Quarterly report pursuant to Section 13 or 15(d)

Related party transactions

v3.22.2
Related party transactions
6 Months Ended
Jun. 30, 2022
Related Party Transactions [Abstract]  
Related party transactions Related party transactions
We manage certain industrial, office and retail facilities in the United States for PS under either the “Public Storage” or “PS Business Parks” names (the “PS Management Agreement”). Under PS’s supervision, we coordinate and assist in rental and marketing activities, property maintenance and other operational activities, including the selection of vendors, suppliers, employees and independent contractors. We receive a management fee based upon a percentage of revenues, which is included in interest and other income on our consolidated statements of income. Management fee revenues were $0.1 million for each of the three and six months ended June 30, 2022 and 2021.We allocate certain operating expenses to PS related to the management of these properties, including payroll and other business expenses, totaling $0.1 million for each of the three months ended June 30, 2022 and 2021, and $0.1 million and $0.2 million for the six months ended June 30, 2022 and 2021, respectively.
The PS Business Parks name and logo are owned by PS and licensed to us under a non-exclusive, royalty-free license agreement. The license can be terminated by either party for any reason with six months written notice.
PS provides us property management services for the self-storage component of two assets we own and operates them under the “Public Storage” name. Either the Company or PS can cancel the property management contract upon 60 days’ notice. Under our supervision, PS coordinates and assists in rental and marketing activities, and property maintenance and other operational activities, including the selection of vendors, suppliers, employees and independent contractors. Management fee expenses were less than $0.1 million for each of the three months ended June 30, 2022 and 2021, and $0.1 million for each of the six months ended June 30, 2022 and 2021. Additionally, PS allocated certain operating expenses to us related to the management of these properties totaling less than $0.1 million for each of the three and six months ended June 30, 2022 and 2021. These amounts are included under cost of operations on our consolidated statements of income.
Pursuant to a cost sharing agreement, we share certain administrative services, corporate office space, and certain other third party costs with PS which are allocated based upon fair and reasonable estimates of the cost of the services expected to be provided. We reimbursed PS $0.3 million and $0.2 million for costs PS incurred on our behalf for the three months ended June 30, 2022 and 2021, respectively, and $0.5 million for each of the six months ended June 30, 2022 and 2021. PS reimbursed us less than $0.1 million for costs we incurred on their behalf for each of the three and six months ended June 30, 2022 and 2021.
The Company had net amounts due to PS of $0.1 million and due from PS of $0.2 million at June 30, 2022 and December 31, 2021, respectively, for these contracts.
Refer to Note 12 for information regarding the Support Agreement entered into by PS with affiliates of Blackstone and (for certain limited purposes) the Company, pursuant to which PS agreed, among other things, to vote in favor of the mergers described in the Merger Agreement.