Gain on sale

  
EXTRA SPACE STORAGE INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited) (continued)Amounts in thousands, except store and share data, unless otherwise stated  
Dispositions  
The Company disposed of two previously held for sale stores during the three months ended June 30, 2022, for approximately $38.7 million, resulting in a gain of $14.2 million. 8.    INVESTMENTS IN UNCONSOLIDATED REAL ESTATE ENTITIESInvestments in unconsolidated real estate entities and cash distributions in unconsolidated real estate ventures represent the Company's interest in preferred stock of SmartStop Self Storage REIT, Inc. ("SmartStop") and the Company's noncontrolling interest in real estate joint ventures that own stores. The Company accounts for its investment in SmartStop preferred stock, which does not have a readily determinable fair value, at the transaction price less impairment, if any. The Company accounts for its investments in joint ventures using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for cash contributions, distributions and net equity in income or loss, which is allocated in accordance with the provisions of the applicable partnership or joint venture agreement.In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash or profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash or profits than its equity interest.  
The Company separately reports investments with net equity less than zero in cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company's investment in and share of income from these joint ventures. This is generally the result of financing distributions, capital events or operating distributions that are usually greater than net income, as net income includes non-cash charges for depreciation and amortization while distributions do not.Net investments in unconsolidated real estate ventures and cash distributions in unconsolidated real estate ventures consist of the following:

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|   | Number of Stores |  | Equity Ownership % |  | Excess Profit % (1) |  | June 30, |  | December 31, |
|   | 2022 |  | 2021 |
| PRISA Self Storage LLC  | 85 |  | 4% |  | 4% |  | $ | 8,670  |  |  | $ | 8,792  |  |
| Storage Portfolio II JV LLC  | 36 |  | 10% |  | 30% |  | (6,675) |  |  | (6,116) |  |
| Storage Portfolio IV JV LLC | 32 |  | 10% |  | 30% |  | 49,861  |  |  | 40,174  |  |
| Storage Portfolio I LLC  | 24 |  | 34% |  | 49% |  | (40,456) |  |  | (40,168) |  |
| PR II EXR JV LLC | 23 |  | 25% |  | 25% |  | 111,125  |  |  | 70,403  |  |
| ESS-CA TIVS JV LP | 16 |  | 55% |  | 60% |  | 31,787  |  |  | 32,288  |  |
| VRS Self Storage, LLC  | 16 |  | 45% |  | 54% |  | (15,083) |  |  | (14,269) |  |
| ESS-NYFL JV LP | 11 |  | 16% |  | 24% |  | 11,582  |  |  | 11,796  |  |
| Extra Space Northern Properties Six LLC | 10 |  | 10% |  | 35% |  | (3,162) |  |  | (3,029) |  |
| Alan Jathoo JV LLC | 9 |  | 10% |  | 10% |  | 7,506  |  |  | 7,621  |  |
| ESS Bristol Investments LLC | 8 |  | 10% |  | 30% |  | 2,148  |  |  | 2,628  |  |
| ACPF-EXR JV LLC | 8 |  | 10% |  | 30% |  | 11,225  |  |  | —  |  |
| PR EXR Self Storage, LLC | 5 |  | 25% |  | 40% |  | 58,913  |  |  | 59,393  |  |
| Storage Portfolio III JV LLC | 5 |  | 10% |  | 30% |  | 5,533  |  |  | 5,596  |  |
| Other unconsolidated real estate ventures | 16 |  | 20-50% |  | 20-50% |  | 46,420  |  |  | 18,635  |  |
| SmartStop Self Storage REIT, Inc. Preferred Stock (2) | n/a |  | n/a |  | n/a |  | 200,000  |  |  | 200,000  |  |
| Net Investments in and Cash distributions in unconsolidated real estate entities | 304 |  |  |  |  |  | $ | 479,394  |  |  | $ | 393,744  |  |

(1) Includes pro-rata equity ownership share and maximum potential promoted interest.20
