Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 31, 2024 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Entity File Number | 001-32324 | |
Entity Registrant Name | CUBESMART | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1024732 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. Malvern | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Title of 12(b) Security | Common Shares, $0.01 par value per share, of CubeSmart | |
Trading Symbol | CUBE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 225,198,729 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001298675 | |
Amendment Flag | false | |
CubeSmart, L.P. and Subsidiaries | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Entity File Number | 000-54462 | |
Entity Registrant Name | CUBESMART, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 34-1837021 | |
Entity Address, Address Line One | 5 Old Lancaster Rd. | |
Entity Address, City or Town | Malvern | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 535-5000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001300485 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Storage properties | $ 7,415,426 | $ 7,367,613 |
Less: Accumulated depreciation | (1,503,487) | (1,416,377) |
Storage properties, net | 5,911,939 | 5,951,236 |
Cash and cash equivalents | 5,656 | 6,526 |
Restricted cash | 1,614 | 1,691 |
Loan procurement costs, net of amortization | 3,364 | 3,995 |
Investment in real estate ventures, at equity | 94,053 | 98,288 |
Other assets, net | 167,830 | 163,284 |
Total assets | 6,184,456 | 6,225,020 |
LIABILITIES AND EQUITY | ||
Unsecured senior notes, net | 2,778,560 | 2,776,490 |
Revolving credit facility | 10,600 | 18,100 |
Mortgage loans and notes payable, net | 95,388 | 128,186 |
Lease liabilities - finance leases | 65,685 | 65,714 |
Accounts payable, accrued expenses and other liabilities | 230,287 | 201,419 |
Distributions payable | 116,014 | 115,820 |
Deferred revenue | 40,576 | 38,483 |
Total liabilities | 3,337,110 | 3,344,212 |
Noncontrolling interests in the Operating Partnership | 55,930 | 60,276 |
Commitments and contingencies | ||
Equity | ||
Common shares $.01 par value, 400,000,000 shares authorized, 225,196,862 and 224,921,053 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 2,252 | 2,249 |
Additional paid-in capital | 4,154,269 | 4,142,229 |
Accumulated other comprehensive loss | (371) | (411) |
Accumulated deficit | (1,386,056) | (1,345,239) |
Total CubeSmart shareholders' equity | 2,770,094 | 2,798,828 |
Noncontrolling interests in subsidiaries | 21,322 | 21,704 |
Total equity | 2,791,416 | 2,820,532 |
Total liabilities and equity | $ 6,184,456 | $ 6,225,020 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Storage properties | $ 5,911,939 | $ 5,951,236 | |
Cash and cash equivalents | $ 5,656 | $ 6,526 | |
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 | 225,196,862 | 224,921,053 | |
Common shares, shares outstanding | 225,196,862 | 224,921,053 | 224,797,239 |
VIE | |||
Storage properties | $ 189,262 | $ 180,615 | |
Cash and cash equivalents | $ 2,355 | $ 3,002 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES | ||||
Rental income | $ 226,791 | $ 225,910 | $ 451,981 | $ 449,494 |
Total revenues | 266,209 | 260,805 | 527,615 | 517,333 |
OPERATING EXPENSES | ||||
Property operating expenses | 83,097 | 74,821 | 160,134 | 145,948 |
Depreciation and amortization | 51,035 | 50,358 | 101,752 | 100,687 |
General and administrative | 14,622 | 14,325 | 30,247 | 28,999 |
Total operating expenses | 148,754 | 139,504 | 292,133 | 275,634 |
Interest: | ||||
Interest expense on loans | (22,767) | (23,544) | (45,686) | (47,235) |
Loan procurement amortization expense | (1,015) | (1,041) | (2,045) | (2,081) |
Equity in earnings of real estate ventures | 425 | 790 | 1,270 | 3,341 |
Other | 88 | 777 | 23 | 501 |
Total other expense | (23,269) | (23,018) | (46,438) | (45,474) |
NET INCOME | 94,186 | 98,283 | 189,044 | 196,225 |
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net income attributable to noncontrolling interests in the Operating Partnership | (524) | (616) | (1,065) | (1,230) |
Net loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 |
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ 93,964 | $ 97,879 | $ 188,491 | $ 195,445 |
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.42 | $ 0.43 | $ 0.83 | $ 0.87 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 |
Weighted average basic shares outstanding (in shares) | 225,886 | 225,388 | 225,827 | 225,342 |
Weighted average diluted shares outstanding (in shares) | 226,618 | 226,275 | 226,593 | 226,238 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 28,958 | $ 25,760 | $ 55,274 | $ 50,144 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 10,460 | $ 9,135 | $ 20,360 | $ 17,695 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME | $ 94,186 | $ 98,283 | $ 189,044 | $ 196,225 |
Other comprehensive income: | ||||
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 94,206 | 98,303 | 189,084 | 196,265 |
Comprehensive income attributable to noncontrolling interests in the Operating Partnership | (524) | (616) | (1,065) | (1,230) |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 93,984 | $ 97,899 | $ 188,531 | $ 195,485 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands | Total Shareholders' Equity | Common Shares | Additional Paid in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Noncontrolling Interest in Subsidiaries | Noncontrolling Interests in the Operating Partnership | Total |
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 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interest in subsidiaries | (107) | (107) | ||||||
Issuance of common shares, net | (91) | (91) | (91) | |||||
Issuance of restricted shares (in shares) | 22 | |||||||
Conversion from units to shares | 361 | 361 | (361) | 361 | ||||
Conversion from units to shares (in shares) | 8 | |||||||
Exercise of stock options | 915 | $ 1 | 914 | 915 | ||||
Exercise of stock options (in shares) | 39 | |||||||
Amortization of restricted shares | 1,171 | 1,171 | 1,171 | |||||
Share compensation expense | 730 | 730 | 730 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | (8,588) | (8,588) | 8,588 | (8,588) | ||||
Net income (loss) | 97,566 | 97,566 | (238) | 97,328 | ||||
Net income (loss) | 614 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (110,524) | (110,524) | (695) | (110,524) | ||||
Balance at Mar. 31, 2023 | 2,807,763 | $ 2,247 | 4,128,563 | (471) | (1,322,576) | 13,833 | 2,821,596 | |
Balance (in shares) at Mar. 31, 2023 | 224,672 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2023 | 65,565 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 797 | 797 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (54) | (54) | ||||||
Issuance of common shares, net | (55) | (55) | (55) | |||||
Issuance of restricted shares (in shares) | 20 | |||||||
Exercise of stock options | 1,801 | $ 1 | 1,800 | 1,801 | ||||
Exercise of stock options (in shares) | 105 | |||||||
Amortization of restricted shares | 1,621 | 1,621 | 1,621 | |||||
Share compensation expense | 692 | 692 | 692 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 2,134 | 2,134 | (2,134) | 2,134 | ||||
Net income (loss) | 97,879 | 97,879 | (212) | 97,667 | ||||
Net income (loss) | 616 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (110,585) | (110,585) | (695) | (110,585) | ||||
Balance at Jun. 30, 2023 | 2,801,270 | $ 2,248 | 4,132,621 | (451) | (1,333,148) | 14,364 | 2,815,634 | |
Balance (in shares) at Jun. 30, 2023 | 224,797 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2023 | 63,352 | |||||||
Balance at Dec. 31, 2023 | 2,798,828 | $ 2,249 | 4,142,229 | (411) | (1,345,239) | 21,704 | 2,820,532 | |
Balance (in shares) at Dec. 31, 2023 | 224,921 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2023 | 60,276 | 60,276 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Contributions from noncontrolling interest in subsidiaries | 309 | 309 | ||||||
Distributions paid to noncontrolling interest in subsidiaries | (125) | (125) | ||||||
Issuance of common shares, net | (10) | (10) | (10) | |||||
Issuance of restricted shares | 1 | $ 1 | 1 | |||||
Issuance of restricted shares (in shares) | 24 | |||||||
Conversion from units to shares | 561 | 561 | (561) | 561 | ||||
Conversion from units to shares (in shares) | 12 | |||||||
Exercise of stock options | 201 | 201 | 201 | |||||
Exercise of stock options (in shares) | 8 | |||||||
Amortization of restricted shares | 1,189 | 1,189 | 1,189 | |||||
Share compensation expense | 802 | 802 | 802 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 1,346 | 1,346 | (1,346) | 1,346 | ||||
Net income (loss) | 94,527 | 94,527 | (210) | 94,317 | ||||
Net income (loss) | 541 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (115,357) | (115,357) | (657) | (115,357) | ||||
Balance at Mar. 31, 2024 | 2,782,108 | $ 2,250 | 4,144,972 | (391) | (1,364,723) | 21,678 | 2,803,786 | |
Balance (in shares) at Mar. 31, 2024 | 224,965 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2024 | 58,253 | |||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Distributions paid to noncontrolling interest in subsidiaries | (54) | (54) | ||||||
Issuance of common shares, net | (39) | (39) | (39) | |||||
Issuance of restricted shares (in shares) | 28 | |||||||
Conversion from units to shares | 2,123 | $ 1 | 2,122 | (2,123) | 2,123 | |||
Conversion from units to shares (in shares) | 50 | |||||||
Exercise of stock options | 4,518 | $ 1 | 4,517 | 4,518 | ||||
Exercise of stock options (in shares) | 154 | |||||||
Amortization of restricted shares | 1,897 | 1,897 | 1,897 | |||||
Share compensation expense | 800 | 800 | 800 | |||||
Adjustment for noncontrolling interests in the Operating Partnership | 93 | 93 | (93) | 93 | ||||
Net income (loss) | 93,964 | 93,964 | (302) | 93,662 | ||||
Net income (loss) | 524 | |||||||
Other comprehensive income (loss), net | 20 | 20 | 20 | |||||
Common share distributions | (115,390) | (115,390) | (631) | (115,390) | ||||
Balance at Jun. 30, 2024 | $ 2,770,094 | $ 2,252 | $ 4,154,269 | $ (371) | $ (1,386,056) | $ 21,322 | 2,791,416 | |
Balance (in shares) at Jun. 30, 2024 | 225,197 | |||||||
Balance of Noncontrolling Interests in the Operating Partnership at Jun. 30, 2024 | $ 55,930 | $ 55,930 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||||||
Common share distributions (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.49 | $ 0.49 | $ 1.02 | $ 0.98 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Activities | ||
Net income | $ 189,044 | $ 196,225 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization, including amortization of loan procurement costs | 103,797 | 102,768 |
Non-cash portion of interest expense related to finance leases | (29) | (31) |
Equity in earnings of real estate ventures | (1,270) | (3,341) |
Cash distributed from real estate ventures | 2,325 | 2,311 |
Equity compensation expense | 5,687 | 4,985 |
Accretion of fair market value adjustment of debt | (289) | (531) |
Changes in other operating accounts: | ||
Other assets | (6,070) | (18,888) |
Accounts payable and accrued expenses | 25,804 | 14,097 |
Other liabilities | 2,013 | 1,487 |
Net cash provided by operating activities | 321,012 | 299,082 |
Investing Activities | ||
Acquisitions of storage properties | (20,147) | |
Additions and improvements to storage properties | (21,068) | (25,274) |
Development costs | (16,528) | (27,718) |
Investments in real estate ventures | (310) | (10) |
Cash distributed from real estate ventures | 3,490 | 5,551 |
Net cash used in investing activities | (54,563) | (47,451) |
Proceeds from: | ||
Revolving credit facility | 410,587 | 454,934 |
Principal payments on: | ||
Revolving credit facility | (418,087) | (452,634) |
Mortgage loans and notes payable | (31,857) | (31,698) |
Loan procurement costs | (39) | |
Issuance of common shares, net | (48) | (146) |
Cash paid upon vesting of restricted shares | (999) | (771) |
Exercise of stock options | 4,719 | 2,716 |
Contributions from noncontrolling interests in subsidiaries | 309 | 797 |
Distributions paid to noncontrolling interests in subsidiaries | (179) | (161) |
Distributions paid to common shareholders | (230,521) | (221,015) |
Distributions paid to noncontrolling interests in Operating Partnership | (1,320) | (1,394) |
Net cash used in financing activities | (267,396) | (249,411) |
Change in cash, cash equivalents and restricted cash | (947) | 2,220 |
Cash, cash equivalents and restricted cash at beginning of period | 8,217 | 8,925 |
Cash, cash equivalents and restricted cash at end of period | 7,270 | 11,145 |
Supplemental Cash Flow and Noncash Information | ||
Cash paid for interest, net of interest capitalized | 46,904 | 48,357 |
Supplemental disclosure of noncash activities: | ||
Derivative valuation adjustment | $ 40 | $ 40 |
CONSOLIDATED BALANCE SHEETS (LP
CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Storage properties | $ 7,415,426 | $ 7,367,613 |
Less: Accumulated depreciation | (1,503,487) | (1,416,377) |
Storage properties, net | 5,911,939 | 5,951,236 |
Cash and cash equivalents | 5,656 | 6,526 |
Restricted cash | 1,614 | 1,691 |
Loan procurement costs, net of amortization | 3,364 | 3,995 |
Investment in real estate ventures, at equity | 94,053 | 98,288 |
Other assets, net | 167,830 | 163,284 |
Total assets | 6,184,456 | 6,225,020 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,778,560 | 2,776,490 |
Revolving credit facility | 10,600 | 18,100 |
Mortgage loans and notes payable, net | 95,388 | 128,186 |
Lease liabilities - finance leases | 65,685 | 65,714 |
Accounts payable, accrued expenses and other liabilities | 230,287 | 201,419 |
Distributions payable | 116,014 | 115,820 |
Deferred revenue | 40,576 | 38,483 |
Total liabilities | 3,337,110 | 3,344,212 |
Limited Partnership interests of third parties | 55,930 | 60,276 |
Commitments and contingencies | ||
Capital | ||
Accumulated other comprehensive loss | (371) | (411) |
Total liabilities and equity | 6,184,456 | 6,225,020 |
CubeSmart, L.P. and Subsidiaries | ||
ASSETS | ||
Storage properties | 7,415,426 | 7,367,613 |
Less: Accumulated depreciation | (1,503,487) | (1,416,377) |
Storage properties, net | 5,911,939 | 5,951,236 |
Cash and cash equivalents | 5,656 | 6,526 |
Restricted cash | 1,614 | 1,691 |
Loan procurement costs, net of amortization | 3,364 | 3,995 |
Investment in real estate ventures, at equity | 94,053 | 98,288 |
Other assets, net | 167,830 | 163,284 |
Total assets | 6,184,456 | 6,225,020 |
LIABILITIES AND CAPITAL | ||
Unsecured senior notes, net | 2,778,560 | 2,776,490 |
Revolving credit facility | 10,600 | 18,100 |
Mortgage loans and notes payable, net | 95,388 | 128,186 |
Lease liabilities - finance leases | 65,685 | 65,714 |
Accounts payable, accrued expenses and other liabilities | 230,287 | 201,419 |
Distributions payable | 116,014 | 115,820 |
Deferred revenue | 40,576 | 38,483 |
Total liabilities | 3,337,110 | 3,344,212 |
Limited Partnership interests of third parties | 55,930 | 60,276 |
Capital | ||
General Partner | 2,770,465 | 2,799,239 |
Accumulated other comprehensive loss | (371) | (411) |
Total CubeSmart, L.P. capital | 2,770,094 | 2,798,828 |
Noncontrolling interests in subsidiaries | 21,322 | 21,704 |
Total capital | 2,791,416 | 2,820,532 |
Total liabilities and equity | $ 6,184,456 | $ 6,225,020 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Storage facilities, net | $ 5,911,939 | $ 5,951,236 |
Cash and cash equivalents | 5,656 | 6,526 |
VIE | ||
Storage facilities, net | 189,262 | 180,615 |
Cash and cash equivalents | 2,355 | 3,002 |
CubeSmart, L.P. and Subsidiaries | ||
Storage facilities, net | 5,911,939 | 5,951,236 |
Cash and cash equivalents | 5,656 | 6,526 |
CubeSmart, L.P. and Subsidiaries | VIE | ||
Storage facilities, net | 189,262 | 180,615 |
Cash and cash equivalents | $ 2,355 | $ 3,002 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
REVENUES | ||||
Rental income | $ 226,791 | $ 225,910 | $ 451,981 | $ 449,494 |
Total revenues | 266,209 | 260,805 | 527,615 | 517,333 |
OPERATING EXPENSES | ||||
Property operating expenses | 83,097 | 74,821 | 160,134 | 145,948 |
Depreciation and amortization | 51,035 | 50,358 | 101,752 | 100,687 |
General and administrative | 14,622 | 14,325 | 30,247 | 28,999 |
Total operating expenses | 148,754 | 139,504 | 292,133 | 275,634 |
Interest: | ||||
Interest expense on loans | (22,767) | (23,544) | (45,686) | (47,235) |
Loan procurement amortization expense | (1,015) | (1,041) | (2,045) | (2,081) |
Equity in earnings of real estate ventures | 425 | 790 | 1,270 | 3,341 |
Other | 88 | 777 | 23 | 501 |
Total other expense | (23,269) | (23,018) | (46,438) | (45,474) |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Operating Partnership interests of third parties | $ (524) | $ (616) | $ (1,065) | $ (1,230) |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 |
Weighted-average basic units outstanding (in units) | 225,886 | 225,388 | 225,827 | 225,342 |
Weighted-average diluted units outstanding (in units) | 226,618 | 226,275 | 226,593 | 226,238 |
Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 28,958 | $ 25,760 | $ 55,274 | $ 50,144 |
Property Management Fee Income | ||||
REVENUES | ||||
Property related income | 10,460 | 9,135 | 20,360 | 17,695 |
CubeSmart, L.P. and Subsidiaries | ||||
REVENUES | ||||
Rental income | 226,791 | 225,910 | 451,981 | 449,494 |
Total revenues | 266,209 | 260,805 | 527,615 | 517,333 |
OPERATING EXPENSES | ||||
Property operating expenses | 83,097 | 74,821 | 160,134 | 145,948 |
Depreciation and amortization | 51,035 | 50,358 | 101,752 | 100,687 |
General and administrative | 14,622 | 14,325 | 30,247 | 28,999 |
Total operating expenses | 148,754 | 139,504 | 292,133 | 275,634 |
Interest: | ||||
Interest expense on loans | (22,767) | (23,544) | (45,686) | (47,235) |
Loan procurement amortization expense | (1,015) | (1,041) | (2,045) | (2,081) |
Equity in earnings of real estate ventures | 425 | 790 | 1,270 | 3,341 |
Other | 88 | 777 | 23 | 501 |
Total other expense | (23,269) | (23,018) | (46,438) | (45,474) |
NET INCOME | 94,186 | 98,283 | 189,044 | 196,225 |
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ||||
Net loss attributable to noncontrolling interest in subsidiaries | 302 | 212 | 512 | 450 |
NET INCOME ATTRIBUTABLE TO CUBESMART L.P. | 94,488 | 98,495 | 189,556 | 196,675 |
NET INCOME ATTRIBUTABLE TO COMMON UNITHOLDERS | $ 94,488 | $ 98,495 | $ 189,556 | $ 196,675 |
Basic earnings per unit attributable to common unitholders (in dollars per share) | $ 0.42 | $ 0.43 | $ 0.83 | $ 0.87 |
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 |
Weighted-average basic units outstanding (in units) | 227,145 | 226,807 | 227,101 | 226,763 |
Weighted-average diluted units outstanding (in units) | 227,877 | 227,694 | 227,867 | 227,659 |
CubeSmart, L.P. and Subsidiaries | Other Property Related Income | ||||
REVENUES | ||||
Property related income | $ 28,958 | $ 25,760 | $ 55,274 | $ 50,144 |
CubeSmart, L.P. and Subsidiaries | Property Management Fee Income | ||||
REVENUES | ||||
Property related income | $ 10,460 | $ 9,135 | $ 20,360 | $ 17,695 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other comprehensive income: | ||||
Reclassification of realized losses on interest rate swaps | $ 20 | $ 20 | $ 40 | $ 40 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 94,206 | 98,303 | 189,084 | 196,265 |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 93,984 | 97,899 | 188,531 | 195,485 |
CubeSmart, L.P. and Subsidiaries | ||||
NET INCOME | 94,186 | 98,283 | 189,044 | 196,225 |
Other comprehensive income: | ||||
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
OTHER COMPREHENSIVE INCOME: | 20 | 20 | 40 | 40 |
COMPREHENSIVE INCOME | 94,206 | 98,303 | 189,084 | 196,265 |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $ 94,508 | $ 98,515 | $ 189,596 | $ 196,715 |
CONSOLIDATED STATEMENTS OF CAPI
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Increase (Decrease) in Partners' Capital | ||||
Balance of Noncontrolling Interests in the Operating Partnership | $ 60,276 | |||
Contributions from noncontrolling interests in subsidiaries | 309 | $ 797 | ||
Distributions paid to noncontrolling interest in subsidiaries | $ (54) | (125) | (54) | $ (107) |
Adjustment for Operating Partnership interests of third parties | 93 | 1,346 | 2,134 | (8,588) |
Net income (loss) | 93,662 | 94,317 | 97,667 | 97,328 |
Other comprehensive income (loss), net | 20 | 20 | 20 | 20 |
Balance of Noncontrolling Interests in the Operating Partnership | 55,930 | |||
Noncontrolling Interests in the Operating Partnership | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance of Noncontrolling Interests in the Operating Partnership | 58,253 | 60,276 | 65,565 | 57,419 |
Adjustment for Operating Partnership interests of third parties | (93) | (1,346) | (2,134) | 8,588 |
Net income (loss) | 524 | 541 | 616 | 614 |
Balance of Noncontrolling Interests in the Operating Partnership | 55,930 | 58,253 | 63,352 | 65,565 |
CubeSmart, L.P. and Subsidiaries | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | 2,803,786 | 2,820,532 | 2,821,596 | 2,840,381 |
Balance of Noncontrolling Interests in the Operating Partnership | 60,276 | |||
Contributions from noncontrolling interests in subsidiaries | 309 | 797 | ||
Distributions paid to noncontrolling interest in subsidiaries | (54) | (125) | (54) | (107) |
Issuance of restricted OP units | 1 | |||
Issuance of common OP units | (39) | (10) | (55) | (91) |
Conversion from OP units to shares | 2,123 | 561 | 361 | |
Exercise of OP unit options | 4,518 | 201 | 1,801 | 915 |
Amortization of restricted OP units | 1,897 | 1,189 | 1,621 | 1,171 |
OP unit compensation expense | 800 | 802 | 692 | 730 |
Adjustment for Operating Partnership interests of third parties | 93 | 1,346 | 2,134 | (8,588) |
Net income (loss) | 93,662 | 94,317 | 97,667 | 97,328 |
Other comprehensive income (loss), net | 20 | 20 | 20 | 20 |
Common OP unit distributions | (115,390) | (115,357) | (110,585) | (110,524) |
Balance | 2,791,416 | 2,803,786 | 2,815,634 | 2,821,596 |
Balance of Noncontrolling Interests in the Operating Partnership | 55,930 | |||
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interests in the Operating Partnership | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance of Noncontrolling Interests in the Operating Partnership | 58,253 | 60,276 | 65,565 | 57,419 |
Conversion from OP units to shares | (2,123) | (561) | (361) | |
Adjustment for Operating Partnership interests of third parties | (93) | (1,346) | (2,134) | 8,588 |
Net income (loss) | 524 | 541 | 616 | 614 |
Common OP unit distributions | (631) | (657) | (695) | (695) |
Balance of Noncontrolling Interests in the Operating Partnership | 55,930 | 58,253 | 63,352 | 65,565 |
CubeSmart, L.P. and Subsidiaries | Total Shareholders' Equity | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | 2,782,108 | 2,798,828 | 2,807,763 | 2,826,203 |
Issuance of restricted OP units | 1 | |||
Issuance of common OP units | (39) | (10) | (55) | (91) |
Conversion from OP units to shares | 2,123 | 561 | 361 | |
Exercise of OP unit options | 4,518 | 201 | 1,801 | 915 |
Amortization of restricted OP units | 1,897 | 1,189 | 1,621 | 1,171 |
OP unit compensation expense | 800 | 802 | 692 | 730 |
Adjustment for Operating Partnership interests of third parties | 93 | 1,346 | 2,134 | (8,588) |
Net income (loss) | 93,964 | 94,527 | 97,879 | 97,566 |
Other comprehensive income (loss), net | 20 | 20 | 20 | 20 |
Common OP unit distributions | (115,390) | (115,357) | (110,585) | (110,524) |
Balance | 2,770,094 | 2,782,108 | 2,801,270 | 2,807,763 |
CubeSmart, L.P. and Subsidiaries | Operating Partner | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | $ 2,782,499 | $ 2,799,239 | $ 2,808,234 | $ 2,826,694 |
Balance (in units) | 224,965 | 224,921 | 224,672 | 224,603 |
Issuance of restricted OP units | $ 1 | |||
Issuance of restricted OP units (in units) | 28 | 24 | 20 | 22 |
Issuance of common OP units | $ (39) | $ (10) | $ (55) | $ (91) |
Conversion from OP units to shares | $ 2,123 | $ 561 | $ 361 | |
Conversion from OP units to shares (in units) | 50 | 12 | 8 | |
Exercise of OP unit options | $ 4,518 | $ 201 | $ 1,801 | $ 915 |
Exercise of OP unit options (in units) | 154 | 8 | 105 | 39 |
Amortization of restricted OP units | $ 1,897 | $ 1,189 | $ 1,621 | $ 1,171 |
OP unit compensation expense | 800 | 802 | 692 | 730 |
Adjustment for Operating Partnership interests of third parties | 93 | 1,346 | 2,134 | (8,588) |
Net income (loss) | 93,964 | 94,527 | 97,879 | 97,566 |
Common OP unit distributions | (115,390) | (115,357) | (110,585) | (110,524) |
Balance | $ 2,770,465 | $ 2,782,499 | $ 2,801,721 | $ 2,808,234 |
Balance (in units) | 225,197 | 224,965 | 224,797 | 224,672 |
CubeSmart, L.P. and Subsidiaries | Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | $ (391) | $ (411) | $ (471) | $ (491) |
Other comprehensive income (loss), net | 20 | 20 | 20 | 20 |
Balance | (371) | (391) | (451) | (471) |
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interest in Subsidiaries | ||||
Increase (Decrease) in Partners' Capital | ||||
Balance | 21,678 | 21,704 | 13,833 | 14,178 |
Contributions from noncontrolling interests in subsidiaries | 309 | 797 | ||
Distributions paid to noncontrolling interest in subsidiaries | (54) | (125) | (54) | (107) |
Net income (loss) | (302) | (210) | (212) | (238) |
Balance | $ 21,322 | $ 21,678 | $ 14,364 | $ 13,833 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CAPITAL (Parenthetical) (LP cube) - $ / shares | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 |
CubeSmart, L.P. and Subsidiaries | ||||
Common OP unit distributions (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.49 | $ 0.49 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Operating Activities | |||||
Net income | $ 94,186 | $ 98,283 | $ 189,044 | $ 196,225 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||||
Depreciation and amortization, including amortization of loan procurement costs | 103,797 | 102,768 | |||
Non-cash portion of interest expense related to finance leases | (29) | (31) | |||
Equity in earnings of real estate ventures | (425) | (790) | (1,270) | (3,341) | |
Cash distributed from real estate ventures | 2,325 | 2,311 | |||
Equity compensation expense | 5,687 | 4,985 | |||
Accretion of fair market value adjustment of debt | (289) | (531) | |||
Changes in other operating accounts: | |||||
Other assets | (6,070) | (18,888) | |||
Accounts payable and accrued expenses | 25,804 | 14,097 | |||
Other liabilities | 2,013 | 1,487 | |||
Net cash provided by operating activities | 321,012 | 299,082 | |||
Investing Activities | |||||
Acquisitions of storage properties | (20,147) | ||||
Additions and improvements to storage properties | (21,068) | (25,274) | |||
Development costs | (16,528) | (27,718) | |||
Investments in real estate ventures | (310) | (10) | |||
Cash distributed from real estate ventures | 3,490 | 5,551 | |||
Net cash used in investing activities | (54,563) | (47,451) | |||
Proceeds from: | |||||
Revolving credit facility | 410,587 | 454,934 | |||
Principal payments on: | |||||
Revolving credit facility | (418,087) | (452,634) | |||
Mortgage loans and notes payable | (31,857) | (31,698) | |||
Loan procurement costs | (39) | ||||
Cash paid upon vesting of restricted OP units | (999) | (771) | |||
Contributions from noncontrolling interests in subsidiaries | 309 | 797 | |||
Distributions paid to noncontrolling interests in subsidiaries | (179) | (161) | |||
Distributions paid to common OP unitholders | (230,521) | (221,015) | |||
Net cash used in financing activities | (267,396) | (249,411) | |||
Change in cash, cash equivalents and restricted cash | (947) | 2,220 | |||
Cash, cash equivalents and restricted cash at beginning of period | 8,217 | 8,925 | $ 8,925 | ||
Cash, cash equivalents and restricted cash at end of period | 7,270 | 11,145 | 7,270 | 11,145 | 8,217 |
Supplemental Cash Flow and Noncash Information | |||||
Cash paid for interest, net of interest capitalized | 46,904 | 48,357 | |||
Supplemental disclosure of noncash activities: | |||||
Derivative valuation adjustment | 40 | 40 | |||
CubeSmart, L.P. and Subsidiaries | |||||
Operating Activities | |||||
Net income | 189,044 | 196,225 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||
Depreciation and amortization, including amortization of loan procurement costs | 103,797 | 102,768 | |||
Non-cash portion of interest expense related to finance leases | (29) | (31) | |||
Equity in earnings of real estate ventures | (425) | (790) | (1,270) | (3,341) | |
Cash distributed from real estate ventures | 2,325 | 2,311 | |||
Equity compensation expense | 5,687 | 4,985 | |||
Accretion of fair market value adjustment of debt | (289) | (531) | |||
Changes in other operating accounts: | |||||
Other assets | (6,070) | (18,888) | |||
Accounts payable and accrued expenses | 25,804 | 14,097 | |||
Other liabilities | 2,013 | 1,487 | |||
Net cash provided by operating activities | 321,012 | 299,082 | |||
Investing Activities | |||||
Acquisitions of storage properties | (20,147) | ||||
Additions and improvements to storage properties | (21,068) | (25,274) | |||
Development costs | (16,528) | (27,718) | |||
Investments in real estate ventures | (310) | (10) | |||
Cash distributed from real estate ventures | 3,490 | 5,551 | |||
Net cash used in investing activities | (54,563) | (47,451) | |||
Proceeds from: | |||||
Revolving credit facility | 410,587 | 454,934 | |||
Principal payments on: | |||||
Revolving credit facility | (418,087) | (452,634) | |||
Mortgage loans and notes payable | (31,857) | (31,698) | |||
Loan procurement costs | (39) | ||||
Issuance of common OP units, net | (48) | (146) | |||
Cash paid upon vesting of restricted OP units | (999) | (771) | |||
Exercise of OP unit options | 4,719 | 2,716 | |||
Contributions from noncontrolling interests in subsidiaries | 309 | 797 | |||
Distributions paid to noncontrolling interests in subsidiaries | (179) | (161) | |||
Distributions paid to common OP unitholders | (231,841) | (222,409) | |||
Net cash used in financing activities | (267,396) | (249,411) | |||
Change in cash, cash equivalents and restricted cash | (947) | 2,220 | |||
Cash, cash equivalents and restricted cash at beginning of period | 8,217 | 8,925 | 8,925 | ||
Cash, cash equivalents and restricted cash at end of period | $ 7,270 | $ 11,145 | 7,270 | 11,145 | $ 8,217 |
Supplemental Cash Flow and Noncash Information | |||||
Cash paid for interest, net of interest capitalized | 46,904 | 48,357 | |||
Supplemental disclosure of noncash activities: | |||||
Derivative valuation adjustment | $ 40 | $ 40 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2024 | |
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 unaudited consolidated financial statements, the terms “the Company”, “we” or “our” are used to refer to the Parent Company and the Operating Partnership together, unless the context indicates otherwise. As of June 30, 2024, 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 June 30, 2024, the Parent Company owned approximately 99.5% of the partnership interests (“OP Units” or “common units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time following a specified restricted period for cash equal to the fair value of an equivalent number of common shares of the Parent Company. In lieu of delivering cash, however, the Parent Company, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Parent Company so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Parent Company’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Parent Company issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Parent Company an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT.” The Company typically experiences seasonal fluctuations in the occupancy levels of its stores, which are generally slightly higher during the summer months due to increased moving activity. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s combined audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2023, which are included in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2023 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. Reclassifications Certain amounts within the Company’s and the Operating Partnership’s unaudited consolidated financial statements have been reclassified in prior years to conform to the current year presentation. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires the disclosure of incremental segment information, including significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and a reconciliation of segment profit or loss to net income. The title and position of the CODM must also be disclosed, along with how the CODM uses the reported measures to assess segment performance and to allocate resources. Entities with a single reportable segment (such as the Company) will be required to provide the disclosures required by Topic 280, as amended. The standard became effective for the Company on January 1, 2024 and the required disclosures for the Company will begin with its Annual Report on Form 10-K for the fiscal year ending December 31, 2024. The adoption and implementation of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES
STORAGE PROPERTIES | 6 Months Ended |
Jun. 30, 2024 | |
STORAGE PROPERTIES | |
STORAGE PROPERTIES | 3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: June 30, December 31, 2024 2023 (in thousands) Land $ 1,616,167 $ 1,594,742 Buildings and improvements 5,579,096 5,517,544 Equipment 143,283 144,372 Construction in progress 34,935 69,010 Right-of-use assets - finance leases 41,945 41,945 Storage properties 7,415,426 7,367,613 Less: Accumulated depreciation (1,503,487) (1,416,377) Storage properties, net $ 5,911,939 $ 5,951,236 The following table summarizes the Company’s acquisition and disposition activity since January 1, 2023. Number of Transaction Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2024 Acquisitions: Connecticut Assets Hartford-West Hartford-East Hartford, CT January 2024 2 $ 20,200 2 $ 20,200 2023 Acquisition: New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2023 1 $ 22,000 1 $ 22,000 2023 Disposition: Illinois Asset (1) Chicago-Naperville-Joliet, IL-IN-WI December 2023 1 $ 8,000 1 $ 8,000 (1) This store was subject to an involuntary conversion by the Department of Transportation of the State of Illinois. |
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY | 6 Months Ended |
Jun. 30, 2024 | |
INVESTMENT ACTIVITY | |
INVESTMENT ACTIVITY | 4. INVESTMENT ACTIVITY 2024 Acquisitions During the six months ended June 30, 2024, the Company acquired a two -store portfolio located in Connecticut for an aggregate purchase price of $20.2 million. In connection with this transaction, 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 relative fair value. Intangible assets consisted of in-place leases, which aggregated to $0.9 million at the time of the acquisition and prior to amortization of such amounts. The estimated life of these in-place leases is 12 months and the amortization expense that was recognized during the three and six months ended June 30, 2024 was approximately $0.2 million and $0.4 million, respectively. 2023 Acquisition During the year ended December 31, 2023, the Company acquired one store located in New Jersey for a purchase price of $22.0 million. In connection with this transaction, 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 relative fair value. Intangible assets consisted of in-place leases, which aggregated to $2.0 million at the time of the acquisition and prior to amortization of such amounts. The estimated life of these in-place leases is 12 months and the amortization expense that was recognized during the three and six months ended June 30, 2024 was approximately $0.5 million and $1.0 million, respectively. No amortization expense related to this store was recognized during the three or six months ended June 30, 2023. 2023 Dispositions In August 2023, the Company sold the California Yacht Club, which it purchased in December 2021 as part of the LAACO acquisition, for $0.8 million. A loss of $0.2 million was recognized in conjunction with the sale. Additionally, in December 2023, a store was subject to an involuntary conversion by the Department of Transportation of the State of Illinois. The Company received $8.0 million as consideration and recorded a gain of $4.8 million. Development Activity As of June 30, 2024, the Company had invested in consolidated joint ventures to develop two self-storage properties located in New York. Construction for these projects is expected to be completed during the third quarter of 2025. As of June 30, 2024, development costs incurred to date for these projects totaled $16.8 million. Total construction costs for these projects are expected to be $45.7 million. These costs are capitalized to construction in progress while the project is under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company, through two consolidated joint ventures, completed the construction and opened for operation the following stores during the period of January 1, 2023 through June 30, 2024. 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) Astoria, NY 1 Q2 2024 70% $ 45,900 Clark, NJ 1 Q2 2024 90% 15,900 2 $ 61,800 |
INVESTMENT IN UNCONSOLIDATED RE
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, December 31, June 30, December 31, Unconsolidated Real Estate Ventures Interest 2024 2023 2024 2023 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,387 $ 13,575 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 20,420 20,679 191 V CUBE LLC ("HVP V") 20% 6 6 12,099 12,759 191 IV CUBE LLC ("HVP IV") 20% 28 28 15,672 17,085 CUBE HHF Northeast Venture LLC ("HHFNE") 10% 13 13 864 951 CUBE HHF Limited Partnership ("HHF") 50% 28 28 31,611 33,239 77 77 $ 94,053 $ 98,288 (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. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. As of June 30, 2024, the remaining unamortized difference was $12.6 million for Fontana and $18.8 million for RCSS. As of June 30, 2024, the Company also held a 10% interest in 191 IV CUBE Southeast LLC ("HVPSE"). 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. During the six months ended June 30, 2023, the Company received distributions of $1.7 million in excess of its investment in HVPSE from proceeds that were held back at the time of the sale. These distributions are included in Equity in earnings of real estate ventures within the Company’s consolidated statements of operations. As of June 30, 2024, HVPSE had no significant assets or liabilities. The Company determined that Fontana, RCSS, HVP V, HVPSE, HVP IV, HHFNE and HHF (collectively, 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 within 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 June 30, 2024 and December 31, 2023. June 30, December 31, 2024 2023 Assets (in thousands) Storage properties, net $ 695,559 $ 715,142 Other assets 19,488 10,382 Total assets $ 715,047 $ 725,524 Liabilities and equity Debt $ 471,468 $ 470,573 Other liabilities 21,778 18,557 Equity CubeSmart 62,642 66,446 Joint venture partners 159,159 169,948 Total liabilities and equity $ 715,047 $ 725,524 The following is a summary of results of operations of the Ventures for the three and six months ended June 30, 2024 and 2023. Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Total revenues $ 24,840 $ 24,555 $ 49,426 $ 48,619 Operating expenses (10,540) (10,545) (20,915) (21,064) Other expenses (111) (180) (217) (248) Interest expense, net (6,576) (4,425) (11,234) (8,508) Depreciation and amortization (7,408) (7,676) (14,940) (15,447) Net income $ 205 $ 1,729 $ 2,120 $ 3,352 Company’s share of net income $ 425 $ 790 $ 1,270 $ 3,341 |
OTHER ASSETS
OTHER ASSETS | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets, Unclassified [Abstract] | |
OTHER ASSETS | 6. OTHER ASSETS Other assets were comprised of the following as of June 30, 2024 and December 31, 2023. June 30, December 31, 2024 2023 (in thousands) Intangible assets, net of accumulated amortization of $1,511 and $164, respectively $ 1,326 $ 1,806 Accounts receivable, net 9,213 8,944 Prepaid property taxes 6,365 8,171 Prepaid insurance 400 4,879 Amounts due from affiliates (see note 15) 24,977 18,045 Assets related to deferred compensation arrangements 62,342 60,038 Right-of-use assets - operating leases 49,928 50,476 Ground lease receivable 6,220 6,193 Other 7,059 4,732 Total other assets, net $ 167,830 $ 163,284 |
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES | 6 Months Ended |
Jun. 30, 2024 | |
UNSECURED SENIOR NOTES | |
UNSECURED SENIOR NOTES | 7. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): June 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2024 2023 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 (9,322) (10,148) Less: Loan procurement costs, net (12,118) (13,362) Total unsecured senior notes, net $ 2,778,560 $ 2,776,490 (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 three and six months ended June 30, 2024, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 6 Months Ended |
Jun. 30, 2024 | |
REVOLVING CREDIT FACILITY | |
REVOLVING CREDIT FACILITY | 8. REVOLVING CREDIT FACILITY On October 26, 2022, the Company amended and restated, in its entirety, its unsecured revolving credit agreement (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 the Secured Overnight Financing Rate ("SOFR") plus a 0.10% SOFR adjustment. As of June 30, 2024, borrowings under the Revolver had an interest rate of 6.36%. Additionally, as of June 30, 2024, $838.8 million was available for borrowing under the Revolver. The available balance under the Revolver is reduced by an outstanding letter of credit of $0.6 million. Under the 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 three and six months ended June 30, 2024, the Operating Partnership was in compliance with all financial covenants of the Second Amended and Restated Credit Facility. |
MORTGAGE LOANS AND NOTES PAYABL
MORTGAGE LOANS AND NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2024 | |
MORTGAGE LOANS AND NOTES PAYABLE | |
MORTGAGE LOANS AND NOTES PAYABLE | 9. MORTGAGE LOANS AND NOTES PAYABLE The Company’s mortgage loans and notes payable are summarized as follows: Carrying Value as of June 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2024 2023 Interest Rate Date (in thousands) Annapolis I, MD (1) $ — $ 4,703 3.78 % May-24 Brooklyn XV, NY (1) — 14,746 2.15 % May-24 Long Island City IV, NY (1) — 11,946 2.15 % May-24 Long Island City II, NY 17,604 17,834 2.25 % Jul-26 Long Island City III, NY 17,607 17,839 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 89,511 121,368 Plus: Unamortized fair value adjustment 6,573 7,689 Less: Loan procurement costs, net (696) (871) Total mortgage loans and notes payable, net $ 95,388 $ 128,186 (1) These mortgage loans were repaid in full in May 2024. As of June 30, 2024 and December 31, 2023, the Company’s mortgage loans payable were secured by certain of its self-storage properties with net book values of approximately $235.5 million and $356.1 million, respectively. The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of June 30, 2024 (in thousands): 2024 $ 472 2025 979 2026 33,760 2027 — 2028 — 2029 54,300 Total principal payments $ 89,511 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Jun. 30, 2024 | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 10. ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss represents unrealized losses on interest rate swaps (see note 11). The following table summarizes the changes in accumulated other comprehensive loss for the six months ended June 30, 2024 (in thousands). June 30, 2024 (in thousands) Beginning balance at December 31, 2023 $ (413) Reclassification of realized losses on interest rate swaps (1) 40 Ending balance at June 30, 2024 (373) Less: portion included in noncontrolling interests in the Operating Partnership 2 Total accumulated other comprehensive loss included in equity $ (371) (1) See note 11 for additional information about the effects of the amounts reclassified. |
RISK MANAGEMENT AND USE OF FINA
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2024 | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 11. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS The Company is exposed to credit risk with regard to its cash accounts. The Company holds deposits at certain financial institutions in excess of Federal Deposit Insurance Corporation limits. The Company’s cash accounts are held with major financial institutions and management believes that the risk of loss due to disruption at these financial institutions is low. 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 within its consolidated statements of operations realized and unrealized gains and losses with respect to the derivative. As of June 30, 2024 and December 31, 2023, 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 Company’s consolidated balance sheets 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 twenty thousand dollars and forty thousand dollars of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during the three and six months ended June 30, 2024, respectively. The Company estimates that $0.1 million will be reclassified as an increase to interest expense in the next 12 months. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 12. FAIR VALUE MEASUREMENTS The Company applies the methods of determining fair value as described in authoritative guidance, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs, to the extent possible, as well as considering counterparty credit risk in its assessment of fair value. 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 June 30, 2024 and December 31, 2023. The following table summarizes the carrying value and estimated fair value of the Company’s debt as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Carrying value $ 2,884,548 $ 2,922,776 Fair value 2,570,862 2,631,221 The fair value of debt estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations at June 30, 2024 and December 31, 2023. The Company estimates the fair value of its fixed-rate debt and the credit spreads over variable market rates on its variable-rate debt by discounting the future cash flows of each instrument at estimated market rates or credit spreads consistent with the maturity of the debt obligation with similar credit policies, which is classified within level 2 of the fair value hierarchy. Rates and credit spreads take into consideration general market conditions and maturity. |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2024 | |
NONCONTROLLING INTERESTS | |
NONCONTROLLING INTERESTS | 13. NONCONTROLLING INTERESTS Interests in Consolidated Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated joint ventures. All consolidated joint ventures were formed to develop, own and operate new stores with the exception of Anoka (defined below), 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 June 30, 2024 Number Ownership Total Total Related Party Consolidated Joint Ventures of Stores Interest Assets Liabilities Loans (1) (in thousands) New Rochelle Investors, LLC ("New Rochelle") 1 70% $ 26,591 $ 3,132 $ 1,923 1074 Raritan Road, LLC ("Clark") 1 90% 15,471 9,511 8,949 350 Main Street, LLC ("Port Chester") 1 90% 6,268 54 — Astoria Investors, LLC ("Astoria") 1 70% 45,714 31,555 28,722 CS Lock Up Anoka, LLC ("Anoka") 1 50% 10,015 5,581 5,540 CS Valley Forge Village Storage, LLC ("VFV") 1 70% 18,929 14,878 14,792 CS Vienna, LLC ("Vienna") 1 80% 30,532 35,497 34,875 SH3, LLC ("SH3") 1 90% 36,508 330 — 8 $ 190,028 $ 100,538 $ 94,801 (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 As of June 30, 2024 and December 31, 2023, 1,238,205 and 1,300,462 OP units, respectively, were owned by third parties. The per unit cash redemption amount of the outstanding OP units owned by third parties was calculated based upon the closing price of the common shares of CubeSmart on the New York Stock Exchange on the final trading day of the quarter. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling 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 June 30, 2024 and December 31, 2023. The aggregate redemption value of the 1,238,205 OP Units owned by third parties as of June 30, 2024 was $55.9 million. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2024 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | 14. 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 $29.4 million, due in installments upon completion of certain construction milestones, during 2024 and 2025. 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. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2024 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS The Company provides management services to certain joint ventures and other related parties. Management agreements provide for fee income to the Company based on a percentage of revenues at the managed stores. Total management fees for unconsolidated real estate ventures or other entities in which the Company held an ownership interest totaled $1.2 million and $2.4 million for the three and six months ended June 30, 2024, respectively, compared to $1.2 million and $2.3 million, respectively, during the same periods in 2023. 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 $25.0 million and $18.0 million as of June 30, 2024 and December 31, 2023, respectively, and are included in Other assets, net on the consolidated balance sheets. Additionally, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $94.8 million and $86.3 million as of June 30, 2024 and December 31, 2023, 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. There were no such fees recognized during the three or six months ended June 30, 2024 or 2023. The Company serves as lessor in a ground lease related to land underlying an HVP IV property located in Texas. The Company recognized income associated with this ground lease of $0.1 million during each of the three-month periods ended June 30, 2024 and 2023 and of $0.2 million during each of the six-month periods ended June 30, 2024 and 2023. This income is included in the component of other (expense) income designated as Other within the Company’s consolidated statements of operations. |
EARNINGS PER SHARE AND UNIT AND
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 6 Months Ended |
Jun. 30, 2024 | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | |
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL | 16. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL Earnings per share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars and units in thousands, except per share amounts) Net income $ 94,186 $ 98,283 $ 189,044 $ 196,225 Net income attributable to noncontrolling interests in the Operating Partnership (524) (616) (1,065) (1,230) Net loss attributable to noncontrolling interests in subsidiaries 302 212 512 450 Net income attributable to the Company's common shareholders $ 93,964 $ 97,879 $ 188,491 $ 195,445 Weighted average basic shares outstanding 225,886 225,388 225,827 225,342 Share options and restricted share units 732 887 766 896 Weighted average diluted shares outstanding (1) 226,618 226,275 226,593 226,238 Basic earnings per share attributable to common shareholders $ 0.42 $ 0.43 $ 0.83 $ 0.87 Diluted earnings per share attributable to common shareholders (2) $ 0.41 $ 0.43 $ 0.83 $ 0.86 Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and OP units owned by third parties have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average outstanding OP units owned by third parties were 1.3 million for both the three and six months ended June 30, 2024 compared to 1.4 million for both the three and six months ended June 30, 2023. Earnings per unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per unit: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars and units in thousands, except per unit amounts) Net income $ 94,186 $ 98,283 $ 189,044 $ 196,225 Net loss attributable to noncontrolling interests in subsidiaries 302 212 512 450 Net income attributable to CubeSmart, L.P. $ 94,488 $ 98,495 $ 189,556 $ 196,675 Weighted average basic units outstanding (3) 227,145 226,807 227,101 226,763 Unit options and restricted share units 732 887 766 896 Weighted average diluted units outstanding (1) (3) 227,877 227,694 227,867 227,659 Basic earnings per unit attributable to CubeSmart, L.P. $ 0.42 $ 0.43 $ 0.83 $ 0.87 Diluted earnings per unit attributable to CubeSmart, L.P. (2) $ 0.41 $ 0.43 $ 0.83 $ 0.86 (1) For the three and six months ended June 30, 2024, the Company declared cash dividends per common share/unit of $0.51 and $1.02 , respectively. For the three and six months ended June 30, 2023, the Company declared cash dividends per common share/unit of $0.49 and $0.98 , respectively. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit were 1.1 million for both the three and six months ended June 30, 2024 and 0.7 million for both the three and six months ended June 30, 2023. (3) Prior period amounts have been updated to conform to current year presentation. The OP Units owned by the General Partner and the OP Units owned by third parties have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. OP Units owned by third parties may be redeemed for cash or, at the Company’s option, common shares of CubeSmart on a one-for-one basis. The following is a summary of OP Units outstanding: As of June 30, 2024 2023 Outstanding OP Units owned by third parties 1,238,205 1,418,549 Outstanding OP Units owned by the General Partner 225,196,862 224,797,239 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Trading Arrangements During the three months ended June 30, 2024, none of our trustees or officers (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933, as amended) except as follows: On April 29, 2024 , Jeffrey P. Foster , our Chief Legal Officer , adopted a trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) for the sale of up to 7,739 shares of our common stock from August 5, 2024 to January 22, 2025. |
Jeffrey P. Foster [Member] | |
Trading Arrangements, by Individual | |
Name | Jeffrey P. Foster |
Title | Chief Legal Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | Apr. 29, 2024 |
Aggregate Available | 7,739 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s combined audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2023, which are included in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the fiscal year ended December 31, 2023 The Operating Partnership meets the criteria as a variable interest entity (“VIE”). The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership, and the Parent Company guarantees the unsecured debt obligations of the Operating Partnership. |
Reclassifications | Reclassifications Certain amounts within the Company’s and the Operating Partnership’s unaudited consolidated financial statements have been reclassified in prior years to conform to the current year presentation. |
Recent Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amended guidance requires the disclosure of incremental segment information, including significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and a reconciliation of segment profit or loss to net income. The title and position of the CODM must also be disclosed, along with how the CODM uses the reported measures to assess segment performance and to allocate resources. Entities with a single reportable segment (such as the Company) will be required to provide the disclosures required by Topic 280, as amended. The standard became effective for the Company on January 1, 2024 and the required disclosures for the Company will begin with its Annual Report on Form 10-K for the fiscal year ending December 31, 2024. The adoption and implementation of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
STORAGE PROPERTIES (Tables)
STORAGE PROPERTIES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
STORAGE PROPERTIES | |
Summary of real estate assets | June 30, December 31, 2024 2023 (in thousands) Land $ 1,616,167 $ 1,594,742 Buildings and improvements 5,579,096 5,517,544 Equipment 143,283 144,372 Construction in progress 34,935 69,010 Right-of-use assets - finance leases 41,945 41,945 Storage properties 7,415,426 7,367,613 Less: Accumulated depreciation (1,503,487) (1,416,377) Storage properties, net $ 5,911,939 $ 5,951,236 |
Schedule of acquisitions and dispositions of real estate assets | The following table summarizes the Company’s acquisition and disposition activity since January 1, 2023. Number of Transaction Price Asset/Portfolio Metropolitan Statistical Area Transaction Date Stores (in thousands) 2024 Acquisitions: Connecticut Assets Hartford-West Hartford-East Hartford, CT January 2024 2 $ 20,200 2 $ 20,200 2023 Acquisition: New Jersey Asset New York-Northern New Jersey-Long Island, NY-NJ-PA December 2023 1 $ 22,000 1 $ 22,000 2023 Disposition: Illinois Asset (1) Chicago-Naperville-Joliet, IL-IN-WI December 2023 1 $ 8,000 1 $ 8,000 |
INVESTMENT ACTIVITY (Tables)
INVESTMENT ACTIVITY (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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) Astoria, NY 1 Q2 2024 70% $ 45,900 Clark, NJ 1 Q2 2024 90% 15,900 2 $ 61,800 |
INVESTMENT IN UNCONSOLIDATED _2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | |
Schedule of investments in 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 June 30, December 31, June 30, December 31, Unconsolidated Real Estate Ventures Interest 2024 2023 2024 2023 Fontana Self Storage, LLC ("Fontana") (1) 50% 1 1 $ 13,387 $ 13,575 Rancho Cucamonga Self Storage, LLC ("RCSS") (1) 50% 1 1 20,420 20,679 191 V CUBE LLC ("HVP V") 20% 6 6 12,099 12,759 191 IV CUBE LLC ("HVP IV") 20% 28 28 15,672 17,085 CUBE HHF Northeast Venture LLC ("HHFNE") 10% 13 13 864 951 CUBE HHF Limited Partnership ("HHF") 50% 28 28 31,611 33,239 77 77 $ 94,053 $ 98,288 (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. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. As of June 30, 2024, the remaining unamortized difference was $12.6 million for Fontana and $18.8 million for RCSS. |
Summary of the financial position of the ventures | June 30, December 31, 2024 2023 Assets (in thousands) Storage properties, net $ 695,559 $ 715,142 Other assets 19,488 10,382 Total assets $ 715,047 $ 725,524 Liabilities and equity Debt $ 471,468 $ 470,573 Other liabilities 21,778 18,557 Equity CubeSmart 62,642 66,446 Joint venture partners 159,159 169,948 Total liabilities and equity $ 715,047 $ 725,524 |
Summary of results of operations of the ventures | Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (in thousands) Total revenues $ 24,840 $ 24,555 $ 49,426 $ 48,619 Operating expenses (10,540) (10,545) (20,915) (21,064) Other expenses (111) (180) (217) (248) Interest expense, net (6,576) (4,425) (11,234) (8,508) Depreciation and amortization (7,408) (7,676) (14,940) (15,447) Net income $ 205 $ 1,729 $ 2,120 $ 3,352 Company’s share of net income $ 425 $ 790 $ 1,270 $ 3,341 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Assets, Unclassified [Abstract] | |
Schedule of other assets | June 30, December 31, 2024 2023 (in thousands) Intangible assets, net of accumulated amortization of $1,511 and $164, respectively $ 1,326 $ 1,806 Accounts receivable, net 9,213 8,944 Prepaid property taxes 6,365 8,171 Prepaid insurance 400 4,879 Amounts due from affiliates (see note 15) 24,977 18,045 Assets related to deferred compensation arrangements 62,342 60,038 Right-of-use assets - operating leases 49,928 50,476 Ground lease receivable 6,220 6,193 Other 7,059 4,732 Total other assets, net $ 167,830 $ 163,284 |
UNSECURED SENIOR NOTES (Tables)
UNSECURED SENIOR NOTES (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Senior Notes | |
Summary of debt | June 30, December 31, Effective Issuance Maturity Unsecured Senior Notes 2024 2023 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 (9,322) (10,148) Less: Loan procurement costs, net (12,118) (13,362) Total unsecured senior notes, net $ 2,778,560 $ 2,776,490 (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 | 6 Months Ended |
Jun. 30, 2024 | |
Summary of debt | Carrying Value as of June 30, December 31, Effective Maturity Mortgage Loans and Notes Payable 2024 2023 Interest Rate Date (in thousands) Annapolis I, MD (1) $ — $ 4,703 3.78 % May-24 Brooklyn XV, NY (1) — 14,746 2.15 % May-24 Long Island City IV, NY (1) — 11,946 2.15 % May-24 Long Island City II, NY 17,604 17,834 2.25 % Jul-26 Long Island City III, NY 17,607 17,839 2.25 % Aug-26 Flushing II, NY 54,300 54,300 2.15 % Jul-29 Principal balance outstanding 89,511 121,368 Plus: Unamortized fair value adjustment 6,573 7,689 Less: Loan procurement costs, net (696) (871) Total mortgage loans and notes payable, net $ 95,388 $ 128,186 (1) These mortgage loans were repaid in full in May 2024. |
Schedule of the future principal payment requirements on the outstanding mortgage loans and notes payable | The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of June 30, 2024 (in thousands): 2024 $ 472 2025 979 2026 33,760 2027 — 2028 — 2029 54,300 Total principal payments $ 89,511 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 11). The following table summarizes the changes in accumulated other comprehensive loss for the six months ended June 30, 2024 (in thousands). June 30, 2024 (in thousands) Beginning balance at December 31, 2023 $ (413) Reclassification of realized losses on interest rate swaps (1) 40 Ending balance at June 30, 2024 (373) Less: portion included in noncontrolling interests in the Operating Partnership 2 Total accumulated other comprehensive loss included in equity $ (371) (1) See note 11 for additional information about the effects of the amounts reclassified. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
FAIR VALUE MEASUREMENTS | |
Schedule of financial assets and liabilities carried at fair value | June 30, 2024 December 31, 2023 (in thousands) Carrying value $ 2,884,548 $ 2,922,776 Fair value 2,570,862 2,631,221 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
NONCONTROLLING INTERESTS | |
Schedule of noncontrolling interests in subsidiaries | CubeSmart June 30, 2024 Number Ownership Total Total Related Party Consolidated Joint Ventures of Stores Interest Assets Liabilities Loans (1) (in thousands) New Rochelle Investors, LLC ("New Rochelle") 1 70% $ 26,591 $ 3,132 $ 1,923 1074 Raritan Road, LLC ("Clark") 1 90% 15,471 9,511 8,949 350 Main Street, LLC ("Port Chester") 1 90% 6,268 54 — Astoria Investors, LLC ("Astoria") 1 70% 45,714 31,555 28,722 CS Lock Up Anoka, LLC ("Anoka") 1 50% 10,015 5,581 5,540 CS Valley Forge Village Storage, LLC ("VFV") 1 70% 18,929 14,878 14,792 CS Vienna, LLC ("Vienna") 1 80% 30,532 35,497 34,875 SH3, LLC ("SH3") 1 90% 36,508 330 — 8 $ 190,028 $ 100,538 $ 94,801 (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. |
EARNINGS PER SHARE AND UNIT A_2
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 share and shareholders’ equity The following is a summary of the elements used in calculating basic and diluted earnings per share: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars and units in thousands, except per share amounts) Net income $ 94,186 $ 98,283 $ 189,044 $ 196,225 Net income attributable to noncontrolling interests in the Operating Partnership (524) (616) (1,065) (1,230) Net loss attributable to noncontrolling interests in subsidiaries 302 212 512 450 Net income attributable to the Company's common shareholders $ 93,964 $ 97,879 $ 188,491 $ 195,445 Weighted average basic shares outstanding 225,886 225,388 225,827 225,342 Share options and restricted share units 732 887 766 896 Weighted average diluted shares outstanding (1) 226,618 226,275 226,593 226,238 Basic earnings per share attributable to common shareholders $ 0.42 $ 0.43 $ 0.83 $ 0.87 Diluted earnings per share attributable to common shareholders (2) $ 0.41 $ 0.43 $ 0.83 $ 0.86 Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and OP units owned by third parties have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average outstanding OP units owned by third parties were 1.3 million for both the three and six months ended June 30, 2024 compared to 1.4 million for both the three and six months ended June 30, 2023. Earnings per unit and capital The following is a summary of the elements used in calculating basic and diluted earnings per unit: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (dollars and units in thousands, except per unit amounts) Net income $ 94,186 $ 98,283 $ 189,044 $ 196,225 Net loss attributable to noncontrolling interests in subsidiaries 302 212 512 450 Net income attributable to CubeSmart, L.P. $ 94,488 $ 98,495 $ 189,556 $ 196,675 Weighted average basic units outstanding (3) 227,145 226,807 227,101 226,763 Unit options and restricted share units 732 887 766 896 Weighted average diluted units outstanding (1) (3) 227,877 227,694 227,867 227,659 Basic earnings per unit attributable to CubeSmart, L.P. $ 0.42 $ 0.43 $ 0.83 $ 0.87 Diluted earnings per unit attributable to CubeSmart, L.P. (2) $ 0.41 $ 0.43 $ 0.83 $ 0.86 (1) For the three and six months ended June 30, 2024, the Company declared cash dividends per common share/unit of $0.51 and $1.02 , respectively. For the three and six months ended June 30, 2023, the Company declared cash dividends per common share/unit of $0.49 and $0.98 , respectively. (2) The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit were 1.1 million for both the three and six months ended June 30, 2024 and 0.7 million for both the three and six months ended June 30, 2023. (3) Prior period amounts have been updated to conform to current year presentation. |
Summary of OP units outstanding | As of June 30, 2024 2023 Outstanding OP Units owned by third parties 1,238,205 1,418,549 Outstanding OP Units owned by the General Partner 225,196,862 224,797,239 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 6 Months Ended |
Jun. 30, 2024 state segment | |
Number of states in which self-storage facilities are located | state | 24 |
Number of reportable segments | segment | 1 |
Common stock, conversion ratio | 1 |
Cubesmart | |
Percentage of the entity's partnership interest in Operating Partnership | 99.50% |
STORAGE PROPERTIES - Summary (D
STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
STORAGE FACILITIES | ||
Storage properties | $ 7,415,426 | $ 7,367,613 |
Less: Accumulated depreciation | (1,503,487) | (1,416,377) |
Storage properties, net | 5,911,939 | 5,951,236 |
Land | ||
STORAGE FACILITIES | ||
Storage properties | 1,616,167 | 1,594,742 |
Buildings and improvements | ||
STORAGE FACILITIES | ||
Storage properties | 5,579,096 | 5,517,544 |
Equipment | ||
STORAGE FACILITIES | ||
Storage properties | 143,283 | 144,372 |
Construction in progress | ||
STORAGE FACILITIES | ||
Storage properties | 34,935 | 69,010 |
Right-of-use assets - finance leases | ||
STORAGE FACILITIES | ||
Storage properties | $ 41,945 | $ 41,945 |
STORAGE PROPERTIES - Activity (
STORAGE PROPERTIES - Activity (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 USD ($) facility | Dec. 31, 2023 USD ($) facility | |
2023 Acquisitions | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 22,000 | |
2023 Acquisitions | New Jersey Asset December 2023 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 1 | |
Purchase Price | $ 22,000 | |
2024 Acquisitions | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 2 | |
Purchase Price | $ 20,200 | |
2024 Acquisitions | Connecticut Assets January 2024 | ||
STORAGE FACILITIES | ||
Number of Facilities, acquisitions (in properties) | facility | 2 | |
Purchase Price | $ 20,200 | |
2023 Dispositions | ||
STORAGE FACILITIES | ||
Number of Facilities, dispositions (in properties) | facility | 1 | |
Sale Price | $ 8,000 | |
2023 Dispositions | Illinois Asset December 2023 | ||
STORAGE FACILITIES | ||
Number of Facilities, dispositions (in properties) | facility | 1 | |
Sale Price | $ 8,000 | |
LAACO | 2023 Dispositions | ||
STORAGE FACILITIES | ||
Sale Price | $ 800 |
INVESTMENT ACTIVITY (Details)
INVESTMENT ACTIVITY (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | 18 Months Ended | ||
Aug. 31, 2023 USD ($) | Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) facility | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) facility | Jun. 30, 2024 USD ($) property facility | |
Self storage under construction | |||||||
Self-storage facilities | |||||||
Number of self-storage facilities | facility | 2 | 2 | 2 | ||||
Development costs | $ 16,800 | $ 16,800 | $ 16,800 | ||||
Expected construction cost | 45,700 | $ 45,700 | $ 45,700 | ||||
Self Storage Facilities in New York and New Jersey | |||||||
Self-storage facilities | |||||||
Number of stores | property | 2 | ||||||
2024 Acquisitions | |||||||
Self-storage facilities | |||||||
Number of self-storage facilities acquired | facility | 2 | ||||||
Aggregate purchase price | $ 20,200 | ||||||
Intangible value of the in-place leases | $ 900 | $ 900 | $ 900 | ||||
Estimated life | 12 months | 12 months | 12 months | ||||
Amortization expense | $ 200 | $ 400 | |||||
Purchase Price | $ 20,200 | ||||||
2023 Acquisitions | |||||||
Self-storage facilities | |||||||
Number of self-storage facilities acquired | facility | 1 | ||||||
Aggregate purchase price | $ 22,000 | ||||||
Intangible value of the in-place leases | 2,000 | ||||||
Estimated life | 12 months | 12 months | 12 months | ||||
Amortization expense | $ 500 | $ 0 | $ 1,000 | $ 0 | |||
Purchase Price | $ 22,000 | ||||||
2023 Acquisitions | New Jersey | |||||||
Self-storage facilities | |||||||
Number of self-storage facilities acquired | facility | 1 | ||||||
2023 Dispositions | |||||||
Self-storage facilities | |||||||
Aggregate sale price | $ 8,000 | ||||||
2023 Dispositions | LAACO | |||||||
Self-storage facilities | |||||||
Aggregate sale price | 800 | ||||||
Gain (loss) from sale of real estate | $ (200) | ||||||
2023 Dispositions | Illinois | |||||||
Self-storage facilities | |||||||
Proceeds from involuntary conversion, net | 8,000 | ||||||
Gain on involuntary conversion, net | $ (4,800) | ||||||
Cubesmart | |||||||
Self-storage facilities | |||||||
Ownership interest by Parent | 99.50% | 99.50% | 99.50% |
INVESTMENT ACTIVITY - Company's
INVESTMENT ACTIVITY - Company's consolidated balance sheets (Details) $ in Thousands | 18 Months Ended |
Jun. 30, 2024 USD ($) property segment | |
STORAGE FACILITIES | |
Number of joint ventures | segment | 2 |
Astoria, NY | |
STORAGE FACILITIES | |
Number of stores | property | 1 |
CubeSmart Ownership Interest | 70% |
Total Construction Costs | $ | $ 45,900 |
Clark, NJ | |
STORAGE FACILITIES | |
Number of stores | property | 1 |
CubeSmart Ownership Interest | 90% |
Total Construction Costs | $ | $ 15,900 |
NY and NJ | |
STORAGE FACILITIES | |
Number of stores | property | 2 |
Total Construction Costs | $ | $ 61,800 |
INVESTMENT IN UNCONSOLIDATED _3
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Aug. 30, 2022 USD ($) facility | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) property | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) property | Dec. 09, 2021 facility | |
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 94,053 | $ 94,053 | $ 98,288 | ||||
Acquisitions of storage facilities | 20,147 | ||||||
Investments in real estate ventures | (310) | $ (10) | |||||
Credit facility, outstanding | 10,600 | 10,600 | 18,100 | ||||
Principal amount of debt | 2,800,000 | 2,800,000 | 2,800,000 | ||||
Total liabilities | 3,337,110 | 3,337,110 | 3,344,212 | ||||
ASSETS | |||||||
Storage facilities, net | 5,911,939 | 5,911,939 | 5,951,236 | ||||
Total assets | 6,184,456 | 6,184,456 | 6,225,020 | ||||
Equity | |||||||
CubeSmart | 2,770,094 | 2,770,094 | 2,798,828 | ||||
Joint venture partners | 21,322 | 21,322 | 21,704 | ||||
Total liabilities and equity | 6,184,456 | 6,184,456 | 6,225,020 | ||||
Total revenues | 266,209 | $ 260,805 | 527,615 | 517,333 | |||
Net income | 94,186 | 98,283 | 189,044 | 196,225 | |||
Company's share of net income (loss) | 425 | 790 | $ 1,270 | 3,341 | |||
HVPSE | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Ownership interest held by the entity (as a percent) | 10% | ||||||
Number of assets sold | facility | 14 | ||||||
Aggregate amount of sale price of real estate property | $ 235,000 | ||||||
Proceeds from venture related to real estate contribution | 1,700 | ||||||
ASSETS | |||||||
Total assets | 0 | $ 0 | |||||
Ventures | |||||||
ASSETS | |||||||
Storage facilities, net | 695,559 | 695,559 | 715,142 | ||||
Other assets | 19,488 | 19,488 | 10,382 | ||||
Total assets | 715,047 | 715,047 | 725,524 | ||||
LIABILITIES AND CAPITAL | |||||||
Debt | 471,468 | 471,468 | 470,573 | ||||
Other liabilities | 21,778 | 21,778 | 18,557 | ||||
Equity | |||||||
CubeSmart | 62,642 | 62,642 | 66,446 | ||||
Joint venture partners | 159,159 | 159,159 | 169,948 | ||||
Total liabilities and equity | 715,047 | 715,047 | 725,524 | ||||
Total revenues | 24,840 | 24,555 | 49,426 | 48,619 | |||
Operating expenses | (10,540) | (10,545) | (20,915) | (21,064) | |||
Other income (expenses) | (111) | (180) | (217) | (248) | |||
Interest expense, net | (6,576) | (4,425) | (11,234) | (8,508) | |||
Depreciation and amortization | (7,408) | (7,676) | (14,940) | (15,447) | |||
Net income | 205 | 1,729 | 2,120 | 3,352 | |||
Ventures | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 94,053 | $ 94,053 | $ 98,288 | ||||
Number of storage facilities owned by investee | property | 77 | 77 | 77 | ||||
Equity | |||||||
Company's share of net income (loss) | $ 425 | $ 790 | $ 1,270 | $ 3,341 | |||
Fontana | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 13,387 | $ 13,387 | $ 13,575 | ||||
Ownership interest in partnership (as a percent) | 50% | 50% | 50% | ||||
Equity method investment, difference between carrying amount and underlying equity | $ 12,600 | $ 12,600 | |||||
Number of storage facilities owned by investee | 1 | 1 | 1 | 1 | |||
RCSS | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 20,420 | $ 20,420 | $ 20,679 | ||||
Ownership interest in partnership (as a percent) | 50% | 50% | 50% | ||||
Equity method investment, difference between carrying amount and underlying equity | $ 18,800 | $ 18,800 | |||||
Number of storage facilities owned by investee | property | 1 | 1 | 1 | ||||
HVP V | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 12,099 | $ 12,099 | $ 12,759 | ||||
Ownership interest in partnership (as a percent) | 20% | 20% | |||||
Number of storage facilities owned by investee | property | 6 | 6 | 6 | ||||
HVP IV | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 15,672 | $ 15,672 | $ 17,085 | ||||
Ownership interest in partnership (as a percent) | 20% | 20% | |||||
Number of storage facilities owned by investee | property | 28 | 28 | 28 | ||||
HHFNE | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 864 | $ 864 | $ 951 | ||||
Ownership interest in partnership (as a percent) | 10% | 10% | |||||
Number of storage facilities owned by investee | property | 13 | 13 | 13 | ||||
HHF | |||||||
Investment in Unconsolidated Real Estate Venture | |||||||
Investment in real estate entities | $ 31,611 | $ 31,611 | $ 33,239 | ||||
Ownership interest in partnership (as a percent) | 50% | 50% | |||||
Number of storage facilities owned by investee | property | 28 | 28 | 28 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $1,511 and $164, respectively | $ 1,326 | $ 1,806 |
Accounts receivable, net | 9,213 | 8,944 |
Prepaid property taxes | 6,365 | 8,171 |
Prepaid insurance | 400 | 4,879 |
Amounts due from affiliates (see note 15) | 24,977 | 18,045 |
Assets related to deferred compensation arrangements | 62,342 | 60,038 |
Right-of-use assets - operating leases | 49,928 | 50,476 |
Ground lease receivable | 6,220 | 6,193 |
Other | 7,059 | 4,732 |
Total | 167,830 | 163,284 |
Accumulated amortization | $ 1,511 | $ 164 |
UNSECURED SENIOR NOTES (Details
UNSECURED SENIOR NOTES (Details) $ in Thousands | 6 Months Ended | ||||
Apr. 04, 2017 USD ($) | Oct. 26, 2015 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jan. 24, 2019 USD ($) | |
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 2,800,000 | $ 2,800,000 | |||
Total unsecured senior notes, net | 2,778,560 | 2,776,490 | |||
CubeSmart, L.P. and Subsidiaries | |||||
Mortgage loans and Notes payable | |||||
Total unsecured senior notes, net | 2,778,560 | 2,776,490 | |||
Senior Notes | |||||
Mortgage loans and Notes payable | |||||
Less: Discount on issuance of notes, net | (9,322) | (10,148) | |||
Less: Loan procurement costs, net | (12,118) | (13,362) | |||
Total unsecured senior notes, net | $ 2,778,560 | 2,776,490 | |||
Senior Notes | Maximum | |||||
Mortgage loans and Notes payable | |||||
Consolidated leverage ratio | 0.60 | ||||
Secured debt leverage ratio | 0.40 | ||||
Senior Notes | Minimum | |||||
Mortgage loans and Notes payable | |||||
Consolidated interest coverage ratio | 1.50 | ||||
Financial and customary covenant, minimum unencumbered asset (as a percent) | 150% | ||||
Senior notes 4.000% due 2025 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 50,000 | $ 250,000 | $ 300,000 | 300,000 | |
Interest rate (as a percent) | 4% | 4% | 4% | ||
Effective interest rate (as a percent) | 3.811% | 4.032% | 3.99% | ||
Effective weighted average interest rate (as a percent) | 3.994% | ||||
Proceeds from senior notes | $ 50,000 | $ 250,000 | |||
Debt instrument, redemption percentage | 101.343% | 99.735% | |||
Senior Notes 3.125% Due 2026 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 300,000 | 300,000 | |||
Interest rate (as a percent) | 3.125% | ||||
Effective interest rate (as a percent) | 3.18% | ||||
Senior Notes 2.250 % Due 2028 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 550,000 | 550,000 | |||
Interest rate (as a percent) | 2.25% | ||||
Effective interest rate (as a percent) | 2.33% | ||||
Senior Notes 4.375 % Due 2029 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 350,000 | 350,000 | $ 300,000 | ||
Interest rate (as a percent) | 4.375% | 4.375% | |||
Effective interest rate (as a percent) | 4.46% | ||||
Senior Notes 3.000 % Due 2030 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 350,000 | 350,000 | |||
Interest rate (as a percent) | 3% | ||||
Effective interest rate (as a percent) | 3.04% | ||||
Senior Notes 2.000 % Due 2031 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 450,000 | 450,000 | |||
Interest rate (as a percent) | 2% | ||||
Effective interest rate (as a percent) | 2.10% | ||||
Senior Notes 2.500 % Due 2032 | |||||
Mortgage loans and Notes payable | |||||
Senior notes, principal amount | $ 500,000 | $ 500,000 | |||
Interest rate (as a percent) | 2.50% | ||||
Effective interest rate (as a percent) | 2.59% |
REVOLVING CREDIT FACILITY (Deta
REVOLVING CREDIT FACILITY (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Oct. 26, 2022 | |
Revolver | ||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ||
Effective weighted average interest rate (as a percent) | 6.36% | |
Remaining borrowing capacity | $ 838.8 | |
Outstanding letter of credit | $ 0.6 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Mortgage loans and Notes payable | ||
Total mortgage loans and notes payable | $ 95,388 | $ 128,186 |
Net book value of self-storage facilities | 5,911,939 | 5,951,236 |
Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | 89,511 | 121,368 |
Plus: Unamortized fair value adjustment | 6,573 | 7,689 |
Less: Loan procurement costs, net | (696) | (871) |
Total mortgage loans and notes payable | 95,388 | 128,186 |
Net book value of self-storage facilities | $ 235,500 | 356,100 |
Annapolis I, MD | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | 4,703 | |
Effective interest rate (as a percent) | 3.78% | |
Brooklyn XV, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | 14,746 | |
Effective interest rate (as a percent) | 2.15% | |
Long Island City IV, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | 11,946 | |
Effective interest rate (as a percent) | 2.15% | |
Long Island City II, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 17,604 | 17,834 |
Effective interest rate (as a percent) | 2.25% | |
Long Island City III, NY | Mortgage Loans | ||
Mortgage loans and Notes payable | ||
Carrying value | $ 17,607 | 17,839 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
Total mortgage loans and notes payable, net | $ 95,388 | $ 128,186 |
Mortgage Loans | ||
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ||
2024 | 472 | |
2025 | 979 | |
2026 | 33,760 | |
2029 | 54,300 | |
Total mortgage payments | 89,511 | 121,368 |
Plus: Unamortized fair value adjustment | 6,573 | 7,689 |
Less: Loan procurement costs, net | (696) | (871) |
Total mortgage loans and notes payable, net | $ 95,388 | $ 128,186 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 2,803,786 | $ 2,821,596 | $ 2,820,532 | $ 2,840,381 |
Reclassification of realized losses on interest rate swaps | 20 | 20 | 40 | 40 |
Balance | 2,791,416 | 2,815,634 | 2,791,416 | 2,815,634 |
Unrealized losses on interest rate swaps | ||||
Changes in accumulated other comprehensive income by component | ||||
Reclassification of realized losses on interest rate swaps | 40 | |||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (413) | |||
Balance | (373) | (373) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | (391) | (471) | (411) | (491) |
Balance | (371) | $ (451) | (371) | $ (451) |
AOCI Attributable to Noncontrolling Interest | ||||
Changes in accumulated other comprehensive income by component | ||||
Balance | $ 2 | $ 2 |
RISK MANAGEMENT AND USE OF FI_2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jan. 24, 2019 | Jun. 30, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 24, 2018 | |
Derivative financial instruments | |||||
Senior notes, principal amount | $ 2,800,000 | $ 2,800,000 | $ 2,800,000 | ||
Unrealized losses from accumulated other comprehensive loss as an increase to interest expense | 20 | 40 | |||
Increase to interest expense | 100 | ||||
Interest rate swap | |||||
Derivative financial instruments | |||||
Notional Amount | $ 150,000 | ||||
Accumulated other comprehensive loss | $ 800 | ||||
Senior Notes 4.375 % Due 2029 | |||||
Derivative financial instruments | |||||
Senior notes, principal amount | $ 300,000 | $ 350,000 | $ 350,000 | $ 350,000 | |
Interest rate (as a percent) | 4.375% | 4.375% | 4.375% | ||
Designated as an accounting hedge | Cash flow | |||||
Derivative financial instruments | |||||
Settlement of hedge transactions | $ 800 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Level 2 - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair value of financial assets and liabilities carried at fair value | ||
Carrying value | $ 2,884,548 | $ 2,922,776 |
Fair value | $ 2,570,862 | $ 2,631,221 |
NONCONTROLLING INTERESTS - Inte
NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 USD ($) facility | Dec. 31, 2023 USD ($) | |
Variable Interest Entity [Line Items] | ||
Total assets | $ 6,184,456 | $ 6,225,020 |
Total liabilities | $ 3,337,110 | $ 3,344,212 |
VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 8 | |
Total assets | $ 190,028 | |
Total liabilities | 100,538 | |
Related Party Loans | $ 94,801 | |
New Rochelle Investors LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 70% | |
Total assets | $ 26,591 | |
Total liabilities | 3,132 | |
Related Party Loans | $ 1,923 | |
1074 Raritan Road, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 90% | |
Total assets | $ 15,471 | |
Total liabilities | 9,511 | |
Related Party Loans | $ 8,949 | |
350 Main Street, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 90% | |
Total assets | $ 6,268 | |
Total liabilities | $ 54 | |
Astoria Investors, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 70% | |
Total assets | $ 45,714 | |
Total liabilities | 31,555 | |
Related Party Loans | $ 28,722 | |
CS Vienna LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 80% | |
Total assets | $ 30,532 | |
Total liabilities | 35,497 | |
Related Party Loans | $ 34,875 | |
CS Valley Forge Village Storage LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 70% | |
Total assets | $ 18,929 | |
Total liabilities | 14,878 | |
Related Party Loans | $ 14,792 | |
SH3, LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 90% | |
Total assets | $ 36,508 | |
Total liabilities | $ 330 | |
C S Lock Up Anoka LLC | VIE | ||
Variable Interest Entity [Line Items] | ||
Number of Stores | facility | 1 | |
CubeSmart Ownership Interest | 50% | |
Total assets | $ 10,015 | |
Total liabilities | 5,581 | |
Related Party Loans | $ 5,540 |
NONCONTROLLING INTERESTS - Oper
NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) - CubeSmart, L.P. and Subsidiaries - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Operating Partnership Ownership | |||
Outstanding units of noncontrolling interest in the Operating Partnership (in shares) | 1,238,205 | 1,300,462 | 1,418,549 |
Redemption value of OP units owned by third parties | $ 55.9 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Insurance Recovery (Details) $ in Millions | Jun. 30, 2024 USD ($) facility |
COMMITMENTS AND CONTINGENCIES | |
Number of self-storage units under development | facility | 2 |
Future milestone payments | $ | $ 29.4 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |||||
Amounts due from affiliates (see note 15) | $ 24,977 | $ 24,977 | $ 18,045 | ||
Acquisition fees | 0 | $ 0 | 0 | $ 0 | |
Related party lease agreements | |||||
RELATED PARTY TRANSACTIONS | |||||
Ground lease income | 100 | 100 | 200 | 200 | |
Joint ventures related to affiliated real estate investments | |||||
RELATED PARTY TRANSACTIONS | |||||
Management fees | 1,200 | $ 1,200 | 2,400 | $ 2,300 | |
Amounts due from affiliates (see note 15) | 25,000 | 25,000 | 18,000 | ||
Mortgage loans receivable from consolidated joint ventures | $ 94,800 | $ 94,800 | $ 86,300 |
EARNINGS PER SHARE AND UNIT A_3
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Earnings Per Share and Unit (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Basic and diluted earnings per common share | |||||||
Net income | $ 94,186 | $ 98,283 | $ 189,044 | $ 196,225 | |||
Net income attributable to noncontrolling interests in the Operating Partnership | (524) | (616) | (1,065) | (1,230) | |||
Net loss attributable to noncontrolling interests in subsidiaries | 302 | 212 | 512 | 450 | |||
NET INCOME ATTRIBUTABLE TO THE COMPANY | $ 93,964 | $ 97,879 | $ 188,491 | $ 195,445 | |||
Weighted average basic shares outstanding (in shares) | 225,886,000 | 225,388,000 | 225,827,000 | 225,342,000 | |||
Share options and restricted share units (in shares) | 732,000 | 887,000 | 766,000 | 896,000 | |||
Weighted-average diluted shares outstanding (in shares) | 226,618,000 | 226,275,000 | 226,593,000 | 226,238,000 | |||
Basic earnings per share attributable to common shareholders (in dollars per share) | $ 0.42 | $ 0.43 | $ 0.83 | $ 0.87 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 | |||
Basic and diluted earnings per common unit | |||||||
Weighted average basic shares outstanding (in shares) | 225,886,000 | 225,388,000 | 225,827,000 | 225,342,000 | |||
Share options and restricted share units (in shares) | 732,000 | 887,000 | 766,000 | 896,000 | |||
Weighted-average diluted shares outstanding (in shares) | 226,618,000 | 226,275,000 | 226,593,000 | 226,238,000 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 | |||
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 1,100,000 | 700,000 | 1,100,000 | 700,000 | |||
Common stock, cash dividends declared (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.49 | $ 0.49 | $ 1.02 | $ 0.98 | |
Operating Partnership [Member] | |||||||
Basic and diluted earnings per common unit | |||||||
Potentially dilutive shares not included in the earnings per share calculation as their effect is antidilutive (in shares) | 1,300,000 | 1,400,000 | 1,300,000 | 1,400,000 | |||
CubeSmart, L.P. and Subsidiaries | |||||||
Basic and diluted earnings per common share | |||||||
Net income | $ 189,044 | $ 196,225 | |||||
Weighted average basic shares outstanding (in shares) | 227,145,000 | 226,807,000 | 227,101,000 | 226,763,000 | |||
Share options and restricted share units (in shares) | 732,000 | 887,000 | 766,000 | 896,000 | |||
Weighted-average diluted shares outstanding (in shares) | 227,877,000 | 227,694,000 | 227,867,000 | 227,659,000 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 | |||
Basic and diluted earnings per common unit | |||||||
Net Income | $ 94,186 | $ 98,283 | $ 189,044 | $ 196,225 | |||
Net loss attributable to noncontrolling interest in subsidiaries | 302 | 212 | 512 | 450 | |||
Net income attributable to CubeSmart L.P. | $ 94,488 | $ 98,495 | $ 189,556 | $ 196,675 | |||
Weighted average basic shares outstanding (in shares) | 227,145,000 | 226,807,000 | 227,101,000 | 226,763,000 | |||
Share options and restricted share units (in shares) | 732,000 | 887,000 | 766,000 | 896,000 | |||
Weighted-average diluted shares outstanding (in shares) | 227,877,000 | 227,694,000 | 227,867,000 | 227,659,000 | |||
Basic earnings per unit attributable to common unitholders (in dollars per share) | $ 0.42 | $ 0.43 | $ 0.83 | $ 0.87 | |||
Diluted earnings per share attributable to common shareholders (in dollars per share) | $ 0.41 | $ 0.43 | $ 0.83 | $ 0.86 | |||
Outstanding units of noncontrolling interest in the Operating Partnership (in shares) | 1,238,205 | 1,418,549 | 1,238,205 | 1,418,549 | 1,300,462 |
EARNINGS PER SHARE AND UNIT A_4
EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL - Summary of OP and Common Units (Details) - shares | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
CubeSmart, L.P. and Subsidiaries | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Outstanding units of noncontrolling interest in the Operating Partnership (in shares) | 1,238,205 | 1,300,462 | 1,418,549 |