Real Estate Facilities (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Activity in Real Estate Facilities

The following summarizes the activity in real estate facilities during the nine months ended September 30, 2020:

Real estate facilities
Balance at December 31, 2019	$	261,382,288
Real estate facility acquisitions		33,987,389
Improvements and additions		1,872,731
Balance at September 30, 2020	$	297,242,408
Accumulated depreciation
Balance at December 31, 2019	$	(6,742,793	)
Depreciation expense		(5,764,652	)
Balance at September 30, 2020	$	(12,507,445	)

Summary of Purchase Price Allocations for Acquisitions

The following table summarizes the purchase price allocations for our acquisitions during the nine months ended September 30, 2020:

Property	Acquisition Date	Real Estate Assets		Intangibles		Total⁽²⁾		2020 Revenue⁽³⁾		2020 Property Operating Income (Loss)⁽³⁾⁽⁴⁾
Escondido –CA⁽¹⁾	01/17/20	$	17,568,907	$	—	$	17,568,907	$	184,986	$	(178,568	)
Punta Gorda –FL	06/18/20	$	16,418,482	$	444,000	$	16,862,482	$	287,140	$	149,769
		$	33,987,389	$	444,000	$	34,431,389	$	472,126	$	(28,799	)

⁽¹⁾

The Escondido Property is a newly developed self storage facility that was acquired upon issuance of the certificate of occupancy. In conjunction with the acquisition, our approximately $2.3 million net preferred equity investment in the entity that developed the Escondido Property along with the preferred return was redeemed as a reduction to the purchase price. Such investment had an annual preferred return of 8% that was paid quarterly with an additional 4% preferred return that was redeemed at the close of the property. We accounted for this preferred equity investment using the equity method of accounting and it was included in other assets in the accompanying consolidated balance sheet as of December 31, 2019.

⁽²⁾	^{The allocations noted above are based on a determination of the relative fair value of the total consideration provided and represents the amount paid for the transaction, including capitalized acquisition costs.}

⁽³⁾	The operating results of the facilities acquired above have been included in our consolidated statement of operations since their respective acquisition dates.

⁽⁴⁾	^{Property operating income (loss) excludes corporate general and administrative expenses, asset management fees, depreciation, amortization, and acquisition expenses.}

Strategic Storage Trust IV, Inc. 10-Q