Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 28, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 001-32324 | |
Entity Registrant Name | CUBESMART | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1024732 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. Malvern | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Title of 12(b) Security | Common Shares, $0.01 par value per share, of CubeSmart | |
Trading Symbol | CUBE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 201,770,107 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001298675 | |
Amendment Flag | false | |
Cubesmart, L P and Subsidiaries | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Entity File Number | 000-54462 | |
Entity Registrant Name | CUBESMART, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1837021 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001300485 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Storage properties | $ 5,536,376 | $ 5,489,754 |
Less: Accumulated depreciation | (1,026,337) | (983,940) |
Storage properties, net (including VIE assets of $132,927 and $119,345, respectively) | 4,510,039 | 4,505,814 |
Cash and cash equivalents | 3,989 | 3,592 |
Restricted cash | 2,238 | 2,637 |
Loan procurement costs, net of amortization | 2,836 | 3,275 |
Investment in real estate ventures, at equity | 97,301 | 92,071 |
Other assets, net | 154,829 | 170,753 |
Total assets | 4,771,232 | 4,778,142 |
LIABILITIES AND EQUITY | ||
Unsecured senior notes, net | 2,031,626 | 2,030,372 |
Revolving credit facility | 24,600 | 117,800 |
Mortgage loans and notes payable, net | 170,025 | 216,504 |
Accounts payable, accrued expenses and other liabilities | 176,854 | 159,140 |
Lease liabilities - finance leases | 65,798 | 65,599 |
Distributions payable | 71,277 | 68,301 |
Deferred revenue | 32,519 | 29,087 |
Security deposits | 1,083 | 1,077 |
Total liabilities | 2,573,782 | 2,687,880 |
Noncontrolling interests in the Operating Partnership | 337,417 | 249,414 |
Commitments and contingencies | ||
Equity | ||
Common shares $.01 par value, 400,000,000 shares authorized, 201,768,903 and 197,405,989 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 2,018 | 1,974 |
Additional paid-in capital | 2,961,696 | 2,805,673 |
Accumulated other comprehensive loss | (594) | (632) |
Accumulated deficit | (1,116,596) | (974,799) |
Total CubeSmart shareholders' equity | 1,846,524 | 1,832,216 |
Noncontrolling interests in subsidiaries | 13,509 | 8,632 |
Total equity | 1,860,033 | 1,840,848 |
Total liabilities and equity | $ 4,771,232 | $ 4,778,142 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Storage properties | $ 4,510,039 | $ 4,505,814 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 400,000,000 | 400,000,000 |
Common shares, shares issued | 201,768,903 | 197,405,989 |
Common shares, shares outstanding | 201,768,903 | 197,405,989 |
VIE | ||
Storage properties | $ 132,927 | $ 119,345 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Rental income | $ 170,359 | $ 140,484 | $ 332,835 | $ 281,469 |
Total revenues | 199,247 | 163,798 | 388,088 | 327,879 |
OPERATING EXPENSES | ||||
Property operating expenses | 63,751 | 55,345 | 124,979 | 111,085 |
Depreciation and amortization | 54,139 | 39,893 | 107,949 | 80,731 |
General and administrative | 11,560 | 9,543 | 22,476 | 19,908 |
Total operating expenses | 129,450 | 104,781 | 255,404 | 211,724 |
Interest: | ||||
Interest expense on loans | (19,112) | (18,702) | (38,346) | (37,383) |
Loan procurement amortization expense | (1,012) | (753) | (2,047) | (1,507) |
Equity in earnings (losses) of real estate ventures | 316 | (174) | 336 | (179) |
Other | 377 | (456) | 1,054 | 163 |
Total other expense | (19,431) | (20,085) | (39,003) | (38,906) |
NET INCOME | 50,366 | 38,932 | 93,681 | 77,249 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interests in the Operating Partnership | (1,768) | (389) | (3,317) | (772) |
Noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 48,752 | $ 38,505 | $ 90,484 | $ 76,401 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
Weighted average basic shares outstanding (in shares) | 201,414 | 193,629 | 200,293 | 193,605 |
Weighted average diluted shares outstanding (in shares) | 202,809 | 194,192 | 201,527 | 194,231 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 21,218 | $ 16,522 | $ 40,522 | $ 33,424 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 7,670 | $ 6,792 | $ 14,731 | $ 12,986 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME | $ 50,366 | $ 38,932 | $ 93,681 | $ 77,249 |
Other comprehensive income (loss): | ||||
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
OTHER COMPREHENSIVE INCOME | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 50,386 | 38,952 | 93,721 | 77,289 |
Comprehensive income attributable to noncontrolling interests in the Operating Partnership | (1,769) | (389) | (3,319) | (772) |
Comprehensive income attributable to noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 48,771 | $ 38,525 | $ 90,522 | $ 76,441 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total Shareholders' Equity | Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Noncontrolling Interest in Subsidiaries | Noncontrolling Interests in Operating Partnership | Total |
Balance at Dec. 31, 2019 | $ 1,799,346 | $ 1,936 | $ 2,674,745 | $ (729) | $ (876,606) | $ 7,990 | $ 1,807,336 | |
Balance (in shares) at Dec. 31, 2019 | 193,557 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2019 | $ 62,088 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interests in subsidiaries | (59) | (59) | ||||||
Issuance of common shares, net | (118) | (118) | (118) | |||||
Issuance of restricted shares (in shares) | 30 | |||||||
Amortization of restricted shares | 710 | 710 | 710 | |||||
Share compensation expense | 530 | 530 | 530 | |||||
Adjustment for noncontrolling interest in the Operating Partnership | 7,976 | 7,976 | (7,976) | 7,976 | ||||
Net income (loss) | 37,896 | 37,896 | 38 | 37,934 | ||||
Net income (loss) | 383 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (64,039) | (64,039) | (650) | (64,039) | ||||
Balance at Mar. 31, 2020 | 1,782,321 | $ 1,936 | 2,675,867 | (709) | (894,773) | 7,969 | 1,790,290 | |
Balance (in shares) at Mar. 31, 2020 | 193,587 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2020 | 53,845 | |||||||
Balance at Dec. 31, 2019 | 1,799,346 | $ 1,936 | 2,674,745 | (729) | (876,606) | 7,990 | 1,807,336 | |
Balance (in shares) at Dec. 31, 2019 | 193,557 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2019 | 62,088 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Adjustment for noncontrolling interest in the Operating Partnership | (4,200) | |||||||
Balance at Dec. 31, 2020 | 1,832,216 | $ 1,974 | 2,805,673 | (632) | (974,799) | 8,632 | 1,840,848 | |
Balance (in shares) at Dec. 31, 2020 | 197,406 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2020 | 249,414 | 249,414 | ||||||
Balance at Mar. 31, 2020 | 1,782,321 | $ 1,936 | 2,675,867 | (709) | (894,773) | 7,969 | 1,790,290 | |
Balance (in shares) at Mar. 31, 2020 | 193,587 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2020 | 53,845 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interests in subsidiaries | (42) | (42) | ||||||
Issuance of common shares, net | (70) | (70) | (70) | |||||
Issuance of restricted shares (in shares) | 28 | |||||||
Conversion from units to shares | $ 2,824 | $ 1 | $ 2,823 | (2,824) | $ 2,824 | |||
Conversion from units to shares (in shares) | 100 | |||||||
Exercise of stock options (in shares) | 135 | 14 | 135 | 135 | ||||
Amortization of restricted shares | $ 1,249 | $ 1,249 | $ 1,249 | |||||
Share compensation expense | 464 | 464 | 464 | |||||
Adjustment for noncontrolling interest in the Operating Partnership | (615) | (615) | 615 | (615) | ||||
Net income (loss) | 38,505 | 38,505 | 38 | 38,543 | ||||
Net income (loss) | 389 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (64,081) | (64,081) | (618) | (64,081) | ||||
Balance at Jun. 30, 2020 | 1,760,752 | $ 1,937 | 2,680,468 | (689) | (920,964) | 7,965 | 1,768,717 | |
Balance (in shares) at Jun. 30, 2020 | 193,729 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2020 | 51,407 | |||||||
Balance at Dec. 31, 2020 | 1,832,216 | $ 1,974 | 2,805,673 | (632) | (974,799) | 8,632 | 1,840,848 | |
Balance (in shares) at Dec. 31, 2020 | 197,406 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2020 | 249,414 | 249,414 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interests in subsidiaries | (69) | (69) | ||||||
Issuance of common shares, net | 99,688 | $ 28 | 99,660 | 99,688 | ||||
Issuance of common shares, net (in shares) | 2,837 | |||||||
Issuance of restricted shares (in shares) | 32 | |||||||
Conversion from units to shares | 1,913 | $ 1 | 1,912 | (1,913) | 1,913 | |||
Conversion from units to shares (in shares) | 55 | |||||||
Exercise of stock options | 1,172 | $ 1 | 1,171 | 1,172 | ||||
Exercise of stock options (in shares) | 92 | |||||||
Amortization of restricted shares | 705 | 705 | 705 | |||||
Share compensation expense | 609 | 609 | 609 | |||||
Adjustment for noncontrolling interest in the Operating Partnership | (32,102) | (32,102) | 32,102 | (32,102) | ||||
Net income (loss) | 41,732 | 41,732 | 34 | 41,766 | ||||
Net income (loss) | 1,549 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (68,350) | (68,350) | (2,504) | (68,350) | ||||
Balance at Mar. 31, 2021 | 1,877,602 | $ 2,004 | 2,909,730 | (613) | (1,033,519) | 8,597 | 1,886,199 | |
Balance (in shares) at Mar. 31, 2021 | 200,422 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2021 | 278,649 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interests in subsidiaries | 5,104 | 5,104 | ||||||
Distributions paid to noncontrolling interests in subsidiaries | (38) | (38) | ||||||
Issuance of common shares, net | 42,429 | $ 11 | 42,418 | 42,429 | ||||
Issuance of common shares, net (in shares) | 1,046 | |||||||
Issuance of restricted shares (in shares) | 31 | |||||||
Conversion from units to shares | 3,549 | $ 1 | 3,548 | (3,549) | 3,549 | |||
Conversion from units to shares (in shares) | 81 | |||||||
Exercise of stock options | 4,075 | $ 2 | 4,073 | 4,075 | ||||
Exercise of stock options (in shares) | 189 | |||||||
Amortization of restricted shares | 1,383 | 1,383 | 1,383 | |||||
Share compensation expense | 544 | 544 | 544 | |||||
Adjustment for noncontrolling interest in the Operating Partnership | (63,025) | (63,025) | 63,025 | (63,025) | ||||
Net income (loss) | 48,752 | 48,752 | (154) | 48,598 | ||||
Net income (loss) | 1,768 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (68,804) | (68,804) | (2,477) | (68,804) | ||||
Balance at Jun. 30, 2021 | $ 1,846,524 | $ 2,018 | $ 2,961,696 | $ (594) | $ (1,116,596) | $ 13,509 | 1,860,033 | |
Balance (in shares) at Jun. 30, 2021 | 201,769 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2021 | $ 337,417 | $ 337,417 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||||||
Common share distributions (in dollars per share) | $ 0.34 | $ 0.34 | $ 0.33 | $ 0.33 | $ 0.68 | $ 0.66 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net income (loss) | $ 93,681 | $ 77,249 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 109,996 | 82,238 |
Non-cash portion of interest expense related to finance leases | 199 | |
Equity in (earnings) losses of real estate ventures | (336) | 179 |
Equity compensation expense | 4,043 | 3,603 |
Accretion of fair market value adjustment of debt | (1,120) | (354) |
Changes in other operating accounts: | ||
Other assets | (11,935) | 324 |
Accounts payable and accrued expenses | 19,439 | 23,940 |
Other liabilities | 3,391 | 1,336 |
Net cash provided by operating activities | 217,358 | 188,515 |
Investing Activities | ||
Acquisitions of storage properties | (31,516) | (72,814) |
Additions and improvements to storage properties | (18,506) | (30,772) |
Development costs | (33,054) | (18,180) |
Investment in real estate ventures | (11,749) | (5,908) |
Cash distributed from real estate ventures | 6,855 | 3,149 |
Net cash used in investing activities | (87,970) | (124,525) |
Proceeds from: | ||
Revolving credit facility | 422,756 | 127,217 |
Principal payments on: | ||
Revolving credit facility | (515,956) | (111,817) |
Mortgage loans and notes payable | (45,217) | (1,262) |
Proceeds from issuance of common shares, net | 142,117 | (188) |
Cash paid upon vesting of restricted shares | (802) | (650) |
Exercise of stock options | 5,247 | 135 |
Contributions from noncontrolling interests in subsidiaries | 1,731 | |
Distributions paid to noncontrolling interests in subsidiaries | (107) | (101) |
Distributions paid to common shareholders | (135,722) | (128,074) |
Distributions paid to noncontrolling interests in Operating Partnership | (3,437) | (1,299) |
Net cash provided by financing activities | (129,390) | (116,039) |
Change in cash, cash equivalents and restricted cash | (2) | (52,049) |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 6,227 | |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 38,824 | 37,726 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (2,623) | |
Accretion of put liability | 4,889 | 1,792 |
Derivative valuation adjustment | 40 | $ 40 |
Contributions from noncontrolling interests in subsidiaries | $ 3,373 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
ORGANIZATION AND NATURE OF OPERATIONS | |
ORGANIZATION AND NATURE OF OPERATIONS | 1. ORGANIZATION AND NATURE OF OPERATIONS CubeSmart (the “Parent Company”) operates as a self-managed and self-administered real estate investment trust (“REIT”) with its operations conducted solely through CubeSmart, L.P. and its subsidiaries. CubeSmart, L.P., a Delaware limited partnership (the “Operating Partnership”), operates through an umbrella partnership structure, with the Parent Company, a Maryland REIT, as its sole general partner. In the notes to the consolidated financial statements, we use the terms “the Company”, “we” or “our” to refer to the Parent Company and the Operating Partnership together, unless the context indicates otherwise. As of June 30, 2021, the Company owned (or partially owned and consolidated) self-storage properties located in 24 states throughout the United States and the District of Columbia that are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage properties. As of June 30, 2021, the Parent Company owned approximately 96.5% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time following a specified restricted period for cash equal to the fair value of an equivalent number of common shares of the Parent Company. In lieu of delivering cash, however, the Parent Company, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Parent Company so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Parent Company’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Parent Company issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Parent Company an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT”. The Company typically experiences seasonal fluctuations in the occupancy levels of its stores, which are generally slightly higher during the summer months due to increased moving activity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2020, which are included in the Parent Company’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-06 – Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of certain settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. The standard is effective on January 1, 2022, with early adoption permitted, but only as of the beginning of an entity’s annual fiscal year. The standard is not expected to have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES
STORAGE PROPERTIES | 6 Months Ended |
Jun. 30, 2021 | |
STORAGE PROPERTIES | |
STORAGE FACILITIES | 3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: June 30, December 31, 2021 2020 (in thousands) Land $ 1,113,737 $ 1,093,503 Buildings and improvements 4,197,607 4,122,995 Equipment 123,199 123,044 Construction in progress 60,419 108,316 Right-of-use assets - finance leases 41,414 41,896 Storage properties 5,536,376 5,489,754 Less: Accumulated depreciation (1,026,337) (983,940) Storage properties, net $ 4,510,039 $ 4,505,814 The following table summarizes the Company’s acquisition and disposition activity during the period beginning on January 1, 2020 through June 30, 2021. Number of Purchase / Sale Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2021 Acquisitions: Minnesota Asset (1) Minneapolis-St. Paul-Bloomington, MN-WI April 2021 1 $ 12,000 Maryland Asset Baltimore-Towson, MD June 2021 1 22,075 2 $ 34,075 2020 Acquisitions: Texas Asset San Antonio, TX February 2020 1 $ 9,025 Maryland Asset Baltimore-Towson, MD April 2020 1 17,200 New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA April 2020 1 48,450 Florida Asset Palm Bay-Melbourne-Titusville, FL November 2020 1 3,900 Texas Asset Austin-Round Rock, TX November 2020 1 10,750 Texas Asset Dallas-Fort Worth-Arlington, TX November 2020 1 10,150 Nevada Asset Las Vegas-Paradise, NV December 2020 1 16,800 New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 6,750 Florida Asset Tampa-St. Petersburg-Clearwater, FL December 2020 1 10,000 Virginia Asset Washington-Arlington-Alexandria, DC-VA-MD-WV December 2020 1 17,350 Storage Deluxe Assets New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 8 540,000 Florida Assets Orlando-Kissimmee, FL / Deltona-Daytona Beach-Ormond Beach, FL December 2020 3 45,500 21 $ 735,875 2020 Disposition: New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 $ 12,750 1 $ 12,750 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. |
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT ACTIVITY | |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY 2021 Acquisitions During the three and six months ended June 30, 2021, the Company acquired a store in Maryland for a purchase price of approximately $22.1 million. In addition, a consolidated joint venture in which the Company holds a 50% interest acquired a store in Minnesota for a purchase price of $12.0 million (see note 13). In connection with these transactions, which were accounted for as asset acquisitions, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $1.6 million at the time of the acquisitions and prior to amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the three and six months ended June 30, 2021 was approximately $49,000 . As of June 30, 2021, the Company had made aggregate deposits of approximately $0.4 million associated with two stores that were under contract to be acquired for an aggregate acquisition price of $33.0 million (see note 18). The deposits are reflected in Other assets, net on the Company’s consolidated balance sheets. 2020 Acquisitions The Company acquired a portfolio of eight stores located in the outer boroughs of New York City (the “Storage Deluxe Assets”), in two separate tranches during December 2020, for an aggregate purchase price of $540.0 million. In connection with the acquisition of the Storage Deluxe Assets, the Company assumed six mortgage loans with an aggregate outstanding principal amount of $154.4 million at the time of acquisition, one of which had an outstanding principal balance of $33.2 million and was repaid immediately. The assumed mortgage debt was recorded at a fair value of $169.2 million, which includes an aggregate net premium of $14.8 million to reflect the estimated fair value of the debt at the time of assumption. The remainder of the purchase price was funded with $210.5 million of cash and $175.1 million through the issuance of 5,272,023 OP Units (see note 13). In connection with the acquisition of the Storage Deluxe Assets, which was accounted for as an asset acquisition, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $48.6 million at the time of the acquisition and prior to amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the three and six months ended June 30, 2021 was approximately $12.1 million and $24.3 million, respectively. Additionally, as part of the transaction, the Company assumed three existing ground leases as lessee, two of which have been classified as finance leases and one of which has been classified as an operating lease (see note 14). During the year ended December 31, 2020 the Company acquired 13 additional stores located in Florida (5) , Maryland (1) , Nevada (1) , New Jersey (1) , New York (1) , Texas (3) and Virginia (1) for an aggregate purchase price of approximately $195.9 million. In connection with these transactions, which were accounted for as asset acquisitions, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $11.4 million at the time of the acquisitions and prior to amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the three and six months ended June 30, 2021 was approximately $2.4 million and $5.2 million, respectively. The amortization expense that was recognized during the three and six months ended June 30, 2020 was $0.4 million and $0.5 million, respectively. Additionally, on July 20, 2020, the Company acquired land underlying a wholly-owned store located in Bronx, New York for $9.5 million. The land was previously subject to a ground lease in which the Company served as lessee. As a result of the transaction, which was accounted for as an asset acquisition, the Company was released from its obligations under the ground lease, and the right-of-use asset and lease liability totaling $5.1 million and $5.0 million, respectively, were removed from the Company’s consolidated balance sheets. 2020 Disposition On December 22, 2020, the Company sold a self-storage property located in New York for a sales price of $12.8 million. The Company recorded a $6.7 million gain in connection with the sale. Development Activity As of June 30, 2021, the Company had invested in joint ventures to develop three self-storage properties located in Massachusetts, New York and Virginia. Construction for all projects is expected to be completed by the second quarter of 2022 (see note 13). As of June 30, 2021, development costs incurred to date for these projects totaled $48.4 million. Total construction costs for these projects are expected to be $75.0 million. These costs are capitalized to construction in progress while the projects are under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company has completed the construction and opened for operation the following stores during the period beginning on January 1, 2020 through June 30, 2021. The costs associated with the construction of these stores are capitalized to land, building and improvements, as well as equipment and are reflected in Storage properties on the Company’s consolidated balance sheets. CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) East Meadow, NY (1) 1 Q2 2021 100% $ 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (2) 1 Q1 2021 90% 26,400 Brooklyn, NY (3) 1 Q2 2020 100% 45,900 4 $ 121,000 (1) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On June 29, 2021, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $6.6 million in cash consideration. (2) This store is located adjacent to an existing consolidated joint venture store. Given their proximity to each other, the stores have been combined in our store count, as well as for operational and reporting purposes (see note 13). (3) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On September 29, 2020, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. T he Company issued 276,497 OP Units that were valued at approximately $9.0 million as consideration for the remainder of the purchase price (see note 13). |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 5. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES The Company’s investments in unconsolidated real estate ventures, in which it holds common ownership interests, are summarized as follows (in thousands): CubeSmart Number of Stores as of Carrying Value of Investment as of Ownership June 30, December 31, June 30, December 31, Unconsolidated Real Estate Ventures Interest 2021 2020 2021 2020 191 V CUBE LLC ("HVP V") (1) 20% 2 - $ 7,364 $ - 191 IV CUBE Southeast LLC ("HVPSE") (2) 10% 14 14 4,872 5,015 191 IV CUBE LLC ("HVP IV") (3) 20% 27 21 25,141 21,760 CUBE HHF Northeast Venture LLC ("HHFNE") (4) 10% 13 13 1,448 1,628 CUBE HHF Limited Partnership ("HHF") (5) 50% 35 35 58,476 63,668 91 83 $ 97,301 $ 92,071 (1) On March 17, 2021, the Company invested a 20% ownership interest in a newly-formed real estate venture that acquired its initial self-storage property located in Florida. A second self-storage property in Florida was purchased by HVP V on June 29, 2021. HVP V paid an aggregate of $37.0 million for these stores, of which $1.5 million was allocated to the value of the in-place lease intangible. The purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP V related to these acquisitions was $7.4 million. (2) On March 19, 2020, the Company invested a 10% ownership interest in a newly-formed real estate venture that acquired 14 self-storage properties located in Florida (2) , Georgia (8) and South Carolina (4) . HVPSE paid $135.3 million for these stores, of which $7.7 million was allocated to the value of the in-place lease intangible. The acquisition was funded primarily through the venture’s $81.6 million secured term loan. The remainder of the purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVPSE related to this portfolio acquisition was $5.6 million. The secured loan bears interest at LIBOR plus 1.60% and matures on March 19, 2023 with options to extend the maturity date through March 19, 2025, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. (3) The stores owned by HVP IV are located in Arizona (2) , Connecticut (3) , Florida (4) , Georgia (2) , Illinois (4) , Maryland (2) , Minnesota (1) , Pennsylvania (1) and Texas (8) . The Company’s total contribution to HVP IV in connection with these store acquisitions was $30.6 million. During the three months ended June 30, 2021, HVP IV entered into a new $212.3 million secured loan, which bears interest at LIBOR plus 1.95% per annum, and matures on April 19, 2025. HVP IV used the proceeds from this loan to repay its existing loans (totaling $137.7 million) in full. (4) The stores owned by HHFNE are located in Connecticut (3) , Massachusetts (6) , Rhode Island (2) and Vermont (2) . The Company’s total contribution to HHFNE in connection with these store acquisitions was $3.8 million. As of June 30, 2021, HHFNE had an outstanding $45.0 million secured loan facility, which bears interest at LIBOR plus 1.20% per annum and matures on December 16, 2024. (5) The stores owned by HHF are located in North Carolina (1) and Texas (34) . On January 21, 2021, HHF entered into a new $105.0 million secured loan, which bears interest at 2.58% per annum and matures on February 5, 2028. HHF used the proceeds from this loan to repay its existing outstanding $100.0 million loan in full. Based upon the facts and circumstances at formation of HVP V, HVPSE, HVP IV, HHFNE and HHF (the “Ventures”), the Company determined that the Ventures are not VIEs in accordance with the accounting standard for the consolidation of VIEs. As a result, the Company used the voting interest model under the accounting standard for consolidation in order to determine whether to consolidate the Ventures. Based upon each member's substantive participating rights over the activities of each entity as stipulated in the operating agreements, the Ventures are not consolidated by the Company and are accounted for under the equity method of accounting. The Company’s investments in the Ventures are included in Investment in real estate ventures, at equity on the Company’s consolidated balance sheets and the Company’s earnings from its investments in the Ventures are presented in Equity in earnings (losses) of real estate ventures on the Company’s consolidated statements of operations. The following is a summary of the financial position of the Ventures as of June 30, 2021 and December 31, 2020. June 30, December 31, 2021 2020 Assets (in thousands) Storage properties, net $ 780,772 $ 662,833 Other assets 30,537 18,112 Total assets $ 811,309 $ 680,945 Liabilities and equity Debt $ 439,155 $ 359,985 Other liabilities 22,650 11,588 Equity CubeSmart 97,301 92,071 Joint venture partners 252,203 217,301 Total liabilities and equity $ 811,309 $ 680,945 The following is a summary of results of operations of the Ventures for the three and six months ended June 30, 2021 and 2020. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Total revenues $ 21,240 $ 16,797 $ 40,063 $ 31,402 Operating expenses (9,492) (7,978) (18,097) (14,920) Other expenses (854) (121) (851) (234) Interest expense, net (2,673) (2,985) (6,208) (5,705) Depreciation and amortization (9,008) (9,100) (17,720) (15,523) Net loss $ (787) $ (3,387) $ (2,813) $ (4,980) Company’s share of net income (loss) $ 316 $ (174) $ 336 $ (179) |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Unclassified [Abstract] | |
OTHER ASSETS | 6. OTHER ASSETS Other assets are comprised of the following as of June 30, 2021 and December 31, 2020: June 30, December 31, 2021 2020 (in thousands) Intangible assets, net of accumulated amortization of $29,157 and $2,123 $ 29,930 $ 57,820 Accounts receivable, net 5,905 5,829 Prepaid property taxes 5,497 6,334 Prepaid property and casualty insurance 5,603 2,626 Amounts due from affiliates (see note 15) 17,112 13,130 Assets held in trust related to deferred compensation arrangements 21,141 17,207 Right-of-use assets - operating leases (see note 14) 54,683 55,302 Equity investment recorded at cost (1) 5,000 5,000 Other 9,958 7,505 Total other assets, net $ 154,829 $ 170,753 (1) On September 5, 2018, the Company invested $5.0 million in exchange for 100% of the Class A preferred units of Capital Storage Partners, LLC (“Capital Storage”), a newly formed venture that acquired 22 self-storage properties located in Florida (4) , Oklahoma (5) and Texas (13) . The Class A preferred units earn an 11% cumulative dividend prior to any other distributions. The Company’s investment in Capital Storage and the related dividends are included in Other assets, net on the Company’s consolidated balance sheets and in Other income on the Company’s consolidated statements of operations, respectively. |
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES | 6 Months Ended |
Jun. 30, 2021 | |
UNSECURED SENIOR NOTES | |
UNSECURED SENIOR NOTES | 7. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): June 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2021 2020 Interest Rate Date Date (in thousands) $300M 4.375% Guaranteed Notes due 2023 (1) $ 300,000 $ 300,000 4.33 % Various (1) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (2) 300,000 300,000 3.99 % Various (2) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 $350M 4.375% Guaranteed Notes due 2029 350,000 350,000 4.46 % Jan-19 Feb-29 $350M 3.000% Guaranteed Notes due 2030 350,000 350,000 3.04 % Oct-19 Feb-30 $450M 2.000% Guaranteed Notes due 2031 450,000 450,000 2.10 % Oct-20 Feb-31 Principal balance outstanding 2,050,000 2,050,000 Less: Discount on issuance of unsecured senior notes, net (7,086) (7,470) Less: Loan procurement costs, net (11,288) (12,158) Total unsecured senior notes, net $ 2,031,626 $ 2,030,372 (1) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.375% senior notes due 2023, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.375% senior notes due December 15, 2023 issued on December 17, 2013. The $50.0 million and $250.0 million tranches were priced at 105.040% and 98.995% , respectively, of the principal amount to yield 3.495% and 4.501% , respectively, to maturity. The combined weighted average effective interest rate of the 2023 notes is 4.330% . (2) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.000% senior notes due 2025, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.000% senior notes due November 15, 2025 issued on October 26, 2015. The $50.0 million and $250.0 million tranches were priced at 101.343% and 99.735% , respectively, of the principal amount to yield 3.811% and 4.032% , respectively, to maturity. The combined weighted average effective interest rate of the 2025 notes is 3.994% . The indenture under which the Senior Notes were issued restricts the ability of the Operating Partnership and its subsidiaries to incur debt unless the Operating Partnership and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5 :1.0 after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Operating Partnership and its subsidiaries to incur secured debt unless the Operating Partnership and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Operating Partnership and its consolidated subsidiaries. As of June 30, 2021, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 6 Months Ended |
Jun. 30, 2021 | |
REVOLVING CREDIT FACILITY | |
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | 8. REVOLVING CREDIT FACILITY On December 9, 2011, the Company entered into a credit agreement (the “Credit Facility”). On June 19, 2019, the Company amended and restated, in its entirety, the Credit Facility (the “Amended and Restated Credit Facility”) which, subsequent to the amendment and restatement, is comprised of a $750.0 million unsecured revolving facility (the “Revolver”) maturing on June 19, 2024. Under the Amended and Restated Credit Facility, pricing on the Revolver is dependent upon the Company’s unsecured debt credit ratings. At the Company’s current Baa2/BBB level, amounts drawn under the Revolver are priced at 1.10% over LIBOR, inclusive of a facility fee of 0.15%. As of June 30, 2021, borrowings under the Revolver had an effective interest rate of 1.20%. Additionally, as of June 30, 2021, $724.8 million was available for borrowing under the Revolver. The available balance under the Revolver is reduced by an outstanding letter of credit of $0.6 million. Under the Amended and Restated Credit Facility, the Company’s ability to borrow under the Revolver is subject to ongoing compliance with certain financial covenants which include, among other things, (1) a maximum total indebtedness to total asset value of 60.0%, and (2) a minimum fixed charge coverage ratio of 1.5:1.0. As of June 30, 2021, the Company was in compliance with all of its financial covenants. |
MORTGAGE LOANS AND NOTES PAYABL
MORTGAGE LOANS AND NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2021 | |
MORTGAGE LOANS AND NOTES PAYABLE | |
MORTGAGE LOANS AND NOTES PAYABLE | 9. MORTGAGE LOANS AND NOTES PAYABLE The Company’s mortgage loans and notes payable are summarized as follows: Carrying Value as of June 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2021 2020 Interest Rate Date (in thousands) Bronx IX, NY (1) $ — $ 21,030 4.85 % Jun-21 Bronx X, NY (1) — 23,148 4.64 % Jun-21 Nashville V, TN 2,234 2,261 3.85 % Jun-23 New York, NY 29,663 29,981 3.51 % Jun-23 Annapolis I, MD 5,192 5,283 3.78 % May-24 Brooklyn XV, NY 15,581 15,713 2.15 % May-24 Long Island City IV, NY 12,728 12,852 2.15 % May-24 Long Island City II, NY 18,932 19,094 2.25 % Jul-26 Long Island City III, NY 18,921 19,106 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 157,551 202,768 Plus: Unamortized fair value adjustment 14,375 15,879 Less: Loan procurement costs, net (1,901) (2,143) Total mortgage loans and notes payable, net $ 170,025 $ 216,504 (1) These mortgage loans were repaid in full on March 1, 2021. As of June 30, 2021 and December 31, 2020, the Company’s mortgage loans payable were secured by certain of its self-storage properties with net book values of approximately $455.0 million and $539.2 million, respectively. The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of June 30, 2021 (in thousands): 2021 $ 1,165 2022 2,426 2023 32,591 2024 32,329 2025 979 2026 and thereafter 88,061 Total mortgage payments 157,551 Plus: Unamortized fair value adjustment 14,375 Less: Loan procurement costs, net (1,901) Total mortgage loans and notes payable, net $ 170,025 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 10. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in accumulated other comprehensive loss by component for the six months ended June 30, 2021: June 30, 2021 (in thousands) Beginning balance $ (656) Reclassification of realized losses on interest rate swaps (1) 40 Ending balance (616) Less: portion included in noncontrolling interests in the Operating Partnership 22 Total accumulated other comprehensive loss included in equity $ (594) (1) See note 11 for additional information about the effects of the amounts reclassified. |
RISK MANAGEMENT AND USE OF FINA
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2021 | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 11. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS The Company’s use of derivative instruments is limited to the utilization of interest rate swap agreements or other instruments to manage interest rate risk exposure and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its subsidiaries may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks. The Company formally assesses, both at inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that the derivative is highly-effective as a hedge, then the Company accounts for the derivative using hedge accounting, pursuant to which gains or losses inherent in the derivative do not impact the Company’s results of operations. If management determines that the derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company discontinues hedge accounting prospectively and reflects in its statement of operations realized and unrealized gains and losses with respect to the derivative. As of June 30, 2021 and December 31, 2020, all derivative instruments entered into by the Company had been settled. On December 24, 2018, the Company entered into interest rate swap agreements with notional amounts that aggregated to $150.0 million (the “Interest Rate Swaps”) to protect the Company against adverse fluctuations in interest rates by reducing exposure to variability in cash flows relating to interest payments on a forecasted issuance of long-term debt. The Interest Rate Swaps qualified and were designated as cash flow hedges. Accordingly, the Interest Rate Swaps were recorded on the consolidated balance sheet at fair value and the related gains or losses were deferred in shareholders’ equity as accumulated other comprehensive income or loss. These deferred gains and losses were amortized into interest expense during the period or periods in which the related interest payments affected earnings. On January 24, 2019, in conjunction with the issuance of the 2029 Notes, the Company settled the Interest Rate Swaps for $0.8 million. The $0.8 million termination premium will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the life of the 2029 Notes, which mature on February 15, 2029. The change in unrealized losses on interest rate swaps reflects a reclassification of twenty thousand dollars and forty thousand dollars of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during the three and six months ended June 30, 2021, respectively. The Company estimates that $0.1 million will be reclassified as an increase to interest expense in the next 12 months. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS The Company applies the methods of determining fair value as described in authoritative guidance, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. There were no financial assets or liabilities carried at fair value as of June 30, 2021 or December 31, 2020. The fair values of financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective carrying values at June 30, 2021 and December 31, 2020. The following table summarizes the carrying value and estimated fair value of the Company’s debt as of June 30, 2021 and December 31, 2020: June 30, 2021 December 31, 2020 (in thousands) Carrying value $ 2,226,251 $ 2,364,676 Fair value 2,363,150 2,571,300 The fair value of debt estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations at June 30, 2021 and December 31, 2020. The Company estimates the fair value of its fixed-rate debt and the credit spreads over variable market rates on its variable-rate debt by discounting the future cash flows of each instrument at estimated market rates or credit spreads consistent with the maturity of the debt obligation with similar credit policies, which is classified within level 2 of the fair value hierarchy. Rates and credit spreads take into consideration general market conditions and maturity. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2021 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 13. NONCONTROLLING INTERESTS Interests in Consolidated Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated real estate ventures. The following table summarizes the Company’s consolidated joint ventures, each of which are accounted for as VIEs (dollars in thousands): CubeSmart Number Date Opened / Ownership June 30, 2021 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) CS Vienna, LLC ("Vienna") (2) 1 Vienna, VA Q2 2022 (est.) 72% $ 19,802 $ 8,615 CS 750 W Merrick Rd, LLC ("Merrick") (3) 1 Valley Stream, NY Q1 2022 (est.) 51% 20,283 10,604 CS SDP Newtonville, LLC ("Newton") (4) 1 Newton, MA Q3 2021 (est.) 90% 19,190 12,674 CS Valley Forge Village Storage, LLC ("VFV") (4) 1 King of Prussia, PA Q2 2021 70% 21,891 13,866 CS Lock Up Anoka, LLC ("Anoka") (5) 1 Anoka, MN Q2 2021 50% 12,214 5,589 SH3, LLC ("SH3") (6) 1 Arlington, VA Q2 2015/Q1 2021 90% 39,334 191 6 $ 132,714 $ 51,539 (1) Anoka was formed to acquire an existing store that had commenced operations, while all other consolidated joint ventures were formed to develop, own and operate new stores. (2) On December 23, 2020, the Company and the noncontrolling member contributed a previously wholly-owned operating property (the “Vienna Operating Property”) and a parcel of land (the “Vienna Land”), respectively, to Vienna. The Vienna Operating Property and the Vienna Land are located in close proximity to each other in Vienna, VA. The members intend to construct a new store on the Vienna Land, which, upon completion, will be combined with the Vienna Operating Property and operated by the venture as a single store. The Company has a related party commitment to Vienna to fund all or a portion of the construction costs. As of June 30, 2021, the Company has funded $ 6.7 million of a total $17.0 million loan commitment to Vienna, which is included in the total liabilities amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (3) The noncontrolling member of Merrick has the option to put their ownership interest in the venture to the Company for $17.1 million (the “Put Option”) within the two-year period after construction of the store is substantially complete (the “Put Option Period”). In the event the Put Option is not exercised, the Company has a one-year option to call the ownership interest of the noncontrolling member for $17.1 million, beginning twelve months after the end of the Put Option Period. The Company, at its sole discretion, may pay cash and/or issue OP Units in exchange for the noncontrolling member’s interest. The Company is accreting this liability during the development period and, as of June 30, 2021, has accrued $9.8 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. (4) The Company has related party loan commitments to VFV and Newton to fund a portion of the construction costs. As of June 30, 2021, the Company has funded $11.3 million of the total $12.4 million loan commitment to VFV and $11.8 million of the total $12.1 million loan commitment to Newton, which are included in the total liability amounts within the table above. These loans and the related interest were eliminated for consolidation purposes. (5) On April 16, 2021, the Company contributed $3.4 million in exchange for a 50% ownership interest in Anoka, which acquired a self-storage property located in Minnesota for $12.0 million. In addition, the Company has funded $5.6 million of a $6.1 million related party loan commitment to Anoka, which is included in the total liability amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (6) SH3 owns two stores located in close proximity to each other in Arlington, VA, the first of which was developed and opened for operation in April 2015 (“Shirlington I”) and the second of which was developed and opened for operation in March 2021 (“Shirlington II”). Given their close proximity to each other, the two stores were combined in our store count, as well as for operational and reporting purposes, upon the opening of Shirlington II in March 2021. Operating Partnership Ownership The Company follows guidance regarding the classification and measurement of redeemable securities. Under this guidance, securities that are redeemable for cash or other assets, at the option of the holder and not solely within the control of the issuer, must be classified outside of permanent equity/capital. This classification results in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity/capital in the consolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to redeemable ownership interests in the Operating Partnership held by third parties for which CubeSmart has a choice to settle the redemption by delivery of its own shares, the Operating Partnership considered the guidance regarding accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own shares, to evaluate whether CubeSmart controls the actions or events necessary to presume share settlement. The guidance also requires that noncontrolling interests classified outside of permanent capital be adjusted each period to the greater of the carrying value based on the accumulation of historical cost or the redemption value. Approximately 3.5% and 3.6% of the outstanding OP Units, as of June 30, 2021 and December 31, 2020, respectively, were not owned by CubeSmart, the sole general partner. The interests in the Operating Partnership represented by these OP Units were a component of the consideration that the Operating Partnership paid to acquire certain self-storage properties. The holders of the OP Units are limited partners in the Operating Partnership and have the right to require CubeSmart to redeem all or part of their OP Units for, at the general partner’s option, an equivalent number of common shares of CubeSmart or cash based upon the fair value of an equivalent number of common shares of CubeSmart. However, the partnership agreement contains certain provisions that could result in a settlement outside the control of CubeSmart and the Operating Partnership, as CubeSmart does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance, the Operating Partnership will record the OP Units owned by third parties outside of permanent capital in the consolidated balance sheets. Net income or loss related to the OP Units owned by third parties is excluded from net income or loss attributable to Operating Partner in the consolidated statements of operations. In two separate tranches during December 2020, the Company acquired the Storage Deluxe Assets for an aggregate purchase price of $540.0 million. In connection with the acquisition of the Storage Deluxe Assets, the Company issued 5,272,023 OP Units valued at approximately $175.1 million to fund a portion of the purchase price. On September 29, 2020, the Company acquired the noncontrolling interest in a previously consolidated joint venture that owned a store in New York for $10.0 million. In conjunction with the closing, the Company paid $1.0 million in cash and issued 276,497 OP Units, valued at approximately $9.0 million, to pay the remaining consideration. As of June 30, 2021 and December 31, 2020, 7,284,506 and 7,420,828 OP units, respectively, were held by third parties. The per unit cash redemption amount of the outstanding OP units was calculated based upon the closing price of the common shares of CubeSmart on the New York Stock Exchange on the final trading day of the quarter. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interest, the Company has reflected these interests at the greater of the carrying value based on the accumulation of historical cost or the redemption value at June 30, 2021 and December 31, 2020. As of June 30, 2021 and December 31, 2020, the Operating Partnership recorded an increase in the value of OP Units owned by third parties and a corresponding decrease to capital of $63.0 million and $4.2 million, respectively. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
LEASES | 14. LEASES CubeSmart as Lessor The Company derives revenue primarily from rents received from customers who rent cubes at its self-storage properties under month-to-month leases for personal or business use. The self-storage lease agreements utilized by the Company vary slightly to comply with state-specific laws and regulations, but, subject to such laws and regulations, generally provide for automatic monthly renewals, flexibility to increase rental rates over time as market conditions permit and the collection of contingent fees such as administrative and late fees. None of the self-storage lease agreements contain options that allow the customer to purchase the leased space at any time during, or at the expiration of, the lease term. All self-storage leases in which the Company serves as lessor have been classified as operating leases. Accordingly, storage cubes are carried at historical cost less accumulated depreciation and impairment, if any, and are included in Storage properties on the Company’s consolidated balance sheets. Operating lease income for amounts received under the Company’s self-storage lease agreements is recognized on a straight-line basis which, due to the month-to-month nature of the leases, results in the recognition of income during the initial term and each subsequent monthly renewal using the then-in-place rent amount. Operating lease income is included in Rental income within the Company’s consolidated statements of operations. Variable lease income related to the Company’s self-storage lease agreements consists of administrative and late fees charged to customers. For the three and six months ended June 30, 2021, administrative and late fees totaled $5.0 million and $9.8 million, respectively. For the three and six months ended June 30, 2020, administrative and late fees totaled $4.5 million and $9.9 million, respectively. Administrative and late fees are included in Other property related income within the Company’s consolidated statements of operations. CubeSmart as Lessee The Company serves as lessee in lease agreements for land, office space, automobiles and certain equipment, which have remaining lease terms of up to 44 years . Certain of the Company’s leases (1) provide for one or more options to renew, with renewal options that can extend the lease up to 69 years , (2) allow for early termination at certain points during the lease term and/or (3) give the Company the option to purchase the leased property. In all cases, the exercise of the lease renewal, termination and purchase options, if provided for in the lease, are at the Company’s sole discretion. Certain of the Company’s lease agreements, particularly its land leases, require rental payments that are periodically adjusted for inflation using a defined index. None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. Lease expense for payments related to the Company’s finance leases is recognized as interest expense using the interest method over the related lease term. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives. For the three and six months ended June 30, 2021 and 2020, the Company’s lease cost consists of the following components: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Finance lease cost: Amortization of finance lease right-of-use assets $ 241 $ — $ 482 $ — Interest expense related to finance lease liabilities 533 — 1,060 — Operating lease cost 822 746 1,644 1,492 Short-term lease cost (1) 326 275 632 583 Total lease cost $ 1,922 $ 1,021 $ 3,818 $ 2,075 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 445 $ — $ 861 $ — Operating cash outflows for operating leases 635 577 1,253 1,142 Total cash outflows for lease liability measurement $ 1,080 $ 577 $ 2,114 $ 1,142 (1) Represents automobile leases that have a lease term of 12 months . The Company has made an accounting policy election not to apply the recognition requirements of ASC 842 to this asset class. The lease cost associated with these leases is recognized on a straight-line basis over the related lease term. The following table represents supplemental balance sheet information related to leases as of June 30, 2021 and December 31, 2020. June 30, December 31, 2021 2020 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 41,414 $ 41,896 Lease liabilities included in Lease liabilities - finance leases $ 65,798 $ 65,599 Operating Leases Right-of-use assets included in Other assets, net $ 54,683 $ 55,302 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 53,476 $ 53,595 Weighted Average Lease Term (in years) Finance leases 43.0 43.5 Operating leases 34.4 34.8 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.47 % 4.46 % The following table represents the future lease liability maturities as of June 30, 2021 (in thousands): Finance Operating 2021 $ 1,075 $ 1,258 2022 2,183 2,639 2023 2,183 2,690 2024 2,183 2,540 2025 2,224 2,539 2026 and thereafter 122,932 99,290 Total lease payments 132,780 110,956 Less: Imputed interest (66,982) (57,480) Present value of lease liabilities $ 65,798 $ 53,476 During the three and six months ended June 30, 2021 and 2020, the Company did not enter into any lease agreements set to commence in the future. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES The Company is involved in claims from time to time, which arise in the ordinary course of business. In accordance with applicable accounting guidance, management establishes an accrued liability for claim expenses, insurance retention and litigation costs when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be exposure to loss in excess of those amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. In the opinion of management, the Company has made adequate provisions for potential liabilities, arising from any such matters, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS The Company provides management services to certain joint ventures and other related parties. Management agreements provide for fee income to the Company based on a percentage of revenues at the managed stores. Total management fees for unconsolidated real estate ventures or other entities in which the Company held an ownership interest for the three and six months ended June 30, 2021 totaled $1.2 million and $2.3 million, respectively, compared to $1.0 million and $1.8 million, respectively, for the same periods in 2020. The management agreements for certain joint ventures, other related parties and third-party stores provide for the reimbursement to the Company for certain expenses incurred to manage the stores. These amounts consist of amounts due for management fees, payroll, and other store expenses. The amounts due to the Company were $17.1 million and $13.1 million as of June 30, 2021 and December 31, 2020, respectively, and are reflected in Other assets, net on the Company’s consolidated balance sheets. Additionally, as discussed in note 13, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $35.4 million and $21.4 million as of June 30, 2021 and December 31, 2020, respectively, which are eliminated for consolidation purposes. The Company believes that all of these related-party receivables are fully collectible. The HVP V, HVPSE, HVP IV and HHFNE operating agreements provide for acquisition, disposition and other fees payable from HVP V, HVPSE, HVP IV and HHFNE to the Company upon the closing of a property transaction by HVP V, HVPSE, HVP IV and HHFNE or any of their subsidiaries and completion of certain measures as defined in the operating agreements. During the three and six months ended June 30, 2021, the Company recognized fees associated with property transactions of $0.5 million and $0.6 million, respectively. During the six months ended June 30, 2020, the Company recognized $0.7 million in fees associated with property transactions. There were no property transaction fees recognized during the three months ended June 30, 2020. Property transaction fees are included in Other income on the consolidated statements of operations. |
EARNINGS PER SHARE AND UNIT AND
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 17. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL Earnings per common share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (dollars and units in thousands, except per share amounts) Net income $ 50,366 $ 38,932 $ 93,681 $ 77,249 Noncontrolling interests in the Operating Partnership (1,768) (389) (3,317) (772) Noncontrolling interest in subsidiaries 154 (38) 120 (76) Net income attributable to the Company’s common shareholders $ 48,752 $ 38,505 $ 90,484 $ 76,401 Weighted average basic shares outstanding 201,414 193,629 200,293 193,605 Share options and restricted share units 1,395 563 1,234 626 Weighted average diluted shares outstanding (1) 202,809 194,192 201,527 194,231 Basic earnings per share attributable to common shareholders $ 0.24 $ 0.20 $ 0.45 $ 0.39 Diluted earnings per share attributable to common shareholders (2) $ 0.24 $ 0.20 $ 0.45 $ 0.39 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (dollars and units in thousands, except per unit amounts) Net income $ 50,366 $ 38,932 $ 93,681 $ 77,249 Operating Partnership interests of third parties (1,768) (389) (3,317) (772) Noncontrolling interest in subsidiaries 154 (38) 120 (76) Net income attributable to common unitholders $ 48,752 $ 38,505 $ 90,484 $ 76,401 Weighted average basic units outstanding 201,414 193,629 200,293 193,605 Unit options and restricted share units 1,395 563 1,234 626 Weighted average diluted units outstanding (1) 202,809 194,192 201,527 194,231 Basic earnings per unit attributable to common unitholders $ 0.24 $ 0.20 $ 0.45 $ 0.39 Diluted earnings per unit attributable to common unitholders (2) $ 0.24 $ 0.20 $ 0.45 $ 0.39 (1) For the three and six months ended June 30, 2021, the Company declared cash dividends per common share/unit of $0.34 and $0.68 , respectively, and $0.33 and $0.66 , respectively, for the same periods in 2020. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit as the exercise price was higher than the average share price of the Company for the three and six months ended June 30, 2020 were 1.3 million and 1.1 million, respectively. There were no anti-dilutive options for the three and six months ended June 30, 2021. The OP units and common units have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. An Operating Partnership unit may be redeemed for cash, or, at the Company’s option, common units on a one-for-one basis. Outstanding noncontrolling interest units in the Operating Partnership were 7,284,506 and 1,872,308 as of June 30, 2021 and 2020, respectively. There were 201,768,903 and 193,728,951 common units outstanding as of June 30, 2021 and 2020, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS Subsequent to June 30, 2021, the Company acquired two self-storage properties located in New Jersey and Pennsylvania for an aggregate purchase price of $33.0 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) 10K | 6 Months Ended |
Jun. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2020, which are included in the Parent Company’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-06 – Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of certain settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. The standard is effective on January 1, 2022, with early adoption permitted, but only as of the beginning of an entity’s annual fiscal year. The standard is not expected to have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES (Tables)
STORAGE PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
STORAGE PROPERTIES | |
Summary of real estate assets | June 30, December 31, 2021 2020 (in thousands) Land $ 1,113,737 $ 1,093,503 Buildings and improvements 4,197,607 4,122,995 Equipment 123,199 123,044 Construction in progress 60,419 108,316 Right-of-use assets - finance leases 41,414 41,896 Storage properties 5,536,376 5,489,754 Less: Accumulated depreciation (1,026,337) (983,940) Storage properties, net $ 4,510,039 $ 4,505,814 |
Schedule of acquisitions and dispositions of real estate assets | The following table summarizes the Company’s acquisition and disposition activity during the period beginning on January 1, 2020 through June 30, 2021. Number of Purchase / Sale Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2021 Acquisitions: Minnesota Asset (1) Minneapolis-St. Paul-Bloomington, MN-WI April 2021 1 $ 12,000 Maryland Asset Baltimore-Towson, MD June 2021 1 22,075 2 $ 34,075 2020 Acquisitions: Texas Asset San Antonio, TX February 2020 1 $ 9,025 Maryland Asset Baltimore-Towson, MD April 2020 1 17,200 New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA April 2020 1 48,450 Florida Asset Palm Bay-Melbourne-Titusville, FL November 2020 1 3,900 Texas Asset Austin-Round Rock, TX November 2020 1 10,750 Texas Asset Dallas-Fort Worth-Arlington, TX November 2020 1 10,150 Nevada Asset Las Vegas-Paradise, NV December 2020 1 16,800 New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 6,750 Florida Asset Tampa-St. Petersburg-Clearwater, FL December 2020 1 10,000 Virginia Asset Washington-Arlington-Alexandria, DC-VA-MD-WV December 2020 1 17,350 Storage Deluxe Assets New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 8 540,000 Florida Assets Orlando-Kissimmee, FL / Deltona-Daytona Beach-Ormond Beach, FL December 2020 3 45,500 21 $ 735,875 2020 Disposition: New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 $ 12,750 1 $ 12,750 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. |
INVESTMENT ACTIVITY (Tables)
INVESTMENT ACTIVITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT ACTIVITY | |
Schedule of capitalized costs for investments in storage properties | CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) East Meadow, NY (1) 1 Q2 2021 100% $ 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (2) 1 Q1 2021 90% 26,400 Brooklyn, NY (3) 1 Q2 2020 100% 45,900 4 $ 121,000 (1) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On June 29, 2021, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $6.6 million in cash consideration. (2) This store is located adjacent to an existing consolidated joint venture store. Given their proximity to each other, the stores have been combined in our store count, as well as for operational and reporting purposes (see note 13). (3) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On September 29, 2020, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. T he Company issued 276,497 OP Units that were valued at approximately $9.0 million as consideration for the remainder of the purchase price (see note 13). |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | |
Schedule of investments in real estate ventures | CubeSmart Number of Stores as of Carrying Value of Investment as of Ownership June 30, December 31, June 30, December 31, Unconsolidated Real Estate Ventures Interest 2021 2020 2021 2020 191 V CUBE LLC ("HVP V") (1) 20% 2 - $ 7,364 $ - 191 IV CUBE Southeast LLC ("HVPSE") (2) 10% 14 14 4,872 5,015 191 IV CUBE LLC ("HVP IV") (3) 20% 27 21 25,141 21,760 CUBE HHF Northeast Venture LLC ("HHFNE") (4) 10% 13 13 1,448 1,628 CUBE HHF Limited Partnership ("HHF") (5) 50% 35 35 58,476 63,668 91 83 $ 97,301 $ 92,071 (1) On March 17, 2021, the Company invested a 20% ownership interest in a newly-formed real estate venture that acquired its initial self-storage property located in Florida. A second self-storage property in Florida was purchased by HVP V on June 29, 2021. HVP V paid an aggregate of $37.0 million for these stores, of which $1.5 million was allocated to the value of the in-place lease intangible. The purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP V related to these acquisitions was $7.4 million. (2) On March 19, 2020, the Company invested a 10% ownership interest in a newly-formed real estate venture that acquired 14 self-storage properties located in Florida (2) , Georgia (8) and South Carolina (4) . HVPSE paid $135.3 million for these stores, of which $7.7 million was allocated to the value of the in-place lease intangible. The acquisition was funded primarily through the venture’s $81.6 million secured term loan. The remainder of the purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVPSE related to this portfolio acquisition was $5.6 million. The secured loan bears interest at LIBOR plus 1.60% and matures on March 19, 2023 with options to extend the maturity date through March 19, 2025, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. (3) The stores owned by HVP IV are located in Arizona (2) , Connecticut (3) , Florida (4) , Georgia (2) , Illinois (4) , Maryland (2) , Minnesota (1) , Pennsylvania (1) and Texas (8) . The Company’s total contribution to HVP IV in connection with these store acquisitions was $30.6 million. During the three months ended June 30, 2021, HVP IV entered into a new $212.3 million secured loan, which bears interest at LIBOR plus 1.95% per annum, and matures on April 19, 2025. HVP IV used the proceeds from this loan to repay its existing loans (totaling $137.7 million) in full. (4) The stores owned by HHFNE are located in Connecticut (3) , Massachusetts (6) , Rhode Island (2) and Vermont (2) . The Company’s total contribution to HHFNE in connection with these store acquisitions was $3.8 million. As of June 30, 2021, HHFNE had an outstanding $45.0 million secured loan facility, which bears interest at LIBOR plus 1.20% per annum and matures on December 16, 2024. (5) The stores owned by HHF are located in North Carolina (1) and Texas (34) . On January 21, 2021, HHF entered into a new $105.0 million secured loan, which bears interest at 2.58% per annum and matures on February 5, 2028. HHF used the proceeds from this loan to repay its existing outstanding $100.0 million loan in full. |
Summary of the financial position of the ventures | June 30, December 31, 2021 2020 Assets (in thousands) Storage properties, net $ 780,772 $ 662,833 Other assets 30,537 18,112 Total assets $ 811,309 $ 680,945 Liabilities and equity Debt $ 439,155 $ 359,985 Other liabilities 22,650 11,588 Equity CubeSmart 97,301 92,071 Joint venture partners 252,203 217,301 Total liabilities and equity $ 811,309 $ 680,945 |
Summary of results of operations of the ventures | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Total revenues $ 21,240 $ 16,797 $ 40,063 $ 31,402 Operating expenses (9,492) (7,978) (18,097) (14,920) Other expenses (854) (121) (851) (234) Interest expense, net (2,673) (2,985) (6,208) (5,705) Depreciation and amortization (9,008) (9,100) (17,720) (15,523) Net loss $ (787) $ (3,387) $ (2,813) $ (4,980) Company’s share of net income (loss) $ 316 $ (174) $ 336 $ (179) |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Assets, Unclassified [Abstract] | |
Schedule of other assets | June 30, December 31, 2021 2020 (in thousands) Intangible assets, net of accumulated amortization of $29,157 and $2,123 $ 29,930 $ 57,820 Accounts receivable, net 5,905 5,829 Prepaid property taxes 5,497 6,334 Prepaid property and casualty insurance 5,603 2,626 Amounts due from affiliates (see note 15) 17,112 13,130 Assets held in trust related to deferred compensation arrangements 21,141 17,207 Right-of-use assets - operating leases (see note 14) 54,683 55,302 Equity investment recorded at cost (1) 5,000 5,000 Other 9,958 7,505 Total other assets, net $ 154,829 $ 170,753 (1) On September 5, 2018, the Company invested $5.0 million in exchange for 100% of the Class A preferred units of Capital Storage Partners, LLC (“Capital Storage”), a newly formed venture that acquired 22 self-storage properties located in Florida (4) , Oklahoma (5) and Texas (13) . The Class A preferred units earn an 11% cumulative dividend prior to any other distributions. The Company’s investment in Capital Storage and the related dividends are included in Other assets, net on the Company’s consolidated balance sheets and in Other income on the Company’s consolidated statements of operations, respectively. |
UNSECURED SENIOR NOTES (Tables)
UNSECURED SENIOR NOTES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Senior Notes | |
Summary of debt | June 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2021 2020 Interest Rate Date Date (in thousands) $300M 4.375% Guaranteed Notes due 2023 (1) $ 300,000 $ 300,000 4.33 % Various (1) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (2) 300,000 300,000 3.99 % Various (2) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 $350M 4.375% Guaranteed Notes due 2029 350,000 350,000 4.46 % Jan-19 Feb-29 $350M 3.000% Guaranteed Notes due 2030 350,000 350,000 3.04 % Oct-19 Feb-30 $450M 2.000% Guaranteed Notes due 2031 450,000 450,000 2.10 % Oct-20 Feb-31 Principal balance outstanding 2,050,000 2,050,000 Less: Discount on issuance of unsecured senior notes, net (7,086) (7,470) Less: Loan procurement costs, net (11,288) (12,158) Total unsecured senior notes, net $ 2,031,626 $ 2,030,372 (1) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.375% senior notes due 2023, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.375% senior notes due December 15, 2023 issued on December 17, 2013. The $50.0 million and $250.0 million tranches were priced at 105.040% and 98.995% , respectively, of the principal amount to yield 3.495% and 4.501% , respectively, to maturity. The combined weighted average effective interest rate of the 2023 notes is 4.330% . (2) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.000% senior notes due 2025, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.000% senior notes due November 15, 2025 issued on October 26, 2015. The $50.0 million and $250.0 million tranches were priced at 101.343% and 99.735% , respectively, of the principal amount to yield 3.811% and 4.032% , respectively, to maturity. The combined weighted average effective interest rate of the 2025 notes is 3.994% . |
MORTGAGE LOANS AND NOTES PAYA_2
MORTGAGE LOANS AND NOTES PAYABLE (Tables) - Mortgages | 6 Months Ended |
Jun. 30, 2021 | |
Summary of debt | Carrying Value as of June 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2021 2020 Interest Rate Date (in thousands) Bronx IX, NY (1) $ — $ 21,030 4.85 % Jun-21 Bronx X, NY (1) — 23,148 4.64 % Jun-21 Nashville V, TN 2,234 2,261 3.85 % Jun-23 New York, NY 29,663 29,981 3.51 % Jun-23 Annapolis I, MD 5,192 5,283 3.78 % May-24 Brooklyn XV, NY 15,581 15,713 2.15 % May-24 Long Island City IV, NY 12,728 12,852 2.15 % May-24 Long Island City II, NY 18,932 19,094 2.25 % Jul-26 Long Island City III, NY 18,921 19,106 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 157,551 202,768 Plus: Unamortized fair value adjustment 14,375 15,879 Less: Loan procurement costs, net (1,901) (2,143) Total mortgage loans and notes payable, net $ 170,025 $ 216,504 (1) These mortgage loans were repaid in full on March 1, 2021. |
Schedule of the future principal payment requirements on the outstanding mortgage loans and notes payable | The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of June 30, 2021 (in thousands): 2021 $ 1,165 2022 2,426 2023 32,591 2024 32,329 2025 979 2026 and thereafter 88,061 Total mortgage payments 157,551 Plus: Unamortized fair value adjustment 14,375 Less: Loan procurement costs, net (1,901) Total mortgage loans and notes payable, net $ 170,025 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in accumulated other comprehensive loss by component | The following table summarizes the changes in accumulated other comprehensive loss by component for the six months ended June 30, 2021: June 30, 2021 (in thousands) Beginning balance $ (656) Reclassification of realized losses on interest rate swaps (1) 40 Ending balance (616) Less: portion included in noncontrolling interests in the Operating Partnership 22 Total accumulated other comprehensive loss included in equity $ (594) (1) See note 11 for additional information about the effects of the amounts reclassified. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities carried at fair value | June 30, 2021 December 31, 2020 (in thousands) Carrying value $ 2,226,251 $ 2,364,676 Fair value 2,363,150 2,571,300 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests in subsidiaries | CubeSmart Number Date Opened / Ownership June 30, 2021 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) CS Vienna, LLC ("Vienna") (2) 1 Vienna, VA Q2 2022 (est.) 72% $ 19,802 $ 8,615 CS 750 W Merrick Rd, LLC ("Merrick") (3) 1 Valley Stream, NY Q1 2022 (est.) 51% 20,283 10,604 CS SDP Newtonville, LLC ("Newton") (4) 1 Newton, MA Q3 2021 (est.) 90% 19,190 12,674 CS Valley Forge Village Storage, LLC ("VFV") (4) 1 King of Prussia, PA Q2 2021 70% 21,891 13,866 CS Lock Up Anoka, LLC ("Anoka") (5) 1 Anoka, MN Q2 2021 50% 12,214 5,589 SH3, LLC ("SH3") (6) 1 Arlington, VA Q2 2015/Q1 2021 90% 39,334 191 6 $ 132,714 $ 51,539 (1) Anoka was formed to acquire an existing store that had commenced operations, while all other consolidated joint ventures were formed to develop, own and operate new stores. (2) On December 23, 2020, the Company and the noncontrolling member contributed a previously wholly-owned operating property (the “Vienna Operating Property”) and a parcel of land (the “Vienna Land”), respectively, to Vienna. The Vienna Operating Property and the Vienna Land are located in close proximity to each other in Vienna, VA. The members intend to construct a new store on the Vienna Land, which, upon completion, will be combined with the Vienna Operating Property and operated by the venture as a single store. The Company has a related party commitment to Vienna to fund all or a portion of the construction costs. As of June 30, 2021, the Company has funded $ 6.7 million of a total $17.0 million loan commitment to Vienna, which is included in the total liabilities amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (3) The noncontrolling member of Merrick has the option to put their ownership interest in the venture to the Company for $17.1 million (the “Put Option”) within the two-year period after construction of the store is substantially complete (the “Put Option Period”). In the event the Put Option is not exercised, the Company has a one-year option to call the ownership interest of the noncontrolling member for $17.1 million, beginning twelve months after the end of the Put Option Period. The Company, at its sole discretion, may pay cash and/or issue OP Units in exchange for the noncontrolling member’s interest. The Company is accreting this liability during the development period and, as of June 30, 2021, has accrued $9.8 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. (4) The Company has related party loan commitments to VFV and Newton to fund a portion of the construction costs. As of June 30, 2021, the Company has funded $11.3 million of the total $12.4 million loan commitment to VFV and $11.8 million of the total $12.1 million loan commitment to Newton, which are included in the total liability amounts within the table above. These loans and the related interest were eliminated for consolidation purposes. (5) On April 16, 2021, the Company contributed $3.4 million in exchange for a 50% ownership interest in Anoka, which acquired a self-storage property located in Minnesota for $12.0 million. In addition, the Company has funded $5.6 million of a $6.1 million related party loan commitment to Anoka, which is included in the total liability amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (6) SH3 owns two stores located in close proximity to each other in Arlington, VA, the first of which was developed and opened for operation in April 2015 (“Shirlington I”) and the second of which was developed and opened for operation in March 2021 (“Shirlington II”). Given their close proximity to each other, the two stores were combined in our store count, as well as for operational and reporting purposes, upon the opening of Shirlington II in March 2021. |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
LEASES | |
Summary of lease cost | Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands) Finance lease cost: Amortization of finance lease right-of-use assets $ 241 $ — $ 482 $ — Interest expense related to finance lease liabilities 533 — 1,060 — Operating lease cost 822 746 1,644 1,492 Short-term lease cost (1) 326 275 632 583 Total lease cost $ 1,922 $ 1,021 $ 3,818 $ 2,075 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 445 $ — $ 861 $ — Operating cash outflows for operating leases 635 577 1,253 1,142 Total cash outflows for lease liability measurement $ 1,080 $ 577 $ 2,114 $ 1,142 (1) Represents automobile leases that have a lease term of 12 months . The Company has made an accounting policy election not to apply the recognition requirements of ASC 842 to this asset class. The lease cost associated with these leases is recognized on a straight-line basis over the related lease term. |
Schedule of balance sheet information associated with operating leases | June 30, December 31, 2021 2020 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 41,414 $ 41,896 Lease liabilities included in Lease liabilities - finance leases $ 65,798 $ 65,599 Operating Leases Right-of-use assets included in Other assets, net $ 54,683 $ 55,302 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 53,476 $ 53,595 Weighted Average Lease Term (in years) Finance leases 43.0 43.5 Operating leases 34.4 34.8 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.47 % 4.46 % |
Schedule of future operating lease liability maturities | The following table represents the future lease liability maturities as of June 30, 2021 (in thousands): Finance Operating 2021 $ 1,075 $ 1,258 2022 2,183 2,639 2023 2,183 2,690 2024 2,183 2,540 2025 2,224 2,539 2026 and thereafter 122,932 99,290 Total lease payments 132,780 110,956 Less: Imputed interest (66,982) (57,480) Present value of lease liabilities $ 65,798 $ 53,476 |
EARNINGS PER SHARE AND UNIT A_2
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
Summary of the elements used in calculating basic and diluted earnings (loss) per common share | Earnings per common share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (dollars and units in thousands, except per share amounts) Net income $ 50,366 $ 38,932 $ 93,681 $ 77,249 Noncontrolling interests in the Operating Partnership (1,768) (389) (3,317) (772) Noncontrolling interest in subsidiaries 154 (38) 120 (76) Net income attributable to the Company’s common shareholders $ 48,752 $ 38,505 $ 90,484 $ 76,401 Weighted average basic shares outstanding 201,414 193,629 200,293 193,605 Share options and restricted share units 1,395 563 1,234 626 Weighted average diluted shares outstanding (1) 202,809 194,192 201,527 194,231 Basic earnings per share attributable to common shareholders $ 0.24 $ 0.20 $ 0.45 $ 0.39 Diluted earnings per share attributable to common shareholders (2) $ 0.24 $ 0.20 $ 0.45 $ 0.39 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (dollars and units in thousands, except per unit amounts) Net income $ 50,366 $ 38,932 $ 93,681 $ 77,249 Operating Partnership interests of third parties (1,768) (389) (3,317) (772) Noncontrolling interest in subsidiaries 154 (38) 120 (76) Net income attributable to common unitholders $ 48,752 $ 38,505 $ 90,484 $ 76,401 Weighted average basic units outstanding 201,414 193,629 200,293 193,605 Unit options and restricted share units 1,395 563 1,234 626 Weighted average diluted units outstanding (1) 202,809 194,192 201,527 194,231 Basic earnings per unit attributable to common unitholders $ 0.24 $ 0.20 $ 0.45 $ 0.39 Diluted earnings per unit attributable to common unitholders (2) $ 0.24 $ 0.20 $ 0.45 $ 0.39 (1) For the three and six months ended June 30, 2021, the Company declared cash dividends per common share/unit of $0.34 and $0.68 , respectively, and $0.33 and $0.66 , respectively, for the same periods in 2020. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit as the exercise price was higher than the average share price of the Company for the three and six months ended June 30, 2020 were 1.3 million and 1.1 million, respectively. There were no anti-dilutive options for the three and six months ended June 30, 2021. |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 6 Months Ended |
Jun. 30, 2021segmentstate | |
Number of states in which self-storage facilities are located | state | 24 |
Number of reportable segments | segment | 1 |
Common stock, conversion ratio | 1 |
Cubesmart | |
Percentage of the entity's partnership interest in Operating Partnership | 96.50% |
STORAGE PROPERTIES - Summary (D
STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
STORAGE FACILITIES | ||
Storage properties | $ 5,536,376 | $ 5,489,754 |
Less: Accumulated depreciation | (1,026,337) | (983,940) |
Storage properties, net (including VIE assets of $132,927 and $119,345, respectively) | 4,510,039 | 4,505,814 |
Land | ||
STORAGE FACILITIES | ||
Storage properties | 1,113,737 | 1,093,503 |
Buildings and improvements | ||
STORAGE FACILITIES | ||
Storage properties | 4,197,607 | 4,122,995 |
Equipment | ||
STORAGE FACILITIES | ||
Storage properties | 123,199 | 123,044 |
Construction in progress | ||
STORAGE FACILITIES | ||
Storage properties | 60,419 | 108,316 |
Right-of-use assets - finance leases | ||
STORAGE FACILITIES | ||
Storage properties | $ 41,414 | $ 41,896 |
STORAGE PROPERTIES - Activity (
STORAGE PROPERTIES - Activity (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($)facility | Dec. 31, 2020USD ($)property | |
2021 Acquisitions | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 2 | |
Purchase Price | $ 34,075 | |
2021 Acquisitions | Minnesota Asset April 2021 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 12,000 | |
2021 Acquisitions | Maryland Asset June 2021 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 22,075 | |
2020 Acquisitions | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | 21 | 13 |
Purchase Price | $ 735,875 | $ 195,900 |
2020 Acquisitions | Texas Asset February 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 9,025 | |
2020 Acquisitions | Maryland Asset April 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 17,200 | |
2020 Acquisitions | New Jersey Asset April 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 48,450 | |
2020 Acquisitions | Florida Asset November 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 3,900 | |
2020 Acquisitions | Texas Asset, Austin, November 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 10,750 | |
2020 Acquisitions | Texas Asset, Dallas, November 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 10,150 | |
2020 Acquisitions | Nevada Asset December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 16,800 | |
2020 Acquisitions | New York Asset December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 6,750 | |
2020 Acquisitions | Storage Deluxe Assets December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 8 | |
Purchase Price | $ 540,000 | |
2020 Acquisitions | Florida Asset, Orlando, December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 3 | |
Purchase Price | $ 45,500 | |
2020 Acquisitions | Florida Assets, Tampa, December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 10,000 | |
2020 Acquisitions | Virginia Asset December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 17,350 | |
2020 Dispositions | ||
STORAGE FACILITIES | ||
Number of Facilities, dispositions (in properties) | facility | 1 | |
Sale Price | $ 12,750 | |
2020 Dispositions | New York Asset December 2020 | ||
STORAGE FACILITIES | ||
Number of Facilities, dispositions (in properties) | facility | 1 | |
Sale Price | $ 12,750 |
INVESTMENT ACTIVITY (Details)
INVESTMENT ACTIVITY (Details) | Jun. 29, 2021USD ($) | Jun. 28, 2021 | Dec. 22, 2020USD ($) | Sep. 29, 2020USD ($)shares | Sep. 28, 2020 | Jul. 20, 2020USD ($) | Jun. 30, 2021USD ($)propertyfacility | Mar. 31, 2021property | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)facilityproperty | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)itempropertyfacility | Jun. 30, 2021USD ($)propertyfacility |
Self-storage facilities | |||||||||||||
Number of facilities, construction completed and opened | $ 4 | ||||||||||||
Construction | |||||||||||||
Self-storage facilities | |||||||||||||
Total Construction Costs | 121,000,000 | ||||||||||||
New York | |||||||||||||
Self-storage facilities | |||||||||||||
Aggregate purchase price | $ 9,500,000 | ||||||||||||
Decrease in right-of-use asset | (5,100,000) | ||||||||||||
Decrease in operating lease liability | $ (5,000,000) | ||||||||||||
Cash paid for acquisition | $ 1,000,000 | ||||||||||||
Total consideration | $ 10,000,000 | ||||||||||||
Units issued (in shares) | shares | 276,497 | ||||||||||||
Units issued | $ 9,000,000 | ||||||||||||
Self-storage facilities under contract | |||||||||||||
Self-storage facilities | |||||||||||||
Deposit | $ 400,000 | $ 400,000 | 400,000 | ||||||||||
Expected aggregate purchase or sales price | $ 33,000,000 | $ 33,000,000 | $ 33,000,000 | ||||||||||
Number of facilities under contract | facility | 2 | 2 | 2 | ||||||||||
Self storage under construction | |||||||||||||
Self-storage facilities | |||||||||||||
Number of facilities under contract | property | 3 | 3 | 3 | ||||||||||
Development costs | $ 48,400,000 | $ 48,400,000 | $ 48,400,000 | ||||||||||
Expected construction cost | 75,000,000 | $ 75,000,000 | 75,000,000 | ||||||||||
Self-storage facility in East Meadow, NY | |||||||||||||
Self-storage facilities | |||||||||||||
Total consideration | $ 6,600,000 | ||||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||||
Self-storage facility in East Meadow, NY | Construction | |||||||||||||
Self-storage facilities | |||||||||||||
Total Construction Costs | 25,900,000 | ||||||||||||
Self-storage facility in King of Prussia, PA | |||||||||||||
Self-storage facilities | |||||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||||
Self-storage facility in King of Prussia, PA | Construction | |||||||||||||
Self-storage facilities | |||||||||||||
Total Construction Costs | 22,800,000 | ||||||||||||
Self-storage Facility in Brooklyn, NY | |||||||||||||
Self-storage facilities | |||||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||||
Self-storage Facility in Brooklyn, NY | Construction | |||||||||||||
Self-storage facilities | |||||||||||||
Total Construction Costs | 45,900,000 | ||||||||||||
Self-storage Facility in Arlington, VA | |||||||||||||
Self-storage facilities | |||||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||||
Self-storage Facility in Arlington, VA | Construction | |||||||||||||
Self-storage facilities | |||||||||||||
Total Construction Costs | 26,400,000 | ||||||||||||
2021 Acquisitions | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | facility | 2 | ||||||||||||
Aggregate purchase price | $ 34,075,000 | ||||||||||||
Intangible value of the in-place leases | 1,600,000 | $ 1,600,000 | $ 1,600,000 | ||||||||||
Estimated life | 12 months | ||||||||||||
Amortization expense | $ 49,000 | ||||||||||||
2021 Acquisitions | Maryland | |||||||||||||
Self-storage facilities | |||||||||||||
Aggregate purchase price | 22,100,000 | 22,100,000 | |||||||||||
2021 Acquisitions | Self-storage facility in Anoka, MN | |||||||||||||
Self-storage facilities | |||||||||||||
Aggregate purchase price | $ 12,000,000 | ||||||||||||
Ownership interest held by the entity (as a percent) | 50.00% | ||||||||||||
2020 Acquisitions | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | 21 | 13 | |||||||||||
Aggregate purchase price | $ 735,875,000 | $ 195,900,000 | |||||||||||
2020 Acquisitions | Leases, Acquired-in-Place | |||||||||||||
Self-storage facilities | |||||||||||||
Intangible value of the in-place leases | $ 11,400,000 | ||||||||||||
Estimated life | 12 months | ||||||||||||
Amortization expense | 2,400,000 | $ 400,000 | 5,200,000 | $ 500,000 | |||||||||
2020 Acquisitions | Texas | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 3 | ||||||||||||
2020 Acquisitions | Florida | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 5 | ||||||||||||
2020 Acquisitions | New York | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 1 | ||||||||||||
2020 Acquisitions | Maryland | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 1 | ||||||||||||
2020 Acquisitions | Nevada | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 1 | ||||||||||||
2020 Acquisitions | Virginia | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 1 | ||||||||||||
2020 Acquisitions | New Jersey | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | property | 1 | 1 | |||||||||||
2020 Acquisitions | Self-storage facilities located in New York | |||||||||||||
Self-storage facilities | |||||||||||||
Number of self-storage facilities acquired | facility | 8 | ||||||||||||
Number of real estate property acquisition tranches | item | 2 | ||||||||||||
Aggregate purchase price | $ 540,000,000 | ||||||||||||
Intangible value of the in-place leases | 48,600,000 | ||||||||||||
Cash paid for acquisition | 210,500,000 | ||||||||||||
Issuance of OP Shares | 175,100,000 | ||||||||||||
Repayments of debt | 33,200,000 | ||||||||||||
Units issued | $ 5,272,023 | ||||||||||||
Number of properties, assumed mortgage | item | 6 | ||||||||||||
Assumed mortgage debt, at fair value | $ 169,200,000 | ||||||||||||
Outstanding principal balance of mortgage debt assumed on acquisitions | 154,400,000 | ||||||||||||
Premium on debt assumed on acquisitions | $ 14,800,000 | ||||||||||||
2020 Acquisitions | Self-storage facilities located in New York | Leases, Acquired-in-Place | |||||||||||||
Self-storage facilities | |||||||||||||
Estimated life | 12 months | ||||||||||||
Amortization expense | $ 12,100,000 | 24,300,000 | |||||||||||
Number of assumed ground leases | item | 3 | ||||||||||||
Number of facilities acquired with existing ground leases, for which the leases were classifed as finance leases | item | 2 | ||||||||||||
Number of facilities acquired with existing ground leases, for which the leases were classified as operating leases | item | 1 | ||||||||||||
2020 Dispositions | |||||||||||||
Self-storage facilities | |||||||||||||
Aggregate sale price | $ 12,750,000 | ||||||||||||
2020 Dispositions | Self-storage facilities located in New York | |||||||||||||
Self-storage facilities | |||||||||||||
Aggregate sale price | $ 12,800,000 | ||||||||||||
Gains from sale of real estate, net | $ 6,700,000 | ||||||||||||
Joint Venture | Self-storage facility in East Meadow, NY | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest held by the entity (as a percent) | 51.00% | ||||||||||||
Minority ownership interest (as a percent) | 49.00% | ||||||||||||
Joint Venture | Self Storage Facility in Bayonne, NJ | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest held by the entity (as a percent) | 51.00% | ||||||||||||
Joint Venture | Self Storage Facility in Brooklyn, NY I | |||||||||||||
Self-storage facilities | |||||||||||||
Total consideration | $ 10,000,000 | ||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49.00% | ||||||||||||
Cash portion of put option paid | $ 1,000,000 | ||||||||||||
Units issued (in shares) | shares | 276,497 | ||||||||||||
Units issued | $ 9,000,000 | ||||||||||||
Cubesmart | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest by Parent | 96.50% | 96.50% | 96.50% | ||||||||||
Cubesmart | Self-storage facility in East Meadow, NY | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest by Parent | 100.00% | 100.00% | 100.00% | ||||||||||
Cubesmart | Self-storage facility in King of Prussia, PA | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest by Parent | 70.00% | 70.00% | 70.00% | ||||||||||
Cubesmart | Self-storage Facility in Brooklyn, NY | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest by Parent | 100.00% | 100.00% | 100.00% | ||||||||||
Cubesmart | Self-storage Facility in Arlington, VA | |||||||||||||
Self-storage facilities | |||||||||||||
Ownership interest by Parent | 90.00% | 90.00% | 90.00% |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Details) $ in Thousands | Feb. 05, 2021USD ($) | Mar. 19, 2020USD ($)facility | Sep. 05, 2018USD ($)property | Dec. 15, 2016 | Jun. 30, 2021USD ($)property | Jun. 29, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)property | Jun. 30, 2020USD ($) | Mar. 31, 2021USD ($) | Mar. 17, 2021 | Jan. 21, 2021USD ($) | Dec. 31, 2020USD ($)property | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 97,301 | $ 97,301 | $ 92,071 | ||||||||||||
Acquisitions of storage facilities | 31,516 | $ 72,814 | |||||||||||||
Credit facility, outstanding | 24,600 | 24,600 | 117,800 | ||||||||||||
Investment in joint venture | 5,000 | 5,000 | 5,000 | ||||||||||||
ASSETS | |||||||||||||||
Storage facilities, net | 4,510,039 | 4,510,039 | 4,505,814 | ||||||||||||
Total assets | 4,771,232 | 4,771,232 | 4,778,142 | ||||||||||||
Total revenues | 199,247 | $ 163,798 | 388,088 | 327,879 | |||||||||||
Equity | |||||||||||||||
CubeSmart | 1,846,524 | 1,846,524 | 1,832,216 | ||||||||||||
Joint venture partners | 13,509 | 13,509 | 8,632 | ||||||||||||
Total liabilities and equity | 4,771,232 | 4,771,232 | 4,778,142 | ||||||||||||
Equity | 1,860,033 | 1,768,717 | 1,860,033 | 1,768,717 | $ 1,886,199 | 1,840,848 | $ 1,790,290 | $ 1,807,336 | |||||||
Net income (loss) | 50,366 | 38,932 | 93,681 | 77,249 | |||||||||||
Company's share of net (loss) income | 316 | (174) | 336 | (179) | |||||||||||
HVPSE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | ||||||||||||||
Number of self-storage facilities acquired | facility | 14 | ||||||||||||||
Acquisitions of storage facilities | $ 135,300 | ||||||||||||||
Intangible value of the in-place leases | 7,700 | ||||||||||||||
Contribution To Real Estate Venture | $ 5,600 | ||||||||||||||
Interest rate (as percentage) | 1.60% | ||||||||||||||
HVPSE | Term Loan Facility | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Proceeds from debt | $ 81,600 | ||||||||||||||
HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Amount of debt repaid | 137,700 | ||||||||||||||
HVP IV | Secured Loan Due May 2021 | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Outstanding debt | 212,300 | $ 212,300 | |||||||||||||
HVP IV | LIBOR | Secured Loan Due May 2021 | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Interest rate (as percentage) | 1.95% | ||||||||||||||
HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Outstanding debt | $ 45,000 | $ 45,000 | |||||||||||||
HHFNE | LIBOR | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Interest rate (as percentage) | 1.20% | ||||||||||||||
HHFNE | LIBOR | Secured Debt Due December 2019 | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Interest rate (as percentage) | 1.20% | ||||||||||||||
Arizona | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Maryland | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Connecticut | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 3 | 3 | |||||||||||||
Connecticut | HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 3 | 3 | |||||||||||||
Massachusetts | HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 6 | 6 | |||||||||||||
Minnesota | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 1 | 1 | |||||||||||||
Rhode Island | HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Vermont | HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Illinois | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 4 | 4 | |||||||||||||
Florida | HVPSE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | facility | 2 | ||||||||||||||
Florida | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 4 | 4 | |||||||||||||
Texas | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 8 | 8 | |||||||||||||
Texas | HHF | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 34 | 34 | |||||||||||||
North Carolina | HHF | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 1 | 1 | |||||||||||||
South Carolina | HVPSE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | facility | 4 | ||||||||||||||
Georgia | HVPSE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | facility | 8 | ||||||||||||||
Georgia | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Pennsylvania | HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of storage facilities owned by investee | property | 1 | 1 | |||||||||||||
Ventures | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 97,301 | $ 97,301 | $ 92,071 | ||||||||||||
Number of storage facilities owned by investee | property | 91 | 91 | 83 | ||||||||||||
ASSETS | |||||||||||||||
Storage facilities, net | $ 780,772 | $ 780,772 | $ 662,833 | ||||||||||||
Other assets | 30,537 | 30,537 | 18,112 | ||||||||||||
Total assets | 811,309 | 811,309 | 680,945 | ||||||||||||
Total revenues | 21,240 | 16,797 | 40,063 | 31,402 | |||||||||||
LIABILITIES AND CAPITAL | |||||||||||||||
Debt | 439,155 | 439,155 | 359,985 | ||||||||||||
Other liabilities | 22,650 | 22,650 | 11,588 | ||||||||||||
Equity | |||||||||||||||
CubeSmart | 97,301 | 97,301 | 92,071 | ||||||||||||
Joint venture partners | 252,203 | 252,203 | 217,301 | ||||||||||||
Total liabilities and equity | 811,309 | 811,309 | 680,945 | ||||||||||||
Operating expenses | (9,492) | (7,978) | (18,097) | (14,920) | |||||||||||
Other expenses | (854) | (121) | (851) | (234) | |||||||||||
Interest expense, net | (2,673) | (2,985) | (6,208) | (5,705) | |||||||||||
Depreciation and amortization | (9,008) | (9,100) | (17,720) | (15,523) | |||||||||||
Net income (loss) | (787) | (3,387) | (2,813) | (4,980) | |||||||||||
Company's share of net (loss) income | 316 | $ (174) | 336 | $ (179) | |||||||||||
HVP V | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 7,364 | $ 7,364 | |||||||||||||
Ownership interest in partnership (as a percent) | 20.00% | 20.00% | 20.00% | ||||||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||||||||
Acquisitions of storage facilities | $ 37,000 | ||||||||||||||
Intangible value of the in-place leases | $ 1,500 | $ 1,500 | |||||||||||||
Contribution To Real Estate Venture | 7,400 | 7,400 | |||||||||||||
HVPSE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 4,872 | $ 4,872 | $ 5,015 | ||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | 10.00% | |||||||||||||
Number of storage facilities owned by investee | property | 14 | 14 | 14 | ||||||||||||
HVP IV | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 25,141 | $ 25,141 | $ 21,760 | ||||||||||||
Ownership interest in partnership (as a percent) | 20.00% | 20.00% | |||||||||||||
Number of storage facilities owned by investee | property | 27 | 27 | 21 | ||||||||||||
Contribution To Real Estate Venture | $ 30,600 | $ 30,600 | |||||||||||||
HHFNE | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 1,448 | $ 1,448 | $ 1,628 | ||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | 10.00% | |||||||||||||
Number of storage facilities owned by investee | property | 13 | 13 | 13 | ||||||||||||
Contribution To Real Estate Venture | $ 3,800 | $ 3,800 | |||||||||||||
HHF | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Investment in real estate entities | $ 58,476 | $ 58,476 | $ 63,668 | ||||||||||||
Ownership interest in partnership (as a percent) | 50.00% | 50.00% | |||||||||||||
Number of storage facilities owned by investee | property | 35 | 35 | 35 | ||||||||||||
Amount of loan obtained | $ 105,000 | ||||||||||||||
Interest on real estate venture debt | 2.58% | ||||||||||||||
Amount of debt repaid | $ 100,000 | ||||||||||||||
Capital Storage Partners, LLC | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Ownership interest in partnership (as a percent) | 100.00% | ||||||||||||||
Number of self-storage facilities acquired | property | 22 | ||||||||||||||
Investment in joint venture | $ 5,000 | ||||||||||||||
Series A Preferred shares, percentage | 11.00% | ||||||||||||||
Capital Storage Partners, LLC | Florida | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of self-storage facilities acquired | property | 4 | ||||||||||||||
Capital Storage Partners, LLC | Texas | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of self-storage facilities acquired | property | 13 | ||||||||||||||
Capital Storage Partners, LLC | Oklahoma | |||||||||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||||||||
Number of self-storage facilities acquired | property | 5 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) $ in Thousands | Sep. 05, 2018USD ($)property | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Other Assets | |||
Intangible assets, net of accumulated amortization of $16,688 and $2,123 | $ 29,930 | $ 57,820 | |
Accounts receivable, net | 5,905 | 5,829 | |
Prepaid property taxes | 5,497 | 6,334 | |
Prepaid property and casualty insurance | 5,603 | 2,626 | |
Amounts due from affiliates (see note 15) | 17,112 | 13,130 | |
Assets held in trust related to deferred compensation arrangements | 21,141 | 17,207 | |
Right-of-use assets (see note 14) | 54,683 | 55,302 | |
Equity investment recorded at cost | 5,000 | 5,000 | |
Other | 9,958 | 7,505 | |
Total | 154,829 | 170,753 | |
Accumulated amortization | $ 29,157 | $ 2,123 | |
Capital Storage Partners, LLC | |||
Other Assets | |||
Equity investment recorded at cost | $ 5,000 | ||
Ownership interest in partnership (as a percent) | 100.00% | ||
Number of self-storage facilities acquired | property | 22 | ||
Series A Preferred shares, percentage | 11.00% | ||
Capital Storage Partners, LLC | Florida | |||
Other Assets | |||
Number of self-storage facilities acquired | property | 4 | ||
Capital Storage Partners, LLC | Oklahoma | |||
Other Assets | |||
Number of self-storage facilities acquired | property | 5 | ||
Capital Storage Partners, LLC | Texas | |||
Other Assets | |||
Number of self-storage facilities acquired | property | 13 |
UNSECURED SENIOR NOTES (Details
UNSECURED SENIOR NOTES (Details) $ in Thousands | Apr. 04, 2017USD ($) | Oct. 26, 2015USD ($) | Dec. 17, 2013USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Mortgage loans and Notes payable | |||||
Less: Loan procurement costs, net | $ (2,836) | $ (3,275) | |||
Total unsecured senior notes, net | 2,031,626 | 2,030,372 | |||
Cubesmart, L P and Subsidiaries | |||||
Mortgage loans and Notes payable | |||||
Less: Loan procurement costs, net | (2,836) | (3,275) | |||
Total unsecured senior notes, net | 2,031,626 | 2,030,372 | |||
Senior Notes | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | 2,050,000 | 2,050,000 | |||
Less: Discount on issuance of notes, net | (7,086) | (7,470) | |||
Less: Loan procurement costs, net | (11,288) | (12,158) | |||
Total unsecured senior notes, net | $ 2,031,626 | 2,030,372 | |||
Senior Notes | Maximum | |||||
Mortgage loans and Notes payable | |||||
Consolidated leverage ratio | 0.60 | ||||
Secured debt leverage ratio | 0.40 | ||||
Senior Notes | Minimum | |||||
Mortgage loans and Notes payable | |||||
Consolidated interest coverage ratio | 1.50 | ||||
Financial and customary covenant, minimum unencumbered asset (as a percent) | 150.00% | ||||
Senior notes 4.375% due 2023 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | |
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | ||
Effective interest rate (as a percent) | 3.495% | 4.501% | 4.33% | ||
Effective weighted average interest rate (as a percent) | 4.33% | ||||
Proceeds from senior notes | $ 50,000 | $ 250,000 | |||
Debt instrument, redemption percentage | 105.04% | 98.995% | |||
Senior notes 4.000% due 2025 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | |
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | ||
Effective interest rate (as a percent) | 3.811% | 4.032% | 3.99% | ||
Effective weighted average interest rate (as a percent) | 3.994% | ||||
Proceeds from senior notes | $ 50,000 | $ 250,000 | |||
Debt instrument, redemption percentage | 101.343% | 99.735% | |||
Senior Notes 3.125% Due 2026 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 300,000 | 300,000 | |||
Interest rate (as a percent) | 3.125% | ||||
Effective interest rate (as a percent) | 3.18% | ||||
Senior Notes 4.375 % Due 2029 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 350,000 | 350,000 | |||
Interest rate (as a percent) | 4.375% | ||||
Effective interest rate (as a percent) | 4.46% | ||||
Senior Notes 3.000 % Due 2030 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 350,000 | 350,000 | |||
Interest rate (as a percent) | 3.00% | ||||
Effective interest rate (as a percent) | 3.04% | ||||
Senior Notes 2.000 % Due 2031 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 450,000 | $ 450,000 | |||
Interest rate (as a percent) | 2.00% | ||||
Effective interest rate (as a percent) | 2.10% |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Thousands | Apr. 04, 2017 | Oct. 26, 2015 | Dec. 17, 2013 | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 19, 2019 |
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Loan procurement costs, net of amortization | $ 2,836 | $ 3,275 | ||||
Less: Loan procurement costs, net | $ (2,836) | (3,275) | ||||
Revolver | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Effective interest rate (as a percent) | 1.20% | |||||
Remaining borrowing capacity | $ 724,800 | |||||
Outstanding letter of credit | $ 600 | |||||
Credit Facility | Minimum | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Fixed charge coverage ratio | 1.5 | |||||
Credit Facility | Maximum | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Total indebtedness to total asset value ratio (as a percent) | 60.00% | |||||
Credit Facility | Revolver | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Maximum borrowing capacity | $ 750,000 | |||||
Interest rate, basis spread (as a percent) | 1.10% | |||||
Facility fee (as a percent) | 0.15% | |||||
Senior notes 4.375% due 2023 | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Debt amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | ||
Proceeds from senior notes | $ 50,000 | $ 250,000 | ||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | |||
Effective interest rate (as a percent) | 3.495% | 4.501% | 4.33% | |||
Effective weighted average interest rate (as a percent) | 4.33% | |||||
Senior notes 4.000% due 2025 | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Debt amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | ||
Proceeds from senior notes | $ 50,000 | $ 250,000 | ||||
Interest rate (as a percent) | 4.00% | 4.00% | 4.00% | |||
Effective interest rate (as a percent) | 3.811% | 4.032% | 3.99% | |||
Effective weighted average interest rate (as a percent) | 3.994% | |||||
Senior Notes 4.375 % Due 2029 | ||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||||
Debt amount | $ 350,000 | $ 350,000 | ||||
Interest rate (as a percent) | 4.375% | |||||
Effective interest rate (as a percent) | 4.46% |
MORTGAGE LOANS AND NOTES PAYA_3
MORTGAGE LOANS AND NOTES PAYABLE - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Mortgage loans and Notes payable | ||
Less: Loan procurement costs, net | $ (2,836) | $ (3,275) |
Total mortgage loans and notes payable | 170,025 | 216,504 |
Net book value of self-storage facilities | 4,510,039 | 4,505,814 |
Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | 157,551 | 202,768 |
Plus: Unamortized fair value adjustment | 14,375 | 15,879 |
Less: Loan procurement costs, net | (1,901) | (2,143) |
Total mortgage loans and notes payable | 170,025 | 216,504 |
Net book value of self-storage facilities | $ 455,000 | 539,200 |
Bronx IX, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | 21,030 | |
Effective interest rate (as a percent) | 4.85% | |
Bronx X, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | 23,148 | |
Effective interest rate (as a percent) | 4.64% | |
Nashville V, TN | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 2,234 | 2,261 |
Effective interest rate (as a percent) | 3.85% | |
New York, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 29,663 | 29,981 |
Effective interest rate (as a percent) | 3.51% | |
Annapolis I, MD | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 5,192 | 5,283 |
Effective interest rate (as a percent) | 3.78% | |
Brooklyn XV, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 15,581 | 15,713 |
Effective interest rate (as a percent) | 2.15% | |
Long Island City IV, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 12,728 | 12,852 |
Effective interest rate (as a percent) | 2.15% | |
Long Island City II, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 18,932 | 19,094 |
Effective interest rate (as a percent) | 2.25% | |
Long Island City III, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 18,921 | 19,106 |
Effective interest rate (as a percent) | 2.25% | |
Flushing II, NY | Mortgages | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 54,300 | $ 54,300 |
Effective interest rate (as a percent) | 2.15% |
MORTGAGE LOANS AND NOTES PAYA_4
MORTGAGE LOANS AND NOTES PAYABLE - Future Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
Less: Loan procurement costs, net | $ (2,836) | $ (3,275) |
Total mortgage loans and notes payable, net | 170,025 | 216,504 |
Mortgages | ||
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
2021 | 1,165 | |
2022 | 2,426 | |
2023 | 32,591 | |
2024 | 32,329 | |
2025 | 979 | |
2026 and thereafter | 88,061 | |
Total mortgage payments | 157,551 | 202,768 |
Plus: Unamortized fair value adjustment | 14,375 | 15,879 |
Less: Loan procurement costs, net | (1,901) | (2,143) |
Total mortgage loans and notes payable, net | $ 170,025 | $ 216,504 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 1,886,199 | $ 1,790,290 | $ 1,840,848 | $ 1,807,336 |
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
Balance | 1,860,033 | 1,768,717 | 1,860,033 | 1,768,717 |
Unrealized losses on interest rate swaps | ||||
Changes in accumulated other comprehensive income by component | ||||
Unrealized losses on interest rate swaps | 40 | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (656) | |||
Balance | (616) | (616) | ||
Accumulated Other Comprehensive (Loss) Income | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (613) | (709) | (632) | (729) |
Balance | (594) | $ (689) | (594) | $ (689) |
AOCI Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 22 | $ 22 |
RISK MANAGEMENT AND USE OF FI_2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jan. 24, 2019 | Jun. 30, 2021 | Jun. 30, 2021 | Dec. 24, 2018 |
Derivative financial instruments | ||||
Realized losses reclassified from accumulated other comprehensive loss | $ 20 | $ 40 | ||
Amount estimated to be reclassified as an increase to interest expense | $ 100 | |||
Interest rate swap | ||||
Derivative financial instruments | ||||
Notional Amount | $ 150,000 | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Termination Premium | $ 800 | |||
Designated | Cash flow | ||||
Derivative financial instruments | ||||
Settlement of hedge transactions | $ 800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair value of financial assets and liabilities carried at fair value | ||
Derivative Assets | $ 0 | $ 0 |
Derivative Liabilities | 0 | 0 |
Level 2 | ||
Fair value of financial assets and liabilities carried at fair value | ||
Aggregate carrying value of total debt | 2,226,251 | 2,364,676 |
Estimated fair value of total debt | $ 2,363,150 | $ 2,571,300 |
NONCONTROLLING INTERESTS - Inte
NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands | Apr. 16, 2021USD ($) | Mar. 31, 2021facility | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($)facility | Dec. 31, 2020USD ($) |
Interests in Consolidated Real Estate Joint Ventures | |||||
Assets | $ 4,771,232 | $ 4,771,232 | $ 4,778,142 | ||
Total assets | 4,771,232 | 4,771,232 | 4,778,142 | ||
Liabilities | 2,573,782 | 2,573,782 | 2,687,880 | ||
Total liabilities | 2,573,782 | 2,573,782 | 2,687,880 | ||
Noncontrolling interests in subsidiaries | 13,509 | $ 13,509 | $ 8,632 | ||
Reduction to additional paid in capital | 5,104 | ||||
VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 6 | ||||
Assets | 132,714 | $ 132,714 | |||
Total assets | 132,714 | 132,714 | |||
Liabilities | 51,539 | 51,539 | |||
Total liabilities | 51,539 | $ 51,539 | |||
CS Vienna LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 72.00% | ||||
Assets | 19,802 | $ 19,802 | |||
Total assets | 19,802 | 19,802 | |||
Liabilities | 8,615 | 8,615 | |||
Total liabilities | 8,615 | 8,615 | |||
Carrying amount of mortgage loans | 6,700 | 6,700 | |||
Amount of mortgage loan commitment | 17,000 | $ 17,000 | |||
CS 750 W Merrick Rd LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 51.00% | ||||
Assets | 20,283 | $ 20,283 | |||
Total assets | 20,283 | 20,283 | |||
Liabilities | 10,604 | 10,604 | |||
Total liabilities | 10,604 | 10,604 | |||
Option to put ownership interest in the venture | $ 17,100 | ||||
Period of option to call ownership interest of another member | 1 year | ||||
Period of option to put ownership interest in venture | 2 years | ||||
Option to call ownership interest of another member | $ 17,100 | ||||
Initiation period for the call option | 12 months | ||||
Accretion liability | $ 9,800 | ||||
CS SDP Newtonville LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 90.00% | ||||
Assets | 19,190 | $ 19,190 | |||
Total assets | 19,190 | 19,190 | |||
Liabilities | 12,674 | 12,674 | |||
Total liabilities | 12,674 | 12,674 | |||
Carrying amount of mortgage loans | 11,800 | 11,800 | |||
Amount of mortgage loan commitment | 12,100 | $ 12,100 | |||
CS Valley Forge Village Storage LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 70.00% | ||||
Assets | 21,891 | $ 21,891 | |||
Total assets | 21,891 | 21,891 | |||
Liabilities | 13,866 | 13,866 | |||
Total liabilities | 13,866 | 13,866 | |||
Carrying amount of mortgage loans | 11,300 | 11,300 | |||
Amount of mortgage loan commitment | 12,400 | $ 12,400 | |||
SH3, LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 2 | 1 | |||
Ownership interest held by the entity (as a percent) | 90.00% | ||||
Assets | 39,334 | $ 39,334 | |||
Total assets | 39,334 | 39,334 | |||
Liabilities | 191 | 191 | |||
Total liabilities | 191 | $ 191 | |||
C S Lock Up Anoka LLC | VIE | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 50.00% | 50.00% | |||
Contribution To Real Estate Venture | $ 3,400 | ||||
Assets | 12,214 | $ 12,214 | |||
Total assets | 12,214 | 12,214 | |||
Liabilities | 5,589 | 5,589 | |||
Total liabilities | 5,589 | 5,589 | |||
Carrying amount of mortgage loans | 5,600 | 5,600 | |||
Amount of mortgage loan commitment | $ 6,100 | $ 6,100 | |||
C S Lock Up Anoka LLC | VIE | Minnesota | |||||
Interests in Consolidated Real Estate Joint Ventures | |||||
Purchase Price | $ 12,000 |
NONCONTROLLING INTERESTS - Oper
NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) $ in Thousands | Sep. 29, 2020USD ($)shares | Jul. 20, 2020USD ($) | Dec. 31, 2020USD ($)itemshares | Jun. 30, 2021USD ($)shares | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)shares |
Operating Partnership Ownership | ||||||||
OP Units outstanding which are not owned by the general partner (as a percent) | 3.60% | 3.50% | 3.60% | |||||
OP units outstanding (in shares) | shares | 7,420,828 | 7,284,506 | 7,420,828 | |||||
Adjustment for noncontrolling interest in the Operating Partnership | $ (63,025) | $ (32,102) | $ (615) | $ 7,976 | $ (4,200) | |||
New York | ||||||||
Operating Partnership Ownership | ||||||||
Purchase Price | $ 9,500 | |||||||
Total consideration | $ 10,000 | |||||||
Cash paid for acquisition | $ 1,000 | |||||||
Units issued (in shares) | shares | 276,497 | |||||||
Units issued | $ 9,000 | |||||||
Storage Deluxe assets | ||||||||
Operating Partnership Ownership | ||||||||
Purchase Price | $ 540,000 | |||||||
Number of tranches | item | 2 | |||||||
Units issued (in shares) | shares | 5,272,023 | |||||||
Units issued | $ 175,100 | |||||||
Cubesmart, L P and Subsidiaries | ||||||||
Operating Partnership Ownership | ||||||||
Adjustment for noncontrolling interest in the Operating Partnership | $ (63,025) | $ (32,102) | $ (615) | $ 7,976 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
LEASES | |||||
Lessor, Administrative and late fees income | $ 5,000 | $ 4,500 | $ 9,800 | $ 9,900 | |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||||
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true | ||||
Operating leases - Right-of-use assets | 54,683 | $ 54,683 | $ 55,302 | ||
Operating lease liabilities | $ 53,476 | $ 53,476 | $ 53,595 | ||
Weighted-average remaining lease term - operating leases | 34 years 4 months 24 days | 34 years 4 months 24 days | 34 years 9 months 18 days | ||
Weighted-average discount rate - operating leases | 4.47% | 4.47% | 4.46% | ||
Operating lease amount paid | $ 635 | $ 577 | $ 1,253 | $ 1,142 | |
Maximum | |||||
LEASES | |||||
Operating and Finance lease term (in years) | 44 years | ||||
Operating and Finance lease renewal term (in years) | 69 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lease information | ||||
Amortization of finance lease right of-of-use assets | $ 241 | $ 482 | ||
Interest expense related to finance lease liabilities | 533 | 1,060 | ||
Operating lease cost | 822 | $ 746 | 1,644 | $ 1,492 |
Short-term lease cost | 326 | 275 | 632 | 583 |
Total lease cost | 1,922 | 1,021 | 3,818 | 2,075 |
Operating cash outflows for finance leases | 445 | 861 | ||
Operating cash outflows for operating leases | 635 | 577 | 1,253 | 1,142 |
Total cash outflows for lease liability measurement | $ 1,080 | $ 577 | $ 2,114 | $ 1,142 |
Automobiles | ||||
Lease information | ||||
Lease term | 12 months | 12 months |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Lease information | ||
Finance leases - Right-of-use assets | $ 41,414 | $ 41,896 |
Finance lease liabilities | 65,798 | 65,599 |
Operating leases - Right-of-use assets | 54,683 | 55,302 |
Operating lease liabilities | $ 53,476 | $ 53,595 |
Weighted-average remaining lease term - finance leases | 43 years | 43 years 6 months |
Weighted-average remaining lease term - operating leases | 34 years 4 months 24 days | 34 years 9 months 18 days |
Weighted-average discount rate - finance leases | 3.25% | 3.25% |
Weighted-average discount rate - operating leases | 4.47% | 4.46% |
LEASES - Future Operating Lease
LEASES - Future Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Future operating lease liability maturities | |||||
2021 | $ 1,258 | $ 1,258 | |||
2022 | 2,639 | 2,639 | |||
2023 | 2,690 | 2,690 | |||
2024 | 2,540 | 2,540 | |||
2025 | 2,539 | 2,539 | |||
2026 and thereafter | 99,290 | 99,290 | |||
Total operating lease payments | 110,956 | 110,956 | |||
Less: Imputed interest | (57,480) | (57,480) | |||
Operating lease liabilities | 53,476 | 53,476 | $ 53,595 | ||
Operating lease amount paid | 635 | $ 577 | 1,253 | $ 1,142 | |
Finance lease, amount paid | 445 | 861 | |||
Future finance lease liability maturities | |||||
2021 | 1,075 | 1,075 | |||
2022 | 2,183 | 2,183 | |||
2023 | 2,183 | 2,183 | |||
2024 | 2,183 | 2,183 | |||
2025 | 2,224 | 2,224 | |||
2026 and thereafter | 122,932 | 122,932 | |||
Total lease payments | 132,780 | 132,780 | |||
Less: Imputed interest | (66,982) | (66,982) | |||
Finance lease liabilities | $ 65,798 | $ 65,798 | $ 65,599 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Joint ventures related to affiliated real estate investments - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
RELATED PARTY TRANSACTIONS | |||||
Management fees | $ 1.2 | $ 1 | $ 2.3 | $ 1.8 | |
Amounts due to the Company from related parties | 17.1 | 17.1 | $ 13.1 | ||
Mortgage loans receivable from consolidated joint ventures | 35.4 | 35.4 | $ 21.4 | ||
Ventures | |||||
RELATED PARTY TRANSACTIONS | |||||
Acquisition fees | $ 0.5 | $ 0 | $ 0.6 | $ 0.7 |
EARNINGS PER SHARE AND UNIT A_3
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Earnings Per Share and Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Basic and diluted earnings per common share | |||||||
Net income (loss) | $ 50,366 | $ 38,932 | $ 93,681 | $ 77,249 | |||
Noncontrolling interests in the Operating Partnership | (1,768) | (389) | (3,317) | (772) | |||
Noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) | |||
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 48,752 | $ 38,505 | $ 90,484 | $ 76,401 | |||
Weighted average basic shares outstanding (in shares) | 201,414,000 | 193,629,000 | 200,293,000 | 193,605,000 | |||
Share options and restricted share units (in shares) | 1,395,000 | 563,000 | 1,234,000 | 626,000 | |||
Weighted-average diluted shares outstanding (in shares) | 202,809,000 | 194,192,000 | 201,527,000 | 194,231,000 | |||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 | |||
Basic and diluted earnings per common unit | |||||||
Noncontrolling interests in the Operating Partnership | $ (1,768) | $ (389) | $ (3,317) | $ (772) | |||
Weighted average basic shares outstanding (in shares) | 201,414,000 | 193,629,000 | 200,293,000 | 193,605,000 | |||
Share options and restricted share units (in shares) | 1,395,000 | 563,000 | 1,234,000 | 626,000 | |||
Weighted average diluted shares outstanding (in shares) | 202,809,000 | 194,192,000 | 201,527,000 | 194,231,000 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 | |||
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 0 | 1,300,000 | 0 | 1,100,000 | |||
Common stock, cash dividends declared (in dollars per share) | $ 0.34 | $ 0.34 | $ 0.33 | $ 0.33 | $ 0.68 | $ 0.66 | |
Outstanding units of noncontrolling interest in the Operating Partnership (in shares) | 7,284,506 | 1,872,308 | 7,284,506 | 1,872,308 | |||
Common shares, shares outstanding | 201,768,903 | 193,728,951 | 201,768,903 | 193,728,951 | 197,405,989 | ||
Cubesmart, L P and Subsidiaries | |||||||
Basic and diluted earnings per common share | |||||||
Net income (loss) | $ 93,681 | $ 77,249 | |||||
Noncontrolling interests in the Operating Partnership | $ (1,768) | $ (389) | $ (3,317) | $ (772) | |||
Weighted average basic shares outstanding (in shares) | 201,414,000 | 193,629,000 | 200,293,000 | 193,605,000 | |||
Share options and restricted share units (in shares) | 1,395,000 | 563,000 | 1,234,000 | 626,000 | |||
Weighted-average diluted shares outstanding (in shares) | 202,809,000 | 194,192,000 | 201,527,000 | 194,231,000 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 | |||
Basic and diluted earnings per common unit | |||||||
Net Income | $ 50,366 | $ 38,932 | $ 93,681 | $ 77,249 | |||
Noncontrolling interests in the Operating Partnership | (1,768) | (389) | (3,317) | (772) | |||
Noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) | |||
Net income attributable to common unitholders | $ 48,752 | $ 38,505 | $ 90,484 | $ 76,401 | |||
Weighted average basic shares outstanding (in shares) | 201,414,000 | 193,629,000 | 200,293,000 | 193,605,000 | |||
Share options and restricted share units (in shares) | 1,395,000 | 563,000 | 1,234,000 | 626,000 | |||
Weighted average diluted shares outstanding (in shares) | 202,809,000 | 194,192,000 | 201,527,000 | 194,231,000 | |||
Basic earnings per unit attributable to common unitholders | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
EARNINGS PER SHARE AND UNIT A_4
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Common and Preferred Shares (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | ||||
Net proceeds from sale of common shares | $ 42,429 | $ 99,688 | $ (70) | $ (118) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Jul. 20, 2020USD ($) | Jul. 29, 2021USD ($)facility |
New York | ||
Subsequent Events | ||
Aggregate purchase price | $ 9.5 | |
Subsequent event | Assets in New Jersey and Pennsylvania | ||
Subsequent Events | ||
Number of self-storage facilities acquired | facility | 2 | |
Aggregate purchase price | $ 33 |
CONSOLIDATED BALANCE SHEETS (LP
CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Storage properties | $ 5,536,376 | $ 5,489,754 |
Less: Accumulated depreciation | (1,026,337) | (983,940) |
Storage properties, net (including VIE assets of $132,927 and $119,345, respectively) | 4,510,039 | 4,505,814 |
Cash and cash equivalents | 3,989 | 3,592 |
Restricted cash | 2,238 | 2,637 |
Loan procurement costs, net of amortization | 2,836 | 3,275 |
Investment in real estate ventures, at equity | 97,301 | 92,071 |
Other assets, net | 154,829 | 170,753 |
Total assets | 4,771,232 | 4,778,142 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,031,626 | 2,030,372 |
Revolving credit facility | 24,600 | 117,800 |
Mortgage loans and notes payable, net | 170,025 | 216,504 |
Lease liabilities - finance leases | 65,798 | 65,599 |
Accounts payable, accrued expenses and other liabilities | 176,854 | 159,140 |
Distributions payable | 71,277 | 68,301 |
Deferred revenue | 32,519 | 29,087 |
Security deposits | 1,083 | 1,077 |
Total liabilities | 2,573,782 | 2,687,880 |
Limited Partnership interests of third parties | 337,417 | 249,414 |
Commitments and contingencies | ||
Capital | ||
Accumulated other comprehensive loss | (594) | (632) |
Total liabilities and equity | 4,771,232 | 4,778,142 |
Cubesmart, L P and Subsidiaries | ||
ASSETS | ||
Storage properties | 5,536,376 | 5,489,754 |
Less: Accumulated depreciation | (1,026,337) | (983,940) |
Storage properties, net (including VIE assets of $132,927 and $119,345, respectively) | 4,510,039 | 4,505,814 |
Cash and cash equivalents | 3,989 | 3,592 |
Restricted cash | 2,238 | 2,637 |
Loan procurement costs, net of amortization | 2,836 | 3,275 |
Investment in real estate ventures, at equity | 97,301 | 92,071 |
Other assets, net | 154,829 | 170,753 |
Total assets | 4,771,232 | 4,778,142 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,031,626 | 2,030,372 |
Revolving credit facility | 24,600 | 117,800 |
Mortgage loans and notes payable, net | 170,025 | 216,504 |
Lease liabilities - finance leases | 65,798 | 65,599 |
Accounts payable, accrued expenses and other liabilities | 176,854 | 159,140 |
Distributions payable | 71,277 | 68,301 |
Deferred revenue | 32,519 | 29,087 |
Security deposits | 1,083 | 1,077 |
Total liabilities | 2,573,782 | 2,687,880 |
Limited Partnership interests of third parties | 337,417 | 249,414 |
Commitments and contingencies | ||
Capital | ||
Operating Partner | 1,847,118 | 1,832,848 |
Accumulated other comprehensive loss | (594) | (632) |
Total CubeSmart, L.P. capital | 1,846,524 | 1,832,216 |
Noncontrolling interests in subsidiaries | 13,509 | 8,632 |
Total capital | 1,860,033 | 1,840,848 |
Total liabilities and equity | $ 4,771,232 | $ 4,778,142 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Storage facilities, net | $ 4,510,039 | $ 4,505,814 |
VIE | ||
Storage facilities, net | 132,927 | 119,345 |
Cubesmart, L P and Subsidiaries | ||
Storage facilities, net | 4,510,039 | 4,505,814 |
Cubesmart, L P and Subsidiaries | VIE | ||
Storage facilities, net | $ 132,927 | $ 119,345 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES | ||||
Rental income | $ 170,359 | $ 140,484 | $ 332,835 | $ 281,469 |
Total revenues | 199,247 | 163,798 | 388,088 | 327,879 |
OPERATING EXPENSES | ||||
Property operating expenses | 63,751 | 55,345 | 124,979 | 111,085 |
Depreciation and amortization | 54,139 | 39,893 | 107,949 | 80,731 |
General and administrative | 11,560 | 9,543 | 22,476 | 19,908 |
Total operating expenses | 129,450 | 104,781 | 255,404 | 211,724 |
Interest: | ||||
Interest expense on loans | (19,112) | (18,702) | (38,346) | (37,383) |
Loan procurement amortization expense | (1,012) | (753) | (2,047) | (1,507) |
Equity in earnings (losses) of real estate ventures | 316 | (174) | 336 | (179) |
Other | 377 | (456) | 1,054 | 163 |
Total other expense | (19,431) | (20,085) | (39,003) | (38,906) |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Operating Partnership interests of third parties | $ (1,768) | $ (389) | $ (3,317) | $ (772) |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
Weighted-average basic units outstanding (in units) | 201,414 | 193,629 | 200,293 | 193,605 |
Weighted-average diluted units outstanding (in units) | 202,809 | 194,192 | 201,527 | 194,231 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 21,218 | $ 16,522 | $ 40,522 | $ 33,424 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | 7,670 | 6,792 | 14,731 | 12,986 |
Cubesmart, L P and Subsidiaries | ||||
REVENUES | ||||
Rental income | 170,359 | 140,484 | 332,835 | 281,469 |
Total revenues | 199,247 | 163,798 | 388,088 | 327,879 |
OPERATING EXPENSES | ||||
Property operating expenses | 63,751 | 55,345 | 124,979 | 111,085 |
Depreciation and amortization | 54,139 | 39,893 | 107,949 | 80,731 |
General and administrative | 11,560 | 9,543 | 22,476 | 19,908 |
Total operating expenses | 129,450 | 104,781 | 255,404 | 211,724 |
Interest: | ||||
Interest expense on loans | (19,112) | (18,702) | (38,346) | (37,383) |
Loan procurement amortization expense | (1,012) | (753) | (2,047) | (1,507) |
Equity in earnings (losses) of real estate ventures | 316 | (174) | 336 | (179) |
Other | 377 | (456) | 1,054 | 163 |
Total other expense | (19,431) | (20,085) | (39,003) | (38,906) |
NET INCOME | 50,366 | 38,932 | 93,681 | 77,249 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) |
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 50,520 | 38,894 | 93,801 | 77,173 |
Operating Partnership interests of third parties | (1,768) | (389) | (3,317) | (772) |
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 48,752 | $ 38,505 | $ 90,484 | $ 76,401 |
Basic earnings per unit attributable to common unitholders | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.24 | $ 0.20 | $ 0.45 | $ 0.39 |
Weighted-average basic units outstanding (in units) | 201,414 | 193,629 | 200,293 | 193,605 |
Weighted-average diluted units outstanding (in units) | 202,809 | 194,192 | 201,527 | 194,231 |
Cubesmart, L P and Subsidiaries | Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 21,218 | $ 16,522 | $ 40,522 | $ 33,424 |
Cubesmart, L P and Subsidiaries | Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 7,670 | $ 6,792 | $ 14,731 | $ 12,986 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other comprehensive income (loss): | ||||
Reclassification of realized losses on interest rate swaps | $ 20 | $ 20 | $ 40 | $ 40 |
OTHER COMPREHENSIVE INCOME | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 50,386 | 38,952 | 93,721 | 77,289 |
Comprehensive income attributable to Operating Partnership interests of third parties | (1,769) | (389) | (3,319) | (772) |
Comprehensive income attributable to noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 48,771 | 38,525 | 90,522 | 76,441 |
Cubesmart, L P and Subsidiaries | ||||
NET INCOME | 50,366 | 38,932 | 93,681 | 77,249 |
Other comprehensive income (loss): | ||||
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
OTHER COMPREHENSIVE INCOME | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 50,386 | 38,952 | 93,721 | 77,289 |
Comprehensive income attributable to Operating Partnership interests of third parties | (1,769) | (389) | (3,319) | (772) |
Comprehensive income attributable to noncontrolling interest in subsidiaries | 154 | (38) | 120 | (76) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 48,771 | $ 38,525 | $ 90,522 | $ 76,441 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2020 | |
Increase (Decrease) in Partners' Capital | |||||
Balance of Noncontrolling Interests in the Operating Partnership | $ 249,414 | ||||
Contributions from noncontrolling interests in subsidiaries | $ 5,104 | ||||
Distributions paid to noncontrolling interests in subsidiaries | (38) | (69) | $ (42) | $ (59) | |
Adjustment for Operating Partnership interests of third parties | (63,025) | (32,102) | (615) | 7,976 | $ (4,200) |
Net income (loss) | 48,598 | 41,766 | 38,543 | 37,934 | |
Other comprehensive income (loss), net | 19 | 19 | 20 | 20 | |
Balance of Noncontrolling Interests in the Operating Partnership | 337,417 | 249,414 | |||
Noncontrolling Interests in Operating Partnership | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance of Noncontrolling Interests in the Operating Partnership | 278,649 | 249,414 | 53,845 | 62,088 | 62,088 |
Adjustment for Operating Partnership interests of third parties | 63,025 | 32,102 | 615 | (7,976) | |
Net income (loss) | 1,768 | 1,549 | 389 | 383 | |
Other comprehensive income (loss), net | 1 | 1 | |||
Balance of Noncontrolling Interests in the Operating Partnership | 337,417 | 278,649 | 51,407 | 53,845 | 249,414 |
Cubesmart, L P and Subsidiaries | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance | 1,886,199 | 1,840,848 | 1,790,290 | 1,807,336 | 1,807,336 |
Balance of Noncontrolling Interests in the Operating Partnership | 249,414 | ||||
Contributions from noncontrolling interests in subsidiaries | 5,104 | ||||
Distributions paid to noncontrolling interests in subsidiaries | (38) | (69) | (42) | (59) | |
Issuance of common OP units | 42,429 | 99,688 | |||
Issuance of common OP units | (70) | (118) | |||
Conversion from OP units to shares | 3,549 | 1,913 | 2,824 | ||
Exercise of OP unit options | 4,075 | 1,172 | 135 | ||
Amortization of restricted OP units | 1,383 | 705 | 1,249 | 710 | |
OP unit compensation expense | 544 | 609 | 464 | 530 | |
Adjustment for Operating Partnership interests of third parties | (63,025) | (32,102) | (615) | 7,976 | |
Net income (loss) | 48,598 | 41,766 | 38,543 | 37,934 | |
Other comprehensive income (loss), net | 19 | 19 | 20 | 20 | |
Common OP unit distributions | (68,804) | (68,350) | (64,081) | (64,039) | |
Balance | 1,860,033 | 1,886,199 | 1,768,717 | 1,790,290 | 1,840,848 |
Balance of Noncontrolling Interests in the Operating Partnership | 337,417 | 249,414 | |||
Cubesmart, L P and Subsidiaries | Noncontrolling Interests in Operating Partnership | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance of Noncontrolling Interests in the Operating Partnership | 278,649 | 249,414 | 53,845 | 62,088 | 62,088 |
Conversion from OP units to shares | (3,549) | (1,913) | (2,824) | ||
Adjustment for Operating Partnership interests of third parties | 63,025 | 32,102 | 615 | (7,976) | |
Net income (loss) | 1,768 | 1,549 | 389 | 383 | |
Other comprehensive income (loss), net | 1 | 1 | |||
Common OP unit distributions | (2,477) | (2,504) | (618) | (650) | |
Balance of Noncontrolling Interests in the Operating Partnership | 337,417 | 278,649 | 51,407 | 53,845 | 249,414 |
Cubesmart, L P and Subsidiaries | Total Shareholders' Equity | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance | 1,877,602 | 1,832,216 | 1,782,321 | 1,799,346 | 1,799,346 |
Issuance of common OP units | 42,429 | 99,688 | |||
Issuance of common OP units | (70) | (118) | |||
Conversion from OP units to shares | 3,549 | 1,913 | 2,824 | ||
Exercise of OP unit options | 4,075 | 1,172 | 135 | ||
Amortization of restricted OP units | 1,383 | 705 | 1,249 | 710 | |
OP unit compensation expense | 544 | 609 | 464 | 530 | |
Adjustment for Operating Partnership interests of third parties | (63,025) | (32,102) | (615) | 7,976 | |
Net income (loss) | 48,752 | 41,732 | 38,505 | 37,896 | |
Other comprehensive income (loss), net | 19 | 19 | 20 | 20 | |
Common OP unit distributions | (68,804) | (68,350) | (64,081) | (64,039) | |
Balance | 1,846,524 | 1,877,602 | 1,760,752 | 1,782,321 | 1,832,216 |
Cubesmart, L P and Subsidiaries | Operating Partner | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance | $ 1,878,215 | $ 1,832,848 | $ 1,783,030 | $ 1,800,075 | $ 1,800,075 |
Balance (in units) | 200,422 | 197,406 | 193,587 | 193,557 | 193,557 |
Issuance of common OP units | $ 42,429 | $ 99,688 | |||
Issuance of common OP units (in units) | 1,046 | 2,837 | |||
Issuance of restricted OP units (in units) | 31 | 32 | 28 | 30 | |
Issuance of common OP units | $ (70) | $ (118) | |||
Conversion from OP units to shares | $ 3,549 | $ 1,913 | $ 2,824 | ||
Conversion from OP units to shares (in units) | 81 | 55 | 100 | ||
Exercise of OP unit options | $ 4,075 | $ 1,172 | $ 135 | ||
Exercise of OP unit options (in units) | 189 | 92 | 14 | ||
Amortization of restricted OP units | $ 1,383 | $ 705 | $ 1,249 | 710 | |
OP unit compensation expense | 544 | 609 | 464 | 530 | |
Adjustment for Operating Partnership interests of third parties | (63,025) | (32,102) | (615) | 7,976 | |
Net income (loss) | 48,752 | 41,732 | 38,505 | 37,896 | |
Common OP unit distributions | (68,804) | (68,350) | (64,081) | (64,039) | |
Balance | $ 1,847,118 | $ 1,878,215 | $ 1,761,441 | $ 1,783,030 | $ 1,832,848 |
Balance (in units) | 201,769 | 200,422 | 193,729 | 193,587 | 197,406 |
Cubesmart, L P and Subsidiaries | Accumulated Other Comprehensive (Loss) Income | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance | $ (613) | $ (632) | $ (709) | $ (729) | $ (729) |
Other comprehensive income (loss), net | 19 | 19 | 20 | 20 | |
Balance | (594) | (613) | (689) | (709) | (632) |
Cubesmart, L P and Subsidiaries | Noncontrolling Interest in Subsidiaries | |||||
Increase (Decrease) in Partners' Capital | |||||
Balance | 8,597 | 8,632 | 7,969 | 7,990 | 7,990 |
Contributions from noncontrolling interests in subsidiaries | 5,104 | ||||
Distributions paid to noncontrolling interests in subsidiaries | (38) | (69) | (42) | (59) | |
Net income (loss) | (154) | 34 | 38 | 38 | |
Balance | $ 13,509 | $ 8,597 | $ 7,965 | $ 7,969 | $ 8,632 |
CONSOLIDATED STATEMENTS OF EQ_3
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (LP cube) - $ / shares | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Cubesmart, L P and Subsidiaries | ||||
Common OP unit distributions (in dollars per share) | $ 0.34 | $ 0.33 | $ 0.34 | $ 0.33 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Activities | ||
Net income (loss) | $ 93,681 | $ 77,249 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 109,996 | 82,238 |
Non-cash portion of interest expense related to finance leases | 199 | |
Equity in (earnings) losses of real estate ventures | (336) | 179 |
Equity compensation expense | 4,043 | 3,603 |
Accretion of fair market value adjustment of debt | (1,120) | (354) |
Changes in other operating accounts: | ||
Other assets | (11,935) | 324 |
Accounts payable and accrued expenses | 19,439 | 23,940 |
Other liabilities | 3,391 | 1,336 |
Net cash provided by operating activities | 217,358 | 188,515 |
Investing Activities | ||
Acquisitions of storage properties | (31,516) | (72,814) |
Additions and improvements to storage properties | (18,506) | (30,772) |
Development costs | (33,054) | (18,180) |
Investment in real estate ventures | (11,749) | (5,908) |
Cash distributed from real estate ventures | 6,855 | 3,149 |
Net cash used in investing activities | (87,970) | (124,525) |
Proceeds from: | ||
Revolving credit facility | 422,756 | 127,217 |
Principal payments on: | ||
Revolving credit facility | (515,956) | (111,817) |
Mortgage loans and notes payable | (45,217) | (1,262) |
Cash paid upon vesting of restricted OP units | (802) | (650) |
Contributions from noncontrolling interests in subsidiaries | 1,731 | |
Distributions paid to noncontrolling interests in subsidiaries | (107) | (101) |
Distributions paid to common OP unitholders | (135,722) | (128,074) |
Net cash provided by financing activities | (129,390) | (116,039) |
Change in cash, cash equivalents and restricted cash | (2) | (52,049) |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 6,227 | |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 38,824 | 37,726 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (2,623) | |
Accretion of put liability | 4,889 | 1,792 |
Derivative valuation adjustment | (40) | (40) |
Contributions from noncontrolling interests in subsidiaries | 3,373 | |
Cubesmart, L P and Subsidiaries | ||
Operating Activities | ||
Net income (loss) | 93,681 | 77,249 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 109,996 | 82,238 |
Non-cash portion of interest expense related to finance leases | 199 | |
Equity in (earnings) losses of real estate ventures | (336) | 179 |
Equity compensation expense | 4,043 | 3,603 |
Accretion of fair market value adjustment of debt | (1,120) | (354) |
Changes in other operating accounts: | ||
Other assets | (11,935) | 324 |
Accounts payable and accrued expenses | 19,439 | 23,940 |
Other liabilities | 3,391 | 1,336 |
Net cash provided by operating activities | 217,358 | 188,515 |
Investing Activities | ||
Acquisitions of storage properties | (31,516) | (72,814) |
Additions and improvements to storage properties | (18,506) | (30,772) |
Development costs | (33,054) | (18,180) |
Investment in real estate ventures | (11,749) | (5,908) |
Cash distributed from real estate ventures | 6,855 | 3,149 |
Net cash used in investing activities | (87,970) | (124,525) |
Proceeds from: | ||
Revolving credit facility | 422,756 | 127,217 |
Principal payments on: | ||
Revolving credit facility | (515,956) | (111,817) |
Mortgage loans and notes payable | (45,217) | (1,262) |
Proceeds from issuance of common OP units | 142,117 | (188) |
Cash paid upon vesting of restricted OP units | (802) | (650) |
Exercise of OP unit options | 5,247 | 135 |
Contributions from noncontrolling interests in subsidiaries | 1,731 | |
Distributions paid to noncontrolling interests in subsidiaries | (107) | (101) |
Distributions paid to common OP unitholders | (139,159) | (129,373) |
Net cash provided by financing activities | (129,390) | (116,039) |
Change in cash, cash equivalents and restricted cash | (2) | (52,049) |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 6,227 | 6,392 |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 38,824 | 37,726 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (2,623) | |
Accretion of put liability | 4,889 | 1,792 |
Derivative valuation adjustment | 40 | $ 40 |
Contributions from noncontrolling interests in subsidiaries | $ 3,373 |