxes		9,102		8,769		3.8	%
Utilities		3,315		3,378		-1.9	%
Repairs and maintenance		3,198		3,008		6.3	%
Office and other operating expenses		2,983		2,880		3.6	%
Insurance		990		1,103		-10.2	%
Advertising and yellow pages		266		332		-19.9	%
Internet marketing,		1,427		1,416		0.8	%
Total same store operating expenses		28,672		28,176		1.8	%
Same store net operating income	$	63,461	$	59,974		5.8	%
					Change
Quarterly same store move ins		42,720		42,238		482
Quarterly same store move outs		44,598		46,977		(2,379	)

We believe the increase in same store move ins was a byproduct of additional move in incentives. We believe the decrease in same store move outs was a result of customers increasing their length of stay.

General and administrative expenses for the three months ended September 30, 2016 increased $1.5 million or 16.5% compared with the three months ended September 30, 2015. The key drivers of the increase were a $0.6 million increase in professional fees and a $0.3 million increase in salaries and benefits.

Acquisition related costs were $25.2 million in the three months ended September 30, 2016 as a result of the acquisition of 86 stores during that period. This amount includes $15.5 million of prepayment penalties and defeasance costs to retire LS’s debt upon closing of the acquisition of LS. Acquisition related costs for the three months ended September 30, 2015 were $1.0 million for the 11 stores acquired during that period.

Depreciation and amortization expense increased to $41.4 million in the three months ended September 30, 2016 from $14.7 million in the same period of 2015, primarily as a result of depreciation on the properties acquired in 2015 and 2016 and accelerated depreciation on existing signage that is being replaced as a result of the change in name of the Company’s storage facilities from Uncle Bob’s Self Storage ^® to Life Storage ^®.

Total interest expense increased $5.2 million in the three months ended September 30, 2016 as compared to the same period in 2015 primarily as a result of the $600 million 3.5% senior notes issued in June 2016 and the $200 million 3.67% term loan entered into in July 2016, partially offset by reduced interest costs as a result of the payoff of the $150 million 6.38% term loan in April 2016 with a draw on our line of credit which carries a lower interest rate.

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FOR THE PERIOD JANUARY 1, 2016 THROUGH SEPTEMBER 30, 2016, COMPARED TO THE PERIOD JANUARY 1, 2015 THROUGH SEPTEMBER 30, 2015

We recorded rental revenues of $308.7 million for the nine months ended September 30, 2016, an increase of $58.3 million or 23.2% when compared to rental revenues of $250.4 million for the same period in 2015. Of the increase in rental revenue, $13.1 million resulted from a 5.4% increase in rental revenues at the 417 core properties considered in same store sales (those properties included in the consolidated results of operations since January 1, 2015, excluding the properties we sold in 2015 and 2016, and excluding stores not yet stabilized and three stores significantly impacted by flooding in 2016). The increase in same store rental revenues was a result of a 50 basis point increase in average occupancy and a 4.8% increase in rental income per square foot. The remaining increase in rental revenue of $45.2 million resulted from the revenues from the acquisition of properties completed since January 1, 2015 and stores not yet stabilized. Other operating income, which includes merchandise sales, insurance administrative fees, truck rentals, management fees and acquisition fees, increased by $4.2 million for the nine months ended September 30, 2016 compared to the same period in 2015 primarily as a result of increased administrative fees earned on customer insurance and as a result of the impact of properties acquired in 2015 and 2016.

Property operations and maintenance expenses increased $13.4 million or 22.0% in the nine months ended September 30, 2016 compared to the same period in 2015. The 417 core properties considered in the same store pool experienced a $0.2 million or 0.3% increase in operating expenses as a result of higher payroll and benefit costs, increased bank charges and increased internet marketing costs, partially offset by decreases in utilities, insurance and snow removal costs. In addition to the same store operating expense increase, operating expenses increased $13.2 million from the acquisition of properties completed since January 1, 2015 and stores not yet stabilized. Real estate tax expense increased $7.4 million as a result of a 5.3% increase in property taxes on the 417 same store pool and the inclusion of taxes on the properties acquired in 2016 and 2015.

Net operating income increased $41.6 million or 22.7% as a result of a 7.4% increase in our same store net operating income and the acquisitions completed since January 1, 2015.

The following table reconciles NOI generated by our self-storage facilities to our net income presented in the consolidated financial statements for the nine months ended September 30, 2016 and 2015.

	Nine Months ended September 30,
(dollars in thousands)	2016			2015
Net operating income
Same store	$	182,979		$	170,302
Other stores and management fee income		41,884			12,949
Total net operating income		224,863			183,251
General and administrative		(31,486	)		(28,459	)
Acquisition related costs		(29,297	)		(2,415	)
Operating leases of storage facilities		—			(683	)
Depreciation and amortization		(76,082	)		(43,437	)
Interest expense		(39,353	)		(27,796	)
Interest income		56			4
Gain (loss) on sale of storage facilities		15,270			(7	)
Equity in income of joint ventures		2,795			2,436
Net income	$	66,766		$	82,894

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Our 2016 same store results consist of only those properties that were included in our consolidated results since January 1, 2015, excluding three stores purchased prior to January 1, 2015 that have not yet stabilized and three stores significantly impacted by flooding in 2016. The following table sets forth operating data for our 417 same store properties. These results provide information relating to property operating changes without the effects of acquisitions.

Same Store Summary

	Nine Months ended September 30,				Percentage
(dollars in thousands)	2016		2015		Change
Same store rental income	$	254,365	$	241,300		5.4	%
Same store other operating income		14,126		12,929		9.3	%
Total same store operating income		268,491		254,229		5.6	%
Payroll and benefits		22,136		21,502		2.9	%
Real estate taxes		27,692		26,307		5.3	%
Utilities		8,611		9,202		-6.4	%
Repairs and maintenance		9,627		9,899		-2.7	%
Office and other operating expenses		8,774		8,381		4.7	%
Insurance		3,045		3,308		-8.0	%
Advertising and yellow pages		845		1,034		-18.3	%
Internet marketing,		4,782		4,294		11.4	%
Total same store operating expenses		85,512		83,927		1.9	%
Same store net operating income	$	182,979	$	170,302		7.4	%
					Change
Year-to-date same store move ins		125,777		130,843		(5,066	)
Year-to-date same store move outs		119,797		123,916		(4,119	)

We believe the decrease in same store move ins was a byproduct of our increased occupancy, leaving fewer spaces to rent. We believe the decrease in same store move outs was a result of customers increasing their length of stay.

General and administrative expenses for the nine months ended September 30, 2016 increased $3.0 million or 10.6% compared with the nine months ended September 30, 2015. The key drivers of the increase were a $1.3 million increase in professional fees and a $0.9 million increase in salaries and benefits.

Acquisition related costs were $29.3 million in the nine months ended September 30, 2016 as a result of the acquisition of 120 stores during that period. This amount includes $15.5 million of prepayment penalties and defeasance costs to retire LS’s debt upon closing of the acquisition of LS. Acquisition related costs for the nine months ended September 30, 2015 were $2.4 million for the 19 stores acquired during that period.

The operating lease expense for storage facilities in 2015 relates to leases which commenced in November 2013 with respect to four self-storage facilities in New York (2) and Connecticut (2). We completed the purchase of these four facilities on February 2, 2015, which eliminated the lease payment at that time.

Depreciation and amortization expense increased to $76.1 million in the nine months ended September 30, 2016 from $43.4 million in the same period of 2015, primarily as a result of depreciation on the properties acquired in 2015 and 2016 and accelerated depreciation on existing signage that will be replaced as a result of the change in name of the Company’s storage facilities from Uncle Bob’s Self Storage ^® to Life Storage ^®.

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Total interest expense increased $11.6 million in the nine months ended September 30, 2016 as compared to the same period in 2015 as a result of a $7.3 million bridge loan commitment fee that was incurred related to the LS acquisition bid, coupled with an increase as a result of the $600 million 3.5% senior notes issued in June 2016 and the $200 million 3.67% term loan entered into in July 2016. The bridge loan was not drawn on by the Company and the related fees were recorded as interest expense.

During the nine months ended September 30, 2016 we sold eight storage facilities in Alabama (1), Georgia (1), Mississippi (1), Texas (1), and Virginia (4) for net proceeds of approximately $34.1 million, resulting in a $15.3 million gain on sale. During the nine months ended September 30, 2015 we sold one storage facility in Missouri for net proceeds of approximately $691,000, resulting in a loss on sale of $7,000.

FUNDS FROM OPERATIONS

We believe that Funds from Operations (“FFO”) provides relevant and meaningful information about our operating performance that is necessary, along with net (loss) earnings and cash flows, for an understanding of our operating results. FFO adds back historical cost depreciation, which assumes the value of real estate assets diminishes predictably in the future. In fact, real estate asset values increase or decrease with market conditions. Consequently, we believe FFO is a useful supplemental measure in evaluating our operating performance by disregarding (or adding back) historical cost depreciation.

FFO is defined by the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”) as net income available to common shareholders computed in accordance with generally accepted accounting principles (“GAAP”), excluding gains or losses on sales of properties, plus impairment of real estate assets, plus depreciation and amortization and after adjustments to record unconsolidated partnerships and joint ventures on the same basis. We believe that to further understand our performance FFO should be compared with our reported net (loss) income and cash flows in accordance with GAAP, as presented in our consolidated financial statements.

In October and November of 2011, NAREIT issued guidance for reporting FFO that reaffirmed NAREIT’s view that impairment write-downs of depreciable real estate should be excluded from the computation of FFO. This view is based on the fact that impairment write-downs are akin to and effectively reflect the early recognition of losses on prospective sales of depreciable property or represent adjustments of previously charged depreciation. Since depreciation of real estate and gains/losses from sales are excluded from FFO, it is NAREIT’s view that it is consistent and appropriate for write-downs of depreciable real estate to also be excluded. Our calculation of FFO excludes impairment write-downs of investments in storage facilities.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net (loss) income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity, or as an indicator of our ability to make cash distributions.

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Reconciliation of Net (Loss) Income to Funds From Operations (unaudited)

(in thousands)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015			Nine Months Ended Sep. 30, 2016			Nine Months Ended Sep. 30, 2015
Net (loss) income attributable to common shareholders	$	(4,738	)	$	31,504		$	67,058		$	82,487
Net (loss) income attributable to noncontrolling interest		(21	)		157			317			407
Depreciation of real estate and amortization of intangible assets		41,024			14,430			74,913			42,649
Depreciation and amortization from unconsolidated joint ventures		738			610			1,891			1,845
(Gain) loss on sale of storage facilities		—			—			(15,270	)		7
Funds from operations allocable to noncontrolling redeemable Operating Partnership Units		(164	)		(231	)		(593	)		(625	)
FFO available to common shareholders	$	36,839		$	46,470		$	128,316		$	126,770

LIQUIDITY AND CAPITAL RESOURCES

Our line of credit and term notes require us to meet certain financial covenants measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness, and limitations on dividend payouts. At September 30, 2016, the Company was in compliance with all debt covenants. In the event that the Company violates its debt covenants in the future, the amounts due under the agreements could be callable by the lenders and could adversely affect our credit rating requiring us to pay higher interest and other debt-related costs. We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at September 30, 2016, the entire availability under our line of credit could be drawn without violating our debt covenants.

Our ability to retain cash flow is limited because we operate as a REIT. In order to maintain our REIT status, a substantial portion of our operating cash flow must be used to pay dividends to our shareholders. We believe that our internally generated net cash provided by operating activities and the availability on our line of credit will be sufficient to fund ongoing operations, capital improvements, dividends and debt service requirements.

Cash flows from operating activities were $149.4 million and $138.1 million for the nine months ended September 30, 2016, and 2015, respectively. The increase in operating cash flows in the 2016 period compared to the 2015 period was primarily due to the increase in net income after adjusting for non-cash items.

Cash used in investing activities was $1,755.0 million and $298.8 million for the nine months ended September 30, 2016 and 2015, respectively. The increase in cash used in investing activities in the 2016 period compared to the 2015 period was primarily due to the increased volume of acquisitions in 2016 as compared to the same period in 2015.

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Cash provided by financing activities was $1,614.7 million for the nine months ended September 30, 2016 compared to $158.3 million for the nine months ended September 30, 2015. On January 20, 2016, the Company completed the public offering of 2,645,000 shares of its common stock at $105.75 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $269.7 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness then outstanding on the Company’s unsecured line of credit which had been used to fund acquisitions in the first quarter of 2016. Also on May 25, 2016, the Company completed the public offering of 6,900,000 shares of its common stock at $100.00 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $665.4 million. The Company initially used the net proceeds from the offering to repay the indebtedness then outstanding on the Company’s unsecured line of credit, with a portion held in cash at June 30, 2016. The proceeds from the May offering, the proceeds from the Company’s June 2016 unsecured senior notes offering, and draws on the line of credit were used to fund the purchase of LS in July 2016 for approximately $1.3 billion.

On March 3, 2015, the Company completed the public offering of 1,380,000 shares of its common stock at $90.40 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $119.5 million, and when combined with the exercise of stock options, and the sale of common stock through our dividend reinvestment plan, resulted in net cash proceeds from the sale of common stock of $145.0 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness outstanding on the Company’s unsecured line of credit.

In January 2016, the Company exercised the expansion feature of its existing amended unsecured credit agreement and increased the revolving credit limit from $300 million to $500 million. The interest rate on the revolving credit facility bears interest at a variable rate equal to LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.10%), and requires a 0.15% facility fee. The amended agreement also reduced the interest rate on the $325 million unsecured term note maturing June 4, 2020, with the term note bearing interest at LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.15%). The interest rate at September 30, 2016 on the Company’s line of credit was approximately 1.62% (1.72% at December 31, 2015). At September 30, 2016, there was $260 million available on the unsecured line of credit. The revolving line of credit has a maturity date of December 10, 2019.

On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%. The proceeds from this term note were used to repay a portion of the then outstanding balance on the Company’s line of credit.

The Company had maintained a $150 million unsecured term note that matured on April 26, 2016 bearing interest at 6.38%. The Company used a draw on the line of credit to pay off the balance of this note on April 26, 2016.

On June 20, 2016, the Company issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). Net proceeds to the Company after original issue discount, underwriting discounts and commissions and offering expenses were approximately $591.2 million. On July 15, 2016, the proceeds from the 2026 Senior Notes, the proceeds from the Company’s common stock offering in May 2016, and draws on the Company’s line of credit were used to fund the acquisiton of LS. In conjunction with the issuance of the 2026 Senior Notes, the Company settled its $150 million notional forward starting swap agreements for cash of approximately $9.2 million.

Our line of credit facility and term notes have an investment grade rating from Standard and Poor’s and Fitch Ratings (BBB), as well as Moody’s (Baa2).

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In addition to the unsecured financing mentioned above, our consolidated financial statements also include $10.1 million of mortgages payable that are secured by three storage facilities. The increase in mortgages payable from 2015 to 2016 was a result of two mortgages that were assumed in connection with the acquisition of two properties in 2016.

On May 12, 2014, the Company entered into a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC (“Wells Fargo”), Jefferies LLC (“Jefferies”), SunTrust Robinson Humphrey, Inc. (“SunTrust”), Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC (“BB&T”), pursuant to which the Company may sell from time to time up to $225 million in aggregate offering price of shares of the Company’s common stock. Actual sales under the Equity Program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell, and issue shares of common stock under the Equity Program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the Equity Program.

During the nine months ended September 30, 2016, the Company did not issue any shares of common stock under the Equity Program. As of September 30, 2016, the Company had $59.3 million available for issuance under the Equity Program.

In 2013, the Company implemented a Dividend Reinvestment Plan. The Company issued 94,050 shares under the plan during the nine months ended September 30, 2016.

Future acquisitions, our expansion and enhancement program, and share repurchases are expected to be funded with draws on our line of credit, issuance of common and preferred stock, the issuance of unsecured term notes, sale of properties, and private placement solicitation of joint venture equity. Should the capital markets deteriorate, we may have to curtail acquisitions, our expansion and enhancement program and share repurchases.

ACQUISITION AND DISPOSITION OF PROPERTIES

In the nine months ended September 30, 2016, the Company acquired 120 self-storage facilities comprising 9.3 million square feet in Arizona (1), California (22), Colorado (6), Connecticut (2), Florida (10), Illinois (24), Massachusetts (1), Mississippi (1), New Hampshire (5), Nevada (17), New York (4), Pennsylvania (1), South Carolina (1), Texas (23), Utah (1), and Wisconsin (1) for a total purchase price of $1,765.5 million. Based on the trailing financial information of the entities from which the properties were acquired, the weighted average capitalization rate was 3.6% on these purchases and ranged from 0% on recently constructed facilities to 6.7% on mature facilities.

In 2015, we acquired 27 self-storage facilities comprising 2.0 million square feet in Arizona (1), Connecticut (2), Florida (6), Illinois (2), Massachusetts (1), New York (6), North Carolina (1), Pennsylvania (1), South Carolina (6) and Texas (1) for a total purchase price of $281.2 million. Based on the trailing financial information of the entities from which the properties were acquired, the weighted average capitalization rate was 5.3% on these purchases and ranged from 0% on recently constructed facilities to 6.4% on mature facilities. Four facilities acquired in Connecticut and New York in 2015 had been leased by the Company since November 1, 2013 and the operating results of these four facilities have been included in the Company’s operations since that date.

43

During 2016 the Company sold eight non-strategic properties with a carrying value of $18.8 million and received cash proceeds of $34.1 million, resulting in a $15.3 million gain on sale. During 2015 the Company sold three non-strategic properties purchased in 2014 and 2015 with a carrying value of $5.1 million and received cash proceeds of $4.6 million, resulting in a $0.5 million loss on sale.

We may seek to sell additional properties to third parties or joint venture partners in 2016.

FUTURE ACQUISITION AND DEVELOPMENT PLANS

Our external growth strategy is to increase the number of facilities we own by acquiring suitable facilities in markets in which we already have operations, or to expand into new markets by acquiring several facilities at once in those new markets. We are actively pursuing acquisitions in 2016, and at September 30, 2016, we were under contract to acquire seven self-storage facilities for aggregate consideration of approximately $85.6 million.

In the nine months ended September 30, 2016, we added 299,656 square feet to existing properties for a total cost of approximately $18.3 million. We plan to complete an additional $8.7 million of expansions and enhancements to our existing facilities in 2016.

We also expect to continue making capital expenditures on our properties. This includes roofing, paving, remodeling of store offices, and replacement of Uncle Bob’s Self Storage ^® signage with Life Storage ^® signage. For the first nine months of 2016 we spent approximately $19.9 million on such improvements and we expect to spend approximately $14.6 million for the remainder of 2016.

REIT QUALIFICATION AND DISTRIBUTION REQUIREMENTS

As a REIT, we are not required to pay federal income tax on income that we distribute to our shareholders, provided that we satisfy certain requirements, including distributing at least 90% of our REIT taxable income for a taxable year. These distributions must be made in the year to which they relate, or in the following year if declared before we file our federal income tax return, and if they are paid not later than the date of the first regular dividend of the following year. As a REIT, we must derive at least 95% of our total gross income from income related to real property, interest and dividends.

Although we currently intend to operate in a manner designed to qualify as a REIT, it is possible that future economic, market, legal, tax or other considerations may cause our Board of Directors to revoke our REIT election.

44

UMBRELLA PARTNERSHIP REIT

We are formed as an Umbrella Partnership Real Estate Investment Trust (“UPREIT”) and, as such, have the ability to issue Operating Partnership Units in exchange for properties sold by independent owners. By utilizing such Units as currency in facility acquisitions, we may obtain more favorable pricing or terms due to the seller’s ability to partially defer their income tax liability. As of September 30, 2016, 196,008 Units are outstanding. These Units had been issued in exchange for self-storage properties at the request of the sellers.

INTEREST RATE RISK

The primary market risk to which we believe we are exposed is interest rate risk, which may result from many factors, including government monetary and tax policies, domestic and international economic and political considerations, and other factors that are beyond our control.

We have entered into interest rate swap agreements in order to mitigate the effects of fluctuations in interest rates on our variable rate debt. The LIBOR base rates have been contractually fixed on $325 million of our debt through the interest rate swap termination dates. See Note 7 to our consolidated financial statements appearing elsewhere in this quarterly report on Form 10-Q.

Based on our outstanding unsecured floating rate debt of $565 million at September 30, 2016, and taking into account our interest rate swap agreements, a 100 basis point increase in interest rates would have a $2.4 million effect on our annual interest expense. These amounts were determined by considering the impact of the hypothetical interest rates on our borrowing cost and our interest rate swap agreements in effect on September 30, 2016. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further, in the event of a change of such magnitude, we would consider taking actions to further mitigate our exposure to the change. However, due to the uncertainty of the specific actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure.

INFLATION

We do not believe that inflation has had or will have a direct effect on our operations. Substantially all of the leases at the facilities are on a month-to-month basis which provides us with the opportunity to increase rental rates as each lease matures.

SEASONALITY

Our revenues typically have been higher in the third and fourth quarters, primarily because self-storage facilities tend to experience greater occupancy during the late spring, summer and early fall months due to the greater incidence of residential moves and college student activity during these periods. However, we believe that our customer mix, diverse geographic locations, rental structure and expense structure provide adequate protection against undue fluctuations in cash flows and net revenues during off-peak seasons. Thus, we do not expect seasonality to affect materially distributions to shareholders.

RECENT ACCOUNTING PRONOUNCEMENTS

See Note 14 to the financial statements.

45

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The information required is incorporated by reference to the information appearing under the caption “Interest Rate Risk” in “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” above.

Item 4. Controls and Procedures

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Parent Company

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, has been conducted under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at September 30, 2016. There have not been changes in the Company’s internal controls or in other factors that could significantly affect these controls during the quarter ended September 30, 2016.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as defined in 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934) that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Operating Partnership

An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, has been conducted under the supervision of and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer. Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective at September 30, 2016. There have not been changes in the Operating Partnership’s internal controls or in other factors that could significantly affect these controls during the quarter ended September 30, 2016.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Operating Partnership’s internal control over financial reporting (as defined in 13a-15(f) and 15d-15(f) promulgated under the Securities Exchange Act of 1934) that occurred during the Operating Partnership’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Operating Partnership’s internal control over financial reporting.

46

PART II. Other Information

Item 1. Legal Proceedings

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 seeks to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of the New Jersey Truth in Customer Contract, Warranty and Notice Act, the New Jersey Consumer Fraud Act and the New Jersey Insurance Producer Licensing Act. 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 Company brought a motion to partially dismiss the complaint for failure to state a claim, and on July 16, 2015, the Company’s motion was granted in part and denied in part. On October 20, 2016, the complaint was amended to add a claim that the Company’s insurance program violates New Jersey consumer protection laws. The Company intends to vigorously defend the action, and the possibility of any adverse outcome cannot be determined at this time.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and operating results.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

47

Item 6. Exhibits

31.1	Certification of Chief Executive Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.2	Certification of Chief Financial Officer of Life Storage, Inc. pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.3	Certification of Chief Executive Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.4	Certification of Chief Financial Officer of Life Storage LP pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
32	Certification of Chief Executive Officer and Chief Financial Officer of Life Storage, Inc. Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer and Chief Financial Officer of Life Storage LP Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	The following financial statements from the Parent Company’s and the Operating Partnership’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, formatted in XBRL, as follows:
	(i)	Consolidated Balance Sheets at September 30, 2016 and December 31, 2015;
	(ii)	Consolidated Statements of Operations for the three and nine months ended September 30, 2016 and 2015;
	(iii)	Consolidated Statements of Cash Flows for the three and nine months ended September 30, 2016 and 2015;
	(iv)	Consolidated Statements of Comprehensive (Loss) Income for the three and nine months ended September 30, 2016 and 2015; and
	(v)	Notes to Consolidated Financial Statements.

48

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Life Storage, Inc.
	By:	/ S / Andrew J. Gregoire
		Andrew J. Gregoire Chief Financial Officer (Principal Accounting Officer)
November 4, 2016                     Date
	Life Storage LP
	By:	/ S / Andrew J. Gregoire
		Andrew J. Gregoire Chief Financial Officer (Principal Accounting Officer)
November 4, 2016                     Date

49

EX-31.1

Exhibit 31.1

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as amended

I, David L. Rogers, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 4, 2016

/S/ David L. Rogers

David L. Rogers

Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as amended

I, Andrew J. Gregoire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 4, 2016

/S/ Andrew J. Gregoire

Andrew J. Gregoire

Chief Financial Officer

EX-31.3

Exhibit 31.3

Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as amended

I, David L. Rogers, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 4, 2016

/S/ David L. Rogers

David L. Rogers

Chief Executive Officer

EX-31.4

Exhibit 31.4

Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act, as amended

I, Andrew J. Gregoire, certify that:

1. I have reviewed this report on Form 10-Q of Life Storage LP;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: November 4, 2016

/S/ Andrew J. Gregoire

Andrew J. Gregoire

Chief Financial Officer

EX-32

Exhibit 32

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned of Life Storage, Inc. (the “Company”) does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 4, 2016

/S/ David L. Rogers

David L. Rogers

Chief Executive Officer

/S/ Andrew J. Gregoire

Andrew J. Gregoire

Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned of Life Storage LP (the “Company”) does hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that:

1) The Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: November 4, 2016

/S/ David L. Rogers

David L. Rogers

Chief Executive Officer

/S/ Andrew J. Gregoire

Andrew J. Gregoire

Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 24, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Trading Symbol	LSI
Entity Registrant Name	LIFE STORAGE, INC.
Entity Central Index Key	0000944314
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		46,396,450
Life Storage LP [Member]
Document Information [Line Items]
Entity Registrant Name	LIFE STORAGE LP
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Investment in storage facilities:
Land	$ 785,866	$ 480,176
Building, equipment, and construction in progress	3,416,823	2,011,526
Real estate investment property, at cost, total	4,202,689	2,491,702
Less: accumulated depreciation	(513,716)	(465,195)
Investment in storage facilities, net	3,688,973	2,026,507
Cash and cash equivalents	16,146	7,032
Accounts receivable	5,973	6,805
Receivable from unconsolidated joint ventures	747	929
Investment in unconsolidated joint ventures	66,667	62,520
Prepaid expenses	7,772	5,431
Fair value of interest rate swap agreements		550
Other assets	61,838	9,048
Total Assets	3,848,116	2,118,822
Liabilities
Line of credit	240,000	79,000
Term notes, net	1,387,119	746,650
Accounts payable and accrued liabilities	62,155	47,839
Deferred revenue	9,996	7,511
Fair value of interest rate swap agreements	19,248	15,343
Mortgages payable	10,134	1,993
Total Liabilities	1,728,652	898,336
Noncontrolling redeemable Operating Partnership Units at redemption value	17,996	18,171
Shareholders' Equity/ Partners' Capital
Common stock $.01 par value, 100,000,000 shares authorized, 46,396,450 shares outstanding at September 30, 2016 (36,710,673 at December 31, 2015)	464	367
Additional paid-in capital	2,343,581	1,388,343
Dividends in excess of net income	(214,703)	(171,980)
Accumulated other comprehensive loss	(27,932)	(14,415)
Total Shareholders' Equity	2,101,410	1,202,315
Noncontrolling interest in consolidated subsidiary	58
Total Equity	2,101,468	1,202,315
Total Liabilities and Shareholders' Equity/ Partners' Capital	3,848,116	2,118,822
Life Storage LP [Member]
Investment in storage facilities:
Land	785,866	480,176
Building, equipment, and construction in progress	3,416,823	2,011,526
Real estate investment property, at cost, total	4,202,689	2,491,702
Less: accumulated depreciation	(513,716)	(465,195)
Investment in storage facilities, net	3,688,973	2,026,507
Cash and cash equivalents	16,146	7,032
Accounts receivable	5,973	6,805
Receivable from unconsolidated joint ventures	747	929
Investment in unconsolidated joint ventures	66,667	62,520
Prepaid expenses	7,772	5,431
Fair value of interest rate swap agreements		550
Other assets	61,838	9,048
Total Assets	3,848,116	2,118,822
Liabilities
Line of credit	240,000	79,000
Term notes, net	1,387,119	746,650
Accounts payable and accrued liabilities	62,155	47,839
Deferred revenue	9,996	7,511
Fair value of interest rate swap agreements	19,248	15,343
Mortgages payable	10,134	1,993
Total Liabilities	1,728,652	898,336
Limited partners' redeemable capital interest at redemption value (196,008 and 168,866 units outstanding at September 30, 2016 and December 31, 2015, respectively)	17,996	18,171
Shareholders' Equity/ Partners' Capital
General partner (465,925 and 368,795 units outstanding at September 30, 2016 and December 31, 2015, respectively)	21,194	12,205
Limited partners (45,930,525 and 36,341,878 units outstanding at September 30, 2016 and December 31, 2015, respectively)	2,108,148	1,204,525
Accumulated other comprehensive loss	(27,932)	(14,415)
Total Controlling Partners' Capital	2,101,410	1,202,315
Noncontrolling interest in consolidated subsidiary	58
Total Partners' Capital	2,101,468	1,202,315
Total Liabilities and Shareholders' Equity/ Partners' Capital	$ 3,848,116	$ 2,118,822

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares outstanding	46,396,450	36,710,673
Limited partner, units outstanding	196,008	168,866
Life Storage LP [Member]
General partner, units outstanding	465,925	368,795
Limited partner, units outstanding	45,930,525	36,341,878
Limited Partners Redeemable Capital Interest at Redemption Value [Member] | Life Storage LP [Member]
Limited partner, units outstanding	196,008	168,866

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Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Rental income	$ 118,319	$ 88,066	$ 308,655	$ 250,439
Other operating income	9,482	7,362	25,274	21,124
Total operating revenues	127,801	95,428	333,929	271,563
Expenses
Property operations and maintenance	28,382	20,954	74,396	61,001
Real estate taxes	13,102	9,247	34,670	27,311
General and administrative	10,909	9,367	31,486	28,459
Acquisition costs	25,220	1,046	29,297	2,415
Operating leases of storage facilities				683
Depreciation and amortization	41,405	14,671	76,082	43,437
Total operating expenses	119,018	55,285	245,931	163,306
Income from operations	8,783	40,143	87,998	108,257
Other income (expenses)
Interest expense	(14,647)	(9,419)	(32,024)	(27,796)
Interest expense - bridge financing commitment fee			(7,329)
Interest income	13	1	56	4
Gain (loss) on sale of storage facilities			15,270	(7)
Equity in income of joint ventures	882	936	2,795	2,436
Net (loss) income	(4,969)	31,661	66,766	82,894
Net loss (income) attributable to noncontrolling interest in the Operating Partnership	21	(157)	(317)	(407)
Net loss attributable to noncontrolling interest in consolidated subsidiary	210		609
Net (loss) income attributable to common shareholders/ unitholders	$ (4,738)	$ 31,504	$ 67,058	$ 82,487
(Loss) earnings per common share/unit attributable to common shareholders/ unitholders - basic	$ (0.10)	$ 0.88	$ 1.59	$ 2.35
(Loss) earnings per common share/unit attributable to common shareholders/unitholders - diluted	$ (0.10)	$ 0.88	$ 1.58	$ 2.33
Common shares/units used in basic (loss) earnings per share calculation	46,139,079	35,700,375	42,176,762	35,135,946
Common shares/units used in diluted (loss) earnings per share calculation	46,139,079	35,917,105	42,414,623	35,358,332
Dividends/Distributions declared per common share/unit	$ 0.95	$ 0.85	$ 2.75	$ 2.35
Life Storage LP [Member]
Revenues
Rental income	$ 118,319	$ 88,066	$ 308,655	$ 250,439
Other operating income	9,482	7,362	25,274	21,124
Total operating revenues	127,801	95,428	333,929	271,563
Expenses
Property operations and maintenance	28,382	20,954	74,396	61,001
Real estate taxes	13,102	9,247	34,670	27,311
General and administrative	10,909	9,367	31,486	28,459
Acquisition costs	25,220	1,046	29,297	2,415
Operating leases of storage facilities				683
Depreciation and amortization	41,405	14,671	76,082	43,437
Total operating expenses	119,018	55,285	245,931	163,306
Income from operations	8,783	40,143	87,998	108,257
Other income (expenses)
Interest expense	(14,647)	(9,419)	(32,024)	(27,796)
Interest expense - bridge financing commitment fee			(7,329)
Interest income	13	1	56	4
Gain (loss) on sale of storage facilities			15,270	(7)
Equity in income of joint ventures	882	936	2,795	2,436
Net (loss) income	(4,969)	31,661	66,766	82,894
Net loss (income) attributable to noncontrolling interest in the Operating Partnership	21	(157)	(317)	(407)
Net loss attributable to noncontrolling interest in consolidated subsidiary	210		609
Net (loss) income attributable to common shareholders/ unitholders	$ (4,738)	$ 31,504	$ 67,058	$ 82,487
(Loss) earnings per common share/unit attributable to common shareholders/ unitholders - basic	$ (0.10)	$ 0.88	$ 1.59	$ 2.35
(Loss) earnings per common share/unit attributable to common shareholders/unitholders - diluted	$ (0.10)	$ 0.88	$ 1.58	$ 2.33
Common shares/units used in basic (loss) earnings per share calculation	46,139,079	35,700,375	42,176,762	35,135,946
Common shares/units used in diluted (loss) earnings per share calculation	46,139,079	35,917,105	42,414,623	35,358,332
Dividends/Distributions declared per common share/unit	$ 0.95	$ 0.85	$ 2.75	$ 2.35
Net (loss) income attributable to general partner	$ (47)	$ 317	$ 674	$ 829
Net (loss) income attributable to limited partners	$ (4,691)	$ 31,344	$ 66,384	$ 82,065

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Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net (loss) income	$ (4,969)	$ 31,661	$ 66,766	$ 82,894
Other comprehensive (loss) income:
Effective portion of gain (loss) on derivatives net of reclassification to interest expense	2,931	(4,537)	(13,517)	(6,103)
Total comprehensive (loss) income	(2,038)	27,124	53,249	76,791
Comprehensive loss (income) attributable to noncontrolling interest in the Operating Partnership	8	(135)	(253)	(377)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary	210		609
Comprehensive (loss) income attributable to common shareholders/ unitholders	(1,820)	26,989	53,605	76,414
Life Storage LP [Member]
Net (loss) income	(4,969)	31,661	66,766	82,894
Other comprehensive (loss) income:
Effective portion of gain (loss) on derivatives net of reclassification to interest expense	2,931	(4,537)	(13,517)	(6,103)
Total comprehensive (loss) income	(2,038)	27,124	53,249	76,791
Comprehensive loss (income) attributable to noncontrolling interest in the Operating Partnership	8	(135)	(253)	(377)
Comprehensive loss attributable to noncontrolling interest in consolidated subsidiary	210		609
Comprehensive (loss) income attributable to common shareholders/ unitholders	$ (1,820)	$ 26,989	$ 53,605	$ 76,414

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Operating Activities
Net income	$ 66,766	$ 82,894
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	76,082	43,437
Amortization of debt issuance costs and bond discount	8,858	888
(Gain) loss on sale of storage facilities	(15,270)	7
Equity in income of joint ventures	(2,795)	(2,436)
Distributions from unconsolidated joint ventures	3,875	3,250
Non-vested stock earned	5,583	4,786
Stock option expense	85	163
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable	4,308	(715)
Prepaid expenses	(1,080)	776
Receipts from (advances to) joint ventures	182	(231)
Accounts payable and other liabilities	5,787	5,823
Deferred revenue	(3,012)	(589)
Net cash provided by operating activities	149,369	138,053
Investing Activities
Acquisitions of storage facilities, net of cash acquired	(1,738,538)	(273,469)
Improvements, equipment additions, and construction in progress	(44,441)	(24,332)
Net proceeds from the sale of storage facilities	34,074	711
Investment in unconsolidated joint ventures	(5,336)	(483)
Property deposit	(759)	(1,215)
Net cash used in investing activities	(1,755,000)	(298,788)
Financing Activities
Net proceeds from sale of common stock/partnership units	944,872	176,503
Proceeds from line of credit	1,059,000	297,000
Repayments of line of credit	(898,000)	(232,000)
Proceeds from term notes, net of discount	796,682
Repayment of term note	(150,000)
Debt issuance costs	(15,253)
Settlement of forward starting interest rate swaps	(9,166)
Dividends paid-common stock	(112,688)	(82,742)
Distributions to noncontrolling interest holders	(557)	(403)
Mortgage principal payments	(145)	(99)
Net cash provided by financing activities	1,614,745	158,259
Net increase (decrease) in cash	9,114	(2,476)
Cash at beginning of period	7,032	8,543
Cash at end of period	16,146	6,067
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	31,489	25,844
Cash paid for income taxes, net of refunds	911	1,080
Life Storage LP [Member]
Operating Activities
Net income	66,766	82,894
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	76,082	43,437
Amortization of debt issuance costs and bond discount	8,858	888
(Gain) loss on sale of storage facilities	(15,270)	7
Equity in income of joint ventures	(2,795)	(2,436)
Distributions from unconsolidated joint ventures	3,875	3,250
Non-vested stock earned	5,583	4,786
Stock option expense	85	163
Changes in assets and liabilities (excluding the effects of acquisitions):
Accounts receivable	4,308	(715)
Prepaid expenses	(1,080)	776
Receipts from (advances to) joint ventures	182	(231)
Accounts payable and other liabilities	5,787	5,823
Deferred revenue	(3,012)	(589)
Net cash provided by operating activities	149,369	138,053
Investing Activities
Acquisitions of storage facilities, net of cash acquired	(1,738,538)	(273,469)
Improvements, equipment additions, and construction in progress	(44,441)	(24,332)
Net proceeds from the sale of storage facilities	34,074	711
Investment in unconsolidated joint ventures	(5,336)	(483)
Property deposit	(759)	(1,215)
Net cash used in investing activities	(1,755,000)	(298,788)
Financing Activities
Net proceeds from sale of common stock/partnership units	944,872	176,503
Proceeds from line of credit	1,059,000	297,000
Repayments of line of credit	(898,000)	(232,000)
Proceeds from term notes, net of discount	796,682
Repayment of term note	(150,000)
Debt issuance costs	(15,253)
Settlement of forward starting interest rate swaps	(9,166)
Distributions to unitholders	(112,688)	(82,742)
Distributions to noncontrolling interest holders	(557)	(403)
Mortgage principal payments	(145)	(99)
Net cash provided by financing activities	1,614,745	158,259
Net increase (decrease) in cash	9,114	(2,476)
Cash at beginning of period	7,032	8,543
Cash at end of period	16,146	6,067
Supplemental cash flow information
Cash paid for interest, net of interest capitalized	31,489	25,844
Cash paid for income taxes, net of refunds	$ 911	$ 1,080

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Basis of Presentation

9 Months Ended

Sep. 30, 2016

Accounting Policies [Abstract]

Basis of Presentation

1. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Life Storage, Inc., formerly known as Sovran Self Storage, Inc., (the “Parent Company”) and Life Storage LP, formerly known as Sovran Acquisition Limited Partnership, (the “Operating Partnership”) have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

Reclassification: Certain amounts from the 2015 financial statements have been reclassified to conform with the current year presentation as described in Note 5.

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Organization

9 Months Ended

Sep. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

2. ORGANIZATION

Effective August 15, 2016, the Parent Company changed its name from “Sovran Self Storage, Inc.” to “Life Storage, Inc.” and the Operating Partnership changed its name from “Sovran Acquisition Limited Partnership” to “Life Storage LP”. Also, consistent with these name changes, and in connection with the rebranding of our storage facilities from “Uncle Bob’s Self Storage ^®“ to “Life Storage ^®“, the name of the general partner of the Operating Partnership has been changed from “Sovran Holdings, Inc.” to “Life Storage Holdings, Inc.” and the name of the Parent Company’s taxable REIT subsidiary changed from “Uncle Bob’s Management, LLC” to “Life Storage Solutions, LLC”.

The Parent Company operates as a self-administered and self-managed real estate investment trust (a “REIT”) that owns and operates self-storage facilities throughout the United States. All of the Parent Company’s assets are owned by, and all its operations are conducted through, the Operating Partnership. Life Storage Holdings, Inc., a wholly-owned subsidiary of the Parent Company (“Holdings”), is the sole general partner of the Operating Partnership; the Parent Company is a limited partner of the Operating Partnership, and through its ownership of Holdings and its limited partnership interest controls the operations of the Operating Partnership, holding a 99.6% ownership interest therein as of September 30, 2016. The remaining ownership interests in the Operating Partnership (the “Units”) are held by certain former owners of assets acquired by the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we,” “us,” or “our” used in this report may refer to the Company, the Parent Company and/or the Operating Partnership.

At September 30, 2016, we had an ownership interest in, and/or managed 657 self-storage properties in 29 states under the names Uncle Bob’s Self Storage ^® and Life Storage ^®. Among our 657 self-storage properties are 39 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings LLC) of which we are a 20% owner, 30 properties that we manage for an unconsolidated joint venture (Sovran HHF Storage Holdings II LLC) of which we are a 15% owner, and 26 properties that we manage and have no ownership interest. Approximately 39.0% of the Company’s revenue is derived from stores in the states of Texas and Florida. In addition, approximately 9.9% of the Company’s revenue is derived from the Houston, Texas market.

We consolidate all wholly-owned subsidiaries. Partially owned subsidiaries and joint ventures are consolidated when we control the entity. Our consolidated financial statements include the accounts of the Parent Company, the Operating Partnership, Life Storage Solutions, LLC (the Parent Company’s taxable REIT subsidiary), Warehouse Anywhere LLC (an entity owned 60% by Life Storage Solutions, LLC), and all other wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated. Investments in joint ventures that we do not control but for which we have significant influence over are accounted for using the equity method.

Included in the Parent Company’s consolidated balance sheets are noncontrolling redeemable operating partnership units and included in the Operating Partnership’s consolidated balance sheets are limited partners’ redeemable capital interest at redemption value. These interests are presented in the “mezzanine” section of the consolidated balance sheet because they do not meet the functional definition of a liability or equity under current accounting literature. These represent the outside ownership interests of the limited partners in the Operating Partnership. At September 30, 2016, there were 196,008 noncontrolling redeemable operating partnership Units outstanding (168,866 at December 31, 2015). These unitholders are entitled to receive distributions per unit equivalent to the dividends declared per share on the Parent Company’s common stock. The Operating Partnership is obligated to redeem each of these limited partnership Units in the Operating Partnership at the request of the holder thereof for cash equal to the fair market value of a share of the Parent Company’s common stock, at the time of such redemption, provided that the Company at its option may elect to acquire any such Unit presented for redemption for one common share or cash. The Company accounts for these noncontrolling redeemable Operating Partnership Units under the provisions of EITF D-98, “Classification and Measurement of Redeemable Securities” which was codified in FASB ASC Topic 480-10-S99. The application of the FASB ASC Topic 480-10-S99 accounting model requires the noncontrolling interest to follow normal noncontrolling interest accounting and then be marked to redemption value at the end of each reporting period if higher (but never adjusted below that normal noncontrolling interest accounting amount). The offset to the adjustment to the carrying amount of the noncontrolling interests is reflected in the Company’s dividends in excess of net income and in the Operating Partnership’s general partner and limited partners capital balances. Accordingly, in the accompanying consolidated balance sheets, noncontrolling interests are reflected at redemption value at September 30, 2016 and December 31, 2015, equal to the number of noncontrolling interest units outstanding multiplied by the fair market value of the Parent Company’s common stock at that date. Redemption value exceeded the value determined under the Company’s historical basis of accounting at those dates.

The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance noncontrolling redeemable Operating Partnership Units	$	18,171
Issuance of Operating Partnership Units		7,767
Redemption of Operating Partnership Units		(4,795	)
Net income attributable to noncontrolling interest in the Operating Partnership		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance noncontrolling redeemable Operating Partnership Units	$	17,996

The following is a reconciliation of the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance Limited Partners’ Redeemable Capital Interest	$	18,171
Issuance of Limited Partners’ Redeemable Capital Interest Units		7,767
Redemption of Limited Partners’ Redeemable Capital Interest Units		(4,795	)
Net income attributable to Limited Partners’ Redeemable Capital Interest		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance Limited Partners’ Redeemable Capital Interest	$	17,996

In 2016 the Operating Partnership issued 69,005 Units with a fair market value of $7.8 million to acquire self-storage properties. The fair value of the Units on the date of issuance was determined based upon the fair market value of the Parent Company’s common stock on that date.

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Stock Based Compensation

9 Months Ended

Sep. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation

3. STOCK BASED COMPENSATION

The Company accounts for stock-based compensation under the provisions of ASC Topic 718, “Compensation—Stock Compensation”. The Company recognizes compensation cost in its financial statements for all share based payments granted, modified, or settled during the period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the related vesting period.

For the three months ended September 30, 2016 and 2015, the Company recorded compensation expense (included in general and administrative expense) of $4,000 and $46,000, respectively, related to stock options and $1,758,000 and $1,552,000, respectively, related to amortization of non-vested stock grants and performance-based awards. For the nine months ended September 30, 2016 and 2015, the Company recorded compensation expense of $85,000 and $163,000, respectively, related to stock options and $5,515,000 and $4,743,000, respectively, related to amortization of non-vested stock grants and performance-based awards.

During the three months ended September 30, 2016 and 2015, employees and directors exercised 0 and 1,900 stock options respectively, and 29,205 and 31,078 shares of non-vested stock, respectively, vested. During the nine months ended September 30, 2016 and 2015, employees and directors exercised 0 and 16,900 stock options respectively, and 40,086 and 42,307 shares of non-vested stock, respectively, vested.

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Investment in Storage Facilities and Intangible Assets

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Investment in Storage Facilities and Intangible Assets

4. INVESTMENT IN STORAGE FACILITIES AND INTANGIBLE ASSETS

The following summarizes our activity in storage facilities during the nine months ended September 30, 2016.

(dollars in thousands)
Cost:
Beginning balance	$	2,491,702
Acquisition of storage facilities		1,695,752
Improvements and equipment additions		38,282
Additions to consolidated subsidiary		2,164
Net increase in construction in progress		4,919
Dispositions		(30,130	)
Ending balance	$	4,202,689
Accumulated Depreciation:
Beginning balance	$	465,195
Additions during the period		59,587
Dispositions		(11,066	)
Ending balance	$	513,716

On July 15, 2016, the Company acquired all of the outstanding partnership interests in LifeStorage, LP, a Delaware limited partnership (“LS”). Pursuant to the acquisition, the Company acquired 83 self-storage properties throughout the country, including the following markets: Chicago, Illinois; Las Vegas, Nevada; Sacramento, California; Austin, Texas; and Los Angeles, California. Pursuant to the terms of the Agreement and Plan of Merger dated as of May 18, 2016 by and among LS, the Operating Partnership, Solar Lunar Sub, LLC, a Delaware limited liability company and wholly-owned subsidiary of the Operating Partnership, and Fortis Advisors LLC, a Delaware limited liability company, as Sellers’ Representative, the Company paid aggregate consideration of approximately $1.3 billion, of which $482 million was paid to discharge existing indebtedness of LS (including prepayment penalties and defeasance costs totaling $15.5 million). The merger was funded with the existing cash that was generated primarily from the proceeds from the Company’s May 2016 common stock offering and the 2026 Senior Notes offering, and draws on the Company’s line of credit totaling $482 million.

Including the LS acquisition, the Company acquired 120 facilities during the nine months ended September 30, 2016. The acquisition of two stores that were acquired at certificate of occupancy were accounted for as asset acquisitions. The cost of these stores, including closing costs, was assigned to land, building, equipment and improvements components based upon their relative fair values. The assets and liabilities of the other 118 storage facilities acquired in 2016, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.” The purchase price of the 120 facilities acquired in 2016 has been preliminarily assigned as follows:

(dollars in thousands)							Consideration paid									Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition		Purchase Price		Cash Paid		Value of Operating Partnership Units Issued		Mortgage Assumed		Net Other Liabilities (Assets) Assumed			Land		Building, Equipment, and Improvements		In-Place Customers Leases		Trade Name		Closing Costs Expensed
FL		4		1/6/2016	$	20,350	$	20,246	$	—	$	—	$	104		$	6,646	$	13,339	$	365	$	—	$	389
CA		4		1/21/2016		78,750		78,562		—		—		188			27,876		49,860		1,014		—		349
NH		5		1/21/2016		54,225		53,941		—		—		284			12,902		40,428		895		—		596
MA		1		1/21/2016		11,375		11,350		—		—		25			4,874		6,335		166		—		69
TX		3		1/21/2016		42,050		41,894		—		—		156			23,487		18,000		563		—		263
AZ		1		2/1/2016		9,275		9,261		—		—		14			988		8,224		63		—		124
FL		1		2/12/2016		11,274		11,270		—		—		4			2,294		8,980		—		—		—
PA		1		2/17/2016		5,750		5,732		—		—		18			1,768		3,879		103		—		152
CO		1		2/29/2016		12,600		12,549		—		—		51			4,528		7,915		157		—		176
CA		3		3/16/2016		68,832		63,965		4,472		—		395			22,647		45,371		814		—		277
CA		1		3/17/2016		17,320		17,278		—		—		42			6,728		10,339		253		—		120
CA		1		4/11/2016		36,750		33,346		3,295		—		109			17,445		18,840		465		—		129
CT		2		4/14/2016		17,313		17,152		—		—		161			6,142		10,904		267		—		180
NY		2		4/26/2016		24,312		20,143		—		4,249		(80	)		5,710		18,201		401		—		348
FL		1		5/2/2016		8,100		4,006		—		4,036		58			3,018		4,922		160		—		149
TX		1		5/5/2016		10,800		10,708		—		—		92			2,333		8,302		165		—		121
NY		2		5/19/2016		8,400		8,366		—		—		34			714		7,521		165		—		188
CA, CO, FL, IL, MS, NV, TX, UT, WI		83		7/15/2016		1,299,989		1,335,332		—		—		(35,343	)		150,620		1,085,979		46,890		16,500		25,328
SC		1		7/29/2016		8,620		8,617		—		—		3			920		7,700		—		—		—
CO		1		8/4/2016		8,900		8,831		—		—		69			5,062		3,679		159		—		107
FL		1		9/27/2016		10,500		10,407		—		—		93			2,809		7,523		168		—		232
Total acquired 2016		120			$	1,765,485	$	1,782,956	$	7,767	$	8,285	$	(33,523	)	$	309,511	$	1,386,241	$	53,233	$	16,500	$	29,297

All of the properties acquired were purchased from unrelated third parties. The operating results of the facilities acquired have been included in the Company’s operations since the respective acquisition dates. The $1,783.0 million of cash paid for the properties acquired during 2016 includes payment for cash acquired of $40.8 million and $4.0 million of deposits that were paid in 2015 when certain of these properties originally went under contract. Both of these amounts are excluded from total cash payments for the acquisition of storage facilities in the consolidated statement of cash flows.

Non-cash investing activities during 2016 include the issuance of $7.8 million in Operating Partnership Units, the assumption of two mortgages with outstanding balances of $8.3 million, and the assumption of net other liabilities of $7.3 million.

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the cost to replace the in-place leases. The Company amortizes in-place customer leases on a straight-line basis over 12 months (the estimated future benefit period). The Company measures the value of trade names, which have an indefinite life and are not amortized, by calculating discounted cash flows utilizing the relief from royalty method.

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
In-place customer leases	$	75,454		$	22,320
Accumulated amortization		(37,410	)		(21,017	)
Net carrying value at the end of period	$	38,044		$	1,303

Amortization expense related to in-place customer leases was $13.5 million and $0.7 million for the three months ended September 30, 2016 and 2015, respectively and was $16.5 million and $2.7 million for the nine months ended September 30, 2016 and 2015, respectively. The Company expects to record $29.9 million and $24.7 million of amortization expense for the years ended December 31, 2016 and 2017, respectively.

During the nine months ended September 30, 2016, the Company acquired 120 properties. The following pro forma information is based on the combined historical financial statements of the Company and the 120 properties acquired during the nine months ended September 30, 2016 as if the acquisitions had all occurred as of January 1, 2015.

(Dollars in thousands, except per share data)	Three Months Ended Sep. 30, 2016		Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Total revenues	$	131,421	$	120,905	$	383,991	$	342,973
Net income attributable to common shareholders	$	34,946	$	17,613	$	121,262	$	37,764
Earnings per common share
Basic	$	0.76	$	0.38	$	2.63	$	0.82
Diluted	$	0.75	$	0.38	$	2.62	$	0.81

The above pro forma information includes the results of eight stores acquired by LS in 2016 and 17 stores acquired by LS in in 2015. These stores therefore were not owned by LS for the entire pro forma periods and results prior to LS ownership are not included in the above pro forma information. The above pro forma information also includes increases in amortization of in-place customer leases totaling $13.3 million and $39.9 million for the three and nine month periods ending September 30, 2015, respectively. As noted above, in-place customer leases are amortized over their estimated future benefit period of 12 months. Material, nonrecurring pro forma adjustments directly attributable to the business combinations and included in the above pro forma financial information include reductions to interest expense related to acquisition bridge financing totaling $7.3 million for the nine months ended September 30, 2016 and reductions to acquisition costs totaling $25.2 million and $29.3 million for the three and nine months ended September 30, 2016, respectively.

The following table summarizes the revenues and earnings since the acquisition dates that are included in the Company’s consolidated statements of operations for the nine months ended September 30, 2016 related to the 120 properties acquired during the three and nine months ended September 30, 2016.

(Dollars in thousands)	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Total revenues	$	26,990		$	38,711
Net loss attributable to common shareholders	$	(37,356	)	$	(39,954	)

The above net losses attributable to common shareholders were primarily due to amortization of in-place customer leases acquired and the acquisition costs incurred in connection with the 2016 acquisitions.

Property Dispositions

During 2016 the Company sold eight non-strategic properties with a carrying value of $18.8 million and received cash proceeds of $34.1 million, resulting in a $15.3 million gain on sale. During 2015 the Company sold three non-strategic properties purchased in 2014 and 2015 with a carrying value of $5.1 million and received cash proceeds of $4.6 million, resulting in a $0.5 million loss on sale. The following table summarizes the revenues and expenses up to the dates of sale of the 11 properties sold in 2016 and 2015 that are included in the Company’s consolidated statements of operations for 2016 and 2015.

(Dollars in thousands)	Three Months Ended September 30, 2016		Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Total operating revenues	$	—	$	1,249		$	2,324		$	3,508
Property operations and maintenance expense		—		(377	)		(614	)		(1,022	)
Real estate tax expense		—		(72	)		(98	)		(210	)
Depreciation and amortization expense		—		(197	)		(359	)		(547	)
Gain (loss) on sale of storage facilities		—		—			15,270			(7	)
	$	—	$	603		$	16,523		$	1,722

Change in Signage Useful Life Estimates

The change in name of the Company’s storage facilities from Uncle Bob’s Self Storage ^® to Life Storage ^® as discussed in Note 2 will require replacement of signage at all existing storage facilities which are currently included in investment in storage facilities, net on the consolidated balance sheets. The replacement of this signage is being completed at various times based on market and is expected to be completed in the first half of 2017. The Company has reassessed the estimated useful lives of the existing signage which resulted in an increase in depreciation expense of approximately $4 million in the third quarter of 2016 as depreciation was accelerated over the new useful lives. The Company estimates that this change will result in additional increases in depreciation expense of approximately $4 million in the fourth quarter of 2016 and approximately $1 million in 2017 as a result of the replacement of this existing Uncle Bob’s Self Storage ^® signage.

The accelerated depreciation reduced basic earnings per share/unit by approximately $0.10 and $0.11 for the three and nine months ended September 30, 2016, respectively, and reduced diluted earnings per share/unit by approximately $0.10 for the three and nine months ended September 30, 2016.

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Unsecured Line of Credit and Term Notes

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Unsecured Line of Credit and Term Notes

5. UNSECURED LINE OF CREDIT AND TERM NOTES

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
Revolving line of credit borrowings	$	240,000		$	79,000
Term note due April 26, 2016		—			150,000
Term note due June 4, 2020		325,000			325,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			—
Term note due July 21, 2028		200,000			—
Total term note principal balance outstanding		1,400,000			750,000
Less: unamortized debt issuance costs		(9,646	)		(3,350	)
Less: unamortized senior term note discount		(3,235	)		—
Term notes payable	$	1,387,119		$	746,650

In January 2016, the Company exercised the expansion feature on its existing amended unsecured credit agreement and increased the revolving credit limit from $300 million to $500 million. The interest rate on the revolving credit facility bears interest at a variable annual rate equal to LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.10%), and requires an annual 0.15% facility fee. The amended agreement also reduced the interest rate on the $325 million unsecured term note issued under this credit agreement maturing June 4, 2020, with the term note bearing interest at LIBOR plus a margin based on the Company’s credit rating (at September 30, 2016 the margin is 1.15%). The interest rate at September 30, 2016 on the Company’s line of credit was approximately 1.62% (1.72% at December 31, 2015). At September 30, 2016, there was $260 million available on the unsecured line of credit. The revolving line of credit has a maturity date of December 10, 2019.

On July 21, 2016, the Company entered into a $200 million term note maturing July 21, 2028 bearing interest at a fixed rate of 3.67%. The proceeds from this term note were used to repay a portion of the then outstanding balance on the Company’s line of credit.

On April 8, 2014, the Company entered into a $175 million term note maturing April 8, 2024 bearing interest at a fixed rate of 4.533%. The interest rate on the term note increases to 6.283% if the Company is not rated by at least one rating agency or if the Company’s credit rating is downgraded. The proceeds from this term note were used to repay the $115 million outstanding on the Company’s line of credit at April 8, 2014, with the excess proceeds used for acquisitions.

In 2011, the Company entered into a $100 million term note maturing August 5, 2021 bearing interest at a fixed rate of 5.54%. The interest rate on the term note increases to 7.29% if the notes are not rated by at least one rating agency, the credit rating on the notes is downgraded or if the Company’s credit rating is downgraded. The proceeds from this term note were used to fund acquisitions and investments in unconsolidated joint ventures.

The Company has maintained a $150 million unsecured term note maturing April 26, 2016 bearing interest at 6.38%. The Company used a draw on the line of credit to pay off the balance of this note on April 26, 2016.

The line of credit and term notes require the Company to meet certain financial covenants, measured on a quarterly basis, including prescribed leverage, fixed charge coverage, minimum net worth, limitations on additional indebtedness and limitations on dividend payouts. At September 30, 2016, the Company was in compliance with its debt covenants.

We believe that if operating results remain consistent with historical levels and levels of other debt and liabilities remain consistent with amounts outstanding at September 30, 2016 the entire availability on the line of credit could be drawn without violating our debt covenants.

On May 17, 2016, the Company entered into two senior unsecured acquisition bridge facilities (the “Bridge Facilities”) totaling $1,675 million with the Company’s third-party advisors to the LS acquisition (see Note 4). In consideration for the bridge financing commitments, the Company paid fees totaling $7.3 million which are included as interest expense – acquisition bridge financing commitment fee in the consolidated statements of operations for the nine month period ending September 30, 2016. The Bridge Facilities commitments were terminated on June 29, 2016.

On June 20, 2016, the Operating Partnership issued $600 million in aggregate principal amount of 3.50% unsecured senior notes due July 1, 2026 (the “2026 Senior Notes”). The 2026 Senior Notes were issued at a 0.553% discount to par value. Interest on the 2026 Senior Notes is payable semi-annually in arrears on January 1 and July 1, beginning on January 1, 2017. The 2026 Senior Notes are fully and unconditionally guaranteed by the Parent Company. Proceeds received upon issuance, net of discount to par of $3.3 million and underwriting discount and other offering expenses of $5.5 million, totaled $591.2 million. The indenture under which the 2026 Senior Notes were issued restricts the ability of the Company and its subsidiaries to incur debt unless the Company and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 on all outstanding debt, after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Company and its subsidiaries to incur secured debt unless the Company and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Company and its consolidated subsidiaries. As of September 30, 2016, the Company was in compliance with all of the financial covenants under the 2026 Senior Notes.

During April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which amends the requirements for the presentation of debt issuance costs and requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU No. 2015-03 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years, with retrospective application required. Consistent with the guidance in ASU No. 2015-03 there are $3.4 million of debt issuance costs that have been presented as a reduction of term notes in our accompanying consolidated balance sheets at December 31, 2015 that were previously classified in other assets prior to the adoption of ASU No. 2015-03. The implementation of this accounting standards update had no effect on our results of operations or cash flows.

In August 2015, the FASB issued Accounting Standards Update 2015-15, “Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” (“ASU 2015-15”). ASU 2015-15 codifies an SEC staff announcement that entities are permitted to defer and present debt issuance costs related to line-of-credit arrangements as assets. ASU No. 2015-15 is effective for fiscal years, beginning after December 15, 2015 and interim periods within those fiscal years. The implementation of this update did not result in any changes to our consolidated financial statements.

The Company’s fixed rate term notes contain a provision that allows for the noteholders to call the debt upon a change of control of the Company at an amount that includes a make whole premium based on rates in effect on the date of the change of control. At this time no change in control is planned or anticipated.

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Mortgages Payable and Debt Maturities

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Mortgages Payable and Debt Maturities

6. MORTGAGES PAYABLE AND DEBT MATURITIES

Mortgages payable at September 30, 2016 and December 31, 2015 consist of the following:

(dollars in thousands)	September 30, 2016		December 31, 2015
4.065% mortgage note due April 1, 2023, secured by one self-storage facility with an aggregate net book value of $7.6 million, principal and interest paid monthly (effective interest rate 4.26%)	$	4,229	$	—
5.26% mortgage note due November 1, 2023, secured by one self-storage facility with an aggregate net book value of $8.2 million, principal and interest paid monthly (effective interest rate 5.52%)		4,018		—
5.99% mortgage note due May 1, 2026, secured by one self-storage facility with an aggregate net book value of $4.3 million, principal and interest paid monthly (effective interest rate 6.25%)		1,887		1,993
Total mortgages payable	$	10,134	$	1,993

The table below summarizes the Company’s debt obligations and interest rate derivatives at September 30, 2016. The estimated fair value of financial instruments is subjective in nature and is dependent on a number of important assumptions, including discount rates and relevant comparable market information associated with each financial instrument. The fair value of the fixed rate term notes and mortgage notes were estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. These assumptions are considered Level 2 inputs within the fair value hierarchy as described in Note 8. The carrying values of our variable rate debt instruments approximate their fair values as these debt instruments bear interest at current market rates that approximate market participant rates. This is considered a Level 2 input within the fair value hierarchy. The use of different market assumptions and estimation methodologies may have a material effect on the reported estimated fair value amounts. Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

	Expected Maturity Date Including Discount
(dollars in thousands)	2016		2017		2018		2019		2020		Thereafter		Total		Fair Value
Line of credit - variable rate LIBOR + 1.10% (1.62% at September 30, 2016)		—		—		—	$	240,000		—		—	$	240,000	$	240,000
Notes Payable:
Term note - variable rate LIBOR+1.15% (1.68% at September 30, 2016)		—		—		—		—	$	325,000		—	$	325,000	$	325,000
Term note - fixed rate 5.54%		—		—		—		—		—	$	100,000	$	100,000	$	113,250
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	192,387
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	616,281
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	204,294
Mortgage note - fixed rate 4.065%	$	22	$	88	$	92	$	96	$	99	$	3,832	$	4,229	$	4,205
Mortgage note - fixed rate 5.26%	$	15	$	63	$	67	$	71	$	74	$	3,728	$	4,018	$	4,276
Mortgage note - fixed rate 5.99%	$	35	$	151	$	160	$	170	$	181	$	1,190	$	1,887	$	2,031
Interest rate derivatives - liability		—		—		—		—		—		—		—	$	19,248

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Derivative Financial Instruments

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

7. DERIVATIVE FINANCIAL INSTRUMENTS

Interest rate swaps are used to adjust the proportion of total debt that is subject to variable interest rates. The interest rate swaps require the Company to pay an amount equal to a specific fixed rate of interest times a notional principal amount and to receive in return an amount equal to a variable rate of interest times the same notional amount. The notional amounts are not exchanged. Forward starting interest rate swaps are also used by the Company to hedge the risk of changes in the interest-related cash outflows associated with the potential issuance of long-term debt. No other cash payments are made unless the contract is terminated prior to its maturity, in which case the contract would likely be settled for an amount equal to its fair value. The Company enters into interest rate swaps with a number of major financial institutions to minimize counterparty credit risk.

The interest rate swaps qualify and are designated as hedges of the amount of future cash flows related to interest payments on variable rate debt. Therefore, the interest rate swaps are recorded in the consolidated balance sheet at fair value and the related gains or losses are deferred in shareholders’ equity or partners’ capital as Accumulated Other Comprehensive Loss (“AOCL”). These deferred gains and losses are recognized in interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was de minimis for the three and nine months ended September 30, 2016, and 2015.

The Company has interest rate swap agreements in effect at September 30, 2016 as detailed below to effectively convert a total of $325 million of variable-rate debt to fixed-rate debt.

Notional Amount	Effective Date		Expiration Date		Fixed Rate Paid			Floating Rate Received
$125 Million		9/1/2011		8/1/18		2.3700	%		1 month LIBOR
$100 Million		12/30/11		12/29/17		1.6125	%		1 month LIBOR
$100 Million		9/4/13		9/4/18		1.3710	%		1 month LIBOR
$100 Million		12/29/17		11/29/19		3.9680	%		1 month LIBOR
$125 Million		8/1/18		6/1/20		4.1930	%		1 month LIBOR

In the fourth quarter of 2015, the Company entered into forward starting interest rate swap agreements with a total notional value of $50 million. In the first quarter of 2016, the Company entered into additional forward starting interest rate swap agreements with a total notional value of $100 million. These forward starting interest rate swap agreements were entered into to hedge the risk of changes in the interest-related cash flows associated with the potential issuance of fixed rate long-term debt. In conjunction with the issuance of the $600 million 2026 Senior Notes (see Note 5), the Company settled the forward starting swap agreements for a loss of approximately $9.2 million. The loss was recorded as accumulated other comprehensive loss and is being amortized as additional interest expense over the ten-year term of the $600 million 2026 Senior Notes. Consistent with the Company’s accounting policy, the cash outflow related to the settlement of the forward starting swap agreements is reflected as a financing activity in the consolidated statements of cash flows.

The interest rate swap agreements are the only derivative instruments, as defined by FASB ASC Topic 815 “Derivatives and Hedging”, held by the Company. During the three months ended September 30, 2016 and 2015, the net reclassification from AOCL to interest expense was $1.2 million and $1.2 million, respectively, based on payments made under the swap agreements. During the nine months ended September 30, 2016 and 2015, the net reclassification from AOCL to interest expense was $3.5 million and $3.9 million, respectively, based on payments made under the swap agreements. Reclassification of amounts included in AOCL at September 30, 2016 to interest expense will be approximately $4.3 million for the 12 months ended September 30, 2017. Payments made under the interest rate swap agreements will be reclassified to interest expense as settlements occur or as payments under the 2026 Senior Notes are made. The fair value of the swap agreements, including accrued interest, was a liability of $19.2 million at September 30, 2016, and an asset of $550,000 and a liability of $15.3 million at December 31, 2015.

The Company’s agreements with its interest rate swap counterparties contain provisions pursuant to which the Company could be declared in default of its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. The interest rate swap agreements also incorporate other loan covenants of the Company. Failure to comply with the loan covenant provisions would result in the Company being in default on the interest rate swap agreements. As of September 30, 2016, the Company had not posted any collateral related to the interest rate swap agreements. If the Company had breached any of these provisions as of September 30, 2016, it could have been required to settle its obligations under the agreements at their net termination cost of $19.2 million.

The changes in AOCL for the three and nine months ended September 30, 2016 and September 30, 2015 are summarized as follows:

(dollars in thousands)	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Accumulated other comprehensive loss beginning of period	$	(30,863	)	$	(14,571	)	$	(14,415	)	$	(13,005	)
Realized loss reclassified from accumulated other comprehensive loss to interest expense		1,398			1,226			3,755			3,944
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps		1,533			(5,763	)		(17,272	)		(10,047	)
Loss included in other comprehensive loss		2,931			(4,537	)		(13,517	)		(6,103	)
Accumulated other comprehensive loss end of period	$	(27,932	)	$	(19,108	)	$	(27,932	)	$	(19,108	)

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Fair Value Measurements

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

8. FAIR VALUE MEASUREMENTS

The Company applies the provisions of ASC Topic 820 “Fair Value Measurements and Disclosures” in determining the fair value of its financial and nonfinancial assets and liabilities. ASC Topic 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration. Level 3 inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

Refer to Note 6 for presentation of the fair values of debt obligations which are disclosed at fair value on a recurring basis.

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands):

	Asset (Liability)			Level 1		Level 2			Level 3
September 30, 2016
Interest rate swaps	$	(19,248	)		—	$	(19,248	)		—
December 31, 2015
Interest rate swaps	$	550			—	$	550			—
Interest rate swaps	$	(15,343	)		—	$	(15,343	)		—

Interest rate swaps are over the counter securities with no quoted readily available Level 1 inputs, and therefore are measured at fair value using inputs that are directly observable in active markets and are classified within Level 2 of the valuation hierarchy, using the income approach.

During 2016, assets and liabilities measured at fair value on a non-recurring basis included the assets acquired and liabilities assumed in connection with the acquisition of 120 storage facilities (see note 4), including the LS acquisition. To determine the fair value of land, the Company used prices per acre derived from observed transactions involving comparable land in similar locations, which is considered a Level 2 input. To determine the fair value of buildings, equipment and improvements, the Company used current replacement cost based on information derived from construction industry data by geographic region which is considered a Level 2 input. The replacement cost is then adjusted for the age, condition, and economic obsolescence associated with these assets, which are considered Level 3 inputs. The fair value of in-place customer leases is based on the rent lost due to the amount of time required to replace existing customers and the cost to replace in-place tenants which are based on the Company’s historical experience with turnover at its facilities and on market rental rates and estimated downtime required to replace the in-place leases, all of which are Level 3 inputs. The average downtime is based upon estimated demand information including the number of potential customers exhibited in historical property interest data. The fair value of trade names is based on royalty payments avoided had the trade name been owned by a third party which is determined using market royalty rates. Other assets acquired and liabilities assumed in the acquisitions consist primarily of prepaid or accrued real estate taxes and deferred revenues from advance monthly rentals paid by customers. The fair values of these assets and liabilities are based on their carrying values as they typically turn over within one year from the acquisition date and these are Level 3 inputs.

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Investment in Joint Ventures

9 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures

9. INVESTMENT IN JOINT VENTURES

The Company has a 20% ownership interest in Sovran HHF Storage Holdings LLC (“Sovran HHF”), a joint venture that was formed in May 2008 to acquire self-storage properties that are managed by the Company. The carrying value of the Company’s investment at September 30, 2016 and December 31, 2015 was $43.8 million and $44.6 million, respectively. Twenty-five properties were acquired by Sovran HHF in 2008 for approximately $171.5 million and 14 additional properties were acquired by Sovran HHF in 2014 for $187.2 million. In 2008, the Company contributed $18.6 million to the joint venture as its share of capital required to fund the acquisitions. In 2012 the Company contributed an additional $1.2 million to the joint venture. In 2013 the Company received a return of capital distribution of $3.4 million as part of the refinancing of Sovran HHF. In 2014 the Company contributed an additional $28.6 million in cash to the joint venture as its share of capital required to fund acquisitions. In 2015 the Company contributed an additional $0.4 million in cash to the joint venture as its share of capital required to fund certain capital expenditures and property taxes related to 2014 acquisitions. As of September 30, 2016, 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, which is assessed for other-than-temporary impairment on a periodic basis. No other-than-temporary impairments have been recorded on this investment.

The Company has a 15% ownership interest in Sovran HHF Storage Holdings II LLC (“Sovran HHF II”), a joint venture that was formed in 2011 to acquire self-storage properties that are managed by the Company. The carrying value of the Company’s investment at September 30, 2016 and December 31, 2015 was $13.6 million and $13.9 million, respectively. Twenty properties were acquired by Sovran HHF II during 2011 for approximately $166.1 million. During 2011, the Company contributed $12.8 million to the joint venture as its share of capital required to fund the acquisitions. Ten additional properties were acquired by Sovran HHF II during 2012 for approximately $29 million. During 2012, the Company contributed $2.4 million to the joint venture as its share of capital required to fund the acquisitions. In 2015 the Company contributed an additional $1.7 million in cash to the joint venture as its share of capital required to fund the payoff of a mortgage note. The carrying value of this investment is assessed for other-than-temporary impairment on a periodic basis and no such impairments have been recorded on this investment.

As manager of Sovran HHF and Sovran HHF II, the Company earns a management and call center fee of 7% of gross revenues which totaled $1.3 million and $1.3 million for the three months ended September 30, 2016 and 2015, respectively. The management and call center fees earned by the Company for the nine months ended September 30, 2016 and 2015, totaled $3.8 million and $3.6 million, respectively.

The Company’s share of Sovran HHF and Sovran HHF II’s income for the three months ended September 30, 2016 and 2015 was $0.8 million and $0.9 million, respectively. The Company’s share of Sovran HHF and Sovran HHF II’s income for the nine months ended September 30, 2016 and 2015 was $2.6 million and $2.3 million, respectively.

The Company has a 49% ownership interest in Iskalo Office Holdings, LLC, which owns the building that houses the Company’s headquarters and other tenants. The carrying value of the Company’s investment is a liability of $0.4 million and $0.5 million at September 30, 2016 and December 31, 2015, respectively, and is included in accounts payable and accrued liabilities in the accompanying consolidated balance sheets. For the three months ended September 30, 2016, and 2015, the Company’s share of Iskalo Office Holdings, LLC’s income was $45,000 and $58,000, respectively. For the nine months ended September 30, 2016, and 2015, the Company’s share of Iskalo Office Holdings, LLC’s income was $158,000 and $162,000, respectively. The Company paid rent to Iskalo Office Holdings, LLC of $0.9 million and $0.8 million during the nine months ended September 30, 2016 and 2015, respectively.

The Company holds an 85% equity interest in Urban Box Coralway Storage, LLC (“Urban Box”), a joint venture with an unrelated third party. Urban Box was formed in 2015 and is currently developing a self-storage property in Florida. During 2015, the Company contributed $4.0 million to Urban Box as its share of capital to develop the property, which primarily consists of the acquisition of land in 2015. Urban Box has entered into a non-recourse mortgage loan in order to finance the future development costs. The Company and the other joint venture member have participation rights which require the agreement of both members in order to implement the activities of Urban Box which are most significant to its economic performance. Accordingly, the interest is recorded using the equity method.

The Company will perform property management services for Urban Box in exchange for a management fee based on 6% of property revenues. There were no management fees in 2016 or 2015.

The Company holds a 5% equity interest in SNL/Orix 1200 McDonald Ave., LLC (“McDonald”), a joint venture with an unrelated third party. The joint venture for McDonald was executed in 2016 and is currently developing a self-storage property in New York. During 2016, the Company contributed $0.4 million of common capital and $2.3 million of preferred capital to McDonald as its share of capital to develop the property. McDonald entered into a non-recourse mortgage loan in order to finance the future development costs. In accordance with the terms of the McDonald joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the interest is recorded using the equity method.

The Company will perform property management services for McDonald in exchange for a management fee based on property revenues. There were no management fees in 2016 or 2015.

The Company holds a 5% equity interest in SNL Orix Merrick, LLC (“Merrick”), a joint venture with an unrelated third party. The joint venture for Merrick was executed in 2016 and is currently developing a self-storage property in New York. During 2016, the Company contributed $0.4 million of common capital and $2.1 million of preferred capital to Merrick as its share of capital to develop the property. Merrick will enter into a non-recourse mortgage loan in order to finance the future development costs. In accordance with the terms of the Merrick joint venture agreement, the Company has the ability to assert influence over certain business matters. Accordingly, the interest is recorded using the equity method.

The Company will perform property management services for Merrick in exchange for a management fee based on property revenues. There were no management fees in 2016 or 2015.

A summary of the unconsolidated joint ventures’ financial statements as of and for the nine months ended September 30, 2016 is as follows:

(dollars in thousands)
Balance Sheet Data:
Investment in storage facilities, net	$	534,541
Investment in office building, net		5,000
Other assets		17,928
Total Assets	$	557,469
Due to the Company	$	767
Mortgages payable		222,434
Other liabilities		9,177
Total Liabilities		232,378
Unaffiliated partners’ equity		260,581
Company equity		64,510
Total Partners’ Equity		325,091
Total Liabilities and Partners’ Equity	$	557,469
Income Statement Data:
Total revenues	$	55,533
Property operating expenses		(17,922	)
Administrative, management and call center fees		(4,046	)
Depreciation and amortization of customer list		(10,179	)
Amortization of financing fees		(265	)
Income tax expense		(174	)
Interest expense		(7,730	)
Net income	$	15,217

The Company does not guarantee the debt of Sovran HHF, Sovran HHF II, Iskalo Office Holdings, LLC, Urban Box, McDonald, or Merrick.

We do not expect to have material future cash outlays relating to these joint ventures outside our share of capital for future acquisitions of properties.

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Income Taxes

9 Months Ended

Sep. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

10. INCOME TAXES

The Company qualifies as a REIT under the Internal Revenue Code of 1986, as amended, and will generally not be subject to corporate income taxes to the extent it distributes its taxable income to its shareholders and complies with certain other requirements.

The Company has elected to treat one of its subsidiaries as a taxable REIT subsidiary. In general, the Company’s taxable REIT subsidiary may perform additional services for tenants and generally may engage in certain real estate or non-real estate related business. A taxable REIT subsidiary is subject to corporate federal and state income taxes. Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities.

For the three months ended September 30, 2016 and 2015, the Company recorded federal and state income tax expense of $0.2 million and $0.6 million, respectively. For the nine months ended September 30, 2016 and 2015, the Company recorded federal and state income tax expense of $0.9 million and $1.7 million, respectively. At September 30, 2016 and 2015, there were no material unrecognized tax benefits. Interest and penalties relating to uncertain tax positions will be recognized in income tax expense when incurred. As of September 30, 2016 and 2015, the Company had no interest or penalties related to uncertain tax positions. Net income taxes payable and the deferred tax liability of our taxable REIT subsidiary are classified within accounts payable and accrued liabilities in the consolidated balance sheets. As of September 30, 2016, the Company’s taxable REIT subsidiary has a deferred tax liability of $1.3 million. The tax years 2013-2015 remain open to examination by the major taxing jurisdictions to which the Company is subject.

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Earnings Per Share and Earnings Per Unit

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Earnings Per Share and Earnings Per Unit

11. EARNINGS PER SHARE AND EARNINGS PER UNIT

The Company reports earnings per share and earnings per unit data in accordance ASC Topic 260, “Earnings Per Share.” Effective January 1, 2009, FASB ASC Topic 260 was updated for the issuance of FASB Staff Position (“FSP”) EITF 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities”, or FSP EITF 03-6-1, with transition guidance included in FASB ASC Topic 260-10-65-2. Under FSP EITF 03-6-1, unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and shall be included in the computation of earnings-per-share pursuant to the two-class method. The Parent Company and the Operating Partnership have calculated their basic and diluted earnings per share/unit using the two-class method.

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

(Loss) Earnings Per Share

(in thousands except per share data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common shareholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per share – weighted average shares		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per share – adjusted weighted average shares and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

(Loss) Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common unitholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per unit – weighted average units		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per unit – adjusted weighted average units and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

Not included in the effect of dilutive securities above for both earnings per share and earnings per unit are 95,706 stock options and 270,298 unvested restricted shares for the three months ended September 30, 2016, and 11,000 stock options and 139,518 unvested restricted shares for the three months ended September 30, 2015, because their effect would be antidilutive. Not included in the effect of dilutive securities above are 110,757 unvested restricted shares for the nine months ended September 30, 2016, and 7,333 stock options and 157,383 unvested restricted shares for the nine months ended September 30, 2015, because their effect would be antidilutive.

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Shareholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Shareholders' Equity

12. SHAREHOLDERS’ EQUITY

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total shareholders’ equity	$	1,202,315
Net proceeds from the issuance of common stock		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units		2,907
Net income attributable to common shareholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Dividends		(112,688	)
Ending balance of total shareholders’ equity	$	2,101,410

On January 20, 2016, the Company completed the public offering of 2,645,000 shares of its common stock at $105.75 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $269.7 million. The Company used the net proceeds from the offering to repay a portion of the indebtedness then outstanding on the Company’s unsecured line of credit.

On May 25, 2016, the Company completed the public offering of 6,900,000 shares of its common stock at $100.00 per share. Net proceeds to the Company after deducting underwriting discounts and commissions and offering expenses were approximately $665.4 million. The Company initially used the net proceeds from the offering to repay the indebtedness then outstanding on the Company’s unsecured line of credit. The proceeds from this offering and the proceeds from the 2026 Senior Notes (see Note 5) were used, along with draws on the Company’s revolving line of credit, to fund the purchase of LS on July 15, 2016 (see Note 4).

On May 12, 2014, the Company entered into a continuous equity offering program (“Equity Program”) with Wells Fargo Securities, LLC (“Wells Fargo”), Jefferies LLC (“Jefferies”), SunTrust Robinson Humphrey, Inc. (“SunTrust”), Piper Jaffray & Co. (“Piper”), HSBC Securities (USA) Inc. (“HSBC”), and BB&T Capital Markets, a division of BB&T Securities, LLC (“BB&T”), pursuant to which the Company may sell from time to time up to $225 million in aggregate offering price of shares of the Company’s common stock. Actual sales under the Equity Program will depend on a variety of factors and conditions, including, but not limited to, market conditions, the trading price of the Company’s common stock, and determinations of the appropriate sources of funding for the Company. The Company expects to continue to offer, sell, and issue shares of common stock under the Equity Program from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under the Equity Program.

During the nine months ended September 30, 2016, the Company did not issue any shares of common stock under the Equity Program. As of September 30, 2016, the Company had $59.3 million available for issuance under the Equity Program.

During the nine months ended September 30, 2015, the Company issued 499,911 shares of common stock under the Equity Program at a weighted average issue price of $94.29 per share, generating net proceeds of $46.5 million after deducting $0.6 million of sales commissions paid to Jefferies and Piper.

In 2013, the Company implemented a Dividend Reinvestment Plan. The Company issued 94,050 and 105,876 shares under the plan during the nine months ended September 30, 2016 and September 30, 2015, respectively.

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Partners' Capital

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Partners' Capital

13. PARTNERS’ CAPITAL

The following is a reconciliation of the changes in total partners’ capital for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total controlling partners’ capital	$	1,202,315
Net proceeds from the issuance of partnership units		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on limited partners’ redeemable capital interests		2,907
Net income attributable to common unitholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Distributions		(112,688	)
Ending balance of total controlling partners’ capital	$	2,101,410

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

14. RECENT ACCOUNTING PRONOUNCEMENTS

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the new guidance recognized at the date of initial application. The Company has not yet completed its assessment of the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 by the Company did not have a material impact on its consolidated financial statements.

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This ASU is effective for annual reporting periods beginning after December 15, 2015 including interim periods within that reporting period. ASU 2015-02 amends the current consolidation model specifically as it relates to variable interest entities (“VIE’s”) and provides reporting entities with a revised consolidation analysis procedure. The adoption of ASU 2015-02 by the Company did not have a material impact on its consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-16 by the Company did not have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. ASU 2016-02 is effective for fiscal years and interim periods, within those years, beginning after December 15, 2018. Early adoption is permitted for all entities. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-06, “Derivatives and Hedging (Topic 815): Contingent Put and Call Options in Debt Instruments”. ASU 2016-06 simplifies the embedded derivative analysis for debt instruments containing contingent call or put options by removing the requirement to assess whether a contingent event is related to interest rates or credit risks. The new standard will be effective for us on January 1, 2017. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-06 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-07, “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. ASU 2016-07 eliminates the requirement that when an investment qualifies for use of the equity method as a result of an increase in the level of ownership interest or degree of influence, an adjustment must be made to the investment, results of operations, and retained earnings retroactively on a step-by-step basis as if the equity method had been in effect during all previous periods that the investment had been held. The new standard will be effective for us on January 1, 2017. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-07 will have on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” as part of its simplification initiative, which involves several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-09 will have on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” in an effort to reduce existing diversity in practice related to the classification of certain cash receipts and cash payments on the statements of cash flows. The guidance addresses the classification of cash flows related to, among other things, distributions received from equity method investees. The amendments in this update are effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

15. COMMITMENT AND CONTINGENCIES

At September 30, 2016, the Company was under contract to acquire seven self-storage facilities for an aggregate purchase price of approximately $85.6 million. The purchase of these facilities is subject to customary conditions to closing, and there is no assurance that these facilities will be acquired.

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 seeks to obtain declaratory, injunctive and monetary relief for a class of consumers based upon alleged violations by the Company of the New Jersey Truth in Customer Contract, Warranty and Notice Act, the New Jersey Consumer Fraud Act and the New Jersey Insurance Producer Licensing Act. 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 Company brought a motion to partially dismiss the complaint for failure to state a claim, and on July 16, 2015, the Company’s motion was granted in part and denied in part. On October 20, 2016, the complaint was amended to add a claim that the Company’s insurance program violates New Jersey consumer protection laws. The Company intends to vigorously defend the action, and the possibility of any adverse outcome cannot be determined at this time.

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Subsequent Events

9 Months Ended

Sep. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

16. SUBSEQUENT EVENTS

On October 4, 2016, the Company declared a quarterly dividend of $0.95 per common share. The dividend was paid on October 26, 2016 to shareholders of record on October 14, 2016. The total dividend paid amounted to $43.9 million.

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Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2016

Accounting Changes and Error Corrections [Abstract]

Reclassification

Reclassification: Certain amounts from the 2015 financial statements have been reclassified to conform with the current year presentation as described in Note 5.

Fair Value Measurements and Disclosures

The assets and liabilities of the other 118 storage facilities acquired in 2016, which primarily consist of tangible and intangible assets, are measured at fair value on the date of acquisition in accordance with the principles of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” and were accounted for as business combinations in accordance with the principles of FASB ASC Topic 805 “Business Combinations.”

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires an entity to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has the option to apply the provisions of ASU 2014-09 either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the new guidance recognized at the date of initial application. The Company has not yet completed its assessment of the impact that the adoption of ASU 2014-09 will have on its consolidated financial statements.

Accounting for Share-Based Payments

In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period,” which requires a reporting entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. ASU 2014-12 is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. ASU 2014-12 may be adopted either prospectively for share-based payment awards granted or modified on or after the effective date, or retrospectively, using a modified retrospective approach. The modified retrospective approach would apply to share-based payment awards outstanding as of the beginning of the earliest annual period presented in the financial statements on adoption, and to all new or modified awards thereafter. The adoption of ASU 2014-12 by the Company did not have a material impact on its consolidated financial statements.

Consolidation Variable Interest Entity

In February 2015, the FASB issued ASU 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis”. This ASU is effective for annual reporting periods beginning after December 15, 2015 including interim periods within that reporting period. ASU 2015-02 amends the current consolidation model specifically as it relates to variable interest entities (“VIE’s”) and provides reporting entities with a revised consolidation analysis procedure. The adoption of ASU 2015-02 by the Company did not have a material impact on its consolidated financial statements.

Business Combinations

In September 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments”. ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The adoption of ASU 2015-16 by the Company did not have a material impact on its consolidated financial statements.

Leases

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”. This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. ASU 2016-02 is effective for fiscal years and interim periods, within those years, beginning after December 15, 2018. Early adoption is permitted for all entities. The Company has not yet completed its assessment of the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements.

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Organization (Tables)

9 Months Ended

Sep. 30, 2016

Summary of Reconciliation of Noncontrolling Interests

The following is a reconciliation of the Operating Partnership’s limited partners’ redeemable capital interest for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance Limited Partners’ Redeemable Capital Interest	$	18,171
Issuance of Limited Partners’ Redeemable Capital Interest Units		7,767
Redemption of Limited Partners’ Redeemable Capital Interest Units		(4,795	)
Net income attributable to Limited Partners’ Redeemable Capital Interest		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance Limited Partners’ Redeemable Capital Interest	$	17,996

Life Storage LP [Member]

Summary of Reconciliation of Noncontrolling Interests

The following is a reconciliation of the Parent Company’s noncontrolling redeemable Operating Partnership Units for the period:

(dollars in thousands)	Nine Months Ended Sep. 30, 2016
Beginning balance noncontrolling redeemable Operating Partnership Units	$	18,171
Issuance of Operating Partnership Units		7,767
Redemption of Operating Partnership Units		(4,795	)
Net income attributable to noncontrolling interest in the Operating Partnership		317
Distributions		(557	)
Adjustment to redemption value		(2,907	)
Ending balance noncontrolling redeemable Operating Partnership Units	$	17,996

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Investment in Storage Facilities and Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

Summary of Activity in Storage Facilities

The following summarizes our activity in storage facilities during the nine months ended September 30, 2016.

(dollars in thousands)
Cost:
Beginning balance	$	2,491,702
Acquisition of storage facilities		1,695,752
Improvements and equipment additions		38,282
Additions to consolidated subsidiary		2,164
Net increase in construction in progress		4,919
Dispositions		(30,130	)
Ending balance	$	4,202,689
Accumulated Depreciation:
Beginning balance	$	465,195
Additions during the period		59,587
Dispositions		(11,066	)
Ending balance	$	513,716

Schedule of Acquired Facilities and Purchase Price of Facilities

The purchase price of the 120 facilities acquired in 2016 has been preliminarily assigned as follows:

(dollars in thousands)							Consideration paid									Acquisition Date Fair Value
States	Number of Properties		Date of Acquisition		Purchase Price		Cash Paid		Value of Operating Partnership Units Issued		Mortgage Assumed		Net Other Liabilities (Assets) Assumed			Land		Building, Equipment, and Improvements		In-Place Customers Leases		Trade Name		Closing Costs Expensed
FL		4		1/6/2016	$	20,350	$	20,246	$	—	$	—	$	104		$	6,646	$	13,339	$	365	$	—	$	389
CA		4		1/21/2016		78,750		78,562		—		—		188			27,876		49,860		1,014		—		349
NH		5		1/21/2016		54,225		53,941		—		—		284			12,902		40,428		895		—		596
MA		1		1/21/2016		11,375		11,350		—		—		25			4,874		6,335		166		—		69
TX		3		1/21/2016		42,050		41,894		—		—		156			23,487		18,000		563		—		263
AZ		1		2/1/2016		9,275		9,261		—		—		14			988		8,224		63		—		124
FL		1		2/12/2016		11,274		11,270		—		—		4			2,294		8,980		—		—		—
PA		1		2/17/2016		5,750		5,732		—		—		18			1,768		3,879		103		—		152
CO		1		2/29/2016		12,600		12,549		—		—		51			4,528		7,915		157		—		176
CA		3		3/16/2016		68,832		63,965		4,472		—		395			22,647		45,371		814		—		277
CA		1		3/17/2016		17,320		17,278		—		—		42			6,728		10,339		253		—		120
CA		1		4/11/2016		36,750		33,346		3,295		—		109			17,445		18,840		465		—		129
CT		2		4/14/2016		17,313		17,152		—		—		161			6,142		10,904		267		—		180
NY		2		4/26/2016		24,312		20,143		—		4,249		(80	)		5,710		18,201		401		—		348
FL		1		5/2/2016		8,100		4,006		—		4,036		58			3,018		4,922		160		—		149
TX		1		5/5/2016		10,800		10,708		—		—		92			2,333		8,302		165		—		121
NY		2		5/19/2016		8,400		8,366		—		—		34			714		7,521		165		—		188
CA, CO, FL, IL, MS, NV, TX, UT, WI		83		7/15/2016		1,299,989		1,335,332		—		—		(35,343	)		150,620		1,085,979		46,890		16,500		25,328
SC		1		7/29/2016		8,620		8,617		—		—		3			920		7,700		—		—		—
CO		1		8/4/2016		8,900		8,831		—		—		69			5,062		3,679		159		—		107
FL		1		9/27/2016		10,500		10,407		—		—		93			2,809		7,523		168		—		232
Total acquired 2016		120			$	1,765,485	$	1,782,956	$	7,767	$	8,285	$	(33,523	)	$	309,511	$	1,386,241	$	53,233	$	16,500	$	29,297

Schedule of Fair Value of In-Place Customer Lease Intangible Assets

In-place customer leases are included in other assets on the Company’s consolidated balance sheets as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
In-place customer leases	$	75,454		$	22,320
Accumulated amortization		(37,410	)		(21,017	)
Net carrying value at the end of period	$	38,044		$	1,303

Pro Forma Information Based on Combined Historical Financial Statements on Properties Acquired

The following pro forma information is based on the combined historical financial statements of the Company and the 120 properties acquired during the nine months ended September 30, 2016 as if the acquisitions had all occurred as of January 1, 2015.

(Dollars in thousands, except per share data)	Three Months Ended Sep. 30, 2016		Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Total revenues	$	131,421	$	120,905	$	383,991	$	342,973
Net income attributable to common shareholders	$	34,946	$	17,613	$	121,262	$	37,764
Earnings per common share
Basic	$	0.76	$	0.38	$	2.63	$	0.82
Diluted	$	0.75	$	0.38	$	2.62	$	0.81

Summary of Revenues and Earnings Related to Properties Included in Company's Consolidated Statements of Operations

The following table summarizes the revenues and earnings since the acquisition dates that are included in the Company’s consolidated statements of operations for the nine months ended September 30, 2016 related to the 120 properties acquired during the three and nine months ended September 30, 2016.

(Dollars in thousands)	Three Months Ended September 30, 2016			Nine Months Ended September 30, 2016
Total revenues	$	26,990		$	38,711
Net loss attributable to common shareholders	$	(37,356	)	$	(39,954	)

Summary of Revenues and Expenses Related to Sale of Properties Included in Company's Consolidated Statements of Operations

The following table summarizes the revenues and expenses up to the dates of sale of the 11 properties sold in 2016 and 2015 that are included in the Company’s consolidated statements of operations for 2016 and 2015.

(Dollars in thousands)	Three Months Ended September 30, 2016		Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Total operating revenues	$	—	$	1,249		$	2,324		$	3,508
Property operations and maintenance expense		—		(377	)		(614	)		(1,022	)
Real estate tax expense		—		(72	)		(98	)		(210	)
Depreciation and amortization expense		—		(197	)		(359	)		(547	)
Gain (loss) on sale of storage facilities		—		—			15,270			(7	)
	$	—	$	603		$	16,523		$	1,722

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Unsecured Line of Credit and Term Notes (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Borrowings Outstanding on Unsecured Line of Credit and Term Notes

Borrowings outstanding on our unsecured line of credit and term notes are as follows:

	Sep. 30,			Dec. 31,
(Dollars in thousands)	2016			2015
Revolving line of credit borrowings	$	240,000		$	79,000
Term note due April 26, 2016		—			150,000
Term note due June 4, 2020		325,000			325,000
Term note due August 5, 2021		100,000			100,000
Term note due April 8, 2024		175,000			175,000
Senior term note due July 1, 2026		600,000			—
Term note due July 21, 2028		200,000			—
Total term note principal balance outstanding		1,400,000			750,000
Less: unamortized debt issuance costs		(9,646	)		(3,350	)
Less: unamortized senior term note discount		(3,235	)		—
Term notes payable	$	1,387,119		$	746,650

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Mortgages Payable and Debt Maturities (Tables)

9 Months Ended

Sep. 30, 2016

Debt Disclosure [Abstract]

Summary of Mortgage Payable

Mortgages payable at September 30, 2016 and December 31, 2015 consist of the following:

(dollars in thousands)	September 30, 2016		December 31, 2015
4.065% mortgage note due April 1, 2023, secured by one self-storage facility with an aggregate net book value of $7.6 million, principal and interest paid monthly (effective interest rate 4.26%)	$	4,229	$	—
5.26% mortgage note due November 1, 2023, secured by one self-storage facility with an aggregate net book value of $8.2 million, principal and interest paid monthly (effective interest rate 5.52%)		4,018		—
5.99% mortgage note due May 1, 2026, secured by one self-storage facility with an aggregate net book value of $4.3 million, principal and interest paid monthly (effective interest rate 6.25%)		1,887		1,993
Total mortgages payable	$	10,134	$	1,993

Summary of Debt Obligation and Interest Rate Derivatives

Accordingly, the estimates presented below are not necessarily indicative of the amounts the Company would realize in a current market exchange.

	Expected Maturity Date Including Discount
(dollars in thousands)	2016		2017		2018		2019		2020		Thereafter		Total		Fair Value
Line of credit - variable rate LIBOR + 1.10% (1.62% at September 30, 2016)		—		—		—	$	240,000		—		—	$	240,000	$	240,000
Notes Payable:
Term note - variable rate LIBOR+1.15% (1.68% at September 30, 2016)		—		—		—		—	$	325,000		—	$	325,000	$	325,000
Term note - fixed rate 5.54%		—		—		—		—		—	$	100,000	$	100,000	$	113,250
Term note - fixed rate 4.533%		—		—		—		—		—	$	175,000	$	175,000	$	192,387
Term note - fixed rate 3.50%		—		—		—		—		—	$	600,000	$	600,000	$	616,281
Term note - fixed rate 3.67%		—		—		—		—		—	$	200,000	$	200,000	$	204,294
Mortgage note - fixed rate 4.065%	$	22	$	88	$	92	$	96	$	99	$	3,832	$	4,229	$	4,205
Mortgage note - fixed rate 5.26%	$	15	$	63	$	67	$	71	$	74	$	3,728	$	4,018	$	4,276
Mortgage note - fixed rate 5.99%	$	35	$	151	$	160	$	170	$	181	$	1,190	$	1,887	$	2,031
Interest rate derivatives - liability		—		—		—		—		—		—		—	$	19,248

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Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Agreements

The Company has interest rate swap agreements in effect at September 30, 2016 as detailed below to effectively convert a total of $325 million of variable-rate debt to fixed-rate debt.

Notional Amount	Effective Date		Expiration Date		Fixed Rate Paid			Floating Rate Received
$125 Million		9/1/2011		8/1/18		2.3700	%		1 month LIBOR
$100 Million		12/30/11		12/29/17		1.6125	%		1 month LIBOR
$100 Million		9/4/13		9/4/18		1.3710	%		1 month LIBOR
$100 Million		12/29/17		11/29/19		3.9680	%		1 month LIBOR
$125 Million		8/1/18		6/1/20		4.1930	%		1 month LIBOR

Summary of Changes in AOCL

The changes in AOCL for the three and nine months ended September 30, 2016 and September 30, 2015 are summarized as follows:

(dollars in thousands)	Three Months Ended September 30, 2016			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2016			Nine Months Ended September 30, 2015
Accumulated other comprehensive loss beginning of period	$	(30,863	)	$	(14,571	)	$	(14,415	)	$	(13,005	)
Realized loss reclassified from accumulated other comprehensive loss to interest expense		1,398			1,226			3,755			3,944
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps		1,533			(5,763	)		(17,272	)		(10,047	)
Loss included in other comprehensive loss		2,931			(4,537	)		(13,517	)		(6,103	)
Accumulated other comprehensive loss end of period	$	(27,932	)	$	(19,108	)	$	(27,932	)	$	(19,108	)

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Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Carried at Fair Value Measured on Recurring Basis

The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of September 30, 2016 and December 31, 2015 (in thousands):

	Asset (Liability)			Level 1		Level 2			Level 3
September 30, 2016
Interest rate swaps	$	(19,248	)		—	$	(19,248	)		—
December 31, 2015
Interest rate swaps	$	550			—	$	550			—
Interest rate swaps	$	(15,343	)		—	$	(15,343	)		—

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Investment in Joint Ventures (Tables)

9 Months Ended

Sep. 30, 2016

Equity Method Investments and Joint Ventures [Abstract]

Summary of Unconsolidated Joint Ventures' Financial Statements

A summary of the unconsolidated joint ventures’ financial statements as of and for the nine months ended September 30, 2016 is as follows:

(dollars in thousands)
Balance Sheet Data:
Investment in storage facilities, net	$	534,541
Investment in office building, net		5,000
Other assets		17,928
Total Assets	$	557,469
Due to the Company	$	767
Mortgages payable		222,434
Other liabilities		9,177
Total Liabilities		232,378
Unaffiliated partners’ equity		260,581
Company equity		64,510
Total Partners’ Equity		325,091
Total Liabilities and Partners’ Equity	$	557,469
Income Statement Data:
Total revenues	$	55,533
Property operating expenses		(17,922	)
Administrative, management and call center fees		(4,046	)
Depreciation and amortization of customer list		(10,179	)
Amortization of financing fees		(265	)
Income tax expense		(174	)
Interest expense		(7,730	)
Net income	$	15,217

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Earnings Per Share and Earnings Per Unit (Tables)

9 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Common Share/Unit

The following table sets forth the computation of basic and diluted earnings per common share utilizing the two-class method.

(Loss) Earnings Per Share

(in thousands except per share data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common shareholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per share – weighted average shares		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per share – adjusted weighted average shares and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common share attributable to common shareholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

(Loss) Earnings Per Unit

The following table sets forth the computation of basic and diluted earnings per common unit utilizing the two-class method.

(in thousands except per unit data)	Three Months Ended Sep. 30, 2016			Three Months Ended Sep. 30, 2015		Nine Months Ended Sep. 30, 2016		Nine Months Ended Sep. 30, 2015
Numerator:
Net (loss) income attributable to common unitholders	$	(4,738	)	$	31,504	$	67,058	$	82,487
Denominator:
Denominator for basic (loss) earnings per unit – weighted average units		46,139			35,700		42,177		35,136
Effect of Dilutive Securities:
Stock options and non-vested stock		—			217		238		222
Denominator for diluted (loss) earnings per unit – adjusted weighted average units and assumed conversion		46,139			35,917		42,415		35,358
Basic (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.59	$	2.35
Diluted (loss) earnings per common unit attributable to common unitholders	$	(0.10	)	$	0.88	$	1.58	$	2.33

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Shareholders' Equity (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Reconciliation of Changes in Parent Company's Total Shareholders' Equity

The following is a reconciliation of the changes in the Parent Company’s total shareholders’ equity for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total shareholders’ equity	$	1,202,315
Net proceeds from the issuance of common stock		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units		2,907
Net income attributable to common shareholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Dividends		(112,688	)
Ending balance of total shareholders’ equity	$	2,101,410

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Partners' Capital (Tables)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Reconciliation of Changes in Total Partners' Capital

The following is a reconciliation of the changes in total partners’ capital for the period:

(dollars in thousands)	Nine Months Ended September 30, 2016
Beginning balance of total controlling partners’ capital	$	1,202,315
Net proceeds from the issuance of partnership units		944,872
Conversion of operating partnership units to common shares		4,795
Exercise of stock options		—
Earned portion of non-vested stock		5,515
Stock option expense		85
Deferred compensation—directors		68
Adjustment to redemption value on limited partners’ redeemable capital interests		2,907
Net income attributable to common unitholders		67,058
Amortization of terminated hedge included in AOCL		229
Change in fair value of derivatives		(13,746	)
Distributions		(112,688	)
Ending balance of total controlling partners’ capital	$	2,101,410

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Organization - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($) States Property shares	Dec. 31, 2015 shares	Dec. 31, 2012 Property	Dec. 31, 2011 Property	Dec. 31, 2008 Property
Organization [Line Items]
Percentage of ownership interest of the subsidiary and its limited partnership which controls the operations of the Operating Partnership	99.60%
Number of self-storage properties owned and managed	657
Number of states in which self-storage properties owned and managed | States	29
Number of properties managed with no ownership	26
Units of redeemable noncontrolling interest in operating partnership | shares	196,008	168,866
Noncontrolling limited partnership unit redemption value	One common share or cash
Number of units issued for acquisition | shares	69,005
Fair value of units, issued for acquisition | $	$ 7,767
Sovran HHF Storage Holdings LLC [Member]
Organization [Line Items]
Number of properties owned and managed under twenty-percent stake joint venture	39				25
Percentage ownership in unconsolidated joint venture	20.00%
Sovran HHF Storage Holdings II LLC [Member]
Organization [Line Items]
Percentage of variable interest ownership in unconsolidated joint venture	15.00%
Number of properties owned and managed under fifteen-percent stake joint venture	30		10	20
Life Storage Solutions, LLC [Member]
Organization [Line Items]
Percentage of ownership by subsidiary	60.00%
Geographic Concentration Risk [Member] | Texas and Florida [Member] | Revenue [Member]
Organization [Line Items]
Concentration risk, percentage	39.00%
Geographic Concentration Risk [Member] | Houston Texas [Member] | Revenue [Member]
Organization [Line Items]
Concentration risk, percentage	9.90%

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Organization - Summary of Reconciliation of Noncontrolling Interests (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Class of Stock [Line Items]
Noncontrolling interest, beginning balance			$ 18,171
Issuance of Operating Partnership Units/Limited Partners' Redeemable Capital Interest Units			7,767
Redemption of Operating Partnership Units/Limited Partners' Redeemable Capital Interest Units			(4,795)
Net income attributable to noncontrolling interest in the Operating Partnership/Limited Partners' Redeemable Capital Interest	$ (21)	$ 157	317	$ 407
Distributions			(557)
Adjustment to redemption value			(2,907)
Noncontrolling interest, ending balance	17,996		17,996
Life Storage LP [Member]
Class of Stock [Line Items]
Noncontrolling interest, beginning balance			18,171
Issuance of Operating Partnership Units/Limited Partners' Redeemable Capital Interest Units			7,767
Redemption of Operating Partnership Units/Limited Partners' Redeemable Capital Interest Units			(4,795)
Net income attributable to noncontrolling interest in the Operating Partnership/Limited Partners' Redeemable Capital Interest	(21)	$ 157	317	$ 407
Distributions			(557)
Adjustment to redemption value			(2,907)
Noncontrolling interest, ending balance	$ 17,996		$ 17,996

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Stock Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option expense	$ 4,000	$ 46,000	$ 85,000	$ 163,000
Amortization of non-vested stock grants and performance-based awards	$ 1,758,000	$ 1,552,000	$ 5,515,000	$ 4,743,000
Stock options exercised by employees and directors	0	1,900	0	16,900
Number of shares of non-vested stock that vested	29,205	31,078	40,086	42,307

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Investment in Storage Facilities and Intangible Assets - Summary of Activity in Storage Facilities (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2016 USD ($)
Cost:
Beginning balance	$ 2,491,702
Acquisition of storage facilities	1,695,752
Improvements and equipment additions	38,282
Additions to consolidated subsidiary	2,164
Net increase in construction in progress	4,919
Dispositions	(30,130)
Ending balance	4,202,689
Accumulated Depreciation:
Beginning balance	465,195
Additions during the period	59,587
Dispositions	(11,066)
Ending balance	$ 513,716

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Investment in Storage Facilities and Intangible Assets - Additional Information (Detail) $ / shares in Units, $ in Thousands		3 Months Ended			9 Months Ended		12 Months Ended
	Jul. 15, 2016 USD ($) Facility	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($) Facility $ / shares	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Facility Property Store $ / shares	Sep. 30, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2015 USD ($) Property Store
Investment Holdings [Line Items]
Payment for self-storage facilities under contract			$ 85,600		$ 85,600
Line of credit			$ 240,000		$ 240,000			$ 79,000
Number of storage facilities acquired | Facility			120		120
Stores acquired at certificate of occupancy | Store					2
Cash acquired during purchase					$ 40,800
Cash paid for properties acquired					1,783,000
Deposits paid at the time of contract								$ 4,000
Issuance of Operating Partnership Units					7,800
Outstanding balances of two mortgages			$ 8,300		8,300
Net other liabilities			7,300		$ 7,300
Amortization period for in-place customer leases on a straight-line basis					12 months
Amortization expense related to in-place customer leases			13,500	$ 700	$ 16,500	$ 2,700
Amortization expense expected for 2016			29,900		29,900
Amortization expense expected for 2017			24,700		24,700
Reductions to acquisition costs			25,200		29,300
Net proceeds from the sale of storage facilities					34,074	711
(Loss) gain on sale of storage facilities					$ 15,270	(7)
Increase in depreciation expense			$ 4,000
Accelerated depreciation reduced basic earnings per share | $ / shares			$ 0.10		$ 0.11
Accelerated depreciation reduced diluted earnings per share | $ / shares			$ 0.10		$ 0.10
Scenario, Forecast [Member]
Investment Holdings [Line Items]
Increase in depreciation expense		$ 4,000					$ 1,000
Bridge Financing [Member]
Investment Holdings [Line Items]
Reductions to interest expense					$ 7,300
LifeStorage, LP [Member]
Investment Holdings [Line Items]
Number of self-storage facilities under contract to be purchased | Facility	83
Payment for self-storage facilities under contract	$ 1,300,000
Discharge of indebtedness	482,000
Line of credit	482,000
Prepayment penalties and defeasance costs	$ 15,500
Number of storage facilities acquired | Store					8			17
Amortization expense related to in-place customer leases				$ 13,300		$ 39,900
Property Dispositions [Member]
Investment Holdings [Line Items]
Number of properties sold | Property					8			3
Carrying value of properties sold			$ 18,800		$ 18,800			$ 5,100
Net proceeds from the sale of storage facilities					34,100			4,600
(Loss) gain on sale of storage facilities					$ 15,300			$ (500)

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Investment in Storage Facilities and Intangible Assets - Schedule of Acquired Facilities and Purchase Price of Facilities (Detail) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016 USD ($) Facility	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Facility Property	Sep. 30, 2015 USD ($)
Investment Holdings [Line Items]
Number of Properties | Facility	120		120
Cash Paid			$ 1,783,000
Closing Costs Expensed	$ 25,220	$ 1,046	$ 29,297	$ 2,415
Acquisitions 2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			120
Purchase Price	1,765,485		$ 1,765,485
Cash Paid			1,782,956
Consideration paid Value of Operating Partnership Units Issued			7,767
Mortgage Assumed	8,285		8,285
Net Other Liabilities (Assets) Assumed	(33,523)		(33,523)
Land	309,511		309,511
Acquisition Date Building, Equipment, and Improvements	1,386,241		1,386,241
Fair Value In-Place Customers Leases	53,233		53,233
Trade Name	16,500		16,500
Closing Costs Expensed			$ 29,297
FL [Member] | Date Of Acquisition, 1/6/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			4
Date of Acquisition			Jan. 06, 2016
Purchase Price	20,350		$ 20,350
Cash Paid			20,246
Net Other Liabilities (Assets) Assumed	104		104
Land	6,646		6,646
Acquisition Date Building, Equipment, and Improvements	13,339		13,339
Fair Value In-Place Customers Leases	365		365
Closing Costs Expensed			$ 389
FL [Member] | Date Of Acquisition, 2/12/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Feb. 12, 2016
Purchase Price	11,274		$ 11,274
Cash Paid			11,270
Net Other Liabilities (Assets) Assumed	4		4
Land	2,294		2,294
Acquisition Date Building, Equipment, and Improvements	8,980		$ 8,980
FL [Member] | Date Of Acquisition, 5/2/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			May 02, 2016
Purchase Price	8,100		$ 8,100
Cash Paid			4,006
Mortgage Assumed	4,036		4,036
Net Other Liabilities (Assets) Assumed	58		58
Land	3,018		3,018
Acquisition Date Building, Equipment, and Improvements	4,922		4,922
Fair Value In-Place Customers Leases	160		160
Closing Costs Expensed			$ 149
FL [Member] | Date Of Acquisition, 9/27/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Sep. 27, 2016
Purchase Price	10,500		$ 10,500
Cash Paid			10,407
Net Other Liabilities (Assets) Assumed	93		93
Land	2,809		2,809
Acquisition Date Building, Equipment, and Improvements	7,523		7,523
Fair Value In-Place Customers Leases	168		168
Closing Costs Expensed			$ 232
CA [Member] | Date Of Acquisition, 1/21/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			4
Date of Acquisition			Jan. 21, 2016
Purchase Price	78,750		$ 78,750
Cash Paid			78,562
Net Other Liabilities (Assets) Assumed	188		188
Land	27,876		27,876
Acquisition Date Building, Equipment, and Improvements	49,860		49,860
Fair Value In-Place Customers Leases	1,014		1,014
Closing Costs Expensed			$ 349
CA [Member] | Date Of Acquisition, 3/16/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			3
Date of Acquisition			Mar. 16, 2016
Purchase Price	68,832		$ 68,832
Cash Paid			63,965
Consideration paid Value of Operating Partnership Units Issued			4,472
Net Other Liabilities (Assets) Assumed	395		395
Land	22,647		22,647
Acquisition Date Building, Equipment, and Improvements	45,371		45,371
Fair Value In-Place Customers Leases	814		814
Closing Costs Expensed			$ 277
CA [Member] | Date Of Acquisition, 3/17/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Mar. 17, 2016
Purchase Price	17,320		$ 17,320
Cash Paid			17,278
Net Other Liabilities (Assets) Assumed	42		42
Land	6,728		6,728
Acquisition Date Building, Equipment, and Improvements	10,339		10,339
Fair Value In-Place Customers Leases	253		253
Closing Costs Expensed			$ 120
CA [Member] | Date Of Acquisition, 4/11/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Apr. 11, 2016
Purchase Price	36,750		$ 36,750
Cash Paid			33,346
Consideration paid Value of Operating Partnership Units Issued			3,295
Net Other Liabilities (Assets) Assumed	109		109
Land	17,445		17,445
Acquisition Date Building, Equipment, and Improvements	18,840		18,840
Fair Value In-Place Customers Leases	465		465
Closing Costs Expensed			$ 129
NH [Member] | Date Of Acquisition, 1/21/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			5
Date of Acquisition			Jan. 21, 2016
Purchase Price	54,225		$ 54,225
Cash Paid			53,941
Net Other Liabilities (Assets) Assumed	284		284
Land	12,902		12,902
Acquisition Date Building, Equipment, and Improvements	40,428		40,428
Fair Value In-Place Customers Leases	895		895
Closing Costs Expensed			$ 596
MA [Member] | Date Of Acquisition, 1/21/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Jan. 21, 2016
Purchase Price	11,375		$ 11,375
Cash Paid			11,350
Net Other Liabilities (Assets) Assumed	25		25
Land	4,874		4,874
Acquisition Date Building, Equipment, and Improvements	6,335		6,335
Fair Value In-Place Customers Leases	166		166
Closing Costs Expensed			$ 69
TX [Member] | Date Of Acquisition, 1/21/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			3
Date of Acquisition			Jan. 21, 2016
Purchase Price	42,050		$ 42,050
Cash Paid			41,894
Net Other Liabilities (Assets) Assumed	156		156
Land	23,487		23,487
Acquisition Date Building, Equipment, and Improvements	18,000		18,000
Fair Value In-Place Customers Leases	563		563
Closing Costs Expensed			$ 263
TX [Member] | Date Of Acquisition, 5/5/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			May 05, 2016
Purchase Price	10,800		$ 10,800
Cash Paid			10,708
Net Other Liabilities (Assets) Assumed	92		92
Land	2,333		2,333
Acquisition Date Building, Equipment, and Improvements	8,302		8,302
Fair Value In-Place Customers Leases	165		165
Closing Costs Expensed			$ 121
AZ [Member] | Date Of Acquisition, 2/1/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Feb. 01, 2016
Purchase Price	9,275		$ 9,275
Cash Paid			9,261
Net Other Liabilities (Assets) Assumed	14		14
Land	988		988
Acquisition Date Building, Equipment, and Improvements	8,224		8,224
Fair Value In-Place Customers Leases	63		63
Closing Costs Expensed			$ 124
PA [Member] | Date Of Acquisition, 2/17/2016[Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Feb. 17, 2016
Purchase Price	5,750		$ 5,750
Cash Paid			5,732
Net Other Liabilities (Assets) Assumed	18		18
Land	1,768		1,768
Acquisition Date Building, Equipment, and Improvements	3,879		3,879
Fair Value In-Place Customers Leases	103		103
Closing Costs Expensed			$ 152
CO [Member] | Date Of Acquisition, 2/29/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Feb. 29, 2016
Purchase Price	12,600		$ 12,600
Cash Paid			12,549
Net Other Liabilities (Assets) Assumed	51		51
Land	4,528		4,528
Acquisition Date Building, Equipment, and Improvements	7,915		7,915
Fair Value In-Place Customers Leases	157		157
Closing Costs Expensed			$ 176
CO [Member] | Date Of Acquisition, 8/4/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Aug. 04, 2016
Purchase Price	8,900		$ 8,900
Cash Paid			8,831
Net Other Liabilities (Assets) Assumed	69		69
Land	5,062		5,062
Acquisition Date Building, Equipment, and Improvements	3,679		3,679
Fair Value In-Place Customers Leases	159		159
Closing Costs Expensed			$ 107
CT [Member] | Date Of Acquisition, 4/14/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			2
Date of Acquisition			Apr. 14, 2016
Purchase Price	17,313		$ 17,313
Cash Paid			17,152
Net Other Liabilities (Assets) Assumed	161		161
Land	6,142		6,142
Acquisition Date Building, Equipment, and Improvements	10,904		10,904
Fair Value In-Place Customers Leases	267		267
Closing Costs Expensed			$ 180
NY [Member] | Date Of Acquisition, 4/26/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			2
Date of Acquisition			Apr. 26, 2016
Purchase Price	24,312		$ 24,312
Cash Paid			20,143
Mortgage Assumed	4,249		4,249
Net Other Liabilities (Assets) Assumed	(80)		(80)
Land	5,710		5,710
Acquisition Date Building, Equipment, and Improvements	18,201		18,201
Fair Value In-Place Customers Leases	401		401
Closing Costs Expensed			$ 348
NY [Member] | Date Of Acquisition, 5/19/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			2
Date of Acquisition			May 19, 2016
Purchase Price	8,400		$ 8,400
Cash Paid			8,366
Net Other Liabilities (Assets) Assumed	34		34
Land	714		714
Acquisition Date Building, Equipment, and Improvements	7,521		7,521
Fair Value In-Place Customers Leases	165		165
Closing Costs Expensed			$ 188
Other States [Member] | Date Of Acquisition, 7/15/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			83
Date of Acquisition			Jul. 15, 2016
Purchase Price	1,299,989		$ 1,299,989
Cash Paid			1,335,332
Net Other Liabilities (Assets) Assumed	(35,343)		(35,343)
Land	150,620		150,620
Acquisition Date Building, Equipment, and Improvements	1,085,979		1,085,979
Fair Value In-Place Customers Leases	46,890		46,890
Trade Name	16,500		16,500
Closing Costs Expensed			$ 25,328
SC [Member] | Date Of Acquisition, 7/29/2016 [Member]
Investment Holdings [Line Items]
Number of Properties | Property			1
Date of Acquisition			Jul. 29, 2016
Purchase Price	8,620		$ 8,620
Cash Paid			8,617
Net Other Liabilities (Assets) Assumed	3		3
Land	920		920
Acquisition Date Building, Equipment, and Improvements	$ 7,700		$ 7,700

XML

Investment in Storage Facilities and Intangible Assets - Schedule of Fair Value of In-Place Customer Lease Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Real Estate [Abstract]
In-place customer leases	$ 75,454	$ 22,320
Accumulated amortization	(37,410)	(21,017)
Net carrying value at the end of period	$ 38,044	$ 1,303

XML

Investment in Storage Facilities and Intangible Assets - Pro Forma Information Based on Combined Historical Financial Statements on Properties Acquired (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Investments Schedule [Abstract]
Total revenues	$ 131,421	$ 120,905	$ 383,991	$ 342,973
Net income attributable to common shareholders	$ 34,946	$ 17,613	$ 121,262	$ 37,764
Basic	$ 0.76	$ 0.38	$ 2.63	$ 0.82
Diluted	$ 0.75	$ 0.38	$ 2.62	$ 0.81

XML

Investment in Storage Facilities and Intangible Assets - Summary of Revenues and Earnings Related to Properties Included in Company's Consolidated Statements of Operations (Detail) - Acquisitions 2016 [Member] - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Business Combination, Separately Recognized Transactions [Line Items]
Total revenues	$ 26,990	$ 38,711
Net loss attributable to common shareholders	$ (37,356)	$ (39,954)

XML

Investment in Storage Facilities and Intangible Assets - Summary of Revenues and Expenses Related to Sale of Properties Included in Company's Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total operating revenues	$ 127,801	$ 95,428	$ 333,929	$ 271,563
Property operations and maintenance expense	(28,382)	(20,954)	(74,396)	(61,001)
Real estate tax expense	(13,102)	(9,247)	(34,670)	(27,311)
Depreciation and amortization expense	$ (41,405)	(14,671)	(76,082)	(43,437)
Gain (loss) on sale of storage facilities			15,270	(7)
Properties Sold In Two Thousand And Fifteen Member
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total operating revenues		1,249	2,324	3,508
Property operations and maintenance expense		(377)	(614)	(1,022)
Real estate tax expense		(72)	(98)	(210)
Depreciation and amortization expense		(197)	(359)	(547)
Gain (loss) on sale of storage facilities			15,270	(7)
Total income from discontinued operations		$ 603	$ 16,523	$ 1,722

XML

Unsecured Line of Credit and Term Notes - Borrowings Outstanding on Unsecured Line of Credit and Term Notes (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Unsecured Line Of Credit And Term Notes [Line Items]
Revolving line of credit borrowings	$ 240,000	$ 79,000
Total term notes payable - gross	1,400,000	750,000
Less: unamortized debt issuance costs	(9,646)	(3,350)
Less: unamortized senior term note discount	(3,235)
Term notes, net of debt issuance costs	1,387,119	746,650
Term Note Due April 26, 2016 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross		150,000
Term Note Due June 4, 2020 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross	325,000	325,000
Term Note Due August 5, 2021 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross	100,000	100,000
Term Note Due April 8, 2024 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross	175,000	$ 175,000
Senior Term Note Due July 1, 2026 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross	600,000
Term Note Due July 21, 2028 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Total term notes payable - gross	$ 200,000

XML

Unsecured Line of Credit and Term Notes - Additional Information (Detail)						9 Months Ended	12 Months Ended
	Jul. 21, 2016 USD ($)	Jun. 20, 2016 USD ($)	May 17, 2016 USD ($) Bridge_Loan	Apr. 26, 2016 USD ($)	Apr. 08, 2014 USD ($)	Sep. 30, 2016 USD ($)	Dec. 31, 2011 USD ($)	Jan. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Unsecured Line Of Credit And Term Notes [Line Items]
Unsecured term note						$ 1,400,000,000			$ 750,000,000
Unsecured term note						150,000,000
Interest expense - bridge financing commitment fee						7,329,000
Interest coverage ratio on debt		150.00%
Unamortized senior term note discount						3,235,000
Underwriting discount and other offering expenses						15,253,000
Bridge Facilities [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Number of bridge facilities | Bridge_Loan			2
Senior unsecured acquisition bridge facilities, amount			$ 1,675,000,000
Interest expense - bridge financing commitment fee						7,300,000
Bridge loan, termination date			Jun. 29, 2016
Maximum [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Leverage ratio percentage		60.00%
Indenture covenant percentage on unencumbered assets		150.00%
Secured Debt [Member] | Maximum [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Leverage ratio percentage		40.00%
Revolving Credit Facility [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Revolving credit limit						$ 500,000,000		$ 300,000,000
Accounting Standards Update 2015-03 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Debt issuance costs									$ 3,400,000
Maturity on December 10, 2019 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Basis spread over LIBOR						1.10%
Facility fee						0.15%
Interest rate, line of credit facility						1.62%			1.72%
Amount available on unsecured line of credit						$ 260,000,000
Line of credit facility, expiration date						Dec. 10, 2019
Maturity on June 4, 2020 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Basis spread over LIBOR						1.15%
Unsecured term note						$ 325,000,000
Maturity in April 8, 2024 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Line of credit facility, expiration date						Apr. 08, 2024
Additional secured term note					$ 175,000,000
Term note stated interest rate						4.533%
Repayment of Lines of Credit					$ 115,000,000
Maturity in April 8, 2024 [Member] | Maximum [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Term note stated interest rate						6.283%
Maturity in August 2021 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Line of credit facility, expiration date						Aug. 05, 2021
Additional secured term note							$ 100,000,000
Term note stated interest rate							5.54%
Maturity in August 2021 [Member] | Maximum [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Term note stated interest rate							7.29%
Maturity in April 2016 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Line of credit facility, expiration date						Apr. 26, 2016
Term note stated interest rate						6.38%
Unsecured term note				$ 150,000,000
Senior Term Note Due July 1, 2026 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Unsecured term note						$ 600,000,000
Senior Term Note Due July 1, 2026 [Member] | Unsecured Senior Notes [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Debt instrument principal amount		$ 600,000,000
Debt instrument percentage		3.50%
Debt instrument percentage discount to par		0.553%
Unamortized senior term note discount		$ 3,300,000
Underwriting discount and other offering expenses		5,500,000
Proceeds from senior notes, net		$ 591,200,000
Term Note Due July 21, 2028 [Member]
Unsecured Line Of Credit And Term Notes [Line Items]
Unsecured term note						$ 200,000,000
Line of credit facility, expiration date	Jul. 21, 2028
Additional secured term note	$ 200,000,000
Term note stated interest rate	3.67%

XML

Mortgages Payable and Debt Maturities - Summary of Mortgage Payable (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Mortgages payable	$ 10,134	$ 1,993
4.065% Mortgage Note Due April 1, 2023 [Member]
Debt Instrument [Line Items]
Mortgages payable	4,229
5.26% Mortgage Note Due November 1, 2023 [Member]
Debt Instrument [Line Items]
Mortgages payable	4,018
5.99% Mortgage Notes Due May 1, 2026 [Member]
Debt Instrument [Line Items]
Mortgages payable	$ 1,887	$ 1,993

XML

Mortgages Payable and Debt Maturities - Summary of Mortgage Payable (Parenthetical) (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2016 USD ($) Facility
4.065% Mortgage Note Due April 1, 2023 [Member]
Debt Instrument [Line Items]
Interest rate	4.065%
Mortgage note due date	Apr. 01, 2023
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 7.6
Effective interest rate	4.26%
5.26% Mortgage Note Due November 1, 2023 [Member]
Debt Instrument [Line Items]
Interest rate	5.26%
Mortgage note due date	Nov. 01, 2023
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 8.2
Effective interest rate	5.52%
5.99% Mortgage Notes Due May 1, 2026 [Member]
Debt Instrument [Line Items]
Interest rate	5.99%
Mortgage note due date	May 01, 2026
Self-storage facilities | Facility	1
Aggregate net book value of property pledged for mortgage note | $	$ 4.3
Effective interest rate	6.25%

XML

Mortgages Payable and Debt Maturities - Summary of Debt Obligation and Interest Rate Derivatives (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Line of credit	$ 240,000	$ 79,000
Term notes, net of debt issuance costs	1,400,000	750,000
Mortgage note, total	10,134	1,993
Interest rate derivatives - liability	19,248	$ 15,343
Line of Credit - Variable Rate LIBOR + 1.10% (1.62% at September 30, 2016) [Member]
Debt Instrument [Line Items]
Payable due 2019	240,000
Line of credit	240,000
Debt instrument, fair value	240,000
Term Note - Variable Rate LIBOR+1.15% (1.68% at September 30, 2016) [Member]
Debt Instrument [Line Items]
Payable due 2020	325,000
Term notes, net of debt issuance costs	325,000
Term note, fair value	325,000
Term Note - Fixed Rate 5.54% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	100,000
Term notes, net of debt issuance costs	100,000
Term note, fair value	113,250
Term Note - Fixed Rate 4.533% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	175,000
Term notes, net of debt issuance costs	175,000
Term note, fair value	192,387
Term Note - Fixed Rate 3.50% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	600,000
Term notes, net of debt issuance costs	600,000
Term note, fair value	616,281
Term Note - Fixed Rate 3.67% [Member]
Debt Instrument [Line Items]
Payables due Thereafter	200,000
Term notes, net of debt issuance costs	200,000
Term note, fair value	204,294
Mortgage Note - Fixed Rate 5.99% [Member]
Debt Instrument [Line Items]
Payable due 2016	35
Payables due 2017	151
Payables due 2018	160
Payable due 2019	170
Payable due 2020	181
Payables due Thereafter	1,190
Mortgage note, total	1,887
Debt instrument, fair value	2,031
Mortgage Note - Fixed Rate 4.065% [Member]
Debt Instrument [Line Items]
Payable due 2016	22
Payables due 2017	88
Payables due 2018	92
Payable due 2019	96
Payable due 2020	99
Payables due Thereafter	3,832
Mortgage note, total	4,229
Debt instrument, fair value	4,205
Mortgage Note - Fixed Rate 5.26% [Member]
Debt Instrument [Line Items]
Payable due 2016	15
Payables due 2017	63
Payables due 2018	67
Payable due 2019	71
Payable due 2020	74
Payables due Thereafter	3,728
Mortgage note, total	4,018
Debt instrument, fair value	$ 4,276

XML

Mortgages Payable and Debt Maturities - Summary of Debt Obligation and Interest Rate Derivatives (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2016
Line of Credit - Variable Rate LIBOR + 1.10% (1.62% at September 30, 2016) [Member]
Debt Instrument [Line Items]
Interest rate at end of period	1.62%
Basis spread over LIBOR	1.10%
Term Note - Variable Rate LIBOR+1.15% (1.68% at September 30, 2016) [Member]
Debt Instrument [Line Items]
Interest rate	1.68%
Basis spread over LIBOR	1.15%
Term Note - Fixed Rate 5.54% [Member]
Debt Instrument [Line Items]
Interest rate	5.54%
Term Note - Fixed Rate 4.533% [Member]
Debt Instrument [Line Items]
Interest rate	4.533%
Term Note - Fixed Rate 3.50% [Member]
Debt Instrument [Line Items]
Interest rate	3.50%
Term Note - Fixed Rate 3.67% [Member]
Debt Instrument [Line Items]
Interest rate	3.67%
Mortgage Note - Fixed Rate 5.99% [Member]
Debt Instrument [Line Items]
Interest rate	5.99%
Mortgage Note - Fixed Rate 4.065% [Member]
Debt Instrument [Line Items]
Interest rate	4.065%
Mortgage Note - Fixed Rate 5.26% [Member]
Debt Instrument [Line Items]
Interest rate	5.26%

XML

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2017	Jun. 20, 2016	Dec. 31, 2015
Derivative [Line Items]
Cash flow hedge ineffectiveness				Ineffectiveness was de minimis for the three and nine months ended September 30, 2016, and 2015.
Derivative notional amount		$ 100,000,000						$ 50,000,000
Realized loss reclassified from accumulated other comprehensive loss to interest expense	$ (1,398,000)		$ (1,226,000)	$ (3,755,000)	$ (3,944,000)
Fair value of interest rate swap agreements, liability	19,248,000			19,248,000				15,343,000
Fair value of interest rate swap agreements, asset								$ 550,000
Net termination cost	19,200,000			19,200,000
Senior Term Note Due July 1, 2026 [Member]
Derivative [Line Items]
Settlement of forward starting swap agreements loss		$ 9,200,000
Amortized period on interest expense		10 years
Interest Expense [Member]
Derivative [Line Items]
Realized loss reclassified from accumulated other comprehensive loss to interest expense	1,200,000		$ 1,200,000	3,500,000	$ 3,900,000
Unsecured Senior Notes [Member] | Senior Term Note Due July 1, 2026 [Member]
Derivative [Line Items]
Debt instrument principal amount							$ 600,000,000
Scenario, Forecast [Member] | Interest Expense [Member]
Derivative [Line Items]
Realized loss reclassified from accumulated other comprehensive loss to interest expense						$ 4,300,000
Interest Rate Swap [Member]
Derivative [Line Items]
Notional amount of variable rate debt swapped	325,000,000			325,000,000
Derivative notional amount	$ 125,000,000			$ 125,000,000

XML

Derivative Financial Instruments - Summary of Interest Rate Swap Agreements (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Derivative [Line Items]
Notional Amount		$ 100,000,000	$ 50,000,000
Interest Rate Swap [Member]
Derivative [Line Items]
Notional Amount	$ 125,000,000
Effective Date	Sep. 01, 2011
Expiration Date	Aug. 01, 2018
Fixed Rate Paid	2.37%
Interest Rate Swap [Member] | London Interbank Offered Rate (LIBOR) [Member]
Derivative [Line Items]
Floating Rate Received	1 month LIBOR
Interest Rate Swap One [Member]
Derivative [Line Items]
Notional Amount	$ 100,000,000
Effective Date	Dec. 30, 2011
Expiration Date	Dec. 29, 2017
Fixed Rate Paid	1.6125%
Interest Rate Swap One [Member] | London Interbank Offered Rate (LIBOR) [Member]
Derivative [Line Items]
Floating Rate Received	1 month LIBOR
Interest Rate Swap Two [Member]
Derivative [Line Items]
Notional Amount	$ 100,000,000
Effective Date	Sep. 04, 2013
Expiration Date	Sep. 04, 2018
Fixed Rate Paid	1.371%
Interest Rate Swap Two [Member] | London Interbank Offered Rate (LIBOR) [Member]
Derivative [Line Items]
Floating Rate Received	1 month LIBOR
Interest Rate Swap Three [Member]
Derivative [Line Items]
Notional Amount	$ 100,000,000
Effective Date	Dec. 29, 2017
Expiration Date	Nov. 29, 2019
Fixed Rate Paid	3.968%
Interest Rate Swap Three [Member] | London Interbank Offered Rate (LIBOR) [Member]
Derivative [Line Items]
Floating Rate Received	1 month LIBOR
Interest Rate Swap Four [Member]
Derivative [Line Items]
Notional Amount	$ 125,000,000
Effective Date	Aug. 01, 2018
Expiration Date	Jun. 01, 2020
Fixed Rate Paid	4.193%
Interest Rate Swap Four [Member] | London Interbank Offered Rate (LIBOR) [Member]
Derivative [Line Items]
Floating Rate Received	1 month LIBOR

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Derivative Financial Instruments - Summary of Changes in AOCL (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Accumulated other comprehensive loss beginning of period	$ (30,863)	$ (14,571)	$ (14,415)	$ (13,005)
Realized loss reclassified from accumulated other comprehensive loss to interest expense	1,398	1,226	3,755	3,944
Unrealized gain (loss) from changes in the fair value of the effective portion of the interest rate swaps	1,533	(5,763)	(17,272)	(10,047)
Loss included in other comprehensive loss	2,931	(4,537)	(13,517)	(6,103)
Accumulated other comprehensive loss end of period	$ (27,932)	$ (19,108)	$ (27,932)	$ (19,108)

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Fair Value Measurements - Assets and Liabilities Carried at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Interest rate swaps, Asset		$ 550
Interest rate swaps, Liability	$ (19,248)	(15,343)
Interest Rate Swap [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Interest rate swaps, Asset		550
Interest rate swaps, Liability	(19,248)	(15,343)
Interest Rate Swap [Member] | Level 2 [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Interest rate swaps, Asset		550
Interest rate swaps, Liability	$ (19,248)	$ (15,343)

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Fair Value Measurements - Additional Information (Detail) - Facility	3 Months Ended	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Number of storage facilities acquired	120	120
Storage Facilities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Number of storage facilities acquired		120

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Investment in Joint Ventures - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016 USD ($) Property	Sep. 30, 2015 USD ($)	Sep. 30, 2016 USD ($) Property	Sep. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($) Property	Dec. 31, 2013 USD ($)	Dec. 31, 2012 USD ($) Property	Dec. 31, 2011 USD ($) Property	Dec. 31, 2008 USD ($) Property
Schedule of Equity Method Investments [Line Items]
Investment at carrying value	$ 66,667,000		$ 66,667,000		$ 62,520,000
Equity in income of joint ventures	$ 882,000	$ 936,000	$ 2,795,000	$ 2,436,000
Sovran HHF Storage Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in unconsolidated joint venture	20.00%		20.00%
Investment at carrying value	$ 43,800,000		$ 43,800,000		44,600,000
Payment for property acquisition						$ 187,200,000				$ 171,500,000
Number of properties owned and managed under twenty-percent stake joint venture | Property	39		39							25
Additional number of properties owned and managed under twenty-percent stake joint venture | Property						14
Contribution of company to joint venture as share in capital						$ 28,600,000		$ 1,200,000		$ 18,600,000
Receipt of return of capital distribution							$ 3,400,000
Excess of investment over net asset due to capitalization of acquisition related costs	$ 1,700,000		$ 1,700,000
Other-than-temporary impairment recorded on investment			0
Sovran HHF Storage Holdings LLC [Member] | Acquisitions 2014 [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital					400,000
Sovran HHF Storage Holdings II LLC [Member]
Schedule of Equity Method Investments [Line Items]
Investment at carrying value	$ 13,600,000		$ 13,600,000		13,900,000
Payment for property acquisition								29,000,000	$ 166,100,000
Contribution of company to joint venture as share in capital					1,700,000			$ 2,400,000	$ 12,800,000
Percentage of variable interest ownership in unconsolidated joint venture			15.00%
Number of properties owned and managed under fifteen-percent stake joint venture | Property	30		30					10	20
Sovran HHF and Sovran HHF II [Member]
Schedule of Equity Method Investments [Line Items]
Management and call center fee as a percentage of revenues	7.00%
Management and call center fee earned	$ 1,300,000	1,300,000	$ 3,800,000	3,600,000
Equity in income of joint ventures	$ 800,000	900,000	$ 2,600,000	2,300,000
Iskalo Office Holdings, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in unconsolidated joint venture	49.00%		49.00%
Equity in income of joint ventures	$ 45,000	$ 58,000	$ 158,000	162,000
Investment liability at carrying value	$ (400,000)		(400,000)		(500,000)
Rent paid during the period			$ 900,000	$ 800,000
Urban Box Coralway Storage, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in unconsolidated joint venture	85.00%		85.00%
Contribution of company to joint venture as share in capital					4,000,000
Management and call center fee as a percentage of revenues			6.00%
Management and call center fee earned			$ 0		0
SNL/Orix 1200 McDonald Ave., LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in unconsolidated joint venture	5.00%		5.00%
Management and call center fee earned			$ 0		0
SNL/Orix 1200 McDonald Ave., LLC [Member] | Common Stock Shares [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital			400,000
SNL/Orix 1200 McDonald Ave., LLC [Member] | Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital			$ 2,300,000
SNL Orix Merrick, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Percentage ownership in unconsolidated joint venture	5.00%		5.00%
Management and call center fee earned			$ 0		$ 0
SNL Orix Merrick, LLC [Member] | Common Stock Shares [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital			400,000
SNL Orix Merrick, LLC [Member] | Preferred Stock [Member]
Schedule of Equity Method Investments [Line Items]
Contribution of company to joint venture as share in capital			$ 2,100,000

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Investment in Joint Ventures - Summary of Unconsolidated Joint Ventures' Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Schedule of Equity Method Investments [Line Items]
Investment in storage facilities, net	$ 3,688,973		$ 3,688,973		$ 2,026,507
Other assets	61,838		61,838		9,048
Total Assets	3,848,116		3,848,116		2,118,822
Mortgages payable	10,134		10,134		1,993
Other liabilities	7,300		7,300
Total Liabilities	1,728,652		1,728,652		898,336
Unaffiliated partners' equity	58		58
Company equity	2,101,410		2,101,410		1,202,315
Total Partners' Equity	2,101,468		2,101,468		$ 1,202,315
Depreciation and amortization of customer list	(41,405)	$ (14,671)	(76,082)	$ (43,437)
Amortization of financing fees			(8,858)	(888)
Income tax expense	(200)	(600)	(900)	(1,700)
Interest expense	(14,647)	$ (9,419)	(32,024)	$ (27,796)
Unconsolidated Joint Ventures [Member]
Schedule of Equity Method Investments [Line Items]
Investment in storage facilities, net	534,541		534,541
Investment in office building, net	5,000		5,000
Other assets	17,928		17,928
Total Assets	557,469		557,469
Due to the Company	767		767
Mortgages payable	222,434		222,434
Other liabilities	9,177		9,177
Total Liabilities	232,378		232,378
Unaffiliated partners' equity	260,581		260,581
Company equity	64,510		64,510
Total Partners' Equity	325,091		325,091
Total Liabilities and Partners' Equity	$ 557,469		557,469
Total revenues			55,533
Property operating expenses			(17,922)
Administrative, management and call center fees			(4,046)
Depreciation and amortization of customer list			(10,179)
Amortization of financing fees			(265)
Income tax expense			(174)
Interest expense			(7,730)
Net income			$ 15,217

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Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Schedule Of Income Taxes [Line Items]
Federal and state income tax expense	$ 200,000	$ 600,000	$ 900,000	$ 1,700,000
Unrecognized tax benefits	0	$ 0	0	0
Interest or penalties related to uncertain tax positions			0	$ 0
Deferred tax liability	$ 1,300,000		$ 1,300,000
Tax Year 2013 [Member]
Schedule Of Income Taxes [Line Items]
Tax years open to examination			2013
Latest Tax Year [Member]
Schedule Of Income Taxes [Line Items]
Tax years open to examination			2015

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Earnings Per Share and Earnings Per Unit - Computation of Basic and Diluted Earnings Per Common Share/Unit (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Numerator:
Net (loss) income attributable to common shareholders/unitholders	$ (4,738)	$ 31,504	$ 67,058	$ 82,487
Denominator:
Denominator for basic (loss) earnings per share/unit - weighted average shares/units	46,139,079	35,700,375	42,176,762	35,135,946
Effect of Dilutive Securities:
Stock options and non-vested stock		217,000	238,000	222,000
Denominator for diluted (loss) earnings per share/unit - adjusted weighted average shares/unit and assumed conversion	46,139,079	35,917,105	42,414,623	35,358,332
Basic (loss) earnings per common share/unit attributable to common shareholders/unitholders	$ (0.10)	$ 0.88	$ 1.59	$ 2.35
Diluted (loss) earnings per common share/unit attributable to common shareholders/unitholders	$ (0.10)	$ 0.88	$ 1.58	$ 2.33
Life Storage LP [Member]
Numerator:
Net (loss) income attributable to common shareholders/unitholders	$ (4,738)	$ 31,504	$ 67,058	$ 82,487
Denominator:
Denominator for basic (loss) earnings per share/unit - weighted average shares/units	46,139,079	35,700,375	42,176,762	35,135,946
Effect of Dilutive Securities:
Stock options and non-vested stock		217,000	238,000	222,000
Denominator for diluted (loss) earnings per share/unit - adjusted weighted average shares/unit and assumed conversion	46,139,079	35,917,105	42,414,623	35,358,332
Basic (loss) earnings per common share/unit attributable to common shareholders/unitholders	$ (0.10)	$ 0.88	$ 1.59	$ 2.35
Diluted (loss) earnings per common share/unit attributable to common shareholders/unitholders	$ (0.10)	$ 0.88	$ 1.58	$ 2.33

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Earnings Per Share and Earnings Per Unit - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the effect of dilutive securities	270,298	139,518	110,757	157,383
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities not included in the effect of dilutive securities	95,706	11,000		7,333

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Shareholders' Equity - Reconciliation of Changes in Parent Company's Total Shareholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity [Abstract]
Beginning balance			$ 1,202,315
Net proceeds from the issuance of common stock			944,872
Conversion of operating partnership units to common shares			4,795
Exercise of stock options			0
Earned portion of non-vested stock			5,515
Stock option expense	$ 4	$ 46	85	$ 163
Deferred compensation-directors			68
Adjustment to redemption value on noncontrolling redeemable Operating Partnership units			2,907
Net income attributable to common shareholders	(4,738)	$ 31,504	67,058	$ 82,487
Amortization of terminated hedge included in AOCL			229
Change in fair value of derivatives			(13,746)
Dividends			(112,688)
Ending balance	$ 2,101,410		$ 2,101,410

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Shareholders' Equity - Additional Information (Detail) - USD ($)			9 Months Ended
	May 25, 2016	Jan. 20, 2016	Sep. 30, 2016	Sep. 30, 2015	May 12, 2014
Stockholders Equity [Line Items]
Common stock shares issued under equity offering program	6,900,000	2,645,000
Common stock, price per share, public offering	$ 100.00	$ 105.75
Proceeds from issuance of common stock	$ 665,400,000	$ 269,700,000
Common stock value authorized under equity offering program					$ 225,000,000
Shares issued under dividend reinvestment plan			94,050	105,876
Equity Program [Member]
Stockholders Equity [Line Items]
Common stock shares issued under equity offering program				499,911
Proceeds from issuance of common stock				$ 46,500,000
Common stock, value reserved for future issuance			$ 59,300,000
Weighted average issue price of common stock				$ 94.29
Equity Program [Member] | Jefferies LLC and Piper Jaffray & Co. [Member]
Stockholders Equity [Line Items]
Offering related costs and commissions				$ 600,000

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Partners' Capital - Reconciliation of Change in Total Partners' Capital (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Partners Capital [Line Items]
Net proceeds from the issuance of partnership units			$ 944,872
Conversion of operating partnership units to common shares			4,795
Exercise of stock options			0
Earned portion of non-vested stock			5,515
Stock option expense	$ 4	$ 46	85	$ 163
Deferred compensation-directors			68
Adjustment to redemption value on limited partners' redeemable capital interests			2,907
Net income attributable to common unitholders	(4,738)	31,504	67,058	82,487
Amortization of terminated hedge included in AOCL			229
Change in fair value of derivatives			(13,746)
Life Storage LP [Member]
Partners Capital [Line Items]
Beginning balance of total controlling partners' capital			1,202,315
Net proceeds from the issuance of partnership units			944,872
Conversion of operating partnership units to common shares			4,795
Exercise of stock options			0
Earned portion of non-vested stock			5,515
Stock option expense			85	163
Deferred compensation-directors			68
Adjustment to redemption value on limited partners' redeemable capital interests			2,907
Net income attributable to common unitholders	(4,738)	$ 31,504	67,058	$ 82,487
Amortization of terminated hedge included in AOCL			229
Change in fair value of derivatives			(13,746)
Distributions			(112,688)
Ending balance of total controlling partners' capital	$ 2,101,410		$ 2,101,410

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Commitments and Contingencies - Additional Information (Detail) $ in Millions	Sep. 30, 2016 USD ($) Facility
Commitments and Contingencies Disclosure [Abstract]
Number of self-storage facilities under contract to be purchased | Facility	7
Payment for self-storage facilities under contract | $	$ 85.6

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Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		9 Months Ended
	Oct. 26, 2016	Sep. 30, 2016	Oct. 04, 2016
Subsequent Event [Line Items]
Dividend declared, date		Oct. 04, 2016
Dividend paid, date		Oct. 26, 2016
Dividend record, date		Oct. 14, 2016
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividend per common share			$ 0.95
Dividend paid	$ 43.9