Annual report pursuant to Section 13 and 15(d)

Acquisitions

v3.20.2
Acquisitions
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Acquisitions

4. ACQUISITIONS

 

In November 2019 the Company acquired a self storage property. The acquisition of the property was accounted for as an asset acquisition. The cost of the property, including closing costs, was assigned to land, buildings, equipment, and in-place customer leases based on their relative fair values.

 

The purchase price of the property acquired in 2019 has been assigned as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Consideration Paid

 

 

Acquisition Date Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assumed

 

 

 

 

 

 

 

 

 

 

In-Place

 

 

Closing

 

 

 

Number of

 

Date of

 

Purchase

 

 

 

 

 

 

(Assets

 

 

 

 

 

 

Building and

 

 

Customer

 

 

Costs

 

State

 

Properties

 

Acquisition

 

Price

 

 

Cash Paid

 

 

Acquired)

 

 

Land

 

 

Equipment

 

 

Leases

 

 

Expensed

 

NY

 

1

 

11/19/2019

 

$

6,282,514

 

 

$

6,287,082

 

 

$

(4,568

)

 

$

628,251

 

 

$

5,240,825

 

 

$

413,438

 

 

$

 

Total

 

 

 

 

 

$

6,282,514

 

 

$

6,287,082

 

 

$

(4,568

)

 

$

628,251

 

 

$

5,240,825

 

 

$

413,438

 

 

$

 

 

The Company measures the fair value of in-place customer lease intangible assets based on the Company’s experience with customer turnover and the estimated 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). Amortization expense related to in-place customer leases was $14,643 and $0 for the years ended December 31, 2019 and 2018, respectively.

 

The following table summarizes the Company’s revenue and earnings associated with the 2019 acquisition from the acquisition date, that are included in the consolidated statements of operations for the year ended December 31, 2019:

 

 

 

Year Ended

 

 

 

December 31, 2019

 

Total revenue

 

$

60,244

 

Net loss

 

 

(7,484

)