Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 23, 2022 | Jun. 30, 2021 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Road | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,345,935,587 | ||
Entity Common Stock, Shares Outstanding | 224,002,775 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001298675 | ||
Amendment Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Philadelphia, Pennsylvania | ||
CubeSmart, L.P. and Subsidiaries | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Road | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 337,418,318 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001300485 | ||
Amendment Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Storage properties | $ 7,183,494 | $ 5,489,754 |
Less: Accumulated depreciation | (1,085,824) | (983,940) |
Storage properties, net (including VIE assets of $149,467 and $119,345, respectively) | 6,097,670 | 4,505,814 |
Cash and cash equivalents | 11,140 | 3,592 |
Restricted cash | 2,178 | 2,637 |
Loan procurement costs, net of amortization | 2,322 | 3,275 |
Investment in real estate ventures, at equity | 119,751 | 92,071 |
Assets held for sale | 49,313 | |
Other assets, net | 265,705 | 170,753 |
Total assets | 6,548,079 | 4,778,142 |
LIABILITIES AND EQUITY | ||
Unsecured senior notes, net | 2,768,209 | 2,030,372 |
Revolving credit facility | 209,900 | 117,800 |
Mortgage loans and notes payable, net | 167,676 | 216,504 |
Lease liabilities - finance leases | 65,801 | 65,599 |
Accounts payable, accrued expenses and other liabilities | 199,985 | 159,140 |
Distributions payable | 97,417 | 68,301 |
Deferred revenue | 37,144 | 29,087 |
Security deposits | 1,065 | 1,077 |
Liabilities held for sale | 2,502 | |
Total liabilities | 3,549,699 | 2,687,880 |
Noncontrolling interests in the Operating Partnership | 108,220 | 249,414 |
Commitments and contingencies | ||
Equity | ||
Common shares $.01 par value, 400,000,000 shares authorized, 223,917,993 and 197,405,989 shares issued and outstanding at December 31, 2021 and 2020, respectively | 2,239 | 1,974 |
Additional paid-in capital | 4,088,392 | 2,805,673 |
Accumulated other comprehensive loss | (570) | (632) |
Accumulated deficit | (1,218,498) | (974,799) |
Total CubeSmart shareholders' equity | 2,871,563 | 1,832,216 |
Noncontrolling interests in subsidiaries | 18,597 | 8,632 |
Total equity | 2,890,160 | 1,840,848 |
Total liabilities and equity | $ 6,548,079 | $ 4,778,142 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Storage properties | $ 6,097,670 | $ 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 | 223,917,993 | 197,405,989 |
Common shares, shares outstanding | 223,917,993 | 197,405,989 |
VIE | ||
Storage properties | $ 149,467 | $ 119,345 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | |||
Rental income | $ 707,751 | $ 581,009 | $ 552,404 |
Total revenues | 822,564 | 679,177 | 643,915 |
OPERATING EXPENSES | |||
Property operating expenses | 252,104 | 223,634 | 209,739 |
Depreciation and amortization | 232,049 | 156,573 | 163,547 |
General and administrative | 47,809 | 41,423 | 38,560 |
Total operating expenses | 531,962 | 421,630 | 411,846 |
Interest: | |||
Interest expense on loans | (78,448) | (75,890) | (72,525) |
Loan procurement amortization expense | (8,168) | (2,674) | (2,819) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 25,275 | 178 | 11,122 |
Gains from sales of real estate, net | 32,698 | 6,710 | 1,508 |
Other | (10,818) | (240) | 1,416 |
Total other expense | (59,789) | (89,936) | (61,298) |
NET INCOME | 230,813 | 167,611 | 170,771 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Noncontrolling interests in the Operating Partnership | (7,873) | (1,825) | (1,708) |
Noncontrolling interest in subsidiaries | 542 | (165) | 54 |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 223,482 | $ 165,621 | $ 169,117 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 1.10 | $ 0.85 | $ 0.89 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Weighted average basic shares outstanding (in shares) | 203,832 | 194,147 | 190,874 |
Weighted average diluted shares outstanding (in shares) | 205,009 | 194,943 | 191,576 |
Other Property Related Income | |||
REVENUES | |||
Property related income | $ 83,605 | $ 70,723 | $ 67,558 |
Property Management Fee Income | |||
REVENUES | |||
Property related income | $ 31,208 | $ 27,445 | $ 23,953 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
NET INCOME | $ 230,813 | $ 167,611 | $ 170,771 |
Other comprehensive income: | |||
Unrealized gains on interest rate swaps | 232 | ||
Reclassification of realized losses on interest rate swaps | 81 | 81 | 70 |
OTHER COMPREHENSIVE INCOME: | 81 | 81 | 302 |
COMPREHENSIVE INCOME | 230,894 | 167,692 | 171,073 |
Comprehensive income attributable to noncontrolling interests in the Operating Partnership | (7,892) | (1,809) | (1,710) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 542 | (165) | 54 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 223,544 | $ 165,718 | $ 169,417 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total Shareholders' Equity | Common Shares | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest in Subsidiaries | Noncontrolling Interests in the Operating Partnership | Total |
Balance at Dec. 31, 2018 | $ 1,709,678 | $ 1,871 | $ 2,500,751 | $ (1,029) | $ (791,915) | $ 6,771 | $ 1,716,449 | |
Balance (in shares) at Dec. 31, 2018 | 187,145 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2018 | $ 55,819 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 7,376 | 7,376 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (188) | (188) | ||||||
Acquisition of noncontrolling interest in subsidiary | (34,690) | (34,690) | (5,915) | (40,605) | ||||
Issuance of common shares, net | 196,304 | $ 60 | 196,244 | 196,304 | ||||
Issuance of common shares, net (in shares) | 5,899 | |||||||
Issuance of restricted shares (in shares) | 52 | |||||||
Issuance of OP units | 3,576 | |||||||
Conversion from units to shares | 2,486 | $ 1 | 2,485 | (2,486) | 2,486 | |||
Conversion from units to shares (in shares) | 80 | |||||||
Exercise of stock options | 3,686 | $ 4 | 3,682 | 3,686 | ||||
Exercise of stock options (in shares) | 381 | |||||||
Amortization of restricted shares | 4,487 | 4,487 | 4,487 | |||||
Share compensation expense | 1,786 | 1,786 | 1,786 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (5,918) | (5,918) | 5,918 | (5,918) | ||||
Net income (loss) | 169,117 | 169,117 | (54) | 169,063 | ||||
Net income (loss) | 1,708 | |||||||
Other comprehensive income (loss), net | 300 | 300 | 300 | |||||
Other comprehensive income (loss), net | 2 | |||||||
Common share distributions | (247,890) | (247,890) | (2,449) | (247,890) | ||||
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 | ||||||||
Contributions from noncontrolling interest in subsidiaries | 682 | 682 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (205) | (205) | ||||||
Issuance of common shares, net | 120,727 | $ 37 | 120,690 | 120,727 | ||||
Issuance of common shares, net (in shares) | 3,627 | |||||||
Issuance of restricted shares (in shares) | 60 | |||||||
Issuance of OP units | 186,933 | |||||||
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 | 961 | 961 | 961 | |||||
Exercise of stock options (in shares) | 62 | |||||||
Amortization of restricted shares | 4,502 | 4,502 | 4,502 | |||||
Share compensation expense | 1,952 | 1,952 | 1,952 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (4,230) | (4,230) | 4,230 | (4,230) | ||||
Net income (loss) | 165,621 | 165,621 | 165 | 165,786 | ||||
Net income (loss) | 1,825 | |||||||
Other comprehensive income (loss), net | 97 | 97 | 97 | |||||
Other comprehensive income (loss), net | (16) | |||||||
Common share distributions | (259,584) | (259,584) | (2,822) | (259,584) | ||||
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 | ||||||||
Contributions from noncontrolling interest in subsidiaries | 11,404 | 11,404 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (246) | (246) | ||||||
Acquisition of noncontrolling interest in subsidiary | (2,746) | (2,746) | (651) | (3,397) | ||||
Issuance of common shares, net | 965,638 | $ 205 | 965,433 | 965,638 | ||||
Issuance of common shares, net (in shares) | 20,508 | |||||||
Issuance of restricted shares (in shares) | 66 | |||||||
Conversion from units to shares | 305,015 | $ 56 | 304,959 | (305,015) | 305,015 | |||
Conversion from units to shares (in shares) | 5,519 | |||||||
Exercise of stock options | 7,865 | $ 4 | 7,861 | 7,865 | ||||
Exercise of stock options (in shares) | 419 | |||||||
Amortization of restricted shares | 4,941 | 4,941 | 4,941 | |||||
Share compensation expense | 2,271 | 2,271 | 2,271 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (164,109) | (164,109) | 164,109 | (164,109) | ||||
Net income (loss) | 223,482 | 223,482 | (542) | 222,940 | ||||
Net income (loss) | 7,873 | |||||||
Other comprehensive income (loss), net | 62 | 62 | 62 | |||||
Other comprehensive income (loss), net | 19 | |||||||
Common share distributions | (303,072) | (303,072) | (8,180) | (303,072) | ||||
Balance at Dec. 31, 2021 | $ 2,871,563 | $ 2,239 | $ 4,088,392 | $ (570) | $ (1,218,498) | $ 18,597 | 2,890,160 | |
Balance (in shares) at Dec. 31, 2021 | 223,918 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2021 | $ 108,220 | $ 108,220 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF EQUITY | |||
Common share distributions (in dollars per share) | $ 1.45 | $ 1.33 | $ 1.29 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net income | $ 230,813 | $ 167,611 | $ 170,771 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 240,217 | 159,247 | 166,366 |
Non-cash portion of interest expense related to finance leases | 202 | ||
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (25,275) | (178) | (11,122) |
Gains from sales of real estate, net | (32,698) | (6,710) | (1,508) |
Equity compensation expense | 8,088 | 7,140 | 6,694 |
Accretion of fair market value adjustment of debt | (2,037) | (259) | (718) |
Changes in other operating accounts: | |||
Other assets | (9,247) | (9,674) | (6,578) |
Accounts payable and accrued expenses | 14,871 | 13,922 | 6,042 |
Other liabilities | 3,923 | 1,914 | 1,821 |
Net cash provided by operating activities | 449,185 | 351,033 | 331,768 |
Investing Activities | |||
Acquisitions of storage properties | (151,547) | (417,988) | (117,998) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (34,608) | (49,857) | (37,569) |
Development costs | (69,887) | (55,286) | (102,826) |
Cash paid for partner's interest in real estate venture, net of cash, cash equivalents and restricted cash acquired | (117,959) | ||
Investment in real estate ventures | (28,261) | (7,022) | (10,264) |
Cash distributed from real estate ventures | 66,593 | 6,246 | 7,096 |
Proceeds from sale of real estate, net | 44,026 | 12,466 | 3,856 |
Net cash used in investing activities | (1,852,668) | (511,441) | (375,664) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | 696,426 |
Revolving credit facility | 906,571 | 429,085 | 859,313 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (814,471) | (311,285) | (1,158,776) |
Unsecured term loans | (200,000) | ||
Mortgage loans and notes payable | (87,263) | (46,093) | (11,652) |
Loan procurement costs | (12,548) | (3,764) | (6,023) |
Debt prepayment costs | (20,023) | (17,584) | |
Settlement of hedge transactions | (807) | ||
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | (35,777) | |
Proceeds from issuance of common shares, net | 965,638 | 120,727 | 196,304 |
Cash paid upon vesting of restricted shares | (876) | (686) | (421) |
Exercise of stock options | 7,865 | 961 | 3,686 |
Contributions from noncontrolling interests in subsidiaries | 8,031 | 48 | |
Distributions paid to noncontrolling interests in subsidiaries | (246) | (205) | (188) |
Distributions paid to common shareholders | (273,839) | (256,253) | (243,859) |
Distributions paid to noncontrolling interests in Operating Partnership | (8,297) | (2,540) | (2,419) |
Net cash provided by financing activities | 1,410,572 | 108,196 | 95,855 |
Change in cash, cash equivalents and restricted cash | 7,089 | (52,212) | 51,959 |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 | 6,482 |
Cash, cash equivalents and restricted cash at end of period | 13,318 | 6,229 | 58,441 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 79,148 | 80,792 | 69,283 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (2,623) | ||
Proceeds held in escrow from real estate venture's sale of real estate (see note 4) | 8,288 | ||
Noncash consideration for acquisition of partner's interest in real estate venture (see note 4) | (8,288) | ||
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | 3,574 |
Noncash drawdown on revolving credit facility | 103,938 | ||
Mortgage loan assumptions | 40,880 | 169,056 | |
Repayment of unsecured term loan through noncash drawdown on revolving credit facility | (100,000) | ||
Accretion of put liability | 9,777 | 7,917 | 5,895 |
Derivative valuation adjustment | 81 | 81 | 302 |
Loan procurement costs | (3,770) | ||
Issuance of OP units (see note 4) | 186,933 | 3,576 | |
Acquisition of noncontrolling interest in subsidiary | (4,828) | ||
Contributions from noncontrolling interests in subsidiaries | $ 3,373 | $ 682 | $ 7,328 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 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 December 31, 2021, the Company owned (or partially owned and consolidated) self-storage properties located in the District of Columbia and 24 states throughout the United States which are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage properties. As of December 31, 2021, the Parent Company owned approximately 99.2% 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”. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the Company is presented as noncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”) and if the Company is deemed to be the primary beneficiary in accordance with authoritative guidance issued on the consolidation of VIEs. To the extent that the Company (i) has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) has the obligation or rights to absorb the VIE's losses or receive its benefits, then the Company is considered the primary beneficiary. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary, and (ii) entities that are non-VIEs which the Company controls and which the limited partners do not have the ability to dissolve or remove the Company without cause nor substantive participating rights. The Operating Partnership meets the criteria as a 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. Noncontrolling Interests The Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding noncontrolling interests in consolidated financial statements which was effective on January 1, 2009. The guidance states that noncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Under the guidance, such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from controlled or consolidated entities that are less than wholly owned are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. However, per the FASB issued authoritative guidance on the classification and measurement of redeemable securities, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity 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 noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the FASB issued guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a Company’s own stock to evaluate whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. The guidance also requires that noncontrolling interests are adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption fair value. The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company. These interests were issued in the form of OP units and were a component of the consideration the Company paid to acquire certain self-storage properties. Limited partners who acquired OP units have the right to require the Operating Partnership to redeem part or all of their OP units for, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair value of an equivalent number of common shares of the Company. However, the operating agreement contains certain circumstances that could result in a net cash settlement outside the control of the Company, as the Company does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance discussed above, the Company will continue to record these noncontrolling interests outside of permanent equity in the consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of operations. The Company has adjusted the carrying value of its noncontrolling interests subject to redemption value to the extent applicable. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Operating Partnership reflected these interests at their redemption value as of December 31, 2021, as the estimated redemption value exceeded their carrying value. The Operating Partnership recorded an increase to OP Units owned by third parties and a corresponding decrease to capital of $164.1 million as of December 31, 2021. Disclosure of such redemption provisions is provided in note 12. Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Although management believes the assumptions and estimates made are reasonable and appropriate, as discussed in the applicable sections throughout these consolidated financial statements, different assumptions and estimates could materially impact the Company’s reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions, and changes in market conditions could impact the Company’s future operating results. Self-Storage Properties Self-storage properties are carried at historical cost less accumulated depreciation and impairment losses. The cost of self-storage properties reflects their purchase price or development cost. Acquisition costs are accounted for in accordance with Accounting Standard Update (“ASU”) No. 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January 1, 2018, and are generally capitalized. Costs incurred for the renovation of a store are capitalized to the Company’s investment in that store. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs to develop self-storage properties are capitalized to construction in progress while the projects are under development. Purchase Price Allocation When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements and equipment are recorded based upon their respective fair values as estimated by management. If appropriate, the Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the storage leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the purchase price has been allocated to above- or below-market lease intangibles associated with storage leases assumed at acquisition. Above- or below- market lease intangibles associated with assumed leases in which the Company serves as lessee are recorded as an adjustment to the right-of-use asset and reflect the difference between the contractual amounts to be paid pursuant to each in-place lease and management’s estimate of fair market lease rates. These amounts are amortized over the term of the lease. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. Depreciation and Amortization The costs of self-storage properties and improvements are depreciated using the straight-line method based on useful lives ranging from five to 39 years . Right-of-use assets associated with finance leases are amortized from the lease commencement date to the earlier of the useful life of the right-to-use asset or the end of the lease term. Fully depreciated or amortized assets and the associated accumulated depreciation or amortization are written off. The Company wrote off fully depreciated or amortized real estate assets and in-place lease intangible assets of $52.7 million and $59.9 million, respectively, for the year ended December 31, 2021, and $83.4 million and $20.5 million, respectively, for the year ended December 31, 2020. Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the store’s basis is recoverable. If a store’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized during the years ended December 31, 2021, 2020 and 2019. Long-Lived Assets Held for Sale We consider long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell a store (or group of stores), (b) the store is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such stores, (c) an active program to locate a buyer and other actions required to complete the plan to sell the store have been initiated, (d) the sale of the store is probable and transfer of the asset is expected to be completed within one year , (e) the store is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer, and there are no contingencies related to the sale that may prevent the transaction from closing. However, each potential transaction is evaluated based on its separate facts and circumstances. Stores classified as held for sale are reported at the lesser of carrying value or fair value less estimated costs to sell and are not depreciated. The Club Operations (defined below) acquired through our acquisition of LAACO (defined below) have been classified as held for sale as of December 31, 2021. There were no stores classified as held for sale as of December 31, 2021. Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company may maintain cash equivalents in financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. Restricted Cash Restricted cash generally consists of cash deposits required for debt service, capital replacement and expense reserves in connection with the terms of our loan agreements. Loan Procurement Costs Loan procurement costs related to borrowings were $50.1 million and $38.1 million as of December 31, 2021 and 2020, respectively, and are reported net of accumulated amortization of $14.3 million and $13.1 million as of December 31, 2021 and 2020, respectively. In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company’s revolving credit facility remain in Loan procurement costs, net of amortization on the Company’s consolidated balance sheets. The costs are amortized over the estimated life of the related debt using the effective interest method and are reported as Loan procurement amortization expense on the Company’s consolidated statements of operations. Other Assets Other assets are comprised of the following as of December 31, 2021 and 2020: December 31, 2021 2020 (in thousands) Intangible assets, net of accumulated amortization of $12,760 and $2,123 $ 108,794 $ 57,820 Accounts receivable, net 8,145 5,829 Prepaid property taxes 6,938 6,334 Prepaid property and casualty insurance 3,352 2,626 Amounts due from affiliates (see note 14) 15,417 13,130 Assets related to deferred compensation arrangements 60,297 17,207 Right-of-use assets - operating leases (see note 13) 54,741 55,302 Equity investment recorded at cost (1) — 5,000 Other 8,021 7,505 Total other assets, net $ 265,705 $ 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 then newly formed venture that acquired 22 self-storage properties located in Florida (4) , Oklahoma (5) and Texas (13) . The Class A preferred units earned an 11% cumulative dividend prior to any other distributions. On August 24, 2021, the Class A preferred units and all accrued and unpaid dividends were redeemed and paid, respectively. Prior to this redemption, the Company’s investment in Capital Storage and the related dividends were 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. The Company no longer has an ownership interest in Capital Storage. Environmental Costs Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional stores. Whenever the environmental assessment for one of the Company’s stores indicates that a store is impacted by soil or groundwater contamination from prior owners/operators or other sources, the Company will work with environmental consultants and where appropriate, state governmental agencies, to ensure that the store is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment or that the responsibility for cleanup rests with a third party. Revenue Recognition Management has determined that all of the Company’s leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. The Company recognizes gains from sale of real estate in accordance with the guidance on transfer of nonfinancial assets. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized when a valid contract exists, the collectability of the sales price is reasonably assured and the control of the property has transferred. Advertising and Marketing Costs The Company incurs advertising and marketing costs primarily attributable to internet marketing and other media advertisements. These costs are expensed as incurred. The Company incurred $21.0 million, $16.9 million and $11.5 million in advertising and marketing expenses for the years ended December 31, 2021, 2020 and 2019, respectively, which are included in Property operating expenses on the Company’s consolidated statements of operations. Equity Offering Costs Underwriting discounts and commissions, financial advisory fees and other offering costs are reflected as a reduction to additional paid-in capital. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $28.3 million, $1.5 million and $2.1 million, respectively, of equity offering costs related to the issuance of common shares. Other Property Related Income Other property related income consists of late fees, administrative charges, customer storage protection plan fees, sales of storage supplies and other ancillary revenues and is recognized in the period that it is earned. Capitalized Interest The Company capitalizes interest incurred that is directly associated with construction activities until the asset is placed into service. Interest is capitalized to the related asset(s) using the weighted average rate of the Company’s outstanding debt. For the years ended December 31, 2021, 2020 and 2019, the Company capitalized Derivative Financial Instruments The Company carries all derivatives on the balance sheet at fair value. The Company determines the fair value of derivatives by observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The Company’s use of derivative instruments has been limited to cash flow hedges of certain interest rate risks. The Company had no outstanding derivatives as of December 31, 2021 or 2020. Income Taxes The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code since the Company’s commencement of operations in 2004. In management’s opinion, the requirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiaries. Earnings and profits, which determine the taxability of distributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the estimated useful lives used to compute depreciation, and the allocation of net income and loss for financial versus tax reporting purposes. The net tax basis in the Company’s assets was approximately $6,113.5 million and $4,384.1 million as of December 31, 2021 and 2020, respectively. Since the Company’s initial quarter as a publicly-traded REIT, it has made regular quarterly distributions to its shareholders. Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, the Company provides each of its shareholders a statement detailing the tax characterization of dividends paid during the preceding year as ordinary income, capital gain or return of capital. The characterization of the Company’s dividends for 2021 consisted of a 92.6365% ordinary income distribution and a 7.3635% capital gain distribution. The Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Company’s ordinary income, (b) 95% of the Company’s net capital gains and (c) 100% of prior taxable income exceeds cash distributions and certain taxes paid by the Company. No excise tax was incurred in 2021, 2020 or 2019. Taxable REIT subsidiaries are subject to federal and state income taxes. Our taxable REIT subsidiaries had a net deferred tax liability of $0.7 million as of December 31, 2021 and a net deferred tax asset of $0.4 million as of December 31, 2020. Earnings per Share and Unit Basic earnings per share and unit are calculated based on the weighted average number of common shares and restricted shares outstanding during the period. Diluted earnings per share and unit is calculated by further adjusting for the dilutive impact of share options, unvested restricted shares and contingently issuable shares outstanding during the period using the treasury stock method. Potentially dilutive securities calculated under the treasury stock method were Share-Based Payments We apply the fair value method of accounting for contingently issued shares and share options issued under our incentive award plan. Accordingly, share compensation expense is recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has recognized compensation expense on a straight-line method over the requisite service period, which is included in general and administrative expense on the Company’s consolidated statement of operations. The Company recognizes forfeitures on share-based payments as they occur. Investments in Unconsolidated Real Estate Ventures The Company accounts for its investments in unconsolidated real estate ventures under the equity method of accounting when it is determined that the Company has the ability to exercise significant influence over the venture. Under the equity method, investments in unconsolidated real estate ventures are recorded initially at cost, as investments in real estate ventures, and subsequently adjusted for equity in earnings (losses), cash contributions, less distributions and impairments. On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. An investment is impaired only if the fair value of the investment, as estimated by management, is less than the carrying value of the investment and the decline is other than temporary. To the extent impairment that is other than temporary has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment, as estimated by management. The determination as to whether impairment exists requires significant management judgment about the fair value of the Company’s ownership interest. Fair value is determined through various valuation techniques, including but not limited to, discounted cash flow models, quoted market values and third-party appraisals. There were Differences between the Company's net investment in unconsolidated real estate ventures and its underlying equity in the net assets of the ventures are primarily a result of the Company acquiring interests in existing unconsolidated real estate ventures. As of December 31, 2021, the Company’s net investment in unconsolidated real estate ventures was greater than its underlying equity in the net assets of the unconsolidated real estate ventures by an aggregate of $33.6 million. There were no such differences as of December 31, 2020. These differences are amortized over the lives of the self-storage properties owned by the real estate ventures. This amortization is included in equity in earnings of real estate ventures on the Company’s consolidated statements of operations. Recent Accounting Pronouncements In August 2020, the FASB issued 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 was effective on January 1, 2022. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. Concentration of Credit Risk The Company’s stores are located in major metropolitan and rural areas and have numerous customers per store. No single customer represents a significant concentration of our revenues. The stores in New York, Florida, Texas and California provided approximately 19%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2021. The stores in New York, Florida, Texas and California provided approximately 16%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2020. The stores in New York, Florida, Texas and California provided approximately 16%, 16%, 10% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2019. |
STORAGE PROPERTIES
STORAGE PROPERTIES | 12 Months Ended |
Dec. 31, 2021 | |
STORAGE PROPERTIES | |
STORAGE FACILITIES | 3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: December 31, 2021 2020 (in thousands) Land $ 1,565,463 $ 1,093,503 Buildings and improvements 5,368,383 4,122,995 Equipment 129,531 123,044 Construction in progress 78,221 108,316 Right-of-use assets - finance leases 41,896 41,896 Storage properties 7,183,494 5,489,754 Less: Accumulated depreciation (1,085,824) (983,940) Storage properties, net $ 6,097,670 $ 4,505,814 The following table summarizes the Company’s acquisition and disposition activity for the years ended December 31, 2021, 2020 and 2019: 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 New Jersey/Pennsylvania Assets Philadelphia-Camden-Wilmington, PA-NJ-DE-MD July 2021 2 33,000 Florida Asset Miami-Fort Lauderdale-Pompano Beach, FL November 2021 1 14,750 Georgia Asset Atlanta-Sandy Springs-Marietta, GA November 2021 1 15,200 Pennsylvania Asset Philadelphia-Camden-Wilmington, PA-NJ-DE-MD November 2021 1 24,500 Nevada Asset Las Vegas-Paradise, NV December 2021 1 21,000 Storage West Assets Various (see note 4) December 2021 57 1,648,426 (2) Illinois Asset Chicago-Naperville-Joliet, IL-IN-WI December 2021 1 10,300 66 $ 1,801,251 2021 Dispositions: Colorado/Nevada Assets Denver-Aurora, CO / Las Vegas-Paradise, NV September 2021 2 $ 16,900 North Carolina Assets Burlington, NC September 2021 2 21,700 Texas Asset Houston-Sugar Land-Baytown, TX November 2021 1 5,200 5 $ 43,800 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 2019 Acquisitions: Maryland Asset Baltimore-Towson, MD March 2019 1 $ 22,000 Florida Assets Cape Coral-Fort Myers, FL April 2019 2 19,000 Arizona Asset Phoenix-Mesa-Scottsdale, AZ May 2019 1 1,550 HVP III Assets Various (see note 4) June 2019 18 128,250 (3) Georgia Asset Atlanta-Sandy Springs-Marietta, GA August 2019 1 14,600 South Carolina Asset Charleston-North Charleston, SC August 2019 1 3,300 Texas Asset Dallas-Fort Worth-Arlington, TX October 2019 1 7,300 Florida Assets Orlando-Kissimmee, FL November 2019 3 32,100 California Asset Los Angeles-Long Beach-Santa Ana, CA December 2019 1 18,500 29 $ 246,600 2019 Disposition: Texas Asset College Station-Bryan, TX October 2019 1 $ 4,146 1 $ 4,146 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. (2) Purchase price represents the acquisition of all 167,557 outstanding partnership units of LAACO, Ltd. (“LAACO”) for $9,838 per unit. At the time of the acquisition, LAACO owned 57 storage properties (the “Storage West Assets”) and 50% ownership interests in two separate joint ventures. Through this acquisition, the Company also acquired LAACO’s wholly-owned subsidiaries, the Los Angeles Athletic Club and the California Yacht Club (the “Club Operations”), which are classified as held for sale on the Company’s consolidated balance sheets as of December 31, 2021 (see note 4). (3) Amount represents the purchase price for 90% of the ownership interest in 191 III CUBE LLC (“HVP III”), which at the time of the acquisition, owned 18 storage properties (see note 4). |
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT ACTIVITY | |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY LAACO Acquisition On December 9, 2021, the Company acquired all outstanding partnership units of LAACO, the owner of the Storage West Assets and, as a result, LAACO became a wholly-owned subsidiary of the Company. The 57 Storage West Assets are located in Arizona (17), California (20), Nevada (13) and Texas (7). Through its acquisition of LAACO, the Company also acquired a 50% interest in two separate unconsolidated joint ventures, each of which own one storage property in California (see note 5). In addition, through this acquisition, the Company also acquired the Club Operations, which included the Los Angeles Athletic Club (consisting of athletic facilities, food and beverage operations and a hotel) and the California Yacht Club (consisting of sports facilities, food and beverage operations and a marina). As of December 31, 2021, the Club Operations have been classified as held for sale on the Company’s consolidated balance sheets. The following summarizes the relevant components contemplated in the acquisition of LAACO: Amount (in thousands) Costs contemplated: Capitalized costs: LAACO partnership units (1) $ 1,648,426 Long-term debt assumed and repaid at closing 40,880 Payments to LAACO management (capitalized) (2) 16,807 Other transaction costs (3) 13,407 Total capitalized costs $ 1,719,520 Payments and anticipated payments to LAACO management (expensed) (2) 25,144 Total costs contemplated $ 1,744,664 Estimated fair value of Club Operations (included in total costs contemplated above) $ 46,800 (1) Represents the acquisition of all 167,557 outstanding partnership units for $9,838 per unit. (2) Upon the acquisition of LAACO, the Company assumed severance obligations payable to certain employees pursuant to pre-existing agreements. Based on the specific details of the arrangements, $16.8 million in costs were capitalized to the basis of the acquired properties while $25.1 million were considered post-combination compensation expenses. Of this $25.1 million, $14.8 million was included in the component of other income (expense) designated as other for the year ended December 31, 2021, with the remainder expected to be expensed during the six months ended June 30, 2022. (3) Includes consulting fees, legal fees, and other costs. The Company accounted for the acquisition of LAACO as an asset acquisition. As a result, the capitalized costs noted above were allocated to LAACO’s real estate assets, intangible assets and real estate venture investments on a relative fair value basis. All other assets acquired and liabilities assumed were recorded at fair value. The following summarizes the accounting for the LAACO acquisition: Amount (in thousands) Storage properties $ 1,517,243 Cash and cash equivalents 18,291 Investment in real estate ventures, at equity 35,737 Assets held for sale 50,435 Other assets, net 143,599 Accounts payable, accrued expenses and other liabilities (38,350) Deferred revenue (3,764) Security deposits (36) Liabilities held for sale (3,635) Total $ 1,719,520 Intangible assets (included above in Other assets, net) consisted of in-place leases, which aggregated to $109.7 million at the time of the acquisition and prior to amortization of such amounts. The estimated life of these in-place leases is 12 months and the amortization expense that was recognized during the year ended December 31, 2021 was approximately $9.1 million. Other 2021 Acquisitions During the year ended December 31, 2021, the Company acquired eight additional stores located in Florida (1) , Georgia (1) , Illinois (1) , Maryland (1) , Nevada (1) , New Jersey (1) and Pennsylvania (2) for an aggregate purchase price of approximately $140.8 million. Also, 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 12). 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 $11.9 million at the time of the acquisitions and prior to amortization of such amounts. The estimated life of these in-place leases is 12 months and the amortization expense that was recognized during the year ended December 31, 2021 was approximately $3.6 million. As of December 31, 2021, the Company had made aggregate deposits of approximately $0.5 million associated with one store that was under contract to be acquired for an acquisition price of $32.0 million (see note 18). The deposits are reflected in Other assets, net on the Company’s consolidated balance sheets. 2021 Dispositions During the year ended December 31, 2021, the Company sold five stores in Colorado (1), Nevada (1), North Carolina (2) and Texas (1) for an aggregate sales price of $43.8 million. In conjunction with the sales, the Company recorded gains that totaled $32.7 million. Assets Held for Sale As of December 31, 2021, the Company determined that the Club Operations assumed through the acquisition of LAACO met the criteria to be classified as assets held for sale. Accordingly, the assets and liabilities associated with the Club Operations have been categorized as held for sale within the Company’s December 31, 2021 consolidated balance sheets. As of December 31, 2021, the estimated fair value less selling costs of the Club Operations was greater than the carrying value of the Club Operations, and therefore no loss has been recorded in the current period. Development Activity As of December 31, 2021, the Company had invested in joint ventures to develop three self-storage properties located in New York (2) and Virginia (1). Construction for all projects is expected to be completed by the first quarter of 2023 (see note 12). As of December 31, 2021, development costs incurred to date for these projects totaled $66.7 million. Total construction costs for these projects are expected to be $97.3 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 of and opened for operation the following stores since January 1, 2019. 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) Newton, MA (1) 1 Q4 2021 100% $ 20,800 East Meadow, NY (2) 1 Q2 2021 100% 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (3) 1 Q1 2021 90% 26,400 Brooklyn, NY (2) 1 Q2 2020 100% 45,900 Waltham, MA (1) 1 Q3 2019 100% 18,000 Queens, NY (2) 1 Q2 2019 100% 47,500 Bayonne, NJ (2) (4) 1 Q2 2019 100% 25,100 8 $ 232,400 (1) During the third quarter of 2019 and fourth quarter of 2021, the Company, through two separate joint ventures in which it owned a 90% interest in each and that were previously consolidated, completed the construction of and opened for operation a store located in Waltham, MA and a store located in Newton, MA, respectively. On September 6, 2019, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the Waltham, MA store for $2.6 million. On December 14, 2021, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the Newton, MA store for $3.4 million. Prior to these transactions, the noncontrolling member’s interest in each venture was reported in Noncontrolling interests in subsidiaries on the consolidated balance sheets. Since the Company retained its controlling interest in each venture and the stores are now wholly owned, these transactions were accounted for as equity transactions. In each case, the carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase and the difference between the purchase price paid by the Company and the carrying amount of the noncontrolling interest was recorded as an adjustment to equity attributable to the Company, with no gain or loss recorded. This adjustment was $2.0 million for the Waltham, MA store and $2.7 million for the Newton, MA store. The $10.5 million related party loan extended by the Company to the venture that owned the Waltham, MA store and the $13.2 million related party loan extended by the Company to the venture that owned the Newton, MA store were repaid in conjunction with the Company’s acquisitions of the noncontrolling member’s ownership interests. (2) These stores were previously owned by four separate consolidated joint ventures, of which the Company held a 51% ownership interest in each. On June 25, 2019, the noncontrolling member in the venture that owned the Bayonne, NJ store put its 49% interest in the venture to the Company for $11.5 million. On September 17, 2019, the noncontrolling member in the venture that owned the Queens, NY store put its 49% interest in the venture to the Company for $15.2 million. On September 29, 2020, the noncontrolling member in the venture that owned the Brooklyn, NY store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. The 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 12). On June 29, 2021, the noncontrolling member in the venture that owned the East Meadow, NY store put its 49% interest in the venture to the Company for $6.6 million. The cash payments related to these transactions are included in Development costs in the consolidated statements of cash flows. (3) 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 12). (4) This store is subject to a ground lease. 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 12). 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 year ended December 31, 2021 was approximately $48.6 million. 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 13). 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 years ended December 31, 2021 and 2020 was approximately $9.3 million and $2.1 million, respectively. Additionally, on July 20, 2020, the Company acquired land underlying a wholly-owned store located in the 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. 2019 Acquisitions During the year ended December 31, 2019, the Company acquired 11 stores located in Arizona (1) , California (1) , Florida (5) , Georgia (1) , Maryland (1) , South Carolina (1) and Texas (1) for an aggregate purchase price of approximately $118.3 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 $6.2 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 years ended December 31, 2020 and 2019 was approximately $4.3 million and $1.9 million, respectively. There was no amortization expense recognized during the year ended December 31, 2021 for these in-place leases. In connection with one of the acquisitions, the Company paid $14.9 million of cash and issued OP Units that were valued at approximately $3.6 million as consideration for the purchase price (see note 12). Additionally, on June 6, 2019, the Company acquired its partner’s 90% ownership interest in HVP III, an unconsolidated real estate venture in which the Company previously owned a 10% noncontrolling interest and that was accounted for under the equity method of accounting. As of the date of acquisition, HVP III owned 18 stores located in Georgia (1), Massachusetts (7), North Carolina (1), South Carolina (7) and Tennessee (2) (the “HVP III Assets”). The purchase price for the 90% ownership interest was $128.3 million, which was comprised of cash consideration of $120.0 million and $8.3 million of the Company’s escrowed proceeds from HVP III’s sale of 50 properties to an unaffiliated buyer on June 5, 2019 (see note 5). The HVP III Assets were recorded by the Company at $137.5 million, which consisted of the $128.3 million purchase price plus the Company’s $10.6 million carryover basis of its previously held equity interest in HVP III, offset by $1.4 million of acquired cash. As a result of the transaction, which was accounted for as an asset acquisition, the HVP III Assets became wholly-owned by the Company and are now consolidated within its financial statements. No gain or loss was recognized as a result of the transaction. In connection with the transaction, the Company allocated the value of the HVP III Assets 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 $14.3 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 years ended December 31, 2020 and 2019 was approximately $6.0 million and $8.3 million, respectively. There was no amortization expense recognized for these in-place leases during the year ended December 31, 2021. 2019 Disposition On October 7, 2019, the Company sold a self-storage property located in Texas for a sales price of $4.1 million. The Company recorded a $1.5 million gain in connection with the sale. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 12 Months Ended |
Dec. 31, 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 real estate ventures, consisting of common ownership interests, are summarized as follows (dollars in thousands): CubeSmart Number of Stores as of Carrying Value of Investment as of Ownership December 31, December 31, Unconsolidated Real Estate Ventures Interest 2021 2020 2021 2020 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 - $ 14,225 $ - Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 - 21,536 - 191 V CUBE LLC ("HVP V") (2) 20% 5 - 16,080 - 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% 14 14 4,541 5,015 191 IV CUBE LLC ("HVP IV") (4) 20% 28 21 23,223 21,760 CUBE HHF Northeast Venture LLC ("HHFNE") (5) 10% 13 13 1,291 1,628 CUBE HHF Limited Partnership ("HHF") (6) 50% 28 35 38,855 63,668 90 83 $ 119,751 $ 92,071 (1) On December 9, 2021, the Company completed the acquisition of LAACO, which included a 50% interest in Fontana and RCSS , each of which owns one self-storage property in California. As of the date of acquisition, the Company recognized differences between the Company’s equity investment in Fontana and RCSS and the underlying equity reflected at the venture level. As of December 31, 2021, this difference was $13.5 million for Fontana and $20.1 million for RCSS. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) 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. As of December 31, 2021, HVP V owned five self-storage properties located in Florida (2) , New Jersey (2) and New York (1) . HVP V paid an aggregate of $143.7 million for these properties, of which $2.2 million was allocated to the value of the in-place leases. These acquisitions were funded initially through pro-rata contributions by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP V related to these acquisitions was $22.6 million. During the year ended December 31, 2021, the venture closed on an $80.6 million secured term loan. The loan bears interest at SOFR plus 2.05% and matures on September 30, 2025 with an option to extend the maturity date through September 30, 2026, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. (3) The stores owned by HVPSE are 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. (4) The stores owned by HVP IV are located in Arizona (2) , Connecticut (3) , Florida (4) , Georgia (2) , Illinois (5) , Maryland (2) , Minnesota (1) , Pennsylvania (1) and Texas (8) . The Company’s total contribution to HVP IV in connection with these store acquisitions was $32.0 million. During the year ended December 31, 2021, HVP IV entered into a new $221.6 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. (5) 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 December 31, 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. (6) The stores owned by HHF are located in North Carolina (1) and Texas (27) . On October 5, 2021, HHF sold seven stores in Texas for an aggregate sales price of approximately $85.0 million. The venture recorded gains which aggregated to approximately $46.9 million in connection with the sale. 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 the new loan to repay its existing outstanding $100.0 million loan in full. On June 5, 2019, HVP III, a venture in which the Company held a 10% interest, sold 50 stores located in Florida (3), Georgia (4), Michigan (17), North Carolina (3), South Carolina (15) and Tennessee (8), to an unaffiliated third-party buyer for an aggregate sales price of $293.5 million. As of the transaction date, HVP III had five mortgage loans with an aggregate outstanding balance of $22.9 million, as well as $179.5 million outstanding on its $185.5 million loan facility, all of which were defeased or repaid in full at the time of the sale. Net proceeds to the venture from the transaction totaled $82.9 million. The venture recorded gains which aggregated to approximately $106.7 million in connection with the sale. Subsequent to the sale, the Company acquired its partner’s 90% ownership interest in HVP III, which at the time of the acquisition, owned the remaining 18 storage properties (see note 4). Based upon the facts and circumstances at acquisition of Fontana and RCSS and 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 (except for HVP III, which was consolidated as of June 6, 2019). 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 of real estate ventures on the Company’s consolidated statements of operations. The amounts reflected in the following table are based on the historical financial information of the Ventures. The following is a summary of the financial position of the Ventures as of December 31, 2021 and 2020: December 31, 2021 2020 Assets (in thousands) Storage properties, net $ 850,250 $ 662,833 Other assets 34,760 18,112 Total assets $ 885,010 $ 680,945 Liabilities and equity Debt $ 526,972 $ 359,985 Other liabilities 14,500 11,588 Equity CubeSmart 86,083 92,071 Joint venture partners 257,455 217,301 Total liabilities and equity $ 885,010 $ 680,945 The following is a summary of results of operations of the Ventures for the years ended December 31, 2021, 2020 and 2019: For the year ended December 31, 2021 2020 2019 (in thousands) Total revenues $ 88,449 $ 67,239 $ 72,582 Operating expenses (37,967) (30,755) (32,134) Other expenses (1,138) (430) (3,227) Interest expense, net (12,031) (11,585) (14,927) Depreciation and amortization (37,805) (33,086) (30,107) Gains from sale of real estate, net 46,966 — 106,667 Net income (loss) $ 46,474 $ (8,617) $ 98,854 Company’s share of net income (loss) $ 25,275 $ 178 $ 11,122 The results of operations above include the periods from January 1, 2019 through June 6, 2019 (date of consolidation) for HVP III. |
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES | 12 Months Ended |
Dec. 31, 2021 | |
UNSECURED SENIOR NOTES | |
UNSECURED SENIOR NOTES | 6. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): December 31, Effective Issuance Maturity Unsecured Senior Notes 2021 2020 Interest Rate Date Date (in thousands) $300M 4.375% Guaranteed Notes due 2023 (1) (2) $ — $ 300,000 4.33 % Various (2) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (3) 300,000 300,000 3.99 % Various (3) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 $550M 2.250% Guaranteed Notes due 2028 550,000 — 2.33 % Nov-21 Dec-28 $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 $500M 2.500% Guaranteed Notes due 2032 500,000 — 2.59 % Nov-21 Feb-32 Principal balance outstanding 2,800,000 2,050,000 Less: Discount on issuance of unsecured senior notes, net (13,455) (7,470) Less: Loan procurement costs, net (18,336) (12,158) Total unsecured senior notes, net $ 2,768,209 $ 2,030,372 (1) On December 23, 2021, the Operating Partnership redeemed, in full, its $300.0 million of outstanding 4.375% senior notes due 2023 (the “2023 Notes”), with a portion of the net proceeds from its $550.0 million of 2.250% senior notes due 2028 and its $500.0 million of 2.500% senior notes due 2032 issued on November 30, 2021. In connection with the redemption of the 2023 Notes, the Operating Partnership recognized a loss on early debt extinguishment of $20.3 million, of which $20.0 million represents a prepayment premium and $0.3 represents the write-off of unamortized loan procurement costs. (2) 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% . (3) 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 and for the year ended December 31, 2021, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING CREDIT FACILITY AND U
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | 12 Months Ended |
Dec. 31, 2021 | |
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | |
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | 7. REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS 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 credit 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 December 31, 2021, borrowings under the Revolver had an interest rate of 1.20%. Additionally, as of December 31, 2021, $539.5 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 and for the year ended December 31, 2021, the Operating Partnership was in compliance with all of its financial covenants. On June 20, 2011, the Company entered into an unsecured term loan agreement (the “Term Loan Facility”), which was subsequently amended on June 18, 2013 and August 5, 2014, consisting of, among other things, a $100.0 million unsecured term loan that was scheduled to mature in January 2020. On June 19, 2019, the Company used an initial advance at closing of the Amended and Restated Credit Facility to repay all of the outstanding indebtedness under the Term Loan Facility. Unamortized loan procurement costs of $0.1 million were written off in conjunction with the repayment. |
MORTGAGE LOANS AND NOTES PAYABL
MORTGAGE LOANS AND NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2021 | |
MORTGAGE LOANS AND NOTES PAYABLE | |
MORTGAGE LOANS AND NOTES PAYABLE | 8. MORTGAGE LOANS AND NOTES PAYABLE The Company’s mortgage loans and notes payable are summarized as follows: Carrying Value as of 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 2,206 2,261 3.85 % Jun-23 New York, NY 29,340 29,981 3.51 % Jun-23 Annapolis I, MD 5,099 5,283 3.78 % May-24 Brooklyn XV, NY 15,423 15,713 2.15 % May-24 Long Island City IV, NY 12,580 12,852 2.15 % May-24 Long Island City II, NY 18,714 19,094 2.25 % Jul-26 Long Island City III, NY 18,723 19,106 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 156,385 202,768 Plus: Unamortized fair value adjustment 12,981 15,879 Less: Loan procurement costs, net (1,690) (2,143) Total mortgage loans and notes payable, net $ 167,676 $ 216,504 (1) These mortgage loans were repaid in full on March 1, 2021. As of December 31, 2021 and 2020, the Company’s mortgage loans and notes payable were secured by certain of its self-storage properties with net book values of approximately $450.7 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 December 31, 2021 (in thousands): 2022 $ 2,426 2023 32,591 2024 32,329 2025 979 2026 33,760 2027 and thereafter 54,300 Total mortgage payments 156,385 Plus: Unamortized fair value adjustment 12,981 Less: Loan procurement costs, net (1,690) Total mortgage loans and notes payable, net $ 167,676 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss represents unrealized losses on interest rate swaps (see note 10). The following table summarizes the changes in accumulated other comprehensive loss for the years ended December 31, 2021 and 2020. December 31, 2021 2020 (in thousands) Beginning balance $ (656) $ (737) Reclassification of realized losses on interest rate swaps (1) 81 81 Ending balance (575) (656) Less: portion included in noncontrolling interests in the Operating Partnership 5 24 Total accumulated other comprehensive loss included in equity $ (570) $ (632) (1) See note 10 for additional information about the effects of the amounts reclassified. |
RISK MANAGEMENT AND USE OF FINA
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2021 | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 10. 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 exposures 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 that 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 consolidated statement of operations realized and unrealized gains and losses with respect to the derivative. As of December 31, 2021 and 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 $300.0 million of outstanding 4.375% senior notes due 2029 (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 $0.1 million of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during 2021. The Company estimates that $0.1 million will be reclassified as an increase to interest expense in 2022. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. 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 December 31, 2021 and 2020. The following table summarizes the carrying value and estimated fair value of the Company’s debt as of December 31, 2021 and 2020: December 31, 2021 December 31, 2020 (in thousands) Carrying value $ 3,145,785 $ 2,364,676 Fair value 3,256,128 2,571,300 The fair value of debt estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations as of December 31, 2021 and 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 | 12 Months Ended |
Dec. 31, 2021 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS Interests in Consolidated Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated joint ventures. The following table summarizes the Company’s consolidated joint ventures, each of which are accounted for as VIEs: CubeSmart Number Date Opened / Ownership December 31, 2021 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) Astoria Investors, LLC ("Astoria") (2) 1 Queens, NY Q1 2023 (est.) 70% $ 21,020 $ 25 CS Vienna, LLC ("Vienna") (3) 1 Vienna, VA Q2 2022 (est.) 72% 25,667 14,497 CS 750 W Merrick Rd, LLC ("Merrick") (4) 1 Valley Stream, NY Q1 2022 (est.) 51% 31,050 16,656 CS Valley Forge Village Storage, LLC ("VFV") (5) 1 King of Prussia, PA Q2 2021 70% 21,128 14,050 CS Lock Up Anoka, LLC ("Anoka") (6) 1 Anoka, MN Q2 2021 50% 11,739 5,567 SH3, LLC ("SH3") (7) 1 Arlington, VA Q2 2015/Q1 2021 90% 38,922 192 6 $ 149,526 $ 50,987 (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 August 17, 2021, the Company contributed $14.7 million in exchange for a 70% ownership interest in Astoria, which acquired land for future development of a self-storage property in Queens, NY for $20.0 million. The Company has a related party loan commitment to Astoria of $27.1 million to fund all or a portion of the construction costs. (3) 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 December 31, 2021, the Company has funded $13.2 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. (4) 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 December 31, 2021, has accrued $14.7 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. (5) The Company has a related party commitment to VFV that was used to fund a portion of the construction costs. As of December 31, 2021, the Company has an outstanding loan of $13.7 million to VFV, which is included in the total liability amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (6) 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, as of December 31, 2021, the Company has funded $ 5.5 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. (7) 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 0.8% and 3.6% of the outstanding OP Units as of December 31, 2021 and 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 cash 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 records 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. On December 16, 2019, the Company acquired a store in California for $18.5 million. In conjunction with the closing, the Company paid $14.9 million and issued 106,738 OP Units, valued at approximately $3.6 million, to pay the remaining consideration. During the years ended December 31, 2021, 2020 and 2019, 5.5 million, 100,000 and 80,000 OP units, respectively, were redeemed for common shares of the Company. As of December 31, 2021 and 2020, 1,901,595 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 year. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Company has reflected these interests at the greater of the carrying value based on the accumulation of historical cost or the redemption value as of December 31, 2021 and 2020. As of December 31, 2021 and 2020, the Operating Partnership recorded an increase to OP Units owned by third parties and a corresponding decrease to capital of $164.1 million and $4.2 million, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 13. 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 years ended December 31, 2021 and 2020, administrative and late fees totaled $21.3 million and $20.0 million, respectively, and 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 43 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 years ended December 31, 2021 and 2020, the Company’s lease cost consists of the following components: Year Ended December 31, 2021 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 964 $ 49 Interest expense related to finance lease liabilities 2,139 64 Operating lease cost 3,278 2,856 Short-term lease cost (1) 1,173 1,114 Total lease costs $ 7,554 $ 4,083 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 1,938 $ — Operating cash outflows for operating leases 2,513 2,186 Total cash outflows for lease liability measurement $ 4,451 $ 2,186 (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 December 31, 2021 and 2020: December 31, 2021 2020 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 40,932 $ 41,896 Lease liabilities included in Lease liabilities - finance leases $ 65,801 $ 65,599 Operating Leases Right-of-use assets included in Other assets, net $ 54,741 $ 55,302 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 54,018 $ 53,595 Weighted Average Lease Term (in years) Finance leases 42.5 43.5 Operating leases 34.0 34.8 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.46 % 4.46 % The following table represents the future lease liability maturities as of December 31, 2021 (in thousands): Finance Operating 2022 $ 2,182 $ 2,667 2023 2,183 2,719 2024 2,183 2,569 2025 2,224 2,568 2026 2,334 2,644 2027 and thereafter 120,598 97,655 Total lease payments 131,704 110,822 Less: Imputed interest (65,903) (56,804) Present value of lease liabilities $ 65,801 $ 54,018 As of December 31, 2021, the Company has not entered into any lease agreements that are set to commence in the future. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 14. 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 years ending December 31, 2021, 2020 and 2019 were $4.9 million, $3.8 million and $4.0 million, respectively. 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 reimbursements consist of amounts due for management fees, payroll and other store expenses. The amounts due to the Company were $15.4 million and $13.1 million as of December 31, 2021 and 2020, respectively, and are included in Other Assets, net on the Company’s consolidated balance sheets. Additionally, as discussed in note 12, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $32.4 million and $21.4 million as of December 31, 2021 and 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 HVPSE, HVP IV and HHFNE, or any of their subsidiaries and completion of certain measures as defined in the operating agreements. During the years ended December 31, 2021, 2020 and 2019, the Company recognized $1.3 million, $0.7 million and $2.1 million, respectively, in fees associated with property transactions (including fees associated with HVP III). Property transaction fees are included in Other income on the consolidated statements of operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Development Commitments The Company has agreements with developers for the construction of three new self-storage properties (see note 4), which will require payments of approximately $37.3 million, due in installments upon completion of certain construction milestones, during 2022 and 2023. Litigation From time to time, the Company is involved in claims 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. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION PLANS | |
SHARE-BASED COMPENSATION PLANS | 16. SHARE-BASED COMPENSATION PLANS The Company has a share-based compensation plan (the “Plan”) which it utilizes to compensate certain employees and non-employee trustees. The Plan was last amended and restated in 2016. The Plan provides for the grant of share options, share appreciation rights, restricted shares, performance units, which may be denominated in cash or shares, including restricted shares and restricted share units, and other share-based awards, including unrestricted common shares or awards denominated or payable in, or valued in whole or part by reference to, common shares. Share options granted under the Plan may be non-qualified share options or incentive share options. Upon shareholder approval of the amendment and restatement of the Plan on June 1, 2016, 4,500,000 additional common shares were made available for award under the Plan. As a result, these 4,500,000 additional shares, together with the 991,117 shares that remained available for future awards under the Plan at the time of the shareholder approval, plus any common shares that are restored to availability upon expiration or forfeiture of outstanding options or restricted share awards, would constitute the “Aggregate Share Reserve”. As of December 31, 2021: (i) 2,448,384 common shares remained available for future awards under the Plan; (ii) 387,701 unvested restricted share awards were outstanding under the Plan; and (iii) 2,263,804 common shares were subject to outstanding options under the Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Trustees (the “Compensation Committee”), which is appointed by the Board of Trustees. The Compensation Committee interprets the Plan and, subject to its right to delegate authority to grant awards, determines the terms and provisions of option grants and share awards. Under the Plan, the Compensation Committee determines the vesting schedule of each share award and option, subject to a one-year minimum vesting requirement, but with permitted acceleration of vesting in the event of a participant’s death or disability, or in the event of a change in control or certain changes in our capital structure. Notwithstanding the foregoing one-year minimum vesting limitation, up to five percent of the shares subject to the Aggregate Share Reserve may be subject to awards that are not subject to such limitation. The exercise price for options is equivalent to the fair value of the underlying common shares at the grant date. The Compensation Committee also determines the term of each option, which shall not exceed 10 years from the grant date. Share Options The fair values for options granted in 2021, 2020 and 2019 were estimated at the time the options were granted using the Black-Scholes option-pricing model applying the following weighted average assumptions: Assumptions: 2021 2020 2019 Risk-free interest rate 0.6 % 1.9 % 2.7 % Expected dividend yield 3.8 % 3.9 % 3.9 % Volatility (1) 25.00 % 20.00 % 32.00 % Weighted average expected life of the options (2) 6.0 years 6.0 years 6.0 years Weighted average grant date fair value of options granted per share $ 4.62 $ 3.66 $ 6.35 Term 10.0 years 10.0 years 10.0 years (1) Expected volatility is based upon the Company’s historical daily share prices. (2) The expected life is based on the contractual term of the options as well as the vesting period. In 2021, 2020 and 2019 the Company recognized compensation expense related to options issued to employees and executives of approximately $2.3 million, $2.0 million and $1.8 million, respectively, which is included in General and administrative expense on the Company’s consolidated statements of operations. The share options vest ratably over three years . As of December 31, 2021, the Company had approximately $2.5 million of unrecognized option compensation cost related to all grants that will be recognized over a weighted average period of 1.7 years. The table below summarizes the option activity under the Plan for the year ended December 31, 2021: Options Weighted Average Strike Price Weighted Average Remaining Contractual Term (Years) Balance at December 31, 2020 2,118,090 $ 26.37 6.39 Options granted 592,456 33.70 9.01 Options canceled (27,743) 32.33 — Options exercised (418,999) 18.77 3.08 Balance at December 31, 2021 2,263,804 $ 29.63 6.82 Vested or expected to vest at December 31, 2021 2,263,804 $ 29.63 6.82 Exercisable at December 31, 2021 1,202,882 $ 27.17 5.37 As of December 31, 2021, the aggregate intrinsic value of options that were exercisable was approximately $35.8 million. As of that date, the aggregate intrinsic value of options that had vested or were expected to vest was approximately $61.8 million. The aggregate intrinsic value of options exercised was approximately $10.6 million, $0.9 million and $9.1 million for the years ended December 31, 2021, 2020 and 2019, respectively. Restricted Shares & Performance Units During 2021, 2020 and 2019 the Company granted restricted shares to employees and trustees and also granted performance units to certain executives. The fair values for restricted share awards made under the Plan were valued at the grant date fair value, which is the market price of the underlying common shares. The shares vest over either a 3 -year or 5 -year period beginning with the first anniversary of the grant. Performance units represent the right to earn common shares. The performance units were granted in the form of deferred share units with a market condition, entitling the holders thereof to receive common shares at a future date. The performance units are awarded based on the Company’s total return to shareholders with respect to a specified peer group consisting of publicly traded REITs over a three-year period. The performance units cliff vest upon the third anniversary of the effective date. The Company used a Monte Carlo simulation analysis to estimate the fair value of the awards, the key assumptions of which are as follows: Assumptions: 2021 2020 2019 Risk-free interest rate 0.2 % 1.7 % 2.6 % Volatility (1) 28.00 % 19.00 % 23.00 % (1) Expected volatility is based upon the Company’s historical daily share prices. During the years ended December 31, 2021, 2020 and 2019, the Company recognized compensation expense related to restricted shares and performance units of approximately $5.8 million, $5.2 million and $4.9 million, respectively, which is included in General and administrative expense on the Company’s consolidated statements of operations. The following table presents non-vested restricted share and performance unit activity under the Plan for the year ended December 31, 2021: Number of Non- Vested Restricted Shares and Performance Units Non-Vested at January 1, 2021 382,901 Granted 176,825 Vested (160,549) Forfeited (11,476) Non-Vested at December 31, 2021 387,701 The weighted average fair value of restricted shares and performance units granted during the years ended December 31, 2021, 2020 and 2019 was $39.37 , $32.39 and $32.22 , respectively. The total fair value of restricted shares and performance units vested during the years ended December 31, 2021, 2020 and 2019 was $7.0 million, $6.1 million and $5.8 million, respectively. As of December 31, 2021 the Company had approximately $6.7 million of remaining unrecognized restricted share and performance unit compensation costs that are expected to be recognized over a weighted average period of 2.0 years. |
EARNINGS PER SHARE AND UNIT AND
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 12 Months Ended |
Dec. 31, 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: For the year ended December 31, 2021 2020 2019 (dollars and shares in thousands, except per share amounts) Net income $ 230,813 $ 167,611 $ 170,771 Noncontrolling interests in the Operating Partnership (7,873) (1,825) (1,708) Noncontrolling interest in subsidiaries 542 (165) 54 Net income attributable to the Company’s common shareholders $ 223,482 $ 165,621 $ 169,117 Weighted average basic shares outstanding 203,832 194,147 190,874 Share options and restricted share units 1,177 796 702 Weighted average diluted shares outstanding (1) 205,009 194,943 191,576 Basic earnings per share attributable to common shareholders $ 1.10 $ 0.85 $ 0.89 Diluted earnings per share attributable to common shareholders (2) $ 1.09 $ 0.85 $ 0.88 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: For the year ended December 31, 2021 2020 2019 (dollars and units in thousands, except per unit amounts) Net income $ 230,813 $ 167,611 $ 170,771 Operating Partnership interests of third parties (7,873) (1,825) (1,708) Noncontrolling interest in subsidiaries 542 (165) 54 Net income attributable to common unitholders $ 223,482 $ 165,621 $ 169,117 Weighted average basic units outstanding 203,832 194,147 190,874 Unit options and restricted share units 1,177 796 702 Weighted average diluted units outstanding (1) 205,009 194,943 191,576 Basic earnings per unit attributable to common unitholders $ 1.10 $ 0.85 $ 0.89 Diluted earnings per unit attributable to common unitholders (2) $ 1.09 $ 0.85 $ 0.88 (1) For the years ended December 31, 2021, 2020 and 2019, the Company declared cash dividends per common share/unit of $1.45 , $1.33 and $1.29 , respectively. (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 years ended December 31, 2020 were 0.8 million. There were no anti-dilutive options for the years ended December 31, 2021 or 2019. 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 1,901,595; 7,420,828 and 1,972,308 as of December 31, 2021, 2020 and 2019, respectively. There were 223,917,993; 197,405,989 and 193,557,024 common units outstanding as of December 31, 2021, 2020 and 2019, respectively. Common Shares On November 19, 2021, we closed an underwritten offering of 15.5 million common shares at a public offering price of $51.00 per share, resulting in net proceeds of $765.6 million, after deducting offering costs. The Company maintains an at-the-market equity program that enables it to offer and sell up to 60.0 million common shares through sales agents pursuant to equity distribution agreements (the “Equity Distribution Agreements”). The Company’s sales activity under the program for the years ended December 31, 2021, 2020 and 2019 is summarized below: For the year ended December 31, 2021 2020 2019 (dollars and shares in thousands, except per share amounts) Number of shares sold 4,982 3,627 5,899 Average sales price per share $ 40.57 $ 33.69 $ 33.64 Net proceeds after deducting offering costs $ 199,977 $ 120,727 $ 196,304 The proceeds from the sales of common shares under the program during the years ended December 31, 2021, 2020 and 2019 were used to fund the acquisition and development of self-storage properties and for general corporate purposes. As of December 31, 2021, 2020 and 2019, 5.9 million common shares, 10.9 million common shares and 4.6 million common shares, respectively, remained available for issuance under the Equity Distribution Agreements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS Subsequent to December 31, 2021, the Company acquired a self-storage property located in Maryland for $32.0 million. |
SCHEDULE III REAL ESTATE AND RE
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | |
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | CUBESMART SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION December 31, 2021 (dollars in thousands) Gross Carrying Amount at Total Initial Cost Costs December 31, 2021 Rentable Buildings Subsequent Buildings Accumulated Number of Square Feet & to & Depreciation State Stores (unaudited) Encumbrances Land Improvements Acquisition Land Improvements Total (A) Arizona 48 3,070,755 $ — $ 98,442 $ 389,514 $ 23,213 $ 99,495 $ 397,612 $ 497,107 $ 38,951 California 63 4,741,051 — 371,460 683,683 33,337 373,302 663,731 1,037,033 83,657 Colorado 10 654,265 — 11,812 46,755 4,131 11,787 44,903 56,690 12,426 Connecticut 22 1,197,402 — 22,023 82,375 19,620 23,568 86,979 110,547 32,682 Florida 90 6,801,203 — 104,987 531,360 88,420 112,652 553,950 666,602 167,579 Georgia 21 1,562,380 — 18,394 100,856 9,933 18,518 99,513 118,031 28,392 Illinois 43 2,761,024 — 54,493 221,022 27,543 54,358 224,665 279,023 64,522 Indiana 1 70,380 — 1,134 5,589 199 1,134 5,783 6,917 1,374 Maryland 19 1,585,705 5,099 37,055 188,989 13,098 37,912 189,926 227,838 44,095 Massachusetts 20 1,256,014 — 31,948 159,000 9,476 32,197 163,387 195,584 27,862 Minnesota 2 176,296 — 2,621 21,655 379 2,621 22,034 24,655 2,084 Nevada 22 1,700,457 — 71,702 394,023 4,536 71,703 396,643 468,346 11,695 New Jersey 28 1,983,294 — 45,864 188,139 36,373 49,372 205,843 255,215 59,133 New Mexico 3 182,261 — 2,866 9,367 1,615 2,867 7,804 10,671 3,212 New York 58 4,593,319 149,080 416,337 1,300,288 45,488 428,549 1,317,425 1,745,974 247,167 North Carolina 9 611,298 — 10,349 44,680 6,242 10,788 47,409 58,197 12,034 Ohio 20 1,294,303 — 13,529 51,265 17,460 14,938 54,746 69,684 20,461 Pennsylvania 12 890,594 — 18,769 99,196 10,424 18,723 104,434 123,157 18,784 Rhode Island 4 247,305 — 3,480 17,156 1,574 3,480 18,729 22,209 4,241 South Carolina 8 432,389 — 6,117 31,039 1,159 6,117 32,199 38,316 2,387 Tennessee 9 755,595 2,206 9,117 54,403 4,897 9,117 52,047 61,164 12,905 Texas 75 5,358,803 — 108,310 458,473 31,746 108,628 465,154 573,782 89,494 Utah 4 293,988 — 10,763 2,844 2,676 10,622 4,102 14,724 1,800 Virginia 11 965,100 — 32,731 122,391 4,498 32,732 119,686 152,418 28,717 Washington D.C. 5 409,484 — 28,759 80,996 2,232 28,803 78,709 107,512 15,704 Other Corporate Assets — — — — — 12,450 1,480 10,970 12,450 2,511 607 43,594,665 $ 156,385 $ 1,533,062 $ 5,285,058 $ 412,719 $ 1,565,463 $ 5,368,383 $ 6,933,846 $ 1,033,869 (A) Depreciation on the buildings and improvements is recorded on a straight-line basis over their estimated useful lives, which range from five to 39 years . Activity in storage properties during the period from January 1, 2019 through December 31, 2021 was as follows (in thousands): 2021 2020 2019 Storage properties* Balance at beginning of year $ 5,489,754 $ 4,699,844 $ 4,463,455 Acquisitions & improvements 1,795,965 825,247 364,324 Fully depreciated assets (52,722) (83,418) (81,717) Dispositions and other (19,408) (8,533) (3,033) Construction in progress, net (30,095) 14,718 (43,185) Right-of-use assets - finance leases — 41,896 — Balance at end of year $ 7,183,494 $ 5,489,754 $ 4,699,844 Accumulated depreciation* Balance at beginning of year $ 983,940 $ 925,359 $ 862,487 Depreciation expense 160,933 143,952 145,233 Fully depreciated assets (52,722) (83,418) (81,717) Dispositions and other (6,327) (1,953) (644) Balance at end of year $ 1,085,824 $ 983,940 $ 925,359 Storage properties, net $ 6,097,670 $ 4,505,814 $ 3,774,485 * As of December 31, 2021, the aggregate cost of Storage properties for federal income tax purposes was approximately $7,452.8 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the Company is presented as noncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”) and if the Company is deemed to be the primary beneficiary in accordance with authoritative guidance issued on the consolidation of VIEs. To the extent that the Company (i) has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) has the obligation or rights to absorb the VIE's losses or receive its benefits, then the Company is considered the primary beneficiary. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary, and (ii) entities that are non-VIEs which the Company controls and which the limited partners do not have the ability to dissolve or remove the Company without cause nor substantive participating rights. The Operating Partnership meets the criteria as a 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. |
Noncontrolling Interests | Noncontrolling Interests The Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding noncontrolling interests in consolidated financial statements which was effective on January 1, 2009. The guidance states that noncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Under the guidance, such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from controlled or consolidated entities that are less than wholly owned are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. However, per the FASB issued authoritative guidance on the classification and measurement of redeemable securities, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity 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 noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the FASB issued guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a Company’s own stock to evaluate whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. The guidance also requires that noncontrolling interests are adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption fair value. The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company. These interests were issued in the form of OP units and were a component of the consideration the Company paid to acquire certain self-storage properties. Limited partners who acquired OP units have the right to require the Operating Partnership to redeem part or all of their OP units for, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair value of an equivalent number of common shares of the Company. However, the operating agreement contains certain circumstances that could result in a net cash settlement outside the control of the Company, as the Company does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance discussed above, the Company will continue to record these noncontrolling interests outside of permanent equity in the consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of operations. The Company has adjusted the carrying value of its noncontrolling interests subject to redemption value to the extent applicable. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Operating Partnership reflected these interests at their redemption value as of December 31, 2021, as the estimated redemption value exceeded their carrying value. The Operating Partnership recorded an increase to OP Units owned by third parties and a corresponding decrease to capital of $164.1 million as of December 31, 2021. Disclosure of such redemption provisions is provided in note 12. |
Estimates | Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Although management believes the assumptions and estimates made are reasonable and appropriate, as discussed in the applicable sections throughout these consolidated financial statements, different assumptions and estimates could materially impact the Company’s reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions, and changes in market conditions could impact the Company’s future operating results. |
Self-Storage Properties | Self-Storage Properties Self-storage properties are carried at historical cost less accumulated depreciation and impairment losses. The cost of self-storage properties reflects their purchase price or development cost. Acquisition costs are accounted for in accordance with Accounting Standard Update (“ASU”) No. 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January 1, 2018, and are generally capitalized. Costs incurred for the renovation of a store are capitalized to the Company’s investment in that store. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs to develop self-storage properties are capitalized to construction in progress while the projects are under development. |
Purchase Price Allocation | Purchase Price Allocation When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements and equipment are recorded based upon their respective fair values as estimated by management. If appropriate, the Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the storage leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the purchase price has been allocated to above- or below-market lease intangibles associated with storage leases assumed at acquisition. Above- or below- market lease intangibles associated with assumed leases in which the Company serves as lessee are recorded as an adjustment to the right-of-use asset and reflect the difference between the contractual amounts to be paid pursuant to each in-place lease and management’s estimate of fair market lease rates. These amounts are amortized over the term of the lease. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. |
Depreciation and Amortization | Depreciation and Amortization The costs of self-storage properties and improvements are depreciated using the straight-line method based on useful lives ranging from five to 39 years . Right-of-use assets associated with finance leases are amortized from the lease commencement date to the earlier of the useful life of the right-to-use asset or the end of the lease term. Fully depreciated or amortized assets and the associated accumulated depreciation or amortization are written off. The Company wrote off fully depreciated or amortized real estate assets and in-place lease intangible assets of $52.7 million and $59.9 million, respectively, for the year ended December 31, 2021, and $83.4 million and $20.5 million, respectively, for the year ended December 31, 2020. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the store’s basis is recoverable. If a store’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized during the years ended December 31, 2021, 2020 and 2019. |
Long-Lived Assets Held for Sale | Long-Lived Assets Held for Sale We consider long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell a store (or group of stores), (b) the store is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such stores, (c) an active program to locate a buyer and other actions required to complete the plan to sell the store have been initiated, (d) the sale of the store is probable and transfer of the asset is expected to be completed within one year , (e) the store is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer, and there are no contingencies related to the sale that may prevent the transaction from closing. However, each potential transaction is evaluated based on its separate facts and circumstances. Stores classified as held for sale are reported at the lesser of carrying value or fair value less estimated costs to sell and are not depreciated. The Club Operations (defined below) acquired through our acquisition of LAACO (defined below) have been classified as held for sale as of December 31, 2021. There were no stores classified as held for sale as of December 31, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company may maintain cash equivalents in financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. |
Restricted Cash | Restricted Cash Restricted cash generally consists of cash deposits required for debt service, capital replacement and expense reserves in connection with the terms of our loan agreements. |
Loan Procurement Costs | Loan Procurement Costs Loan procurement costs related to borrowings were $50.1 million and $38.1 million as of December 31, 2021 and 2020, respectively, and are reported net of accumulated amortization of $14.3 million and $13.1 million as of December 31, 2021 and 2020, respectively. In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company’s revolving credit facility remain in Loan procurement costs, net of amortization on the Company’s consolidated balance sheets. The costs are amortized over the estimated life of the related debt using the effective interest method and are reported as Loan procurement amortization expense on the Company’s consolidated statements of operations. |
Other Assets | Other Assets Other assets are comprised of the following as of December 31, 2021 and 2020: December 31, 2021 2020 (in thousands) Intangible assets, net of accumulated amortization of $12,760 and $2,123 $ 108,794 $ 57,820 Accounts receivable, net 8,145 5,829 Prepaid property taxes 6,938 6,334 Prepaid property and casualty insurance 3,352 2,626 Amounts due from affiliates (see note 14) 15,417 13,130 Assets related to deferred compensation arrangements 60,297 17,207 Right-of-use assets - operating leases (see note 13) 54,741 55,302 Equity investment recorded at cost (1) — 5,000 Other 8,021 7,505 Total other assets, net $ 265,705 $ 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 then newly formed venture that acquired 22 self-storage properties located in Florida (4) , Oklahoma (5) and Texas (13) . The Class A preferred units earned an 11% cumulative dividend prior to any other distributions. On August 24, 2021, the Class A preferred units and all accrued and unpaid dividends were redeemed and paid, respectively. Prior to this redemption, the Company’s investment in Capital Storage and the related dividends were 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. The Company no longer has an ownership interest in Capital Storage. |
Environmental Costs | Environmental Costs Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional stores. Whenever the environmental assessment for one of the Company’s stores indicates that a store is impacted by soil or groundwater contamination from prior owners/operators or other sources, the Company will work with environmental consultants and where appropriate, state governmental agencies, to ensure that the store is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment or that the responsibility for cleanup rests with a third party. |
Revenue Recognition | Revenue Recognition Management has determined that all of the Company’s leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. The Company recognizes gains from sale of real estate in accordance with the guidance on transfer of nonfinancial assets. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized when a valid contract exists, the collectability of the sales price is reasonably assured and the control of the property has transferred. |
Advertising and Marketing Costs | Advertising and Marketing Costs The Company incurs advertising and marketing costs primarily attributable to internet marketing and other media advertisements. These costs are expensed as incurred. The Company incurred $21.0 million, $16.9 million and $11.5 million in advertising and marketing expenses for the years ended December 31, 2021, 2020 and 2019, respectively, which are included in Property operating expenses on the Company’s consolidated statements of operations. |
Equity Offering Costs | Equity Offering Costs Underwriting discounts and commissions, financial advisory fees and other offering costs are reflected as a reduction to additional paid-in capital. For the years ended December 31, 2021, 2020 and 2019, the Company recognized $28.3 million, $1.5 million and $2.1 million, respectively, of equity offering costs related to the issuance of common shares. |
Other Property Related Income | Other Property Related Income Other property related income consists of late fees, administrative charges, customer storage protection plan fees, sales of storage supplies and other ancillary revenues and is recognized in the period that it is earned. |
Capitalized Interest | Capitalized Interest The Company capitalizes interest incurred that is directly associated with construction activities until the asset is placed into service. Interest is capitalized to the related asset(s) using the weighted average rate of the Company’s outstanding debt. For the years ended December 31, 2021, 2020 and 2019, the Company capitalized |
Derivative Financial Instruments | Derivative Financial Instruments The Company carries all derivatives on the balance sheet at fair value. The Company determines the fair value of derivatives by observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The Company’s use of derivative instruments has been limited to cash flow hedges of certain interest rate risks. The Company had no outstanding derivatives as of December 31, 2021 or 2020. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code since the Company’s commencement of operations in 2004. In management’s opinion, the requirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiaries. Earnings and profits, which determine the taxability of distributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the estimated useful lives used to compute depreciation, and the allocation of net income and loss for financial versus tax reporting purposes. The net tax basis in the Company’s assets was approximately $6,113.5 million and $4,384.1 million as of December 31, 2021 and 2020, respectively. Since the Company’s initial quarter as a publicly-traded REIT, it has made regular quarterly distributions to its shareholders. Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, the Company provides each of its shareholders a statement detailing the tax characterization of dividends paid during the preceding year as ordinary income, capital gain or return of capital. The characterization of the Company’s dividends for 2021 consisted of a 92.6365% ordinary income distribution and a 7.3635% capital gain distribution. The Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Company’s ordinary income, (b) 95% of the Company’s net capital gains and (c) 100% of prior taxable income exceeds cash distributions and certain taxes paid by the Company. No excise tax was incurred in 2021, 2020 or 2019. Taxable REIT subsidiaries are subject to federal and state income taxes. Our taxable REIT subsidiaries had a net deferred tax liability of $0.7 million as of December 31, 2021 and a net deferred tax asset of $0.4 million as of December 31, 2020. |
Earnings per Share and Unit | Earnings per Share and Unit Basic earnings per share and unit are calculated based on the weighted average number of common shares and restricted shares outstanding during the period. Diluted earnings per share and unit is calculated by further adjusting for the dilutive impact of share options, unvested restricted shares and contingently issuable shares outstanding during the period using the treasury stock method. Potentially dilutive securities calculated under the treasury stock method were |
Share-Based Payments | Share-Based Payments We apply the fair value method of accounting for contingently issued shares and share options issued under our incentive award plan. Accordingly, share compensation expense is recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has recognized compensation expense on a straight-line method over the requisite service period, which is included in general and administrative expense on the Company’s consolidated statement of operations. The Company recognizes forfeitures on share-based payments as they occur. |
Investments in Unconsolidated Real Estate Ventures | Investments in Unconsolidated Real Estate Ventures The Company accounts for its investments in unconsolidated real estate ventures under the equity method of accounting when it is determined that the Company has the ability to exercise significant influence over the venture. Under the equity method, investments in unconsolidated real estate ventures are recorded initially at cost, as investments in real estate ventures, and subsequently adjusted for equity in earnings (losses), cash contributions, less distributions and impairments. On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. An investment is impaired only if the fair value of the investment, as estimated by management, is less than the carrying value of the investment and the decline is other than temporary. To the extent impairment that is other than temporary has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment, as estimated by management. The determination as to whether impairment exists requires significant management judgment about the fair value of the Company’s ownership interest. Fair value is determined through various valuation techniques, including but not limited to, discounted cash flow models, quoted market values and third-party appraisals. There were |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued 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 was effective on January 1, 2022. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s stores are located in major metropolitan and rural areas and have numerous customers per store. No single customer represents a significant concentration of our revenues. The stores in New York, Florida, Texas and California provided approximately 19%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2021. The stores in New York, Florida, Texas and California provided approximately 16%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2020. The stores in New York, Florida, Texas and California provided approximately 16%, 16%, 10% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of other assets | Other assets are comprised of the following as of December 31, 2021 and 2020: December 31, 2021 2020 (in thousands) Intangible assets, net of accumulated amortization of $12,760 and $2,123 $ 108,794 $ 57,820 Accounts receivable, net 8,145 5,829 Prepaid property taxes 6,938 6,334 Prepaid property and casualty insurance 3,352 2,626 Amounts due from affiliates (see note 14) 15,417 13,130 Assets related to deferred compensation arrangements 60,297 17,207 Right-of-use assets - operating leases (see note 13) 54,741 55,302 Equity investment recorded at cost (1) — 5,000 Other 8,021 7,505 Total other assets, net $ 265,705 $ 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 then newly formed venture that acquired 22 self-storage properties located in Florida (4) , Oklahoma (5) and Texas (13) . The Class A preferred units earned an 11% cumulative dividend prior to any other distributions. On August 24, 2021, the Class A preferred units and all accrued and unpaid dividends were redeemed and paid, respectively. Prior to this redemption, the Company’s investment in Capital Storage and the related dividends were 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. The Company no longer has an ownership interest in Capital Storage. |
STORAGE PROPERTIES (Tables)
STORAGE PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
STORAGE PROPERTIES | |
Summary of real estate assets | December 31, 2021 2020 (in thousands) Land $ 1,565,463 $ 1,093,503 Buildings and improvements 5,368,383 4,122,995 Equipment 129,531 123,044 Construction in progress 78,221 108,316 Right-of-use assets - finance leases 41,896 41,896 Storage properties 7,183,494 5,489,754 Less: Accumulated depreciation (1,085,824) (983,940) Storage properties, net $ 6,097,670 $ 4,505,814 |
Schedule of acquisitions and dispositions of real estate assets | 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 New Jersey/Pennsylvania Assets Philadelphia-Camden-Wilmington, PA-NJ-DE-MD July 2021 2 33,000 Florida Asset Miami-Fort Lauderdale-Pompano Beach, FL November 2021 1 14,750 Georgia Asset Atlanta-Sandy Springs-Marietta, GA November 2021 1 15,200 Pennsylvania Asset Philadelphia-Camden-Wilmington, PA-NJ-DE-MD November 2021 1 24,500 Nevada Asset Las Vegas-Paradise, NV December 2021 1 21,000 Storage West Assets Various (see note 4) December 2021 57 1,648,426 (2) Illinois Asset Chicago-Naperville-Joliet, IL-IN-WI December 2021 1 10,300 66 $ 1,801,251 2021 Dispositions: Colorado/Nevada Assets Denver-Aurora, CO / Las Vegas-Paradise, NV September 2021 2 $ 16,900 North Carolina Assets Burlington, NC September 2021 2 21,700 Texas Asset Houston-Sugar Land-Baytown, TX November 2021 1 5,200 5 $ 43,800 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 2019 Acquisitions: Maryland Asset Baltimore-Towson, MD March 2019 1 $ 22,000 Florida Assets Cape Coral-Fort Myers, FL April 2019 2 19,000 Arizona Asset Phoenix-Mesa-Scottsdale, AZ May 2019 1 1,550 HVP III Assets Various (see note 4) June 2019 18 128,250 (3) Georgia Asset Atlanta-Sandy Springs-Marietta, GA August 2019 1 14,600 South Carolina Asset Charleston-North Charleston, SC August 2019 1 3,300 Texas Asset Dallas-Fort Worth-Arlington, TX October 2019 1 7,300 Florida Assets Orlando-Kissimmee, FL November 2019 3 32,100 California Asset Los Angeles-Long Beach-Santa Ana, CA December 2019 1 18,500 29 $ 246,600 2019 Disposition: Texas Asset College Station-Bryan, TX October 2019 1 $ 4,146 1 $ 4,146 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. (2) Purchase price represents the acquisition of all 167,557 outstanding partnership units of LAACO, Ltd. (“LAACO”) for $9,838 per unit. At the time of the acquisition, LAACO owned 57 storage properties (the “Storage West Assets”) and 50% ownership interests in two separate joint ventures. Through this acquisition, the Company also acquired LAACO’s wholly-owned subsidiaries, the Los Angeles Athletic Club and the California Yacht Club (the “Club Operations”), which are classified as held for sale on the Company’s consolidated balance sheets as of December 31, 2021 (see note 4). (3) Amount represents the purchase price for 90% of the ownership interest in 191 III CUBE LLC (“HVP III”), which at the time of the acquisition, owned 18 storage properties (see note 4). |
INVESTMENT ACTIVITY (Tables)
INVESTMENT ACTIVITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INVESTMENT ACTIVITY | |
Schedule of relevant components contemplated in the acquisition of LAACO | Amount (in thousands) Costs contemplated: Capitalized costs: LAACO partnership units (1) $ 1,648,426 Long-term debt assumed and repaid at closing 40,880 Payments to LAACO management (capitalized) (2) 16,807 Other transaction costs (3) 13,407 Total capitalized costs $ 1,719,520 Payments and anticipated payments to LAACO management (expensed) (2) 25,144 Total costs contemplated $ 1,744,664 Estimated fair value of Club Operations (included in total costs contemplated above) $ 46,800 (1) Represents the acquisition of all 167,557 outstanding partnership units for $9,838 per unit. (2) Upon the acquisition of LAACO, the Company assumed severance obligations payable to certain employees pursuant to pre-existing agreements. Based on the specific details of the arrangements, $16.8 million in costs were capitalized to the basis of the acquired properties while $25.1 million were considered post-combination compensation expenses. Of this $25.1 million, $14.8 million was included in the component of other income (expense) designated as other for the year ended December 31, 2021, with the remainder expected to be expensed during the six months ended June 30, 2022. (3) Includes consulting fees, legal fees, and other costs. |
Schedule of accounting for the LAACO acquisition | Amount (in thousands) Storage properties $ 1,517,243 Cash and cash equivalents 18,291 Investment in real estate ventures, at equity 35,737 Assets held for sale 50,435 Other assets, net 143,599 Accounts payable, accrued expenses and other liabilities (38,350) Deferred revenue (3,764) Security deposits (36) Liabilities held for sale (3,635) Total $ 1,719,520 |
Schedule of capitalized costs for investments in storage properties | CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) Newton, MA (1) 1 Q4 2021 100% $ 20,800 East Meadow, NY (2) 1 Q2 2021 100% 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (3) 1 Q1 2021 90% 26,400 Brooklyn, NY (2) 1 Q2 2020 100% 45,900 Waltham, MA (1) 1 Q3 2019 100% 18,000 Queens, NY (2) 1 Q2 2019 100% 47,500 Bayonne, NJ (2) (4) 1 Q2 2019 100% 25,100 8 $ 232,400 (1) During the third quarter of 2019 and fourth quarter of 2021, the Company, through two separate joint ventures in which it owned a 90% interest in each and that were previously consolidated, completed the construction of and opened for operation a store located in Waltham, MA and a store located in Newton, MA, respectively. On September 6, 2019, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the Waltham, MA store for $2.6 million. On December 14, 2021, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the Newton, MA store for $3.4 million. Prior to these transactions, the noncontrolling member’s interest in each venture was reported in Noncontrolling interests in subsidiaries on the consolidated balance sheets. Since the Company retained its controlling interest in each venture and the stores are now wholly owned, these transactions were accounted for as equity transactions. In each case, the carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase and the difference between the purchase price paid by the Company and the carrying amount of the noncontrolling interest was recorded as an adjustment to equity attributable to the Company, with no gain or loss recorded. This adjustment was $2.0 million for the Waltham, MA store and $2.7 million for the Newton, MA store. The $10.5 million related party loan extended by the Company to the venture that owned the Waltham, MA store and the $13.2 million related party loan extended by the Company to the venture that owned the Newton, MA store were repaid in conjunction with the Company’s acquisitions of the noncontrolling member’s ownership interests. (2) These stores were previously owned by four separate consolidated joint ventures, of which the Company held a 51% ownership interest in each. On June 25, 2019, the noncontrolling member in the venture that owned the Bayonne, NJ store put its 49% interest in the venture to the Company for $11.5 million. On September 17, 2019, the noncontrolling member in the venture that owned the Queens, NY store put its 49% interest in the venture to the Company for $15.2 million. On September 29, 2020, the noncontrolling member in the venture that owned the Brooklyn, NY store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. The 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 12). On June 29, 2021, the noncontrolling member in the venture that owned the East Meadow, NY store put its 49% interest in the venture to the Company for $6.6 million. The cash payments related to these transactions are included in Development costs in the consolidated statements of cash flows. (3) 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 12). (4) This store is subject to a ground lease. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, December 31, Unconsolidated Real Estate Ventures Interest 2021 2020 2021 2020 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 - $ 14,225 $ - Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 - 21,536 - 191 V CUBE LLC ("HVP V") (2) 20% 5 - 16,080 - 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% 14 14 4,541 5,015 191 IV CUBE LLC ("HVP IV") (4) 20% 28 21 23,223 21,760 CUBE HHF Northeast Venture LLC ("HHFNE") (5) 10% 13 13 1,291 1,628 CUBE HHF Limited Partnership ("HHF") (6) 50% 28 35 38,855 63,668 90 83 $ 119,751 $ 92,071 (1) On December 9, 2021, the Company completed the acquisition of LAACO, which included a 50% interest in Fontana and RCSS , each of which owns one self-storage property in California. As of the date of acquisition, the Company recognized differences between the Company’s equity investment in Fontana and RCSS and the underlying equity reflected at the venture level. As of December 31, 2021, this difference was $13.5 million for Fontana and $20.1 million for RCSS. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) 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. As of December 31, 2021, HVP V owned five self-storage properties located in Florida (2) , New Jersey (2) and New York (1) . HVP V paid an aggregate of $143.7 million for these properties, of which $2.2 million was allocated to the value of the in-place leases. These acquisitions were funded initially through pro-rata contributions by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP V related to these acquisitions was $22.6 million. During the year ended December 31, 2021, the venture closed on an $80.6 million secured term loan. The loan bears interest at SOFR plus 2.05% and matures on September 30, 2025 with an option to extend the maturity date through September 30, 2026, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. (3) The stores owned by HVPSE are 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. (4) The stores owned by HVP IV are located in Arizona (2) , Connecticut (3) , Florida (4) , Georgia (2) , Illinois (5) , Maryland (2) , Minnesota (1) , Pennsylvania (1) and Texas (8) . The Company’s total contribution to HVP IV in connection with these store acquisitions was $32.0 million. During the year ended December 31, 2021, HVP IV entered into a new $221.6 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. (5) 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 December 31, 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. (6) The stores owned by HHF are located in North Carolina (1) and Texas (27) . On October 5, 2021, HHF sold seven stores in Texas for an aggregate sales price of approximately $85.0 million. The venture recorded gains which aggregated to approximately $46.9 million in connection with the sale. 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 the new loan to repay its existing outstanding $100.0 million loan in full. |
Summary of the financial position of the ventures | December 31, 2021 2020 Assets (in thousands) Storage properties, net $ 850,250 $ 662,833 Other assets 34,760 18,112 Total assets $ 885,010 $ 680,945 Liabilities and equity Debt $ 526,972 $ 359,985 Other liabilities 14,500 11,588 Equity CubeSmart 86,083 92,071 Joint venture partners 257,455 217,301 Total liabilities and equity $ 885,010 $ 680,945 |
Summary of results of operations of the ventures | For the year ended December 31, 2021 2020 2019 (in thousands) Total revenues $ 88,449 $ 67,239 $ 72,582 Operating expenses (37,967) (30,755) (32,134) Other expenses (1,138) (430) (3,227) Interest expense, net (12,031) (11,585) (14,927) Depreciation and amortization (37,805) (33,086) (30,107) Gains from sale of real estate, net 46,966 — 106,667 Net income (loss) $ 46,474 $ (8,617) $ 98,854 Company’s share of net income (loss) $ 25,275 $ 178 $ 11,122 |
UNSECURED SENIOR NOTES (Tables)
UNSECURED SENIOR NOTES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Senior Notes | |
Summary of debt | December 31, Effective Issuance Maturity Unsecured Senior Notes 2021 2020 Interest Rate Date Date (in thousands) $300M 4.375% Guaranteed Notes due 2023 (1) (2) $ — $ 300,000 4.33 % Various (2) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (3) 300,000 300,000 3.99 % Various (3) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 $550M 2.250% Guaranteed Notes due 2028 550,000 — 2.33 % Nov-21 Dec-28 $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 $500M 2.500% Guaranteed Notes due 2032 500,000 — 2.59 % Nov-21 Feb-32 Principal balance outstanding 2,800,000 2,050,000 Less: Discount on issuance of unsecured senior notes, net (13,455) (7,470) Less: Loan procurement costs, net (18,336) (12,158) Total unsecured senior notes, net $ 2,768,209 $ 2,030,372 (1) On December 23, 2021, the Operating Partnership redeemed, in full, its $300.0 million of outstanding 4.375% senior notes due 2023 (the “2023 Notes”), with a portion of the net proceeds from its $550.0 million of 2.250% senior notes due 2028 and its $500.0 million of 2.500% senior notes due 2032 issued on November 30, 2021. In connection with the redemption of the 2023 Notes, the Operating Partnership recognized a loss on early debt extinguishment of $20.3 million, of which $20.0 million represents a prepayment premium and $0.3 represents the write-off of unamortized loan procurement costs. (2) 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% . (3) 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) - Mortgage Loans | 12 Months Ended |
Dec. 31, 2021 | |
Summary of debt | Carrying Value as of 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 2,206 2,261 3.85 % Jun-23 New York, NY 29,340 29,981 3.51 % Jun-23 Annapolis I, MD 5,099 5,283 3.78 % May-24 Brooklyn XV, NY 15,423 15,713 2.15 % May-24 Long Island City IV, NY 12,580 12,852 2.15 % May-24 Long Island City II, NY 18,714 19,094 2.25 % Jul-26 Long Island City III, NY 18,723 19,106 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 156,385 202,768 Plus: Unamortized fair value adjustment 12,981 15,879 Less: Loan procurement costs, net (1,690) (2,143) Total mortgage loans and notes payable, net $ 167,676 $ 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 | 2022 $ 2,426 2023 32,591 2024 32,329 2025 979 2026 33,760 2027 and thereafter 54,300 Total mortgage payments 156,385 Plus: Unamortized fair value adjustment 12,981 Less: Loan procurement costs, net (1,690) Total mortgage loans and notes payable, net $ 167,676 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in accumulated other comprehensive loss by component | Accumulated other comprehensive loss represents unrealized losses on interest rate swaps (see note 10). The following table summarizes the changes in accumulated other comprehensive loss for the years ended December 31, 2021 and 2020. December 31, 2021 2020 (in thousands) Beginning balance $ (656) $ (737) Reclassification of realized losses on interest rate swaps (1) 81 81 Ending balance (575) (656) Less: portion included in noncontrolling interests in the Operating Partnership 5 24 Total accumulated other comprehensive loss included in equity $ (570) $ (632) (1) See note 10 for additional information about the effects of the amounts reclassified. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities carried at fair value | December 31, 2021 December 31, 2020 (in thousands) Carrying value $ 3,145,785 $ 2,364,676 Fair value 3,256,128 2,571,300 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests in subsidiaries | CubeSmart Number Date Opened / Ownership December 31, 2021 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) Astoria Investors, LLC ("Astoria") (2) 1 Queens, NY Q1 2023 (est.) 70% $ 21,020 $ 25 CS Vienna, LLC ("Vienna") (3) 1 Vienna, VA Q2 2022 (est.) 72% 25,667 14,497 CS 750 W Merrick Rd, LLC ("Merrick") (4) 1 Valley Stream, NY Q1 2022 (est.) 51% 31,050 16,656 CS Valley Forge Village Storage, LLC ("VFV") (5) 1 King of Prussia, PA Q2 2021 70% 21,128 14,050 CS Lock Up Anoka, LLC ("Anoka") (6) 1 Anoka, MN Q2 2021 50% 11,739 5,567 SH3, LLC ("SH3") (7) 1 Arlington, VA Q2 2015/Q1 2021 90% 38,922 192 6 $ 149,526 $ 50,987 (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 August 17, 2021, the Company contributed $14.7 million in exchange for a 70% ownership interest in Astoria, which acquired land for future development of a self-storage property in Queens, NY for $20.0 million. The Company has a related party loan commitment to Astoria of $27.1 million to fund all or a portion of the construction costs. (3) 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 December 31, 2021, the Company has funded $13.2 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. (4) 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 December 31, 2021, has accrued $14.7 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. (5) The Company has a related party commitment to VFV that was used to fund a portion of the construction costs. As of December 31, 2021, the Company has an outstanding loan of $13.7 million to VFV, which is included in the total liability amount within the table above. This loan and the related interest were eliminated for consolidation purposes. (6) 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, as of December 31, 2021, the Company has funded $ 5.5 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. (7) 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) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
Summary of lease cost | Year Ended December 31, 2021 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 964 $ 49 Interest expense related to finance lease liabilities 2,139 64 Operating lease cost 3,278 2,856 Short-term lease cost (1) 1,173 1,114 Total lease costs $ 7,554 $ 4,083 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 1,938 $ — Operating cash outflows for operating leases 2,513 2,186 Total cash outflows for lease liability measurement $ 4,451 $ 2,186 (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 | December 31, 2021 2020 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 40,932 $ 41,896 Lease liabilities included in Lease liabilities - finance leases $ 65,801 $ 65,599 Operating Leases Right-of-use assets included in Other assets, net $ 54,741 $ 55,302 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 54,018 $ 53,595 Weighted Average Lease Term (in years) Finance leases 42.5 43.5 Operating leases 34.0 34.8 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.46 % 4.46 % |
Schedule of future operating lease liability maturities | The following table represents the future lease liability maturities as of December 31, 2021 (in thousands): Finance Operating 2022 $ 2,182 $ 2,667 2023 2,183 2,719 2024 2,183 2,569 2025 2,224 2,568 2026 2,334 2,644 2027 and thereafter 120,598 97,655 Total lease payments 131,704 110,822 Less: Imputed interest (65,903) (56,804) Present value of lease liabilities $ 65,801 $ 54,018 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION PLANS | |
Schedule of assumptions used for estimating the fair value of share options using the Black-Scholes option-pricing model | Assumptions: 2021 2020 2019 Risk-free interest rate 0.6 % 1.9 % 2.7 % Expected dividend yield 3.8 % 3.9 % 3.9 % Volatility (1) 25.00 % 20.00 % 32.00 % Weighted average expected life of the options (2) 6.0 years 6.0 years 6.0 years Weighted average grant date fair value of options granted per share $ 4.62 $ 3.66 $ 6.35 Term 10.0 years 10.0 years 10.0 years (1) Expected volatility is based upon the Company’s historical daily share prices. (2) The expected life is based on the contractual term of the options as well as the vesting period. |
Summary of option activity | Options Weighted Average Strike Price Weighted Average Remaining Contractual Term (Years) Balance at December 31, 2020 2,118,090 $ 26.37 6.39 Options granted 592,456 33.70 9.01 Options canceled (27,743) 32.33 — Options exercised (418,999) 18.77 3.08 Balance at December 31, 2021 2,263,804 $ 29.63 6.82 Vested or expected to vest at December 31, 2021 2,263,804 $ 29.63 6.82 Exercisable at December 31, 2021 1,202,882 $ 27.17 5.37 |
Schedule of non-vested restricted share activity | Number of Non- Vested Restricted Shares and Performance Units Non-Vested at January 1, 2021 382,901 Granted 176,825 Vested (160,549) Forfeited (11,476) Non-Vested at December 31, 2021 387,701 |
Schedule of estimation of the fair value of the awards, the key assumptions | Assumptions: 2021 2020 2019 Risk-free interest rate 0.2 % 1.7 % 2.6 % Volatility (1) 28.00 % 19.00 % 23.00 % |
EARNINGS PER SHARE AND UNIT A_2
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
Summary of the elements used in calculating basic and diluted earnings 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: For the year ended December 31, 2021 2020 2019 (dollars and shares in thousands, except per share amounts) Net income $ 230,813 $ 167,611 $ 170,771 Noncontrolling interests in the Operating Partnership (7,873) (1,825) (1,708) Noncontrolling interest in subsidiaries 542 (165) 54 Net income attributable to the Company’s common shareholders $ 223,482 $ 165,621 $ 169,117 Weighted average basic shares outstanding 203,832 194,147 190,874 Share options and restricted share units 1,177 796 702 Weighted average diluted shares outstanding (1) 205,009 194,943 191,576 Basic earnings per share attributable to common shareholders $ 1.10 $ 0.85 $ 0.89 Diluted earnings per share attributable to common shareholders (2) $ 1.09 $ 0.85 $ 0.88 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: For the year ended December 31, 2021 2020 2019 (dollars and units in thousands, except per unit amounts) Net income $ 230,813 $ 167,611 $ 170,771 Operating Partnership interests of third parties (7,873) (1,825) (1,708) Noncontrolling interest in subsidiaries 542 (165) 54 Net income attributable to common unitholders $ 223,482 $ 165,621 $ 169,117 Weighted average basic units outstanding 203,832 194,147 190,874 Unit options and restricted share units 1,177 796 702 Weighted average diluted units outstanding (1) 205,009 194,943 191,576 Basic earnings per unit attributable to common unitholders $ 1.10 $ 0.85 $ 0.89 Diluted earnings per unit attributable to common unitholders (2) $ 1.09 $ 0.85 $ 0.88 (1) For the years ended December 31, 2021, 2020 and 2019, the Company declared cash dividends per common share/unit of $1.45 , $1.33 and $1.29 , respectively. (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 years ended December 31, 2020 were 0.8 million. There were no anti-dilutive options for the years ended December 31, 2021 or 2019. |
Schedule of common shares sold pursuant to equity distribution agreements | For the year ended December 31, 2021 2020 2019 (dollars and shares in thousands, except per share amounts) Number of shares sold 4,982 3,627 5,899 Average sales price per share $ 40.57 $ 33.69 $ 33.64 Net proceeds after deducting offering costs $ 199,977 $ 120,727 $ 196,304 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 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, L.P. and Subsidiaries | |
Percentage of the entity's partnership interest in Operating Partnership | 99.20% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Operating Partnership, Purchase Allocation, Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Partnership Ownership | |||
Increase (decrease) to OP units owned by third parties and a corresponding decrease to capital | $ 164,109 | $ 4,230 | $ 5,918 |
Purchase Price Allocation | |||
Amount of purchase price allocated to above- or below-market lease intangibles | 0 | ||
Depreciation and Amortization | |||
Write-off of fully depreciated real estate assets | 52,700 | 83,400 | |
Write-off of fully amortized in-place lease intangible assets | 59,900 | 20,500 | |
Impairment losses | $ 0 | 0 | 0 |
Minimum | |||
Depreciation and Amortization | |||
Useful lives of self-storage facilities and improvements | 5 years | ||
Maximum | |||
Depreciation and Amortization | |||
Useful lives of self-storage facilities and improvements | 39 years | ||
CubeSmart, L.P. and Subsidiaries | |||
Operating Partnership Ownership | |||
Increase (decrease) to OP units owned by third parties and a corresponding decrease to capital | $ 164,109 | $ 4,230 | $ 5,918 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash, Loan Costs and Other Assets (Details) $ in Thousands | Sep. 05, 2018USD ($)facility | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Long-Lived Assets held for sale, timing of expected sale | 1 year | ||
Loan procurement costs | |||
Loan procurement costs | $ 50,100 | $ 38,100 | |
Loan procurement costs, accumulated amortization | 14,300 | 13,100 | |
Other Assets | |||
Intangible assets, net of accumulated amortization of $12,760 and $2,123 | 108,794 | 57,820 | |
Accounts receivable, net | 8,145 | 5,829 | |
Prepaid property taxes | 6,938 | 6,334 | |
Prepaid property and casualty insurance | 3,352 | 2,626 | |
Amounts due from affiliates (see note 14) | 15,417 | 13,130 | |
Assets related to deferred compensation arrangements | 60,297 | 17,207 | |
Right-of-use assets - operating leases (see note 13) | $ 54,741 | $ 55,302 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total | Total | |
Equity investment recorded at cost | $ 5,000 | ||
Other | $ 8,021 | 7,505 | |
Total | 265,705 | 170,753 | |
Accumulated amortization | $ 12,760 | $ 2,123 | |
Capital Storage Partners, LLC | |||
Other Assets | |||
Equity investment recorded at cost | $ 5,000 | ||
Preferred units ownership (as a percent) | 100.00% | ||
Number of self-storage facilities acquired | facility | 22 | ||
Series A Preferred shares, percentage | 11.00% | ||
Capital Storage Partners, LLC | Florida | |||
Other Assets | |||
Number of self-storage facilities acquired | facility | 4 | ||
Capital Storage Partners, LLC | Oklahoma | |||
Other Assets | |||
Number of self-storage facilities acquired | facility | 5 | ||
Capital Storage Partners, LLC | Texas | |||
Other Assets | |||
Number of self-storage facilities acquired | facility | 13 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising, Equity Offering Costs and Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Advertising and Marketing Costs | |||
Advertising and marketing expenses | $ 21 | $ 16.9 | $ 11.5 |
Equity Offering Costs | |||
Equity offering costs | 28.3 | 1.5 | 2.1 |
Capitalized Interest | |||
Interest costs, capitalized | $ 1.9 | $ 2.7 | $ 3 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes, Earnings per Share and Unit and Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Net tax basis in the entity's assets | $ 6,113.5 | $ 4,384.1 | |
Percentage of distributions characterized as ordinary income dividends | 92.6365% | ||
Percentage of distributions characterized as capital gain dividends | 7.3635% | ||
Federal excise tax rate (as a percent) | 4.00% | ||
Percentage of ordinary income considered for the calculation of annual amount which is subject to federal excise tax | 85.00% | ||
Percentage of net capital gain considered for the calculation of annual amount which is subject to Federal excise tax | 95.00% | ||
Percentage of prior year taxable income considered for the calculation of annual amount which is subject to federal excise tax | 100.00% | ||
Sales and Excise Tax Payable | $ 0 | 0 | $ 0 |
Net deferred tax liability | $ 0.7 | ||
Net deferred tax assets | $ 0.4 | ||
Earnings per Share and Unit | |||
Potential dilutive securities included in the calculation of diluted earnings per share (in shares) | 1,176,000 | 796,000 | 702,000 |
Foreign currency | |||
Derivatives outstanding | $ 0 | $ 0 | |
Impairment | 0 | $ 0 | $ 0 |
Equity method investment, difference between carrying amount and underlying equity | $ 33.6 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - Revenues - Location of facilities | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
New York | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 19.00% | 16.00% | 16.00% |
Florida | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 15.00% | 15.00% | 16.00% |
California | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 8.00% | 8.00% | 8.00% |
Texas | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 9.00% | 9.00% | 10.00% |
STORAGE PROPERTIES - Summary (D
STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
STORAGE FACILITIES | |||
Storage properties | $ 7,183,494 | $ 5,489,754 | |
Less: Accumulated depreciation | (1,085,824) | (983,940) | |
Storage properties, net (including VIE assets of $149,467 and $119,345, respectively) | 6,097,670 | 4,505,814 | $ 3,774,485 |
Land | |||
STORAGE FACILITIES | |||
Storage properties | 1,565,463 | 1,093,503 | |
Buildings and improvements | |||
STORAGE FACILITIES | |||
Storage properties | 5,368,383 | 4,122,995 | |
Equipment | |||
STORAGE FACILITIES | |||
Storage properties | 129,531 | 123,044 | |
Construction in progress | |||
STORAGE FACILITIES | |||
Storage properties | 78,221 | 108,316 | |
Right-of-use assets - finance leases | |||
STORAGE FACILITIES | |||
Storage properties | $ 41,896 | $ 41,896 |
STORAGE PROPERTIES - Activity (
STORAGE PROPERTIES - Activity (Details) $ / shares in Units, $ in Thousands | Dec. 09, 2021facilityitem$ / sharesshares | Jun. 06, 2019USD ($)facilityproperty | Dec. 31, 2021USD ($)facility | Dec. 31, 2020USD ($)facility | Dec. 31, 2019USD ($)facility |
HVP III | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | property | 18 | ||||
Percentage of interest acquired | 90.00% | ||||
2021 Acquisitions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 66 | ||||
Purchase Price | $ | $ 1,801,251 | ||||
2021 Acquisitions | Minnesota Asset April 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 12,000 | ||||
Ownership interest held by the entity (as a percent) | 50.00% | ||||
2021 Acquisitions | Maryland Asset June 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 22,075 | ||||
2021 Acquisitions | New Jersey and Pennsylvania Assets July 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 2 | ||||
Purchase Price | $ | $ 33,000 | ||||
2021 Acquisitions | Florida Asset November 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 14,750 | ||||
2021 Acquisitions | Georgia Asset November 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 15,200 | ||||
2021 Acquisitions | Pennsylvania Asset November 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 24,500 | ||||
2021 Acquisitions | Nevada Asset December 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 21,000 | ||||
2021 Acquisitions | Storage West Assets December 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 57 | ||||
Purchase Price | $ | $ 1,648,426 | ||||
2021 Acquisitions | Illinois Asset December 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 10,300 | ||||
2021 Dispositions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 5 | ||||
Sale Price | $ | $ 43,800 | ||||
2021 Dispositions | Colorado and Nevada Assets September 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 2 | ||||
Sale Price | $ | $ 16,900 | ||||
2021 Dispositions | North Carolina Assets September 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 2 | ||||
Sale Price | $ | $ 21,700 | ||||
2021 Dispositions | Texas Asset November 2021 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 1 | ||||
Sale Price | $ | $ 5,200 | ||||
2020 Acquisitions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 21 | ||||
Purchase Price | $ | $ 735,875 | ||||
2020 Acquisitions | Texas Asset February 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 9,025 | ||||
2020 Acquisitions | Maryland Asset April 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 17,200 | ||||
2020 Acquisitions | New Jersey Asset April 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 48,450 | ||||
2020 Acquisitions | Florida Asset November 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 3,900 | ||||
2020 Acquisitions | Texas Asset, Austin, November 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 10,750 | ||||
2020 Acquisitions | Texas Asset, Dallas, November 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 10,150 | ||||
2020 Acquisitions | Nevada Asset December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 16,800 | ||||
2020 Acquisitions | New York Asset December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 6,750 | ||||
2020 Acquisitions | Storage Deluxe Assets December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 8 | ||||
Purchase Price | $ | $ 540,000 | ||||
2020 Acquisitions | Florida Asset, Orlando, December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 3 | ||||
Purchase Price | $ | $ 45,500 | ||||
2020 Acquisitions | Florida Assets, Tampa, December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 10,000 | ||||
2020 Acquisitions | Virginia Asset December 2020 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 17,350 | ||||
2020 Dispositions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 1 | ||||
Sale Price | $ | $ 12,750 | ||||
2020 Dispositions | New York Asset Four Member | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 1 | ||||
Sale Price | $ | $ 12,750 | ||||
2019 Acquisitions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 29 | ||||
Purchase Price | $ | $ 246,600 | ||||
2019 Acquisitions | Maryland Asset March 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 22,000 | ||||
2019 Acquisitions | Florida Assets April 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 2 | ||||
Purchase Price | $ | $ 19,000 | ||||
2019 Acquisitions | Arizona Asset May 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 1,550 | ||||
2019 Acquisitions | HVP III Assets June 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 18 | ||||
Purchase Price | $ | $ 128,250 | ||||
2019 Acquisitions | Georgia Asset August 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 14,600 | ||||
2019 Acquisitions | South Carolina Asset August 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 3,300 | ||||
2019 Acquisitions | Texas Asset October 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 7,300 | ||||
2019 Acquisitions | Florida Assets November 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 3 | ||||
Purchase Price | $ | $ 32,100 | ||||
2019 Acquisitions | California Asset December 2019 | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 1 | ||||
Purchase Price | $ | $ 18,500 | ||||
2019 Acquisitions | HVP III | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 18 | ||||
Purchase Price | $ | $ 128,300 | ||||
Percentage of interest acquired | 90.00% | ||||
2019 Dispositions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 1 | ||||
Sale Price | $ | $ 4,146 | ||||
2019 Dispositions | Texas Asset Nineteen Member | |||||
STORAGE FACILITIES | |||||
Number of Facilities, dispositions (in properties) | 1 | ||||
Sale Price | $ | $ 4,146 | ||||
LAACO | 2021 Acquisitions | |||||
STORAGE FACILITIES | |||||
Number of Facilities, acquisitions (in properties) | 57 | ||||
Outstanding partnership unit purchased (in shares) | shares | 167,557 | ||||
Partnership units (dollars per share) | $ / shares | $ 9,838 | ||||
Number of joint ventures | item | 2 | ||||
LAACO | 2021 Acquisitions | Acquisitions | |||||
STORAGE FACILITIES | |||||
Percentage of interest acquired | 50.00% | ||||
Ownership interest held by the entity (as a percent) | 50.00% |
INVESTMENT ACTIVITY (Details)
INVESTMENT ACTIVITY (Details) | Dec. 14, 2021USD ($)item | Dec. 09, 2021facilityitem | Jun. 29, 2021USD ($) | Dec. 22, 2020USD ($) | Sep. 29, 2020USD ($)shares | Dec. 16, 2019USD ($) | Oct. 07, 2019USD ($) | Sep. 17, 2019USD ($) | Sep. 06, 2019USD ($)item | Sep. 05, 2019 | Jun. 25, 2019USD ($) | Jun. 06, 2019USD ($)facilityproperty | Jun. 05, 2019USD ($)property | Jul. 31, 2020USD ($) | Dec. 31, 2021USD ($)facilitypropertyshares | Dec. 31, 2020USD ($)facilityitemshares | Dec. 31, 2019USD ($)facilityshares | Dec. 31, 2021USD ($)propertyfacility |
Self-storage facilities | ||||||||||||||||||
Gains from sales of real estate, net | $ 32,698,000 | $ 6,710,000 | $ 1,508,000 | |||||||||||||||
Number of facilities, construction completed and opened | $ 8 | |||||||||||||||||
Acquisition of noncontrolling interest | $ 3,397,000 | $ 40,605,000 | ||||||||||||||||
OP units redeemed | shares | 5,500,000 | 100,000 | 80,000 | |||||||||||||||
Construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total Construction Costs | 232,400,000 | |||||||||||||||||
HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | property | 18 | |||||||||||||||||
Percentage of interest acquired | 90.00% | |||||||||||||||||
Texas | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Aggregate sale price | $ 4,100,000 | |||||||||||||||||
Gains from sales of real estate, net | $ 1,500,000 | |||||||||||||||||
New York | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Cash paid for acquisition | $ 1,000,000 | |||||||||||||||||
Units issued (in shares) | shares | 276,497 | |||||||||||||||||
Units issued | $ 9,000,000 | |||||||||||||||||
California | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Cash paid for acquisition | $ 14,900,000 | |||||||||||||||||
Issuance of OP Shares | 3,600,000 | |||||||||||||||||
Total consideration | $ 18,500,000 | |||||||||||||||||
Self-storage facilities under contract | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Deposit | $ 500,000 | 500,000 | ||||||||||||||||
Expected aggregate purchase or sales price | $ 32,000,000 | $ 32,000,000 | ||||||||||||||||
Number of facilities under contract | facility | 1 | 1 | ||||||||||||||||
Self storage under construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities under contract | property | 3 | 3 | ||||||||||||||||
Development costs | $ 66,700,000 | $ 66,700,000 | ||||||||||||||||
Expected construction cost | $ 97,300,000 | $ 97,300,000 | ||||||||||||||||
Self storage under construction | New York | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities under contract | property | 2 | 2 | ||||||||||||||||
Self storage under construction | Virginia | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities under contract | property | 1 | 1 | ||||||||||||||||
Self Storage Facility in Newton, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||||||
Self Storage Facility in Newton, MA | Construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total Construction Costs | 20,800,000 | |||||||||||||||||
Self-storage facility in East Meadow, NY | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
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 | |||||||||||||||||
Self-storage Facility in Waltham, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities, construction completed and opened | 1 | |||||||||||||||||
Self-storage Facility in Waltham, MA | Construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total Construction Costs | 18,000,000 | |||||||||||||||||
Self Storage Facility in Queens, NY I | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities, construction completed and opened | 1 | |||||||||||||||||
Self Storage Facility in Queens, NY I | Construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total Construction Costs | 47,500,000 | |||||||||||||||||
Self Storage Facility in Bayonne, NJ | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of facilities, construction completed and opened | 1 | |||||||||||||||||
Self Storage Facility in Bayonne, NJ | Construction | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total Construction Costs | 25,100,000 | |||||||||||||||||
2021 Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 66 | |||||||||||||||||
Aggregate purchase price | $ 1,801,251,000 | |||||||||||||||||
2021 Acquisitions | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 57 | |||||||||||||||||
Intangible value of the in-place leases | $ 109,700,000 | 109,700,000 | ||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | $ 9,100,000 | |||||||||||||||||
Number of facilities under contract | facility | 1 | |||||||||||||||||
Number of joint ventures | item | 2 | |||||||||||||||||
2021 Acquisitions | Acquisitions | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Percentage of interest acquired | 50.00% | |||||||||||||||||
Ownership interest held by the entity (as a percent) | 50.00% | |||||||||||||||||
2021 Acquisitions | Texas | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 7 | |||||||||||||||||
2021 Acquisitions | Nevada | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 13 | |||||||||||||||||
2021 Acquisitions | California | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 20 | |||||||||||||||||
2021 Acquisitions | Arizona | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 17 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 8 | |||||||||||||||||
Aggregate purchase price | $ 140,800,000 | |||||||||||||||||
Intangible value of the in-place leases | $ 11,900,000 | 11,900,000 | ||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | $ 3,600,000 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Florida | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Maryland | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Nevada | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Pennsylvania | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 2 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | New Jersey | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Illinois | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Georgia | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
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% | |||||||||||||||||
2021 Acquisitions | Self Storage Facility in Newton, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of joint ventures | item | 2 | |||||||||||||||||
2021 Dispositions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | facility | 5 | |||||||||||||||||
Aggregate sale price | $ 43,800,000 | |||||||||||||||||
Gains from sales of real estate, net | 32,700,000 | |||||||||||||||||
2021 Dispositions | LAACO | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Gains from sales of real estate, net | $ 0 | |||||||||||||||||
2021 Dispositions | Texas | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | facility | 1 | |||||||||||||||||
2021 Dispositions | Colorado | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | facility | 1 | |||||||||||||||||
2021 Dispositions | Nevada | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | facility | 1 | |||||||||||||||||
2021 Dispositions | North Carolina | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | facility | 2 | |||||||||||||||||
2020 Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 21 | |||||||||||||||||
Aggregate purchase price | $ 735,875,000 | |||||||||||||||||
2020 Acquisitions | Texas | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 3 | |||||||||||||||||
2020 Acquisitions | Florida | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 5 | |||||||||||||||||
2020 Acquisitions | New York | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2020 Acquisitions | Maryland | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2020 Acquisitions | Nevada | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2020 Acquisitions | Virginia | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2020 Acquisitions | New Jersey | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2020 Acquisitions | Self-storage facilities located in US | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 13 | |||||||||||||||||
Aggregate purchase price | $ 195,900,000 | |||||||||||||||||
2020 Acquisitions | Self-storage facilities located in US | Leases, Acquired-in-Place | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Intangible value of the in-place leases | $ 11,400,000 | |||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | $ 9,300,000 | $ 2,100,000 | ||||||||||||||||
2020 Acquisitions | Self-storage Facility in Bronx, NY I | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Real estate property acquired, land subject to ground lease | $ 9,500,000 | |||||||||||||||||
Decrease in right-of-use asset | 5,100,000 | |||||||||||||||||
Decrease in Operating Lease Liability | $ 5,000,000 | |||||||||||||||||
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 | |||||||||||||||||
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 | $ 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 | ||||||||||||||||||
Intangible value of the in-place leases | $ 48,600,000 | |||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | 48,600,000 | |||||||||||||||||
Number of assumed ground leases | item | 3 | |||||||||||||||||
Number of facilities acquired with existing ground leases, for which the leases were classified 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 sales of real estate, net | $ 6,700,000 | |||||||||||||||||
2019 Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 29 | |||||||||||||||||
Aggregate purchase price | $ 246,600,000 | |||||||||||||||||
2019 Acquisitions | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 18 | |||||||||||||||||
Number of self-storage facilities sold | facility | 50 | |||||||||||||||||
Aggregate purchase price | $ 128,300,000 | |||||||||||||||||
Intangible value of the in-place leases | $ 14,300,000 | |||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | 6,000,000 | $ 8,300,000 | ||||||||||||||||
Percentage of interest acquired | 90.00% | |||||||||||||||||
Acquisition of remaining interest in real estate ventures (as a percent) | 10.00% | |||||||||||||||||
Acquisition, assets recorded | $ 137,500,000 | |||||||||||||||||
Acquisition, previously held equity interest | 10,600,000 | |||||||||||||||||
Acquisition, cash acquired | $ 1,400,000 | |||||||||||||||||
2019 Acquisitions | Texas | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | Florida | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 5 | |||||||||||||||||
2019 Acquisitions | Massachusetts | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 7 | |||||||||||||||||
2019 Acquisitions | Maryland | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | California | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | Arizona | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | Georgia | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | Georgia | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | North Carolina | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | South Carolina | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
2019 Acquisitions | South Carolina | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 7 | |||||||||||||||||
2019 Acquisitions | Tennessee | HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 2 | |||||||||||||||||
2019 Acquisitions | Self-storage facilities located in US | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 11 | |||||||||||||||||
Aggregate purchase price | $ 118,300,000 | |||||||||||||||||
Cash paid for acquisition | 14,900,000 | |||||||||||||||||
Issuance of OP Shares | 3,600,000 | |||||||||||||||||
2019 Acquisitions | Self-storage facilities located in US | Leases, Acquired-in-Place | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Intangible value of the in-place leases | $ 6,200,000 | |||||||||||||||||
Estimated life | 12 months | |||||||||||||||||
Amortization expense | $ 0 | $ 4,300,000 | $ 1,900,000 | |||||||||||||||
2019 Acquisitions | Maryland Asset March 2019 | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||||||
Aggregate purchase price | $ 22,000,000 | |||||||||||||||||
2019 Dispositions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Aggregate sale price | $ 4,146,000 | |||||||||||||||||
Joint Venture | Self Storage Facilities in New York and New Jersey | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of joint ventures | item | 4 | |||||||||||||||||
Joint Venture | Self Storage Facility in Newton, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total consideration | $ 3,400,000 | |||||||||||||||||
Ownership interest held by the entity (as a percent) | 90.00% | |||||||||||||||||
Minority ownership interest (as a percent) | 0.00% | |||||||||||||||||
Acquisition of noncontrolling interest | $ 2,700,000 | |||||||||||||||||
Repayments of debt | $ 13,200,000 | |||||||||||||||||
Joint Venture | Self Storage Facility in Newton, MA | Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Acquisition of remaining interest in real estate ventures (as a percent) | 10.00% | |||||||||||||||||
Joint Venture | Self-storage facility in East Meadow, NY | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49.00% | |||||||||||||||||
Option to put ownership interest in the venture | $ 6,600,000 | |||||||||||||||||
Joint Venture | Self-storage Facility in Brooklyn, NY | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Issuance of OP Shares | $ 9,000,000 | |||||||||||||||||
Ownership interest held by the entity (as a percent) | 51.00% | |||||||||||||||||
Units issued (in shares) | shares | 276,497 | |||||||||||||||||
Joint Venture | Self-storage Facility in Waltham, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Total consideration | $ 2,600,000 | |||||||||||||||||
Acquisition, gain (loss) recognized | $ 0 | |||||||||||||||||
Ownership interest held by the entity (as a percent) | 90.00% | |||||||||||||||||
Minority ownership interest (as a percent) | 0.00% | |||||||||||||||||
Acquisition of noncontrolling interest | $ 2,000,000 | |||||||||||||||||
Repayments of debt | $ 10,500,000 | |||||||||||||||||
Number of joint ventures | item | 2 | |||||||||||||||||
Joint Venture | Self-storage Facility in Waltham, MA | Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Acquisition of remaining interest in real estate ventures (as a percent) | 10.00% | |||||||||||||||||
Joint Venture | Self Storage Facility in Queens, NY I | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49.00% | |||||||||||||||||
Option to put ownership interest in the venture | $ 15,200,000 | |||||||||||||||||
Joint Venture | Self Storage Facility in Bayonne, NJ | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49.00% | |||||||||||||||||
Option to put ownership interest in the venture | $ 11,500,000 | |||||||||||||||||
Joint Venture | Self Storage Facility in Brooklyn, NY I | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49.00% | |||||||||||||||||
Option to put ownership interest in the venture | $ 10,000,000 | |||||||||||||||||
Cash portion of put option paid | $ 1,000,000 | |||||||||||||||||
Cubesmart | Self Storage Facility in Newton, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
Cubesmart | Self-storage facility in East Meadow, NY | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
Cubesmart | Self-storage facility in King of Prussia, PA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 70.00% | |||||||||||||||||
Cubesmart | Self-storage Facility in Brooklyn, NY | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
Cubesmart | Self-storage Facility in Arlington, VA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 90.00% | |||||||||||||||||
Cubesmart | Self-storage Facility in Waltham, MA | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
Cubesmart | Self Storage Facility in Queens, NY I | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
Cubesmart | Self Storage Facility in Bayonne, NJ | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Ownership interest held by the entity (as a percent) | 100.00% | |||||||||||||||||
HVP III | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 50 | |||||||||||||||||
Aggregate sale price | $ 293,500,000 | |||||||||||||||||
Gains from sales of real estate, net | $ 106,700,000 | |||||||||||||||||
Ownership interest held by the entity (as a percent) | 90.00% | |||||||||||||||||
HVP III | Florida | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 3 | |||||||||||||||||
HVP III | Georgia | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 4 | |||||||||||||||||
HVP III | North Carolina | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 3 | |||||||||||||||||
HVP III | South Carolina | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 15 | |||||||||||||||||
HVP III | Tennessee | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Number of self-storage facilities sold | property | 8 | |||||||||||||||||
HVP III | 2019 Acquisitions | ||||||||||||||||||
Self-storage facilities | ||||||||||||||||||
Cash paid for acquisition | $ 120,000,000 | |||||||||||||||||
Amount of escrowed proceeds from sale of assets | $ 8,300,000 |
INVESTMENT ACTIVITY - Component
INVESTMENT ACTIVITY - Components contemplated in the acquisition of LAACO (Details) - LAACO - 2021 Acquisitions - USD ($) $ / shares in Units, $ in Thousands | Dec. 09, 2021 | Dec. 31, 2021 |
Capitalized costs: | ||
LAACO partnership units (1) | $ 1,648,426 | |
Long-term debt assumed and repaid at closing | 40,880 | |
Assets acquisition cost | 16,807 | |
Other transaction costs (3) | 13,407 | |
Total capitalized costs | 1,719,520 | |
Payments and anticipated payments to LAACO management (expensed) (2) | 25,144 | |
Total costs contemplated | 1,744,664 | |
Estimated fair value of club operations | $ 46,800 | |
Outstanding partnership unit purchased (in shares) | 167,557 | |
Partnership units (dollars per share) | $ 9,838 | |
Other income (expense) | ||
Capitalized costs: | ||
Payments and anticipated payments to LAACO management (expensed) (2) | $ 14,800 |
INVESTMENT ACTIVITY - Accountin
INVESTMENT ACTIVITY - Accounting for LAACO acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Significant Acquisitions and Disposals [Line Items] | ||||
Storage facilities, net | $ 6,097,670 | $ 4,505,814 | $ 3,774,485 | |
Cash and cash equivalents | 11,140 | 3,592 | ||
Investment in real estate ventures, at equity | 119,751 | 92,071 | ||
Assets held for sale | 49,313 | |||
Other assets, net | 265,705 | 170,753 | ||
Accounts payable, accrued expenses and other liabilities | (199,985) | (159,140) | ||
Deferred revenue | (37,144) | (29,087) | ||
Security deposits | (1,065) | $ (1,077) | ||
Liabilities held for sale | $ (2,502) | |||
LAACO | 2021 Acquisitions | ||||
Significant Acquisitions and Disposals [Line Items] | ||||
Storage facilities, net | $ 1,517,243 | |||
Cash and cash equivalents | 18,291 | |||
Investment in real estate ventures, at equity | 35,737 | |||
Assets held for sale | 50,435 | |||
Other assets, net | 143,599 | |||
Accounts payable, accrued expenses and other liabilities | (38,350) | |||
Deferred revenue | (3,764) | |||
Security deposits | (36) | |||
Liabilities held for sale | (3,635) | |||
Total | $ 1,719,520 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Details) $ in Thousands | Oct. 05, 2021USD ($)facility | Feb. 05, 2021USD ($) | Sep. 29, 2020USD ($) | Mar. 19, 2020USD ($)facility | Oct. 07, 2019USD ($) | Jun. 06, 2019property | Jun. 05, 2019USD ($)itemproperty | Sep. 05, 2018USD ($)facility | Dec. 31, 2021USD ($)propertyfacility | Dec. 31, 2020USD ($)property | Dec. 31, 2019USD ($) | Dec. 09, 2021facility | Mar. 17, 2021 | Jan. 21, 2021USD ($) |
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 119,751 | $ 92,071 | ||||||||||||
Equity method investment, difference between carrying amount and underlying equity | 33,600 | |||||||||||||
Acquisitions of storage facilities | 151,547 | 417,988 | $ 117,998 | |||||||||||
Credit facility, outstanding | 209,900 | 117,800 | ||||||||||||
Investment in joint venture | 5,000 | |||||||||||||
ASSETS | ||||||||||||||
Storage facilities, net | 6,097,670 | 4,505,814 | 3,774,485 | |||||||||||
Total assets | 6,548,079 | 4,778,142 | ||||||||||||
Equity | ||||||||||||||
CubeSmart | 2,871,563 | 1,832,216 | ||||||||||||
Joint venture partners | 18,597 | 8,632 | ||||||||||||
Total liabilities and equity | 6,548,079 | 4,778,142 | ||||||||||||
Total revenues | 822,564 | 679,177 | 643,915 | |||||||||||
Gains from sales of real estate, net | 32,698 | 6,710 | 1,508 | |||||||||||
Net income | 230,813 | 167,611 | 170,771 | |||||||||||
Company's share of net (loss) income | $ 25,275 | 178 | 11,122 | |||||||||||
HVP V | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 5 | |||||||||||||
Amount of loan obtained | $ 80,600 | |||||||||||||
HVP V | SOFR | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Interest rate (as percentage) | 2.05% | |||||||||||||
HVPSE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 4,541 | $ 5,015 | ||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | |||||||||||||
Number of storage facilities owned by investee | property | 14 | 14 | ||||||||||||
Acquisitions of storage facilities | $ 135,300 | |||||||||||||
Intangible value of the in-place leases | 7,700 | |||||||||||||
HVPSE | Term Loan Facility | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Interest rate (as percentage) | 1.60% | |||||||||||||
Proceeds from debt | $ 81,600 | |||||||||||||
HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in joint venture | $ 32,000 | |||||||||||||
Amount of debt repaid | 137,700 | |||||||||||||
HVP IV | Secured Debt Due April 2025 | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Maximum borrowing capacity | $ 221,600 | |||||||||||||
HVP IV | LIBOR | Secured Debt Due April 2025 | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Interest rate (as percentage) | 1.95% | |||||||||||||
HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Outstanding debt | $ 45,000 | |||||||||||||
HHFNE | LIBOR | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Interest rate (as percentage) | 1.20% | |||||||||||||
HHF | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Net proceeds from sale of assets | $ 85,000 | |||||||||||||
Equity | ||||||||||||||
Gains from sales of real estate, net | $ 46,900 | |||||||||||||
HHF | Secured loan 3.59% due April 30, 2021 | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Amount of debt repaid | $ 100,000 | |||||||||||||
HHF | Secured loan 2.58% due on February 05, 2028 | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Amount of loan obtained | $ 105,000 | |||||||||||||
Interest on real estate venture debt | 2.58% | |||||||||||||
HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | |||||||||||||
Ownership interest held by the entity (as a percent) | 90.00% | |||||||||||||
Number of storage facilities owned by investee | property | 18 | |||||||||||||
Number of assets sold | property | 50 | |||||||||||||
Net proceeds from sale of assets | $ 82,900 | |||||||||||||
Aggregate sale price | $ 293,500 | |||||||||||||
Number of mortgage loans | item | 5 | |||||||||||||
Equity | ||||||||||||||
Gains from sales of real estate, net | $ 106,700 | |||||||||||||
HVP III | Term Loan Facility | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Outstanding debt | 22,900 | |||||||||||||
HVP III | Credit Facility | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Credit facility, outstanding | 179,500 | |||||||||||||
Maximum borrowing capacity | $ 185,500 | |||||||||||||
Arizona | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 2 | |||||||||||||
New York | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Cash paid for acquisition of remaining interest in real estate ventures | $ 1,000 | |||||||||||||
New York | HVP V | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 1 | |||||||||||||
Maryland | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 2 | |||||||||||||
Michigan | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 17 | |||||||||||||
Connecticut | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 3 | |||||||||||||
Connecticut | HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 3 | |||||||||||||
Massachusetts | HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 6 | |||||||||||||
Minnesota | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 1 | |||||||||||||
Rhode Island | HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 2 | |||||||||||||
Vermont | HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 2 | |||||||||||||
Tennessee | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 8 | |||||||||||||
New Jersey | HVP V | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 2 | |||||||||||||
Illinois | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 5 | |||||||||||||
Florida | HVP V | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | facility | 2 | |||||||||||||
Florida | HVPSE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 2 | |||||||||||||
Florida | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 4 | |||||||||||||
Florida | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 3 | |||||||||||||
Texas | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Aggregate sale price | $ 4,100 | |||||||||||||
Equity | ||||||||||||||
Gains from sales of real estate, net | $ 1,500 | |||||||||||||
Texas | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 8 | |||||||||||||
Texas | HHF | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 27 | |||||||||||||
Number of assets sold | facility | 7 | |||||||||||||
North Carolina | HHF | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 1 | |||||||||||||
North Carolina | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 3 | |||||||||||||
South Carolina | HVPSE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 4 | |||||||||||||
South Carolina | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 15 | |||||||||||||
Georgia | HVPSE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 8 | |||||||||||||
Georgia | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 2 | |||||||||||||
Georgia | HVP III | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of assets sold | property | 4 | |||||||||||||
Pennsylvania | HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of storage facilities owned by investee | property | 1 | |||||||||||||
Ventures | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 119,751 | $ 92,071 | ||||||||||||
Number of storage facilities owned by investee | property | 90 | 83 | ||||||||||||
ASSETS | ||||||||||||||
Storage facilities, net | $ 850,250 | $ 662,833 | ||||||||||||
Other assets | 34,760 | 18,112 | ||||||||||||
Total assets | 885,010 | 680,945 | ||||||||||||
LIABILITIES AND CAPITAL | ||||||||||||||
Debt | 526,972 | 359,985 | ||||||||||||
Other liabilities | 14,500 | 11,588 | ||||||||||||
Equity | ||||||||||||||
CubeSmart | 86,083 | 92,071 | ||||||||||||
Joint venture partners | 257,455 | 217,301 | ||||||||||||
Total liabilities and equity | 885,010 | 680,945 | ||||||||||||
Total revenues | 88,449 | 67,239 | 72,582 | |||||||||||
Operating expenses | (37,967) | (30,755) | (32,134) | |||||||||||
Other expenses | (1,138) | (430) | (3,227) | |||||||||||
Interest expense, net | (12,031) | (11,585) | (14,927) | |||||||||||
Depreciation and amortization | (37,805) | (33,086) | (30,107) | |||||||||||
Gains from sales of real estate, net | 46,966 | 106,667 | ||||||||||||
Net income | 46,474 | (8,617) | 98,854 | |||||||||||
Company's share of net (loss) income | 25,275 | 178 | $ 11,122 | |||||||||||
Fontana | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 14,225 | |||||||||||||
Ownership interest in partnership (as a percent) | 50.00% | 50.00% | ||||||||||||
Equity method investment, difference between carrying amount and underlying equity | $ 13,500 | |||||||||||||
Number of storage facilities owned by investee | 1 | 1 | ||||||||||||
RCSS | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 21,536 | |||||||||||||
Ownership interest in partnership (as a percent) | 50.00% | 50.00% | ||||||||||||
Equity method investment, difference between carrying amount and underlying equity | $ 20,100 | |||||||||||||
Number of storage facilities owned by investee | property | 1 | |||||||||||||
HVP V | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 16,080 | |||||||||||||
Ownership interest in partnership (as a percent) | 20.00% | 20.00% | ||||||||||||
Number of storage facilities owned by investee | property | 5 | |||||||||||||
Acquisitions of storage facilities | $ 143,700 | |||||||||||||
Intangible value of the in-place leases | 2,200 | |||||||||||||
Contribution To Real Estate Venture | 22,600 | |||||||||||||
HVPSE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Contribution To Real Estate Venture | $ 5,600 | |||||||||||||
HVP IV | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 23,223 | $ 21,760 | ||||||||||||
Ownership interest in partnership (as a percent) | 20.00% | |||||||||||||
Number of storage facilities owned by investee | property | 28 | 21 | ||||||||||||
HHFNE | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 1,291 | $ 1,628 | ||||||||||||
Ownership interest in partnership (as a percent) | 10.00% | |||||||||||||
Number of storage facilities owned by investee | property | 13 | 13 | ||||||||||||
Investment in joint venture | $ 3,800 | |||||||||||||
HHF | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Investment in real estate entities | $ 38,855 | $ 63,668 | ||||||||||||
Ownership interest in partnership (as a percent) | 50.00% | |||||||||||||
Number of storage facilities owned by investee | property | 28 | 35 | ||||||||||||
Capital Storage Partners, LLC | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 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 | facility | 4 | |||||||||||||
Capital Storage Partners, LLC | Texas | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 13 | |||||||||||||
Capital Storage Partners, LLC | Oklahoma | ||||||||||||||
Investment in Unconsolidated Real Estate Venture | ||||||||||||||
Number of self-storage facilities acquired | facility | 5 |
UNSECURED SENIOR NOTES (Details
UNSECURED SENIOR NOTES (Details) $ in Thousands | Dec. 23, 2021USD ($) | Nov. 30, 2021USD ($) | Apr. 04, 2017USD ($) | Oct. 26, 2015USD ($) | Dec. 17, 2013USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Jan. 24, 2019USD ($) |
Mortgage loans and Notes payable | ||||||||
Less: Loan procurement costs, net | $ (2,322) | $ (3,275) | ||||||
Total unsecured senior notes, net | 2,768,209 | 2,030,372 | ||||||
Loss on early extinguishment of debt | (20,328) | (18,020) | ||||||
CubeSmart, L.P. and Subsidiaries | ||||||||
Mortgage loans and Notes payable | ||||||||
Less: Loan procurement costs, net | (2,322) | (3,275) | ||||||
Total unsecured senior notes, net | 2,768,209 | 2,030,372 | ||||||
Loss on early extinguishment of debt | (20,328) | (18,020) | ||||||
Senior Notes | ||||||||
Mortgage loans and Notes payable | ||||||||
Senior notes, principal amount | 2,800,000 | 2,050,000 | ||||||
Less: Discount on issuance of notes, net | (13,455) | (7,470) | ||||||
Less: Loan procurement costs, net | (18,336) | (12,158) | ||||||
Total unsecured senior notes, net | $ 2,768,209 | 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 December 15, 2023 | ||||||||
Mortgage loans and Notes payable | ||||||||
Senior notes, principal amount | 300,000 | $ 300,000 | ||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | |||
Effective interest rate (as a percent) | 4.33% | |||||||
Effective weighted average interest rate (as a percent) | 3.495% | 4.501% | 4.33% | |||||
Proceeds from senior notes | $ 50,000 | $ 250,000 | ||||||
Repayment of outstanding debt | $ 300,000 | |||||||
Loss on early extinguishment of debt | 20,300 | |||||||
Prepayment penalty on early extinguishment of debt | 20,000 | |||||||
Loan procurement amortization expense - early repayment of debt | $ 300 | |||||||
Debt instrument, redemption percentage | 105.04% | 98.995% | ||||||
Senior notes 4.000% due 2025 | ||||||||
Mortgage loans and Notes payable | ||||||||
Senior notes, principal amount | $ 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 2.250 % Due 2028 | ||||||||
Mortgage loans and Notes payable | ||||||||
Senior notes, principal amount | $ 550,000 | |||||||
Interest rate (as a percent) | 2.25% | 2.25% | ||||||
Effective interest rate (as a percent) | 2.33% | |||||||
Proceeds from senior notes | $ 550,000 | |||||||
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% | |||||||
Senior Notes 2.500 % Due 2032 | ||||||||
Mortgage loans and Notes payable | ||||||||
Senior notes, principal amount | $ 500,000 | |||||||
Interest rate (as a percent) | 2.50% | 2.50% | ||||||
Effective interest rate (as a percent) | 2.50% | 2.59% | ||||||
Proceeds from senior notes | $ 500,000 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Details) - USD ($) $ in Thousands | Jun. 19, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 05, 2014 |
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||
Loan procurement costs capitalized | $ 50,100 | $ 38,100 | ||
Loan procurement costs, net of amortization | 2,322 | 3,275 | ||
Less: Loan procurement costs, net | (2,322) | $ (3,275) | ||
Term Loan | ||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||
Write off of unamortized cost | $ 100 | |||
Revolver | ||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||
Remaining borrowing capacity | 539,500 | |||
Outstanding letter of credit | $ 600 | |||
Interest rate (as a percent) | 1.20% | |||
Term Loan Facility | Term Loan A | ||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||||
Maximum borrowing capacity | $ 100,000 | |||
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% |
MORTGAGE LOANS AND NOTES PAYA_3
MORTGAGE LOANS AND NOTES PAYABLE - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Mortgage loans and Notes payable | |||
Less: Loan procurement costs, net | $ (2,322) | $ (3,275) | |
Total mortgage loans and notes payable | 167,676 | 216,504 | |
Net book value of self-storage facilities | 6,097,670 | 4,505,814 | $ 3,774,485 |
Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | 156,385 | 202,768 | |
Plus: Unamortized fair value adjustment | 12,981 | 15,879 | |
Less: Loan procurement costs, net | (1,690) | (2,143) | |
Total mortgage loans and notes payable | 167,676 | 216,504 | |
Net book value of self-storage facilities used to secure debt | $ 450,700 | 539,200 | |
Bronx IX, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | 21,030 | ||
Effective interest rate (as a percent) | 4.85% | ||
Bronx X, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | 23,148 | ||
Effective interest rate (as a percent) | 4.64% | ||
Nashville V, TN | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 2,206 | 2,261 | |
Effective interest rate (as a percent) | 3.85% | ||
New York, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 29,340 | 29,981 | |
Effective interest rate (as a percent) | 3.51% | ||
Annapolis I, MD | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 5,099 | 5,283 | |
Effective interest rate (as a percent) | 3.78% | ||
Brooklyn XV, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 15,423 | 15,713 | |
Effective interest rate (as a percent) | 2.15% | ||
Long Island City IV, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 12,580 | 12,852 | |
Effective interest rate (as a percent) | 2.15% | ||
Long Island City II, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 18,714 | 19,094 | |
Effective interest rate (as a percent) | 2.25% | ||
Long Island City III, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 18,723 | 19,106 | |
Effective interest rate (as a percent) | 2.25% | ||
Flushing II, NY | Mortgage Loans | |||
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
Less: Loan procurement costs, net | $ (2,322) | $ (3,275) |
Total mortgage loans and notes payable, net | 167,676 | 216,504 |
Mortgage Loans | ||
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
2022 | 2,426 | |
2023 | 32,591 | |
2024 | 32,329 | |
2025 | 979 | |
2026 | 33,760 | |
2027 and thereafter | 54,300 | |
Total mortgage payments | 156,385 | 202,768 |
Plus: Unamortized fair value adjustment | 12,981 | 15,879 |
Less: Loan procurement costs, net | (1,690) | (2,143) |
Total mortgage loans and notes payable, net | $ 167,676 | $ 216,504 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in accumulated other comprehensive income by component | |||
Balance | $ 1,840,848 | $ 1,807,336 | $ 1,716,449 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 232 | ||
Unrealized gains on interest rate swaps | 232 | ||
Reclassification of realized losses on interest rate swaps | 81 | 81 | 70 |
Balance | 2,890,160 | 1,840,848 | 1,807,336 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Changes in accumulated other comprehensive income by component | |||
Balance | (656) | (737) | |
Reclassification of realized losses on interest rate swaps | 81 | 81 | |
Balance | (575) | (656) | (737) |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income by component | |||
Balance | (632) | (729) | (1,029) |
Balance | (570) | (632) | $ (729) |
AOCI Attributable to Noncontrolling Interest | |||
Changes in accumulated other comprehensive income by component | |||
Balance | 24 | ||
Balance | $ 5 | $ 24 |
RISK MANAGEMENT AND USE OF FI_2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Jan. 24, 2019 | Dec. 31, 2021 | Dec. 31, 2019 | Dec. 23, 2021 | Dec. 31, 2020 | Dec. 24, 2018 | Apr. 04, 2017 | Dec. 17, 2013 |
Derivative financial instruments | ||||||||
Settlement of hedge transactions | $ 807 | |||||||
Amount estimated to be reclassified as an increase to interest expense | $ 100 | |||||||
Loss Reclassified from Accumulated OCI into Income | $ 100 | |||||||
CubeSmart, L.P. and Subsidiaries | ||||||||
Derivative financial instruments | ||||||||
Settlement of hedge transactions | $ 807 | |||||||
Senior notes 4.375% due December 15, 2023 | ||||||||
Derivative financial instruments | ||||||||
Senior notes, principal amount | $ 300,000 | $ 300,000 | ||||||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | 4.375% | 4.375% | |||
Designated as an accounting hedge | Cash flow | Interest rate swap | ||||||||
Derivative financial instruments | ||||||||
Notional Amount | $ 150,000 | |||||||
Settlement of hedge transactions | $ 800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 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 | 3,145,785 | 2,364,676 |
Estimated fair value of total debt | $ 3,256,128 | $ 2,571,300 |
NONCONTROLLING INTERESTS - Inte
NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands | Aug. 17, 2021USD ($) | Apr. 16, 2021USD ($) | Mar. 31, 2021facility | Dec. 31, 2021USD ($)facility | Dec. 31, 2020USD ($) |
Variable Interest Entity [Line Items] | |||||
Total assets | $ 6,548,079 | $ 4,778,142 | |||
Total liabilities | 3,549,699 | 2,687,880 | |||
VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 149,526 | ||||
Total liabilities | 50,987 | ||||
Astoria Investors, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Amount of mortgage loan commitment | $ 27,100 | ||||
Astoria Investors, LLC | Texas | |||||
Variable Interest Entity [Line Items] | |||||
Payments to acquire land for development | $ 20,000 | ||||
Astoria Investors, LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 21,020 | ||||
Total liabilities | 25 | ||||
CS Vienna LLC | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of mortgage loans | 13,200 | ||||
Amount of mortgage loan commitment | 17,000 | ||||
CS Vienna LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 25,667 | ||||
Total liabilities | 14,497 | ||||
CS 750 W Merrick Rd LLC | |||||
Variable Interest Entity [Line Items] | |||||
Option to put ownership interest in the venture | 17,100 | ||||
Option to call ownership interest of another member | 17,100 | ||||
Accretion Liability | 14,700 | ||||
CS 750 W Merrick Rd LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 31,050 | ||||
Total liabilities | 16,656 | ||||
CS Valley Forge Village Storage LLC | |||||
Variable Interest Entity [Line Items] | |||||
Carrying amount of mortgage loans | 13,700 | ||||
CS Valley Forge Village Storage LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 21,128 | ||||
Total liabilities | 14,050 | ||||
SH3, LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 38,922 | ||||
Total liabilities | 192 | ||||
C S Lock Up Anoka LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | 11,739 | ||||
Total liabilities | $ 5,567 | ||||
Merrick Road LLC and Hempstead LLC | |||||
Variable Interest Entity [Line Items] | |||||
Period of option to call ownership interest of another member | 1 year | ||||
Period of Option to Put Ownership Interest in Venture | 2 years | ||||
Initiation period for the call option | 12 months | ||||
Ventures | |||||
Variable Interest Entity [Line Items] | |||||
Total assets | $ 885,010 | $ 680,945 | |||
VIE | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 6 | ||||
VIE | Astoria Investors, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 70.00% | 70.00% | |||
Contribution To Real Estate Venture | $ 14,700 | ||||
VIE | CS Vienna LLC | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 72.00% | ||||
VIE | CS 750 W Merrick Rd LLC | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 51.00% | ||||
VIE | CS Valley Forge Village Storage LLC | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 70.00% | ||||
VIE | SH3, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 2 | 1 | |||
Ownership interest held by the entity (as a percent) | 90.00% | ||||
VIE | C S Lock Up Anoka LLC | |||||
Variable Interest Entity [Line Items] | |||||
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 | ||||
Carrying amount of mortgage loans | 5,500 | ||||
Amount of mortgage loan commitment | 6,100 | ||||
Payments to acquire land for development | $ 12,000 |
NONCONTROLLING INTERESTS - Oper
NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) $ in Thousands | Sep. 29, 2020USD ($)shares | Dec. 16, 2019USD ($)shares | Dec. 31, 2020USD ($)itemshares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Operating Partnership Ownership | ||||||
OP Units outstanding which are not owned by the general partner (as a percent) | 3.60% | 0.80% | 3.60% | |||
OP units redeemed | shares | 5,500,000 | 100,000 | 80,000 | |||
OP units outstanding (in shares) | shares | 7,420,828 | 1,901,595 | 7,420,828 | 1,972,308 | ||
Adjustment for noncontrolling interests in the Operating Partnership | $ (164,109) | $ (4,230) | $ (5,918) | |||
Acquisition of noncontrolling interest | $ 3,397 | 35,777 | ||||
California | ||||||
Operating Partnership Ownership | ||||||
OP units issued (in shares) | shares | 106,738 | |||||
Issuance of OP Shares | $ 3,600 | |||||
Total consideration | 18,500 | |||||
Cash paid for acquisition | $ 14,900 | |||||
New York | ||||||
Operating Partnership Ownership | ||||||
Acquisition of noncontrolling interest | $ 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 real estate property acquisition tranches | item | 2 | |||||
Units issued (in shares) | shares | 5,272,023 | |||||
Units issued | $ 175,100 | |||||
CubeSmart, L.P. and Subsidiaries | ||||||
Operating Partnership Ownership | ||||||
OP units outstanding (in shares) | shares | 7,420,828 | 1,901,595 | 7,420,828 | |||
Adjustment for noncontrolling interests in the Operating Partnership | $ (164,109) | $ (4,230) | (5,918) | |||
Acquisition of noncontrolling interest | $ 3,397 | $ 35,777 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
LEASES | ||
Lessor, Administrative and late fees income | $ 21,300 | $ 20,000 |
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 | $ 54,741 | $ 55,302 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating lease liabilities | $ 54,018 | $ 53,595 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted-average remaining lease term - operating leases | 34 years | 34 years 9 months 18 days |
Weighted-average discount rate - operating leases | 4.46% | 4.46% |
Operating lease amount paid | $ 2,513 | $ 2,186 |
Maximum | ||
LEASES | ||
Operating lease term (in years) | 43 years | |
Operating lease renewal term (in years) | 69 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease information | ||
Amortization of finance lease right of-of-use assets | $ 964 | $ 49 |
Interest expense related to finance lease liabilities | 2,139 | 64 |
Operating lease cost | 3,278 | 2,856 |
Short-term lease cost | 1,173 | 1,114 |
Total lease cost | 7,554 | 4,083 |
Operating cash outflows for finance leases | 1,938 | |
Operating cash outflows for operating leases | 2,513 | 2,186 |
Total cash outflows for lease liability measurement | $ 4,451 | $ 2,186 |
Automobiles | ||
Lease information | ||
Lease term | 12 months |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Lease information | ||
Finance leases - Right-of-use assets | $ 40,932 | $ 41,896 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Real Estate Investment Property, at Cost | Real Estate Investment Property, at Cost |
Finance lease liabilities | $ 65,801 | $ 65,599 |
Operating leases - Right-of-use assets | $ 54,741 | $ 55,302 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating lease liabilities | $ 54,018 | $ 53,595 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted-average remaining lease term - finance leases | 42 years 6 months | 43 years 6 months |
Weighted-average remaining lease term - operating leases | 34 years | 34 years 9 months 18 days |
Weighted-average discount rate - finance leases | 3.25% | 3.25% |
Weighted-average discount rate - operating leases | 4.46% | 4.46% |
LEASES - Future Operating Lease
LEASES - Future Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Future operating lease liability maturities | ||
2022 | $ 2,667 | |
2023 | 2,719 | |
2024 | 2,569 | |
2025 | 2,568 | |
2026 | 2,644 | |
2027 and thereafter | 97,655 | |
Total operating lease payments | 110,822 | |
Less: Imputed interest | (56,804) | |
Operating lease liabilities | 54,018 | $ 53,595 |
Operating lease amount paid | 2,513 | 2,186 |
Future finance lease liability maturities | ||
2022 | 2,182 | |
2023 | 2,183 | |
2024 | 2,183 | |
2025 | 2,224 | |
2026 | 2,334 | |
2027 and thereafter | 120,598 | |
Total lease payments | 131,704 | |
Less: Imputed interest | (65,903) | |
Finance lease liabilities | $ 65,801 | $ 65,599 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Joint ventures related to affiliated real estate investments - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS | |||
Management fees | $ 4.9 | $ 3.8 | $ 4 |
Amounts due to the Company from related parties | 15.4 | 13.1 | |
Mortgage loans receivable from consolidated joint ventures | 32.4 | 21.4 | |
Acquisition fees | $ 1.3 | $ 0.7 | $ 2.1 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Insurance Recoveries (Details) $ in Millions | Dec. 31, 2021USD ($)facility |
COMMITMENTS AND CONTINGENCIES | |
Number of self-storage units under development | facility | 3 |
Future milestone payments | $ | $ 37.3 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share Options | ||||
Assumptions used for estimating the fair value of share options | ||||
Risk-free interest rate (as a percent) | 0.60% | 1.90% | 2.70% | |
Expected dividend yield (as a percent) | 3.80% | 3.90% | 3.90% | |
Volatility (as a percent) | 25.00% | 20.00% | 32.00% | |
Weighted average expected life of the options | 6 years | 6 years | 6 years | |
Weighted average grant date fair value of options granted per share (in dollars per share) | $ 4.62 | $ 3.66 | $ 6.35 | |
Term | 10 years | 10 years | 10 years | |
Share options, additional general disclosures | ||||
Compensation expense recognized (in dollars) | $ 2,300,000 | $ 2,000,000 | $ 1,800,000 | |
Vesting period | 3 years | |||
Unrecognized compensation cost | $ 2,500,000 | |||
Unrecognized compensation cost recorded, period | 1 year 8 months 12 days | |||
Number of Shares Under Option | ||||
Balance at the beginning of the period (in shares) | 2,118,090 | |||
Options granted (in shares) | 592,456 | |||
Options canceled (in shares) | (27,743) | |||
Options exercised (in shares) | (418,999) | |||
Balance at the end of the period (in shares) | 2,263,804 | 2,118,090 | ||
Vested or expected to vest at the end of the period (in shares) | 2,263,804 | |||
Exercisable at the end of the period (in shares) | 1,202,882 | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ 26.37 | |||
Options granted (in dollars per share) | 33.70 | |||
Options canceled (in dollars per share) | 32.33 | |||
Options exercised (in dollars per share) | 18.77 | |||
Balance at the end of the period (in dollars per share) | 29.63 | $ 26.37 | ||
Vested or expected to vest at the end of the period (in dollars per share) | 29.63 | |||
Exercisable at the end of the period (in dollars per share) | $ 27.17 | |||
Weighted Average Remaining Contractual Term | ||||
Balance at the end of the period | 6 years 9 months 25 days | 6 years 4 months 20 days | ||
Options granted | 9 years 3 days | |||
Options canceled | 0 years | |||
Options exercised | 3 years 29 days | |||
Vested or expected to vest at the end of the period | 6 years 9 months 25 days | |||
Exercisable at the end of the period | 5 years 4 months 13 days | |||
Aggregate intrinsic value | ||||
Options, exercisable (in dollars) | $ 35,800,000 | |||
Options, vested or expected to vest and exercisable (in dollars) | 61,800,000 | |||
Options exercised (in dollars) | $ 10,600,000 | $ 900,000 | $ 9,100,000 | |
Restricted Shares | Minimum | ||||
Share options, additional general disclosures | ||||
Vesting period | 3 years | |||
Restricted Shares | Maximum | ||||
Share options, additional general disclosures | ||||
Vesting period | 5 years | |||
Performance Shares | ||||
Assumptions used for estimating the fair value of share options | ||||
Term | 3 years | |||
Restricted Stock and Performance Shares | ||||
Assumptions used for estimating the fair value of share options | ||||
Risk-free interest rate (as a percent) | 0.20% | 1.70% | 2.60% | |
Volatility (as a percent) | 28.00% | 19.00% | 23.00% | |
Share options, additional general disclosures | ||||
Compensation expense recognized (in dollars) | $ 5,800,000 | $ 5,200,000 | $ 4,900,000 | |
Unrecognized compensation cost | $ 6,700,000 | |||
Unrecognized compensation cost recorded, period | 2 years | |||
Number of Non-Vested Restricted Shares | ||||
Non-vested at the beginning of the period (in shares) | 382,901 | |||
Granted (in shares) | 176,825 | |||
Vested (in shares) | (160,549) | |||
Forfeited (in shares) | (11,476) | |||
Non-vested at the end of the period (in shares) | 387,701 | 382,901 | ||
Restricted Shares & Performance Units | ||||
Weighted average fair value of restricted shares and performance units granted | $ 39.37 | $ 32.39 | $ 32.22 | |
Total fair value of restricted shares and performance units vested | $ 7 | $ 6.1 | $ 5.8 | |
Plan | ||||
SHARE-BASED COMPENSATION PLANS | ||||
Additional shares authorized | 4,500,000 | |||
Shares reserved for future issuance | 991,117 | |||
Shares available for future awards | 2,448,384 | |||
Percentage of shares that may not be subject to specific limitations | 5.00% | |||
Maximum term of options | 10 years | |||
Plan | Minimum | ||||
Share options, additional general disclosures | ||||
Vesting period | 1 year | |||
Plan | Share Options | ||||
Number of Shares Under Option | ||||
Balance at the end of the period (in shares) | 2,263,804 | |||
Plan | Restricted Shares | ||||
Number of Non-Vested Restricted Shares | ||||
Non-vested at the end of the period (in shares) | 387,701 |
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic and diluted earnings per common share | |||
Net income | $ 230,813 | $ 167,611 | $ 170,771 |
Noncontrolling interests in the Operating Partnership | (7,873) | (1,825) | (1,708) |
Noncontrolling interest in subsidiaries | 542 | (165) | 54 |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 223,482 | $ 165,621 | $ 169,117 |
Weighted average basic shares outstanding (in shares) | 203,832,000 | 194,147,000 | 190,874,000 |
Share options and restricted share units (in shares) | 1,177,000 | 796,000 | 702,000 |
Weighted-average diluted shares outstanding (in shares) | 205,009,000 | 194,943,000 | 191,576,000 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 1.10 | $ 0.85 | $ 0.89 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Basic and diluted earnings per common unit | |||
Noncontrolling interests in the Operating Partnership | $ (7,873) | $ (1,825) | $ (1,708) |
Weighted average basic shares outstanding (in shares) | 203,832,000 | 194,147,000 | 190,874,000 |
Share options and restricted share units (in shares) | 1,177,000 | 796,000 | 702,000 |
Weighted-average diluted shares outstanding (in shares) | 205,009,000 | 194,943,000 | 191,576,000 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 0 | 800,000 | 0 |
Common stock, cash dividends declared (in dollars per share) | $ 1.45 | $ 1.33 | $ 1.29 |
OP units outstanding (in shares) | 1,901,595 | 7,420,828 | 1,972,308 |
Common shares, shares outstanding | 223,917,993 | 197,405,989 | 193,557,024 |
CubeSmart, L.P. and Subsidiaries | |||
Basic and diluted earnings per common share | |||
Net income | $ 230,813 | $ 167,611 | $ 170,771 |
Noncontrolling interests in the Operating Partnership | $ (7,873) | $ (1,825) | $ (1,708) |
Weighted average basic shares outstanding (in shares) | 203,832,000 | 194,147,000 | 190,874,000 |
Share options and restricted share units (in shares) | 1,177,000 | 796,000 | 702,000 |
Weighted-average diluted shares outstanding (in shares) | 205,009,000 | 194,943,000 | 191,576,000 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Basic and diluted earnings per common unit | |||
Net Income | $ 230,813 | $ 167,611 | $ 170,771 |
Noncontrolling interests in the Operating Partnership | (7,873) | (1,825) | (1,708) |
Noncontrolling interest in subsidiaries | 542 | (165) | 54 |
Net income attributable to common unitholders | $ 223,482 | $ 165,621 | $ 169,117 |
Weighted average basic shares outstanding (in shares) | 203,832,000 | 194,147,000 | 190,874,000 |
Share options and restricted share units (in shares) | 1,177,000 | 796,000 | 702,000 |
Weighted-average diluted shares outstanding (in shares) | 205,009,000 | 194,943,000 | 191,576,000 |
Basic earnings per unit attributable to common unitholders | $ 1.10 | $ 0.85 | $ 0.89 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
OP units outstanding (in shares) | 1,901,595 | 7,420,828 |
EARNINGS PER SHARE AND UNIT A_4
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Nov. 19, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Issuance of Common and Preferred Shares | ||||
Net proceeds after deducting offering costs | $ 965,638 | $ 120,727 | $ 196,304 | |
Net proceeds from sale of common shares | $ 965,638 | $ 120,727 | $ 196,304 | |
Over-Allotment Option | ||||
Issuance of Common and Preferred Shares | ||||
Public offering price | $ 51 | |||
Net proceeds after deducting offering costs | $ 765,600 | |||
Number of common stock sold (in shares) | 15,500 | |||
Equity Distribution Agreements | Maximum | ||||
Issuance of Common and Preferred Shares | ||||
Number of shares that may be sold | 60,000 | |||
Common Shares | Equity Distribution Agreements | ||||
Issuance of Common and Preferred Shares | ||||
Number of common stock sold (in shares) | 4,982 | 3,627 | 5,899 | |
Average sales price per common share (in dollars per share) | $ 40.57 | $ 33.69 | $ 33.64 | |
Net proceeds from sale of common shares | $ 199,977 | $ 120,727 | $ 196,304 | |
Common shares remained available for issuance | 5,900 | 10,900 | 4,600 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | 2 Months Ended |
Feb. 23, 2022USD ($) | |
Subsequent event | Self storage property in Maryland | |
Subsequent Events | |
Aggregate purchase price | $ 32 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)ft²property | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 607 |
Area of facility (in square feet) | ft² | 43,594,665 |
Encumbrances | $ 156,385 |
Initial cost | |
Land | 1,533,062 |
Building and Improvements | 5,285,058 |
Costs Subsequent to Acquisition | 412,719 |
Gross Carrying Amount at year end | |
Land | 1,565,463 |
Building and Improvements | 5,368,383 |
Total | 6,933,846 |
Accumulated Depreciation | $ 1,033,869 |
Minimum | |
Gross Carrying Amount at year end | |
Estimated useful lives | 5 years |
Maximum | |
Gross Carrying Amount at year end | |
Estimated useful lives | 39 years |
Arizona | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 48 |
Area of facility (in square feet) | ft² | 3,070,755 |
Initial cost | |
Land | $ 98,442 |
Building and Improvements | 389,514 |
Costs Subsequent to Acquisition | 23,213 |
Gross Carrying Amount at year end | |
Land | 99,495 |
Building and Improvements | 397,612 |
Total | 497,107 |
Accumulated Depreciation | $ 38,951 |
California | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 63 |
Area of facility (in square feet) | ft² | 4,741,051 |
Initial cost | |
Land | $ 371,460 |
Building and Improvements | 683,683 |
Costs Subsequent to Acquisition | 33,337 |
Gross Carrying Amount at year end | |
Land | 373,302 |
Building and Improvements | 663,731 |
Total | 1,037,033 |
Accumulated Depreciation | $ 83,657 |
Colorado | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 10 |
Area of facility (in square feet) | ft² | 654,265 |
Initial cost | |
Land | $ 11,812 |
Building and Improvements | 46,755 |
Costs Subsequent to Acquisition | 4,131 |
Gross Carrying Amount at year end | |
Land | 11,787 |
Building and Improvements | 44,903 |
Total | 56,690 |
Accumulated Depreciation | $ 12,426 |
Connecticut | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 22 |
Area of facility (in square feet) | ft² | 1,197,402 |
Initial cost | |
Land | $ 22,023 |
Building and Improvements | 82,375 |
Costs Subsequent to Acquisition | 19,620 |
Gross Carrying Amount at year end | |
Land | 23,568 |
Building and Improvements | 86,979 |
Total | 110,547 |
Accumulated Depreciation | $ 32,682 |
Florida | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 90 |
Area of facility (in square feet) | ft² | 6,801,203 |
Initial cost | |
Land | $ 104,987 |
Building and Improvements | 531,360 |
Costs Subsequent to Acquisition | 88,420 |
Gross Carrying Amount at year end | |
Land | 112,652 |
Building and Improvements | 553,950 |
Total | 666,602 |
Accumulated Depreciation | $ 167,579 |
Georgia | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 21 |
Area of facility (in square feet) | ft² | 1,562,380 |
Initial cost | |
Land | $ 18,394 |
Building and Improvements | 100,856 |
Costs Subsequent to Acquisition | 9,933 |
Gross Carrying Amount at year end | |
Land | 18,518 |
Building and Improvements | 99,513 |
Total | 118,031 |
Accumulated Depreciation | $ 28,392 |
Illinois | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 43 |
Area of facility (in square feet) | ft² | 2,761,024 |
Initial cost | |
Land | $ 54,493 |
Building and Improvements | 221,022 |
Costs Subsequent to Acquisition | 27,543 |
Gross Carrying Amount at year end | |
Land | 54,358 |
Building and Improvements | 224,665 |
Total | 279,023 |
Accumulated Depreciation | $ 64,522 |
Indiana | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 1 |
Area of facility (in square feet) | ft² | 70,380 |
Initial cost | |
Land | $ 1,134 |
Building and Improvements | 5,589 |
Costs Subsequent to Acquisition | 199 |
Gross Carrying Amount at year end | |
Land | 1,134 |
Building and Improvements | 5,783 |
Total | 6,917 |
Accumulated Depreciation | $ 1,374 |
Maryland | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 19 |
Area of facility (in square feet) | ft² | 1,585,705 |
Encumbrances | $ 5,099 |
Initial cost | |
Land | 37,055 |
Building and Improvements | 188,989 |
Costs Subsequent to Acquisition | 13,098 |
Gross Carrying Amount at year end | |
Land | 37,912 |
Building and Improvements | 189,926 |
Total | 227,838 |
Accumulated Depreciation | $ 44,095 |
Massachusetts | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 20 |
Area of facility (in square feet) | ft² | 1,256,014 |
Initial cost | |
Land | $ 31,948 |
Building and Improvements | 159,000 |
Costs Subsequent to Acquisition | 9,476 |
Gross Carrying Amount at year end | |
Land | 32,197 |
Building and Improvements | 163,387 |
Total | 195,584 |
Accumulated Depreciation | $ 27,862 |
Minnesota | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 2 |
Area of facility (in square feet) | ft² | 176,296 |
Initial cost | |
Land | $ 2,621 |
Building and Improvements | 21,655 |
Costs Subsequent to Acquisition | 379 |
Gross Carrying Amount at year end | |
Land | 2,621 |
Building and Improvements | 22,034 |
Total | 24,655 |
Accumulated Depreciation | $ 2,084 |
Nevada | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 22 |
Area of facility (in square feet) | ft² | 1,700,457 |
Initial cost | |
Land | $ 71,702 |
Building and Improvements | 394,023 |
Costs Subsequent to Acquisition | 4,536 |
Gross Carrying Amount at year end | |
Land | 71,703 |
Building and Improvements | 396,643 |
Total | 468,346 |
Accumulated Depreciation | $ 11,695 |
New Jersey | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 28 |
Area of facility (in square feet) | ft² | 1,983,294 |
Initial cost | |
Land | $ 45,864 |
Building and Improvements | 188,139 |
Costs Subsequent to Acquisition | 36,373 |
Gross Carrying Amount at year end | |
Land | 49,372 |
Building and Improvements | 205,843 |
Total | 255,215 |
Accumulated Depreciation | $ 59,133 |
New Mexico | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 3 |
Area of facility (in square feet) | ft² | 182,261 |
Initial cost | |
Land | $ 2,866 |
Building and Improvements | 9,367 |
Costs Subsequent to Acquisition | 1,615 |
Gross Carrying Amount at year end | |
Land | 2,867 |
Building and Improvements | 7,804 |
Total | 10,671 |
Accumulated Depreciation | $ 3,212 |
New York | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 58 |
Area of facility (in square feet) | ft² | 4,593,319 |
Encumbrances | $ 149,080 |
Initial cost | |
Land | 416,337 |
Building and Improvements | 1,300,288 |
Costs Subsequent to Acquisition | 45,488 |
Gross Carrying Amount at year end | |
Land | 428,549 |
Building and Improvements | 1,317,425 |
Total | 1,745,974 |
Accumulated Depreciation | $ 247,167 |
North Carolina | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 9 |
Area of facility (in square feet) | ft² | 611,298 |
Initial cost | |
Land | $ 10,349 |
Building and Improvements | 44,680 |
Costs Subsequent to Acquisition | 6,242 |
Gross Carrying Amount at year end | |
Land | 10,788 |
Building and Improvements | 47,409 |
Total | 58,197 |
Accumulated Depreciation | $ 12,034 |
Ohio | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 20 |
Area of facility (in square feet) | ft² | 1,294,303 |
Initial cost | |
Land | $ 13,529 |
Building and Improvements | 51,265 |
Costs Subsequent to Acquisition | 17,460 |
Gross Carrying Amount at year end | |
Land | 14,938 |
Building and Improvements | 54,746 |
Total | 69,684 |
Accumulated Depreciation | $ 20,461 |
Pennsylvania | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 12 |
Area of facility (in square feet) | ft² | 890,594 |
Initial cost | |
Land | $ 18,769 |
Building and Improvements | 99,196 |
Costs Subsequent to Acquisition | 10,424 |
Gross Carrying Amount at year end | |
Land | 18,723 |
Building and Improvements | 104,434 |
Total | 123,157 |
Accumulated Depreciation | $ 18,784 |
Rhode Island | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 4 |
Area of facility (in square feet) | ft² | 247,305 |
Initial cost | |
Land | $ 3,480 |
Building and Improvements | 17,156 |
Costs Subsequent to Acquisition | 1,574 |
Gross Carrying Amount at year end | |
Land | 3,480 |
Building and Improvements | 18,729 |
Total | 22,209 |
Accumulated Depreciation | $ 4,241 |
South Carolina | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 8 |
Area of facility (in square feet) | ft² | 432,389 |
Initial cost | |
Land | $ 6,117 |
Building and Improvements | 31,039 |
Costs Subsequent to Acquisition | 1,159 |
Gross Carrying Amount at year end | |
Land | 6,117 |
Building and Improvements | 32,199 |
Total | 38,316 |
Accumulated Depreciation | $ 2,387 |
Tennessee | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 9 |
Area of facility (in square feet) | ft² | 755,595 |
Encumbrances | $ 2,206 |
Initial cost | |
Land | 9,117 |
Building and Improvements | 54,403 |
Costs Subsequent to Acquisition | 4,897 |
Gross Carrying Amount at year end | |
Land | 9,117 |
Building and Improvements | 52,047 |
Total | 61,164 |
Accumulated Depreciation | $ 12,905 |
Texas | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 75 |
Area of facility (in square feet) | ft² | 5,358,803 |
Initial cost | |
Land | $ 108,310 |
Building and Improvements | 458,473 |
Costs Subsequent to Acquisition | 31,746 |
Gross Carrying Amount at year end | |
Land | 108,628 |
Building and Improvements | 465,154 |
Total | 573,782 |
Accumulated Depreciation | $ 89,494 |
Utah | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 4 |
Area of facility (in square feet) | ft² | 293,988 |
Initial cost | |
Land | $ 10,763 |
Building and Improvements | 2,844 |
Costs Subsequent to Acquisition | 2,676 |
Gross Carrying Amount at year end | |
Land | 10,622 |
Building and Improvements | 4,102 |
Total | 14,724 |
Accumulated Depreciation | $ 1,800 |
Virginia | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 11 |
Area of facility (in square feet) | ft² | 965,100 |
Initial cost | |
Land | $ 32,731 |
Building and Improvements | 122,391 |
Costs Subsequent to Acquisition | 4,498 |
Gross Carrying Amount at year end | |
Land | 32,732 |
Building and Improvements | 119,686 |
Total | 152,418 |
Accumulated Depreciation | $ 28,717 |
Washington D.C. | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 5 |
Area of facility (in square feet) | ft² | 409,484 |
Initial cost | |
Land | $ 28,759 |
Building and Improvements | 80,996 |
Costs Subsequent to Acquisition | 2,232 |
Gross Carrying Amount at year end | |
Land | 28,803 |
Building and Improvements | 78,709 |
Total | 107,512 |
Accumulated Depreciation | 15,704 |
Other Corporate Assets | |
Initial cost | |
Costs Subsequent to Acquisition | 12,450 |
Gross Carrying Amount at year end | |
Land | 1,480 |
Building and Improvements | 10,970 |
Total | 12,450 |
Accumulated Depreciation | $ 2,511 |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Activity in Storage facilities | |||
Balance at beginning of year | $ 5,489,754 | $ 4,699,844 | $ 4,463,455 |
Acquisitions & improvements | 1,795,965 | 825,247 | 364,324 |
Fully depreciated assets | (52,722) | (83,418) | (81,717) |
Dispositions and other | (19,408) | (8,533) | (3,033) |
Construction in progress, net | (30,095) | 14,718 | (43,185) |
Right-of-use assets - finance leases | 41,896 | ||
Balance at end of year | 7,183,494 | 5,489,754 | 4,699,844 |
Activity in Accumulated depreciation | |||
Balance at beginning of year | 983,940 | 925,359 | 862,487 |
Depreciation expense | 160,933 | 143,952 | 145,233 |
Fully depreciated assets | (52,722) | (83,418) | (81,717) |
Dispositions and other | (6,327) | (1,953) | (644) |
Balance at end of year | 1,085,824 | 983,940 | 925,359 |
Storage properties, net | 6,097,670 | $ 4,505,814 | $ 3,774,485 |
Aggregate cost of real estate investments for federal income tax purposes | $ 7,452,800 |
CONSOLIDATED BALANCE SHEETS (LP
CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Storage properties | $ 7,183,494 | $ 5,489,754 |
Less: Accumulated depreciation | (1,085,824) | (983,940) |
Storage properties, net (including VIE assets of $149,467 and $119,345, respectively) | 6,097,670 | 4,505,814 |
Cash and cash equivalents | 11,140 | 3,592 |
Restricted cash | 2,178 | 2,637 |
Loan procurement costs, net of amortization | 2,322 | 3,275 |
Investment in real estate ventures, at equity | 119,751 | 92,071 |
Assets held for sale | 49,313 | |
Other assets, net | 265,705 | 170,753 |
Total assets | 6,548,079 | 4,778,142 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,768,209 | 2,030,372 |
Revolving credit facility | 209,900 | 117,800 |
Mortgage loans and notes payable, net | 167,676 | 216,504 |
Lease liabilities - finance leases | 65,801 | 65,599 |
Accounts payable, accrued expenses and other liabilities | 199,985 | 159,140 |
Distributions payable | 97,417 | 68,301 |
Deferred revenue | 37,144 | 29,087 |
Security deposits | 1,065 | 1,077 |
Liabilities held for sale | 2,502 | |
Total liabilities | 3,549,699 | 2,687,880 |
Limited Partnership interests of third parties | 108,220 | 249,414 |
Commitments and contingencies | ||
Capital | ||
Accumulated other comprehensive loss | (570) | (632) |
Total liabilities and equity | 6,548,079 | 4,778,142 |
CubeSmart, L.P. and Subsidiaries | ||
ASSETS | ||
Storage properties | 7,183,494 | 5,489,754 |
Less: Accumulated depreciation | (1,085,824) | (983,940) |
Storage properties, net (including VIE assets of $149,467 and $119,345, respectively) | 6,097,670 | 4,505,814 |
Cash and cash equivalents | 11,140 | 3,592 |
Restricted cash | 2,178 | 2,637 |
Loan procurement costs, net of amortization | 2,322 | 3,275 |
Investment in real estate ventures, at equity | 119,751 | 92,071 |
Assets held for sale | 49,313 | |
Other assets, net | 265,705 | 170,753 |
Total assets | 6,548,079 | 4,778,142 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,768,209 | 2,030,372 |
Revolving credit facility | 209,900 | 117,800 |
Mortgage loans and notes payable, net | 167,676 | 216,504 |
Lease liabilities - finance leases | 65,801 | 65,599 |
Accounts payable, accrued expenses and other liabilities | 199,985 | 159,140 |
Distributions payable | 97,417 | 68,301 |
Deferred revenue | 37,144 | 29,087 |
Security deposits | 1,065 | 1,077 |
Liabilities held for sale | 2,502 | |
Total liabilities | 3,549,699 | 2,687,880 |
Limited Partnership interests of third parties | 108,220 | 249,414 |
Commitments and contingencies | ||
Capital | ||
Operating Partner | 2,872,133 | 1,832,848 |
Accumulated other comprehensive loss | (570) | (632) |
Total CubeSmart, L.P. capital | 2,871,563 | 1,832,216 |
Noncontrolling interests in subsidiaries | 18,597 | 8,632 |
Total capital | 2,890,160 | 1,840,848 |
Total liabilities and equity | $ 6,548,079 | $ 4,778,142 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Storage facilities, net | $ 6,097,670 | $ 4,505,814 |
VIE | ||
Storage facilities, net | 149,467 | 119,345 |
CubeSmart, L.P. and Subsidiaries | ||
Storage facilities, net | 6,097,670 | 4,505,814 |
CubeSmart, L.P. and Subsidiaries | VIE | ||
Storage facilities, net | $ 149,467 | $ 119,345 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | |||
Rental income | $ 707,751 | $ 581,009 | $ 552,404 |
Total revenues | 822,564 | 679,177 | 643,915 |
OPERATING EXPENSES | |||
Property operating expenses | 252,104 | 223,634 | 209,739 |
Depreciation and amortization | 232,049 | 156,573 | 163,547 |
General and administrative | 47,809 | 41,423 | 38,560 |
Total operating expenses | 531,962 | 421,630 | 411,846 |
Interest: | |||
Interest expense on loans | (78,448) | (75,890) | (72,525) |
Loan procurement amortization expense | (8,168) | (2,674) | (2,819) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 25,275 | 178 | 11,122 |
Gains from sales of real estate, net | 32,698 | 6,710 | 1,508 |
Other | (10,818) | (240) | 1,416 |
Total other expense | (59,789) | (89,936) | (61,298) |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Operating Partnership interests of third parties | $ (7,873) | $ (1,825) | $ (1,708) |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Weighted-average basic units outstanding (in units) | 203,832 | 194,147 | 190,874 |
Weighted-average diluted units outstanding (in units) | 205,009 | 194,943 | 191,576 |
Other Property Related Income | |||
REVENUES | |||
Property related income | $ 83,605 | $ 70,723 | $ 67,558 |
Property Management Fee Income | |||
REVENUES | |||
Property related income | 31,208 | 27,445 | 23,953 |
CubeSmart, L.P. and Subsidiaries | |||
REVENUES | |||
Rental income | 707,751 | 581,009 | 552,404 |
Total revenues | 822,564 | 679,177 | 643,915 |
OPERATING EXPENSES | |||
Property operating expenses | 252,104 | 223,634 | 209,739 |
Depreciation and amortization | 232,049 | 156,573 | 163,547 |
General and administrative | 47,809 | 41,423 | 38,560 |
Total operating expenses | 531,962 | 421,630 | 411,846 |
Interest: | |||
Interest expense on loans | (78,448) | (75,890) | (72,525) |
Loan procurement amortization expense | (8,168) | (2,674) | (2,819) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 25,275 | 178 | 11,122 |
Gains from sales of real estate, net | 32,698 | 6,710 | 1,508 |
Other | (10,818) | (240) | 1,416 |
Total other expense | (59,789) | (89,936) | (61,298) |
NET INCOME | 230,813 | 167,611 | 170,771 |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Noncontrolling interest in subsidiaries | 542 | (165) | 54 |
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 231,355 | 167,446 | 170,825 |
Operating Partnership interests of third parties | (7,873) | (1,825) | (1,708) |
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 223,482 | $ 165,621 | $ 169,117 |
Basic earnings per unit attributable to common unitholders | $ 1.10 | $ 0.85 | $ 0.89 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.09 | $ 0.85 | $ 0.88 |
Weighted-average basic units outstanding (in units) | 203,832 | 194,147 | 190,874 |
Weighted-average diluted units outstanding (in units) | 205,009 | 194,943 | 191,576 |
CubeSmart, L.P. and Subsidiaries | Other Property Related Income | |||
REVENUES | |||
Property related income | $ 83,605 | $ 70,723 | $ 67,558 |
CubeSmart, L.P. and Subsidiaries | Property Management Fee Income | |||
REVENUES | |||
Property related income | $ 31,208 | $ 27,445 | $ 23,953 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other comprehensive income: | |||
Reclassification of realized losses on interest rate swaps | $ 81 | $ 81 | $ 70 |
Unrealized gains on interest rate swaps | 232 | ||
OTHER COMPREHENSIVE INCOME: | 81 | 81 | 302 |
COMPREHENSIVE INCOME | 230,894 | 167,692 | 171,073 |
Comprehensive income attributable to Operating Partnership interests of third parties | (7,892) | (1,809) | (1,710) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 542 | (165) | 54 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 223,544 | 165,718 | 169,417 |
CubeSmart, L.P. and Subsidiaries | |||
NET INCOME | 230,813 | 167,611 | 170,771 |
Other comprehensive income: | |||
Reclassification of realized losses on interest rate swaps | 81 | 81 | 70 |
Unrealized gains on interest rate swaps | 232 | ||
OTHER COMPREHENSIVE INCOME: | 81 | 81 | 302 |
COMPREHENSIVE INCOME | 230,894 | 167,692 | 171,073 |
Comprehensive income attributable to Operating Partnership interests of third parties | (7,892) | (1,809) | (1,710) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 542 | (165) | 54 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 223,544 | $ 165,718 | $ 169,417 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | $ 249,414 | ||
Contributions from noncontrolling interests in subsidiaries | 11,404 | $ 682 | $ 7,376 |
Distributions paid to noncontrolling interest in subsidiaries | (246) | $ (205) | (188) |
Acquisition of noncontrolling interest in subsidiary | $ (3,397) | $ (40,605) | |
Preferred OP unit redemption (in units) | 5,500,000 | 100,000 | 80,000 |
Partners' Capital Account, Units, Redeemed | 5,500,000 | 100,000 | 80,000 |
Adjustment for Operating Partnership interests of third parties | $ (164,109) | $ (4,230) | $ (5,918) |
Net income (loss) | 222,940 | 165,786 | 169,063 |
Other comprehensive income (loss), net | 62 | 97 | 300 |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | |
Noncontrolling Interests in the Operating Partnership | |||
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | 249,414 | 62,088 | 55,819 |
Issuance of OP units | 186,933 | 3,576 | |
Adjustment for Operating Partnership interests of third parties | 164,109 | 4,230 | 5,918 |
Net income (loss) | 7,873 | 1,825 | 1,708 |
Other comprehensive income (loss), net | 19 | (16) | 2 |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | 62,088 |
CubeSmart, L.P. and Subsidiaries | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 1,840,848 | 1,807,336 | 1,716,449 |
Balance of Noncontrolling Interests in the Operating Partnership | 249,414 | ||
Contributions from noncontrolling interests in subsidiaries | 11,404 | 682 | 7,376 |
Distributions paid to noncontrolling interest in subsidiaries | (246) | (205) | (188) |
Issuance of common OP units | 965,638 | 120,727 | 196,304 |
Acquisition of noncontrolling interest in subsidiary | (3,397) | (40,605) | |
Conversion from OP units to shares | 305,015 | 2,824 | 2,486 |
Exercise of OP unit options | 7,865 | 961 | 3,686 |
Amortization of restricted OP units | 4,941 | 4,502 | 4,487 |
OP unit compensation expense | 2,271 | 1,952 | 1,786 |
Adjustment for Operating Partnership interests of third parties | (164,109) | (4,230) | (5,918) |
Net income (loss) | 222,940 | 165,786 | 169,063 |
Other comprehensive income (loss), net | 62 | 97 | 300 |
Common OP unit distributions | (303,072) | (259,584) | (247,890) |
Balance | 2,890,160 | 1,840,848 | 1,807,336 |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interests in the Operating Partnership | |||
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | 249,414 | 62,088 | 55,819 |
Issuance of OP units | (186,933) | (3,576) | |
Conversion from OP units to shares | (305,015) | (2,824) | (2,486) |
Adjustment for Operating Partnership interests of third parties | 164,109 | 4,230 | 5,918 |
Net income (loss) | 7,873 | 1,825 | 1,708 |
Other comprehensive income (loss), net | 19 | (16) | 2 |
Common OP unit distributions | (8,180) | (2,822) | (2,449) |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | 62,088 |
CubeSmart, L.P. and Subsidiaries | Total Shareholders' Equity | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 1,832,216 | 1,799,346 | 1,709,678 |
Issuance of common OP units | 965,638 | 120,727 | 196,304 |
Acquisition of noncontrolling interest in subsidiary | (2,746) | (34,690) | |
Conversion from OP units to shares | 305,015 | 2,824 | 2,486 |
Exercise of OP unit options | 7,865 | 961 | 3,686 |
Amortization of restricted OP units | 4,941 | 4,502 | 4,487 |
OP unit compensation expense | 2,271 | 1,952 | 1,786 |
Adjustment for Operating Partnership interests of third parties | (164,109) | (4,230) | (5,918) |
Net income (loss) | 223,482 | 165,621 | 169,117 |
Other comprehensive income (loss), net | 62 | 97 | 300 |
Common OP unit distributions | (303,072) | (259,584) | (247,890) |
Balance | 2,871,563 | 1,832,216 | 1,799,346 |
CubeSmart, L.P. and Subsidiaries | Operating Partner | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ 1,832,848 | $ 1,800,075 | $ 1,710,707 |
Balance (in units) | 197,406,000 | 193,557,000 | 187,145,000 |
Issuance of common OP units | $ 965,638 | $ 120,727 | $ 196,304 |
Issuance of common OP units (in units) | 20,508,000 | 3,627,000 | 5,899,000 |
Issuance of restricted OP units (in units) | 66,000 | 60,000 | 52,000 |
Acquisition of noncontrolling interest in subsidiary | $ (2,746) | $ (34,690) | |
Conversion from OP units to shares | $ 305,015 | $ 2,824 | $ 2,486 |
Conversion from OP units to shares (in units) | 5,519,000 | 100,000 | 80,000 |
Exercise of OP unit options | $ 7,865 | $ 961 | $ 3,686 |
Exercise of OP unit options (in units) | 419,000 | 62,000 | 381,000 |
Amortization of restricted OP units | $ 4,941 | $ 4,502 | $ 4,487 |
OP unit compensation expense | 2,271 | 1,952 | 1,786 |
Adjustment for Operating Partnership interests of third parties | (164,109) | (4,230) | (5,918) |
Net income (loss) | 223,482 | 165,621 | 169,117 |
Common OP unit distributions | (303,072) | (259,584) | (247,890) |
Balance | $ 2,872,133 | $ 1,832,848 | $ 1,800,075 |
Balance (in units) | 223,918,000 | 197,406,000 | 193,557,000 |
CubeSmart, L.P. and Subsidiaries | Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ (632) | $ (729) | $ (1,029) |
Other comprehensive income (loss), net | 62 | 97 | 300 |
Balance | (570) | (632) | (729) |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interest in Subsidiaries | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 8,632 | 7,990 | 6,771 |
Contributions from noncontrolling interests in subsidiaries | 11,404 | 682 | 7,376 |
Distributions paid to noncontrolling interest in subsidiaries | (246) | (205) | (188) |
Acquisition of noncontrolling interest in subsidiary | (651) | (5,915) | |
Net income (loss) | (542) | 165 | (54) |
Balance | $ 18,597 | $ 8,632 | $ 7,990 |
CONSOLIDATED STATEMENTS OF EQ_3
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (LP cube) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
CubeSmart, L.P. and Subsidiaries | |||
Common OP unit distributions (in dollars per share) | $ 1.45 | $ 1.33 | $ 1.29 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Activities | |||
Net income | $ 230,813 | $ 167,611 | $ 170,771 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 240,217 | 159,247 | 166,366 |
Non-cash portion of interest expense related to finance leases | 202 | ||
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (25,275) | (178) | (11,122) |
Gains from sales of real estate, net | (32,698) | (6,710) | (1,508) |
Equity compensation expense | 8,088 | 7,140 | 6,694 |
Accretion of fair market value adjustment of debt | (2,037) | (259) | (718) |
Changes in other operating accounts: | |||
Other assets | (9,247) | (9,674) | (6,578) |
Accounts payable and accrued expenses | 14,871 | 13,922 | 6,042 |
Other liabilities | 3,923 | 1,914 | 1,821 |
Net cash provided by operating activities | 449,185 | 351,033 | 331,768 |
Investing Activities | |||
Acquisitions of storage properties | (151,547) | (417,988) | (117,998) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (34,608) | (49,857) | (37,569) |
Development costs | (69,887) | (55,286) | (102,826) |
Cash paid for partner's interest in real estate venture, net of cash, cash equivalents and restricted cash acquired | (117,959) | ||
Investment in real estate ventures | (28,261) | (7,022) | (10,264) |
Cash distributed from real estate ventures | 66,593 | 6,246 | 7,096 |
Proceeds from sale of real estate, net | 44,026 | 12,466 | 3,856 |
Net cash used in investing activities | (1,852,668) | (511,441) | (375,664) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | 696,426 |
Revolving credit facility | 906,571 | 429,085 | 859,313 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (814,471) | (311,285) | (1,158,776) |
Unsecured term loans | (200,000) | ||
Mortgage loans and notes payable | (87,263) | (46,093) | (11,652) |
Loan procurement costs | (12,548) | (3,764) | (6,023) |
Debt prepayment costs | (20,023) | (17,584) | |
Settlement of hedge transactions | (807) | ||
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | (35,777) | |
Cash paid upon vesting of restricted OP units | (876) | (686) | (421) |
Contributions from noncontrolling interests in subsidiaries | 8,031 | 48 | |
Distributions paid to noncontrolling interests in subsidiaries | (246) | (205) | (188) |
Distributions paid to common OP unitholders | (273,839) | (256,253) | (243,859) |
Net cash provided by financing activities | 1,410,572 | 108,196 | 95,855 |
Change in cash, cash equivalents and restricted cash | 7,089 | (52,212) | 51,959 |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 | 6,482 |
Cash, cash equivalents and restricted cash at end of period | 13,318 | 6,229 | 58,441 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 79,148 | 80,792 | 69,283 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (2,623) | ||
Proceeds held in escrow from real estate venture's sale of real estate (see note 4) | 8,288 | ||
Noncash consideration for acquisition of partner's interest in real estate venture (see note 4) | (8,288) | ||
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | 3,574 |
Noncash drawdown on revolving credit facility | 103,938 | ||
Mortgage loan assumptions | 40,880 | 169,056 | |
Repayment of unsecured term loan through noncash drawdown on revolving credit facility | (100,000) | ||
Accretion of put liability | 9,777 | 7,917 | 5,895 |
Derivative valuation adjustment | 81 | 81 | 302 |
Loan procurement costs | (3,770) | ||
Issuance of OP units (see note 4) | 186,933 | 3,576 | |
Acquisition of noncontrolling interest in subsidiary | (4,828) | ||
Contributions from noncontrolling interests in subsidiaries | 3,373 | 682 | 7,328 |
CubeSmart, L.P. and Subsidiaries | |||
Operating Activities | |||
Net income | 230,813 | 167,611 | 170,771 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 240,217 | 159,247 | 166,366 |
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (25,275) | (178) | (11,122) |
Gains from sales of real estate, net | (32,698) | (6,710) | (1,508) |
Equity compensation expense | 8,088 | 7,140 | 6,694 |
Accretion of fair market value adjustment of debt | (2,037) | (259) | (718) |
Changes in other operating accounts: | |||
Other assets | (9,247) | (9,674) | (6,578) |
Accounts payable and accrued expenses | 14,871 | 13,922 | 6,042 |
Other liabilities | 3,923 | 1,914 | 1,821 |
Net cash provided by operating activities | 449,185 | 351,033 | 331,768 |
Investing Activities | |||
Acquisitions of storage properties | (151,547) | (417,988) | (117,998) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (34,608) | (49,857) | (37,569) |
Development costs | (69,887) | (55,286) | (102,826) |
Cash paid for partner's interest in real estate venture, net of cash, cash equivalents and restricted cash acquired | (117,959) | ||
Investment in real estate ventures | (28,261) | (7,022) | (10,264) |
Cash distributed from real estate ventures | 66,593 | 6,246 | 7,096 |
Proceeds from sale of real estate, net | 44,026 | 12,466 | 3,856 |
Net cash used in investing activities | (1,852,668) | (511,441) | (375,664) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | 696,426 |
Revolving credit facility | 906,571 | 429,085 | 859,313 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (814,471) | (311,285) | (1,158,776) |
Unsecured term loans | (200,000) | ||
Mortgage loans and notes payable | (87,263) | (46,093) | (11,652) |
Loan procurement costs | (12,548) | (3,764) | (6,023) |
Debt prepayment costs | (20,023) | (17,584) | |
Settlement of hedge transactions | (807) | ||
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | (35,777) | |
Proceeds from issuance of common OP units | 965,638 | 120,727 | 196,304 |
Cash paid upon vesting of restricted OP units | (876) | (686) | (421) |
Exercise of OP unit options | 7,865 | 961 | 3,686 |
Contributions from noncontrolling interests in subsidiaries | 8,031 | 48 | |
Distributions paid to noncontrolling interests in subsidiaries | (246) | (205) | (188) |
Distributions paid to common OP unitholders | (282,136) | (258,793) | (246,278) |
Net cash provided by financing activities | 1,410,572 | 108,196 | 95,855 |
Change in cash, cash equivalents and restricted cash | 7,089 | (52,212) | 51,959 |
Cash, cash equivalents and restricted cash at beginning of period | 6,229 | 58,441 | 6,482 |
Cash, cash equivalents and restricted cash at end of period | 13,318 | 6,229 | 58,441 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 79,148 | 80,792 | 69,283 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (2,623) | ||
Proceeds held in escrow from real estate venture's sale of real estate (see note 4) | 8,288 | ||
Noncash consideration for acquisition of partner's interest in real estate venture (see note 4) | (8,288) | ||
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | 3,574 |
Noncash drawdown on revolving credit facility | 103,938 | ||
Mortgage loan assumptions | 40,880 | 169,056 | |
Repayment of unsecured term loan through noncash drawdown on revolving credit facility | (100,000) | ||
Accretion of put liability | 9,777 | 7,917 | 5,895 |
Derivative valuation adjustment | (81) | (81) | (302) |
Loan procurement costs | (3,770) | ||
Issuance of OP units (see note 4) | 186,933 | 3,576 | |
Acquisition of noncontrolling interest in subsidiary | (4,828) | ||
Contributions from noncontrolling interests in subsidiaries | $ 3,373 | $ 682 | $ 7,328 |