Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 22, 2023 | Jun. 30, 2022 | |
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Road | ||
Entity Address, City or Town | Malvern | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19355 | ||
City Area Code | 610 | ||
Local Phone Number | 535-5000 | ||
Title of 12(b) Security | Common Shares, $0.01 par value per share, of CubeSmart | ||
Trading Symbol | CUBE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 9,588,612,808 | ||
Entity Common Stock, Shares Outstanding | 224,631,447 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001298675 | ||
Amendment Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Philadelphia, Pennsylvania | ||
CubeSmart, L.P. and Subsidiaries | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 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 Road | ||
Entity Address, City or Town | Malvern | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 19355 | ||
City Area Code | 610 | ||
Local Phone Number | 535-5000 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 62,393,414 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001300485 | ||
Amendment Flag | false | ||
Auditor Name | KPMG LLP | ||
Auditor Firm ID | 185 | ||
Auditor Location | Philadelphia, Pennsylvania |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Storage properties | $ 7,295,778 | $ 7,183,494 |
Less: Accumulated depreciation | (1,247,775) | (1,085,824) |
Storage properties, net (including VIE assets of $167,180 and $149,467, respectively) | 6,048,003 | 6,097,670 |
Cash and cash equivalents | 6,064 | 11,140 |
Restricted cash | 2,861 | 2,178 |
Loan procurement costs, net of amortization | 5,182 | 2,322 |
Investment in real estate ventures, at equity | 105,993 | 119,751 |
Assets held for sale | 3,745 | 49,313 |
Other assets, net | 153,982 | 265,705 |
Total assets | 6,325,830 | 6,548,079 |
LIABILITIES AND EQUITY | ||
Unsecured senior notes, net | 2,772,350 | 2,768,209 |
Revolving credit facility | 60,900 | 209,900 |
Mortgage loans and notes payable, net | 162,918 | 167,676 |
Lease liabilities - finance leases | 65,758 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 213,297 | 199,985 |
Distributions payable | 111,190 | 97,417 |
Deferred revenue | 38,757 | 37,144 |
Security deposits | 1,087 | 1,065 |
Liabilities held for sale | 1,773 | 2,502 |
Total liabilities | 3,428,030 | 3,549,699 |
Noncontrolling interests in the Operating Partnership | 57,419 | 108,220 |
Commitments and contingencies | ||
Equity | ||
Common shares $.01 par value, 400,000,000 shares authorized, 224,603,462 and 223,917,993 shares issued and outstanding at December 31, 2022, and 2021, respectively | 2,246 | 2,239 |
Additional paid-in capital | 4,125,478 | 4,088,392 |
Accumulated other comprehensive loss | (491) | (570) |
Accumulated deficit | (1,301,030) | (1,218,498) |
Total CubeSmart shareholders' equity | 2,826,203 | 2,871,563 |
Noncontrolling interests in subsidiaries | 14,178 | 18,597 |
Total equity | 2,840,381 | 2,890,160 |
Total liabilities and equity | $ 6,325,830 | $ 6,548,079 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Storage properties | $ 6,048,003 | $ 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 | 224,603,462 | 223,917,993 |
Common shares, shares outstanding | 224,603,462 | 223,917,993 |
VIE | ||
Storage properties | $ 167,180 | $ 149,467 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Rental income | $ 879,289 | $ 707,751 | $ 581,009 |
Total revenues | 1,009,624 | 822,564 | 679,177 |
OPERATING EXPENSES | |||
Property operating expenses | 293,260 | 252,104 | 223,634 |
Depreciation and amortization | 310,610 | 232,049 | 156,573 |
General and administrative | 54,623 | 47,809 | 41,423 |
Total operating expenses | 658,493 | 531,962 | 421,630 |
Interest: | |||
Interest expense on loans | (93,284) | (78,448) | (75,890) |
Loan procurement amortization expense | (3,897) | (8,168) | (2,674) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 48,877 | 25,275 | 178 |
Gains from sales of real estate, net | 32,698 | 6,710 | |
Other | (10,355) | (10,818) | (240) |
Total other expense | (58,659) | (59,789) | (89,936) |
NET INCOME | 292,472 | 230,813 | 167,611 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Noncontrolling interests in the Operating Partnership | (1,931) | (7,873) | (1,825) |
Noncontrolling interest in subsidiaries | 722 | 542 | (165) |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 291,263 | $ 223,482 | $ 165,621 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.10 | $ 0.85 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Weighted average basic shares outstanding (in shares) | 224,928 | 203,832 | 194,147 |
Weighted average diluted shares outstanding (in shares) | 225,881 | 205,009 | 194,943 |
Other Property Related Income | |||
REVENUES | |||
Property related income | $ 96,166 | $ 83,605 | $ 70,723 |
Property Management Fee Income | |||
REVENUES | |||
Property related income | $ 34,169 | $ 31,208 | $ 27,445 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | |||
NET INCOME | $ 292,472 | $ 230,813 | $ 167,611 |
Other comprehensive income: | |||
Reclassification of realized losses on interest rate swaps | 81 | 81 | 81 |
OTHER COMPREHENSIVE INCOME: | 81 | 81 | 81 |
COMPREHENSIVE INCOME | 292,553 | 230,894 | 167,692 |
Comprehensive income attributable to noncontrolling interests in the Operating Partnership | (1,933) | (7,892) | (1,809) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 722 | 542 | (165) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 291,342 | $ 223,544 | $ 165,718 |
CONSOLIDATED STATEMENT OF EQUIT
CONSOLIDATED STATEMENT OF EQUITY - USD ($) $ in Thousands | Total Shareholders' Equity | Common Shares | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest in Subsidiaries | Noncontrolling Interests in the Operating Partnership | Total |
Balance at Dec. 31, 2019 | $ 1,799,346 | $ 1,936 | $ 2,674,745 | $ (729) | $ (876,606) | $ 7,990 | $ 1,807,336 | |
Balance (in shares) at Dec. 31, 2019 | 193,557 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2019 | $ 62,088 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 682 | 682 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (205) | (205) | ||||||
Issuance of common shares, net | 120,727 | $ 37 | 120,690 | 120,727 | ||||
Issuance of common shares, net (in shares) | 3,627 | |||||||
Issuance of restricted shares (in shares) | 60 | |||||||
Issuance of OP units | 186,933 | |||||||
Conversion from units to shares | 2,824 | $ 1 | 2,823 | (2,824) | 2,824 | |||
Conversion from units to shares (in shares) | 100 | |||||||
Exercise of stock options | 961 | 961 | 961 | |||||
Exercise of stock options (in shares) | 62 | |||||||
Amortization of restricted shares | 4,502 | 4,502 | 4,502 | |||||
Share compensation expense | 1,952 | 1,952 | 1,952 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (4,230) | (4,230) | 4,230 | (4,230) | ||||
Net income (loss) | 165,621 | 165,621 | 165 | 165,786 | ||||
Net income (loss) | 1,825 | |||||||
Other comprehensive income (loss), net | 97 | 97 | 97 | |||||
Other comprehensive income (loss), net | (16) | |||||||
Common share distributions | (259,584) | (259,584) | (2,822) | (259,584) | ||||
Balance at Dec. 31, 2020 | 1,832,216 | $ 1,974 | 2,805,673 | (632) | (974,799) | 8,632 | 1,840,848 | |
Balance (in shares) at Dec. 31, 2020 | 197,406 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2020 | 249,414 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 11,404 | 11,404 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (246) | (246) | ||||||
Acquisition of noncontrolling interest in subsidiary | (2,746) | (2,746) | (651) | (3,397) | ||||
Issuance of common shares, net | 965,638 | $ 205 | 965,433 | 965,638 | ||||
Issuance of common shares, net (in shares) | 20,508 | |||||||
Issuance of restricted shares (in shares) | 66 | |||||||
Conversion from units to shares | 305,015 | $ 56 | 304,959 | (305,015) | 305,015 | |||
Conversion from units to shares (in shares) | 5,519 | |||||||
Exercise of stock options | 7,865 | $ 4 | 7,861 | 7,865 | ||||
Exercise of stock options (in shares) | 419 | |||||||
Amortization of restricted shares | 4,941 | 4,941 | 4,941 | |||||
Share compensation expense | 2,271 | 2,271 | 2,271 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (164,109) | (164,109) | 164,109 | (164,109) | ||||
Net income (loss) | 223,482 | 223,482 | (542) | 222,940 | ||||
Net income (loss) | 7,873 | |||||||
Other comprehensive income (loss), net | 62 | 62 | 62 | |||||
Other comprehensive income (loss), net | 19 | |||||||
Common share distributions | (303,072) | (303,072) | (8,180) | (303,072) | ||||
Balance at Dec. 31, 2021 | 2,871,563 | $ 2,239 | 4,088,392 | (570) | (1,218,498) | 18,597 | 2,890,160 | |
Balance (in shares) at Dec. 31, 2021 | 223,918 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2021 | 108,220 | 108,220 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 3,690 | 3,690 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (7,387) | (7,387) | ||||||
Issuance of common shares, net | 4,877 | $ 1 | 4,876 | 4,877 | ||||
Issuance of common shares, net (in shares) | 102 | |||||||
Issuance of restricted shares | 1 | $ 1 | 1 | |||||
Issuance of restricted shares (in shares) | 56 | |||||||
Conversion from units to shares | 22,948 | $ 4 | 22,944 | (22,948) | 22,948 | |||
Conversion from units to shares (in shares) | 475 | |||||||
Exercise of stock options | 1,590 | $ 1 | 1,589 | 1,590 | ||||
Exercise of stock options (in shares) | 52 | |||||||
Amortization of restricted shares | 5,134 | 5,134 | 5,134 | |||||
Share compensation expense | 2,543 | 2,543 | 2,543 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 27,203 | 27,203 | (27,203) | 27,203 | ||||
Net income (loss) | 291,263 | 291,263 | (722) | 290,541 | ||||
Net income (loss) | 1,931 | |||||||
Other comprehensive income (loss), net | 79 | 79 | 79 | |||||
Other comprehensive income (loss), net | 2 | |||||||
Common share distributions | (400,998) | (400,998) | (2,583) | (400,998) | ||||
Balance at Dec. 31, 2022 | $ 2,826,203 | $ 2,246 | $ 4,125,478 | $ (491) | $ (1,301,030) | $ 14,178 | 2,840,381 | |
Balance (in shares) at Dec. 31, 2022 | 224,603 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2022 | $ 57,419 | $ 57,419 |
CONSOLIDATED STATEMENT OF EQU_2
CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
CONSOLIDATED STATEMENT OF EQUITY | |||
Common share distributions (in dollars per share) | $ 1.78 | $ 1.45 | $ 1.33 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income | $ 292,472 | $ 230,813 | $ 167,611 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 314,507 | 240,217 | 159,247 |
Non-cash portion of interest expense related to finance leases | (43) | 202 | |
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (48,877) | (25,275) | (178) |
Gains from sales of real estate, net | (32,698) | (6,710) | |
Equity compensation expense | 9,081 | 8,088 | 7,140 |
Accretion of fair market value adjustment of debt | (1,099) | (2,037) | (259) |
Changes in other operating accounts: | |||
Other assets | 3,498 | (9,247) | (9,674) |
Accounts payable and accrued expenses | 20,395 | 14,871 | 13,922 |
Other liabilities | 1,532 | 3,923 | 1,914 |
Net cash provided by operating activities | 591,466 | 449,185 | 351,033 |
Investing Activities | |||
Acquisitions of storage properties | (89,004) | (151,547) | (417,988) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (41,233) | (34,608) | (49,857) |
Development costs | (24,358) | (69,887) | (55,286) |
Investment in real estate ventures | (21) | (28,261) | (7,022) |
Cash distributed from real estate ventures | 62,656 | 66,593 | 6,246 |
Proceeds from sale of real estate, net | 43,193 | 44,026 | 12,466 |
Net cash used in investing activities | (48,767) | (1,852,668) | (511,441) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | |
Revolving credit facility | 633,950 | 906,571 | 429,085 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (782,950) | (814,471) | (311,285) |
Mortgage loans and notes payable | (2,426) | (87,263) | (46,093) |
Loan procurement costs | (3,885) | (12,548) | (3,764) |
Debt prepayment costs | (20,023) | (17,584) | |
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | ||
Proceeds from issuance of common shares, net | 4,877 | 965,638 | 120,727 |
Cash paid upon vesting of restricted shares | (1,403) | (876) | (686) |
Exercise of stock options | 1,590 | 7,865 | 961 |
Contributions from noncontrolling interests in subsidiaries | 350 | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,387) | (246) | (205) |
Distributions paid to common shareholders | (387,106) | (273,839) | (256,253) |
Distributions paid to noncontrolling interests in Operating Partnership | (2,702) | (8,297) | (2,540) |
Net cash (used in) provided by financing activities | (547,092) | 1,410,572 | 108,196 |
Change in cash, cash equivalents and restricted cash | (4,393) | 7,089 | (52,212) |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 8,925 | 13,318 | 6,229 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 92,293 | 79,148 | 80,792 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (700) | (2,623) | |
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | |
Mortgage loan assumptions | 40,880 | 169,056 | |
Accretion of put liability | 2,444 | 9,777 | 7,917 |
Derivative valuation adjustment | 81 | 81 | 81 |
Issuance of OP units (see note 4) | 186,933 | ||
Contributions from noncontrolling interests in subsidiaries | $ 3,340 | $ 3,373 | $ 682 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 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 December 31, 2022, the Company owned (or partially owned and consolidated) self-storage properties located in the District of Columbia and 24 states throughout the United States which are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage properties. As of December 31, 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.” |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the Company is presented as noncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”) and if the Company is deemed to be the primary beneficiary in accordance with authoritative guidance issued on the consolidation of VIEs. To the extent that the Company (i) has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) has the obligation or rights to absorb the VIE's losses or receive its benefits, then the Company is considered the primary beneficiary. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary, and (ii) entities that are non-VIEs which the Company controls and which the limited partners do not have the ability to dissolve or remove the Company without cause nor substantive participating rights. The Operating Partnership meets the criteria as a VIE. The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership. Noncontrolling Interests The Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding noncontrolling interests in consolidated financial statements which was effective on January 1, 2009. The guidance states that noncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Under the guidance, such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from controlled or consolidated entities that are less than wholly owned are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. However, per the FASB issued authoritative guidance on the classification and measurement of redeemable securities, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity in the consolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the FASB issued guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a Company’s own stock to evaluate whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. The guidance also requires that noncontrolling interests are adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption fair value. The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company. These interests were issued in the form of OP units and were a component of the consideration the Company paid to acquire certain self-storage properties. Limited partners who acquired OP units have the right to require the Operating Partnership to redeem part or all of their OP units for, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair value of an equivalent number of common shares of the Company. However, the operating agreement contains certain circumstances that could result in a net cash settlement outside the control of the Company, as the Company does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance discussed above, the Company will continue to record these noncontrolling interests outside of permanent equity in the consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of operations. The Company has adjusted the carrying value of its noncontrolling interests subject to redemption value to the extent applicable. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Operating Partnership reflected these interests at their redemption value as of December 31, 2022, as the estimated redemption value exceeded their carrying value. Disclosure of such redemption provisions is provided in note 12. Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Although management believes the assumptions and estimates made are reasonable and appropriate, as discussed in the applicable sections throughout these consolidated financial statements, different assumptions and estimates could materially impact the Company’s reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions, and changes in market conditions could impact the Company’s future operating results. Self-Storage Properties Self-storage properties are carried at historical cost less accumulated depreciation and impairment losses. The cost of self-storage properties reflects their purchase price or development cost. Acquisition costs are accounted for in accordance with Accounting Standard Update (“ASU”) No. 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January 1, 2018, and are generally capitalized. Costs incurred for the renovation of a store are capitalized to the Company’s investment in that store. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs to develop self-storage properties are capitalized to construction in progress while the projects are under development. Purchase Price Allocation When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements and equipment are recorded based upon their respective fair values as estimated by management. If appropriate, the Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the storage leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the purchase price has been allocated to above- or below-market lease intangibles associated with storage leases assumed at acquisition. Above- or below- market lease intangibles associated with assumed leases in which the Company serves as lessee are recorded as an adjustment to the right-of-use asset and reflect the difference between the contractual amounts to be paid pursuant to each in-place lease and management’s estimate of fair market lease rates. These amounts are amortized over the term of the lease. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. Depreciation and Amortization The costs of self-storage properties and improvements are depreciated using the straight-line method based on useful lives ranging from five to 39 years . Right-of-use assets associated with finance leases are amortized from the lease commencement date to the earlier of the useful life of the right-to-use asset or the end of the lease term. Fully depreciated or amortized assets and the associated accumulated depreciation or amortization are written off. The Company wrote off fully depreciated or amortized real estate assets and in-place lease intangible assets of $32.3 million and $121.6 million, respectively, for the year ended December 31, 2022, and $52.7 million and $59.9 million, respectively, for the year ended December 31, 2021. Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the asset’s basis is recoverable. If a store’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized during the years ended December 31, 2022, 2021 and 2020. Long-Lived Assets Held for Sale We consider long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell an asset (or group of assets), (b) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets, (c) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, (d) the sale of the asset is probable and transfer of the asset is expected to be completed within one year , (e) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer, and there are no contingencies related to the sale that may prevent the transaction from closing. However, each potential transaction is evaluated based on its separate facts and circumstances. Assets classified as held for sale are reported at the lesser of carrying value or fair value less estimated costs to sell and are not depreciated. The California Yacht Club acquired through our acquisition of LAACO (defined below) has been classified as held for sale as of December 31, 2022. There were no stores classified as held for sale as of December 31, 2022. Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company may maintain cash equivalents in financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. Restricted Cash Restricted cash generally consists of cash deposits required for debt service, capital replacement and expense reserves in connection with the terms of our loan agreements. Loan Procurement Costs Loan procurement costs related to borrowings were $53.9 million and $50.1 million as of December 31, 2022 and 2021, respectively, and are reported net of accumulated amortization of $19.8 million and $14.3 million as of December 31, 2022 and 2021, respectively. In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company’s revolving credit facility remain in Loan procurement costs, net of amortization on the Company’s consolidated balance sheets. The costs are amortized over the estimated life of the related debt using the effective interest method and are reported as Loan procurement amortization expense on the Company’s consolidated statements of operations. Other Assets Other assets are comprised of the following as of December 31, 2022 and 2021: December 31, 2022 2021 (in thousands) Intangible assets, net of accumulated amortization of $2,263 and $12,760, respectively $ 1,181 $ 108,794 Accounts receivable, net 7,932 8,145 Prepaid property taxes 8,033 6,938 Prepaid property and casualty insurance 2,129 3,352 Amounts due from affiliates (see note 14) 15,947 15,417 Assets related to deferred compensation arrangements 55,572 60,297 Right-of-use assets - operating leases 49,491 54,741 Ground lease receivable 6,138 — Other 7,559 8,021 Total other assets, net $ 153,982 $ 265,705 Environmental Costs Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional stores. Whenever the environmental assessment for one of the Company’s stores indicates that a store is impacted by soil or groundwater contamination from prior owners/operators or other sources, the Company will work with environmental consultants and where appropriate, state governmental agencies, to ensure that the store is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment or that the responsibility for cleanup rests with a third party. Revenue Recognition Management has determined that substantially all of the Company’s leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. The Company recognizes gains from sales of real estate in accordance with the guidance on transfer of nonfinancial assets. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized when a valid contract exists, the collectability of the sales price is reasonably assured and the control of the property has transferred. Advertising and Marketing Costs The Company incurs advertising and marketing costs primarily attributable to internet marketing and other media advertisements. These costs are expensed as incurred. The Company incurred $22.4 million, $21.0 million and $16.9 million in advertising and marketing expenses for the years ended December 31, 2022, 2021 and 2020, respectively, which are included in Property operating expenses on the Company’s consolidated statements of operations. Equity Offering Costs Underwriting discounts and commissions, financial advisory fees and other offering costs are reflected as a reduction to additional paid-in capital. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.2 million, $28.3 million and $1.5 million, respectively, of equity offering costs related to the issuance of common shares. Other Property Related Income Other property related income consists of late fees, administrative charges, customer storage protection plan fees, sales of storage supplies and other ancillary revenues and is recognized in the period that it is earned. Capitalized Interest The Company capitalizes interest incurred that is directly associated with construction activities until the asset is placed into service. Interest is capitalized to the related asset(s) using the weighted average rate of the Company’s outstanding debt. For the years ended December 31, 2022, 2021 and 2020, the Company capitalized Derivative Financial Instruments The Company carries all derivatives on the balance sheet at fair value. The Company determines the fair value of derivatives by observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The Company’s use of derivative instruments has been limited to cash flow hedges of certain interest rate risks. The Company had no outstanding derivatives as of December 31, 2022 or 2021. Income Taxes The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code since the Company’s commencement of operations in 2004. In management’s opinion, the requirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiaries. Earnings and profits, which determine the taxability of distributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the estimated useful lives used to compute depreciation, and the allocation of net income and loss for financial versus tax reporting purposes. The net tax basis in the Company’s assets was approximately $6,145.8 million and $6,113.5 million as of December 31, 2022 and 2021, respectively. Since the Company’s initial quarter as a publicly-traded REIT, it has made regular quarterly distributions to its shareholders. Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, the Company provides each of its shareholders a statement detailing the tax characterization of dividends paid during the preceding year as ordinary income, capital gain or return of capital. The characterization of the Company’s dividends for 2022 consisted of an 88.7377% ordinary income distribution and an 11.2623% capital gain distribution. The Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Company’s ordinary income, (b) 95% of the Company’s net capital gains and (c) 100% of prior taxable income exceeds cash distributions and certain taxes paid by the Company. No excise tax was incurred in 2022, 2021 or 2020. Taxable REIT subsidiaries are subject to federal and state income taxes. Our taxable REIT subsidiaries had a net deferred tax liability of $1.0 million and $0.7 million as of December 31, 2022 and 2021, respectively. Earnings per Share and Unit Basic earnings per share and unit are calculated based on the weighted average number of common shares and restricted shares outstanding during the period. Diluted earnings per share and unit is calculated by further adjusting for the dilutive impact of share options, unvested restricted shares and contingently issuable shares outstanding during the period using the treasury stock method. Potentially dilutive securities calculated under the treasury stock method were Share-Based Payments We apply the fair value method of accounting for contingently issued shares and share options issued under our incentive award plan. Accordingly, share compensation expense is recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has recognized compensation expense on a straight-line method over the requisite service period, which is included in general and administrative expense on the Company’s consolidated statement of operations. The Company recognizes forfeitures on share-based payments as they occur. Investments in Unconsolidated Real Estate Ventures The Company accounts for its investments in unconsolidated real estate ventures under the equity method of accounting when it is determined that the Company has the ability to exercise significant influence over the venture. Under the equity method, investments in unconsolidated real estate ventures are recorded initially at cost, as investments in real estate ventures, and subsequently adjusted for equity in earnings (losses), cash contributions, distributions and impairments. On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. An investment is impaired only if the fair value of the investment, as estimated by management, is less than the carrying value of the investment and the decline is other than temporary. To the extent impairment that is other than temporary has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment, as estimated by management. The determination as to whether impairment exists requires significant management judgment about the fair value of the Company’s ownership interest. Fair value is determined through various valuation techniques, including but not limited to, discounted cash flow models, quoted market values and third-party appraisals. There were Differences between the Company's net investment in unconsolidated real estate ventures and its underlying equity in the net assets of the ventures are primarily a result of the Company acquiring interests in existing unconsolidated real estate ventures. As of December 31, 2022 and 2021, the Company’s net investment in unconsolidated real estate ventures was greater than its underlying equity in the net assets of the unconsolidated real estate ventures by an aggregate of $32.7 million and $33.6 million, respectively. These differences are amortized over the lives of the self-storage properties owned by the real estate ventures. This amortization is included in equity in earnings of real estate ventures on the Company’s consolidated statements of operations. Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06 – Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of certain settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. The standard was effective on January 1, 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. Concentration of Credit Risk The Company’s stores are located in major metropolitan and rural areas and have numerous customers per store. No single customer represents a significant concentration of our revenues. The stores in New York, Florida, California and Texas provided approximately 16%, 15%, 11% and 9%, respectively, of the Company’s total revenues for the year ended December 31, 2022. The stores in New York, Florida, Texas and California provided approximately 19%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2021. The stores in New York, Florida, Texas and California provided approximately 16%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2020. |
STORAGE PROPERTIES
STORAGE PROPERTIES | 12 Months Ended |
Dec. 31, 2022 | |
STORAGE PROPERTIES | |
STORAGE FACILITIES | 3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: December 31, 2022 2021 (in thousands) Land $ 1,588,138 $ 1,565,463 Buildings and improvements 5,483,506 5,368,383 Equipment 144,605 129,531 Construction in progress 37,584 78,221 Right-of-use assets - finance leases 41,945 41,896 Storage properties 7,295,778 7,183,494 Less: Accumulated depreciation (1,247,775) (1,085,824) Storage properties, net $ 6,048,003 $ 6,097,670 The following table summarizes the Company’s acquisition and disposition activity for the years ended December 31, 2022, 2021 and 2020: 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 2020 Acquisitions: Texas Asset San Antonio, TX February 2020 1 $ 9,025 Maryland Asset Baltimore-Towson, MD April 2020 1 17,200 New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA April 2020 1 48,450 Florida Asset Palm Bay-Melbourne-Titusville, FL November 2020 1 3,900 Texas Asset Austin-Round Rock, TX November 2020 1 10,750 Texas Asset Dallas-Fort Worth-Arlington, TX November 2020 1 10,150 Nevada Asset Las Vegas-Paradise, NV December 2020 1 16,800 New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 6,750 Florida Asset Tampa-St. Petersburg-Clearwater, FL December 2020 1 10,000 Virginia Asset Washington-Arlington-Alexandria, DC-VA-MD-WV December 2020 1 17,350 Storage Deluxe Assets New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 8 540,000 Florida Assets Orlando-Kissimmee, FL / Deltona-Daytona Beach-Ormond Beach, FL December 2020 3 45,500 21 $ 735,875 2020 Disposition: New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 $ 12,750 1 $ 12,750 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. (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 year ended December 31, 2022. The California Yacht Club is classified as held for sale on the Company’s consolidated balance sheets as of December 31, 2022 (see note 4). |
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT ACTIVITY | |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY 2022 Acquisitions During the year ended December 31, 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 year ended December 31, 2022 was approximately $2.3 million. 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 year December 31, 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. Assets Held for Sale As of December 31, 2022, the Company determined that the California Yacht Club (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 December 31, 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 December 31, 2022, the Company had invested in joint ventures to develop two self-storage properties located in New Jersey (1) and New York (1). Construction for these projects is expected to be completed by the second quarter of 2024. As of December 31, 2022, development costs incurred to date for these projects totaled $27.6 million. Total construction costs for these projects are expected to be $64.0 million. These costs are capitalized to construction in progress while the projects are under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company has completed the construction of and opened for operation the following stores since January 1, 2020. 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 Brooklyn, NY (3) 1 Q2 2020 100% 45,900 7 $ 202,600 (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. (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 this 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) These stores were previously owned by two separate consolidated joint ventures, of which the Company held a 51% ownership interest in each. On September 29, 2020, the noncontrolling member in the venture that owned the Brooklyn, NY store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. The Company issued 276,497 OP Units that were valued at approximately $9.0 million as consideration for the remainder of the purchase price (see note 12). On June 29, 2021, the noncontrolling member in the venture that owned the East Meadow, NY store put its 49% interest in the venture to the Company for $6.6 million. The cash payments related to these transactions are included in Development costs in the consolidated statements of cash flows. 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 CYC (consisting of sports facilities, food and beverage operations and a marina). During the year ended December 31, 2022, the Company sold the Los Angeles Athletic Club (see above). As of December 31, 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 (included in total costs contemplated above) $ 46,800 (1) Represents the acquisition of all 167,557 outstanding partnership units for $9,838 per unit. (2) Upon the acquisition of LAACO, the Company assumed severance obligations payable to certain employees pursuant to pre-existing agreements. Based on the specific details of the arrangements, $16.8 million in costs were capitalized to the basis of the acquired properties while $25.1 million were considered post-combination compensation expenses. Of this $25.1 million, $10.3 million and $14.8 million were included in the component of other (expense) income designated as Other for the years ended December 31, 2022 and 2021, respectively. (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 years ended December 31, 2022 and 2021 was approximately $100.6 million and $9.1 million, respectively. Other 2021 Acquisitions During the year ended December 31, 2021, the Company acquired eight additional stores located in Florida (1) , Georgia (1) , Illinois (1) , Maryland (1) , Nevada (1) , New Jersey (1) and Pennsylvania (2) for an aggregate purchase price of approximately $140.8 million. Also, a consolidated joint venture, in which the Company holds a 50% interest, acquired a store in Minnesota for a purchase price of $12.0 million. 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 years ended December 31, 2022 and 2021 was approximately $8.3 million and $3.6 million, respectively. 2021 Dispositions During the year ended December 31, 2021, the Company sold five stores 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. 2020 Acquisitions The Company acquired a portfolio of eight stores located in the outer boroughs of New York City (the “Storage Deluxe Assets”), in two separate tranches during December 2020, for an aggregate purchase price of $540.0 million. In connection with the acquisition of the Storage Deluxe Assets, the Company assumed six mortgage loans with an aggregate outstanding principal amount of $154.4 million at the time of acquisition, one of which had an outstanding principal balance of $33.2 million and was repaid immediately. The assumed mortgage debt was recorded at a fair value of $169.2 million, which includes an aggregate net premium of $14.8 million to reflect the estimated fair value of the debt at the time of assumption. The remainder of the purchase price was funded with $210.5 million of cash and $175.1 million through the issuance of 5,272,023 OP Units (see note 12). In connection with the acquisition of the Storage Deluxe Assets, which was accounted for as an asset acquisition, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $ 48.6 million at the time of the acquisition and prior to amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the year ended December 31, 2021 was approximately $48.6 million. There was no amortization expense recognized for these in-place leases during the year ended December 31, 2022. Additionally, as part of the transaction, the Company assumed three existing ground leases as lessee, two of which have been classified as finance leases and one of which has been classified as an operating lease (see note 13). During the year ended December 31, 2020, the Company acquired 13 additional stores located in Florida (5) , Maryland (1) , Nevada (1) , New Jersey (1) , New York (1) , Texas (3) and Virginia (1) for an aggregate purchase price of approximately $195.9 million. In connection with these transactions, which were accounted for as asset acquisitions, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consisted of in-place leases, which aggregated to $ 11.4 million at the time of the acquisitions and prior to amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the years ended December 31, 2021 and 2020 was approximately $9.3 million and $2.1 million, respectively. There was no amortization expense recognized for these in-place leases during the year ended December 31, 2022. Additionally, on July 20, 2020, the Company acquired land underlying a wholly-owned store located in the Bronx, New York for $9.5 million. The land was previously subject to a ground lease in which the Company served as lessee. As a result of the transaction, which was accounted for as an asset acquisition, the Company was released from its obligations under the ground lease, and the right-of-use asset and lease liability totaling $5.1 million and $5.0 million, respectively, were removed from the Company’s consolidated balance sheets. 2020 Disposition On December 22, 2020, the Company sold a self-storage property located in New York for a sales price of $12.8 million. The Company recorded a $6.7 million gain in connection with the sale. |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 12 Months Ended |
Dec. 31, 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 December 31, December 31, Unconsolidated Real Estate Ventures Interest 2022 2021 2022 2021 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,789 $ 14,225 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 20,994 21,536 191 V CUBE LLC ("HVP V") (2) 20% 6 5 14,318 16,080 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% - 14 — 4,541 191 IV CUBE LLC ("HVP IV") 20% 28 28 19,853 23,223 CUBE HHF Northeast Venture LLC ("HHFNE") 10% 13 13 1,101 1,291 CUBE HHF Limited Partnership ("HHF") 50% 28 28 35,938 38,855 77 90 $ 105,993 $ 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 December 31, 2022, this difference was $13.1 million for Fontana and $19.6 million for RCSS. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) During the year ended December 31, 2022, HVP V acquired one store located in New Jersey for a purchase price of $33.2 million. The Company contributed $0.1 million towards this purchase, which was primarily funded by HVP V's secured term loan. (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. The stores owned by HVPSE 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 December 31, 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. 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 amounts reflected in the following table are based on the historical financial information of the Ventures. The following is a summary of the financial position of the Ventures as of December 31, 2022 and 2021: December 31, 2022 2021 Assets (in thousands) Storage properties, net $ 741,563 $ 850,250 Other assets 11,708 34,760 Total assets $ 753,271 $ 885,010 Liabilities and equity Debt $ 468,783 $ 526,972 Other liabilities 16,626 14,500 Equity CubeSmart 73,289 86,083 Joint venture partners 194,573 257,455 Total liabilities and equity $ 753,271 $ 885,010 The following is a summary of results of operations of the Ventures for the years ended December 31, 2022, 2021 and 2020: For the year ended December 31, 2022 2021 2020 (in thousands) Total revenues $ 102,910 $ 88,449 $ 67,239 Operating expenses (42,408) (37,967) (30,755) Other expenses (484) (1,138) (430) Interest expense, net (15,568) (12,031) (11,585) Depreciation and amortization (36,866) (37,805) (33,086) Gains from sale of real estate, net 114,107 46,966 — Net income (loss) $ 121,691 $ 46,474 $ (8,617) Company’s share of net income (loss) $ 48,877 $ 25,275 $ 178 |
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES | 12 Months Ended |
Dec. 31, 2022 | |
UNSECURED SENIOR NOTES | |
UNSECURED SENIOR NOTES | 6. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): December 31, Effective Issuance Maturity Unsecured Senior Notes 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 (11,801) (13,455) Less: Loan procurement costs, net (15,849) (18,336) Total unsecured senior notes, net $ 2,772,350 $ 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 and for the year ended December 31, 2022, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING CREDIT FACILITY AND U
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | 12 Months Ended |
Dec. 31, 2022 | |
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | |
REVOLVING CREDIT FACILITY | 7. REVOLVING CREDIT FACILITY On December 9, 2011, the Company entered into a credit agreement (the “Credit Facility”), which was subsequently amended and restated. On October 26, 2022, the Company again 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 credit facility (the “Revolver”) maturing on February 15, 2027. Under the Second Amended and Restated Credit Facility, pricing on the 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 Revolver are priced using a margin of 0.775% plus a facility fee of 0.15% over SOFR and a 0.10% SOFR adjustment. As of December 31, 2022, borrowings under the Revolver had an interest rate of 5.33%. Additionally, as of December 31, 2022, $788.5 million was available for borrowing under the Revolver. The available balance under the Revolver is reduced by an outstanding letter of credit of $0.6 million. Under the Second Amended and Restated Credit Facility, the Company’s ability to borrow under the Revolver is subject to ongoing compliance with certain financial covenants which include, among other things, (1) a maximum total indebtedness to total asset value of 60.0%, and (2) a minimum fixed charge coverage ratio of 1.5:1.0. As of and for the year ended December 31, 2022, the Operating Partnership was in compliance with all of its financial covenants. |
MORTGAGE LOANS AND NOTES PAYABL
MORTGAGE LOANS AND NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
MORTGAGE LOANS AND NOTES PAYABLE | |
MORTGAGE LOANS AND NOTES PAYABLE | 8. MORTGAGE LOANS AND NOTES PAYABLE The Company’s mortgage loans and notes payable are summarized as follows: Carrying Value as of December 31, Effective Maturity Mortgage Loans and Notes Payable 2022 2021 Interest Rate Date (in thousands) Nashville V, TN $ 2,148 $ 2,206 3.85 % Jun-23 New York, NY 28,669 29,340 3.51 % Jun-23 Annapolis I, MD 4,906 5,099 3.78 % May-24 Brooklyn XV, NY 15,093 15,423 2.15 % May-24 Long Island City IV, NY 12,270 12,580 2.15 % May-24 Long Island City II, NY 18,283 18,714 2.25 % Jul-26 Long Island City III, NY 18,290 18,723 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 153,959 156,385 Plus: Unamortized fair value adjustment 10,228 12,981 Less: Loan procurement costs, net (1,269) (1,690) Total mortgage loans and notes payable, net $ 162,918 $ 167,676 As of December 31, 2022 and 2021, the Company’s mortgage loans and notes payable were secured by certain of its self-storage properties with net book values of approximately $442.9 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 December 31, 2022 (in thousands): 2023 $ 32,591 2024 32,329 2025 979 2026 33,760 2027 — 2028 and thereafter 54,300 Total mortgage payments 153,959 Plus: Unamortized fair value adjustment 10,228 Less: Loan procurement costs, net (1,269) Total mortgage loans and notes payable, net $ 162,918 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss represents unrealized losses on interest rate swaps (see note 10). The following table summarizes the changes in accumulated other comprehensive loss for the years ended December 31, 2022 and 2021. December 31, 2022 2021 (in thousands) Beginning balance $ (575) $ (656) Reclassification of realized losses on interest rate swaps (1) 81 81 Ending balance (494) (575) Less: portion included in noncontrolling interests in the Operating Partnership 3 5 Total accumulated other comprehensive loss included in equity $ (491) $ (570) (1) See note 10 for additional information about the effects of the amounts reclassified. |
RISK MANAGEMENT AND USE OF FINA
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 10. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS The Company’s use of derivative instruments is limited to the utilization of interest rate swap agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its subsidiaries may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks. The Company formally assesses, both at inception of a hedge and on an on-going basis, whether each derivative is highly-effective in offsetting changes in cash flows of the hedged item. If management determines that the derivative is highly-effective as a hedge, then the Company accounts for the derivative using hedge accounting, pursuant to which gains or losses inherent in the derivative do not impact the Company’s results of operations. If management determines that the derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company discontinues hedge accounting prospectively and reflects in its consolidated statement of operations realized and unrealized gains and losses with respect to the derivative. As of December 31, 2022 and 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 $300.0 million of outstanding 4.375% senior notes due 2029 (the “2029 Notes”), the Company settled the Interest Rate Swaps for $0.8 million. The $0.8 million termination premium will be reclassified from accumulated other comprehensive loss as an increase to interest expense over the life of the 2029 Notes, which mature on February 15, 2029. The change in unrealized losses on interest rate swaps reflects a reclassification of $0.1 million of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during 2022. The Company estimates that $0.1 million will be reclassified as an increase to interest expense in 2023. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS The Company applies the methods of determining fair value, as described in authoritative guidance, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. The fair values of financial instruments, including cash and cash equivalents, restricted cash, accounts receivable, other financial instruments included in other assets, accounts payable, accrued expenses and other liabilities approximate their respective carrying values at December 31, 2022 and 2021. The following table summarizes the carrying value and estimated fair value of the Company’s debt as of December 31, 2022 and 2021: December 31, 2022 December 31, 2021 (in thousands) Carrying value $ 2,996,168 $ 3,145,785 Fair value 2,568,103 3,256,128 The fair value of debt estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations as of December 31, 2022 and 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 | 12 Months Ended |
Dec. 31, 2022 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 12. NONCONTROLLING INTERESTS Interests in Consolidated Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated joint ventures. 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. The following table summarizes the Company’s consolidated joint ventures, each of which are accounted for as VIEs: CubeSmart Number Ownership December 31, 2022 Consolidated Joint Ventures of Stores Interest Total Assets Total Liabilities Related Party Loans (1) (in thousands) 1074 Raritan Road, LLC ("Clark") 1 90% $ 3,500 $ 5 $ — Astoria Investors, LLC ("Astoria") 1 70% 24,763 10,161 9,238 CS 750 W Merrick Rd, LLC ("Merrick") 1 51% 37,140 17,142 — CS Lock Up Anoka, LLC ("Anoka") 1 50% 10,934 5,581 5,540 CS Valley Forge Village Storage, LLC ("VFV") 1 70% 20,576 14,863 14,792 CS Vienna, LLC ("Vienna") 1 80% 32,400 35,085 34,875 SH3, LLC ("SH3") 1 90% 38,165 274 — 7 $ 167,478 $ 83,111 $ 64,445 (1) Related party loans represent amounts payable from the joint venture to the Company and are included in total liabilities within the table above. The loans and related party interest have been eliminated for consolidation purposes. 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 December 31, 2022 and 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 cash settlement outside the control of CubeSmart and the Operating Partnership, as CubeSmart does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance, the Operating Partnership records the OP Units owned by third parties outside of permanent capital in the consolidated balance sheets. Net income or loss related to the OP Units owned by third parties is excluded from net income or loss attributable to Operating Partner in the consolidated statements of operations. In two separate tranches during December 2020, the Company acquired the Storage Deluxe Assets for an aggregate purchase price of $540.0 million. In connection with the acquisition of the Storage Deluxe Assets, the Company issued 5,272,023 OP Units valued at approximately $175.1 million to fund a portion of the purchase price. On September 29, 2020, the Company acquired the noncontrolling interest in a previously consolidated joint venture that owned a store in New York for $10.0 million. In conjunction with the closing, the Company paid $1.0 million in cash and issued 276,497 OP Units, valued at approximately $9.0 million, to pay the remaining consideration. During the years ended December 31, 2022, 2021 and 2020, 475,046, 5,519,233 and 100,000 OP units, respectively, were redeemed for common shares of the Company. As of December 31, 2022 and 2021, 1,426,549 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 year. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Company has reflected these interests at the greater of the carrying value based on the accumulation of historical cost or the redemption value as of December 31, 2022 and 2021. The aggregate redemption value of the 1,426,549 OP Units as of December 31, 2022 was $57.4 million. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
LEASES | 13. LEASES CubeSmart as Lessor The Company derives revenue primarily from rents received from customers who rent cubes at its self-storage properties under month-to-month leases for personal or business use. The self-storage lease agreements utilized by the Company vary slightly to comply with state-specific laws and regulations, but, subject to such laws and regulations, generally provide for automatic monthly renewals, flexibility to increase rental rates over time as market conditions permit and the collection of contingent fees such as administrative and late fees. None of the self-storage lease agreements contain options that allow the customer to purchase the leased space at any time during, or at the expiration of, the lease term. All self-storage leases in which the Company serves as lessor have been classified as operating leases. Accordingly, storage cubes are carried at historical cost less accumulated depreciation and impairment, if any, and are included in Storage properties on the Company’s consolidated balance sheets. Operating lease income for amounts received under the Company’s self-storage lease agreements is recognized on a straight-line basis which, due to the month-to-month nature of the leases, results in the recognition of income during the initial term and each subsequent monthly renewal using the then-in-place rent amount. Operating lease income is included in Rental income within the Company’s consolidated statements of operations. Variable lease income related to the Company’s self-storage lease agreements consists of administrative and late fees charged to customers. For the years ended December 31, 2022, 2021 and 2020, administrative and late fees totaled $27.8 million, $21.3 million, and $20.0 million, respectively, and are included in Other property related income within the Company’s consolidated statements of operations. CubeSmart as Lessee The Company serves as lessee in lease agreements for land, office space, automobiles and certain equipment, which have remaining lease terms of up to 42 years . Certain of the Company’s leases (1) provide for one or more options to renew, with renewal options that can extend the lease up to 69 years , (2) allow for early termination at certain points during the lease term and/or (3) give the Company the option to purchase the leased property. In all cases, the exercise of the lease renewal, termination and purchase options, if provided for in the lease, are at the Company’s sole discretion. Certain of the Company’s lease agreements, particularly its land leases, require rental payments that are periodically adjusted for inflation using a defined index. None of the Company’s lease agreements contain any material residual value guarantees or material restrictive covenants. Lease expense for payments related to the Company’s finance leases is recognized as interest expense using the interest method over the related lease term. Lease expense for payments related to the Company’s operating leases is recognized on a straight-line basis over the related lease term, which includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Right-of-use assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments as specified in the lease. Right-of-use assets and lease liabilities related to the Company’s operating leases are recognized at the lease commencement date based on the present value of the remaining lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available surrounding the Company’s unsecured borrowing rates and implied secured spread at the lease commencement date in determining the present value of lease payments. The right-of-use asset also includes any lease payments made at or before lease commencement less any lease incentives. For the years ended December 31, 2022, 2021 and 2020, the Company’s lease cost consists of the following components: Year Ended December 31, 2022 2021 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 964 $ 964 $ 49 Interest expense related to finance lease liabilities 2,140 2,139 64 Operating lease cost 2,980 3,278 2,856 Short-term lease cost (1) 868 1,173 1,114 Total lease costs $ 6,952 $ 7,554 $ 4,083 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 2,183 $ 1,938 $ — Operating cash outflows for operating leases 2,453 2,513 2,186 Total cash outflows for lease liability measurement $ 4,636 $ 4,451 $ 2,186 (1) Represents automobile leases that have a lease term of 12 months . The Company has made an accounting policy election not to apply the recognition requirements of ASC 842 to this asset class. The lease cost associated with these leases is recognized on a straight-line basis over the related lease term. The following table represents supplemental balance sheet information related to leases as of December 31, 2022 and 2021: December 31, 2022 2021 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 41,945 $ 40,932 Lease liabilities included in Lease liabilities - finance leases $ 65,758 $ 65,801 Operating Leases Right-of-use assets included in Other assets, net $ 49,491 $ 54,741 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 48,664 $ 54,018 Weighted Average Lease Term (in years) Finance leases 41.5 42.5 Operating leases 33.3 34.0 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.44 % 4.46 % The following table represents the future lease liability maturities as of December 31, 2022 (in thousands): Finance Operating 2023 $ 2,183 $ 2,484 2024 2,183 2,334 2025 2,224 2,322 2026 2,334 2,386 2027 2,371 2,416 2028 and thereafter 118,227 86,094 Total lease payments 129,522 98,036 Less: Imputed interest (63,764) (49,372) Present value of lease liabilities $ 65,758 $ 48,664 As of December 31, 2022, the Company has not entered into any lease agreements that are set to commence in the future. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS The Company provides management services to certain joint ventures and other related parties. Management agreements provide for fee income to the Company based on a percentage of revenues at the managed stores. Total management fees for unconsolidated real estate ventures or other entities in which the Company held an ownership interest for the years ending December 31, 2022, 2021 and 2020 were $5.1 million, $4.9 million and $3.8 million, respectively. The management agreements for certain joint ventures, other related parties and third-party stores provide for the reimbursement to the Company for certain expenses incurred to manage the stores. These reimbursements consist of amounts due for management fees, payroll and other store expenses. The amounts due to the Company were $15.9 million and $15.4 million as of December 31, 2022 and 2021, respectively, and are included in Other Assets, net on the Company’s consolidated balance sheets. Additionally, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $64.4 million and $32.4 million as of December 31, 2022 and 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 years ended December 31, 2022, 2021 and 2020, the Company recognized $0.6 million, $1.3 million and $0.7 million, respectively, in fees associated with property transactions. 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 the year ended December 31, 2022, the Company recognized income associated with this ground lease of $0.2 million. This income is included in the component of other (expense) income designated as Other on the consolidated statements of operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 15. COMMITMENTS AND CONTINGENCIES Development Commitments The Company has agreements with developers for the construction of two new self-storage properties (see note 4), which will require payments of approximately $34.6 million, due in installments upon completion of certain construction milestones, during 2023 and 2024. Litigation From time to time, the Company is involved in claims which arise in the ordinary course of business. In accordance with applicable accounting guidance, management establishes an accrued liability for claim expenses, insurance retention and litigation costs when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be exposure to loss in excess of those amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions and known and unknown uncertainties. In the opinion of management, the Company has made adequate provisions for potential liabilities, arising from any such matters, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED COMPENSATION PLANS | |
SHARE-BASED COMPENSATION PLANS | 16. SHARE-BASED COMPENSATION PLANS The Company has a share-based compensation plan (the “Plan”) which it utilizes to compensate certain employees and non-employee trustees. The Plan was last amended and restated in 2016. The Plan provides for the grant of share options, share appreciation rights, restricted shares, performance units, which may be denominated in cash or shares, including restricted shares and restricted share units, and other share-based awards, including unrestricted common shares or awards denominated or payable in, or valued in whole or part by reference to, common shares. Share options granted under the Plan may be non-qualified share options or incentive share options. Upon shareholder approval of the amendment and restatement of the Plan on June 1, 2016, 4,500,000 additional common shares were made available for award under the Plan. As a result, these 4,500,000 additional shares, together with the 991,117 shares that remained available for future awards under the Plan at the time of the shareholder approval, plus any common shares that are restored to availability upon expiration or forfeiture of outstanding options or restricted share awards, would constitute the “Aggregate Share Reserve”. As of December 31, 2022: (i) 1,941,786 common shares remained available for future awards under the Plan; (ii) 340,952 unvested restricted share awards were outstanding under the Plan; and (iii) 2,537,038 common shares were subject to outstanding options under the Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Trustees (the “Compensation Committee”), which is appointed by the Board of Trustees. The Compensation Committee interprets the Plan and, subject to its right to delegate authority to grant awards, determines the terms and provisions of option grants and share awards. Under the Plan, the Compensation Committee determines the vesting schedule of each award, subject to a one-year minimum vesting requirement for share options, share appreciation rights, and certain restricted share and restricted share unit awards, but with permitted acceleration of vesting in the event of a participant’s death or disability, or in the event of a change in control or certain changes in our capital structure. Notwithstanding the foregoing one-year minimum vesting limitation, up to five percent of the shares subject to the Aggregate Share Reserve may be subject to awards that are not subject to such limitation. The exercise price for options is equivalent to the fair value of the underlying common shares at the grant date. The Compensation Committee also determines the term of each option, which shall not exceed 10 years from the grant date. Share Options The fair values for options granted in 2022, 2021 and 2020 were estimated at the time the options were granted using the Black-Scholes option-pricing model applying the following weighted average assumptions: Assumptions: 2022 2021 2020 Risk-free interest rate 1.5 % 0.6 % 1.9 % Expected dividend yield 3.7 % 3.8 % 3.9 % Volatility (1) 25.00 % 25.00 % 20.00 % Weighted average expected life of the options (2) 6.0 years 6.0 years 6.0 years Weighted average grant date fair value of options granted per share $ 8.83 $ 4.62 $ 3.66 Term 10.0 years 10.0 years 10.0 years (1) Expected volatility is based upon the Company’s historical daily share prices. (2) The expected life is based on the contractual term of the options as well as the vesting period. In 2022, 2021 and 2020 the Company recognized compensation expense related to options issued to employees and executives of approximately $2.5 million, $2.3 million and $2.0 million, respectively, which is included in General and administrative expense on the Company’s consolidated statements of operations. The share options vest ratably over three years . As of December 31, 2022, the Company had approximately $2.8 million of unrecognized option compensation cost related to all grants that will be recognized over a weighted average period of 1.7 years. The table below summarizes the option activity under the Plan for the year ended December 31, 2022: Options Weighted Average Strike Price Weighted Average Remaining Contractual Term (Years) Balance at December 31, 2021 2,263,804 $ 29.63 6.82 Options granted 324,840 56.91 9.01 Options exercised (51,606) 30.80 7.29 Balance at December 31, 2022 2,537,038 $ 33.10 6.21 Vested or expected to vest at December 31, 2022 2,537,038 $ 33.10 6.21 Exercisable at December 31, 2022 1,636,544 $ 28.42 5.14 As of December 31, 2022, the aggregate intrinsic value of options that were exercisable was approximately $19.4 million. As of that date, the aggregate intrinsic value of options that had vested or were expected to vest was approximately $23.6 million. The aggregate intrinsic value of options exercised was approximately $1.0 million, $10.6 million and $0.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Restricted Shares & Performance Units During 2022, 2021 and 2020 the Company granted restricted shares to employees and trustees and also granted performance units to certain executives. The fair values for restricted share awards made under the Plan were valued at the grant date fair value, which is the market price of the underlying common shares. The shares vest over either a 3 -year or 5 -year period beginning with the first anniversary of the grant. Performance units represent the right to earn common shares. The performance units were granted in the form of deferred share units with a market condition, entitling the holders thereof to receive common shares at a future date. The performance units are awarded based on the Company’s total return to shareholders with respect to a specified peer group consisting of publicly traded REITs over a three-year period. The performance units cliff vest upon the third anniversary of the effective date. The Company used a Monte Carlo simulation analysis to estimate the fair value of the awards, the key assumptions of which are as follows: Assumptions: 2022 2021 2020 Risk-free interest rate 1.0 % 0.2 % 1.7 % Volatility (1) 28.00 % 28.00 % 19.00 % (1) Expected volatility is based upon the Company’s historical daily share prices. During the years ended December 31, 2022, 2021 and 2020, the Company recognized compensation expense related to restricted shares and performance units of approximately $6.5 million, $5.8 million and $5.2 million, respectively, which is included in General and administrative expense on the Company’s consolidated statements of operations. The following table presents non-vested restricted share and performance unit activity under the Plan for the year ended December 31, 2022: Number of Non- Vested Restricted Shares and Performance Units Non-Vested at January 1, 2022 387,701 Granted 126,304 Vested (164,228) Forfeited (8,825) Non-Vested at December 31, 2022 340,952 The weighted average fair value of restricted shares and performance units granted during the years ended December 31, 2022, 2021 and 2020 was $61.41 , $39.37 and $32.39 , respectively. The total fair value of restricted shares and performance units vested during the years ended December 31, 2022, 2021 and 2020 was $5.6 million, $4.8 million and $6.0 million, respectively. As of December 31, 2022 the Company had approximately $7.6 million of remaining unrecognized restricted share and performance unit compensation costs that are expected to be recognized over a weighted average period of 2.0 years. |
EARNINGS PER SHARE AND UNIT AND
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 17. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL Earnings per common share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per common share: For the year ended December 31, 2022 2021 2020 (dollars and shares in thousands, except per share amounts) Net income $ 292,472 $ 230,813 $ 167,611 Noncontrolling interests in the Operating Partnership (1,931) (7,873) (1,825) Noncontrolling interest in subsidiaries 722 542 (165) Net income attributable to the Company’s common shareholders $ 291,263 $ 223,482 $ 165,621 Weighted average basic shares outstanding 224,928 203,832 194,147 Share options and restricted share units 953 1,177 796 Weighted average diluted shares outstanding (1) 225,881 205,009 194,943 Basic earnings per share attributable to common shareholders $ 1.29 $ 1.10 $ 0.85 Diluted earnings per share attributable to common shareholders (2) $ 1.29 $ 1.09 $ 0.85 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: For the year ended December 31, 2022 2021 2020 (dollars and units in thousands, except per unit amounts) Net income $ 292,472 $ 230,813 $ 167,611 Operating Partnership interests of third parties (1,931) (7,873) (1,825) Noncontrolling interest in subsidiaries 722 542 (165) Net income attributable to common unitholders $ 291,263 $ 223,482 $ 165,621 Weighted average basic units outstanding 224,928 203,832 194,147 Unit options and restricted share units 953 1,177 796 Weighted average diluted units outstanding (1) 225,881 205,009 194,943 Basic earnings per unit attributable to common unitholders $ 1.29 $ 1.10 $ 0.85 Diluted earnings per unit attributable to common unitholders (2) $ 1.29 $ 1.09 $ 0.85 (1) For the years ended December 31, 2022, 2021 and 2020, the Company declared cash dividends per common share/unit of $1.78 , $1.45 and $1.33 , respectively. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit as the exercise price was higher than the average share price of the Company for the years ended December 31, 2022 and 2020 were 0.3 million and 0.8 million, respectively. There were no anti-dilutive options for the year ended December 31, 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 OP unit may be redeemed for cash, or at the Company’s option, common units on a one-for-one basis. The following is a summary of OP and common units outstanding: As of December 31, 2022 2021 2020 Outstanding OP units 1,426,549 1,901,595 7,420,828 Outstanding common units 224,603,462 223,917,993 197,405,989 Common Shares On November 19, 2021, the Company closed an underwritten offering of 15.5 million common shares at a public offering price of $51.00 per share, resulting in net proceeds of $765.6 million, after deducting offering costs. The Company maintains an at-the-market equity program that enables it to offer and sell up to 60.0 million common shares through sales agents pursuant to equity distribution agreements (the “Equity Distribution Agreements”). The Company’s sales activity under the program for the years ended December 31, 2022, 2021 and 2020 is summarized below: For the year ended December 31, 2022 2021 2020 (dollars and shares in thousands, except per share amounts) Number of shares sold 102 4,982 3,627 Average sales price per share $ 50.64 $ 40.57 $ 33.69 Net proceeds after deducting offering costs $ 4,936 $ 199,977 $ 120,727 The proceeds from the sales of common shares under the program during the years ended December 31, 2022, 2021 and 2020 were used to fund the acquisition and development of self-storage properties and for general corporate purposes. As of December 31, 2022, 2021 and 2020, 5.8 million common shares, 5.9 million common shares and 10.9 million common shares, respectively, remained available for issuance under the Equity Distribution Agreements. |
SCHEDULE III REAL ESTATE AND RE
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2022 | |
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | |
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION | CUBESMART SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION December 31, 2022 (dollars in thousands) Gross Carrying Amount at Total Initial Cost Costs December 31, 2022 Rentable Buildings Subsequent Buildings Accumulated Number of Square Feet & to & Depreciation State Stores (unaudited) Encumbrances Land Improvements Acquisition Land Improvements Total (A) Arizona 48 3,089,826 $ — $ 98,442 $ 389,514 $ 26,017 $ 99,495 $ 399,753 $ 499,248 $ 49,843 California 63 4,765,486 — 371,460 683,683 33,592 373,301 660,593 1,033,894 98,929 Colorado 10 654,252 — 11,812 46,755 4,386 11,787 45,056 56,843 13,740 Connecticut 22 1,200,002 — 22,023 82,375 20,316 23,568 86,984 110,552 34,873 Florida 90 6,796,098 — 104,987 531,360 91,455 112,652 548,011 660,663 174,952 Georgia 22 1,657,378 — 20,015 117,825 10,212 19,825 115,798 135,623 30,589 Illinois 43 2,760,969 — 54,493 221,022 30,106 54,358 226,591 280,949 71,326 Indiana 1 70,386 — 1,134 5,589 250 1,134 5,833 6,967 1,565 Maryland 20 1,683,821 4,906 40,467 214,985 13,729 41,324 216,272 257,596 50,456 Massachusetts 20 1,252,577 — 31,948 159,000 10,742 32,203 163,982 196,185 32,521 Minnesota 2 176,296 — 2,621 21,655 408 2,621 22,063 24,684 2,740 Nevada 22 1,702,416 — 69,956 394,023 6,198 71,703 398,249 469,952 22,383 New Jersey 28 1,983,356 — 45,864 188,139 37,639 49,372 206,349 255,721 65,269 New Mexico 3 182,261 — 2,866 9,367 1,826 2,867 7,977 10,844 3,433 New York 59 4,742,378 146,905 427,921 1,331,857 50,817 440,133 1,354,122 1,794,255 290,358 North Carolina 9 611,792 — 10,349 44,680 6,534 10,788 47,530 58,318 13,397 Ohio 20 1,294,303 — 13,529 51,265 18,083 14,938 54,639 69,577 21,590 Pennsylvania 12 890,385 — 18,769 99,199 10,731 18,723 104,496 123,219 21,935 Rhode Island 4 247,305 — 3,480 17,156 1,633 3,480 18,732 22,212 4,839 South Carolina 8 432,389 — 6,117 31,039 1,363 6,117 32,402 38,519 3,362 Tennessee 9 755,655 2,148 9,117 54,403 5,781 8,992 52,924 61,916 14,483 Texas 76 5,446,871 — 110,252 476,749 34,511 110,569 485,325 595,894 103,599 Utah 4 239,388 — 10,763 2,844 2,831 10,622 4,208 14,830 1,944 Virginia 11 1,060,480 — 37,282 138,668 4,355 37,283 135,792 173,075 29,041 Washington D.C. 5 410,676 — 28,759 80,996 2,369 28,803 78,847 107,650 18,078 Other Corporate Assets — — — 1,480 9,654 1,367 1,480 10,978 12,458 2,847 611 44,106,746 $ 153,959 $ 1,555,906 $ 5,403,802 $ 427,251 $ 1,588,138 $ 5,483,506 $ 7,071,644 $ 1,178,092 (A) Depreciation on the buildings and improvements is recorded on a straight-line basis over their estimated useful lives, which range from five to 39 years . Activity in storage properties during the period from January 1, 2020 through December 31, 2022 was as follows (in thousands): 2022 2021 2020 Storage properties* Balance at beginning of year $ 7,183,494 $ 5,489,754 $ 4,699,844 Acquisitions & improvements 191,495 1,795,965 825,247 Fully depreciated assets (32,344) (52,722) (83,418) Dispositions and other (6,230) (19,408) (8,533) Construction in progress, net (40,637) (30,095) 14,718 Right-of-use assets - finance leases — — 41,896 Balance at end of year $ 7,295,778 $ 7,183,494 $ 5,489,754 Accumulated depreciation* Balance at beginning of year $ 1,085,824 $ 983,940 $ 925,359 Depreciation expense 195,522 160,933 143,952 Fully depreciated assets (32,344) (52,722) (83,418) Dispositions and other (1,227) (6,327) (1,953) Balance at end of year $ 1,247,775 $ 1,085,824 $ 983,940 Storage properties, net $ 6,048,003 $ 6,097,670 $ 4,505,814 * As of December 31, 2022, the aggregate cost of Storage properties for federal income tax purposes was approximately $7,643.8 million. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned and/or controlled subsidiaries. The portion of these entities not owned by the Company is presented as noncontrolling interests as of and during the periods consolidated. All significant intercompany accounts and transactions have been eliminated in consolidation. When the Company obtains an economic interest in an entity, the Company evaluates the entity to determine if the entity is deemed a variable interest entity (“VIE”) and if the Company is deemed to be the primary beneficiary in accordance with authoritative guidance issued on the consolidation of VIEs. To the extent that the Company (i) has the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE and (ii) has the obligation or rights to absorb the VIE's losses or receive its benefits, then the Company is considered the primary beneficiary. When an entity is not deemed to be a VIE, the Company considers the provisions of additional guidance to determine whether a general partner, or the general partners as a group, controls a limited partnership or similar entity when the limited partners have certain rights. The Company consolidates (i) entities that are VIEs and of which the Company is deemed to be the primary beneficiary, and (ii) entities that are non-VIEs which the Company controls and which the limited partners do not have the ability to dissolve or remove the Company without cause nor substantive participating rights. The Operating Partnership meets the criteria as a VIE. The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership. |
Noncontrolling Interests | Noncontrolling Interests The Financial Accounting Standards Board (“FASB”) issued authoritative guidance regarding noncontrolling interests in consolidated financial statements which was effective on January 1, 2009. The guidance states that noncontrolling interests are the portion of equity (net assets) in a subsidiary not attributable, directly or indirectly, to a parent. The ownership interests in the subsidiary that are held by owners other than the parent are noncontrolling interests. Under the guidance, such noncontrolling interests are reported on the consolidated balance sheets within equity, separately from the Company’s equity. On the consolidated statements of operations, revenues, expenses and net income or loss from controlled or consolidated entities that are less than wholly owned are reported at the consolidated amounts, including both the amounts attributable to the Company and noncontrolling interests. Presentation of consolidated equity activity is included for both quarterly and annual financial statements, including beginning balances, activity for the period and ending balances for shareholders’ equity, noncontrolling interests and total equity. However, per the FASB issued authoritative guidance on the classification and measurement of redeemable securities, securities that are redeemable for cash or other assets at the option of the holder, not solely within the control of the issuer, must be classified outside of permanent equity. This would result in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity in the consolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. Additionally, with respect to noncontrolling interests for which the Company has a choice to settle the contract by delivery of its own shares, the Company considered the FASB issued guidance on accounting for derivative financial instruments indexed to, and potentially settled in, a Company’s own stock to evaluate whether the Company controls the actions or events necessary to issue the maximum number of shares that could be required to be delivered under share settlement of the contract. The guidance also requires that noncontrolling interests are adjusted each period so that the carrying value equals the greater of its carrying value based on the accumulation of historical cost or its redemption fair value. The consolidated results of the Company include results attributable to units of the Operating Partnership that are not owned by the Company. These interests were issued in the form of OP units and were a component of the consideration the Company paid to acquire certain self-storage properties. Limited partners who acquired OP units have the right to require the Operating Partnership to redeem part or all of their OP units for, at the Company’s option, an equivalent number of common shares of the Company or cash based upon the fair value of an equivalent number of common shares of the Company. However, the operating agreement contains certain circumstances that could result in a net cash settlement outside the control of the Company, as the Company does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance discussed above, the Company will continue to record these noncontrolling interests outside of permanent equity in the consolidated balance sheets. Net income or loss related to these noncontrolling interests is excluded from net income or loss in the consolidated statements of operations. The Company has adjusted the carrying value of its noncontrolling interests subject to redemption value to the extent applicable. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interests, the Operating Partnership reflected these interests at their redemption value as of December 31, 2022, as the estimated redemption value exceeded their carrying value. Disclosure of such redemption provisions is provided in note 12. |
Estimates | Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Although management believes the assumptions and estimates made are reasonable and appropriate, as discussed in the applicable sections throughout these consolidated financial statements, different assumptions and estimates could materially impact the Company’s reported results. The current economic environment has increased the degree of uncertainty inherent in these estimates and assumptions, and changes in market conditions could impact the Company’s future operating results. |
Self-Storage Properties | Self-Storage Properties Self-storage properties are carried at historical cost less accumulated depreciation and impairment losses. The cost of self-storage properties reflects their purchase price or development cost. Acquisition costs are accounted for in accordance with Accounting Standard Update (“ASU”) No. 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which was adopted on January 1, 2018, and are generally capitalized. Costs incurred for the renovation of a store are capitalized to the Company’s investment in that store. Ordinary repairs and maintenance are expensed as incurred. Major replacements and betterments, which improve or extend the life of the asset, are capitalized and depreciated over their estimated useful lives. The costs to develop self-storage properties are capitalized to construction in progress while the projects are under development. |
Purchase Price Allocation | Purchase Price Allocation When stores are acquired, the purchase price is allocated to the tangible and intangible assets acquired and liabilities assumed based on estimated fair values. Allocations to land, building and improvements and equipment are recorded based upon their respective fair values as estimated by management. If appropriate, the Company allocates a portion of the purchase price to an intangible asset attributed to the value of in-place leases. This intangible is generally amortized to expense over the expected remaining term of the respective leases. Substantially all of the storage leases in place at acquired stores are at market rates, as the majority of the leases are month-to-month contracts. Accordingly, to date, no portion of the purchase price has been allocated to above- or below-market lease intangibles associated with storage leases assumed at acquisition. Above- or below- market lease intangibles associated with assumed leases in which the Company serves as lessee are recorded as an adjustment to the right-of-use asset and reflect the difference between the contractual amounts to be paid pursuant to each in-place lease and management’s estimate of fair market lease rates. These amounts are amortized over the term of the lease. To date, no intangible asset has been recorded for the value of customer relationships, because the Company does not have any concentrations of significant customers and the average customer turnover is fairly frequent. |
Depreciation and Amortization | Depreciation and Amortization The costs of self-storage properties and improvements are depreciated using the straight-line method based on useful lives ranging from five to 39 years . Right-of-use assets associated with finance leases are amortized from the lease commencement date to the earlier of the useful life of the right-to-use asset or the end of the lease term. Fully depreciated or amortized assets and the associated accumulated depreciation or amortization are written off. The Company wrote off fully depreciated or amortized real estate assets and in-place lease intangible assets of $32.3 million and $121.6 million, respectively, for the year ended December 31, 2022, and $52.7 million and $59.9 million, respectively, for the year ended December 31, 2021. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate long-lived assets for impairment when events and circumstances such as declines in occupancy and operating results indicate that there may be an impairment. The carrying value of these long-lived assets is compared to the undiscounted future net operating cash flows, plus a terminal value, attributable to the assets to determine if the asset’s basis is recoverable. If a store’s basis is not considered recoverable, an impairment loss is recorded to the extent the net carrying value of the asset exceeds the fair value. The impairment loss recognized equals the excess of net carrying value over the related fair value of the asset. There were no impairment losses recognized during the years ended December 31, 2022, 2021 and 2020. |
Long-Lived Assets Held for Sale | Long-Lived Assets Held for Sale We consider long-lived assets to be “held for sale” upon satisfaction of the following criteria: (a) management commits to a plan to sell an asset (or group of assets), (b) the asset is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets, (c) an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, (d) the sale of the asset is probable and transfer of the asset is expected to be completed within one year , (e) the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value and (f) actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Typically these criteria are all met when the relevant asset is under contract, significant non-refundable deposits have been made by the potential buyer, the assets are immediately available for transfer, and there are no contingencies related to the sale that may prevent the transaction from closing. However, each potential transaction is evaluated based on its separate facts and circumstances. Assets classified as held for sale are reported at the lesser of carrying value or fair value less estimated costs to sell and are not depreciated. The California Yacht Club acquired through our acquisition of LAACO (defined below) has been classified as held for sale as of December 31, 2022. There were no stores classified as held for sale as of December 31, 2022. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are highly-liquid investments with original maturities of three months or less. The Company may maintain cash equivalents in financial institutions in excess of insured limits, but believes this risk is mitigated by only investing in or through major financial institutions. |
Restricted Cash | Restricted Cash Restricted cash generally consists of cash deposits required for debt service, capital replacement and expense reserves in connection with the terms of our loan agreements. |
Loan Procurement Costs | Loan Procurement Costs Loan procurement costs related to borrowings were $53.9 million and $50.1 million as of December 31, 2022 and 2021, respectively, and are reported net of accumulated amortization of $19.8 million and $14.3 million as of December 31, 2022 and 2021, respectively. In accordance with ASU No. 2015-03, Loan procurement costs, net are presented as a direct deduction from the carrying amount of the related debt liability. If there is not an associated debt liability recorded on the consolidated balance sheets, the costs are recorded as an asset net of accumulated amortization. Loan procurement costs associated with the Company’s revolving credit facility remain in Loan procurement costs, net of amortization on the Company’s consolidated balance sheets. The costs are amortized over the estimated life of the related debt using the effective interest method and are reported as Loan procurement amortization expense on the Company’s consolidated statements of operations. |
Other Assets | Other Assets Other assets are comprised of the following as of December 31, 2022 and 2021: December 31, 2022 2021 (in thousands) Intangible assets, net of accumulated amortization of $2,263 and $12,760, respectively $ 1,181 $ 108,794 Accounts receivable, net 7,932 8,145 Prepaid property taxes 8,033 6,938 Prepaid property and casualty insurance 2,129 3,352 Amounts due from affiliates (see note 14) 15,947 15,417 Assets related to deferred compensation arrangements 55,572 60,297 Right-of-use assets - operating leases 49,491 54,741 Ground lease receivable 6,138 — Other 7,559 8,021 Total other assets, net $ 153,982 $ 265,705 |
Environmental Costs | Environmental Costs Our practice is to conduct or obtain environmental assessments in connection with the acquisition or development of additional stores. Whenever the environmental assessment for one of the Company’s stores indicates that a store is impacted by soil or groundwater contamination from prior owners/operators or other sources, the Company will work with environmental consultants and where appropriate, state governmental agencies, to ensure that the store is either cleaned up, that no cleanup is necessary because the low level of contamination poses no significant risk to public health or the environment or that the responsibility for cleanup rests with a third party. |
Revenue Recognition | Revenue Recognition Management has determined that substantially all of the Company’s leases are operating leases. Rental income is recognized in accordance with the terms of the leases, which generally are month-to-month. The Company recognizes gains from sales of real estate in accordance with the guidance on transfer of nonfinancial assets. Payments received from purchasers prior to closing are recorded as deposits. Profit on real estate sold is recognized when a valid contract exists, the collectability of the sales price is reasonably assured and the control of the property has transferred. |
Advertising and Marketing Costs | Advertising and Marketing Costs The Company incurs advertising and marketing costs primarily attributable to internet marketing and other media advertisements. These costs are expensed as incurred. The Company incurred $22.4 million, $21.0 million and $16.9 million in advertising and marketing expenses for the years ended December 31, 2022, 2021 and 2020, respectively, which are included in Property operating expenses on the Company’s consolidated statements of operations. |
Equity Offering Costs | Equity Offering Costs Underwriting discounts and commissions, financial advisory fees and other offering costs are reflected as a reduction to additional paid-in capital. For the years ended December 31, 2022, 2021 and 2020, the Company recognized $0.2 million, $28.3 million and $1.5 million, respectively, of equity offering costs related to the issuance of common shares. |
Other Property Related Income | Other Property Related Income Other property related income consists of late fees, administrative charges, customer storage protection plan fees, sales of storage supplies and other ancillary revenues and is recognized in the period that it is earned. |
Capitalized Interest | Capitalized Interest The Company capitalizes interest incurred that is directly associated with construction activities until the asset is placed into service. Interest is capitalized to the related asset(s) using the weighted average rate of the Company’s outstanding debt. For the years ended December 31, 2022, 2021 and 2020, the Company capitalized |
Derivative Financial Instruments | Derivative Financial Instruments The Company carries all derivatives on the balance sheet at fair value. The Company determines the fair value of derivatives by observable prices that are based on inputs not quoted on active markets, but corroborated by market data. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. The Company’s use of derivative instruments has been limited to cash flow hedges of certain interest rate risks. The Company had no outstanding derivatives as of December 31, 2022 or 2021. |
Income Taxes | Income Taxes The Company has elected to be taxed as a REIT under Sections 856-860 of the Internal Revenue Code since the Company’s commencement of operations in 2004. In management’s opinion, the requirements to maintain these elections are being met. Accordingly, no provision for federal income taxes has been reflected in the consolidated financial statements other than for operations conducted through our taxable REIT subsidiaries. Earnings and profits, which determine the taxability of distributions to shareholders, differ from net income reported for financial reporting purposes due to differences in cost basis, the estimated useful lives used to compute depreciation, and the allocation of net income and loss for financial versus tax reporting purposes. The net tax basis in the Company’s assets was approximately $6,145.8 million and $6,113.5 million as of December 31, 2022 and 2021, respectively. Since the Company’s initial quarter as a publicly-traded REIT, it has made regular quarterly distributions to its shareholders. Distributions to shareholders are usually taxable as ordinary income, although a portion of the distribution may be designated as capital gain or may constitute a tax-free return of capital. Annually, the Company provides each of its shareholders a statement detailing the tax characterization of dividends paid during the preceding year as ordinary income, capital gain or return of capital. The characterization of the Company’s dividends for 2022 consisted of an 88.7377% ordinary income distribution and an 11.2623% capital gain distribution. The Company is subject to a 4% federal excise tax if sufficient taxable income is not distributed within prescribed time limits. The excise tax equals 4% of the annual amount, if any, by which the sum of (a) 85% of the Company’s ordinary income, (b) 95% of the Company’s net capital gains and (c) 100% of prior taxable income exceeds cash distributions and certain taxes paid by the Company. No excise tax was incurred in 2022, 2021 or 2020. Taxable REIT subsidiaries are subject to federal and state income taxes. Our taxable REIT subsidiaries had a net deferred tax liability of $1.0 million and $0.7 million as of December 31, 2022 and 2021, respectively. |
Earnings per Share and Unit | Earnings per Share and Unit Basic earnings per share and unit are calculated based on the weighted average number of common shares and restricted shares outstanding during the period. Diluted earnings per share and unit is calculated by further adjusting for the dilutive impact of share options, unvested restricted shares and contingently issuable shares outstanding during the period using the treasury stock method. Potentially dilutive securities calculated under the treasury stock method were |
Share-Based Payments | Share-Based Payments We apply the fair value method of accounting for contingently issued shares and share options issued under our incentive award plan. Accordingly, share compensation expense is recorded ratably over the vesting period relating to such contingently issued shares and options. The Company has recognized compensation expense on a straight-line method over the requisite service period, which is included in general and administrative expense on the Company’s consolidated statement of operations. The Company recognizes forfeitures on share-based payments as they occur. |
Investments in Unconsolidated Real Estate Ventures | Investments in Unconsolidated Real Estate Ventures The Company accounts for its investments in unconsolidated real estate ventures under the equity method of accounting when it is determined that the Company has the ability to exercise significant influence over the venture. Under the equity method, investments in unconsolidated real estate ventures are recorded initially at cost, as investments in real estate ventures, and subsequently adjusted for equity in earnings (losses), cash contributions, distributions and impairments. On a periodic basis, management assesses whether there are any indicators that the value of the Company’s investments in unconsolidated real estate ventures may be other than temporarily impaired. An investment is impaired only if the fair value of the investment, as estimated by management, is less than the carrying value of the investment and the decline is other than temporary. To the extent impairment that is other than temporary has occurred, the loss shall be measured as the excess of the carrying amount of the investment over the fair value of the investment, as estimated by management. The determination as to whether impairment exists requires significant management judgment about the fair value of the Company’s ownership interest. Fair value is determined through various valuation techniques, including but not limited to, discounted cash flow models, quoted market values and third-party appraisals. There were Differences between the Company's net investment in unconsolidated real estate ventures and its underlying equity in the net assets of the ventures are primarily a result of the Company acquiring interests in existing unconsolidated real estate ventures. As of December 31, 2022 and 2021, the Company’s net investment in unconsolidated real estate ventures was greater than its underlying equity in the net assets of the unconsolidated real estate ventures by an aggregate of $32.7 million and $33.6 million, respectively. These differences are amortized over the lives of the self-storage properties owned by the real estate ventures. This amortization is included in equity in earnings of real estate ventures on the Company’s consolidated statements of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06 – Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in an Entity’s Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of certain settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted earnings per share computation. The standard was effective on January 1, 2022. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. |
Concentration of Credit Risk | Concentration of Credit Risk The Company’s stores are located in major metropolitan and rural areas and have numerous customers per store. No single customer represents a significant concentration of our revenues. The stores in New York, Florida, California and Texas provided approximately 16%, 15%, 11% and 9%, respectively, of the Company’s total revenues for the year ended December 31, 2022. The stores in New York, Florida, Texas and California provided approximately 19%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2021. The stores in New York, Florida, Texas and California provided approximately 16%, 15%, 9% and 8%, respectively, of the Company’s total revenues for the year ended December 31, 2020. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of other assets | Other assets are comprised of the following as of December 31, 2022 and 2021: December 31, 2022 2021 (in thousands) Intangible assets, net of accumulated amortization of $2,263 and $12,760, respectively $ 1,181 $ 108,794 Accounts receivable, net 7,932 8,145 Prepaid property taxes 8,033 6,938 Prepaid property and casualty insurance 2,129 3,352 Amounts due from affiliates (see note 14) 15,947 15,417 Assets related to deferred compensation arrangements 55,572 60,297 Right-of-use assets - operating leases 49,491 54,741 Ground lease receivable 6,138 — Other 7,559 8,021 Total other assets, net $ 153,982 $ 265,705 |
STORAGE PROPERTIES (Tables)
STORAGE PROPERTIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
STORAGE PROPERTIES | |
Summary of real estate assets | December 31, 2022 2021 (in thousands) Land $ 1,588,138 $ 1,565,463 Buildings and improvements 5,483,506 5,368,383 Equipment 144,605 129,531 Construction in progress 37,584 78,221 Right-of-use assets - finance leases 41,945 41,896 Storage properties 7,295,778 7,183,494 Less: Accumulated depreciation (1,247,775) (1,085,824) Storage properties, net $ 6,048,003 $ 6,097,670 |
Schedule of acquisitions and dispositions of real estate assets | 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 2020 Acquisitions: Texas Asset San Antonio, TX February 2020 1 $ 9,025 Maryland Asset Baltimore-Towson, MD April 2020 1 17,200 New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA April 2020 1 48,450 Florida Asset Palm Bay-Melbourne-Titusville, FL November 2020 1 3,900 Texas Asset Austin-Round Rock, TX November 2020 1 10,750 Texas Asset Dallas-Fort Worth-Arlington, TX November 2020 1 10,150 Nevada Asset Las Vegas-Paradise, NV December 2020 1 16,800 New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 6,750 Florida Asset Tampa-St. Petersburg-Clearwater, FL December 2020 1 10,000 Virginia Asset Washington-Arlington-Alexandria, DC-VA-MD-WV December 2020 1 17,350 Storage Deluxe Assets New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 8 540,000 Florida Assets Orlando-Kissimmee, FL / Deltona-Daytona Beach-Ormond Beach, FL December 2020 3 45,500 21 $ 735,875 2020 Disposition: New York Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2020 1 $ 12,750 1 $ 12,750 (1) Acquired by a consolidated joint venture in which the Company holds a 50% interest. (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 year ended December 31, 2022. The California Yacht Club is classified as held for sale on the Company’s consolidated balance sheets as of December 31, 2022 (see note 4). |
INVESTMENT ACTIVITY (Tables)
INVESTMENT ACTIVITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
INVESTMENT ACTIVITY | |
Schedule of capitalized costs for investments in storage properties | CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) 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 Brooklyn, NY (3) 1 Q2 2020 100% 45,900 7 $ 202,600 (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. (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 this 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) These stores were previously owned by two separate consolidated joint ventures, of which the Company held a 51% ownership interest in each. On September 29, 2020, the noncontrolling member in the venture that owned the Brooklyn, NY store put its 49% interest in the venture to the Company for $10.0 million, of which $1.0 million was paid in cash. The Company issued 276,497 OP Units that were valued at approximately $9.0 million as consideration for the remainder of the purchase price (see note 12). On June 29, 2021, the noncontrolling member in the venture that owned the East Meadow, NY store put its 49% interest in the venture to the Company for $6.6 million. The cash payments related to these transactions are included in Development costs in the consolidated statements of cash flows. |
Schedule of relevant components contemplated in the acquisition of LAACO | Amount (in thousands) Costs contemplated: Capitalized costs: LAACO partnership units (1) $ 1,648,426 Long-term debt assumed and repaid at closing 40,880 Payments to LAACO management (capitalized) (2) 16,807 Other transaction costs (3) 13,407 Total capitalized costs $ 1,719,520 Payments and anticipated payments to LAACO management (expensed) (2) 25,144 Total costs contemplated $ 1,744,664 Estimated fair value of Club Operations (included in total costs contemplated above) $ 46,800 (1) Represents the acquisition of all 167,557 outstanding partnership units for $9,838 per unit. (2) Upon the acquisition of LAACO, the Company assumed severance obligations payable to certain employees pursuant to pre-existing agreements. Based on the specific details of the arrangements, $16.8 million in costs were capitalized to the basis of the acquired properties while $25.1 million were considered post-combination compensation expenses. Of this $25.1 million, $10.3 million and $14.8 million were included in the component of other (expense) income designated as Other for the years ended December 31, 2022 and 2021, respectively. (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 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, December 31, Unconsolidated Real Estate Ventures Interest 2022 2021 2022 2021 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,789 $ 14,225 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 20,994 21,536 191 V CUBE LLC ("HVP V") (2) 20% 6 5 14,318 16,080 191 IV CUBE Southeast LLC ("HVPSE") (3) 10% - 14 — 4,541 191 IV CUBE LLC ("HVP IV") 20% 28 28 19,853 23,223 CUBE HHF Northeast Venture LLC ("HHFNE") 10% 13 13 1,101 1,291 CUBE HHF Limited Partnership ("HHF") 50% 28 28 35,938 38,855 77 90 $ 105,993 $ 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 December 31, 2022, this difference was $13.1 million for Fontana and $19.6 million for RCSS. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. (2) During the year ended December 31, 2022, HVP V acquired one store located in New Jersey for a purchase price of $33.2 million. The Company contributed $0.1 million towards this purchase, which was primarily funded by HVP V's secured term loan. (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. The stores owned by HVPSE 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 December 31, 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. |
Summary of the financial position of the ventures | December 31, 2022 2021 Assets (in thousands) Storage properties, net $ 741,563 $ 850,250 Other assets 11,708 34,760 Total assets $ 753,271 $ 885,010 Liabilities and equity Debt $ 468,783 $ 526,972 Other liabilities 16,626 14,500 Equity CubeSmart 73,289 86,083 Joint venture partners 194,573 257,455 Total liabilities and equity $ 753,271 $ 885,010 |
Summary of results of operations of the ventures | For the year ended December 31, 2022 2021 2020 (in thousands) Total revenues $ 102,910 $ 88,449 $ 67,239 Operating expenses (42,408) (37,967) (30,755) Other expenses (484) (1,138) (430) Interest expense, net (15,568) (12,031) (11,585) Depreciation and amortization (36,866) (37,805) (33,086) Gains from sale of real estate, net 114,107 46,966 — Net income (loss) $ 121,691 $ 46,474 $ (8,617) Company’s share of net income (loss) $ 48,877 $ 25,275 $ 178 |
UNSECURED SENIOR NOTES (Tables)
UNSECURED SENIOR NOTES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Senior Notes | |
Summary of debt | 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 (11,801) (13,455) Less: Loan procurement costs, net (15,849) (18,336) Total unsecured senior notes, net $ 2,772,350 $ 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 | 12 Months Ended |
Dec. 31, 2022 | |
Summary of debt | Carrying Value as of December 31, Effective Maturity Mortgage Loans and Notes Payable 2022 2021 Interest Rate Date (in thousands) Nashville V, TN $ 2,148 $ 2,206 3.85 % Jun-23 New York, NY 28,669 29,340 3.51 % Jun-23 Annapolis I, MD 4,906 5,099 3.78 % May-24 Brooklyn XV, NY 15,093 15,423 2.15 % May-24 Long Island City IV, NY 12,270 12,580 2.15 % May-24 Long Island City II, NY 18,283 18,714 2.25 % Jul-26 Long Island City III, NY 18,290 18,723 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 153,959 156,385 Plus: Unamortized fair value adjustment 10,228 12,981 Less: Loan procurement costs, net (1,269) (1,690) Total mortgage loans and notes payable, net $ 162,918 $ 167,676 |
Schedule of the future principal payment requirements on the outstanding mortgage loans and notes payable | 2023 $ 32,591 2024 32,329 2025 979 2026 33,760 2027 — 2028 and thereafter 54,300 Total mortgage payments 153,959 Plus: Unamortized fair value adjustment 10,228 Less: Loan procurement costs, net (1,269) Total mortgage loans and notes payable, net $ 162,918 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
Summary of changes in accumulated other comprehensive loss by component | Accumulated other comprehensive loss represents unrealized losses on interest rate swaps (see note 10). The following table summarizes the changes in accumulated other comprehensive loss for the years ended December 31, 2022 and 2021. December 31, 2022 2021 (in thousands) Beginning balance $ (575) $ (656) Reclassification of realized losses on interest rate swaps (1) 81 81 Ending balance (494) (575) Less: portion included in noncontrolling interests in the Operating Partnership 3 5 Total accumulated other comprehensive loss included in equity $ (491) $ (570) (1) See note 10 for additional information about the effects of the amounts reclassified. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities carried at fair value | December 31, 2022 December 31, 2021 (in thousands) Carrying value $ 2,996,168 $ 3,145,785 Fair value 2,568,103 3,256,128 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests in subsidiaries | CubeSmart Number Ownership December 31, 2022 Consolidated Joint Ventures of Stores Interest Total Assets Total Liabilities Related Party Loans (1) (in thousands) 1074 Raritan Road, LLC ("Clark") 1 90% $ 3,500 $ 5 $ — Astoria Investors, LLC ("Astoria") 1 70% 24,763 10,161 9,238 CS 750 W Merrick Rd, LLC ("Merrick") 1 51% 37,140 17,142 — CS Lock Up Anoka, LLC ("Anoka") 1 50% 10,934 5,581 5,540 CS Valley Forge Village Storage, LLC ("VFV") 1 70% 20,576 14,863 14,792 CS Vienna, LLC ("Vienna") 1 80% 32,400 35,085 34,875 SH3, LLC ("SH3") 1 90% 38,165 274 — 7 $ 167,478 $ 83,111 $ 64,445 (1) Related party loans represent amounts payable from the joint venture to the Company and are included in total liabilities within the table above. The loans and related party interest have been eliminated for consolidation purposes. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LEASES | |
Summary of lease cost | Year Ended December 31, 2022 2021 2020 Finance lease cost: Amortization of finance lease right-of-use assets $ 964 $ 964 $ 49 Interest expense related to finance lease liabilities 2,140 2,139 64 Operating lease cost 2,980 3,278 2,856 Short-term lease cost (1) 868 1,173 1,114 Total lease costs $ 6,952 $ 7,554 $ 4,083 Cash paid for amounts included in measurement of lease liabilities: Operating cash outflows for finance leases $ 2,183 $ 1,938 $ — Operating cash outflows for operating leases 2,453 2,513 2,186 Total cash outflows for lease liability measurement $ 4,636 $ 4,451 $ 2,186 (1) Represents automobile leases that have a lease term of 12 months . The Company has made an accounting policy election not to apply the recognition requirements of ASC 842 to this asset class. The lease cost associated with these leases is recognized on a straight-line basis over the related lease term. |
Schedule of balance sheet information associated with operating leases | December 31, 2022 2021 (dollars in thousands) Finance Leases Right-of-use assets included in Storage properties, net $ 41,945 $ 40,932 Lease liabilities included in Lease liabilities - finance leases $ 65,758 $ 65,801 Operating Leases Right-of-use assets included in Other assets, net $ 49,491 $ 54,741 Lease liabilities included in Accounts payable, accrued expenses and other liabilities $ 48,664 $ 54,018 Weighted Average Lease Term (in years) Finance leases 41.5 42.5 Operating leases 33.3 34.0 Weighted Average Discount Rate Finance leases 3.25 % 3.25 % Operating leases 4.44 % 4.46 % |
Schedule of future operating lease liability maturities | The following table represents the future lease liability maturities as of December 31, 2022 (in thousands): Finance Operating 2023 $ 2,183 $ 2,484 2024 2,183 2,334 2025 2,224 2,322 2026 2,334 2,386 2027 2,371 2,416 2028 and thereafter 118,227 86,094 Total lease payments 129,522 98,036 Less: Imputed interest (63,764) (49,372) Present value of lease liabilities $ 65,758 $ 48,664 |
SHARE-BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SHARE-BASED COMPENSATION PLANS | |
Schedule of assumptions used for estimating the fair value of share options using the Black-Scholes option-pricing model | Assumptions: 2022 2021 2020 Risk-free interest rate 1.5 % 0.6 % 1.9 % Expected dividend yield 3.7 % 3.8 % 3.9 % Volatility (1) 25.00 % 25.00 % 20.00 % Weighted average expected life of the options (2) 6.0 years 6.0 years 6.0 years Weighted average grant date fair value of options granted per share $ 8.83 $ 4.62 $ 3.66 Term 10.0 years 10.0 years 10.0 years (1) Expected volatility is based upon the Company’s historical daily share prices. (2) The expected life is based on the contractual term of the options as well as the vesting period. |
Summary of option activity | Options Weighted Average Strike Price Weighted Average Remaining Contractual Term (Years) Balance at December 31, 2021 2,263,804 $ 29.63 6.82 Options granted 324,840 56.91 9.01 Options exercised (51,606) 30.80 7.29 Balance at December 31, 2022 2,537,038 $ 33.10 6.21 Vested or expected to vest at December 31, 2022 2,537,038 $ 33.10 6.21 Exercisable at December 31, 2022 1,636,544 $ 28.42 5.14 |
Schedule of non-vested restricted share activity | Number of Non- Vested Restricted Shares and Performance Units Non-Vested at January 1, 2022 387,701 Granted 126,304 Vested (164,228) Forfeited (8,825) Non-Vested at December 31, 2022 340,952 |
Schedule of estimation of the fair value of the awards, the key assumptions | Assumptions: 2022 2021 2020 Risk-free interest rate 1.0 % 0.2 % 1.7 % Volatility (1) 28.00 % 28.00 % 19.00 % (1) Expected volatility is based upon the Company’s historical daily share prices. |
EARNINGS PER SHARE AND UNIT A_2
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 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: For the year ended December 31, 2022 2021 2020 (dollars and shares in thousands, except per share amounts) Net income $ 292,472 $ 230,813 $ 167,611 Noncontrolling interests in the Operating Partnership (1,931) (7,873) (1,825) Noncontrolling interest in subsidiaries 722 542 (165) Net income attributable to the Company’s common shareholders $ 291,263 $ 223,482 $ 165,621 Weighted average basic shares outstanding 224,928 203,832 194,147 Share options and restricted share units 953 1,177 796 Weighted average diluted shares outstanding (1) 225,881 205,009 194,943 Basic earnings per share attributable to common shareholders $ 1.29 $ 1.10 $ 0.85 Diluted earnings per share attributable to common shareholders (2) $ 1.29 $ 1.09 $ 0.85 Earnings per common unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per common unit: For the year ended December 31, 2022 2021 2020 (dollars and units in thousands, except per unit amounts) Net income $ 292,472 $ 230,813 $ 167,611 Operating Partnership interests of third parties (1,931) (7,873) (1,825) Noncontrolling interest in subsidiaries 722 542 (165) Net income attributable to common unitholders $ 291,263 $ 223,482 $ 165,621 Weighted average basic units outstanding 224,928 203,832 194,147 Unit options and restricted share units 953 1,177 796 Weighted average diluted units outstanding (1) 225,881 205,009 194,943 Basic earnings per unit attributable to common unitholders $ 1.29 $ 1.10 $ 0.85 Diluted earnings per unit attributable to common unitholders (2) $ 1.29 $ 1.09 $ 0.85 (1) For the years ended December 31, 2022, 2021 and 2020, the Company declared cash dividends per common share/unit of $1.78 , $1.45 and $1.33 , respectively. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit as the exercise price was higher than the average share price of the Company for the years ended December 31, 2022 and 2020 were 0.3 million and 0.8 million, respectively. There were no anti-dilutive options for the year ended December 31, 2021. |
Schedule of common shares sold pursuant to equity distribution agreements | For the year ended December 31, 2022 2021 2020 (dollars and shares in thousands, except per share amounts) Number of shares sold 102 4,982 3,627 Average sales price per share $ 50.64 $ 40.57 $ 33.69 Net proceeds after deducting offering costs $ 4,936 $ 199,977 $ 120,727 |
Summary of OP and Common units | As of December 31, 2022 2021 2020 Outstanding OP units 1,426,549 1,901,595 7,420,828 Outstanding common units 224,603,462 223,917,993 197,405,989 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 12 Months Ended |
Dec. 31, 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, L.P. and Subsidiaries | |
Percentage of the entity's partnership interest in Operating Partnership | 99.40% |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Operating Partnership, Purchase Allocation, Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Partnership Ownership | |||
Increase (decrease) to OP units owned by third parties and a corresponding decrease to capital | $ (27,203) | $ 164,109 | $ 4,230 |
Purchase Price Allocation | |||
Amount of purchase price allocated to above- or below-market lease intangibles | 0 | ||
Depreciation and Amortization | |||
Write-off of fully depreciated real estate assets | 32,300 | 52,700 | |
Write-off of fully amortized in-place lease intangible assets | 121,600 | 59,900 | |
Impairment losses | $ 0 | 0 | 0 |
Minimum | |||
Depreciation and Amortization | |||
Useful lives of self-storage facilities and improvements | 5 years | ||
Maximum | |||
Depreciation and Amortization | |||
Useful lives of self-storage facilities and improvements | 39 years | ||
CubeSmart, L.P. and Subsidiaries | |||
Operating Partnership Ownership | |||
Increase (decrease) to OP units owned by third parties and a corresponding decrease to capital | $ (27,203) | $ 164,109 | $ 4,230 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash, Loan Costs and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long-Lived Assets held for sale, timing of expected sale | 1 year | |
Loan procurement costs | ||
Loan procurement costs | $ 53,900 | $ 50,100 |
Loan procurement costs, accumulated amortization | 19,800 | 14,300 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $2,263 and $12,760 | 1,181 | 108,794 |
Accounts receivable, net | 7,932 | 8,145 |
Prepaid property taxes | 8,033 | 6,938 |
Prepaid property and casualty insurance | 2,129 | 3,352 |
Amounts due from affiliates (see note 14) | 15,947 | 15,417 |
Assets related to deferred compensation arrangements | 55,572 | 60,297 |
Right-of-use assets - operating leases | $ 49,491 | $ 54,741 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total | Total |
Equity investment recorded at cost | $ 6,138 | |
Other | 7,559 | $ 8,021 |
Total | 153,982 | 265,705 |
Accumulated amortization | $ 2,263 | $ 12,760 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising, Equity Offering Costs and Capitalized Interest (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Advertising and Marketing Costs | |||
Advertising and marketing expenses | $ 22.4 | $ 21 | $ 16.9 |
Equity Offering Costs | |||
Equity offering costs | 0.2 | 28.3 | 1.5 |
Capitalized Interest | |||
Interest costs, capitalized | $ 1.3 | $ 1.9 | $ 2.7 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Income Taxes, Earnings per Share and Unit and Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Net tax basis in the entity's assets | $ 6,145.8 | $ 6,113.5 | |
Percentage of distributions characterized as ordinary income dividends | 88.7377% | ||
Percentage of distributions characterized as capital gain dividends | 11.2623% | ||
Federal excise tax rate (as a percent) | 4% | ||
Percentage of ordinary income considered for the calculation of annual amount which is subject to federal excise tax | 85% | ||
Percentage of net capital gain considered for the calculation of annual amount which is subject to Federal excise tax | 95% | ||
Percentage of prior year taxable income considered for the calculation of annual amount which is subject to federal excise tax | 100% | ||
Sales and Excise Tax Payable | $ 0 | 0 | $ 0 |
Net deferred tax liability | $ 1 | $ 0.7 | |
Earnings per Share and Unit | |||
Potential dilutive securities included in the calculation of diluted earnings per share (in shares) | 953,000 | 1,177,000 | 796,000 |
Foreign currency | |||
Derivatives outstanding | $ 0 | $ 0 | |
Impairment | 0 | 0 | |
Equity method investment, difference between carrying amount and underlying equity | $ 32.7 | $ 33.6 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration of Credit Risk (Details) - Revenues - Location of facilities | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
New York | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 16% | 19% | 16% |
Florida | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 15% | 15% | 15% |
California | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 11% | 8% | 8% |
Texas | |||
Concentration of Credit Risk | |||
Percentage of total revenues (as a percent) | 9% | 9% | 9% |
STORAGE PROPERTIES - Summary (D
STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
STORAGE FACILITIES | |||
Storage properties | $ 7,295,778 | $ 7,183,494 | |
Less: Accumulated depreciation | (1,247,775) | (1,085,824) | |
Storage properties, net (including VIE assets of $167,180 and $149,467, respectively) | 6,048,003 | 6,097,670 | $ 4,505,814 |
Land | |||
STORAGE FACILITIES | |||
Storage properties | 1,588,138 | 1,565,463 | |
Buildings and improvements | |||
STORAGE FACILITIES | |||
Storage properties | 5,483,506 | 5,368,383 | |
Equipment | |||
STORAGE FACILITIES | |||
Storage properties | 144,605 | 129,531 | |
Construction in progress | |||
STORAGE FACILITIES | |||
Storage properties | 37,584 | 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 | 12 Months Ended | |||
Dec. 09, 2021 facility item $ / shares shares | Dec. 31, 2022 USD ($) facility | Dec. 31, 2021 USD ($) facility | Dec. 31, 2020 USD ($) facility | |
2021 Acquisitions | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 66 | |||
Purchase Price | $ | $ 1,801,251 | |||
2021 Acquisitions | Minnesota Asset April 2021 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 12,000 | |||
Ownership interest held by the entity (as a percent) | 50% | |||
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 | LAACO | ||||
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 | |||
Sale Price | $ | $ 21,700 | |||
2021 Dispositions | Texas Asset November 2021 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, dispositions (in properties) | 1 | |||
Sale Price | $ | $ 5,200 | |||
2020 Acquisitions | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 21 | |||
Purchase Price | $ | $ 735,875 | |||
2020 Acquisitions | Texas Asset February 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 9,025 | |||
2020 Acquisitions | Maryland Asset April 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 17,200 | |||
2020 Acquisitions | New Jersey Asset April 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 48,450 | |||
2020 Acquisitions | Florida Asset November 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 3,900 | |||
2020 Acquisitions | Texas Asset, Austin, November 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 10,750 | |||
2020 Acquisitions | Texas Asset, Dallas, November 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 10,150 | |||
2020 Acquisitions | Nevada Asset December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 16,800 | |||
2020 Acquisitions | New York Asset December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 6,750 | |||
2020 Acquisitions | Storage Deluxe Assets December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 8 | |||
Purchase Price | $ | $ 540,000 | |||
2020 Acquisitions | Florida Asset, Orlando, December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 3 | |||
Purchase Price | $ | $ 45,500 | |||
2020 Acquisitions | Florida Assets, Tampa, December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 10,000 | |||
2020 Acquisitions | Virginia Asset December 2020 | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 1 | |||
Purchase Price | $ | $ 17,350 | |||
2020 Dispositions | ||||
STORAGE FACILITIES | ||||
Number of Facilities, dispositions (in properties) | 1 | |||
Sale Price | $ | $ 12,750 | |||
2020 Dispositions | New York Asset Four Member | ||||
STORAGE FACILITIES | ||||
Number of Facilities, dispositions (in properties) | 1 | |||
Sale Price | $ | $ 12,750 | |||
LAACO | 2021 Acquisitions | ||||
STORAGE FACILITIES | ||||
Number of Facilities, acquisitions (in properties) | 57 | |||
Outstanding partnership unit purchased (in shares) | shares | 167,557 | |||
Partnership units (dollars per share) | $ / shares | $ 9,838 | |||
Number of joint ventures | item | 2 | |||
LAACO | 2021 Acquisitions | Acquisitions | ||||
STORAGE FACILITIES | ||||
Ownership interest held by the entity (as a percent) | 50% |
INVESTMENT ACTIVITY (Details)
INVESTMENT ACTIVITY (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||||||||
Apr. 28, 2022 USD ($) | Feb. 02, 2022 USD ($) | Dec. 14, 2021 USD ($) | Dec. 09, 2021 facility item | Jun. 29, 2021 USD ($) | Dec. 22, 2020 USD ($) | Sep. 29, 2020 USD ($) shares | Jul. 31, 2020 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) facility shares | Dec. 31, 2021 USD ($) facility shares | Dec. 31, 2020 USD ($) facility item shares | Dec. 31, 2021 USD ($) item | Dec. 31, 2022 USD ($) facility | |
Self-storage facilities | ||||||||||||||
Gains from sales of real estate, net | $ 32,698,000 | $ 6,710,000 | ||||||||||||
Number of facilities, construction completed and opened | $ 7 | |||||||||||||
Total Construction Costs | 202,600,000 | |||||||||||||
Acquisition of noncontrolling interest | $ 3,397,000 | |||||||||||||
OP units redeemed | shares | 475,046 | 5,519,233 | 100,000 | |||||||||||
Right-of-use assets - operating leases | $ 54,741,000 | $ 49,491,000 | $ 54,741,000 | $ 54,741,000 | $ 49,491,000 | |||||||||
LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Gains from sales of real estate, net | 0 | |||||||||||||
New York | ||||||||||||||
Self-storage facilities | ||||||||||||||
Cash paid for acquisition | $ 1,000,000 | |||||||||||||
Units issued (in shares) | shares | 276,497 | |||||||||||||
Units issued | $ 9,000,000 | |||||||||||||
LAACO. | ||||||||||||||
Self-storage facilities | ||||||||||||||
Gains from sales of real estate, net | $ 0 | |||||||||||||
Self storage under construction | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities | facility | 2 | 2 | ||||||||||||
Development costs | $ 27,600,000 | $ 27,600,000 | ||||||||||||
Expected construction cost | $ 64,000,000 | $ 64,000,000 | ||||||||||||
Self storage under construction | New York | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities | facility | 1 | 1 | ||||||||||||
Self storage under construction | New Jersey | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities | facility | 1 | 1 | ||||||||||||
Self Storage Facility in Valley Stream, NY | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 51% | |||||||||||||
Total Construction Costs | $ 39,000,000 | |||||||||||||
Self Storage Facility in Vienna, VA | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 80% | |||||||||||||
Total Construction Costs | $ 21,800,000 | |||||||||||||
Self Storage Facility in Newton, MA | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 100% | |||||||||||||
Total Construction Costs | $ 20,800,000 | |||||||||||||
Self-storage facility in East Meadow, NY | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 100% | |||||||||||||
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 | |||||||||||||
Ownership interest held by the entity (as a percent) | 70% | |||||||||||||
Total Construction Costs | $ 22,800,000 | |||||||||||||
Self-storage Facility in Arlington, VA | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 90% | |||||||||||||
Total Construction Costs | $ 26,400,000 | |||||||||||||
Self Storage Facility in Brooklyn, NY I | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of facilities, construction completed and opened | $ 1 | |||||||||||||
Ownership interest held by the entity (as a percent) | 100% | |||||||||||||
Total Construction Costs | $ 45,900,000 | |||||||||||||
2021 Acquisitions | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 66 | |||||||||||||
Aggregate purchase price | $ 1,801,251,000 | |||||||||||||
2021 Acquisitions | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 57 | |||||||||||||
Intangible value of the in-place leases | $ 109,700,000 | 109,700,000 | ||||||||||||
Estimated life | 12 months | |||||||||||||
Amortization expense | $ 100,600,000 | $ 9,100,000 | ||||||||||||
Number of facilities under contract | facility | 1 | |||||||||||||
Number of joint ventures | item | 2 | |||||||||||||
2021 Acquisitions | Acquisitions | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Ownership interest held by the entity (as a percent) | 50% | |||||||||||||
2021 Acquisitions | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Percentage of interest acquired | 50% | |||||||||||||
2021 Acquisitions | Texas | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 7 | |||||||||||||
2021 Acquisitions | Nevada | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 13 | |||||||||||||
2021 Acquisitions | California | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 20 | |||||||||||||
2021 Acquisitions | Arizona | LAACO | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 17 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 8 | |||||||||||||
Aggregate purchase price | $ 140,800,000 | |||||||||||||
Intangible value of the in-place leases | 11,900,000 | $ 11,900,000 | 11,900,000 | |||||||||||
Estimated life | 12 months | |||||||||||||
Amortization expense | $ 8,300,000 | $ 3,600,000 | ||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Florida | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Maryland | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Nevada | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Pennsylvania | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 2 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | New Jersey | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Illinois | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facilities located in US | Georgia | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2021 Acquisitions | Self-storage facility in Anoka, MN | ||||||||||||||
Self-storage facilities | ||||||||||||||
Aggregate purchase price | $ 12,000,000 | |||||||||||||
Ownership interest held by the entity (as a percent) | 50% | |||||||||||||
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 | ||||||||||||
Estimated life | 12 months | |||||||||||||
2022 Acquisitions | Leases, Acquired-in-Place | ||||||||||||||
Self-storage facilities | ||||||||||||||
Amortization expense | $ 2,300,000 | |||||||||||||
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 | |||||||||||||
Lease liability derecognized | 5,000,000 | |||||||||||||
Right of use Assets derecognized | $ 4,100,000 | |||||||||||||
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 | |||||||||||||
2020 Acquisitions | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 21 | |||||||||||||
Aggregate purchase price | $ 735,875,000 | |||||||||||||
2020 Acquisitions | Texas | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 3 | |||||||||||||
2020 Acquisitions | Florida | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 5 | |||||||||||||
2020 Acquisitions | New York | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2020 Acquisitions | Maryland | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2020 Acquisitions | Nevada | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2020 Acquisitions | Virginia | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2020 Acquisitions | New Jersey | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 1 | |||||||||||||
2020 Acquisitions | Self-storage facilities located in US | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 13 | |||||||||||||
Aggregate purchase price | $ 195,900,000 | |||||||||||||
2020 Acquisitions | Self-storage facilities located in US | Leases, Acquired-in-Place | ||||||||||||||
Self-storage facilities | ||||||||||||||
Intangible value of the in-place leases | 11,400,000 | |||||||||||||
Estimated life | 12 months | |||||||||||||
Amortization expense | 0 | $ 9,300,000 | $ 2,100,000 | |||||||||||
2020 Acquisitions | Self-storage Facility in Bronx, NY I | ||||||||||||||
Self-storage facilities | ||||||||||||||
Real estate property acquired, land subject to ground lease | $ 9,500,000 | |||||||||||||
Decrease in right-of-use asset | 5,100,000 | |||||||||||||
Decrease in Operating Lease Liability | $ 5,000,000 | |||||||||||||
2020 Acquisitions | Self-storage facilities located in New York | ||||||||||||||
Self-storage facilities | ||||||||||||||
Number of self-storage facilities acquired | facility | 8 | |||||||||||||
Number of real estate property acquisition tranches | item | 2 | |||||||||||||
Aggregate purchase price | $ 540,000,000 | |||||||||||||
Cash paid for acquisition | 210,500,000 | |||||||||||||
Issuance of OP Shares | 175,100,000 | |||||||||||||
Repayments of debt | 33,200,000 | |||||||||||||
Units issued | $ 5,272,023 | |||||||||||||
Number of properties, assumed mortgage | item | 6 | |||||||||||||
Assumed mortgage debt, at fair value | $ 169,200,000 | $ 169,200,000 | $ 169,200,000 | |||||||||||
Outstanding principal balance of mortgage debt assumed on acquisitions | $ 154,400,000 | $ 154,400,000 | ||||||||||||
Premium on debt assumed on acquisitions | $ 14,800,000 | |||||||||||||
2020 Acquisitions | Self-storage facilities located in New York | Leases, Acquired-in-Place | ||||||||||||||
Self-storage facilities | ||||||||||||||
Intangible value of the in-place leases | $ 48,600,000 | |||||||||||||
Estimated life | 12 months | |||||||||||||
Amortization expense | $ 48,600,000 | |||||||||||||
Number of assumed ground leases | item | 3 | |||||||||||||
Number of facilities acquired with existing ground leases, for which the leases were classified as finance leases | item | 2 | |||||||||||||
Number of facilities acquired with existing ground leases, for which the leases were classified as operating leases | item | 1 | |||||||||||||
2020 Dispositions | ||||||||||||||
Self-storage facilities | ||||||||||||||
Aggregate sale price | $ 12,750,000 | |||||||||||||
2020 Dispositions | Self-storage facilities located in New York | ||||||||||||||
Self-storage facilities | ||||||||||||||
Aggregate sale price | $ 12,800,000 | |||||||||||||
Gains from sales of real estate, net | $ 6,700,000 | |||||||||||||
Joint Venture | Acquisitions | ||||||||||||||
Self-storage facilities | ||||||||||||||
Real estate property acquired, land subject to ground lease | $ 6,100,000 | |||||||||||||
Percentage of interest acquired | 20% | |||||||||||||
Joint Venture | Self Storage Facility in Newton, MA | ||||||||||||||
Self-storage facilities | ||||||||||||||
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 | Self Storage Facility in Newton, MA | Joint Venture | ||||||||||||||
Self-storage facilities | ||||||||||||||
Acquisition of remaining interest in real estate ventures (as a percent) | 10% | |||||||||||||
Joint Venture | Self-storage facility in East Meadow, NY | ||||||||||||||
Self-storage facilities | ||||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49% | |||||||||||||
Option to put ownership interest in the venture | $ 6,600,000 | |||||||||||||
Joint Venture | Self-storage Facility in Brooklyn, NY | ||||||||||||||
Self-storage facilities | ||||||||||||||
Issuance of OP Shares | $ 9,000,000 | |||||||||||||
Ownership interest held by the entity (as a percent) | 51% | |||||||||||||
Number of joint ventures | item | 2 | |||||||||||||
Put option ownership percentage in joint venture exercised (as a percent) | 49% | |||||||||||||
Option to put ownership interest in the venture | $ 10,000,000 | |||||||||||||
Cash portion of put option paid | $ 1,000,000 | |||||||||||||
Units issued (in shares) | shares | 276,497 |
INVESTMENT ACTIVITY - Component
INVESTMENT ACTIVITY - Components contemplated in the acquisition of LAACO (Details) - LAACO - 2021 Acquisitions - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 09, 2021 | Dec. 31, 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 | ||
Partnership units (dollars per share) | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 09, 2021 | Dec. 31, 2020 |
Significant Acquisitions and Disposals [Line Items] | ||||
Storage facilities, net | $ 6,048,003 | $ 6,097,670 | $ 4,505,814 | |
Cash and cash equivalents | 6,064 | 11,140 | ||
Investment in real estate ventures, at equity | 105,993 | 119,751 | ||
Assets held for sale | 3,745 | 49,313 | ||
Other assets, net | 153,982 | 265,705 | ||
Accounts payable, accrued expenses and other liabilities | (213,297) | (199,985) | ||
Deferred revenue | (38,757) | (37,144) | ||
Security deposits | (1,087) | (1,065) | ||
Liabilities held for sale | $ (1,773) | $ (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 | 12 Months Ended | |||||
Aug. 30, 2022 USD ($) facility | Sep. 29, 2020 USD ($) | Dec. 31, 2022 USD ($) property facility | Dec. 31, 2021 USD ($) property | Dec. 31, 2020 USD ($) | Dec. 09, 2021 facility | |
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 105,993 | $ 119,751 | ||||
Equity method investment, difference between carrying amount and underlying equity | 32,700 | 33,600 | ||||
Acquisitions of storage facilities | 89,004 | 151,547 | $ 417,988 | |||
Investment in real estate ventures | (21) | (28,261) | (7,022) | |||
Credit facility, outstanding | 60,900 | 209,900 | ||||
Investment in joint venture | 6,138 | |||||
ASSETS | ||||||
Storage facilities, net | 6,048,003 | 6,097,670 | 4,505,814 | |||
Total assets | 6,325,830 | 6,548,079 | ||||
Equity | ||||||
CubeSmart | 2,826,203 | 2,871,563 | ||||
Joint venture partners | 14,178 | 18,597 | ||||
Total liabilities and equity | 6,325,830 | 6,548,079 | ||||
Total revenues | 1,009,624 | 822,564 | 679,177 | |||
Gains from sales of real estate, net | 32,698 | 6,710 | ||||
Net income | 292,472 | 230,813 | 167,611 | |||
Company's share of net income (loss) | 48,877 | 25,275 | 178 | |||
HVPSE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Number of assets sold | facility | 14 | |||||
Net proceeds from sale of assets | $ 150,100 | |||||
Aggregate sale price | 235,000 | |||||
Investment in real estate ventures | 49,900 | |||||
Amount of cash retained by venture | 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 | |||||
New York | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Cash paid for acquisition of remaining interest in real estate ventures | $ 1,000 | |||||
Florida | HVPSE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Number of assets sold | facility | 2 | |||||
South Carolina | HVPSE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Number of assets sold | facility | 4 | |||||
Georgia | HVPSE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Number of assets sold | facility | 8 | |||||
Ventures | ||||||
ASSETS | ||||||
Storage facilities, net | 741,563 | 850,250 | ||||
Other assets | 11,708 | 34,760 | ||||
Total assets | 753,271 | 885,010 | ||||
LIABILITIES AND CAPITAL | ||||||
Debt | 468,783 | 526,972 | ||||
Other liabilities | 16,626 | 14,500 | ||||
Equity | ||||||
CubeSmart | 73,289 | 86,083 | ||||
Joint venture partners | 194,573 | 257,455 | ||||
Total liabilities and equity | 753,271 | 885,010 | ||||
Total revenues | 102,910 | 88,449 | 67,239 | |||
Operating expenses | (42,408) | (37,967) | (30,755) | |||
Other (expenses) income | (484) | (1,138) | (430) | |||
Interest expense, net | (15,568) | (12,031) | (11,585) | |||
Depreciation and amortization | (36,866) | (37,805) | (33,086) | |||
Gains from sales of real estate, net | 114,107 | 46,966 | ||||
Net income | 121,691 | 46,474 | $ (8,617) | |||
Ventures | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 105,993 | $ 119,751 | ||||
Number of storage facilities owned by investee | property | 77 | 90 | ||||
Fontana | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 13,789 | $ 14,225 | ||||
Ownership interest in partnership (as a percent) | 50% | 50% | ||||
Equity method investment, difference between carrying amount and underlying equity | $ 13,100 | |||||
Number of storage facilities owned by investee | 1 | 1 | 1 | |||
RCSS | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 20,994 | $ 21,536 | ||||
Ownership interest in partnership (as a percent) | 50% | 50% | ||||
Equity method investment, difference between carrying amount and underlying equity | $ 19,600 | |||||
Number of storage facilities owned by investee | property | 1 | 1 | ||||
HVP V | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 14,318 | $ 16,080 | ||||
Ownership interest in partnership (as a percent) | 20% | |||||
Number of storage facilities owned by investee | property | 6 | 5 | ||||
HVP V | New Jersey | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Number of self-storage facilities acquired | facility | 1 | |||||
Acquisitions of storage facilities | $ 33,200 | |||||
Contribution To Real Estate Venture | $ 100 | |||||
HVPSE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 4,541 | |||||
Ownership interest in partnership (as a percent) | 10% | |||||
Number of storage facilities owned by investee | property | 14 | |||||
HVP IV | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 19,853 | $ 23,223 | ||||
Ownership interest in partnership (as a percent) | 20% | |||||
Number of storage facilities owned by investee | property | 28 | 28 | ||||
HHFNE | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 1,101 | $ 1,291 | ||||
Ownership interest in partnership (as a percent) | 10% | |||||
Number of storage facilities owned by investee | property | 13 | 13 | ||||
HHF | ||||||
Investment in Unconsolidated Real Estate Venture | ||||||
Investment in real estate entities | $ 35,938 | $ 38,855 | ||||
Ownership interest in partnership (as a percent) | 50% | |||||
Number of storage facilities owned by investee | property | 28 | 28 |
UNSECURED SENIOR NOTES (Details
UNSECURED SENIOR NOTES (Details) $ in Thousands | 12 Months Ended | |||||
Apr. 04, 2017 USD ($) | Oct. 26, 2015 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 24, 2019 USD ($) | |
Mortgage loans and Notes payable | ||||||
Total unsecured senior notes, net | $ 2,772,350 | $ 2,768,209 | ||||
Loss on early extinguishment of debt | (20,328) | $ (18,020) | ||||
CubeSmart, L.P. and Subsidiaries | ||||||
Mortgage loans and Notes payable | ||||||
Less: Loan procurement costs, net | (5,182) | (2,322) | ||||
Total unsecured senior notes, net | 2,772,350 | 2,768,209 | ||||
Loss on early extinguishment of debt | (20,328) | $ (18,020) | ||||
Senior Notes | ||||||
Mortgage loans and Notes payable | ||||||
Less: Discount on issuance of notes, net | (11,801) | (13,455) | ||||
Less: Loan procurement costs, net | (15,849) | (18,336) | ||||
Total unsecured senior notes, net | $ (2,772,350) | (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 4.375% due December 15, 2023 | ||||||
Mortgage loans and Notes payable | ||||||
Senior notes, principal amount | $ 300,000 | 300,000 | $ 300,000 | |||
Interest rate (as a percent) | 4% | 4.375% | ||||
Effective interest rate (as a percent) | 3.99% | |||||
Senior notes 4.000% due 2025 | ||||||
Mortgage loans and Notes payable | ||||||
Senior notes, principal amount | $ 300,000 | 300,000 | ||||
Interest rate (as a percent) | 4% | 4% | 3.125% | |||
Effective interest rate (as a percent) | 3.811% | 4.032% | 3.18% | |||
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 | $ 550,000 | 550,000 | ||||
Interest rate (as a percent) | 2.25% | |||||
Effective interest rate (as a percent) | 2.33% | |||||
Senior Notes 2.250 % Due 2028 | ||||||
Mortgage loans and Notes payable | ||||||
Senior notes, principal amount | $ 350,000 | 350,000 | ||||
Interest rate (as a percent) | 4.375% | |||||
Effective interest rate (as a percent) | 4.46% | |||||
Senior Notes 4.375 % Due 2029 | ||||||
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 3.000 % Due 2030 | ||||||
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 2.000 % Due 2031 | ||||||
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% | |||||
Senior Notes 2.500 % Due 2032 | ||||||
Mortgage loans and Notes payable | ||||||
Senior notes, principal amount | $ 2,800,000 | $ 2,800,000 |
REVOLVING CREDIT FACILITY AND_2
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Oct. 26, 2022 | Dec. 31, 2021 | |
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Loan procurement costs capitalized | $ 53.9 | $ 50.1 | |
Revolver | |||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | |||
Remaining borrowing capacity | 788.5 | ||
Outstanding letter of credit | $ 0.6 | ||
Interest rate (as a percent) | 5.33% | ||
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 | $ 850 | ||
Interest rate, basis spread (as a percent) | 0.775% | ||
Facility fee (as a percent) | 0.15% | ||
Facility fee, adjustment (as a percent) | 0.10% |
MORTGAGE LOANS AND NOTES PAYA_3
MORTGAGE LOANS AND NOTES PAYABLE - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Mortgage loans and Notes payable | |||
Total mortgage loans and notes payable | $ 162,918 | $ 167,676 | |
Net book value of self-storage facilities | 6,048,003 | 6,097,670 | $ 4,505,814 |
Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Principal amount of debt | 153,959 | 156,385 | |
Carrying value | 153,959 | ||
Plus: Unamortized fair value adjustment | 10,228 | 12,981 | |
Less: Loan procurement costs, net | (1,269) | (1,690) | |
Total mortgage loans and notes payable | 162,918 | 167,676 | |
Net book value of self-storage facilities used to secure debt | 442,900 | 450,700 | |
Nashville V, TN | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 2,148 | 2,206 | |
Effective interest rate (as a percent) | 3.85% | ||
New York, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 28,669 | 29,340 | |
Effective interest rate (as a percent) | 3.51% | ||
Annapolis I, MD | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 4,906 | 5,099 | |
Effective interest rate (as a percent) | 3.78% | ||
Brooklyn XV, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 15,093 | 15,423 | |
Effective interest rate (as a percent) | 2.15% | ||
Long Island City IV, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 12,270 | 12,580 | |
Effective interest rate (as a percent) | 2.15% | ||
Long Island City II, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 18,283 | 18,714 | |
Effective interest rate (as a percent) | 2.25% | ||
Long Island City III, NY | Mortgage Loans | |||
Mortgage loans and Notes payable | |||
Carrying value | $ 18,290 | 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 | |
Effective interest rate (as a percent) | 2.15% |
MORTGAGE LOANS AND NOTES PAYA_4
MORTGAGE LOANS AND NOTES PAYABLE - Future Payments (Details) - USD ($) $ in Thousands | Dec. 31, 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 | $ 162,918 | $ 167,676 |
Mortgage Loans | ||
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
2023 | 32,591 | |
2024 | 32,329 | |
2025 | 979 | |
2026 | 33,760 | |
2028 and thereafter | 54,300 | |
Total mortgage payments | 153,959 | |
Plus: Unamortized fair value adjustment | 10,228 | 12,981 |
Less: Loan procurement costs, net | (1,269) | (1,690) |
Total mortgage loans and notes payable, net | $ 162,918 | $ 167,676 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in accumulated other comprehensive income by component | |||
Balance | $ 2,890,160 | $ 1,840,848 | $ 1,807,336 |
Reclassification of realized losses on interest rate swaps | 81 | 81 | 81 |
Balance | 2,840,381 | 2,890,160 | 1,840,848 |
AOCI Including Portion Attributable to Noncontrolling Interest | |||
Changes in accumulated other comprehensive income by component | |||
Balance | (575) | (656) | |
Reclassification of realized losses on interest rate swaps | 81 | 81 | |
Balance | (494) | (575) | (656) |
Accumulated Other Comprehensive Income (Loss) | |||
Changes in accumulated other comprehensive income by component | |||
Balance | (570) | (632) | (729) |
Balance | (491) | (570) | $ (632) |
AOCI Attributable to Noncontrolling Interest | |||
Changes in accumulated other comprehensive income by component | |||
Balance | 5 | ||
Balance | $ 3 | $ 5 |
RISK MANAGEMENT AND USE OF FI_2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 24, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 24, 2018 | |
Derivative financial instruments | ||||
Amount estimated to be reclassified as an increase to interest expense | $ 100 | |||
Loss Reclassified from Accumulated OCI into Income | $ 100 | |||
Derivative Instrument, Loss Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest Expense, Debt | |||
Senior notes 4.375% due December 15, 2023 | ||||
Derivative financial instruments | ||||
Senior notes, principal amount | $ 300,000 | $ 300,000 | $ 300,000 | |
Interest rate (as a percent) | 4.375% | 4% | ||
Senior Notes 4.375 % Due 2029 | ||||
Derivative financial instruments | ||||
Senior notes, principal amount | $ 350,000 | $ 350,000 | ||
Interest rate (as a percent) | 3% | |||
Designated as an accounting hedge | Cash flow | Interest rate swap | ||||
Derivative financial instruments | ||||
Notional Amount | $ 150,000 | |||
Settlement of hedge transactions | $ 800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Level 2 - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value of financial assets and liabilities carried at fair value | ||
Aggregate carrying value of total debt | $ 2,996,168 | $ 3,145,785 |
Estimated fair value of total debt | $ 2,568,103 | $ 3,256,128 |
NONCONTROLLING INTERESTS - Inte
NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) facility | Dec. 31, 2021 USD ($) | |
Variable Interest Entity [Line Items] | ||
Total assets | $ 6,325,830 | $ 6,548,079 |
Total liabilities | 3,428,030 | $ 3,549,699 |
VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 167,478 | |
Total liabilities | 83,111 | |
Carrying amount of mortgage loans | 64,445 | |
1074 Raritan Road, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 3,500 | |
Total liabilities | 5 | |
Astoria Investors, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 24,763 | |
Total liabilities | 10,161 | |
Carrying amount of mortgage loans | 9,238 | |
CS Vienna LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 32,400 | |
Total liabilities | 35,085 | |
Carrying amount of mortgage loans | 34,875 | |
CS 750 W Merrick Rd LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 37,140 | |
Total liabilities | 17,142 | |
CS Valley Forge Village Storage LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 20,576 | |
Total liabilities | 14,863 | |
Carrying amount of mortgage loans | 14,792 | |
SH3, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 38,165 | |
Total liabilities | 274 | |
C S Lock Up Anoka LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Total assets | 10,934 | |
Total liabilities | 5,581 | |
Carrying amount of mortgage loans | $ 5,540 | |
VIE | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 7 | |
VIE | 1074 Raritan Road, 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% | |
VIE | Astoria Investors, LLC | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 1 | |
Ownership interest held by the entity (as a percent) | 70% | |
VIE | CS Vienna LLC | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 1 | |
Ownership interest held by the entity (as a percent) | 80% | |
VIE | CS 750 W Merrick Rd LLC | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 1 | |
Ownership interest held by the entity (as a percent) | 51% | |
VIE | CS Valley Forge Village Storage LLC | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 1 | |
Ownership interest held by the entity (as a percent) | 70% | |
VIE | 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% | |
VIE | C S Lock Up Anoka LLC | ||
Variable Interest Entity [Line Items] | ||
Number of self-storage facilities owned and operated | facility | 1 | |
Ownership interest held by the entity (as a percent) | 50% |
NONCONTROLLING INTERESTS - Oper
NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Sep. 29, 2020 USD ($) shares | Dec. 31, 2020 USD ($) item shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | |
Operating Partnership Ownership | |||||
OP Units outstanding which are not owned by the general partner (as a percent) | 0.60% | 0.80% | |||
OP units redeemed | shares | 475,046 | 5,519,233 | 100,000 | ||
OP units outstanding (in shares) | shares | 7,420,828 | 1,426,549 | 1,901,595 | 7,420,828 | |
Adjustment for noncontrolling interests in the Operating Partnership | $ 27,203 | $ (164,109) | $ (4,230) | ||
Acquisition of noncontrolling interest | $ 3,397 | ||||
New York | |||||
Operating Partnership Ownership | |||||
Acquisition of noncontrolling interest | $ 10,000 | ||||
Cash paid for acquisition | $ 1,000 | ||||
Units issued (in shares) | shares | 276,497 | ||||
Units issued | $ 9,000 | ||||
Storage Deluxe assets | |||||
Operating Partnership Ownership | |||||
Purchase Price | $ 540,000 | ||||
Number of real estate property acquisition tranches | item | 2 | ||||
Units issued (in shares) | shares | 5,272,023 | ||||
Units issued | $ 175,100 | ||||
CubeSmart, L.P. and Subsidiaries | |||||
Operating Partnership Ownership | |||||
OP units outstanding (in shares) | shares | 1,426,549 | 1,901,595 | |||
OP Units, redemption value | $ 57,400 | ||||
Adjustment for noncontrolling interests in the Operating Partnership | $ 27,203 | $ (164,109) | $ (4,230) | ||
Acquisition of noncontrolling interest | $ 3,397 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
LEASES | |||
Lessor, Administrative and late fees income | $ 27,800 | $ 21,300 | $ 20,000 |
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true | ||
Operating leases - Right-of-use assets | $ 49,491 | $ 54,741 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | |
Operating lease liabilities | $ 48,664 | $ 54,018 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities | |
Weighted-average remaining lease term - operating leases | 33 years 3 months 18 days | 34 years | |
Weighted-average discount rate - operating leases | 4.44% | 4.46% | |
Operating lease amount paid | $ 2,453 | $ 2,513 | $ 2,186 |
Maximum | |||
LEASES | |||
Operating lease term (in years) | 42 years | ||
Operating lease renewal term (in years) | 69 years |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease information | |||
Amortization of finance lease right of-of-use assets | $ 964 | $ 964 | $ 49 |
Interest expense related to finance lease liabilities | 2,140 | 2,139 | 64 |
Operating lease cost | 2,980 | 3,278 | 2,856 |
Short-term lease cost | 868 | 1,173 | 1,114 |
Total lease cost | 6,952 | 7,554 | 4,083 |
Operating cash outflows for finance leases | 2,183 | 1,938 | |
Operating cash outflows for operating leases | 2,453 | 2,513 | 2,186 |
Total cash outflows for lease liability measurement | $ 4,636 | $ 4,451 | $ 2,186 |
Automobiles | |||
Lease information | |||
Lease term | 12 months |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Lease information | ||
Finance leases - Right-of-use assets | $ 41,945 | $ 40,932 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Real Estate Investment Property, at Cost | Real Estate Investment Property, at Cost |
Finance lease liabilities | $ 65,758 | $ 65,801 |
Operating leases - Right-of-use assets | $ 49,491 | $ 54,741 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Operating lease liabilities | $ 48,664 | $ 54,018 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities |
Weighted-average remaining lease term - finance leases | 41 years 6 months | 42 years 6 months |
Weighted-average remaining lease term - operating leases | 33 years 3 months 18 days | 34 years |
Weighted-average discount rate - finance leases | 3.25% | 3.25% |
Weighted-average discount rate - operating leases | 4.44% | 4.46% |
LEASES - Future Operating Lease
LEASES - Future Operating Lease Liability Maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Future operating lease liability maturities | |||
2023 | $ 2,484 | ||
2024 | 2,334 | ||
2025 | 2,322 | ||
2026 | 2,386 | ||
2027 | 2,416 | ||
2028 and thereafter | 86,094 | ||
Total operating lease payments | 98,036 | ||
Less: Imputed interest | (49,372) | ||
Operating lease liabilities | 48,664 | $ 54,018 | |
Operating lease amount paid | 2,453 | 2,513 | $ 2,186 |
Future finance lease liability maturities | |||
2023 | 2,183 | ||
2024 | 2,183 | ||
2025 | 2,224 | ||
2026 | 2,334 | ||
2027 | 2,371 | ||
2028 and thereafter | 118,227 | ||
Total lease payments | 129,522 | ||
Less: Imputed interest | (63,764) | ||
Finance lease liabilities | $ 65,758 | $ 65,801 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease agreements with related parties | |||
RELATED PARTY TRANSACTIONS | |||
Ground lease income | $ 0.2 | ||
Joint ventures related to affiliated real estate investments | |||
RELATED PARTY TRANSACTIONS | |||
Management fees | 5.1 | $ 4.9 | $ 3.8 |
Amounts due to the Company from related parties | 15.9 | 15.4 | |
Mortgage loans receivable from consolidated joint ventures | 64.4 | 32.4 | |
Acquisition fees | $ 0.6 | $ 1.3 | $ 0.7 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Insurance Recovery (Details) $ in Millions | Dec. 31, 2022 USD ($) facility |
COMMITMENTS AND CONTINGENCIES | |
Number of self-storage units under development | facility | 2 |
Future milestone payments | $ | $ 34.6 |
SHARE-BASED COMPENSATION PLAN_2
SHARE-BASED COMPENSATION PLANS (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Options | ||||
Assumptions used for estimating the fair value of share options | ||||
Risk-free interest rate (as a percent) | 1.50% | 0.60% | 1.90% | |
Expected dividend yield (as a percent) | 3.70% | 3.80% | 3.90% | |
Volatility (as a percent) | 25% | 25% | 20% | |
Weighted average expected life of the options | 6 years | 6 years | 6 years | |
Weighted average grant date fair value of options granted per share (in dollars per share) | $ 8.83 | $ 4.62 | $ 3.66 | |
Term | 10 years | 10 years | 10 years | |
Share options, additional general disclosures | ||||
Compensation expense recognized (in dollars) | $ 2,500,000 | $ 2,300,000 | $ 2,000,000 | |
Vesting period | 3 years | |||
Unrecognized compensation cost | $ 2,800,000 | |||
Unrecognized compensation cost recorded, period | 1 year 8 months 12 days | |||
Number of Shares Under Option | ||||
Balance at the beginning of the period (in shares) | 2,263,804 | |||
Options granted (in shares) | 324,840 | |||
Options exercised (in shares) | (51,606) | |||
Balance at the end of the period (in shares) | 2,537,038 | 2,263,804 | ||
Vested or expected to vest at the end of the period (in shares) | 2,537,038 | |||
Exercisable at the end of the period (in shares) | 1,636,544 | |||
Weighted Average Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ 29.63 | |||
Options granted (in dollars per share) | 56.91 | |||
Options exercised (in dollars per share) | 30.80 | |||
Balance at the end of the period (in dollars per share) | 33.10 | $ 29.63 | ||
Vested or expected to vest at the end of the period (in dollars per share) | 33.10 | |||
Exercisable at the end of the period (in dollars per share) | $ 28.42 | |||
Weighted Average Remaining Contractual Term | ||||
Balance at the end of the period | 6 years 2 months 15 days | 6 years 9 months 25 days | ||
Options granted | 9 years 3 days | |||
Options exercised | 7 years 3 months 14 days | |||
Vested or expected to vest at the end of the period | 6 years 2 months 15 days | |||
Exercisable at the end of the period | 5 years 1 month 20 days | |||
Aggregate intrinsic value | ||||
Options, exercisable (in dollars) | $ 19,400,000 | |||
Options, vested or expected to vest and exercisable (in dollars) | 23,600,000 | |||
Options exercised (in dollars) | $ 1,000,000 | $ 10,600,000 | $ 900,000 | |
Restricted Shares | Minimum | ||||
Share options, additional general disclosures | ||||
Vesting period | 3 years | |||
Restricted Shares | Maximum | ||||
Share options, additional general disclosures | ||||
Vesting period | 5 years | |||
Performance Shares | ||||
Assumptions used for estimating the fair value of share options | ||||
Term | 3 years | |||
Restricted Stock and Performance Shares | ||||
Assumptions used for estimating the fair value of share options | ||||
Risk-free interest rate (as a percent) | 1% | 0.20% | 1.70% | |
Volatility (as a percent) | 28% | 28% | 19% | |
Share options, additional general disclosures | ||||
Compensation expense recognized (in dollars) | $ 6,500,000 | $ 5,800,000 | $ 5,200,000 | |
Unrecognized compensation cost | $ 7,600,000 | |||
Unrecognized compensation cost recorded, period | 2 years | |||
Number of Non-Vested Restricted Shares | ||||
Non-vested at the beginning of the period (in shares) | 387,701 | |||
Granted (in shares) | 126,304 | |||
Vested (in shares) | (164,228) | |||
Forfeited (in shares) | (8,825) | |||
Non-vested at the end of the period (in shares) | 340,952 | 387,701 | ||
Restricted Shares & Performance Units | ||||
Weighted average fair value of restricted shares and performance units granted | $ 61.41 | $ 39.37 | $ 32.39 | |
Total fair value of restricted shares and performance units vested | $ 5.6 | $ 4.8 | $ 6 | |
Plan | ||||
SHARE-BASED COMPENSATION PLANS | ||||
Additional shares authorized | 4,500,000 | |||
Shares reserved for future issuance | 991,117 | |||
Shares available for future awards | 1,941,786 | |||
Percentage of shares that may not be subject to specific limitations | 5% | |||
Maximum term of options | 10 years | |||
Plan | Minimum | ||||
Share options, additional general disclosures | ||||
Vesting period | 1 year | |||
Plan | Share Options | ||||
Number of Shares Under Option | ||||
Balance at the end of the period (in shares) | 2,537,038 | |||
Plan | Restricted Shares | ||||
Number of Non-Vested Restricted Shares | ||||
Non-vested at the end of the period (in shares) | 340,952 |
EARNINGS PER SHARE AND UNIT A_3
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Earnings Per Share and Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Basic and diluted earnings per common share | |||
Net income | $ 292,472 | $ 230,813 | $ 167,611 |
Noncontrolling interests in the Operating Partnership | (1,931) | (7,873) | (1,825) |
Noncontrolling interest in subsidiaries | 722 | 542 | (165) |
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | $ 291,263 | $ 223,482 | $ 165,621 |
Weighted average basic shares outstanding (in shares) | 224,928,000 | 203,832,000 | 194,147,000 |
Share options and restricted share units (in shares) | 953,000 | 1,177,000 | 796,000 |
Weighted-average diluted shares outstanding (in shares) | 225,881,000 | 205,009,000 | 194,943,000 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.10 | $ 0.85 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Basic and diluted earnings per common unit | |||
Net Income | $ 292,472 | $ 230,813 | $ 167,611 |
Noncontrolling interests in the Operating Partnership | $ (1,931) | $ (7,873) | $ (1,825) |
Weighted average basic shares outstanding (in shares) | 224,928,000 | 203,832,000 | 194,147,000 |
Share options and restricted share units (in shares) | 953,000 | 1,177,000 | 796,000 |
Weighted-average diluted shares outstanding (in shares) | 225,881,000 | 205,009,000 | 194,943,000 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 300,000 | 0 | 800,000 |
Common stock, cash dividends declared (in dollars per share) | $ 1.78 | $ 1.45 | $ 1.33 |
OP units outstanding (in shares) | 1,426,549 | 1,901,595 | 7,420,828 |
Common shares, shares outstanding | 224,603,462 | 223,917,993 | 197,405,989 |
CubeSmart, L.P. and Subsidiaries | |||
Basic and diluted earnings per common share | |||
Net income | $ 292,472 | $ 230,813 | $ 167,611 |
Noncontrolling interests in the Operating Partnership | $ (1,931) | $ (7,873) | $ (1,825) |
Weighted average basic shares outstanding (in shares) | 224,928,000 | 203,832,000 | 194,147,000 |
Share options and restricted share units (in shares) | 953,000 | 1,177,000 | 796,000 |
Weighted-average diluted shares outstanding (in shares) | 225,881,000 | 205,009,000 | 194,943,000 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Basic and diluted earnings per common unit | |||
Net Income | $ 292,472 | $ 230,813 | $ 167,611 |
Noncontrolling interests in the Operating Partnership | (1,931) | (7,873) | (1,825) |
Noncontrolling interest in subsidiaries | 722 | 542 | (165) |
Net income attributable to common unitholders | $ 291,263 | $ 223,482 | $ 165,621 |
Weighted average basic shares outstanding (in shares) | 224,928,000 | 203,832,000 | 194,147,000 |
Share options and restricted share units (in shares) | 953,000 | 1,177,000 | 796,000 |
Weighted-average diluted shares outstanding (in shares) | 225,881,000 | 205,009,000 | 194,943,000 |
Basic earnings per unit attributable to common unitholders | $ 1.29 | $ 1.10 | $ 0.85 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
OP units outstanding (in shares) | 1,426,549 | 1,901,595 |
EARNINGS PER SHARE AND UNIT A_4
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Common Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Nov. 19, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Issuance of Common and Preferred Shares | ||||
Net proceeds after deducting offering costs | $ 4,877 | $ 965,638 | $ 120,727 | |
Net proceeds from sale of common shares | $ 4,877 | $ 965,638 | $ 120,727 | |
Over-Allotment Option | ||||
Issuance of Common and Preferred Shares | ||||
Public offering price | $ 51 | |||
Net proceeds after deducting offering costs | $ 765,600 | |||
Number of common stock sold (in shares) | 15,500 | |||
Equity Distribution Agreements | Maximum | ||||
Issuance of Common and Preferred Shares | ||||
Number of shares that may be sold | 60,000 | |||
Common Shares | Equity Distribution Agreements | ||||
Issuance of Common and Preferred Shares | ||||
Number of common stock sold (in shares) | 102 | 4,982 | 3,627 | |
Average sales price per common share (in dollars per share) | $ 50.64 | $ 40.57 | $ 33.69 | |
Net proceeds from sale of common shares | $ 4,936 | $ 199,977 | $ 120,727 | |
Common shares remained available for issuance | 5,800 | 5,900 | 10,900 |
EARNINGS PER SHARE AND UNIT A_5
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Summary of OP and Common Units (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |||
Outstanding OP units | 1,426,549 | 1,901,595 | 7,420,828 |
Common shares outstanding | 224,603,462 | 223,917,993 | 197,405,989 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) ft² property | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 611 |
Area of facility (in square feet) | ft² | 44,106,746 |
Encumbrances | $ 153,959 |
Initial cost | |
Land | 1,555,906 |
Building and Improvements | 5,403,802 |
Costs Subsequent to Acquisition | 427,251 |
Gross Carrying Amount at year end | |
Land | 1,588,138 |
Building and Improvements | 5,483,506 |
Total | 7,071,644 |
Accumulated Depreciation | $ 1,178,092 |
Minimum | |
Gross Carrying Amount at year end | |
Estimated useful lives | 5 years |
Maximum | |
Gross Carrying Amount at year end | |
Estimated useful lives | 39 years |
Arizona | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 48 |
Area of facility (in square feet) | ft² | 3,089,826 |
Initial cost | |
Land | $ 98,442 |
Building and Improvements | 389,514 |
Costs Subsequent to Acquisition | 26,017 |
Gross Carrying Amount at year end | |
Land | 99,495 |
Building and Improvements | 399,753 |
Total | 499,248 |
Accumulated Depreciation | $ 49,843 |
California | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 63 |
Area of facility (in square feet) | ft² | 4,765,486 |
Initial cost | |
Land | $ 371,460 |
Building and Improvements | 683,683 |
Costs Subsequent to Acquisition | 33,592 |
Gross Carrying Amount at year end | |
Land | 373,301 |
Building and Improvements | 660,593 |
Total | 1,033,894 |
Accumulated Depreciation | $ 98,929 |
Colorado | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 10 |
Area of facility (in square feet) | ft² | 654,252 |
Initial cost | |
Land | $ 11,812 |
Building and Improvements | 46,755 |
Costs Subsequent to Acquisition | 4,386 |
Gross Carrying Amount at year end | |
Land | 11,787 |
Building and Improvements | 45,056 |
Total | 56,843 |
Accumulated Depreciation | $ 13,740 |
Connecticut | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 22 |
Area of facility (in square feet) | ft² | 1,200,002 |
Initial cost | |
Land | $ 22,023 |
Building and Improvements | 82,375 |
Costs Subsequent to Acquisition | 20,316 |
Gross Carrying Amount at year end | |
Land | 23,568 |
Building and Improvements | 86,984 |
Total | 110,552 |
Accumulated Depreciation | $ 34,873 |
Florida | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 90 |
Area of facility (in square feet) | ft² | 6,796,098 |
Initial cost | |
Land | $ 104,987 |
Building and Improvements | 531,360 |
Costs Subsequent to Acquisition | 91,455 |
Gross Carrying Amount at year end | |
Land | 112,652 |
Building and Improvements | 548,011 |
Total | 660,663 |
Accumulated Depreciation | $ 174,952 |
Georgia | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 22 |
Area of facility (in square feet) | ft² | 1,657,378 |
Initial cost | |
Land | $ 20,015 |
Building and Improvements | 117,825 |
Costs Subsequent to Acquisition | 10,212 |
Gross Carrying Amount at year end | |
Land | 19,825 |
Building and Improvements | 115,798 |
Total | 135,623 |
Accumulated Depreciation | $ 30,589 |
Illinois | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 43 |
Area of facility (in square feet) | ft² | 2,760,969 |
Initial cost | |
Land | $ 54,493 |
Building and Improvements | 221,022 |
Costs Subsequent to Acquisition | 30,106 |
Gross Carrying Amount at year end | |
Land | 54,358 |
Building and Improvements | 226,591 |
Total | 280,949 |
Accumulated Depreciation | $ 71,326 |
Indiana | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 1 |
Area of facility (in square feet) | ft² | 70,386 |
Initial cost | |
Land | $ 1,134 |
Building and Improvements | 5,589 |
Costs Subsequent to Acquisition | 250 |
Gross Carrying Amount at year end | |
Land | 1,134 |
Building and Improvements | 5,833 |
Total | 6,967 |
Accumulated Depreciation | $ 1,565 |
Maryland | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 20 |
Area of facility (in square feet) | ft² | 1,683,821 |
Encumbrances | $ 4,906 |
Initial cost | |
Land | 40,467 |
Building and Improvements | 214,985 |
Costs Subsequent to Acquisition | 13,729 |
Gross Carrying Amount at year end | |
Land | 41,324 |
Building and Improvements | 216,272 |
Total | 257,596 |
Accumulated Depreciation | $ 50,456 |
Massachusetts | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 20 |
Area of facility (in square feet) | ft² | 1,252,577 |
Initial cost | |
Land | $ 31,948 |
Building and Improvements | 159,000 |
Costs Subsequent to Acquisition | 10,742 |
Gross Carrying Amount at year end | |
Land | 32,203 |
Building and Improvements | 163,982 |
Total | 196,185 |
Accumulated Depreciation | $ 32,521 |
Minnesota | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 2 |
Area of facility (in square feet) | ft² | 176,296 |
Initial cost | |
Land | $ 2,621 |
Building and Improvements | 21,655 |
Costs Subsequent to Acquisition | 408 |
Gross Carrying Amount at year end | |
Land | 2,621 |
Building and Improvements | 22,063 |
Total | 24,684 |
Accumulated Depreciation | $ 2,740 |
Nevada | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 22 |
Area of facility (in square feet) | ft² | 1,702,416 |
Initial cost | |
Land | $ 69,956 |
Building and Improvements | 394,023 |
Costs Subsequent to Acquisition | 6,198 |
Gross Carrying Amount at year end | |
Land | 71,703 |
Building and Improvements | 398,249 |
Total | 469,952 |
Accumulated Depreciation | $ 22,383 |
New Jersey | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 28 |
Area of facility (in square feet) | ft² | 1,983,356 |
Initial cost | |
Land | $ 45,864 |
Building and Improvements | 188,139 |
Costs Subsequent to Acquisition | 37,639 |
Gross Carrying Amount at year end | |
Land | 49,372 |
Building and Improvements | 206,349 |
Total | 255,721 |
Accumulated Depreciation | $ 65,269 |
New Mexico | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 3 |
Area of facility (in square feet) | ft² | 182,261 |
Initial cost | |
Land | $ 2,866 |
Building and Improvements | 9,367 |
Costs Subsequent to Acquisition | 1,826 |
Gross Carrying Amount at year end | |
Land | 2,867 |
Building and Improvements | 7,977 |
Total | 10,844 |
Accumulated Depreciation | $ 3,433 |
New York | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 59 |
Area of facility (in square feet) | ft² | 4,742,378 |
Encumbrances | $ 146,905 |
Initial cost | |
Land | 427,921 |
Building and Improvements | 1,331,857 |
Costs Subsequent to Acquisition | 50,817 |
Gross Carrying Amount at year end | |
Land | 440,133 |
Building and Improvements | 1,354,122 |
Total | 1,794,255 |
Accumulated Depreciation | $ 290,358 |
North Carolina | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 9 |
Area of facility (in square feet) | ft² | 611,792 |
Initial cost | |
Land | $ 10,349 |
Building and Improvements | 44,680 |
Costs Subsequent to Acquisition | 6,534 |
Gross Carrying Amount at year end | |
Land | 10,788 |
Building and Improvements | 47,530 |
Total | 58,318 |
Accumulated Depreciation | $ 13,397 |
Ohio | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 20 |
Area of facility (in square feet) | ft² | 1,294,303 |
Initial cost | |
Land | $ 13,529 |
Building and Improvements | 51,265 |
Costs Subsequent to Acquisition | 18,083 |
Gross Carrying Amount at year end | |
Land | 14,938 |
Building and Improvements | 54,639 |
Total | 69,577 |
Accumulated Depreciation | $ 21,590 |
Pennsylvania | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 12 |
Area of facility (in square feet) | ft² | 890,385 |
Initial cost | |
Land | $ 18,769 |
Building and Improvements | 99,199 |
Costs Subsequent to Acquisition | 10,731 |
Gross Carrying Amount at year end | |
Land | 18,723 |
Building and Improvements | 104,496 |
Total | 123,219 |
Accumulated Depreciation | $ 21,935 |
Rhode Island | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 4 |
Area of facility (in square feet) | ft² | 247,305 |
Initial cost | |
Land | $ 3,480 |
Building and Improvements | 17,156 |
Costs Subsequent to Acquisition | 1,633 |
Gross Carrying Amount at year end | |
Land | 3,480 |
Building and Improvements | 18,732 |
Total | 22,212 |
Accumulated Depreciation | $ 4,839 |
South Carolina | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 8 |
Area of facility (in square feet) | ft² | 432,389 |
Initial cost | |
Land | $ 6,117 |
Building and Improvements | 31,039 |
Costs Subsequent to Acquisition | 1,363 |
Gross Carrying Amount at year end | |
Land | 6,117 |
Building and Improvements | 32,402 |
Total | 38,519 |
Accumulated Depreciation | $ 3,362 |
Tennessee | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 9 |
Area of facility (in square feet) | ft² | 755,655 |
Encumbrances | $ 2,148 |
Initial cost | |
Land | 9,117 |
Building and Improvements | 54,403 |
Costs Subsequent to Acquisition | 5,781 |
Gross Carrying Amount at year end | |
Land | 8,992 |
Building and Improvements | 52,924 |
Total | 61,916 |
Accumulated Depreciation | $ 14,483 |
Texas | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 76 |
Area of facility (in square feet) | ft² | 5,446,871 |
Initial cost | |
Land | $ 110,252 |
Building and Improvements | 476,749 |
Costs Subsequent to Acquisition | 34,511 |
Gross Carrying Amount at year end | |
Land | 110,569 |
Building and Improvements | 485,325 |
Total | 595,894 |
Accumulated Depreciation | $ 103,599 |
Utah | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 4 |
Area of facility (in square feet) | ft² | 239,388 |
Initial cost | |
Land | $ 10,763 |
Building and Improvements | 2,844 |
Costs Subsequent to Acquisition | 2,831 |
Gross Carrying Amount at year end | |
Land | 10,622 |
Building and Improvements | 4,208 |
Total | 14,830 |
Accumulated Depreciation | $ 1,944 |
Virginia | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 11 |
Area of facility (in square feet) | ft² | 1,060,480 |
Initial cost | |
Land | $ 37,282 |
Building and Improvements | 138,668 |
Costs Subsequent to Acquisition | 4,355 |
Gross Carrying Amount at year end | |
Land | 37,283 |
Building and Improvements | 135,792 |
Total | 173,075 |
Accumulated Depreciation | $ 29,041 |
Washington D.C. | |
REAL ESTATE AND RELATED DEPRECIATION | |
Number of stores | property | 5 |
Area of facility (in square feet) | ft² | 410,676 |
Initial cost | |
Land | $ 28,759 |
Building and Improvements | 80,996 |
Costs Subsequent to Acquisition | 2,369 |
Gross Carrying Amount at year end | |
Land | 28,803 |
Building and Improvements | 78,847 |
Total | 107,650 |
Accumulated Depreciation | 18,078 |
Other Corporate Assets | |
Initial cost | |
Land | 1,480 |
Building and Improvements | 9,654 |
Costs Subsequent to Acquisition | 1,367 |
Gross Carrying Amount at year end | |
Land | 1,480 |
Building and Improvements | 10,978 |
Total | 12,458 |
Accumulated Depreciation | $ 2,847 |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND RELATED DEPRECIATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Activity in Storage facilities | |||
Balance at beginning of year | $ 7,183,494 | $ 5,489,754 | $ 4,699,844 |
Acquisitions & improvements | 191,495 | 1,795,965 | 825,247 |
Fully depreciated assets | (32,344) | (52,722) | (83,418) |
Dispositions and other | (6,230) | (19,408) | (8,533) |
Construction in progress, net | (40,637) | (30,095) | 14,718 |
Right-of-use assets - finance leases | 41,896 | ||
Balance at end of year | 7,295,778 | 7,183,494 | 5,489,754 |
Activity in Accumulated depreciation | |||
Balance at beginning of year | 1,085,824 | 983,940 | 925,359 |
Depreciation expense | 195,522 | 160,933 | 143,952 |
Fully depreciated assets | (32,344) | (52,722) | (83,418) |
Dispositions and other | (1,227) | (6,327) | (1,953) |
Balance at end of year | 1,247,775 | 1,085,824 | 983,940 |
Storage properties, net | 6,048,003 | $ 6,097,670 | $ 4,505,814 |
Aggregate cost of real estate investments for federal income tax purposes | $ 7,643,800 |
CONSOLIDATED BALANCE SHEETS (LP
CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Storage properties | $ 7,295,778 | $ 7,183,494 |
Less: Accumulated depreciation | (1,247,775) | (1,085,824) |
Storage properties, net (including VIE assets of $167,180 and $149,467, respectively) | 6,048,003 | 6,097,670 |
Cash and cash equivalents | 6,064 | 11,140 |
Restricted cash | 2,861 | 2,178 |
Loan procurement costs, net of amortization | 5,182 | 2,322 |
Investment in real estate ventures, at equity | 105,993 | 119,751 |
Assets held for sale | 3,745 | 49,313 |
Other assets, net | 153,982 | 265,705 |
Total assets | 6,325,830 | 6,548,079 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,772,350 | 2,768,209 |
Revolving credit facility | 60,900 | 209,900 |
Mortgage loans and notes payable, net | 162,918 | 167,676 |
Lease liabilities - finance leases | 65,758 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 213,297 | 199,985 |
Distributions payable | 111,190 | 97,417 |
Deferred revenue | 38,757 | 37,144 |
Security deposits | 1,087 | 1,065 |
Liabilities held for sale | 1,773 | 2,502 |
Total liabilities | 3,428,030 | 3,549,699 |
Limited Partnership interests of third parties | 57,419 | 108,220 |
Commitments and contingencies | ||
Capital | ||
Accumulated other comprehensive loss | (491) | (570) |
Total liabilities and equity | 6,325,830 | 6,548,079 |
CubeSmart, L.P. and Subsidiaries | ||
ASSETS | ||
Storage properties | 7,295,778 | 7,183,494 |
Less: Accumulated depreciation | (1,247,775) | (1,085,824) |
Storage properties, net (including VIE assets of $167,180 and $149,467, respectively) | 6,048,003 | 6,097,670 |
Cash and cash equivalents | 6,064 | 11,140 |
Restricted cash | 2,861 | 2,178 |
Investment in real estate ventures, at equity | 105,993 | 119,751 |
Assets held for sale | 3,745 | 49,313 |
Other assets, net | 153,982 | 265,705 |
Total assets | 6,325,830 | 6,548,079 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,772,350 | 2,768,209 |
Revolving credit facility | 60,900 | 209,900 |
Mortgage loans and notes payable, net | 162,918 | 167,676 |
Lease liabilities - finance leases | 65,758 | 65,801 |
Accounts payable, accrued expenses and other liabilities | 213,297 | 199,985 |
Distributions payable | 111,190 | 97,417 |
Deferred revenue | 38,757 | 37,144 |
Security deposits | 1,087 | 1,065 |
Liabilities held for sale | 1,773 | 2,502 |
Total liabilities | 3,428,030 | 3,549,699 |
Limited Partnership interests of third parties | 57,419 | 108,220 |
Commitments and contingencies | ||
Capital | ||
Operating Partner | 2,826,694 | 2,872,133 |
Accumulated other comprehensive loss | (491) | (570) |
Total CubeSmart, L.P. capital | 2,826,203 | 2,871,563 |
Noncontrolling interests in subsidiaries | 14,178 | 18,597 |
Total capital | 2,840,381 | 2,890,160 |
Total liabilities and equity | $ 6,325,830 | $ 6,548,079 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Storage facilities, net | $ 6,048,003 | $ 6,097,670 |
VIE | ||
Storage facilities, net | 167,180 | 149,467 |
CubeSmart, L.P. and Subsidiaries | ||
Storage facilities, net | 6,048,003 | 6,097,670 |
CubeSmart, L.P. and Subsidiaries | VIE | ||
Storage facilities, net | $ 167,180 | $ 149,467 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
REVENUES | |||
Rental income | $ 879,289 | $ 707,751 | $ 581,009 |
Total revenues | 1,009,624 | 822,564 | 679,177 |
OPERATING EXPENSES | |||
Property operating expenses | 293,260 | 252,104 | 223,634 |
Depreciation and amortization | 310,610 | 232,049 | 156,573 |
General and administrative | 54,623 | 47,809 | 41,423 |
Total operating expenses | 658,493 | 531,962 | 421,630 |
Interest: | |||
Interest expense on loans | (93,284) | (78,448) | (75,890) |
Loan procurement amortization expense | (3,897) | (8,168) | (2,674) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 48,877 | 25,275 | 178 |
Gains from sales of real estate, net | 32,698 | 6,710 | |
Other | (10,355) | (10,818) | (240) |
Total other expense | (58,659) | (59,789) | (89,936) |
NET INCOME | 292,472 | 230,813 | 167,611 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Operating Partnership interests of third parties | $ (1,931) | $ (7,873) | $ (1,825) |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Weighted-average basic units outstanding (in units) | 224,928 | 203,832 | 194,147 |
Weighted-average diluted units outstanding (in units) | 225,881 | 205,009 | 194,943 |
Weighted average basic shares outstanding (in shares) | 224,928 | 203,832 | 194,147 |
Other Property Related Income | |||
REVENUES | |||
Property related income | $ 96,166 | $ 83,605 | $ 70,723 |
Property Management Fee Income | |||
REVENUES | |||
Property related income | 34,169 | 31,208 | 27,445 |
CubeSmart, L.P. and Subsidiaries | |||
REVENUES | |||
Rental income | 879,289 | 707,751 | 581,009 |
Total revenues | 1,009,624 | 822,564 | 679,177 |
OPERATING EXPENSES | |||
Property operating expenses | 293,260 | 252,104 | 223,634 |
Depreciation and amortization | 310,610 | 232,049 | 156,573 |
General and administrative | 54,623 | 47,809 | 41,423 |
Total operating expenses | 658,493 | 531,962 | 421,630 |
Interest: | |||
Interest expense on loans | (93,284) | (78,448) | (75,890) |
Loan procurement amortization expense | (3,897) | (8,168) | (2,674) |
Loss on early extinguishment of debt | (20,328) | (18,020) | |
Equity in earnings of real estate ventures | 48,877 | 25,275 | 178 |
Gains from sales of real estate, net | 32,698 | 6,710 | |
Other | (10,355) | (10,818) | (240) |
Total other expense | (58,659) | (59,789) | (89,936) |
NET INCOME | 292,472 | 230,813 | 167,611 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | |||
Noncontrolling interest in subsidiaries | 722 | 542 | (165) |
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 293,194 | 231,355 | 167,446 |
Operating Partnership interests of third parties | (1,931) | (7,873) | (1,825) |
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 291,263 | $ 223,482 | $ 165,621 |
Basic earnings per unit attributable to common unitholders | $ 1.29 | $ 1.10 | $ 0.85 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 1.29 | $ 1.09 | $ 0.85 |
Weighted-average basic units outstanding (in units) | 224,928 | 203,832 | 194,147 |
Weighted-average diluted units outstanding (in units) | 225,881 | 205,009 | 194,943 |
Weighted average basic shares outstanding (in shares) | 224,928 | 203,832 | 194,147 |
CubeSmart, L.P. and Subsidiaries | Other Property Related Income | |||
REVENUES | |||
Property related income | $ 96,166 | $ 83,605 | $ 70,723 |
CubeSmart, L.P. and Subsidiaries | Property Management Fee Income | |||
REVENUES | |||
Property related income | $ 34,169 | $ 31,208 | $ 27,445 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
NET INCOME | $ 292,472 | $ 230,813 | $ 167,611 |
Other comprehensive income: | |||
Reclassification of realized losses on interest rate swaps | 81 | 81 | 81 |
OTHER COMPREHENSIVE INCOME: | 81 | 81 | 81 |
COMPREHENSIVE INCOME | 292,553 | 230,894 | 167,692 |
Comprehensive income attributable to Operating Partnership interests of third parties | (1,933) | (7,892) | (1,809) |
Comprehensive loss (income) attributable to noncontrolling interest in subsidiaries | 722 | 542 | (165) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 291,342 | 223,544 | 165,718 |
CubeSmart, L.P. and Subsidiaries | |||
NET INCOME | $ 292,472 | $ 230,813 | $ 167,611 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | $ 108,220 | ||
Contributions from noncontrolling interests in subsidiaries | 3,690 | $ 11,404 | $ 682 |
Distributions paid to noncontrolling interest in subsidiaries | $ (7,387) | (246) | $ (205) |
Acquisition of noncontrolling interest in subsidiary | $ (3,397) | ||
Preferred OP unit redemption (in units) | 475,046 | 5,519,233 | 100,000 |
Partners' Capital Account, Units, Redeemed | 475,046 | 5,519,233 | 100,000 |
Adjustment for Operating Partnership interests of third parties | $ 27,203 | $ (164,109) | $ (4,230) |
Net income (loss) | 290,541 | 222,940 | 165,786 |
Other comprehensive income (loss), net | 79 | 62 | 97 |
Balance of Noncontrolling Interests in the Operating Partnership | 57,419 | 108,220 | |
Noncontrolling Interests in the Operating Partnership | |||
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | 62,088 |
Issuance of OP units | 186,933 | ||
Adjustment for Operating Partnership interests of third parties | (27,203) | 164,109 | 4,230 |
Net income (loss) | 1,931 | 7,873 | 1,825 |
Other comprehensive income (loss), net | 2 | 19 | (16) |
Balance of Noncontrolling Interests in the Operating Partnership | 57,419 | 108,220 | 249,414 |
CubeSmart, L.P. and Subsidiaries | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 2,890,160 | 1,840,848 | 1,807,336 |
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | ||
Contributions from noncontrolling interests in subsidiaries | 3,690 | 11,404 | 682 |
Distributions paid to noncontrolling interest in subsidiaries | (7,387) | (246) | (205) |
Issuance of common OP units | 4,877 | 965,638 | 120,727 |
Issuance of restricted OP units | 1 | ||
Acquisition of noncontrolling interest in subsidiary | (3,397) | ||
Conversion from OP units to shares | 22,948 | 305,015 | 2,824 |
Exercise of OP unit options | 1,590 | 7,865 | 961 |
Amortization of restricted OP units | 5,134 | 4,941 | 4,502 |
OP unit compensation expense | 2,543 | 2,271 | 1,952 |
Adjustment for Operating Partnership interests of third parties | 27,203 | (164,109) | (4,230) |
Net income (loss) | 290,541 | 222,940 | 165,786 |
Other comprehensive income (loss), net | 79 | 62 | 97 |
Common OP unit distributions | (400,998) | (303,072) | (259,584) |
Balance | 2,840,381 | 2,890,160 | 1,840,848 |
Balance of Noncontrolling Interests in the Operating Partnership | 57,419 | 108,220 | |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interests in the Operating Partnership | |||
Increase (Decrease) in Partners' Capital | |||
Balance of Noncontrolling Interests in the Operating Partnership | 108,220 | 249,414 | 62,088 |
Issuance of OP units | (186,933) | ||
Conversion from OP units to shares | (22,948) | (305,015) | (2,824) |
Adjustment for Operating Partnership interests of third parties | (27,203) | 164,109 | 4,230 |
Net income (loss) | 1,931 | 7,873 | 1,825 |
Other comprehensive income (loss), net | 2 | 19 | (16) |
Common OP unit distributions | (2,583) | (8,180) | (2,822) |
Balance of Noncontrolling Interests in the Operating Partnership | 57,419 | 108,220 | 249,414 |
CubeSmart, L.P. and Subsidiaries | Total Shareholders' Equity | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 2,871,563 | 1,832,216 | 1,799,346 |
Issuance of common OP units | 4,877 | 965,638 | 120,727 |
Issuance of restricted OP units | 1 | ||
Acquisition of noncontrolling interest in subsidiary | (2,746) | ||
Conversion from OP units to shares | 22,948 | 305,015 | 2,824 |
Exercise of OP unit options | 1,590 | 7,865 | 961 |
Amortization of restricted OP units | 5,134 | 4,941 | 4,502 |
OP unit compensation expense | 2,543 | 2,271 | 1,952 |
Adjustment for Operating Partnership interests of third parties | 27,203 | (164,109) | (4,230) |
Net income (loss) | 291,263 | 223,482 | 165,621 |
Other comprehensive income (loss), net | 79 | 62 | 97 |
Common OP unit distributions | (400,998) | (303,072) | (259,584) |
Balance | 2,826,203 | 2,871,563 | 1,832,216 |
CubeSmart, L.P. and Subsidiaries | Operating Partner | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ 2,872,133 | $ 1,832,848 | $ 1,800,075 |
Balance (in units) | 223,918,000 | 197,406,000 | 193,557,000 |
Issuance of common OP units | $ 4,877 | $ 965,638 | $ 120,727 |
Issuance of common OP units (in units) | 102,000 | 20,508,000 | 3,627,000 |
Issuance of restricted OP units | $ 1 | ||
Issuance of restricted OP units (in units) | 56,000 | 66,000 | 60,000 |
Acquisition of noncontrolling interest in subsidiary | $ (2,746) | ||
Conversion from OP units to shares | $ 22,948 | $ 305,015 | $ 2,824 |
Conversion from OP units to shares (in units) | 475,000 | 5,519,000 | 100,000 |
Exercise of OP unit options | $ 1,590 | $ 7,865 | $ 961 |
Exercise of OP unit options (in units) | 52,000 | 419,000 | 62,000 |
Amortization of restricted OP units | $ 5,134 | $ 4,941 | $ 4,502 |
OP unit compensation expense | 2,543 | 2,271 | 1,952 |
Adjustment for Operating Partnership interests of third parties | 27,203 | (164,109) | (4,230) |
Net income (loss) | 291,263 | 223,482 | 165,621 |
Common OP unit distributions | (400,998) | (303,072) | (259,584) |
Balance | $ 2,826,694 | $ 2,872,133 | $ 1,832,848 |
Balance (in units) | 224,603,000 | 223,918,000 | 197,406,000 |
CubeSmart, L.P. and Subsidiaries | Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Partners' Capital | |||
Balance | $ (570) | $ (632) | $ (729) |
Other comprehensive income (loss), net | 79 | 62 | 97 |
Balance | (491) | (570) | (632) |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interest in Subsidiaries | |||
Increase (Decrease) in Partners' Capital | |||
Balance | 18,597 | 8,632 | 7,990 |
Contributions from noncontrolling interests in subsidiaries | 3,690 | 11,404 | 682 |
Distributions paid to noncontrolling interest in subsidiaries | (7,387) | (246) | (205) |
Acquisition of noncontrolling interest in subsidiary | (651) | ||
Net income (loss) | (722) | (542) | 165 |
Balance | $ 14,178 | $ 18,597 | $ 8,632 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (LP cube) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
CubeSmart, L.P. and Subsidiaries | |||
Common OP unit distributions (in dollars per share) | $ 1.78 | $ 1.45 | $ 1.33 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities | |||
Net income | $ 292,472 | $ 230,813 | $ 167,611 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 314,507 | 240,217 | 159,247 |
Non-cash portion of interest expense related to finance leases | (43) | 202 | |
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (48,877) | (25,275) | (178) |
Gains from sales of real estate, net | (32,698) | (6,710) | |
Equity compensation expense | 9,081 | 8,088 | 7,140 |
Accretion of fair market value adjustment of debt | (1,099) | (2,037) | (259) |
Changes in other operating accounts: | |||
Other assets | 3,498 | (9,247) | (9,674) |
Accounts payable and accrued expenses | 20,395 | 14,871 | 13,922 |
Other liabilities | 1,532 | 3,923 | 1,914 |
Net cash provided by operating activities | 591,466 | 449,185 | 351,033 |
Investing Activities | |||
Acquisitions of storage properties | (89,004) | (151,547) | (417,988) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (41,233) | (34,608) | (49,857) |
Development costs | (24,358) | (69,887) | (55,286) |
Investment in real estate ventures | (21) | (28,261) | (7,022) |
Cash distributed from real estate ventures | 62,656 | 66,593 | 6,246 |
Proceeds from sale of real estate, net | 43,193 | 44,026 | 12,466 |
Net cash used in investing activities | (48,767) | (1,852,668) | (511,441) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | |
Revolving credit facility | 633,950 | 906,571 | 429,085 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (782,950) | (814,471) | (311,285) |
Mortgage loans and notes payable | (2,426) | (87,263) | (46,093) |
Loan procurement costs | (3,885) | (12,548) | (3,764) |
Debt prepayment costs | (20,023) | (17,584) | |
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | ||
Cash paid upon vesting of restricted OP units | (1,403) | (876) | (686) |
Contributions from noncontrolling interests in subsidiaries | 350 | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,387) | (246) | (205) |
Distributions paid to common OP unitholders | (387,106) | (273,839) | (256,253) |
Net cash (used in) provided by financing activities | (547,092) | 1,410,572 | 108,196 |
Change in cash, cash equivalents and restricted cash | (4,393) | 7,089 | (52,212) |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 8,925 | 13,318 | 6,229 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 92,293 | 79,148 | 80,792 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (700) | (2,623) | |
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | |
Mortgage loan assumptions | 40,880 | 169,056 | |
Accretion of put liability | 2,444 | 9,777 | 7,917 |
Derivative valuation adjustment | 81 | 81 | 81 |
Issuance of OP units (see note 4) | 186,933 | ||
Contributions from noncontrolling interests in subsidiaries | 3,340 | 3,373 | 682 |
CubeSmart, L.P. and Subsidiaries | |||
Operating Activities | |||
Net income | 292,472 | 230,813 | 167,611 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation and amortization | 314,507 | 240,217 | 159,247 |
Non-cash portion of interest expense related to finance leases | (43) | 202 | |
Loss on early extinguishment of debt | 20,328 | 18,020 | |
Equity in earnings of real estate ventures | (48,877) | (25,275) | (178) |
Gains from sales of real estate, net | (32,698) | (6,710) | |
Equity compensation expense | 9,081 | 8,088 | 7,140 |
Accretion of fair market value adjustment of debt | (1,099) | (2,037) | (259) |
Changes in other operating accounts: | |||
Other assets | 3,498 | (9,247) | (9,674) |
Accounts payable and accrued expenses | 20,395 | 14,871 | 13,922 |
Other liabilities | 1,532 | 3,923 | 1,914 |
Net cash provided by operating activities | 591,466 | 449,185 | 351,033 |
Investing Activities | |||
Acquisitions of storage properties | (89,004) | (151,547) | (417,988) |
Acquisition of LAACO, Ltd., net of cash acquired | (1,678,984) | ||
Additions and improvements to storage properties | (41,233) | (34,608) | (49,857) |
Development costs | (24,358) | (69,887) | (55,286) |
Investment in real estate ventures | (21) | (28,261) | (7,022) |
Cash distributed from real estate ventures | 62,656 | 66,593 | 6,246 |
Proceeds from sale of real estate, net | 43,193 | 44,026 | 12,466 |
Net cash used in investing activities | (48,767) | (1,852,668) | (511,441) |
Proceeds from: | |||
Unsecured senior notes | 1,043,427 | 445,833 | |
Revolving credit facility | 633,950 | 906,571 | 429,085 |
Principal payments on: | |||
Unsecured senior notes | (300,000) | (250,000) | |
Revolving credit facility | (782,950) | (814,471) | (311,285) |
Mortgage loans and notes payable | (2,426) | (87,263) | (46,093) |
Loan procurement costs | (3,885) | (12,548) | (3,764) |
Debt prepayment costs | (20,023) | (17,584) | |
Acquisition of noncontrolling interest in subsidiary, net | (3,397) | ||
Proceeds from issuance of common OP units | 4,877 | 965,638 | 120,727 |
Cash paid upon vesting of restricted OP units | (1,403) | (876) | (686) |
Exercise of OP unit options | 1,590 | 7,865 | 961 |
Contributions from noncontrolling interests in subsidiaries | 350 | 8,031 | |
Distributions paid to noncontrolling interests in subsidiaries | (7,387) | (246) | (205) |
Distributions paid to common OP unitholders | (389,808) | (282,136) | (258,793) |
Net cash (used in) provided by financing activities | (547,092) | 1,410,572 | 108,196 |
Change in cash, cash equivalents and restricted cash | (4,393) | 7,089 | (52,212) |
Cash, cash equivalents and restricted cash at beginning of period | 13,318 | 6,229 | 58,441 |
Cash, cash equivalents and restricted cash at end of period | 8,925 | 13,318 | 6,229 |
Supplemental Cash Flow and Noncash Information | |||
Cash paid for interest, net of interest capitalized | 92,293 | 79,148 | 80,792 |
Supplemental disclosure of noncash activities: | |||
Acquisitions of storage properties | (700) | (2,623) | |
Right-of-use assets obtained in exchange for lease liabilities | 61,423 | ||
Discount on issuance of unsecured senior notes | 6,573 | 4,167 | |
Mortgage loan assumptions | 40,880 | 169,056 | |
Accretion of put liability | 2,444 | 9,777 | 7,917 |
Derivative valuation adjustment | (81) | (81) | (81) |
Issuance of OP units (see note 4) | 186,933 | ||
Contributions from noncontrolling interests in subsidiaries | $ 3,340 | $ 3,373 | $ 682 |