5. Goodwill and Other Intangible Assets
Goodwill and other intangible assets consisted of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At December 31, 2025 | | At December 31, 2024 |
| Gross Book Value | | Accumulated Amortization | | Net Book Value | | Gross Book Value | | Accumulated Amortization | | Net Book Value |
| | | | | | | | | | | |
| (Amounts in thousands) |
| | | | | | | | | | | |
| Goodwill | $ | 165,843 | | | $ | — | | | $ | 165,843 | | | $ | 165,843 | | | $ | — | | | $ | 165,843 | |
| Shurgard® Trade Name | 18,824 | | | — | | | 18,824 | | | 18,824 | | | — | | | 18,824 | |
| Finite-lived intangible assets, subject to amortization | 1,071,488 | | | (1,004,542) | | | 66,946 | | | 1,008,111 | | | (910,591) | | | 97,520 | |
| Total goodwill and other intangible assets | $ | 1,256,155 | | | $ | (1,004,542) | | | $ | 251,613 | | | $ | 1,192,778 | | | $ | (910,591) | | | $ | 282,187 | |
Finite-lived intangible assets consist primarily of acquired customers in place. Amortization expense related to intangible assets subject to amortization was $94.0 million, $117.6 million and $82.7 million in 2025, 2024, and 2023, respectively. During 2025, 2024, and 2023, intangibles increased $63.4 million, $12.5 million, and $237.5 million, respectively, in connection with the acquisition of real estate facilities and Simply Acquisition (Note 3).
The remaining amortization expense will be recognized over a weighted average life of approximately 1.2 years. The estimated future amortization expense for our finite-lived intangible assets at December 31, 2025 is as follows:
| | | | | | | | |
| Year | | Amount |
| | |
| (Amounts in Thousands) |
| | |
| 2026 | | $ | 51,993 | |
| 2027 | | 10,545 | |
| 2028 | | 965 | |
| 2029 | | 212 | |
| 2030 | | 212 | |
| Thereafter | | 3,019 | |
| Total | | $ | 66,946 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.