Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 26, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 001-32324 | |
Entity Registrant Name | CUBESMART | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1024732 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. Malvern | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Title of 12(b) Security | Common Shares, $0.01 par value per share, of CubeSmart | |
Trading Symbol | CUBE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 224,574,686 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001298675 | |
Amendment Flag | false | |
CubeSmart, L.P. and Subsidiaries | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Entity File Number | 000-54462 | |
Entity Registrant Name | CUBESMART, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1837021 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001300485 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Storage properties | $ 7,284,661 | $ 7,183,494 |
Less: Accumulated depreciation | (1,207,230) | (1,085,824) |
Storage properties, net (including VIE assets of $163,299 and $149,467, respectively) | 6,077,431 | 6,097,670 |
Cash and cash equivalents | 5,183 | 11,140 |
Restricted cash | 3,021 | 2,178 |
Loan procurement costs, net of amortization | 1,719 | 2,322 |
Investment in real estate ventures, at equity | 107,755 | 119,751 |
Assets held for sale | 4,264 | 49,313 |
Other assets, net | 171,797 | 265,705 |
Total assets | 6,371,170 | 6,548,079 |
LIABILITIES AND EQUITY | ||
Unsecured senior notes, net | 2,771,315 | 2,768,209 |
Revolving credit facility | 86,000 | 209,900 |
Mortgage loans and notes payable, net | 164,116 | 167,676 |
Lease liabilities - finance leases | 65,764 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 218,181 | 199,985 |
Distributions payable | 97,492 | 97,417 |
Deferred revenue | 40,777 | 37,144 |
Security deposits | 1,035 | 1,065 |
Liabilities held for sale | 2,227 | 2,502 |
Total liabilities | 3,446,907 | 3,549,699 |
Noncontrolling interests in the Operating Partnership | 58,508 | 108,220 |
Commitments and contingencies | ||
Equity | ||
Common shares $.01 par value, 400,000,000 shares authorized, 224,568,376 and 223,917,993 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 2,246 | 2,239 |
Additional paid-in capital | 4,121,824 | 4,088,392 |
Accumulated other comprehensive loss | (511) | (570) |
Accumulated deficit | (1,271,905) | (1,218,498) |
Total CubeSmart shareholders' equity | 2,851,654 | 2,871,563 |
Noncontrolling interests in subsidiaries | 14,101 | 18,597 |
Total equity | 2,865,755 | 2,890,160 |
Total liabilities and equity | $ 6,371,170 | $ 6,548,079 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Storage properties | $ 6,077,431 | $ 6,097,670 |
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 | 224,568,376 | 223,917,993 |
Common shares, shares outstanding | 224,568,376 | 223,917,993 |
VIE | ||
Storage properties | $ 163,299 | $ 149,467 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES | ||||
Rental income | $ 226,837 | $ 182,409 | $ 651,341 | $ 515,244 |
Total revenues | 261,408 | 212,564 | 748,637 | 600,652 |
OPERATING EXPENSES | ||||
Property operating expenses | 76,728 | 64,065 | 220,767 | 189,044 |
Depreciation and amortization | 79,574 | 55,871 | 241,177 | 163,820 |
General and administrative | 13,390 | 12,095 | 41,640 | 34,571 |
Total operating expenses | 169,692 | 132,031 | 503,584 | 387,435 |
Interest: | ||||
Interest expense on loans | (23,850) | (19,122) | (69,729) | (57,468) |
Loan procurement amortization expense | (969) | (1,012) | (2,885) | (3,059) |
Equity in earnings of real estate ventures | 46,558 | 816 | 47,532 | 1,152 |
Gains from sales of real estate, net | 28,815 | 28,815 | ||
Other | (15) | 539 | (9,671) | 1,593 |
Total other income (expense) | 21,724 | 10,036 | (34,753) | (28,967) |
NET INCOME | 113,440 | 90,569 | 210,300 | 184,250 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interests in the Operating Partnership | (733) | (3,149) | (1,404) | (6,466) |
Noncontrolling interest in subsidiaries | 181 | 230 | 505 | 350 |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 112,888 | $ 87,650 | $ 209,401 | $ 178,134 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.89 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.88 |
Weighted average basic shares outstanding (in shares) | 225,023 | 202,194 | 224,883 | 200,934 |
Weighted average diluted shares outstanding (in shares) | 225,966 | 203,797 | 225,881 | 202,291 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 25,619 | $ 21,892 | $ 71,760 | $ 62,414 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 8,952 | $ 8,263 | $ 25,536 | $ 22,994 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME | $ 113,440 | $ 90,569 | $ 210,300 | $ 184,250 |
Other comprehensive income: | ||||
Reclassification of realized losses on interest rate swaps | 20 | 20 | 60 | 60 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 | 60 | 60 |
COMPREHENSIVE INCOME | 113,460 | 90,589 | 210,360 | 184,310 |
Comprehensive income attributable to noncontrolling interests in the Operating Partnership | (733) | (3,150) | (1,405) | (6,469) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 181 | 230 | 505 | 350 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 112,908 | $ 87,669 | $ 209,460 | $ 178,191 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) shares in Thousands, $ 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, 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 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interest in subsidiaries | (69) | (69) | ||||||
Issuance of common shares, net | 99,688 | $ 28 | 99,660 | 99,688 | ||||
Issuance of common shares, net (in shares) | 2,837 | |||||||
Issuance of restricted shares (in shares) | 32 | |||||||
Conversion from units to shares | 1,913 | $ 1 | 1,912 | (1,913) | 1,913 | |||
Conversion from units to shares (in shares) | 55 | |||||||
Exercise of stock options | 1,172 | $ 1 | 1,171 | 1,172 | ||||
Exercise of stock options (in shares) | 92 | |||||||
Amortization of restricted shares | 705 | 705 | 705 | |||||
Share compensation expense | 609 | 609 | 609 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (32,102) | (32,102) | 32,102 | (32,102) | ||||
Net income (loss) | 41,732 | 41,732 | 34 | 41,766 | ||||
Net income (loss) | 1,549 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (68,350) | (68,350) | (2,504) | (68,350) | ||||
Balance at Mar. 31, 2021 | 1,877,602 | $ 2,004 | 2,909,730 | (613) | (1,033,519) | 8,597 | 1,886,199 | |
Balance (in shares) at Mar. 31, 2021 | 200,422 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2021 | 278,649 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 5,104 | 5,104 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (38) | (38) | ||||||
Issuance of common shares, net | 42,429 | $ 11 | 42,418 | 42,429 | ||||
Issuance of common shares, net (in shares) | 1,046 | |||||||
Issuance of restricted shares (in shares) | 31 | |||||||
Conversion from units to shares | 3,549 | $ 1 | 3,548 | (3,549) | 3,549 | |||
Conversion from units to shares (in shares) | 81 | |||||||
Exercise of stock options | 4,075 | $ 2 | 4,073 | 4,075 | ||||
Exercise of stock options (in shares) | 189 | |||||||
Amortization of restricted shares | 1,383 | 1,383 | 1,383 | |||||
Share compensation expense | 544 | 544 | 544 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (63,025) | (63,025) | 63,025 | (63,025) | ||||
Net income (loss) | 48,752 | 48,752 | (154) | 48,598 | ||||
Net income (loss) | 1,768 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (68,804) | (68,804) | (2,477) | (68,804) | ||||
Balance at Jun. 30, 2021 | 1,846,524 | $ 2,018 | 2,961,696 | (594) | (1,116,596) | 13,509 | 1,860,033 | |
Balance (in shares) at Jun. 30, 2021 | 201,769 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2021 | 337,417 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 6,300 | 6,300 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (31) | (31) | ||||||
Issuance of common shares, net | 57,845 | $ 11 | 57,834 | 57,845 | ||||
Issuance of common shares, net (in shares) | 1,100 | |||||||
Issuance of restricted shares (in shares) | 2 | |||||||
Conversion from units to shares | 13,393 | $ 3 | 13,390 | (13,393) | 13,393 | |||
Conversion from units to shares (in shares) | 276 | |||||||
Exercise of stock options | 2,618 | $ 1 | 2,617 | 2,618 | ||||
Exercise of stock options (in shares) | 138 | |||||||
Amortization of restricted shares | 1,424 | 1,424 | 1,424 | |||||
Share compensation expense | 559 | 559 | 559 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (14,764) | (14,764) | 14,764 | (14,764) | ||||
Net income (loss) | 87,650 | 87,650 | (230) | 87,420 | ||||
Net income (loss) | 3,149 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (69,315) | (69,315) | (2,381) | (69,315) | ||||
Balance at Sep. 30, 2021 | 1,925,953 | $ 2,033 | 3,037,520 | (575) | (1,113,025) | 19,548 | 1,945,501 | |
Balance (in shares) at Sep. 30, 2021 | 203,285 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Sep. 30, 2021 | 339,557 | |||||||
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 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interest in subsidiaries | (2,033) | (2,033) | ||||||
Issuance of preferred shares, net | (123) | (123) | (123) | |||||
Issuance of restricted shares (in shares) | 35 | |||||||
Conversion from units to shares | 21,538 | $ 4 | 21,534 | (21,538) | 21,538 | |||
Conversion from units to shares (in shares) | 441 | |||||||
Exercise of stock options | 1,226 | $ 1 | 1,225 | 1,226 | ||||
Exercise of stock options (in shares) | 40 | |||||||
Amortization of restricted shares | 519 | 519 | 519 | |||||
Share compensation expense | 636 | 636 | 636 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 10,356 | 10,356 | (10,356) | 10,356 | ||||
Net income (loss) | 38,155 | 38,155 | (181) | 37,974 | ||||
Net income (loss) | 292 | |||||||
Other comprehensive income (loss), net | 19 | 19 | 19 | |||||
Other comprehensive income (loss), net | 1 | |||||||
Common share distributions | (96,817) | (96,817) | (628) | (96,817) | ||||
Balance at Mar. 31, 2022 | 2,847,072 | $ 2,244 | 4,112,183 | (551) | (1,266,804) | 16,383 | 2,863,455 | |
Balance (in shares) at Mar. 31, 2022 | 224,434 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2022 | 75,991 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interest in subsidiaries | (61) | (61) | ||||||
Issuance of common shares, net | (42) | (42) | (42) | |||||
Issuance of restricted shares | 1 | $ 1 | 1 | |||||
Issuance of restricted shares (in shares) | 19 | |||||||
Amortization of restricted shares | 1,373 | 1,373 | 1,373 | |||||
Share compensation expense | 635 | 635 | 635 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 13,349 | 13,349 | (13,349) | 13,349 | ||||
Net income (loss) | 58,358 | 58,358 | (143) | 58,215 | ||||
Net income (loss) | 379 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (96,819) | (96,819) | (628) | (96,819) | ||||
Balance at Jun. 30, 2022 | 2,823,947 | $ 2,245 | 4,114,149 | (531) | (1,291,916) | 16,179 | 2,840,126 | |
Balance (in shares) at Jun. 30, 2022 | 224,453 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2022 | 62,393 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 3,340 | 3,340 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (5,237) | (5,237) | ||||||
Issuance of common shares, net | 5,055 | $ 1 | 5,054 | 5,055 | ||||
Issuance of common shares, net (in shares) | 102 | |||||||
Issuance of restricted shares (in shares) | 1 | |||||||
Exercise of stock options | 364 | 364 | 364 | |||||
Exercise of stock options (in shares) | 12 | |||||||
Amortization of restricted shares | 1,621 | 1,621 | 1,621 | |||||
Share compensation expense | 636 | 636 | 636 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 3,990 | 3,990 | (3,990) | 3,990 | ||||
Net income (loss) | 112,888 | 112,888 | (181) | 112,707 | ||||
Net income (loss) | 733 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (96,867) | (96,867) | (628) | (96,867) | ||||
Balance at Sep. 30, 2022 | $ 2,851,654 | $ 2,246 | $ 4,121,824 | $ (511) | $ (1,271,905) | $ 14,101 | 2,865,755 | |
Balance (in shares) at Sep. 30, 2022 | 224,568 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Sep. 30, 2022 | $ 58,508 | $ 58,508 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
CONSOLIDATED STATEMENT OF EQUITY | ||||||||
Common share distributions (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.34 | $ 0.34 | $ 0.34 | $ 1.29 | $ 1.02 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net loss | $ 210,300 | $ 184,250 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 244,062 | 166,879 |
Non-cash portion of interest expense related to finance leases | (37) | 208 |
Equity in earnings of real estate ventures | (47,532) | (1,152) |
Gains from sales of real estate, net | (28,815) | |
Equity compensation expense | 6,804 | 6,067 |
Accretion of fair market value adjustment of debt | (830) | (1,630) |
Changes in other operating accounts: | ||
Other assets | 4,247 | (7,034) |
Accounts payable and accrued expenses | 25,982 | 19,397 |
Other liabilities | 3,500 | 4,770 |
Net cash provided by operating activities | 446,496 | 342,940 |
Investing Activities | ||
Acquisitions of storage properties | (89,004) | (65,455) |
Additions and improvements to storage properties | (27,493) | (27,928) |
Development costs | (17,445) | (60,783) |
Investment in real estate ventures | (16) | (28,256) |
Cash distributed from real estate ventures | 59,544 | 15,125 |
Proceeds from sale of real estate, net | 43,193 | 37,348 |
Net cash used in investing activities | (31,221) | (129,949) |
Proceeds from: | ||
Revolving credit facility | 500,640 | 667,658 |
Principal payments on: | ||
Revolving credit facility | (624,540) | (785,458) |
Mortgage loans and notes payable | (1,806) | (45,791) |
Loan procurement costs | (136) | |
Proceeds from issuance of common shares, net | 4,890 | 199,962 |
Cash paid upon vesting of restricted shares | (1,384) | (843) |
Exercise of stock options | 1,590 | 7,865 |
Contributions from noncontrolling interests in subsidiaries | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,331) | (138) |
Distributions paid to common shareholders | (290,238) | (204,522) |
Distributions paid to noncontrolling interests in Operating Partnership | (2,074) | (5,914) |
Net cash provided by financing activities | (420,389) | (159,150) |
Change in cash, cash equivalents and restricted cash | (5,114) | 53,841 |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 |
Cash, cash equivalents and restricted cash at end of period | 8,204 | 60,070 |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 75,172 | 63,610 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (700) | |
Accretion of put liability | 2,444 | 7,333 |
Derivative valuation adjustment | 60 | 60 |
Contributions from noncontrolling interests in subsidiaries | $ 3,340 | $ 3,373 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022, the Company owned (or partially owned and consolidated) self-storage properties located in 24 states throughout the United States and the District of Columbia that are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage properties. As of September 30, 2022, the Parent Company owned approximately 99.4% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time following a specified restricted period for cash equal to the fair value of an equivalent number of common shares of the Parent Company. In lieu of delivering cash, however, the Parent Company, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Parent Company so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Parent Company’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Parent Company issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Parent Company an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT”. The Company typically experiences seasonal fluctuations in the occupancy levels of its stores, which are generally slightly higher during the summer months due to increased moving activity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s combined audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2021, which are included in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 – Reference Rate Reform (Topic 848), providing optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01 – Reference Rate Reform (Topic 848): Scope to Clarify the Guidance Offered by Topic 848. ASU No. 2020-04 and ASU No. 2021-01 are applicable to contracts, hedging relationships, and other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. This optional guidance may be applied prospectively as of January 1, 2020 through December 31, 2024. To date, the Company has not adopted the optional guidance and does not expect that any future adoption will have a material impact on the Company’s consolidated financial statements. 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 did not have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES
STORAGE PROPERTIES | 9 Months Ended |
Sep. 30, 2022 | |
STORAGE PROPERTIES | |
STORAGE FACILITIES | 3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: September 30, December 31, 2022 2021 (in thousands) Land $ 1,588,138 $ 1,565,463 Buildings and improvements 5,479,275 5,368,383 Equipment 144,100 129,531 Construction in progress 31,203 78,221 Right-of-use assets - finance leases 41,945 41,896 Storage properties 7,284,661 7,183,494 Less: Accumulated depreciation (1,207,230) (1,085,824) Storage properties, net $ 6,077,431 $ 6,097,670 The following table summarizes the Company’s acquisition and disposition activity of self-storage properties during the period January 1, 2021 through September 30, 2022. Number of Purchase / Sale Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2022 Acquisitions: Maryland Asset Washington-Arlington-Alexandria, DC-VA-MD-WV February 2022 1 $ 32,000 Texas Asset San Antonio, TX June 2022 1 23,000 Georgia Asset Atlanta, GA July 2022 1 20,700 3 $ 75,700 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 (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”). The Los Angeles Athletic Club was sold by the Company during the nine months ended September 30, 2022. The California Yacht Club is classified as held for sale on the Company’s consolidated balance sheets as of September 30, 2022 (see note 4). |
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT ACTIVITY | |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY 2022 Acquisitions During the nine months ended September 30, 2022, the Company acquired three stores located in Georgia (1) , Maryland (1) and Texas (1) for an aggregate purchase price of $75.7 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 $3.4 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 three and nine months ended September 30, 2022 was approximately $0.9 million and $1.4 million, respectively. Additionally, on February 2, 2022, the Company acquired land underlying a wholly-owned store located in Bronx, New York for $7.5 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 $4.1 million and $5.0 million, respectively, were removed from the Company’s consolidated balance sheets. Also, on April 28, 2022, the Company acquired land underlying a store owned by 191 IV CUBE LLC, an unconsolidated joint venture in which the Company holds a 20% ownership interest (see note 5). The purchase price for the land was $6.1 million, and the Company now serves as the lessor in a ground lease of the land to 191 IV CUBE LLC. 2022 Dispositions During the nine months ended September 30, 2022, the Company sold the Los Angeles Athletic Club, which it purchased in December 2021 as part of the LAACO acquisition, for $44.0 million. No gain or loss was recognized in conjunction with the sale. 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 (the “CYC”) (consisting of sports facilities, food and beverage operations and a marina). During the nine months ended September 30, 2022, the Company sold the Los Angeles Athletic Club (see above). As of September 30, 2022, the CYC is 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 $ 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. Amounts of $10.3 million were included in the component of other income (expense) designated as other for the nine months ended September 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 three and nine months ended September 30, 2022 was approximately $27.4 million and $82.2 million, respectively. Other 2021 Acquisitions During the year ended December 31, 2021, the Company also 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. In addition, a consolidated joint venture in which the Company holds a 50% interest acquired a store in Minnesota for a purchase price of $12.0 million (see note 13). In connection with these transactions, which were accounted for as asset acquisitions, the Company allocated the purchase price and acquisition-related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $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 three and nine months ended September 30, 2022 was approximately $1.7 million and $7.5 million, respectively. 2021 Dispositions During the year ended December 31, 2021, the Company sold five properties located 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 September 30, 2022, the Company determined that the CYC met the criteria to be classified as held for sale. Accordingly, the assets and liabilities associated with the CYC have been categorized as held for sale within the Company’s consolidated balance sheets. As of September 30, 2022, the estimated fair value less selling costs of the CYC was greater than the carrying value of the CYC, and therefore no loss has been recorded in the current period. Development Activity As of September 30, 2022, the Company had an investment in a joint venture to develop one self-storage property located in New York. Construction for this project is expected to be completed by the fourth quarter of 2023 (see note 13). As of September 30, 2022, development costs incurred to date for this project totaled $22.3 million. Total construction costs for this project are expected to be $46.2 million. These costs are capitalized to construction in progress while the project is under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company has completed the construction and opened for operation the following stores during the period January 1, 2021 through September 30, 2022. 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) Valley Stream, NY 1 Q3 2022 51% $ 39,000 Vienna, VA (1) 1 Q2 2022 80% 21,800 Newton, MA (2) 1 Q4 2021 100% 20,800 East Meadow, NY (3) 1 Q2 2021 100% 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (1) 1 Q1 2021 90% 26,400 6 $ 156,700 (1) Each of these stores are located adjacent to an existing consolidated joint venture store. Given this proximity, each of these stores has been combined with the adjacent existing store in our store count upon opening, as well as for operational and reporting purposes (see note 13). (2) During the fourth quarter of 2021, the Company, through a joint venture in which it owned a 90% interest that was previously consolidated, completed the construction of this store and it was opened for operation. On December 14, 2021, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the store for $3.4 million. Prior to this transaction, the noncontrolling member’s interest in the venture was reported in Noncontrolling interests in subsidiaries on the consolidated balance sheets. Since the Company retained its controlling interest in the venture and the store is now wholly owned, this transaction was accounted for as an equity transaction. 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 of $2.7 million was recorded as an adjustment to equity attributable to the Company, with no gain or loss recorded. The $13.2 million related party loan extended by the Company to the venture that owned the store was repaid in conjunction with the Company’s acquisition of the noncontrolling member’s ownership interest. (3) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On June 29, 2021, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $6.6 million in cash consideration. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 9 Months Ended |
Sep. 30, 2022 | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 5. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES The Company’s investments in unconsolidated real estate ventures are summarized as follows (dollars in thousands): CubeSmart Number of Stores as of Carrying Value of Investment as of Ownership September 30, December 31, September 30, December 31, Unconsolidated Real Estate Ventures Interest 2022 2021 2022 2021 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,929 $ 14,225 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 21,159 21,536 191 V CUBE LLC ("HVP V") (2) 20% 6 5 14,703 16,080 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% - 14 — 4,541 191 IV CUBE LLC ("HVP IV") (4) 20% 28 28 20,488 23,223 CUBE HHF Northeast Venture LLC ("HHFNE") (5) 10% 13 13 1,158 1,291 CUBE HHF Limited Partnership ("HHF") (6) 50% 28 28 36,318 38,855 77 90 $ 107,755 $ 119,751 (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 September 30, 2022, this difference was $13.2 million and $19.7 million for Fontana and RCSS, respectively. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) The stores owned by HVP V are located in Florida (2) , New Jersey (3) and New York ( 1 ). HVP V paid an aggregate of $176.9 million for these properties, of which $2.2 million was allocated to the value of the in-place leases. These acquisitions were funded through pro-rata contributions by the Company and its unaffiliated joint venture partner as well as by the venture’s secured term loan. The Company’s total contribution to HVP V related to these acquisitions was $22.7 million. As of September 30, 2022, HVP V had an outstanding $101.8 million secured term loan, which bears interest at the Secured Overnight Financing Rate (“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) On August 30, 2022, HVPSE sold all 14 of its stores to an unaffiliated third-party buyer for an aggregate sales price of $235.0 million. These stores were located in Florida (2) , Georgia (8) and South Carolina (4) . As of the transaction date, HVPSE had an $81.6 million secured term loan, which was repaid in full at the time of the sale. Net proceeds to the venture from the transaction totaled $150.1 million, of which $49.9 million were distributed to the Company. The venture recorded gains which aggregated to approximately $114.1 million in connection with the sale. As of September 30, 2022, the venture retained cash of $3.5 million to pay venture-level expenses. After such expenses are paid, any remaining proceeds will be distributed to the venture’s partners per the terms of the operating 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. As of September 30, 2022, HVP IV had an outstanding $221.6 million secured loan, which bears interest at LIBOR plus 1.95% per annum, and matures on April 19, 2025. (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 September 30, 2022, 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. As of September 30, 2022, HHF had an outstanding $105.0 million secured loan, which bears interest at a fixed rate of 2.58% per annum and matures on February 5, 2028. 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. 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 following is a summary of the financial position of the Ventures as of September 30, 2022 and December 31, 2021. September 30, December 31, 2022 2021 Assets (in thousands) Storage properties, net $ 747,745 $ 850,250 Other assets 17,362 34,760 Total assets $ 765,107 $ 885,010 Liabilities and equity Debt $ 468,335 $ 526,972 Other liabilities 22,240 14,500 Equity CubeSmart 74,836 86,083 Joint venture partners 199,696 257,455 Total liabilities and equity $ 765,107 $ 885,010 The following is a summary of results of operations of the Ventures for the three and nine months ended September 30, 2022 and 2021. Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in thousands) Total revenues $ 26,915 $ 24,273 $ 78,511 $ 64,337 Operating expenses (11,340) (10,368) (33,321) (28,464) Other expenses (137) (138) (375) (988) Interest expense, net (4,225) (2,714) (11,678) (8,922) Depreciation and amortization (9,124) (9,719) (29,052) (27,439) Gains from sale of real estate, net 114,107 — 114,107 — Net income (loss) $ 116,196 $ 1,334 $ 118,192 $ (1,476) Company’s share of net income (loss) $ 46,558 $ 816 $ 47,532 $ 1,152 |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets, Unclassified [Abstract] | |
OTHER ASSETS | 6. OTHER ASSETS Other assets are comprised of the following as of September 30, 2022 and December 31, 2021: September 30, December 31, 2022 2021 (in thousands) Intangible assets, net of accumulated amortization of $97,480 and $12,760, respectively $ 20,951 $ 108,794 Accounts receivable, net 8,190 8,145 Prepaid property taxes 7,298 6,938 Prepaid property and casualty insurance 4,712 3,352 Amounts due from affiliates (see note 15) 14,819 15,417 Assets related to deferred compensation arrangements 54,039 60,297 Right-of-use assets - operating leases 49,761 54,741 Ground lease receivable 6,124 — Other 5,903 8,021 Total other assets, net $ 171,797 $ 265,705 |
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES | 9 Months Ended |
Sep. 30, 2022 | |
UNSECURED SENIOR NOTES | |
UNSECURED SENIOR NOTES | 7. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): September 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2022 2021 Interest Rate Date Date (in thousands) $300M 4.000% Guaranteed Notes due 2025 (1) $ 300,000 $ 300,000 3.99 % Various (1) 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 550,000 550,000 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 500,000 500,000 2.59 % Nov-21 Feb-32 Principal balance outstanding 2,800,000 2,800,000 Less: Discount on issuance of unsecured senior notes, net (12,215) (13,455) Less: Loan procurement costs, net (16,470) (18,336) Total unsecured senior notes, net $ 2,771,315 $ 2,768,209 (1) 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 September 30, 2022, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 9 Months Ended |
Sep. 30, 2022 | |
REVOLVING CREDIT FACILITY | |
REVOLVING CREDIT FACILITY | 8. REVOLVING CREDIT FACILITY On December 9, 2011, the Company entered into a credit agreement (the “Credit Facility”). On June 19, 2019, the Company amended and restated, in its entirety, the Credit Facility (the “Amended and Restated Credit Facility”) which, subsequent to the amendment and restatement, is comprised of a $750.0 million unsecured revolving facility (the “Revolver”) maturing on June 19, 2024. Under the Amended and Restated Credit Facility, pricing on the Revolver is dependent upon the Company’s unsecured debt credit ratings. At the Company’s current Baa2/BBB level, amounts drawn under the Revolver are priced at a rate of 1.10% over LIBOR, inclusive of a facility fee of 0.15%. As of September 30, 2022, borrowings under the Revolver had an effective interest rate of 4.24%. Additionally, as of September 30, 2022, $663.4 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 September 30, 2022, the Company was in compliance with all of its financial covenants related to the Amended and Restated Credit Facility. Subsequent to September 30, 2022, the Company amended and restated, in its entirety, the Credit Facility (see note 17). |
MORTGAGE LOANS AND NOTES PAYABL
MORTGAGE LOANS AND NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2022 | |
MORTGAGE LOANS AND NOTES PAYABLE | |
MORTGAGE LOANS AND NOTES PAYABLE | 9. MORTGAGE LOANS AND NOTES PAYABLE The Company’s mortgage loans and notes payable are summarized as follows: Carrying Value as of September 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2022 2021 Interest Rate Date (in thousands) Nashville V, TN $ 2,163 $ 2,206 3.85 % Jun-23 New York, NY 28,841 29,340 3.51 % Jun-23 Annapolis I, MD 4,955 5,099 3.78 % May-24 Brooklyn XV, NY 15,177 15,423 2.15 % May-24 Long Island City IV, NY 12,349 12,580 2.15 % May-24 Long Island City II, NY 18,393 18,714 2.25 % Jul-26 Long Island City III, NY 18,401 18,723 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 154,579 156,385 Plus: Unamortized fair value adjustment 10,910 12,981 Less: Loan procurement costs, net (1,373) (1,690) Total mortgage loans and notes payable, net $ 164,116 $ 167,676 As of September 30, 2022 and December 31, 2021, the Company’s mortgage loans payable were secured by certain of its self-storage properties with net book values of approximately $444.6 million and $450.7 million, respectively. The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of September 30, 2022 (in thousands): 2022 $ 620 2023 32,591 2024 32,329 2025 979 2026 33,760 2027 and thereafter 54,300 Total mortgage payments 154,579 Plus: Unamortized fair value adjustment 10,910 Less: Loan procurement costs, net (1,373) Total mortgage loans and notes payable, net $ 164,116 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended |
Sep. 30, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 10. ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2022. September 30, 2022 (in thousands) Beginning balance $ (575) Reclassification of realized losses on interest rate swaps (1) 60 Ending balance (515) Less: portion included in noncontrolling interests in the Operating Partnership 4 Total accumulated other comprehensive loss included in equity $ (511) (1) See note 11 for additional information about the effects of the amounts reclassified. |
RISK MANAGEMENT AND USE OF FINA
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2022 | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 11. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS The Company’s use of derivative instruments is limited to the utilization of interest rate swap agreements or other instruments to manage interest rate risk exposure and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its subsidiaries may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks. The Company formally assesses, both at inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that the derivative is highly-effective as a hedge, then the Company accounts for the derivative using hedge accounting, pursuant to which gains or losses inherent in the derivative do not impact the Company’s results of operations. If management determines that the derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company discontinues hedge accounting prospectively and reflects in its statement of operations realized and unrealized gains and losses with respect to the derivative. As of September 30, 2022 and December 31, 2021, 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 its 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 twenty thousand dollars and sixty thousand dollars of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during the three and nine months ended September 30, 2022. The Company estimates that $0.1 million will be reclassified as an increase to interest expense in the next 12 months. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS The Company applies the methods of determining fair value as described in authoritative guidance, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. There were no financial assets or liabilities carried at fair value as of September 30, 2022 or December 31, 2021. The fair values of financial instruments, including cash and cash equivalents, restricted cash, accounts receivable and accounts payable approximate their respective carrying values at September 30, 2022 and December 31, 2021. The following table summarizes the carrying value and estimated fair value of the Company’s debt as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Carrying value $ 3,021,431 $ 3,145,785 Fair value 2,570,180 3,256,128 The fair value of debt estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations at September 30, 2022 and December 31, 2021. 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 | 9 Months Ended |
Sep. 30, 2022 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 13. NONCONTROLLING INTERESTS Interests in Consolidated Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated real estate ventures. The following table summarizes the Company’s consolidated joint ventures, each of which are accounted for as VIEs (dollars in thousands): CubeSmart Number Date Opened / Ownership September 30, 2022 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) Astoria Investors, LLC ("Astoria") (2) 1 Queens, NY Q4 2023 (est.) 70% $ 22,595 $ 7,991 CS 750 W Merrick Rd, LLC ("Merrick") (3) 1 Valley Stream, NY Q3 2022 51% 37,625 17,255 CS Vienna, LLC ("Vienna") (4) 1 Vienna, VA Q2 2022 80% 32,944 35,160 CS Valley Forge Village Storage, LLC ("VFV") (5) 1 King of Prussia, PA Q2 2021 70% 20,667 14,633 CS Lock Up Anoka, LLC ("Anoka") (6) 1 Anoka, MN Q2 2021 50% 11,141 5,615 SH3, LLC ("SH3") (7) 1 Arlington, VA Q2 2015/Q1 2021 90% 38,141 262 6 $ 163,113 $ 80,916 (1) All consolidated joint ventures were formed to develop, own and operate new stores with the exception of Anoka, which was formed to acquire an existing store that had commenced operations. (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. As of September 30, 2022, the Company has funded $7.7 million of a $27.1 million related party loan commitment to Astoria, which is included in total liabilities within the table above. This loan and the related interest were eliminated for consolidation purposes. (3) During the three months ended September 30, 2022, the noncontrolling member of Merrick notified the Company that it intends to exercise its option to put its ownership interest in the venture to the Company for $17.1 million (the “Put Option”). The Company, at its sole discretion, may pay cash and/or issue OP Units in exchange for the noncontrolling member’s interest. This transaction is expected to be completed subsequent to September 30, 2022. The Company accreted the liability related to the Put Option during the development period and, as of September 30, 2022, has accrued the full $17.1 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets and in total liabilities within the table above. (4) 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. In June 2022, the members completed construction of a new store on the Vienna Land. Upon completion, the new store was combined with the Vienna Operating Property and is now operated by the venture as a single store. As of September 30, 2022, the Company has an outstanding loan of $34.9 million to Vienna. The loan is included in total liabilities within the table above. This loan and the related interest were eliminated for consolidation purposes. (5) The Company has a related party loan commitment to VFV that was used to fund a portion of the construction costs. As of September 30, 2022, the Company has an outstanding loan of $14.6 million to VFV, which is included in total liabilities 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 September 30, 2022, the Company has funded $5.5 million of a $6.1 million related party loan commitment to Anoka, which is included in total liabilities 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 0.6% and 0.8% of the outstanding OP Units, as of September 30, 2022 and December 31, 2021, respectively, were not owned by CubeSmart, the sole general partner. The interests in the Operating Partnership represented by these OP Units were a component of the consideration that the Operating Partnership paid to acquire certain self-storage properties. The holders of the OP Units are limited partners in the Operating Partnership and have the right to require CubeSmart to redeem all or part of their OP Units for, at the general partner’s option, an equivalent number of common shares of CubeSmart or cash based upon the fair value of an equivalent number of common shares of CubeSmart. However, the partnership agreement contains certain provisions that could result in a settlement outside the control of CubeSmart and the Operating Partnership, as CubeSmart does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance, the Operating Partnership will record the OP Units owned by third parties outside of permanent capital in the consolidated balance sheets. Net income or loss related to the OP Units owned by third parties is excluded from net income or loss attributable to Operating Partner in the consolidated statements of operations. As of September 30, 2022 and December 31, 2021, 1,460,520 and 1,901,595 OP units, respectively, were held by third parties. The per unit cash redemption amount of the outstanding OP units was calculated based upon the closing price of the common shares of CubeSmart on the New York Stock Exchange on the final trading day of the quarter. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interest, the Company has reflected these interests at the greater of the carrying value based on the accumulation of historical cost or the redemption value at September 30, 2022 and December 31, 2021. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. COMMITMENTS AND CONTINGENCIES Litigation The Company is involved in claims from time to time, which arise in the ordinary course of business. In accordance with applicable accounting guidance, management establishes an accrued liability for claim expenses, insurance retention and litigation costs when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be exposure to loss in excess of those amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. In the opinion of management, the Company has made adequate provisions for potential liabilities, arising from any such matters, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. Insurance Recovery The Company incurred damages at certain stores due to Hurricane Ian, which made landfall in Florida on September 28, 2022. The Company maintains insurance coverage for property losses subject to certain deductibles and self-insured retentions. While the Company reasonably expects that applicable insurance proceeds will cover the replacement cost of the damaged stores, there is no assurance that the insurance proceeds will be sufficient to cover all of the restoration costs. During the three months ended September 30, 2022, the Company recorded $1.6 million in charges based on an initial damage assessment of the damaged stores and the terms of the deductibles associated with the applicable insurance policies. These estimated charges are included in Property operating expenses in the Company’s consolidated statements of operations. To the extent that insurance proceeds, which are on a replacement cost basis, ultimately exceed the net book value of the damaged assets, a gain will be recognized in the period in which all contingencies related to the insurance claim have been resolved. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS The Company provides management services to certain joint ventures and other related parties. Management agreements provide for fee income to the Company based on a percentage of revenues at the managed stores. Total management fees for unconsolidated real estate ventures or other entities in which the Company held an ownership interest for the three and nine months ended September 30, 2022 totaled $1.3 million and $4.0 million, respectively compared to $1.3 million and $3.6 million, respectively, for the same periods in 2021. The management agreements for certain joint ventures, other related parties and third-party stores provide for the reimbursement to the Company for certain expenses incurred to manage the stores. These amounts consist of amounts due for management fees, payroll, and other store expenses. The amounts due to the Company were $14.8 million and $15.4 million as of September 30, 2022 and December 31, 2021, respectively, and are reflected in Other assets, net on the Company’s consolidated balance sheets. Additionally, as discussed in note 13, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $62.7 million and $32.4 million as of September 30, 2022 and December 31, 2021, respectively, which are eliminated for consolidation purposes. The Company believes that all of these related-party receivables are fully collectible. The HVP V, HVPSE, HVP IV and HHFNE operating agreements provide for acquisition, disposition and other fees payable from HVP V, HVPSE, HVP IV and HHFNE to the Company upon the closing of a property transaction by HVP V, HVPSE, HVP IV and HHFNE or any of their subsidiaries and completion of certain measures as defined in the operating agreements. During the three and nine months ended September 30, 2022, the Company recognized fees associated with property transactions of $0.4 million and $0.6 million, respectively. During the three and nine months ended September 30, 2021, the Company recognized fees associated with property transactions of $0.4 million and $1.1 million, respectively. Property transaction fees are included in the component of other (expense) income designated as Other on the consolidated statements of operations. In April 2022, the Company began serving as lessor in a ground lease related to land underlying an HVP IV property located in Texas (see note 4). During both the three and nine months ended September 30, 2022, the Company recognized income associated with this ground lease of $0.1 million. No such income was recognized during the three or nine months ended September 30, 2021. This income is included in the component of other (expense) income designated as Other on the consolidated statements of operations. |
EARNINGS PER SHARE AND UNIT AND
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 9 Months Ended |
Sep. 30, 2022 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 16. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL Earnings per common share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars and units in thousands, except per share amounts) Net income $ 113,440 $ 90,569 $ 210,300 $ 184,250 Noncontrolling interests in the Operating Partnership (733) (3,149) (1,404) (6,466) Noncontrolling interest in subsidiaries 181 230 505 350 Net income attributable to the Company’s common shareholders $ 112,888 $ 87,650 $ 209,401 $ 178,134 Weighted average basic shares outstanding 225,023 202,194 224,883 200,934 Share options and restricted share units 943 1,603 998 1,357 Weighted average diluted shares outstanding (1) 225,966 203,797 225,881 202,291 Basic earnings per share attributable to common shareholders $ 0.50 $ 0.43 $ 0.93 $ 0.89 Diluted earnings per share attributable to common shareholders (2) $ 0.50 $ 0.43 $ 0.93 $ 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: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars and units in thousands, except per unit amounts) Net income $ 113,440 $ 90,569 $ 210,300 $ 184,250 Operating Partnership interests of third parties (733) (3,149) (1,404) (6,466) Noncontrolling interest in subsidiaries 181 230 505 350 Net income attributable to common unitholders $ 112,888 $ 87,650 $ 209,401 $ 178,134 Weighted average basic units outstanding 225,023 202,194 224,883 200,934 Unit options and restricted share units 943 1,603 998 1,357 Weighted average diluted units outstanding (1) 225,966 203,797 225,881 202,291 Basic earnings per unit attributable to common unitholders $ 0.50 $ 0.43 $ 0.93 $ 0.89 Diluted earnings per unit attributable to common unitholders (2) $ 0.50 $ 0.43 $ 0.93 $ 0.88 (1) For the three and nine months ended September 30, 2022, the Company declared cash dividends per common share/unit of $0.43 and $1.29 , respectively. For the three and nine months ended September 30, 2021, the Company declared cash dividends per common share/unit of $0.34 and $1.02 , respectively. (2) The amount of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit was 0.3 million for both the three and nine months ended September 30, 2022. There were no anti-dilutive options for the three and nine months ended September 30, 2021. The OP units and common units have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. An Operating Partnership unit may be redeemed for cash, or, at the Company’s option, common units on a one-for-one basis. Outstanding noncontrolling interest units in the Operating Partnership were 1,460,520 and 7,008,397 as of September 30, 2022 and 2021, respectively. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | 17. SUBSEQUENT EVENTS On October 26, 2022, the Company amended and restated, in its entirety, the Credit Facility (the “Second Amended and Restated Credit Facility”) which, subsequent to the amendment and restatement, is comprised of an $850.0 million unsecured revolving facility (the “Second Amended Revolver”) maturing on February 15, 2027. Under the Second Amended and Restated Credit Facility, pricing on the Second Amended Revolver is dependent upon the Company’s unsecured debt credit ratings and leverage levels. At the Company’s current unsecured debt credit ratings and leverage levels, amounts drawn under the Second Amended Revolver are priced using a margin of 0.775% plus a facility fee of 0.15% over SOFR and a 0.10% SOFR adjustment. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s combined audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2021, which are included in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2021 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2020-04 – Reference Rate Reform (Topic 848), providing optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In January 2021, the FASB issued ASU No. 2021-01 – Reference Rate Reform (Topic 848): Scope to Clarify the Guidance Offered by Topic 848. ASU No. 2020-04 and ASU No. 2021-01 are applicable to contracts, hedging relationships, and other transactions that reference the London Inter-bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. This optional guidance may be applied prospectively as of January 1, 2020 through December 31, 2024. To date, the Company has not adopted the optional guidance and does not expect that any future adoption will have a material impact on the Company’s consolidated financial statements. 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 did not have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES (Tables)
STORAGE PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
STORAGE PROPERTIES | |
Summary of real estate assets | September 30, December 31, 2022 2021 (in thousands) Land $ 1,588,138 $ 1,565,463 Buildings and improvements 5,479,275 5,368,383 Equipment 144,100 129,531 Construction in progress 31,203 78,221 Right-of-use assets - finance leases 41,945 41,896 Storage properties 7,284,661 7,183,494 Less: Accumulated depreciation (1,207,230) (1,085,824) Storage properties, net $ 6,077,431 $ 6,097,670 |
Schedule of acquisitions and dispositions of real estate assets | The following table summarizes the Company’s acquisition and disposition activity of self-storage properties during the period January 1, 2021 through September 30, 2022. Number of Purchase / Sale Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2022 Acquisitions: Maryland Asset Washington-Arlington-Alexandria, DC-VA-MD-WV February 2022 1 $ 32,000 Texas Asset San Antonio, TX June 2022 1 23,000 Georgia Asset Atlanta, GA July 2022 1 20,700 3 $ 75,700 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 (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”). The Los Angeles Athletic Club was sold by the Company during the nine months ended September 30, 2022. The California Yacht Club is classified as held for sale on the Company’s consolidated balance sheets as of September 30, 2022 (see note 4). |
INVESTMENT ACTIVITY (Tables)
INVESTMENT ACTIVITY (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 $ 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. Amounts of $10.3 million were included in the component of other income (expense) designated as other for the nine months ended September 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) Valley Stream, NY 1 Q3 2022 51% $ 39,000 Vienna, VA (1) 1 Q2 2022 80% 21,800 Newton, MA (2) 1 Q4 2021 100% 20,800 East Meadow, NY (3) 1 Q2 2021 100% 25,900 King of Prussia, PA 1 Q2 2021 70% 22,800 Arlington, VA (1) 1 Q1 2021 90% 26,400 6 $ 156,700 (1) Each of these stores are located adjacent to an existing consolidated joint venture store. Given this proximity, each of these stores has been combined with the adjacent existing store in our store count upon opening, as well as for operational and reporting purposes (see note 13). (2) During the fourth quarter of 2021, the Company, through a joint venture in which it owned a 90% interest that was previously consolidated, completed the construction of this store and it was opened for operation. On December 14, 2021, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the store for $3.4 million. Prior to this transaction, the noncontrolling member’s interest in the venture was reported in Noncontrolling interests in subsidiaries on the consolidated balance sheets. Since the Company retained its controlling interest in the venture and the store is now wholly owned, this transaction was accounted for as an equity transaction. 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 of $2.7 million was recorded as an adjustment to equity attributable to the Company, with no gain or loss recorded. The $13.2 million related party loan extended by the Company to the venture that owned the store was repaid in conjunction with the Company’s acquisition of the noncontrolling member’s ownership interest. (3) This store was previously owned by a consolidated joint venture, in which the Company held a 51% ownership interest. On June 29, 2021, the noncontrolling member in the venture that owned the store put its 49% interest in the venture to the Company for $6.6 million in cash consideration. |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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 September 30, December 31, September 30, December 31, Unconsolidated Real Estate Ventures Interest 2022 2021 2022 2021 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,929 $ 14,225 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 21,159 21,536 191 V CUBE LLC ("HVP V") (2) 20% 6 5 14,703 16,080 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% - 14 — 4,541 191 IV CUBE LLC ("HVP IV") (4) 20% 28 28 20,488 23,223 CUBE HHF Northeast Venture LLC ("HHFNE") (5) 10% 13 13 1,158 1,291 CUBE HHF Limited Partnership ("HHF") (6) 50% 28 28 36,318 38,855 77 90 $ 107,755 $ 119,751 (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 September 30, 2022, this difference was $13.2 million and $19.7 million for Fontana and RCSS, respectively. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) The stores owned by HVP V are located in Florida (2) , New Jersey (3) and New York ( 1 ). HVP V paid an aggregate of $176.9 million for these properties, of which $2.2 million was allocated to the value of the in-place leases. These acquisitions were funded through pro-rata contributions by the Company and its unaffiliated joint venture partner as well as by the venture’s secured term loan. The Company’s total contribution to HVP V related to these acquisitions was $22.7 million. As of September 30, 2022, HVP V had an outstanding $101.8 million secured term loan, which bears interest at the Secured Overnight Financing Rate (“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) On August 30, 2022, HVPSE sold all 14 of its stores to an unaffiliated third-party buyer for an aggregate sales price of $235.0 million. These stores were located in Florida (2) , Georgia (8) and South Carolina (4) . As of the transaction date, HVPSE had an $81.6 million secured term loan, which was repaid in full at the time of the sale. Net proceeds to the venture from the transaction totaled $150.1 million, of which $49.9 million were distributed to the Company. The venture recorded gains which aggregated to approximately $114.1 million in connection with the sale. As of September 30, 2022, the venture retained cash of $3.5 million to pay venture-level expenses. After such expenses are paid, any remaining proceeds will be distributed to the venture’s partners per the terms of the operating 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. As of September 30, 2022, HVP IV had an outstanding $221.6 million secured loan, which bears interest at LIBOR plus 1.95% per annum, and matures on April 19, 2025. (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 September 30, 2022, 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. As of September 30, 2022, HHF had an outstanding $105.0 million secured loan, which bears interest at a fixed rate of 2.58% per annum and matures on February 5, 2028. |
Summary of the financial position of the ventures | September 30, December 31, 2022 2021 Assets (in thousands) Storage properties, net $ 747,745 $ 850,250 Other assets 17,362 34,760 Total assets $ 765,107 $ 885,010 Liabilities and equity Debt $ 468,335 $ 526,972 Other liabilities 22,240 14,500 Equity CubeSmart 74,836 86,083 Joint venture partners 199,696 257,455 Total liabilities and equity $ 765,107 $ 885,010 |
Summary of results of operations of the ventures | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (in thousands) Total revenues $ 26,915 $ 24,273 $ 78,511 $ 64,337 Operating expenses (11,340) (10,368) (33,321) (28,464) Other expenses (137) (138) (375) (988) Interest expense, net (4,225) (2,714) (11,678) (8,922) Depreciation and amortization (9,124) (9,719) (29,052) (27,439) Gains from sale of real estate, net 114,107 — 114,107 — Net income (loss) $ 116,196 $ 1,334 $ 118,192 $ (1,476) Company’s share of net income (loss) $ 46,558 $ 816 $ 47,532 $ 1,152 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets, Unclassified [Abstract] | |
Schedule of other assets | September 30, December 31, 2022 2021 (in thousands) Intangible assets, net of accumulated amortization of $97,480 and $12,760, respectively $ 20,951 $ 108,794 Accounts receivable, net 8,190 8,145 Prepaid property taxes 7,298 6,938 Prepaid property and casualty insurance 4,712 3,352 Amounts due from affiliates (see note 15) 14,819 15,417 Assets related to deferred compensation arrangements 54,039 60,297 Right-of-use assets - operating leases 49,761 54,741 Ground lease receivable 6,124 — Other 5,903 8,021 Total other assets, net $ 171,797 $ 265,705 |
UNSECURED SENIOR NOTES (Tables)
UNSECURED SENIOR NOTES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Senior Notes | |
Summary of debt | September 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2022 2021 Interest Rate Date Date (in thousands) $300M 4.000% Guaranteed Notes due 2025 (1) $ 300,000 $ 300,000 3.99 % Various (1) 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 550,000 550,000 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 500,000 500,000 2.59 % Nov-21 Feb-32 Principal balance outstanding 2,800,000 2,800,000 Less: Discount on issuance of unsecured senior notes, net (12,215) (13,455) Less: Loan procurement costs, net (16,470) (18,336) Total unsecured senior notes, net $ 2,771,315 $ 2,768,209 (1) 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 | 9 Months Ended |
Sep. 30, 2022 | |
Summary of debt | Carrying Value as of September 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2022 2021 Interest Rate Date (in thousands) Nashville V, TN $ 2,163 $ 2,206 3.85 % Jun-23 New York, NY 28,841 29,340 3.51 % Jun-23 Annapolis I, MD 4,955 5,099 3.78 % May-24 Brooklyn XV, NY 15,177 15,423 2.15 % May-24 Long Island City IV, NY 12,349 12,580 2.15 % May-24 Long Island City II, NY 18,393 18,714 2.25 % Jul-26 Long Island City III, NY 18,401 18,723 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 154,579 156,385 Plus: Unamortized fair value adjustment 10,910 12,981 Less: Loan procurement costs, net (1,373) (1,690) Total mortgage loans and notes payable, net $ 164,116 $ 167,676 |
Schedule of the future principal payment requirements on the outstanding mortgage loans and notes payable | The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of September 30, 2022 (in thousands): 2022 $ 620 2023 32,591 2024 32,329 2025 979 2026 33,760 2027 and thereafter 54,300 Total mortgage payments 154,579 Plus: Unamortized fair value adjustment 10,910 Less: Loan procurement costs, net (1,373) Total mortgage loans and notes payable, net $ 164,116 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in accumulated other comprehensive loss by component | The following table summarizes the changes in accumulated other comprehensive loss by component for the nine months ended September 30, 2022. September 30, 2022 (in thousands) Beginning balance $ (575) Reclassification of realized losses on interest rate swaps (1) 60 Ending balance (515) Less: portion included in noncontrolling interests in the Operating Partnership 4 Total accumulated other comprehensive loss included in equity $ (511) (1) See note 11 for additional information about the effects of the amounts reclassified. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities carried at fair value | September 30, 2022 December 31, 2021 (in thousands) Carrying value $ 3,021,431 $ 3,145,785 Fair value 2,570,180 3,256,128 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests in subsidiaries | CubeSmart Number Date Opened / Ownership September 30, 2022 Consolidated Joint Ventures of Stores Location Acquired (1) Interest Total Assets Total Liabilities (in thousands) Astoria Investors, LLC ("Astoria") (2) 1 Queens, NY Q4 2023 (est.) 70% $ 22,595 $ 7,991 CS 750 W Merrick Rd, LLC ("Merrick") (3) 1 Valley Stream, NY Q3 2022 51% 37,625 17,255 CS Vienna, LLC ("Vienna") (4) 1 Vienna, VA Q2 2022 80% 32,944 35,160 CS Valley Forge Village Storage, LLC ("VFV") (5) 1 King of Prussia, PA Q2 2021 70% 20,667 14,633 CS Lock Up Anoka, LLC ("Anoka") (6) 1 Anoka, MN Q2 2021 50% 11,141 5,615 SH3, LLC ("SH3") (7) 1 Arlington, VA Q2 2015/Q1 2021 90% 38,141 262 6 $ 163,113 $ 80,916 (1) All consolidated joint ventures were formed to develop, own and operate new stores with the exception of Anoka, which was formed to acquire an existing store that had commenced operations. (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. As of September 30, 2022, the Company has funded $7.7 million of a $27.1 million related party loan commitment to Astoria, which is included in total liabilities within the table above. This loan and the related interest were eliminated for consolidation purposes. (3) During the three months ended September 30, 2022, the noncontrolling member of Merrick notified the Company that it intends to exercise its option to put its ownership interest in the venture to the Company for $17.1 million (the “Put Option”). The Company, at its sole discretion, may pay cash and/or issue OP Units in exchange for the noncontrolling member’s interest. This transaction is expected to be completed subsequent to September 30, 2022. The Company accreted the liability related to the Put Option during the development period and, as of September 30, 2022, has accrued the full $17.1 million. This amount is included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets and in total liabilities within the table above. (4) 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. In June 2022, the members completed construction of a new store on the Vienna Land. Upon completion, the new store was combined with the Vienna Operating Property and is now operated by the venture as a single store. As of September 30, 2022, the Company has an outstanding loan of $34.9 million to Vienna. The loan is included in total liabilities within the table above. This loan and the related interest were eliminated for consolidation purposes. (5) The Company has a related party loan commitment to VFV that was used to fund a portion of the construction costs. As of September 30, 2022, the Company has an outstanding loan of $14.6 million to VFV, which is included in total liabilities 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 September 30, 2022, the Company has funded $5.5 million of a $6.1 million related party loan commitment to Anoka, which is included in total liabilities 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. |
EARNINGS PER SHARE AND UNIT A_2
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars and units in thousands, except per share amounts) Net income $ 113,440 $ 90,569 $ 210,300 $ 184,250 Noncontrolling interests in the Operating Partnership (733) (3,149) (1,404) (6,466) Noncontrolling interest in subsidiaries 181 230 505 350 Net income attributable to the Company’s common shareholders $ 112,888 $ 87,650 $ 209,401 $ 178,134 Weighted average basic shares outstanding 225,023 202,194 224,883 200,934 Share options and restricted share units 943 1,603 998 1,357 Weighted average diluted shares outstanding (1) 225,966 203,797 225,881 202,291 Basic earnings per share attributable to common shareholders $ 0.50 $ 0.43 $ 0.93 $ 0.89 Diluted earnings per share attributable to common shareholders (2) $ 0.50 $ 0.43 $ 0.93 $ 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: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 (dollars and units in thousands, except per unit amounts) Net income $ 113,440 $ 90,569 $ 210,300 $ 184,250 Operating Partnership interests of third parties (733) (3,149) (1,404) (6,466) Noncontrolling interest in subsidiaries 181 230 505 350 Net income attributable to common unitholders $ 112,888 $ 87,650 $ 209,401 $ 178,134 Weighted average basic units outstanding 225,023 202,194 224,883 200,934 Unit options and restricted share units 943 1,603 998 1,357 Weighted average diluted units outstanding (1) 225,966 203,797 225,881 202,291 Basic earnings per unit attributable to common unitholders $ 0.50 $ 0.43 $ 0.93 $ 0.89 Diluted earnings per unit attributable to common unitholders (2) $ 0.50 $ 0.43 $ 0.93 $ 0.88 (1) For the three and nine months ended September 30, 2022, the Company declared cash dividends per common share/unit of $0.43 and $1.29 , respectively. For the three and nine months ended September 30, 2021, the Company declared cash dividends per common share/unit of $0.34 and $1.02 , respectively. (2) The amount of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit was 0.3 million for both the three and nine months ended September 30, 2022. There were no anti-dilutive options for the three and nine months ended September 30, 2021. |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 9 Months Ended |
Sep. 30, 2022 state segment | |
Number of states in which self-storage facilities are located | state | 24 |
Number of reportable segments | segment | 1 |
Common stock, conversion ratio | 1 |
Cubesmart | |
Percentage of the entity's partnership interest in Operating Partnership | 99.40% |
STORAGE PROPERTIES - Summary (D
STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
STORAGE FACILITIES | ||
Storage properties | $ 7,284,661 | $ 7,183,494 |
Less: Accumulated depreciation | (1,207,230) | (1,085,824) |
Storage properties, net (including VIE assets of $163,299 and $149,467, respectively) | 6,077,431 | 6,097,670 |
Land | ||
STORAGE FACILITIES | ||
Storage properties | 1,588,138 | 1,565,463 |
Buildings and improvements | ||
STORAGE FACILITIES | ||
Storage properties | 5,479,275 | 5,368,383 |
Equipment | ||
STORAGE FACILITIES | ||
Storage properties | 144,100 | 129,531 |
Construction in progress | ||
STORAGE FACILITIES | ||
Storage properties | 31,203 | 78,221 |
Right-of-use assets - finance leases | ||
STORAGE FACILITIES | ||
Storage properties | $ 41,945 | $ 41,896 |
STORAGE PROPERTIES - Activity (
STORAGE PROPERTIES - Activity (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 09, 2021 facility item $ / shares shares | Sep. 30, 2022 USD ($) facility | Dec. 31, 2021 USD ($) facility item $ / shares shares | |
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 | ||
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 Acquisitions | Acquisitions | |||
STORAGE FACILITIES | |||
Percentage of interest acquired | 50% | 50% | |
2021 Acquisitions | Acquisitions | Minnesota Asset April 2021 | |||
STORAGE FACILITIES | |||
Percentage of interest acquired | 50% | ||
2022 Acquisitions | |||
STORAGE FACILITIES | |||
Number of Facilities, acquisitions (in properties) | 3 | ||
Purchase Price | $ | $ 75,700 | ||
2022 Acquisitions | Maryland Asset February 2022 | |||
STORAGE FACILITIES | |||
Number of Facilities, acquisitions (in properties) | 1 | ||
Purchase Price | $ | $ 32,000 | ||
2022 Acquisitions | Texas Asset June 2022 | |||
STORAGE FACILITIES | |||
Number of Facilities, acquisitions (in properties) | 1 | ||
Purchase Price | $ | $ 23,000 | ||
2022 Acquisitions | Georgia Asset July 2022 | |||
STORAGE FACILITIES | |||
Number of Facilities, acquisitions (in properties) | 1 | ||
Purchase Price | $ | $ 20,700 | ||
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 | ||
Purchase Price | $ | $ 21,700 | ||
2021 Dispositions | Texas Asset November 2021 | |||
STORAGE FACILITIES | |||
Number of Facilities, dispositions (in properties) | 1 | ||
Purchase Price | $ | $ 5,200 | ||
LAACO | 2021 Acquisitions | |||
STORAGE FACILITIES | |||
Number of Facilities, acquisitions (in properties) | 57 | 57 | |
Outstanding partnership unit purchased (in shares) | shares | 167,557 | 167,557 | |
Partnership units (dollars per share) | $ / shares | $ 9,838 | $ 9,838 | |
Number of joint ventures | item | 2 | 2 | |
LAACO | 2021 Acquisitions | Acquisitions | |||
STORAGE FACILITIES | |||
Ownership interest held by the entity (as a percent) | 50% |
INVESTMENT ACTIVITY (Details)
INVESTMENT ACTIVITY (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | |||||||
Apr. 28, 2022 USD ($) | Feb. 02, 2022 USD ($) | Dec. 14, 2021 USD ($) | Dec. 09, 2021 facility item | Jun. 29, 2021 USD ($) | Sep. 30, 2022 USD ($) facility | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) facility | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) facility item | Sep. 30, 2022 USD ($) facility | |
Self-storage facilities | |||||||||||
Gains from sales of real estate, net | $ 28,815,000 | $ 28,815,000 | |||||||||
Number of facilities, construction completed and opened | $ 6 | ||||||||||
Right-of-use assets - operating leases | $ 49,761,000 | $ 49,761,000 | $ 54,741,000 | 49,761,000 | |||||||
Construction | |||||||||||
Self-storage facilities | |||||||||||
Total Construction Costs | 156,700 | ||||||||||
Texas | LAACO | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 7 | ||||||||||
Self storage under construction | |||||||||||
Self-storage facilities | |||||||||||
Expected construction cost | $ 46,200,000 | $ 46,200,000 | $ 46,200,000 | ||||||||
Self storage under construction | New York | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities | facility | 1 | 1 | 1 | ||||||||
Development costs | $ 22,300,000 | $ 22,300,000 | $ 22,300,000 | ||||||||
Self Storage Facility in Valley Stream, NY | |||||||||||
Self-storage facilities | |||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||
Self Storage Facility in Valley Stream, NY | Construction | |||||||||||
Self-storage facilities | |||||||||||
Total Construction Costs | 39,000,000 | ||||||||||
Self Storage Facility in Vienna, VA | |||||||||||
Self-storage facilities | |||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||
Self Storage Facility in Vienna, VA | Construction | |||||||||||
Self-storage facilities | |||||||||||
Total Construction Costs | 21,800,000 | ||||||||||
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 | |||||||||||
Total consideration | $ 6,600,000 | ||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||
Self-storage facility in East Meadow, NY | Construction | |||||||||||
Self-storage facilities | |||||||||||
Total Construction Costs | 25,900,000 | ||||||||||
Self-storage facility in King of Prussia, PA | |||||||||||
Self-storage facilities | |||||||||||
Number of facilities, construction completed and opened | 1 | ||||||||||
Self-storage facility in King of Prussia, PA | Construction | |||||||||||
Self-storage facilities | |||||||||||
Total Construction Costs | 22,800,000 | ||||||||||
Self-storage Facility in 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 Bronx, NY | |||||||||||
Self-storage facilities | |||||||||||
Lease liability derecognized | $ 5,000,000 | ||||||||||
Right of use Assets derecognized | 4,100,000 | ||||||||||
2021 Acquisitions | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 66 | ||||||||||
Aggregate purchase price | $ 1,801,251,000 | ||||||||||
Intangible value of the in-place leases | 11,900,000 | 11,900,000 | 11,900,000 | ||||||||
Estimated life | 12 months | ||||||||||
2021 Acquisitions | Other Acquisitions | |||||||||||
Self-storage facilities | |||||||||||
Amortization expense | 1,700,000 | 7,500,000 | |||||||||
2021 Acquisitions | LAACO | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 57 | 57 | |||||||||
Intangible value of the in-place leases | 109,700,000 | $ 109,700,000 | $ 109,700,000 | ||||||||
Estimated life | 12 months | ||||||||||
Amortization expense | $ 27,400,000 | $ 82,200,000 | |||||||||
Number of joint ventures | item | 2 | 2 | |||||||||
2021 Acquisitions | Acquisitions | |||||||||||
Self-storage facilities | |||||||||||
Percentage of interest acquired | 50% | 50% | 50% | 50% | |||||||
2021 Acquisitions | Acquisitions | LAACO | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 50% | ||||||||||
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 | ||||||||||
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% | ||||||||||
2022 Acquisitions | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 3 | ||||||||||
Aggregate purchase price | $ 75,700,000 | ||||||||||
Intangible value of the in-place leases | $ 3,400,000 | $ 3,400,000 | $ 3,400,000 | ||||||||
Estimated life | 12 months | ||||||||||
2022 Acquisitions | Leases, Acquired-in-Place | |||||||||||
Self-storage facilities | |||||||||||
Amortization expense | $ 900,000 | $ 1,400,000 | |||||||||
2022 Acquisitions | Texas | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 1 | ||||||||||
2022 Acquisitions | Maryland | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 1 | ||||||||||
2022 Acquisitions | Georgia | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities acquired | facility | 1 | ||||||||||
2022 Acquisitions | Self-storage Facility in Bronx, NY | |||||||||||
Self-storage facilities | |||||||||||
Aggregate purchase price | $ 7,500,000 | ||||||||||
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 | 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 | ||||||||||
2022 Dispositions | LAACO | |||||||||||
Self-storage facilities | |||||||||||
Aggregate sale price | $ 44,000,000 | ||||||||||
Gains from sales of real estate, net | $ 0 | ||||||||||
Joint Venture | |||||||||||
Self-storage facilities | |||||||||||
Real estate property acquired, land subject to ground lease | $ 6,100,000 | ||||||||||
Total consideration | $ 3,400,000 | ||||||||||
Acquisition, gain (loss) recognized | $ 0 | ||||||||||
Ownership interest held by the entity (as a percent) | 90% | ||||||||||
Minority ownership interest (as a percent) | 0% | ||||||||||
Acquisition of noncontrolling interest | $ 2,700,000 | ||||||||||
Repayments of debt | $ 13,200,000 | ||||||||||
Joint Venture | Acquisitions | |||||||||||
Self-storage facilities | |||||||||||
Percentage of interest acquired | 20% | ||||||||||
Acquisition of remaining interest in real estate ventures (as a percent) | 10% | ||||||||||
Joint Venture | Self-storage facility in East Meadow, NY | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 51% | ||||||||||
Minority ownership interest (as a percent) | 49% | ||||||||||
Joint Venture | 2021 Acquisitions | LAACO | |||||||||||
Self-storage facilities | |||||||||||
Number of self-storage facilities | facility | 1 | ||||||||||
Cubesmart | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest by Parent | 99.40% | 99.40% | 99.40% | ||||||||
Cubesmart | Self Storage Facility in Valley Stream, NY | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 51% | ||||||||||
Cubesmart | Self Storage Facility in Vienna, VA | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 80% | ||||||||||
Cubesmart | Self Storage Facility in Newton, MA | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 100% | ||||||||||
Cubesmart | Self-storage facility in East Meadow, NY | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 100% | ||||||||||
Cubesmart | Self-storage facility in King of Prussia, PA | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 70% | ||||||||||
Cubesmart | Self-storage Facility in Arlington, VA | |||||||||||
Self-storage facilities | |||||||||||
Ownership interest held by the entity (as a percent) | 90% |
INVESTMENT ACTIVITY - Component
INVESTMENT ACTIVITY - Components contemplated in the acquisition of LAACO (Details) - LAACO - 2021 Acquisitions - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 09, 2021 | Sep. 30, 2022 | 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 | 167,557 | |
Partnership units (dollars per share) | $ 9,838 | $ 9,838 | |
Other income (expense) | |||
Capitalized costs: | |||
Payments and anticipated payments to LAACO management (expensed) (2) | $ 10,300 | $ 14,800 |
INVESTMENT ACTIVITY - Accountin
INVESTMENT ACTIVITY - Accounting for LAACO acquisition (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 09, 2021 |
Significant Acquisitions and Disposals [Line Items] | |||
Storage facilities, net | $ 6,077,431 | $ 6,097,670 | |
Cash and cash equivalents | 5,183 | 11,140 | |
Investment in real estate ventures, at equity | 107,755 | 119,751 | |
Assets held for sale | 4,264 | 49,313 | |
Other assets, net | 171,797 | 265,705 | |
Accounts payable, accrued expenses and other liabilities | (218,181) | (199,985) | |
Deferred revenue | (40,777) | (37,144) | |
Security deposits | (1,035) | (1,065) | |
Liabilities held for sale | $ (2,227) | $ (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 | 3 Months Ended | 9 Months Ended | 18 Months Ended | ||||||
Aug. 30, 2022 USD ($) facility | Oct. 05, 2021 USD ($) facility | Sep. 30, 2022 USD ($) facility property | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) facility property | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) property | Dec. 09, 2021 facility | |
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 107,755 | $ 107,755 | $ 119,751 | ||||||
Acquisitions of storage facilities | 89,004 | $ 65,455 | |||||||
Investment in real estate ventures | (16) | (28,256) | |||||||
Credit facility, outstanding | 86,000 | 86,000 | 209,900 | ||||||
Principal amount of debt | 2,800,000 | 2,800,000 | 2,800,000 | ||||||
ASSETS | |||||||||
Storage facilities, net | 6,077,431 | 6,077,431 | 6,097,670 | ||||||
Total assets | 6,371,170 | 6,371,170 | 6,548,079 | ||||||
Equity | |||||||||
CubeSmart | 2,851,654 | 2,851,654 | 2,871,563 | ||||||
Joint venture partners | 14,101 | 14,101 | 18,597 | ||||||
Total liabilities and equity | 6,371,170 | 6,371,170 | 6,548,079 | ||||||
Total revenues | 261,408 | $ 212,564 | 748,637 | 600,652 | |||||
Gains from sales of real estate, net | 28,815 | 28,815 | |||||||
Net loss | 113,440 | 90,569 | 210,300 | 184,250 | |||||
Company's share of net income (loss) | 46,558 | 816 | 47,532 | 1,152 | |||||
HVP V | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Amount of loan obtained | 101,800 | $ 101,800 | |||||||
HVP V | SOFR | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Interest rate (as percentage) | 2.05% | ||||||||
HVPSE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of assets sold | facility | 14 | ||||||||
Net proceeds from sale of assets | $ 150,100 | ||||||||
Aggregate amount of sale price of real estate property | 235,000 | ||||||||
Investment in real estate ventures | 49,900 | ||||||||
Amount of cash retained by venture | 3,500 | $ 3,500 | |||||||
Equity | |||||||||
Gains from sales of real estate, net | 114,100 | ||||||||
HVPSE | Term Loan Facility | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Amount of debt repaid | $ 81,600 | ||||||||
HVP IV | Secured Debt Due April 2025 | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Outstanding debt | 221,600 | $ 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 | $ 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 2.58% due on February 05, 2028 | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Amount of loan obtained | $ 105,000 | $ 105,000 | |||||||
Arizona | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||
New York | HVP V | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 1 | 1 | |||||||
Maryland | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||
Connecticut | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 3 | 3 | |||||||
Connecticut | HHFNE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 3 | 3 | |||||||
Massachusetts | HHFNE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 6 | 6 | |||||||
Minnesota | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 1 | 1 | |||||||
Rhode Island | HHFNE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||
Vermont | HHFNE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||
New Jersey | HVP V | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 3 | 3 | |||||||
Illinois | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 5 | 5 | |||||||
Florida | HVP V | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 2 | 2 | |||||||
Florida | HVPSE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 2 | ||||||||
Florida | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 4 | 4 | |||||||
Texas | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 8 | 8 | |||||||
Texas | HHF | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 27 | 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 | 1 | |||||||
South Carolina | HVPSE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 4 | ||||||||
Georgia | HVPSE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | facility | 8 | ||||||||
Georgia | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 2 | 2 | |||||||
Pennsylvania | HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Number of storage facilities owned by investee | property | 1 | 1 | |||||||
Ventures | |||||||||
ASSETS | |||||||||
Storage facilities, net | $ 747,745 | $ 747,745 | 850,250 | ||||||
Other assets | 17,362 | 17,362 | 34,760 | ||||||
Total assets | 765,107 | 765,107 | 885,010 | ||||||
LIABILITIES AND CAPITAL | |||||||||
Debt | 468,335 | 468,335 | 526,972 | ||||||
Other liabilities | 22,240 | 22,240 | 14,500 | ||||||
Equity | |||||||||
CubeSmart | 74,836 | 74,836 | 86,083 | ||||||
Joint venture partners | 199,696 | 199,696 | 257,455 | ||||||
Total liabilities and equity | 765,107 | 765,107 | 885,010 | ||||||
Total revenues | 26,915 | 24,273 | 78,511 | 64,337 | |||||
Operating expenses | (11,340) | (10,368) | (33,321) | (28,464) | |||||
Other (expenses) income | (137) | (138) | (375) | (988) | |||||
Interest expense, net | (4,225) | (2,714) | (11,678) | (8,922) | |||||
Depreciation and amortization | (9,124) | (9,719) | (29,052) | (27,439) | |||||
Gains from sales of real estate, net | 114,107 | 114,107 | |||||||
Net loss | 116,196 | 1,334 | 118,192 | (1,476) | |||||
Ventures | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 107,755 | $ 107,755 | $ 119,751 | ||||||
Number of storage facilities owned by investee | property | 77 | 77 | 90 | ||||||
Equity | |||||||||
Company's share of net income (loss) | $ 46,558 | $ 816 | $ 47,532 | $ 1,152 | |||||
Fontana | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 13,929 | $ 13,929 | $ 14,225 | ||||||
Ownership interest in partnership (as a percent) | 50% | 50% | 50% | ||||||
Equity method investment, difference between carrying amount and underlying equity | $ 13,200 | $ 13,200 | |||||||
Number of storage facilities owned by investee | 1 | 1 | 1 | 1 | |||||
RCSS | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 21,159 | $ 21,159 | $ 21,536 | ||||||
Ownership interest in partnership (as a percent) | 50% | 50% | 50% | ||||||
Equity method investment, difference between carrying amount and underlying equity | $ 19,700 | $ 19,700 | |||||||
Number of storage facilities owned by investee | property | 1 | 1 | 1 | ||||||
HVP V | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 14,703 | $ 14,703 | $ 16,080 | ||||||
Ownership interest in partnership (as a percent) | 20% | 20% | |||||||
Number of storage facilities owned by investee | property | 6 | 6 | 5 | ||||||
Acquisitions of storage facilities | $ 176,900 | ||||||||
Intangible value of the in-place leases | $ 2,200 | $ 2,200 | |||||||
Contribution To Real Estate Venture | $ 22,700 | $ 22,700 | |||||||
HVPSE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 4,541 | ||||||||
Ownership interest in partnership (as a percent) | 10% | 10% | |||||||
Number of storage facilities owned by investee | property | 14 | ||||||||
HVP IV | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 20,488 | $ 20,488 | $ 23,223 | ||||||
Ownership interest in partnership (as a percent) | 20% | 20% | |||||||
Number of storage facilities owned by investee | property | 28 | 28 | 28 | ||||||
Contribution To Real Estate Venture | $ 32,000 | $ 32,000 | |||||||
HHFNE | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 1,158 | $ 1,158 | $ 1,291 | ||||||
Ownership interest in partnership (as a percent) | 10% | 10% | |||||||
Number of storage facilities owned by investee | property | 13 | 13 | 13 | ||||||
Contribution To Real Estate Venture | $ 3,800 | $ 3,800 | |||||||
HHF | |||||||||
Investment in Unconsolidated Real Estate Venture | |||||||||
Investment in real estate entities | $ 36,318 | $ 36,318 | $ 38,855 | ||||||
Ownership interest in partnership (as a percent) | 50% | 50% | |||||||
Number of storage facilities owned by investee | property | 28 | 28 | 28 | ||||||
Interest on real estate venture debt | 2.58% | 2.58% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $97,480 and $12,760 | $ 20,951 | $ 108,794 |
Accounts receivable, net | 8,190 | 8,145 |
Prepaid property taxes | 7,298 | 6,938 |
Prepaid property and casualty insurance | 4,712 | 3,352 |
Amounts due from affiliates (see note 15) | 14,819 | 15,417 |
Assets related to deferred compensation arrangements | 54,039 | 60,297 |
Right-of-use assets - operating leases | 49,761 | 54,741 |
Ground lease receivable | 6,124 | |
Other | 5,903 | 8,021 |
Total | 171,797 | 265,705 |
Accumulated amortization | $ 97,480 | $ 12,760 |
UNSECURED SENIOR NOTES (Details
UNSECURED SENIOR NOTES (Details) $ in Thousands | 9 Months Ended | ||||
Apr. 04, 2017 USD ($) | Oct. 26, 2015 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | Jan. 24, 2019 | |
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 2,800,000 | $ 2,800,000 | |||
Total unsecured senior notes, net | 2,771,315 | 2,768,209 | |||
CubeSmart, L.P. and Subsidiaries | |||||
Mortgage loans and Notes payable | |||||
Total unsecured senior notes, net | 2,771,315 | 2,768,209 | |||
Senior Notes | |||||
Mortgage loans and Notes payable | |||||
Less: Discount on issuance of notes, net | (12,215) | (13,455) | |||
Less: Loan procurement costs, net | (16,470) | (18,336) | |||
Total unsecured senior notes, net | $ 2,771,315 | 2,768,209 | |||
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% | ||||
Senior notes 4.000% due 2025 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | |
Interest rate (as a percent) | 4% | 4% | 4% | ||
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 | 550,000 | |||
Interest rate (as a percent) | 2.25% | ||||
Effective interest rate (as a percent) | 2.33% | ||||
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% | 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% | ||||
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% | ||||
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 | $ 500,000 | |||
Interest rate (as a percent) | 2.50% | ||||
Effective interest rate (as a percent) | 2.59% |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2021 | Jun. 19, 2019 | |
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Debt amount | $ 2,800,000 | $ 2,800,000 | |
Revolver | |||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Remaining borrowing capacity | 663,400 | ||
Outstanding letter of credit | $ 600 | ||
Credit Facility | Minimum | |||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Fixed charge coverage ratio | 1.5 | ||
Credit Facility | Maximum | |||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Total indebtedness to total asset value ratio (as a percent) | 60% | ||
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Mortgage loans and Notes payable | ||
Principal amount of debt | $ 2,800,000 | $ 2,800,000 |
Total mortgage loans and notes payable | 164,116 | 167,676 |
Net book value of self-storage facilities | 6,077,431 | 6,097,670 |
Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | 154,579 | |
Plus: Unamortized fair value adjustment | 10,910 | |
Less: Loan procurement costs, net | (1,373) | (1,690) |
Total mortgage loans and notes payable | 164,116 | 167,676 |
Net book value of self-storage facilities | $ 444,600 | 450,700 |
Revolver | ||
Mortgage loans and Notes payable | ||
Effective interest rate (as a percent) | 4.24% | |
Nashville V, TN | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 2,163 | 2,206 |
Effective interest rate (as a percent) | 3.85% | |
New York, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 28,841 | 29,340 |
Effective interest rate (as a percent) | 3.51% | |
Annapolis I, MD | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 4,955 | 5,099 |
Effective interest rate (as a percent) | 3.78% | |
Brooklyn XV, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 15,177 | 15,423 |
Effective interest rate (as a percent) | 2.15% | |
Long Island City IV, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 12,349 | 12,580 |
Effective interest rate (as a percent) | 2.15% | |
Long Island City II, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 18,393 | 18,714 |
Effective interest rate (as a percent) | 2.25% | |
Long Island City III, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Principal amount of debt | $ 154,579 | 156,385 |
Carrying value | $ 18,401 | 18,723 |
Effective interest rate (as a percent) | 2.25% | |
Flushing II, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 54,300 | 54,300 |
Plus: Unamortized fair value adjustment | $ 10,910 | $ 12,981 |
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 | Sep. 30, 2022 | Dec. 31, 2021 |
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
Total mortgage loans and notes payable, net | $ 164,116 | $ 167,676 |
Mortgage Loans | ||
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
2022 | 620 | |
2023 | 32,591 | |
2024 | 32,329 | |
2025 | 979 | |
2026 | 33,760 | |
2027 and thereafter | 54,300 | |
Total mortgage payments | 154,579 | |
Plus: Unamortized fair value adjustment | 10,910 | |
Less: Loan procurement costs, net | (1,373) | (1,690) |
Total mortgage loans and notes payable, net | $ 164,116 | $ 167,676 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 2,840,126 | $ 1,860,033 | $ 2,890,160 | $ 1,840,848 |
Reclassification of realized losses on interest rate swaps | 20 | 20 | 60 | 60 |
Balance | 2,865,755 | 1,945,501 | 2,865,755 | 1,945,501 |
Unrealized losses on interest rate swaps | ||||
Changes in accumulated other comprehensive income by component | ||||
Reclassification of realized losses on interest rate swaps | 60 | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (575) | |||
Balance | (515) | (515) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (531) | (594) | (570) | (632) |
Balance | (511) | $ (575) | (511) | $ (575) |
AOCI Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 4 | $ 4 |
RISK MANAGEMENT AND USE OF FI_2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 24, 2019 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Dec. 24, 2018 | |
Derivative financial instruments | |||||
Realized losses reclassified from accumulated other comprehensive loss | $ 20 | $ 60 | |||
Amount estimated to be reclassified as an increase to interest expense | 100 | ||||
Senior notes, principal amount | 2,800,000 | 2,800,000 | $ 2,800,000 | ||
Interest rate swap | |||||
Derivative financial instruments | |||||
Notional Amount | $ 150,000 | ||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Termination Premium | $ 800 | ||||
Senior Notes 4.375 % Due 2029 | |||||
Derivative financial instruments | |||||
Senior notes, principal amount | $ 350,000 | $ 350,000 | $ 350,000 | ||
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | ||
Designated as an accounting hedge | Cash flow | |||||
Derivative financial instruments | |||||
Settlement of hedge transactions | $ 800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
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 | 3,021,431 | 3,145,785 |
Estimated fair value of total debt | $ 2,570,180 | $ 3,256,128 |
NONCONTROLLING INTERESTS - Inte
NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 17, 2021 USD ($) | Apr. 16, 2021 USD ($) | Mar. 31, 2021 facility | Sep. 30, 2022 USD ($) facility | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total assets | $ 6,371,170 | $ 6,548,079 | |||
Total liabilities | $ 3,446,907 | $ 3,549,699 | |||
Joint Venture | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest held by the entity (as a percent) | 90% | ||||
VIE | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 6 | ||||
Total assets | $ 163,113 | ||||
Total liabilities | $ 80,916 | ||||
Astoria Investors, LLC | |||||
Variable Interest Entity [Line Items] | |||||
Ownership interest held by the entity (as a percent) | 70% | ||||
Contribution To Real Estate Venture | $ 14,700 | ||||
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] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 70% | ||||
Total assets | $ 22,595 | ||||
Total liabilities | 7,991 | ||||
Carrying amount of mortgage loans | 7,700 | ||||
Amount of mortgage loan commitment | $ 27,100 | ||||
CS Vienna LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 1 | ||||
Ownership interest held by the entity (as a percent) | 80% | ||||
Total assets | $ 32,944 | ||||
Total liabilities | 35,160 | ||||
Carrying amount of mortgage loans | 34,900 | ||||
CS 750 W Merrick Rd LLC | |||||
Variable Interest Entity [Line Items] | |||||
Option to put ownership interest in the venture | 17,100 | ||||
Accretion Liability | $ 17,100 | ||||
CS 750 W Merrick Rd LLC | VIE | |||||
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% | ||||
Total assets | $ 37,625 | ||||
Total liabilities | $ 17,255 | ||||
CS Valley Forge Village Storage LLC | VIE | |||||
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% | ||||
Total assets | $ 20,667 | ||||
Total liabilities | 14,633 | ||||
Carrying amount of mortgage loans | $ 14,600 | ||||
SH3, 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) | 90% | ||||
Total assets | $ 38,141 | ||||
Total liabilities | $ 262 | ||||
SH3, LLC | VIE | |||||
Variable Interest Entity [Line Items] | |||||
Number of self-storage facilities owned and operated | facility | 2 | ||||
C S Lock Up Anoka LLC | VIE | |||||
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% | 50% | |||
Contribution To Real Estate Venture | $ 3,400 | ||||
Total assets | $ 11,141 | ||||
Total liabilities | 5,615 | ||||
Carrying amount of mortgage loans | 5,500 | ||||
Amount of mortgage loan commitment | $ 6,100 | ||||
C S Lock Up Anoka LLC | VIE | Minnesota | |||||
Variable Interest Entity [Line Items] | |||||
Purchase Price | $ 12,000 |
NONCONTROLLING INTERESTS - Oper
NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | |
Operating Partnership Ownership | |||||||
OP Units outstanding which are not owned by the general partner (as a percent) | 0.60% | 0.80% | |||||
OP units outstanding (in shares) | 1,460,520 | 7,008,397 | 1,901,595 | ||||
Adjustment for noncontrolling interests in the Operating Partnership | $ 3,990 | $ 13,349 | $ 10,356 | $ (14,764) | $ (63,025) | $ (32,102) | |
CubeSmart, L.P. and Subsidiaries | |||||||
Operating Partnership Ownership | |||||||
Adjustment for noncontrolling interests in the Operating Partnership | $ 3,990 | $ 13,349 | $ 10,356 | $ (14,764) | $ (63,025) | $ (32,102) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Insurance Recovery (Details) $ in Millions | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |
Loss contingency provision | $ 1.6 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Lease agreements with related parties | |||||
RELATED PARTY TRANSACTIONS | |||||
Ground lease income | $ 0.1 | $ 0 | $ 0.1 | $ 0 | |
Joint ventures related to affiliated real estate investments | |||||
RELATED PARTY TRANSACTIONS | |||||
Management fees | 1.3 | 1.3 | 4 | 3.6 | |
Amounts due to the Company from related parties | 14.8 | 14.8 | $ 15.4 | ||
Mortgage loans receivable from consolidated joint ventures | 62.7 | 62.7 | $ 32.4 | ||
Joint ventures related to affiliated real estate investments | Ventures | |||||
RELATED PARTY TRANSACTIONS | |||||
Acquisition fees | $ 0.4 | $ 0.4 | $ 0.6 | $ 1.1 |
EARNINGS PER SHARE AND UNIT A_3
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Earnings Per Share and Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Basic and diluted earnings per common share | |||||||||
Net loss | $ 113,440 | $ 90,569 | $ 210,300 | $ 184,250 | |||||
Noncontrolling interests in the Operating Partnership | (733) | (3,149) | (1,404) | (6,466) | |||||
Noncontrolling interest in subsidiaries | 181 | 230 | 505 | 350 | |||||
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 112,888 | $ 87,650 | $ 209,401 | $ 178,134 | |||||
Weighted average basic shares outstanding (in shares) | 225,023,000 | 202,194,000 | 224,883,000 | 200,934,000 | |||||
Share options and restricted share units (in shares) | 943,000 | 1,603,000 | 998,000 | 1,357,000 | |||||
Weighted-average diluted shares outstanding (in shares) | 225,966,000 | 203,797,000 | 225,881,000 | 202,291,000 | |||||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.89 | |||||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.88 | |||||
Basic and diluted earnings per common unit | |||||||||
Net Income | $ 210,300 | $ 184,250 | |||||||
Noncontrolling interests in the Operating Partnership | $ (733) | $ (3,149) | (1,404) | (6,466) | |||||
Noncontrolling interest in subsidiaries | 505 | 350 | |||||||
Net income attributable to common unitholders | $ 209,401 | $ 178,134 | |||||||
Weighted average basic shares outstanding (in shares) | 225,023,000 | 202,194,000 | 224,883,000 | 200,934,000 | |||||
Share options and restricted share units (in shares) | 943,000 | 1,603,000 | 998,000 | 1,357,000 | |||||
Weighted-average diluted shares outstanding (in shares) | 225,966,000 | 203,797,000 | 225,881,000 | 202,291,000 | |||||
Basic earnings per unit attributable to common unitholders | $ 0.93 | $ 0.89 | |||||||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.88 | |||||
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 300,000 | 0 | 300,000 | 0 | |||||
Common stock, cash dividends declared (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.34 | $ 0.34 | $ 0.34 | $ 1.29 | $ 1.02 | |
OP units outstanding (in shares) | 1,460,520 | 7,008,397 | 1,460,520 | 7,008,397 | 1,901,595 | ||||
Common shares, shares outstanding | 224,568,376 | 224,568,376 | 223,917,993 | ||||||
CubeSmart, L.P. and Subsidiaries | |||||||||
Basic and diluted earnings per common share | |||||||||
Net loss | $ 210,300 | $ 184,250 | |||||||
Noncontrolling interests in the Operating Partnership | $ (733) | $ (3,149) | |||||||
Weighted average basic shares outstanding (in shares) | 225,023,000 | 202,194,000 | |||||||
Share options and restricted share units (in shares) | 943,000 | 1,603,000 | |||||||
Weighted-average diluted shares outstanding (in shares) | 225,966,000 | 203,797,000 | |||||||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | |||||||
Basic and diluted earnings per common unit | |||||||||
Net Income | $ 113,440 | $ 90,569 | |||||||
Noncontrolling interests in the Operating Partnership | (733) | (3,149) | |||||||
Noncontrolling interest in subsidiaries | 181 | 230 | |||||||
Net income attributable to common unitholders | $ 112,888 | $ 87,650 | |||||||
Weighted average basic shares outstanding (in shares) | 225,023,000 | 202,194,000 | |||||||
Share options and restricted share units (in shares) | 943,000 | 1,603,000 | |||||||
Weighted-average diluted shares outstanding (in shares) | 225,966,000 | 203,797,000 | |||||||
Basic earnings per unit attributable to common unitholders | $ 0.50 | $ 0.43 | |||||||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Newly Amended and Restated Credit Facility - Amended Revolver - Subsequent event $ in Millions | Oct. 26, 2022 USD ($) |
Subsequent Events | |
Maximum borrowing capacity | $ 850 |
SOFR | |
Subsequent Events | |
Interest rate (as percentage) | 0.775% |
Facility fee (as a percent) | 0.15% |
Adjustment fee (as a percent) | 0.10% |
CONSOLIDATED BALANCE SHEETS (LP
CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Storage properties | $ 7,284,661 | $ 7,183,494 |
Less: Accumulated depreciation | (1,207,230) | (1,085,824) |
Storage properties, net (including VIE assets of $163,299 and $149,467, respectively) | 6,077,431 | 6,097,670 |
Cash and cash equivalents | 5,183 | 11,140 |
Restricted cash | 3,021 | 2,178 |
Loan procurement costs, net of amortization | 1,719 | 2,322 |
Investment in real estate ventures, at equity | 107,755 | 119,751 |
Assets held for sale | 4,264 | 49,313 |
Other assets, net | 171,797 | 265,705 |
Total assets | 6,371,170 | 6,548,079 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,771,315 | 2,768,209 |
Revolving credit facility | 86,000 | 209,900 |
Mortgage loans and notes payable, net | 164,116 | 167,676 |
Lease liabilities - finance leases | 65,764 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 218,181 | 199,985 |
Distributions payable | 97,492 | 97,417 |
Deferred revenue | 40,777 | 37,144 |
Security deposits | 1,035 | 1,065 |
Liabilities held for sale | 2,227 | 2,502 |
Total liabilities | 3,446,907 | 3,549,699 |
Limited Partnership interests of third parties | 58,508 | 108,220 |
Commitments and contingencies | ||
Capital | ||
Accumulated other comprehensive loss | (511) | (570) |
Total liabilities and equity | 6,371,170 | 6,548,079 |
CubeSmart, L.P. and Subsidiaries | ||
ASSETS | ||
Storage properties | 7,284,661 | 7,183,494 |
Less: Accumulated depreciation | (1,207,230) | (1,085,824) |
Storage properties, net (including VIE assets of $163,299 and $149,467, respectively) | 6,077,431 | 6,097,670 |
Cash and cash equivalents | 5,183 | 11,140 |
Restricted cash | 3,021 | 2,178 |
Loan procurement costs, net of amortization | 1,719 | 2,322 |
Investment in real estate ventures, at equity | 107,755 | 119,751 |
Assets held for sale | 4,264 | 49,313 |
Other assets, net | 171,797 | 265,705 |
Total assets | 6,371,170 | 6,548,079 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,771,315 | 2,768,209 |
Revolving credit facility | 86,000 | 209,900 |
Mortgage loans and notes payable, net | 164,116 | 167,676 |
Lease liabilities - finance leases | 65,764 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 218,181 | 199,985 |
Distributions payable | 97,492 | 97,417 |
Deferred revenue | 40,777 | 37,144 |
Security deposits | 1,035 | 1,065 |
Liabilities held for sale | 2,227 | 2,502 |
Total liabilities | 3,446,907 | 3,549,699 |
Limited Partnership interests of third parties | 58,508 | 108,220 |
Commitments and contingencies | ||
Capital | ||
Operating Partner | 2,852,165 | 2,872,133 |
Accumulated other comprehensive loss | (511) | (570) |
Total CubeSmart, L.P. capital | 2,851,654 | 2,871,563 |
Noncontrolling interests in subsidiaries | 14,101 | 18,597 |
Total capital | 2,865,755 | 2,890,160 |
Total liabilities and equity | $ 6,371,170 | $ 6,548,079 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Storage facilities, net | $ 6,077,431 | $ 6,097,670 |
VIE | ||
Storage facilities, net | 163,299 | 149,467 |
CubeSmart, L.P. and Subsidiaries | ||
Storage facilities, net | 6,077,431 | 6,097,670 |
CubeSmart, L.P. and Subsidiaries | VIE | ||
Storage facilities, net | $ 163,299 | $ 149,467 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
REVENUES | ||||
Rental income | $ 226,837 | $ 182,409 | $ 651,341 | $ 515,244 |
Total revenues | 261,408 | 212,564 | 748,637 | 600,652 |
OPERATING EXPENSES | ||||
Property operating expenses | 76,728 | 64,065 | 220,767 | 189,044 |
Depreciation and amortization | 79,574 | 55,871 | 241,177 | 163,820 |
General and administrative | 13,390 | 12,095 | 41,640 | 34,571 |
Total operating expenses | 169,692 | 132,031 | 503,584 | 387,435 |
Interest: | ||||
Interest expense on loans | (23,850) | (19,122) | (69,729) | (57,468) |
Loan procurement amortization expense | (969) | (1,012) | (2,885) | (3,059) |
Equity in earnings of real estate ventures | 46,558 | 816 | 47,532 | 1,152 |
Gains from sales of real estate, net | 28,815 | 28,815 | ||
Other | (15) | 539 | (9,671) | 1,593 |
Total other income (expense) | 21,724 | 10,036 | (34,753) | (28,967) |
NET INCOME | 210,300 | 184,250 | ||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interest in subsidiaries | 505 | 350 | ||
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 210,805 | 184,600 | ||
Operating Partnership interests of third parties | $ (733) | $ (3,149) | (1,404) | (6,466) |
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 209,401 | $ 178,134 | ||
Basic earnings per unit attributable to common unitholders | $ 0.93 | $ 0.89 | ||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | $ 0.93 | $ 0.88 |
Weighted-average basic units outstanding (in units) | 225,023 | 202,194 | 224,883 | 200,934 |
Weighted-average diluted units outstanding (in units) | 225,966 | 203,797 | 225,881 | 202,291 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 25,619 | $ 21,892 | $ 71,760 | $ 62,414 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | 8,952 | 8,263 | 25,536 | 22,994 |
CubeSmart, L.P. and Subsidiaries | ||||
REVENUES | ||||
Rental income | 226,837 | 182,409 | ||
Total revenues | 261,408 | 212,564 | ||
OPERATING EXPENSES | ||||
Property operating expenses | 76,728 | 64,065 | ||
Depreciation and amortization | 79,574 | 55,871 | ||
General and administrative | 13,390 | 12,095 | ||
Total operating expenses | 169,692 | 132,031 | ||
Interest: | ||||
Interest expense on loans | (23,850) | (19,122) | ||
Loan procurement amortization expense | (969) | (1,012) | ||
Equity in earnings of real estate ventures | 46,558 | 816 | $ 47,532 | $ 1,152 |
Gains from sales of real estate, net | 28,815 | |||
Other | (15) | 539 | ||
Total other income (expense) | 21,724 | 10,036 | ||
NET INCOME | 113,440 | 90,569 | ||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Noncontrolling interest in subsidiaries | 181 | 230 | ||
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 113,621 | 90,799 | ||
Operating Partnership interests of third parties | (733) | (3,149) | ||
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 112,888 | $ 87,650 | ||
Basic earnings per unit attributable to common unitholders | $ 0.50 | $ 0.43 | ||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.50 | $ 0.43 | ||
Weighted-average basic units outstanding (in units) | 225,023 | 202,194 | ||
Weighted-average diluted units outstanding (in units) | 225,966 | 203,797 | ||
CubeSmart, L.P. and Subsidiaries | Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 25,619 | $ 21,892 | ||
CubeSmart, L.P. and Subsidiaries | Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 8,952 | $ 8,263 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Other comprehensive income: | ||
Reclassification of realized losses on interest rate swaps | $ 20 | $ 20 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 |
COMPREHENSIVE INCOME | 113,460 | 90,589 |
Comprehensive income attributable to Operating Partnership interests of third parties | (733) | (3,150) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 181 | 230 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 112,908 | 87,669 |
CubeSmart, L.P. and Subsidiaries | ||
NET INCOME | 113,440 | 90,569 |
Other comprehensive income: | ||
Reclassification of realized losses on interest rate swaps | 20 | 20 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 |
COMPREHENSIVE INCOME | 113,460 | 90,589 |
Comprehensive income attributable to Operating Partnership interests of third parties | (733) | (3,150) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 181 | 230 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 112,908 | $ 87,669 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
Increase (Decrease) in Partners' Capital | ||||||
Balance of Noncontrolling Interests in the Operating Partnership | $ 108,220 | |||||
Contributions from noncontrolling interests in subsidiaries | $ 3,340 | $ 6,300 | $ 5,104 | |||
Distributions paid to noncontrolling interest in subsidiaries | (5,237) | $ (61) | (2,033) | (31) | (38) | $ (69) |
Adjustment for Operating Partnership interests of third parties | 3,990 | 13,349 | 10,356 | (14,764) | (63,025) | (32,102) |
Net income (loss) | 112,707 | 58,215 | 37,974 | 87,420 | 48,598 | 41,766 |
Other comprehensive income (loss), net | 20 | 20 | 19 | 19 | 19 | 19 |
Balance of Noncontrolling Interests in the Operating Partnership | 58,508 | |||||
Noncontrolling Interests in the Operating Partnership | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance of Noncontrolling Interests in the Operating Partnership | 62,393 | 75,991 | 108,220 | 337,417 | 278,649 | 249,414 |
Adjustment for Operating Partnership interests of third parties | (3,990) | (13,349) | (10,356) | 14,764 | 63,025 | 32,102 |
Net income (loss) | 733 | 379 | 292 | 3,149 | 1,768 | 1,549 |
Other comprehensive income (loss), net | 1 | 1 | 1 | 1 | ||
Balance of Noncontrolling Interests in the Operating Partnership | 58,508 | 62,393 | 75,991 | 339,557 | 337,417 | 278,649 |
CubeSmart, L.P. and Subsidiaries | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance | 2,840,126 | 2,863,455 | 2,890,160 | 1,860,033 | 1,886,199 | 1,840,848 |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | |||||
Contributions from noncontrolling interests in subsidiaries | 3,340 | 6,300 | 5,104 | |||
Distributions paid to noncontrolling interest in subsidiaries | (5,237) | (61) | (2,033) | (31) | (38) | (69) |
Issuance of common OP units | 5,055 | 42 | 123 | 57,845 | 42,429 | 99,688 |
Issuance of restricted OP units | 1 | |||||
Conversion from OP units to shares | 21,538 | 13,393 | 3,549 | 1,913 | ||
Exercise of OP unit options | 364 | 1,226 | 2,618 | 4,075 | 1,172 | |
Amortization of restricted OP units | 1,621 | 1,373 | 519 | 1,424 | 1,383 | 705 |
OP unit compensation expense | 636 | 635 | 636 | 559 | 544 | 609 |
Adjustment for Operating Partnership interests of third parties | 3,990 | 13,349 | 10,356 | (14,764) | (63,025) | (32,102) |
Net income (loss) | 112,707 | 58,215 | 37,974 | 87,420 | 48,598 | 41,766 |
Other comprehensive income (loss), net | 20 | 20 | 19 | 19 | 19 | 19 |
Common OP unit distributions | (96,867) | (96,819) | (96,817) | (69,315) | (68,804) | (68,350) |
Balance | 2,865,755 | 2,840,126 | 2,863,455 | 1,945,501 | 1,860,033 | 1,886,199 |
Balance of Noncontrolling Interests in the Operating Partnership | 58,508 | |||||
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interests in the Operating Partnership | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance of Noncontrolling Interests in the Operating Partnership | 62,393 | 75,991 | 108,220 | 337,417 | 278,649 | 249,414 |
Conversion from OP units to shares | (21,538) | (13,393) | (3,549) | (1,913) | ||
Adjustment for Operating Partnership interests of third parties | (3,990) | (13,349) | (10,356) | 14,764 | 63,025 | 32,102 |
Net income (loss) | 733 | 379 | 292 | 3,149 | 1,768 | 1,549 |
Other comprehensive income (loss), net | 1 | 1 | 1 | 1 | ||
Common OP unit distributions | (628) | (628) | (628) | (2,381) | (2,477) | (2,504) |
Balance of Noncontrolling Interests in the Operating Partnership | 58,508 | 62,393 | 75,991 | 339,557 | 337,417 | 278,649 |
CubeSmart, L.P. and Subsidiaries | Total Shareholders' Equity | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance | 2,823,947 | 2,847,072 | 2,871,563 | 1,846,524 | 1,877,602 | 1,832,216 |
Issuance of common OP units | 5,055 | 42 | 123 | 57,845 | 42,429 | 99,688 |
Issuance of restricted OP units | 1 | |||||
Conversion from OP units to shares | 21,538 | 13,393 | 3,549 | 1,913 | ||
Exercise of OP unit options | 364 | 1,226 | 2,618 | 4,075 | 1,172 | |
Amortization of restricted OP units | 1,621 | 1,373 | 519 | 1,424 | 1,383 | 705 |
OP unit compensation expense | 636 | 635 | 636 | 559 | 544 | 609 |
Adjustment for Operating Partnership interests of third parties | 3,990 | 13,349 | 10,356 | (14,764) | (63,025) | (32,102) |
Net income (loss) | 112,888 | 58,358 | 38,155 | 87,650 | 48,752 | 41,732 |
Other comprehensive income (loss), net | 20 | 20 | 19 | 19 | 19 | 19 |
Common OP unit distributions | (96,867) | (96,819) | (96,817) | (69,315) | (68,804) | (68,350) |
Balance | 2,851,654 | 2,823,947 | 2,847,072 | 1,925,953 | 1,846,524 | 1,877,602 |
CubeSmart, L.P. and Subsidiaries | Operating Partner | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance | $ 2,824,478 | $ 2,847,623 | $ 2,872,133 | $ 1,847,118 | $ 1,878,215 | $ 1,832,848 |
Balance (in units) | 224,453 | 224,434 | 223,918 | 201,769 | 200,422 | 197,406 |
Issuance of common OP units | $ 5,055 | $ 42 | $ 123 | $ 57,845 | $ 42,429 | $ 99,688 |
Issuance of common OP units (in units) | 102 | 1,100 | 1,046 | 2,837 | ||
Issuance of restricted OP units | $ 1 | |||||
Issuance of restricted OP units (in units) | 1 | 19 | 35 | 2 | 31 | 32 |
Conversion from OP units to shares | $ 21,538 | $ 13,393 | $ 3,549 | $ 1,913 | ||
Conversion from OP units to shares (in units) | 441 | 276 | 81 | 55 | ||
Exercise of OP unit options | $ 364 | $ 1,226 | $ 2,618 | $ 4,075 | $ 1,172 | |
Exercise of OP unit options (in units) | 12 | 40 | 138 | 189 | 92 | |
Amortization of restricted OP units | $ 1,621 | $ 1,373 | $ 519 | $ 1,424 | $ 1,383 | $ 705 |
OP unit compensation expense | 636 | 635 | 636 | 559 | 544 | 609 |
Adjustment for Operating Partnership interests of third parties | 3,990 | 13,349 | 10,356 | (14,764) | (63,025) | (32,102) |
Net income (loss) | 112,888 | 58,358 | 38,155 | 87,650 | 48,752 | 41,732 |
Common OP unit distributions | (96,867) | (96,819) | (96,817) | (69,315) | (68,804) | (68,350) |
Balance | $ 2,852,165 | $ 2,824,478 | $ 2,847,623 | $ 1,926,528 | $ 1,847,118 | $ 1,878,215 |
Balance (in units) | 224,568 | 224,453 | 224,434 | 203,285 | 201,769 | 200,422 |
CubeSmart, L.P. and Subsidiaries | Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance | $ (531) | $ (551) | $ (570) | $ (594) | $ (613) | $ (632) |
Other comprehensive income (loss), net | 20 | 20 | 19 | 19 | 19 | 19 |
Balance | (511) | (531) | (551) | (575) | (594) | (613) |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interest in Subsidiaries | ||||||
Increase (Decrease) in Partners' Capital | ||||||
Balance | 16,179 | 16,383 | 18,597 | 13,509 | 8,597 | 8,632 |
Contributions from noncontrolling interests in subsidiaries | 3,340 | 6,300 | 5,104 | |||
Distributions paid to noncontrolling interest in subsidiaries | (5,237) | (61) | (2,033) | (31) | (38) | (69) |
Net income (loss) | (181) | (143) | (181) | (230) | (154) | 34 |
Balance | $ 14,101 | $ 16,179 | $ 16,383 | $ 19,548 | $ 13,509 | $ 8,597 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (LP cube) - $ / shares | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 |
CubeSmart, L.P. and Subsidiaries | |||||
Common OP unit distributions (in dollars per share) | $ 0.43 | $ 0.43 | $ 0.43 | $ 0.34 | $ 0.34 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities | ||
Net loss | $ 210,300 | $ 184,250 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 244,062 | 166,879 |
Non-cash portion of interest expense related to finance leases | (37) | 208 |
Equity in earnings of real estate ventures | (47,532) | (1,152) |
Gains from sales of real estate, net | (28,815) | |
Equity compensation expense | 6,804 | 6,067 |
Accretion of fair market value adjustment of debt | (830) | (1,630) |
Changes in other operating accounts: | ||
Other assets | 4,247 | (7,034) |
Accounts payable and accrued expenses | 25,982 | 19,397 |
Other liabilities | 3,500 | 4,770 |
Net cash provided by operating activities | 446,496 | 342,940 |
Investing Activities | ||
Acquisitions of storage properties | (89,004) | (65,455) |
Additions and improvements to storage properties | (27,493) | (27,928) |
Development costs | (17,445) | (60,783) |
Investment in real estate ventures | (16) | (28,256) |
Cash distributed from real estate ventures | 59,544 | 15,125 |
Proceeds from sale of real estate, net | 43,193 | 37,348 |
Net cash used in investing activities | (31,221) | (129,949) |
Proceeds from: | ||
Revolving credit facility | 500,640 | 667,658 |
Principal payments on: | ||
Revolving credit facility | (624,540) | (785,458) |
Mortgage loans and notes payable | (1,806) | (45,791) |
Loan procurement costs | (136) | |
Cash paid upon vesting of restricted OP units | (1,384) | (843) |
Contributions from noncontrolling interests in subsidiaries | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,331) | (138) |
Distributions paid to common OP unitholders | (290,238) | (204,522) |
Net cash provided by financing activities | (420,389) | (159,150) |
Change in cash, cash equivalents and restricted cash | (5,114) | 53,841 |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 |
Cash, cash equivalents and restricted cash at end of period | 8,204 | 60,070 |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 75,172 | 63,610 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (700) | |
Accretion of put liability | 2,444 | 7,333 |
Derivative valuation adjustment | 60 | 60 |
Contributions from noncontrolling interests in subsidiaries | 3,340 | 3,373 |
CubeSmart, L.P. and Subsidiaries | ||
Operating Activities | ||
Net loss | 210,300 | 184,250 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 244,062 | 166,879 |
Non-cash portion of interest expense related to finance leases | (37) | 208 |
Equity in earnings of real estate ventures | (47,532) | (1,152) |
Gains from sales of real estate, net | (28,815) | |
Equity compensation expense | 6,804 | 6,067 |
Accretion of fair market value adjustment of debt | (830) | (1,630) |
Changes in other operating accounts: | ||
Other assets | 4,247 | (7,034) |
Accounts payable and accrued expenses | 25,982 | 19,397 |
Other liabilities | 3,500 | 4,770 |
Net cash provided by operating activities | 446,496 | 342,940 |
Investing Activities | ||
Acquisitions of storage properties | (89,004) | (65,455) |
Additions and improvements to storage properties | (27,493) | (27,928) |
Development costs | (17,445) | (60,783) |
Investment in real estate ventures | (16) | (28,256) |
Cash distributed from real estate ventures | 59,544 | 15,125 |
Proceeds from sale of real estate, net | 43,193 | 37,348 |
Net cash used in investing activities | (31,221) | (129,949) |
Proceeds from: | ||
Revolving credit facility | 500,640 | 667,658 |
Principal payments on: | ||
Revolving credit facility | (624,540) | (785,458) |
Mortgage loans and notes payable | (1,806) | (45,791) |
Loan procurement costs | (136) | |
Proceeds from issuance of common OP units | 4,890 | 199,962 |
Cash paid upon vesting of restricted OP units | (1,384) | (843) |
Exercise of OP unit options | 1,590 | 7,865 |
Contributions from noncontrolling interests in subsidiaries | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,331) | (138) |
Distributions paid to common OP unitholders | (292,312) | (210,436) |
Net cash provided by financing activities | (420,389) | (159,150) |
Change in cash, cash equivalents and restricted cash | (5,114) | 53,841 |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 |
Cash, cash equivalents and restricted cash at end of period | 8,204 | 60,070 |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 75,172 | 63,610 |
Supplemental disclosure of noncash activities: | ||
Acquisitions of storage properties | (700) | |
Accretion of put liability | 2,444 | 7,333 |
Derivative valuation adjustment | 60 | 60 |
Contributions from noncontrolling interests in subsidiaries | $ 3,340 | $ 3,373 |