Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 29, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'CubeSmart | ' |
Entity Central Index Key | '0001298675 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 144,308,200 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Storage facilities | $2,660,819 | $2,553,706 |
Less: Accumulated depreciation | -419,460 | -398,536 |
Storage facilities, net (including VIE assets of $41,624 and $34,559, respectively) | 2,241,359 | 2,155,170 |
Cash and cash equivalents | 3,235 | 3,176 |
Restricted cash | 3,964 | 4,025 |
Loan procurement costs, net of amortization | 12,086 | 12,687 |
Investment in real estate ventures, at equity | 154,467 | 156,310 |
Other assets, net | 27,420 | 27,256 |
Total assets | 2,442,531 | 2,358,624 |
LIABILITIES AND EQUITY | ' | ' |
Unsecured senior notes | 500,000 | 500,000 |
Revolving credit facility | 70,600 | 38,600 |
Unsecured term loans | 400,000 | 400,000 |
Mortgage loans and notes payable | 226,025 | 200,218 |
Accounts payable, accrued expenses and other liabilities | 49,627 | 57,599 |
Distributions payable | 20,321 | 19,955 |
Deferred revenue | 13,567 | 12,394 |
Security deposits | 387 | 376 |
Total liabilities | 1,280,527 | 1,229,142 |
Noncontrolling interests in the Operating Partnership | 38,807 | 36,275 |
Commitments and contingencies | ' | ' |
Equity | ' | ' |
7.75% Series A Preferred shares $.01 par value, 3,220,000 shares authorized, 3,100,000 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 31 | 31 |
Common shares $.01 par value, 200,000,000 shares authorized, 142,206,897 and 139,328,366 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively | 1,422 | 1,393 |
Additional paid in capital | 1,589,994 | 1,542,703 |
Accumulated other comprehensive loss | -10,360 | -11,014 |
Accumulated deficit | -459,335 | -440,837 |
Total CubeSmart shareholders' equity | 1,121,752 | 1,092,276 |
Noncontrolling interest in subsidiaries | 1,445 | 931 |
Total equity | 1,123,197 | 1,093,207 |
Total liabilities and equity | $2,442,531 | $2,358,624 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Storage facilities, net | $2,241,359 | $2,155,170 |
Series A Preferred shares, percentage | 7.75% | 7.75% |
Series A Preferred shares, par value (in dollars per share) | $0.01 | $0.01 |
Series A Preferred shares, shares authorized | 3,220,000 | 3,220,000 |
Series A Preferred shares, shares issued | 3,100,000 | 3,100,000 |
Series A Preferred shares, shares outstanding | 3,100,000 | 3,100,000 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 200,000,000 | 200,000,000 |
Common shares, shares issued | 142,206,897 | 139,328,366 |
Common shares, shares outstanding | 142,206,897 | 139,328,366 |
VIE | ' | ' |
Storage facilities, net | $41,624 | $34,559 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES | ' | ' |
Rental income | $75,714 | $66,252 |
Other property related income | 10,147 | 7,258 |
Property management fee income | 1,406 | 1,145 |
Total revenues | 87,267 | 74,655 |
OPERATING EXPENSES | ' | ' |
Property operating expenses | 32,290 | 29,161 |
Depreciation and amortization | 28,115 | 28,982 |
General and administrative | 6,569 | 7,613 |
Total operating expenses | 66,974 | 65,756 |
OPERATING INCOME | 20,293 | 8,899 |
Interest: | ' | ' |
Interest expense on loans | -11,871 | -10,272 |
Loan procurement amortization expense | -541 | -476 |
Acquisition related costs | -1,679 | -115 |
Equity in losses of real estate venture | -1,369 | ' |
Other | -593 | -73 |
Total other expense | -16,053 | -10,936 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 4,240 | -2,037 |
DISCONTINUED OPERATIONS | ' | ' |
Income from discontinued operations | 336 | 1,381 |
Gain on disposition of discontinued operations | ' | 228 |
Total discontinued operations | 336 | 1,609 |
NET INCOME (LOSS) | 4,576 | -428 |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ' | ' |
Noncontrolling interests in the Operating Partnership | -49 | 35 |
Noncontrolling interest in subsidiaries | 3 | 1 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY | 4,530 | -392 |
Distribution to Preferred Shares | -1,502 | -1,502 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | 3,028 | -1,894 |
Basic earnings (loss) per share from continuing operations attributable to common shareholders (in dollars per share) | $0.02 | ($0.03) |
Basic earnings per share from discontinued operations attributable to common shareholders (in dollars per share) | $0 | $0.02 |
Basic earnings (loss) per share attributable to common shareholders (in dollars per share) | $0.02 | ($0.01) |
Diluted earnings (loss) per share from continuing operations attributable to common shareholders (in dollars per share) | $0.02 | ($0.03) |
Diluted earnings per share from discontinued operations attributable to common shareholders (in dollars per share) | $0 | $0.02 |
Diluted earnings (loss) per share attributable to common shareholders (in dollars per share) | $0.02 | ($0.01) |
Weighted-average basic shares outstanding (in shares) | 140,219 | 132,951 |
Weighted-average diluted shares outstanding (in shares) | 142,774 | 132,951 |
AMOUNTS ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS: | ' | ' |
Income (loss) from continuing operations | 2,697 | -3,476 |
Total discontinued operations | 331 | 1,582 |
Net income (loss) | $3,028 | ($1,894) |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ' | ' |
NET INCOME (LOSS) | $4,576 | ($428) |
Other comprehensive (loss) gain: | ' | ' |
Unrealized losses on interest rate swap | -984 | -309 |
Reclassification of realized losses on interest rate swaps | 1,576 | 1,531 |
Unrealized gain (loss) on foreign currency translation | 74 | -256 |
OTHER COMPREHENSIVE INCOME | 666 | 966 |
COMPREHENSIVE INCOME | 5,242 | 538 |
Comprehensive (income) loss attributable to noncontrolling interests in the Operating Partnership | -59 | 17 |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 1 | 10 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $5,184 | $565 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Noncontrolling Interests in the Operating Partnership | Total Shareholders' Equity | Common Shares | Preferred Shares | Additional Paid in Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Noncontrolling Interest in Subsidiaries |
In Thousands, unless otherwise specified | |||||||||
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2012 | ' | $47,990 | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 989,909 | ' | 989,791 | 1,318 | 31 | 1,418,463 | -19,796 | -410,225 | 118 |
Balance (in shares) at Dec. 31, 2012 | ' | ' | ' | 131,795 | 3,100 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common shares | 1,512 | ' | 1,512 | 1 | ' | 1,511 | ' | ' | ' |
Issuance of common shares (in shares) | ' | ' | ' | 100 | ' | ' | ' | ' | ' |
Issuance of restricted shares | 2 | ' | 2 | 2 | ' | ' | ' | ' | ' |
Issuance of restricted shares (in shares) | ' | ' | ' | 211 | ' | ' | ' | ' | ' |
Conversion from units to shares | 14,601 | -14,601 | 14,601 | 10 | ' | 14,591 | ' | ' | ' |
Conversion from units to shares (in shares) | ' | ' | ' | 1,013 | ' | ' | ' | ' | ' |
Exercise of stock options | 785 | ' | 785 | 1 | ' | 784 | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 89 | ' | ' | ' | ' | ' |
Amortization of restricted shares | 808 | ' | 808 | ' | ' | 808 | ' | ' | ' |
Share compensation expense | 221 | ' | 221 | ' | ' | 221 | ' | ' | ' |
Adjustment for noncontrolling interest in the Operating Partnership | -2,915 | 2,915 | -2,915 | ' | ' | ' | ' | -2,915 | ' |
Net income (loss) | -1,894 | -35 | -392 | ' | ' | ' | ' | -392 | -1 |
Net income (loss), including temporary equity | -393 | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive gain (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on interest rate swap | 1,200 | 22 | 1,200 | ' | ' | ' | 1,200 | ' | ' |
Unrealized gain (loss) on foreign currency translation | -252 | -4 | -243 | ' | ' | ' | -243 | ' | -9 |
Preferred share distributions | -1,502 | ' | -1,502 | ' | ' | ' | ' | -1,502 | ' |
Common share distributions | -14,702 | -251 | -14,702 | ' | ' | ' | ' | -14,702 | ' |
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2013 | ' | 36,036 | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2013 | 989,274 | ' | 989,166 | 1,332 | 31 | 1,436,378 | -18,839 | -429,736 | 108 |
Balance (in shares) at Mar. 31, 2013 | ' | ' | ' | 133,208 | 3,100 | ' | ' | ' | ' |
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2013 | 36,275 | 36,275 | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 1,093,207 | ' | 1,092,276 | 1,393 | 31 | 1,542,703 | -11,014 | -440,837 | 931 |
Balance (in shares) at Dec. 31, 2013 | ' | ' | ' | 139,328 | 3,100 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions from noncontrolling interests in subsidiaries | 515 | ' | ' | ' | ' | ' | ' | ' | 515 |
Issuance of common shares | 46,162 | ' | 46,162 | 28 | ' | 46,134 | ' | ' | ' |
Issuance of common shares (in shares) | ' | ' | ' | 2,705 | ' | ' | ' | ' | ' |
Issuance of restricted shares | 1 | ' | 1 | 1 | ' | ' | ' | ' | ' |
Issuance of restricted shares (in shares) | ' | ' | ' | 114 | ' | ' | ' | ' | ' |
Conversion from units to shares | 234 | -234 | 234 | ' | ' | 234 | ' | ' | ' |
Conversion from units to shares (in shares) | ' | ' | ' | 14 | ' | ' | ' | ' | ' |
Exercise of stock options | 560 | ' | 560 | ' | ' | 560 | ' | ' | ' |
Exercise of stock options (in shares) | ' | ' | ' | 46 | ' | ' | ' | ' | ' |
Amortization of restricted shares | 149 | ' | 149 | ' | ' | 149 | ' | ' | ' |
Share compensation expense | 214 | ' | 214 | ' | ' | 214 | ' | ' | ' |
Adjustment for noncontrolling interest in the Operating Partnership | -3,001 | 3,001 | -3,001 | ' | ' | ' | ' | -3,001 | ' |
Net income (loss) | 3,028 | 49 | 4,530 | ' | ' | ' | ' | 4,530 | -3 |
Net income (loss), including temporary equity | 4,527 | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive gain (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on interest rate swap | 583 | 9 | 583 | ' | ' | ' | 583 | ' | ' |
Unrealized gain (loss) on foreign currency translation | 73 | 1 | 71 | ' | ' | ' | 71 | ' | 2 |
Preferred share distributions | -1,502 | ' | -1,502 | ' | ' | ' | ' | -1,502 | ' |
Common share distributions | -18,525 | -294 | -18,525 | ' | ' | ' | ' | -18,525 | ' |
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2014 | 38,807 | 38,807 | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2014 | $1,123,197 | ' | $1,121,752 | $1,422 | $31 | $1,589,994 | ($10,360) | ($459,335) | $1,445 |
Balance (in shares) at Mar. 31, 2014 | ' | ' | ' | 142,207 | 3,100 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income (loss) | $4,576 | ($428) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 28,656 | 30,365 |
Gain on disposition of discontinued operations | ' | -228 |
Equity compensation expense | 363 | 1,029 |
Accretion of fair market value adjustment of debt | -351 | -247 |
Equity in losses of real estate venture | 1,369 | ' |
Changes in other operating accounts: | ' | ' |
Other assets | 2,147 | 892 |
Restricted cash | -26 | 657 |
Accounts payable and accrued expenses | -6,800 | -6,400 |
Other liabilities | 647 | 821 |
Net cash provided by operating activities | 30,581 | 26,461 |
Investing Activities | ' | ' |
Acquisitions of storage facilities | -76,619 | -6,857 |
Additions and improvements to storage facilities | -5,112 | -4,229 |
Development costs | -7,488 | -2,655 |
Cash contributed to real estate venture | -1,050 | ' |
Cash distributed from real estate venture | 1,524 | ' |
Proceeds from sales of properties, net | ' | 10,993 |
Proceeds from notes receivable | ' | 5,192 |
Change in restricted cash | 306 | -71 |
Net cash (used in) provided by investing activities | -88,439 | 2,373 |
Proceeds from: | ' | ' |
Revolving credit facility | 197,500 | 60,600 |
Principal payments on: | ' | ' |
Revolving credit facility | -165,500 | -75,600 |
Mortgage loans and notes payable | -1,309 | -1,584 |
Loan procurement costs | -57 | ' |
Proceeds from issuance of common shares | 46,163 | 1,514 |
Exercise of stock options | 560 | 785 |
Contributions from noncontrolling interests in subsidiaries | 515 | ' |
Distributions paid to common shareholders | -18,157 | -14,555 |
Distributions paid to preferred shareholders | -1,502 | -1,502 |
Distributions paid to noncontrolling interests in Operating Partnership | -296 | -362 |
Net cash provided by (used in) financing activities | 57,917 | -30,704 |
Change in cash and cash equivalents | 59 | -1,870 |
Cash and cash equivalents at beginning of period | 3,176 | 4,495 |
Cash and cash equivalents at end of period | 3,235 | 2,625 |
Supplemental Cash Flow and Noncash Information | ' | ' |
Cash paid for interest, net of interest capitalized | 12,819 | 14,359 |
Supplemental disclosure of noncash activities: | ' | ' |
Derivative valuation adjustment | 592 | 1,222 |
Foreign currency translation adjustment | 74 | -256 |
Mortgage loan assumption - acquisition of storage facilities | $27,467 | ' |
ORGANIZATION_AND_NATURE_OF_OPE
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2014 | |
ORGANIZATION AND NATURE OF OPERATIONS | ' |
ORGANIZATION AND NATURE OF OPERATIONS | ' |
1. ORGANIZATION AND NATURE OF OPERATIONS | |
CubeSmart (the “Parent Company”) operates as a self-managed and self-administered real estate investment trust (“REIT”) with its operations conducted solely through CubeSmart, L.P. and its subsidiaries. CubeSmart, L.P., a Delaware limited partnership (the “Operating Partnership”), operates through an umbrella partnership structure, with the Parent Company, a Maryland REIT, as its sole general partner. In the notes to the consolidated financial statements, we use the terms “the Company”, “we” or “our” to refer to the Parent Company and the Operating Partnership together, unless the context indicates otherwise. As of March 31, 2014, the Company owned self-storage facilities located in 20 states throughout the United States and the District of Columbia which are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage facilities. | |
As of March 31, 2014, the Parent Company owned approximately 98.4% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in facilities 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 for cash equal to the fair value of an equivalent number of common shares of the Parent Company. In lieu of delivering cash, however, the Parent Company, as the Operating Partnership’s general partner, may, at its option, choose to acquire any OP Units so tendered by issuing common shares in exchange for the tendered OP Units. If the Parent Company so chooses, its common shares will be exchanged for OP Units on a one-for-one basis. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Parent Company’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Parent Company issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Parent Company an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT.” |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
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 SEC regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2013, which are included in the Parent Company’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 and 2013 are not necessarily indicative of the results of operations to be expected for any future period or the full year. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard for the reporting of discontinued operations. The update redefines discontinued operations, changing the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This amendment becomes effective for annual periods beginning on or after December 15, 2014, and interim periods beginning on or after December 15, 2015; however, early adoption is permitted. The adoption of this guidance in 2014 did not have a material impact on the Company’s consolidated financial position or results of operations because the Company did not dispose of any assets during the three months ended March 31, 2014. |
STORAGE_FACILITIES
STORAGE FACILITIES | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
STORAGE FACILITIES | ' | |||||||||
STORAGE FACILITIES | ' | |||||||||
3. STORAGE FACILITIES | ||||||||||
The book value of the Company’s real estate assets is summarized as follows: | ||||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
(in thousands) | ||||||||||
Land | $ | 480,296 | $ | 465,680 | ||||||
Buildings and improvements | 1,980,005 | 1,888,823 | ||||||||
Equipment | 167,665 | 158,000 | ||||||||
Construction in progress | 32,853 | 41,203 | ||||||||
Storage facilities | 2,660,819 | 2,553,706 | ||||||||
Less: Accumulated depreciation | -419,460 | -398,536 | ||||||||
Storage facilities, net | $ | 2,241,359 | $ | 2,155,170 | ||||||
The following table summarizes the Company’s acquisition and disposition activity from the period beginning on January 1, 2013 through March 31, 2014: | ||||||||||
Facility/Portfolio | Location | Transaction Date | Number of | Purchase / Sales | ||||||
Facilities | Price (in | |||||||||
thousands) | ||||||||||
2014 Acquisitions: | ||||||||||
Manchester Asset | Manchester, CT | January 2014 | 1 | $ | 4,950 | |||||
Coconut Creek Asset | Coconut Creek, FL | January 2014 | 1 | 14,000 | ||||||
Florida Assets | Palm Coast, FL | January 2014 | 2 | 14,450 | ||||||
Fremont Asset | Fremont, CA | January 2014 | 1 | 8,300 | ||||||
Temple Hills Asset | Temple Hills, MD | February 2014 | 1 | 15,800 | ||||||
Timonium Asset | Timonium, MD | February 2014 | 1 | 15,500 | ||||||
Phoenix Asset | Phoenix, AZ | March 2014 | 1 | 14,750 | ||||||
Philadelphia Asset | Philadelphia, PA | March 2014 | 1 | 7,350 | ||||||
Frisco Asset | Frisco, TX | March 2014 | 1 | 8,225 | ||||||
10 | $ | 103,325 | ||||||||
2013 Acquisitions: | ||||||||||
Gilbert Asset | Gilbert, AZ | March 2013 | 1 | $ | 6,900 | |||||
Evanston Asset | Evanston, IL | May 2013 | 1 | 8,300 | ||||||
Delray Beach Asset | Delray Beach, FL | May 2013 | 1 | 7,150 | ||||||
Miramar Asset | Miramar, FL | June 2013 | 1 | 9,000 | ||||||
Stoneham Asset | Stoneham, MA | June 2013 | 1 | 10,600 | ||||||
Maryland/New Jersey Assets | Multiple locations in MD and NJ | June 2013 | 5 | 52,400 | ||||||
Staten Island Asset | Staten Island, NY | July 2013 | 1 | 13,000 | ||||||
Lewisville Asset | Lewisville, TX | August 2013 | 1 | 10,975 | ||||||
Chandler Asset | Chandler, AZ | September 2013 | 1 | 10,500 | ||||||
Tempe Asset | Tempe, AZ | September 2013 | 1 | 4,300 | ||||||
Clinton Asset | Clinton, MD | November 2013 | 1 | 15,375 | ||||||
Katy Asset | Katy, TX | November 2013 | 1 | 9,700 | ||||||
Richmond Asset | Richmond, TX | December 2013 | 1 | 10,497 | ||||||
Dallas Asset | Dallas, TX | December 2013 | 1 | 6,925 | ||||||
Elkridge Asset | Elkridge, MD | December 2013 | 1 | 8,200 | ||||||
Fort Lauderdale Asset | Fort Lauderdale, FL | December 2013 | 1 | 6,000 | ||||||
20 | $ | 189,822 | ||||||||
2013 Dispositions: | ||||||||||
Texas/Indiana Assets | Multiple locations in TX and IN | March 2013 | 5 | $ | 11,400 | |||||
Tennessee Assets | Multiple locations in TN | August 2013 | 8 | 25,000 | ||||||
California/Tennessee/Texas Assets | Multiple locations in CA, TN and TX | October/November 2013 | 22 | 90,000 | ||||||
35 | $ | 126,400 |
INVESTMENT_ACTIVITY
INVESTMENT ACTIVITY | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT ACTIVITY | ' | |||||||
INVESTMENT ACTIVITY | ' | |||||||
4. INVESTMENT ACTIVITY | ||||||||
2014 Acquisitions | ||||||||
During the three months ended March 31, 2014, the Company acquired 10 self-storage facilities located throughout the United States for an aggregate purchase price of approximately $103.3 million. In connection with these acquisitions, the Company allocated a portion of the purchase price to the intangible value of in-place leases, which aggregated $7.4 million at the time of such acquisitions and prior to any amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the three months ended March 31, 2014 was approximately $1.0 million. In connection with four of the acquired facilities, the Company assumed mortgage debt, and recorded the debt at a fair value of $27.5 million, which included an outstanding principal balance totaling $26.0 million and a net premium of $1.5 million to reflect the estimated fair value of the debt at the time of assumption. | ||||||||
The following table summarizes the Company’s revenue and earnings of the 2014 and 2013 acquisitions from the respective acquisition dates in the period they were acquired, included in the consolidated statements of operations for the three months ended December 31, 2014 and 2013: | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Total revenue | $ | 1,357 | $ | 33 | ||||
Net loss | -799 | -52 | ||||||
Development | ||||||||
During 2012, the Company commenced construction of 5 Old Lancaster Road located in Malvern, PA, a suburb of Philadelphia. The mixed-use facility is comprised of rentable storage space and office space for the Company’s corporate headquarters. During the fourth quarter of 2013, the Company relocated its corporate headquarters to 5 Old Lancaster Road. Construction was completed on the portion of the building comprised of rentable storage space and the facility opened for operation during the first quarter of 2014. Total costs for this mixed-use project equaled $24.6 million at March 31, 2014. | ||||||||
During 2013, the Company entered into contracts for the construction of a self-storage facility located in Bronx, NY. Construction of the facility was substantially completed and the facility opened for operation during the first quarter of 2014. Total costs for this project equaled $17.0 million at March 31, 2014. These costs are capitalized to building and improvements as well as equipment and are reflected in Storage facilities on the Company’s consolidated balance sheets. | ||||||||
During 2013, the Company entered into contracts under newly-formed joint ventures for the construction of three self-storage facilities located in New York and one self-storage facility located in Virginia (see note 12). Construction for all projects is expected to be completed during 2015. At March 31, 2014, development costs for these projects totaled $22.2 million. These costs are capitalized to construction in progress while the projects are under development and are reflected in Storage facilities on the Company’s consolidated balance sheets. | ||||||||
2013 Acquisitions | ||||||||
During 2013, the Company acquired 20 self-storage facilities located throughout the United States for an aggregate purchase price of approximately $189.8 million. In connection with these acquisitions, the Company allocated a portion of the purchase price to the intangible value of in-place leases, which aggregated $13.5 million at the time of such acquisitions and prior to any amortization of such amounts. The estimated life of these in-place leases was 12 months and the amortization expense that was recognized during the three months ended March 31, 2014 was approximately $3.3 million. In connection with one of the acquired facilities, the Company assumed mortgage debt, and recorded the debt at a fair value of $8.9 million, which included an outstanding principal balance totaling $8.5 million and a net premium of $0.4 million in addition to the face value of the assumed debt to reflect the fair value of the debt at the time of assumption. |
INVESTMENT_IN_UNCONSOLIDATED_R
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | ' | |||||||
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | ' | |||||||
5. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | ||||||||
On December 10, 2013, the Company acquired a 50% ownership interest in 35 self-storage facilities located in Texas (34) and North Carolina (1) through a newly-formed joint venture (“HHF”). HHF paid $315.7 million for these facilities. The Company and the unaffiliated joint venture partner, collectively the “HHF Partners,” each contributed cash equal to 50% of the capital required to fund the acquisition. HHF was not consolidated as the entity was not determined to be a VIE and the HHF Partners have equal ownership and voting rights in the entity. The Company accounts for its unconsolidated interest in the real estate venture using the equity method. The Company’s investment in HHF is included in Investment in real estate venture, at equity on the Company’s consolidated balance sheets and losses attributed to HHF are presented in Equity in losses of real estate ventures on the Company’s consolidated statements of operations. | ||||||||
The amounts reflected in the following table are based on the historical financial information of the real estate venture. | ||||||||
The following is a summary of the financial position of the HHF venture as of March 31, 2014 and December 31, 2013, respectively (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Assets | ||||||||
Net property | $ | 299,318 | $ | 302,557 | ||||
Other assets | 12,189 | 11,688 | ||||||
Total Assets | $ | 311,507 | $ | 314,245 | ||||
Liabilities and equity | ||||||||
Other liabilities | $ | 2,573 | $ | 1,625 | ||||
Equity: | ||||||||
CubeSmart | 154,467 | 156,310 | ||||||
Joint venture partner | 154,467 | 156,310 | ||||||
Total Liabilities and equity | $ | 311,507 | $ | 314,245 | ||||
The following is a summary of results of operations of the real estate venture for the three months ended March 31, 2014 (in thousands): | ||||||||
Three months | ||||||||
ended March 31, | ||||||||
2014 | ||||||||
Revenue | $ | 6,520 | ||||||
Operating expenses | 2,778 | |||||||
Depreciation and amortization | 6,480 | |||||||
Net loss | -2,738 | |||||||
Company’s share of net loss | -1,369 | |||||||
UNSECURED_SENIOR_NOTES
UNSECURED SENIOR NOTES | 3 Months Ended |
Mar. 31, 2014 | |
UNSECURED SENIOR NOTES | ' |
UNSECURED SENIOR NOTES | ' |
6. UNSECURED SENIOR NOTES | |
On December 17, 2013, the Operating Partnership issued $250 million in aggregate principal amount of 4.375% unsecured senior notes due December 15, 2023 (the “2023 Senior Notes”). On June 26, 2012, the Operating Partnership issued $250 million in aggregate principal amount of unsecured senior notes due July 15, 2022 (the “2022 Senior Notes”) which bear interest at a rate of 4.80%. The 2023 Senior Notes along with the 2022 Senior Notes are collectively referred to as the “Senior Notes.” 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 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. The Operating Partnership is currently in compliance with all of the financial covenants under the Senior Notes. |
REVOLVING_CREDIT_FACILITY_AND_
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | ' | |||||||||||
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | ' | |||||||||||
7. REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | ||||||||||||
On June 20, 2011, the Company entered into an unsecured term loan agreement (the “Term Loan Facility”) which consisted of a $100 million term loan with a five-year maturity (“Term Loan A”) and a $100 million term loan with a seven-year maturity (“Term Loan B”). The Company incurred costs of $2.1 million in connection with executing the agreement and capitalized such costs as a component of loan procurement costs, net of amortization on the consolidated balance sheet. | ||||||||||||
On December 9, 2011, the Company entered into a credit facility (the “Credit Facility”) comprised of a $100 million unsecured term loan maturing in December 2014 (“Term Loan C”); a $200 million unsecured term loan maturing in March 2017 (“Term Loan D”); and a $300 million unsecured revolving facility maturing in December 2015 (“Revolver”). The Company incurred costs of $3.4 million in connection with executing the agreement and capitalized such costs as a component of loan procurement costs, net of amortization on the consolidated balance sheet. | ||||||||||||
On June 18, 2013, the Company amended both the Term Loan Facility and Credit Facility. With respect to the Term Loan Facility, among other things, the amendment extended the maturity and decreased the pricing of Term Loan A, while Term Loan B remained unchanged by the amendment. Pricing on the Term Loan Facility depends on the Company’s unsecured debt credit ratings. At the Company’s current Baa3/BBB- level, amounts drawn under Term Loan A are priced at 1.50% over LIBOR, with no LIBOR floor, while amounts drawn under Term Loan B are priced at 2.00% over LIBOR, with no LIBOR floor. | ||||||||||||
Term Loan Facility | Term Loan Facility | |||||||||||
Prior to Amendment | As Amended | |||||||||||
Amount | Maturity Date | LIBOR Spread | Maturity Date | LIBOR Spread | ||||||||
Term Loan A | $100 million | June 2016 | 1.85% | June 2018 | 1.50% | |||||||
Term Loan B | $100 million | June 2018 | 2.00% | June 2018 | 2.00% | |||||||
With respect to the Credit Facility, among other things, the amendment extended the maturities of the Revolver and Term Loan D and decreased the pricing of the Revolver, Term Loan C and Term Loan D. Pricing on the Credit Facility depends on the Company’s unsecured debt credit ratings. At the Company’s current Baa3/BBB- level, amounts drawn under the Revolver are priced at 1.60% over LIBOR, inclusive of a facility fee of 0.30%, with no LIBOR floor, while amounts drawn under Term Loan C and Term Loan D are priced at 1.50% over LIBOR, with no LIBOR floor. | ||||||||||||
Credit Facility | Credit Facility | |||||||||||
Prior to Amendment | As Amended | |||||||||||
Amount | Maturity Date | LIBOR Spread | Maturity Date | LIBOR Spread | ||||||||
Revolver | $300 million | December 2015 | 1.80% | June 2017 | 1.60% | |||||||
Term Loan C (1) | $100 million | December 2014 | 1.75% | December 2014 | 1.50% | |||||||
Term Loan D | $200 million | March 2017 | 1.75% | January 2019 | 1.50% | |||||||
(1) On December 17, 2013, the Company repaid the $100 million balance under Term Loan C that was scheduled to mature in December 2014. | ||||||||||||
The Company incurred costs of $2.1 million in connection with amending the agreements and capitalized such costs as a component of loan procurement costs, net of amortization on the consolidated balance sheet. Unamortized costs, along with costs incurred in connection with the amendments, are amortized as an adjustment to interest expense over the remaining term of the modified facilities. In connection with the repayment of Term Loan C, the Company recognized loan procurement amortization expense – early repayment of debt of $0.4 million related to the write-off of unamortized loan procurement costs associated with the term loan. | ||||||||||||
As of March 31, 2014, $200 million of unsecured term loan borrowings were outstanding under the Term Loan Facility, $200 million of unsecured term loan borrowings were outstanding under the Credit Facility, $70.6 million of unsecured revolving credit facility borrowings were outstanding under the Credit Facility and $229.2 million was available for borrowing on the unsecured revolving portion of the Credit Facility. The available balance under the unsecured revolving portion of the Credit Facility is reduced by an outstanding letter of credit of $0.2 million. In connection with a portion of the unsecured borrowings, the Company had interest rate swaps as of March 31, 2014 that fix 30-day LIBOR (see note 10). As of March 31, 2014, borrowings under the Credit Facility and Term Loan Facility, as amended and after giving effect to the interest rate swaps, had an effective weighted average interest rate of 3.12%. | ||||||||||||
The Term Loan Facility and the term loan under the Credit Facility were fully drawn at March 31, 2014 and no further borrowings may be made under the term loans. The Company’s ability to borrow under the revolving portion of the Credit Facility is subject to ongoing compliance with certain financial covenants which include: | ||||||||||||
· Maximum total indebtedness to total asset value of 60.0% at any time; | ||||||||||||
· Minimum fixed charge coverage ratio of 1.50:1.00; and | ||||||||||||
· Minimum tangible net worth of $821,211,200 plus 75% of net proceeds from equity issuances after June 30, 2010. | ||||||||||||
Further, under the Credit Facility and Term Loan Facility, the Company is restricted from paying distributions on the Parent Company’s common shares in excess of the greater of (i) 95% of funds from operations, and (ii) such amount as may be necessary to maintain the Parent Company’s REIT status. | ||||||||||||
The Company is currently in compliance with all of its financial covenants and anticipates being in compliance with all of its financial covenants through the terms of the Credit Facility and Term Loan Facility. |
MORTGAGE_LOANS_AND_NOTES_PAYAB
MORTGAGE LOANS AND NOTES PAYABLE | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
MORTGAGE LOANS AND NOTES PAYABLE | ' | |||||||||||
MORTGAGE LOANS AND NOTES PAYABLE | ' | |||||||||||
8. MORTGAGE LOANS AND NOTES PAYABLE | ||||||||||||
The Company’s mortgage loans and notes payable are summarized as follows: | ||||||||||||
Carrying Value as of: | ||||||||||||
March 31, | December 31, | Effective | Maturity | |||||||||
Mortgage Loans and Notes Payable | 2014 | 2013 | Interest Rate | Date | ||||||||
(dollars in thousands) | ||||||||||||
YSI 61 | 2,355 | - | 2.53% | 14-Sep | ||||||||
YSI 10 | 3,816 | 3,839 | 5.87% | 15-Jan | ||||||||
YSI 15 | 1,719 | 1,733 | 6.41% | 15-Jan | ||||||||
YSI 52 | 4,504 | 4,548 | 5.63% | 15-Jan | ||||||||
YSI 58 | 8,597 | 8,676 | 2.97% | 15-Jan | ||||||||
YSI 29 | 12,797 | 12,853 | 3.69% | 15-Aug | ||||||||
YSI 13 | 8,500 | 8,500 | 3.00% | 15-Oct | ||||||||
YSI 20 | 55,815 | 56,373 | 5.97% | 15-Nov | ||||||||
YSI 63 | 7,520 | - | 2.82% | 15-Dec | ||||||||
YSI 59 | 9,368 | 9,418 | 4.82% | 16-Mar | ||||||||
YSI 60 | 3,654 | 3,670 | 5.04% | 16-Aug | ||||||||
YSI 51 | 7,189 | 7,219 | 5.15% | 16-Sep | ||||||||
YSI 64 | 8,015 | - | 3.54% | 16-Oct | ||||||||
YSI 62 | 8,050 | - | 3.54% | 16-Dec | ||||||||
YSI 35 | 4,247 | 4,274 | 6.90% | 19-Jul | (a) | |||||||
YSI 33 | 10,625 | 10,688 | 6.42% | 19-Jul | ||||||||
YSI 26 | 8,903 | 8,945 | 4.56% | 20-Nov | ||||||||
YSI 57 | 3,126 | 3,140 | 4.61% | 20-Nov | ||||||||
YSI 55 | 24,048 | 24,145 | 4.85% | 21-Jun | ||||||||
YSI 24 | 28,359 | 28,523 | 4.64% | 21-Jun | ||||||||
Unamortized fair value adjustment | 4,818 | 3,674 | ||||||||||
Total mortgage loans and notes payable | $ | 226,025 | $ | 200,218 | ||||||||
(a) This borrowing has a fixed interest rate for the first five-years of the term, and the rate then resets and remains constant over the final five-years of the loan term. | ||||||||||||
As of March 31, 2014 and December 31, 2013, the Company’s mortgage loans payable were secured by certain of its self-storage facilities with net book values of approximately $411 million and $371 million, respectively. The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable at March 31, 2014 (in thousands): | ||||||||||||
2014 | $ | 6,538 | ||||||||||
2015 | 103,121 | |||||||||||
2016 | 36,957 | |||||||||||
2017 | 1,915 | |||||||||||
2018 | 2,026 | |||||||||||
2019 and thereafter | 70,650 | |||||||||||
Total mortgage payments | 221,207 | |||||||||||
Plus: Unamortized fair value adjustment | 4,818 | |||||||||||
Total mortgage indebtedness | $ | 226,025 | ||||||||||
The Company currently intends to fund its remaining 2014 principal payment requirements from cash provided by operating activities, new debt originations, and/or additional borrowings under its unsecured Credit Facility ($229.2 million available as of March 31, 2014). |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | ||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | ||||||||||
9. ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||
The following table summarizes the changes in accumulated other comprehensive loss by component for the three months ended March 31, 2014 (dollars in thousands): | |||||||||||
Unrealized losses | Unrealized loss on | Total | |||||||||
on interest rate | foreign currency | ||||||||||
swaps | translation | ||||||||||
Balance at December 31, 2013 | $ | -10,222 | $ | -792 | $ | -11,014 | |||||
Other comprehensive (loss) gain before reclassifications | -968 | 71 | -897 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,551 | - | 1,551 | ||||||||
Net current-period other comprehensive gain | 583 | 71 | 654 | ||||||||
Balance at March 31, 2014 | $ | -9,639 | $ | -721 | $ | -10,360 | |||||
(a) See note 10 for additional information about the effects of the amounts reclassified. |
RISK_MANAGEMENT_AND_USE_OF_FIN
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||
10. RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||
The Company’s use of derivative instruments is limited to the utilization of interest rate swap agreements or other instruments to manage interest rate risk exposures and not for speculative purposes. The principal objective of such arrangements is to minimize the risks and/or costs associated with the Company’s operating and financial structure, as well as to hedge specific transactions. The counterparties to these arrangements are major financial institutions with which the Company and its subsidiaries may also have other financial relationships. The Company is potentially exposed to credit loss in the event of non-performance by these counterparties. However, because of the high credit ratings of the counterparties, the Company does not anticipate that any of the counterparties will fail to meet these obligations as they come due. The Company does not hedge credit or property value market risks. | |||||||||||||||||||
The Company has entered into interest rate swap agreements that qualify and are designated as cash flow hedges designed to reduce the impact of interest rate changes on its variable rate debt. Therefore, the interest rate swaps are recorded in the consolidated balance sheet at fair value and the related gains or losses are deferred in shareholders’ equity as accumulated other comprehensive loss. These deferred gains and losses are amortized into interest expense during the period or periods in which the related interest payments affect earnings. However, to the extent that the interest rate swaps are not perfectly effective in offsetting the change in value of the interest payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. | |||||||||||||||||||
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 a 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 a derivative is not highly-effective as a hedge or if a derivative ceases to be a highly-effective hedge, the Company will discontinue hedge accounting prospectively and will reflect in its statement of operations realized and unrealized gains and losses in respect of the derivative. | |||||||||||||||||||
The following table summarizes the terms and fair values of the Company’s derivative financial instruments at March 31, 2014 and December 31, 2013, respectively (dollars in thousands): | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Hedge | Notional | March 31, | December 31, | ||||||||||||||||
Product | Hedge Type (a) | Amount | Strike | Effective Date | Maturity | 2014 | 2013 | ||||||||||||
Swap | Cash flow | $ | 40,000 | 1.80% | 6/20/11 | 6/20/16 | $ | -1,154 | $ | -1,265 | |||||||||
Swap | Cash flow | $ | 40,000 | 1.80% | 6/20/11 | 6/20/16 | -1,154 | -1,265 | |||||||||||
Swap | Cash flow | $ | 20,000 | 1.80% | 6/20/11 | 6/20/16 | -577 | -632 | |||||||||||
Swap | Cash flow | $ | 75,000 | 1.34% | 12/30/11 | 3/31/17 | -1,073 | -1,132 | |||||||||||
Swap | Cash flow | $ | 50,000 | 1.34% | 12/30/11 | 3/31/17 | -714 | -752 | |||||||||||
Swap | Cash flow | $ | 50,000 | 1.34% | 12/30/11 | 3/31/17 | -715 | -754 | |||||||||||
Swap | Cash flow | $ | 25,000 | 1.34% | 12/30/11 | 3/31/17 | -359 | -380 | |||||||||||
Swap | Cash flow | $ | 40,000 | 2.46% | 6/20/11 | 6/20/18 | -1,758 | -1,820 | |||||||||||
Swap | Cash flow | $ | 40,000 | 2.47% | 6/20/11 | 6/20/18 | -1,777 | -1,842 | |||||||||||
Swap | Cash flow | $ | 20,000 | 2.48% | 6/20/11 | 6/20/18 | -890 | -921 | |||||||||||
$ | 400,000 | $ | -10,171 | $ | -10,763 | ||||||||||||||
(a) Hedging unsecured variable rate debt by fixing 30-day LIBOR. | |||||||||||||||||||
The Company measures its derivative instruments at fair value and records them in the balance sheet as either an asset or liability. As of March 31, 2014 and December 31, 2013, all derivative instruments were included in accounts payable, accrued expenses and other liabilities in the accompanying consolidated balance sheets. The effective portions of changes in the fair value of the derivatives are reported in accumulated other comprehensive income (loss). Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The change in unrealized loss on interest rate swap reflects a reclassification of $1.6 million of unrealized losses from accumulated other comprehensive loss as an increase to interest expense during the three months ended March 31, 2014. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
11. FAIR VALUE MEASUREMENTS | |||||||||||
The Company applies the methods of determining fair value as described in authoritative guidance, to value its financial assets and liabilities. As defined in the guidance, fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, the guidance establishes a fair value hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: | |||||||||||
Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. | |||||||||||
Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | |||||||||||
Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. | |||||||||||
In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its assessment of fair value. | |||||||||||
Financial assets and liabilities carried at fair value as of March 31, 2014 are classified in the table below in one of the three categories described above (dollars in thousands): | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Interest Rate Swap Derivative Liabilities | $ | - | $ | 10,171 | $ | - | |||||
Total liabilities at fair value | $ | - | $ | 10,171 | $ | - | |||||
Financial assets and liabilities carried at fair value as of December 31, 2013 are classified in the table below in one of the three categories described above (dollars in thousands): | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Interest Rate Swap Derivative Liabilities | $ | - | $ | 10,763 | $ | - | |||||
Total liabilities at fair value | $ | - | $ | 10,763 | $ | - | |||||
Financial assets and liabilities carried at fair value were classified as Level 2 inputs. For financial liabilities that utilize Level 2 inputs, the Company utilizes both direct and indirect observable price quotes, including LIBOR yield curves, bank price quotes for forward starting swaps, NYMEX futures pricing and common stock price quotes. Below is a summary of valuation techniques for Level 2 financial liabilities: | |||||||||||
■ Interest rate swap derivative assets and liabilities – valued using LIBOR yield curves at the reporting date. Counterparties to these contracts are most often highly rated financial institutions, none of which experienced any significant downgrades in 2014 that would reduce the amount owed by the Company. Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with the Company’s derivatives utilize Level 3 inputs, such as estimates of current credit spreads, to evaluate the likelihood of default by the Company and the counterparties. However, as of March 31, 2014, the Company has assessed the significance of the effect of the credit valuation adjustments on the overall valuation of its derivative positions and has determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company has determined that its derivative valuations in their entirety are classified in Level 2 of the fair value hierarchy. | |||||||||||
The fair values of financial instruments, including cash and cash equivalents, accounts receivable and accounts payable approximate their respective carrying values at March 31, 2014 and December 31, 2013. The aggregate carrying value of the Company’s debt was $1,196.6 million and $1,138.8 million at March 31, 2014 and December 31, 2013, respectively. The estimated fair value of the Company’s debt was $1,214.0 million and $1,140.9 million at March 31, 2014 and December 31, 2013, respectively. These estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations at March 31, 2014 and December 31, 2013. 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 | 3 Months Ended |
Mar. 31, 2014 | |
NONCONTROLLING INTERESTS | ' |
NONCONTROLLING INTERESTS | ' |
12. NONCONTROLLING INTERESTS | |
Interests in Consolidated Real Estate Joint Ventures | |
251 Jamaica Ave, LLC (“Jamaica Ave”) was formed to own, operate, and develop a self-storage facility in New York, NY. The Company owns a 51% interest in Jamaica Ave and 49% is owned by another member (“Jamaica Ave Member”). The facility is expected to commence operations during 2015. The Jamaica Ave Member has an option to put its ownership interest in the venture to the Company for $12.5 million within the one-year period after construction of the facility is substantially complete. Additionally, the Company has a one-year option to call the ownership interest of the Jamaica Ave Member for $12.5 million beginning on the second anniversary of the facility’s construction being substantially complete. The Company determined that Jamaica Ave is a variable interest entity, and that the Company is the primary beneficiary. Accordingly, the Company consolidates the assets, liabilities, and results of operations of Jamaica Ave. At March 31, 2014, Jamaica Ave had total assets of $8.1 million. | |
CS SNL New York Ave, LLC and 186 Jamaica Avenue, LLC, collectively known as “SNL”, were formed with a partner to own, operate and develop two self-storage facilities in the boroughs of New York, NY. The Company owns 90% of SNL and the facilities are expected to commence operations during 2015. The Company consolidates the assets, liabilities, and results of operations of SNL. At March 31, 2014, SNL had total assets of $9.0 million and total liabilities of $0.1 million. | |
Shirlington Rd, LLC (“SRLLC”) was formed to own, operate, and develop a self-storage facility in Northern Virginia. The Company owns a 90% interest in SRLLC and the facility is expected to commence operations during 2015. The Company consolidates the assets, liabilities, and results of operations of SRLLC. At March 31, 2014, SRLLC had total assets of $13.6 million and total liabilities of $9.2 million. The Company has provided $9.2 million of a total $14.6 million loan commitment to SRLLC which is secured by a mortgage on the real estate assets of SRLLC. The loan and related interest was eliminated during consolidation. | |
USIFB, LLP (“USIFB”) was formed to own, operate, acquire and develop self-storage facilities in England. The Company owns a 97% interest in the USIFB through a wholly-owned subsidiary and USIFB commenced operations at two facilities in London, England during 2008. The Company determined that USIFB is a variable interest entity, and that the Company is the primary beneficiary. Accordingly, the Company consolidates the assets, liabilities and results of operations of USIFB. At March 31, 2014, USIFB had total assets of $11.9 million and total liabilities of $7.1 million. On December 31, 2013 the Company provided a $6.8 million (£4.1 million) loan secured by a mortgage on real estate assets of USIFB. The loan and any related interest was eliminated during consolidation. | |
Operating Partnership Ownership | |
The Company follows guidance regarding the classification and measurement of redeemable securities. Under this guidance, securities that are redeemable for cash or other assets, at the option of the holder and not solely within the control of the issuer, must be classified outside of permanent equity/capital. This classification results in certain outside ownership interests being included as redeemable noncontrolling interests outside of permanent equity/capital in the consolidated balance sheets. The Company makes this determination based on terms in applicable agreements, specifically in relation to redemption provisions. | |
Additionally, with respect to redeemable ownership interests in the Operating Partnership held by third parties for which CubeSmart has a choice to settle the redemption by delivery of its own shares, the Operating Partnership considered the guidance regarding accounting for derivative financial instruments indexed to, and potentially settled in, a company’s own shares, to evaluate whether CubeSmart controls the actions or events necessary to presume share settlement. The guidance also requires that noncontrolling interests classified outside of permanent capital be adjusted each period to the greater of the carrying value based on the accumulation of historical cost or the redemption value. | |
Approximately 1.6% of the outstanding OP Units as of March 31, 2014 and December 31, 2013 were not owned by CubeSmart, the sole general partner. The interests in the Operating Partnership represented by these OP Units were a component of the consideration that the Operating Partnership paid to acquire certain self-storage facilities. The holders of the OP Units are limited partners in the Operating Partnership and have the right to require CubeSmart to redeem all or part of their OP Units for, at the general partner’s option, an equivalent number of common shares of CubeSmart or cash based upon the fair value of an equivalent number of common shares of CubeSmart. However, the partnership agreement contains certain provisions that could result in a settlement outside the control of CubeSmart and the Operating Partnership, as CubeSmart does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance, the Operating Partnership will record the OP Units owned by third parties outside of permanent capital in the consolidated balance sheets. Net income or loss related to the OP Units owned by third parties is excluded from net income or loss attributable to Operating Partner in the consolidated statements of operations. | |
At March 31, 2014 and December 31, 2013, 2,261,486 and 2,275,730 OP units, respectively, were outstanding. The per unit cash redemption amount of the outstanding OP units was calculated based upon the average of the closing prices of the common shares of CubeSmart on the New York Stock Exchange for the final 10 trading days of the quarter. Based on the Company’s evaluation of the redemption value of the redeemable noncontrolling interest, the Company has reflected these interests at their redemption value at March 31, 2014 and December 31, 2013, as the estimated redemption value exceeded their carrying value. The Operating Partnership recorded an increase to OP Units owned by third parties and a corresponding decrease to capital of $3.0 million and $3.3 million at March 31, 2014 and December 31, 2013, respectively. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||||||||
13. RELATED PARTY TRANSACTIONS | ||||||||||||||
Affiliated Real Estate Investments | ||||||||||||||
The Company provides management services to certain joint ventures and other related party facilities. Management agreements provide generally for management fees of between 5-6% of cash collections at the managed facilities. Management fees for unconsolidated joint ventures or other entities in which the Company held an ownership interest for the three months ended March 31, 2014 totaled $0.2 million. The Company had no ownership interests in unconsolidated joint ventures or other entities at March 31, 2013. | ||||||||||||||
The management agreements for certain joint ventures, other related parties and third-party facilities provide for the reimbursement to the Company for certain expenses incurred to manage the facilities. These amounts consist of amounts due for management fees, payroll, and other expenses incurred on behalf of the facilities. The amounts due to the Company were $1.3 million and $2.1 million as of March 31, 2014 and December 31, 2013, respectively. Additionally, as discussed in note 12 the Company has outstanding mortgage loans receivable from consolidated joint ventures of $16.0 million and $15.8 million as of March 31, 2014 and December 31, 2013, respectively, that are eliminated for consolidation purposes. The Company believes that all of these related-party receivables are fully collectible. | ||||||||||||||
Corporate Office Leases | ||||||||||||||
Subsequent to its entry into lease agreements with related parties for office space, the Operating Partnership entered into sublease agreements with various unrelated tenants for the related office space. Each of these properties is part of Airport Executive Park, a 50-acre office and flex development located in Cleveland, Ohio, which is owned by former executives. Our independent Trustees approved the terms of, and entry into, each of the office lease agreements by the Operating Partnership. The table below shows the office space subject to these lease agreements and certain key provisions, including the term of each lease agreement, the period for which the Operating Partnership may extend the term of each lease agreement, and the minimum and maximum rents payable per month during the term. | ||||||||||||||
Office Space | Approximate | Maturity Date | Period of | Fixed Minimum | Fixed | |||||||||
Square Footage | Extension Option (1) | Rent Per Month | Maximum Rent | |||||||||||
Per Month | ||||||||||||||
The Parkview Building — 6745 Engle Road; and 6751 Engle Road | 21,900 | 12/31/14 | Five-year | $ | 25,673 | $ | 31,205 | |||||||
6745 Engle Road — Suite 100 | 2,212 | 12/31/14 | Five-year | $ | 3,051 | $ | 3,709 | |||||||
6745 Engle Road — Suite 110 | 1,731 | 12/31/14 | Five-year | $ | 2,387 | $ | 2,901 | |||||||
6751 Engle Road — Suites C and D | 3,000 | 12/31/14 | Five-year | $ | 3,137 | $ | 3,771 | |||||||
(1) Our Operating Partnership may extend the lease agreement beyond the termination date by the period set forth in this column at prevailing market rates upon the same terms and conditions contained in each of the lease agreements. | ||||||||||||||
In addition to monthly rent, the office lease agreements provide that our Operating Partnership reimburse for certain maintenance and improvements to the leased office space. The aggregate amount of payments incurred under these lease agreements for each of the three months ended March 31, 2014 and 2013, was approximately $0.1 million. | ||||||||||||||
Total future minimum rental payments due in accordance with the related party lease agreements are $0.4 million and total future cash receipts due from our subtenants are $0.2 million as of March 31, 2014. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS | ' | |||||||
DISCONTINUED OPERATIONS | ' | |||||||
14. DISCONTINUED OPERATIONS | ||||||||
For the three months ended March 31, 2014, discontinued operations relates to real estate tax refunds received as a result of appeals of previous tax assessments on six self-storage facilities that the Company sold in prior years. For the three months ended March 31, 2013, discontinued operations relates to 35 facilities sold during 2013. | ||||||||
The following table summarizes the revenue and expense information for the facilities classified as discontinued operations during the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
REVENUES | ||||||||
Rental income | $ | - | $ | 3,755 | ||||
Other property related income | - | 509 | ||||||
Total revenues | - | 4,264 | ||||||
OPERATING EXPENSES | ||||||||
Property operating expenses | -336 | 1,881 | ||||||
Depreciation and amortization | - | 907 | ||||||
Total operating expenses | -336 | 2,788 | ||||||
OPERATING INCOME | 336 | 1,476 | ||||||
OTHER (EXPENSE) INCOME | ||||||||
Interest expense on loans | - | -95 | ||||||
Gain on disposition of discontinued operations | - | 228 | ||||||
Total discontinued operations | $ | 336 | $ | 1,609 |
PRO_FORMA_FINANCIAL_INFORMATIO
PRO FORMA FINANCIAL INFORMATION | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PRO FORMA FINANCIAL INFORMATION | ' | |||||||
PRO FORMA FINANCIAL INFORMATION | ' | |||||||
15. PRO FORMA FINANCIAL INFORMATION | ||||||||
During the three months ended March 31, 2014 and the year ended December 31, 2013, the Company acquired 10 self-storage facilities for an aggregate purchase price of approximately $103.3 million (see note 4) and 20 self-storage facilities for an aggregate purchase price of approximately $189.8 million, respectively. | ||||||||
The condensed consolidated pro forma financial information set forth below reflects adjustments to the Company’s historical financial data to give effect to each of the acquisitions and related financing activity (including the issuance of common shares) that occurred during 2014 and 2013 as if each had occurred as of January 1, 2013 and 2012, respectively. The pro forma information presented below does not purport to represent what the Company’s actual results of operations would have been for the periods indicated, nor does it purport to represent the Company’s future results of operations. | ||||||||
The following table summarizes, on a pro forma basis, the Company’s consolidated results of operations for the three months ended March 31, 2014 and 2013 based on the assumptions described above: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Pro forma revenues | $ | 88,323 | $ | 81,588 | ||||
Pro forma net income attributable to the Company’s common shareholders | $ | 8,383 | $ | 1,808 | ||||
Earnings (loss) per share from continuing operations attributable to common shareholders | ||||||||
Basic and diluted - as reported | $ | 0.02 | $ | -0.01 | ||||
Basic and diluted - as pro forma | $ | 0.06 | $ | 0.01 |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
SUBSEQUENT EVENTS | ' |
SUBSEQUENT EVENTS | ' |
16. SUBSEQUENT EVENTS | |
Subsequent to March 31, 2014, the Company acquired one facility in Texas, one facility in Florida and one facility in Massachusetts for an aggregate purchase price of $29.0 million. In addition, the Company entered into an agreement to acquire two existing storage facilities and two storage facilities under construction for an aggregate purchase price of $141.5 million. The two existing facilities and one of the facilities under construction are located in Brooklyn, New York, and the other facility under construction is located in Queens, New York. On April 16, 2014, the Company closed on the acquisition of the two existing facilities for an aggregate purchase price of $55.0 million. The Company’s obligation to close on each of the two facilities under construction is subject to completion of construction and issuance of a certificate of occupancy for each such facility as well as other customary closing conditions. Construction for the Queens facility is expected to be completed during 2014 while the construction for the Brooklyn facility is expected to be completed during 2015. The Company provides no assurances that it will complete the acquisitions of the facilities under construction as anticipated or at all. | |
On May 1, 2014, HHF, an unconsolidated joint venture (as discussed in note 5), obtained a $100 million loan secured by the 34 self-storage facilities owned by the venture. There is no recourse to the Company. The loan bears interest at 3.59% per annum and matures on April 30, 2021. This financing completed the planned capital structure of HHF and the proceeds after closing costs were distributed proportionately to the partners. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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 SEC regarding interim financial reporting and, in the opinion of each of the Parent Company’s and Operating Partnership’s respective management, include all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for each respective company for the interim periods presented in accordance with generally accepted accounting principles in the United States (“GAAP”). Accordingly, readers of this Quarterly Report on Form 10-Q should refer to the Parent Company’s and the Operating Partnership’s audited financial statements prepared in accordance with GAAP, and the related notes thereto, for the year ended December 31, 2013, which are included in the Parent Company’s and the Operating Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 and 2013 are not necessarily indicative of the results of operations to be expected for any future period or the full year. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (“FASB”) issued an update to the accounting standard for the reporting of discontinued operations. The update redefines discontinued operations, changing the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. This amendment becomes effective for annual periods beginning on or after December 15, 2014, and interim periods beginning on or after December 15, 2015; however, early adoption is permitted. The adoption of this guidance in 2014 did not have a material impact on the Company’s consolidated financial position or results of operations because the Company did not dispose of any assets during the three months ended March 31, 2014. |
STORAGE_FACILITIES_Tables
STORAGE FACILITIES (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
STORAGE FACILITIES | ' | |||||||||
Summary of real estate assets | ' | |||||||||
March 31, | December 31, | |||||||||
2014 | 2013 | |||||||||
(in thousands) | ||||||||||
Land | $ | 480,296 | $ | 465,680 | ||||||
Buildings and improvements | 1,980,005 | 1,888,823 | ||||||||
Equipment | 167,665 | 158,000 | ||||||||
Construction in progress | 32,853 | 41,203 | ||||||||
Storage facilities | 2,660,819 | 2,553,706 | ||||||||
Less: Accumulated depreciation | -419,460 | -398,536 | ||||||||
Storage facilities, net | $ | 2,241,359 | $ | 2,155,170 | ||||||
Schedule of acquisitions and dispositions of real estate assets | ' | |||||||||
Facility/Portfolio | Location | Transaction Date | Number of | Purchase / Sales | ||||||
Facilities | Price (in | |||||||||
thousands) | ||||||||||
2014 Acquisitions: | ||||||||||
Manchester Asset | Manchester, CT | January 2014 | 1 | $ | 4,950 | |||||
Coconut Creek Asset | Coconut Creek, FL | January 2014 | 1 | 14,000 | ||||||
Florida Assets | Palm Coast, FL | January 2014 | 2 | 14,450 | ||||||
Fremont Asset | Fremont, CA | January 2014 | 1 | 8,300 | ||||||
Temple Hills Asset | Temple Hills, MD | February 2014 | 1 | 15,800 | ||||||
Timonium Asset | Timonium, MD | February 2014 | 1 | 15,500 | ||||||
Phoenix Asset | Phoenix, AZ | March 2014 | 1 | 14,750 | ||||||
Philadelphia Asset | Philadelphia, PA | March 2014 | 1 | 7,350 | ||||||
Frisco Asset | Frisco, TX | March 2014 | 1 | 8,225 | ||||||
10 | $ | 103,325 | ||||||||
2013 Acquisitions: | ||||||||||
Gilbert Asset | Gilbert, AZ | March 2013 | 1 | $ | 6,900 | |||||
Evanston Asset | Evanston, IL | May 2013 | 1 | 8,300 | ||||||
Delray Beach Asset | Delray Beach, FL | May 2013 | 1 | 7,150 | ||||||
Miramar Asset | Miramar, FL | June 2013 | 1 | 9,000 | ||||||
Stoneham Asset | Stoneham, MA | June 2013 | 1 | 10,600 | ||||||
Maryland/New Jersey Assets | Multiple locations in MD and NJ | June 2013 | 5 | 52,400 | ||||||
Staten Island Asset | Staten Island, NY | July 2013 | 1 | 13,000 | ||||||
Lewisville Asset | Lewisville, TX | August 2013 | 1 | 10,975 | ||||||
Chandler Asset | Chandler, AZ | September 2013 | 1 | 10,500 | ||||||
Tempe Asset | Tempe, AZ | September 2013 | 1 | 4,300 | ||||||
Clinton Asset | Clinton, MD | November 2013 | 1 | 15,375 | ||||||
Katy Asset | Katy, TX | November 2013 | 1 | 9,700 | ||||||
Richmond Asset | Richmond, TX | December 2013 | 1 | 10,497 | ||||||
Dallas Asset | Dallas, TX | December 2013 | 1 | 6,925 | ||||||
Elkridge Asset | Elkridge, MD | December 2013 | 1 | 8,200 | ||||||
Fort Lauderdale Asset | Fort Lauderdale, FL | December 2013 | 1 | 6,000 | ||||||
20 | $ | 189,822 | ||||||||
2013 Dispositions: | ||||||||||
Texas/Indiana Assets | Multiple locations in TX and IN | March 2013 | 5 | $ | 11,400 | |||||
Tennessee Assets | Multiple locations in TN | August 2013 | 8 | 25,000 | ||||||
California/Tennessee/Texas Assets | Multiple locations in CA, TN and TX | October/November 2013 | 22 | 90,000 | ||||||
35 | $ | 126,400 |
INVESTMENT_ACTIVITY_Tables
INVESTMENT ACTIVITY (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT ACTIVITY | ' | |||||||
Schedule of revenue and earnings from acquisitions since the acquisition dates included in consolidated income statement | ' | |||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Total revenue | $ | 1,357 | $ | 33 | ||||
Net loss | -799 | -52 | ||||||
INVESTMENT_IN_UNCONSOLIDATED_R1
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE | ' | |||||||
Summary of the financial position of the HHF venture | ' | |||||||
The following is a summary of the financial position of the HHF venture as of March 31, 2014 and December 31, 2013, respectively (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Assets | ||||||||
Net property | $ | 299,318 | $ | 302,557 | ||||
Other assets | 12,189 | 11,688 | ||||||
Total Assets | $ | 311,507 | $ | 314,245 | ||||
Liabilities and equity | ||||||||
Other liabilities | $ | 2,573 | $ | 1,625 | ||||
Equity: | ||||||||
CubeSmart | 154,467 | 156,310 | ||||||
Joint venture partner | 154,467 | 156,310 | ||||||
Total Liabilities and equity | $ | 311,507 | $ | 314,245 | ||||
Summary of results of operations of the Real Estate Venture | ' | |||||||
The following is a summary of results of operations of the real estate venture for the three months ended March 31, 2014 (in thousands): | ||||||||
Three months | ||||||||
ended March 31, | ||||||||
2014 | ||||||||
Revenue | $ | 6,520 | ||||||
Operating expenses | 2,778 | |||||||
Depreciation and amortization | 6,480 | |||||||
Net loss | -2,738 | |||||||
Company’s share of net loss | -1,369 | |||||||
REVOLVING_CREDIT_FACILITY_AND_1
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS | ' | |||||||||||
Schedule of amendment of the term loan facility | ' | |||||||||||
Term Loan Facility | Term Loan Facility | |||||||||||
Prior to Amendment | As Amended | |||||||||||
Amount | Maturity Date | LIBOR Spread | Maturity Date | LIBOR Spread | ||||||||
Term Loan A | $100 million | June 2016 | 1.85% | June 2018 | 1.50% | |||||||
Term Loan B | $100 million | June 2018 | 2.00% | June 2018 | 2.00% | |||||||
Schedule of amendment of the credit facility | ' | |||||||||||
Credit Facility | Credit Facility | |||||||||||
Prior to Amendment | As Amended | |||||||||||
Amount | Maturity Date | LIBOR Spread | Maturity Date | LIBOR Spread | ||||||||
Revolver | $300 million | December 2015 | 1.80% | June 2017 | 1.60% | |||||||
Term Loan C (1) | $100 million | December 2014 | 1.75% | December 2014 | 1.50% | |||||||
Term Loan D | $200 million | March 2017 | 1.75% | January 2019 | 1.50% | |||||||
(1) On December 17, 2013, the Company repaid the $100 million balance under Term Loan C that was scheduled to mature in December 2014. |
MORTGAGE_LOANS_AND_NOTES_PAYAB1
MORTGAGE LOANS AND NOTES PAYABLE (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
MORTGAGE LOANS AND NOTES PAYABLE | ' | |||||||||||
Summary of mortgage loans and notes payable | ' | |||||||||||
Carrying Value as of: | ||||||||||||
March 31, | December 31, | Effective | Maturity | |||||||||
Mortgage Loans and Notes Payable | 2014 | 2013 | Interest Rate | Date | ||||||||
(dollars in thousands) | ||||||||||||
YSI 61 | 2,355 | - | 2.53% | 14-Sep | ||||||||
YSI 10 | 3,816 | 3,839 | 5.87% | 15-Jan | ||||||||
YSI 15 | 1,719 | 1,733 | 6.41% | 15-Jan | ||||||||
YSI 52 | 4,504 | 4,548 | 5.63% | 15-Jan | ||||||||
YSI 58 | 8,597 | 8,676 | 2.97% | 15-Jan | ||||||||
YSI 29 | 12,797 | 12,853 | 3.69% | 15-Aug | ||||||||
YSI 13 | 8,500 | 8,500 | 3.00% | 15-Oct | ||||||||
YSI 20 | 55,815 | 56,373 | 5.97% | 15-Nov | ||||||||
YSI 63 | 7,520 | - | 2.82% | 15-Dec | ||||||||
YSI 59 | 9,368 | 9,418 | 4.82% | 16-Mar | ||||||||
YSI 60 | 3,654 | 3,670 | 5.04% | 16-Aug | ||||||||
YSI 51 | 7,189 | 7,219 | 5.15% | 16-Sep | ||||||||
YSI 64 | 8,015 | - | 3.54% | 16-Oct | ||||||||
YSI 62 | 8,050 | - | 3.54% | 16-Dec | ||||||||
YSI 35 | 4,247 | 4,274 | 6.90% | 19-Jul | (a) | |||||||
YSI 33 | 10,625 | 10,688 | 6.42% | 19-Jul | ||||||||
YSI 26 | 8,903 | 8,945 | 4.56% | 20-Nov | ||||||||
YSI 57 | 3,126 | 3,140 | 4.61% | 20-Nov | ||||||||
YSI 55 | 24,048 | 24,145 | 4.85% | 21-Jun | ||||||||
YSI 24 | 28,359 | 28,523 | 4.64% | 21-Jun | ||||||||
Unamortized fair value adjustment | 4,818 | 3,674 | ||||||||||
Total mortgage loans and notes payable | $ | 226,025 | $ | 200,218 | ||||||||
(a) This borrowing has a fixed interest rate for the first five-years of the term, and the rate then resets and remains constant over the final five-years of the loan term. | ||||||||||||
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 at March 31, 2014 (in thousands): | ||||||||||||
2014 | $ | 6,538 | ||||||||||
2015 | 103,121 | |||||||||||
2016 | 36,957 | |||||||||||
2017 | 1,915 | |||||||||||
2018 | 2,026 | |||||||||||
2019 and thereafter | 70,650 | |||||||||||
Total mortgage payments | 221,207 | |||||||||||
Plus: Unamortized fair value adjustment | 4,818 | |||||||||||
Total mortgage indebtedness | $ | 226,025 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | ||||||||||
Summary of changes in accumulated other comprehensive loss by component | ' | ||||||||||
The following table summarizes the changes in accumulated other comprehensive loss by component for the three months ended March 31, 2014 (dollars in thousands): | |||||||||||
Unrealized losses | Unrealized loss on | Total | |||||||||
on interest rate | foreign currency | ||||||||||
swaps | translation | ||||||||||
Balance at December 31, 2013 | $ | -10,222 | $ | -792 | $ | -11,014 | |||||
Other comprehensive (loss) gain before reclassifications | -968 | 71 | -897 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | 1,551 | - | 1,551 | ||||||||
Net current-period other comprehensive gain | 583 | 71 | 654 | ||||||||
Balance at March 31, 2014 | $ | -9,639 | $ | -721 | $ | -10,360 | |||||
(a) See note 10 for additional information about the effects of the amounts reclassified. |
RISK_MANAGEMENT_AND_USE_OF_FIN1
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS | ' | ||||||||||||||||||
Summary of terms and fair values of the derivative financial instruments | ' | ||||||||||||||||||
The following table summarizes the terms and fair values of the Company’s derivative financial instruments at March 31, 2014 and December 31, 2013, respectively (dollars in thousands): | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Hedge | Notional | March 31, | December 31, | ||||||||||||||||
Product | Hedge Type (a) | Amount | Strike | Effective Date | Maturity | 2014 | 2013 | ||||||||||||
Swap | Cash flow | $ | 40,000 | 1.80% | 6/20/11 | 6/20/16 | $ | -1,154 | $ | -1,265 | |||||||||
Swap | Cash flow | $ | 40,000 | 1.80% | 6/20/11 | 6/20/16 | -1,154 | -1,265 | |||||||||||
Swap | Cash flow | $ | 20,000 | 1.80% | 6/20/11 | 6/20/16 | -577 | -632 | |||||||||||
Swap | Cash flow | $ | 75,000 | 1.34% | 12/30/11 | 3/31/17 | -1,073 | -1,132 | |||||||||||
Swap | Cash flow | $ | 50,000 | 1.34% | 12/30/11 | 3/31/17 | -714 | -752 | |||||||||||
Swap | Cash flow | $ | 50,000 | 1.34% | 12/30/11 | 3/31/17 | -715 | -754 | |||||||||||
Swap | Cash flow | $ | 25,000 | 1.34% | 12/30/11 | 3/31/17 | -359 | -380 | |||||||||||
Swap | Cash flow | $ | 40,000 | 2.46% | 6/20/11 | 6/20/18 | -1,758 | -1,820 | |||||||||||
Swap | Cash flow | $ | 40,000 | 2.47% | 6/20/11 | 6/20/18 | -1,777 | -1,842 | |||||||||||
Swap | Cash flow | $ | 20,000 | 2.48% | 6/20/11 | 6/20/18 | -890 | -921 | |||||||||||
$ | 400,000 | $ | -10,171 | $ | -10,763 | ||||||||||||||
(a) Hedging unsecured variable rate debt by fixing 30-day LIBOR. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||
Schedule of financial assets and liabilities carried at fair value | ' | ||||||||||
Financial assets and liabilities carried at fair value as of March 31, 2014 are classified in the table below in one of the three categories described above (dollars in thousands): | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Interest Rate Swap Derivative Liabilities | $ | - | $ | 10,171 | $ | - | |||||
Total liabilities at fair value | $ | - | $ | 10,171 | $ | - | |||||
Financial assets and liabilities carried at fair value as of December 31, 2013 are classified in the table below in one of the three categories described above (dollars in thousands): | |||||||||||
Level 1 | Level 2 | Level 3 | |||||||||
Interest Rate Swap Derivative Liabilities | $ | - | $ | 10,763 | $ | - | |||||
Total liabilities at fair value | $ | - | $ | 10,763 | $ | - |
RELATED_PARTY_TRANSACTIONS_Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
RELATED PARTY TRANSACTIONS | ' | |||||||||||||
Schedule of office space subject to lease agreement with related parties | ' | |||||||||||||
Office Space | Approximate | Maturity Date | Period of | Fixed Minimum | Fixed | |||||||||
Square Footage | Extension Option (1) | Rent Per Month | Maximum Rent | |||||||||||
Per Month | ||||||||||||||
The Parkview Building — 6745 Engle Road; and 6751 Engle Road | 21,900 | 12/31/14 | Five-year | $ | 25,673 | $ | 31,205 | |||||||
6745 Engle Road — Suite 100 | 2,212 | 12/31/14 | Five-year | $ | 3,051 | $ | 3,709 | |||||||
6745 Engle Road — Suite 110 | 1,731 | 12/31/14 | Five-year | $ | 2,387 | $ | 2,901 | |||||||
6751 Engle Road — Suites C and D | 3,000 | 12/31/14 | Five-year | $ | 3,137 | $ | 3,771 | |||||||
(1) Our Operating Partnership may extend the lease agreement beyond the termination date by the period set forth in this column at prevailing market rates upon the same terms and conditions contained in each of the lease agreements. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
DISCONTINUED OPERATIONS | ' | |||||||
Summary of information about revenue and expense related to properties classified as discontinued operations | ' | |||||||
The following table summarizes the revenue and expense information for the facilities classified as discontinued operations during the three months ended March 31, 2014 and 2013 (in thousands): | ||||||||
Three months ended March 31, | ||||||||
2014 | 2013 | |||||||
REVENUES | ||||||||
Rental income | $ | - | $ | 3,755 | ||||
Other property related income | - | 509 | ||||||
Total revenues | - | 4,264 | ||||||
OPERATING EXPENSES | ||||||||
Property operating expenses | -336 | 1,881 | ||||||
Depreciation and amortization | - | 907 | ||||||
Total operating expenses | -336 | 2,788 | ||||||
OPERATING INCOME | 336 | 1,476 | ||||||
OTHER (EXPENSE) INCOME | ||||||||
Interest expense on loans | - | -95 | ||||||
Gain on disposition of discontinued operations | - | 228 | ||||||
Total discontinued operations | $ | 336 | $ | 1,609 |
PRO_FORMA_FINANCIAL_INFORMATIO1
PRO FORMA FINANCIAL INFORMATION (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
PRO FORMA FINANCIAL INFORMATION | ' | |||||||
Schedule of consolidated results of operations on a pro forma basis | ' | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except per share data) | ||||||||
Pro forma revenues | $ | 88,323 | $ | 81,588 | ||||
Pro forma net income attributable to the Company’s common shareholders | $ | 8,383 | $ | 1,808 | ||||
Earnings (loss) per share from continuing operations attributable to common shareholders | ||||||||
Basic and diluted - as reported | $ | 0.02 | $ | -0.01 | ||||
Basic and diluted - as pro forma | $ | 0.06 | $ | 0.01 |
ORGANIZATION_AND_NATURE_OF_OPE1
ORGANIZATION AND NATURE OF OPERATIONS (Details) | 3 Months Ended |
Mar. 31, 2014 | |
segment | |
state | |
ORGANIZATION AND NATURE OF OPERATIONS | ' |
Number of states in which self-storage facilities are located | 20 |
Number of reportable segments | 1 |
Percentage of the entity's partnership interest in Operating Partnership | 98.40% |
Common stock, conversion ratio | 1 |
STORAGE_FACILITIES_Details
STORAGE FACILITIES (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
STORAGE FACILITIES | ' | ' |
Storage facilities | $2,660,819 | $2,553,706 |
Less: Accumulated depreciation | -419,460 | -398,536 |
Storage facilities, net (including VIE assets of $41,624 and $34,559, respectively) | 2,241,359 | 2,155,170 |
Land | ' | ' |
STORAGE FACILITIES | ' | ' |
Storage facilities | 480,296 | 465,680 |
Buildings and improvements | ' | ' |
STORAGE FACILITIES | ' | ' |
Storage facilities | 1,980,005 | 1,888,823 |
Equipment | ' | ' |
STORAGE FACILITIES | ' | ' |
Storage facilities | 167,665 | 158,000 |
Construction in progress | ' | ' |
STORAGE FACILITIES | ' | ' |
Storage facilities | $32,853 | $41,203 |
STORAGE_FACILITIES_Details_2
STORAGE FACILITIES (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
property | property | |
Acquisitions | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 10 | 20 |
Purchase / Sales Price | $103,325 | $189,822 |
Acquisitions | Manchester Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 4,950 | ' |
Acquisitions | Coconut Creek Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 14,000 | ' |
Acquisitions | Florida Assets | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 2 | ' |
Purchase / Sales Price | 14,450 | ' |
Acquisitions | Fremont Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 8,300 | ' |
Acquisitions | Temple Hills Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 15,800 | ' |
Acquisitions | Timonium Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 15,500 | ' |
Acquisitions | Phoenix Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 14,750 | ' |
Acquisitions | Philadelphia Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 7,350 | ' |
Acquisitions | Frisco Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | 1 | ' |
Purchase / Sales Price | 8,225 | ' |
Acquisitions | Gilbert Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 6,900 |
Acquisitions | Evanston Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 8,300 |
Acquisitions | Delray Beach Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 7,150 |
Acquisitions | Miramar Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 9,000 |
Acquisitions | Stoneham Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 10,600 |
Acquisitions | Maryland/New Jersey Assets | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 5 |
Purchase / Sales Price | ' | 52,400 |
Acquisitions | Staten Island Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 13,000 |
Acquisitions | Lewisville Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 10,975 |
Acquisitions | Chandler Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 10,500 |
Acquisitions | Tempe Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 4,300 |
Acquisitions | Clinton Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 15,375 |
Acquisitions | Katy Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 9,700 |
Acquisitions | Richmond Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 10,497 |
Acquisitions | Dallas Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 6,925 |
Acquisitions | Elkridge Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 8,200 |
Acquisitions | Fort Lauderdale Asset | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, acquisitions (in properties) | ' | 1 |
Purchase / Sales Price | ' | 6,000 |
Dispositions | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, dispositions (in properties) | ' | 35 |
Purchase / Sales Price | ' | 126,400 |
Dispositions | Texas/Indiana Assets | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, dispositions (in properties) | ' | 5 |
Purchase / Sales Price | ' | 11,400 |
Dispositions | Tennessee Assets | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, dispositions (in properties) | ' | 8 |
Purchase / Sales Price | ' | 25,000 |
Dispositions | California/Tennessee/Texas Assets | ' | ' |
STORAGE FACILITIES | ' | ' |
Number of Facilities, dispositions (in properties) | ' | 22 |
Purchase / Sales Price | ' | $90,000 |
INVESTMENT_ACTIVITY_Details
INVESTMENT ACTIVITY (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | |
Bronx, NY | 5 Old Lancaster Road located in Malvern, PA | Self-storage facilities located in New York and Virginia | Self-storage facilities located in New York | Self-storage facility located in Virginia | Self-storage facilities | Self-storage facilities | Self-storage facilities | Self-storage facilities | Self-storage facilities | |||
facility | facility | property | property | 2014 Acquisitions | 2013 Acquisitions | 2013 Acquisitions | ||||||
property | property | |||||||||||
Self-storage facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of self-storage facilities acquired (in properties) | ' | ' | ' | ' | ' | ' | ' | 10 | 20 | 10 | ' | 20 |
Aggregate purchase price of acquisition | ' | ' | ' | ' | ' | ' | ' | $103,300,000 | $189,800,000 | $103,300,000 | ' | $189,800,000 |
Intangible value of the in-place leases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,400,000 | ' | 13,500,000 |
Estimated life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | '12 months |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 3,300,000 | ' |
Number of properties, assumed mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Assumed mortgage debt, at fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | ' | 8,900,000 |
Outstanding principal balance of mortgage debt assumed on acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | ' | 8,500,000 |
Premium on debt assumed on acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | 400,000 |
Development costs | ' | ' | 17,000,000 | 24,600,000 | 22,200,000 | ' | ' | ' | ' | ' | ' | ' |
Number of self-storage facilities | ' | ' | ' | ' | ' | 3 | 1 | ' | ' | ' | ' | ' |
Summary of the amounts of revenue and earnings of the 2014 acquisitions since the acquisition dates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenue | 1,357,000 | 33,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | ($799,000) | ($52,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENT_IN_UNCONSOLIDATED_R2
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Details) (USD $) | 0 Months Ended | 3 Months Ended | |
Dec. 10, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | |
property | |||
Summary of results of operations of the real estate venture | ' | ' | ' |
Company's share of net loss | ' | ($1,369,000) | ' |
HHF | ' | ' | ' |
Investment in Unconsolidated Real Estate Venture | ' | ' | ' |
Ownership interest in partnership (as a percent) | 50.00% | ' | ' |
Number of storage facilities owned by investee | 35 | ' | ' |
Payment made for acquisition of interest in real estate ventures | 315,700,000 | ' | ' |
Assets | ' | ' | ' |
Net property | ' | 299,318,000 | 302,557,000 |
Other assets | ' | 12,189,000 | 11,688,000 |
Total Assets | ' | 311,507,000 | 314,245,000 |
Liabilities and equity | ' | ' | ' |
Other liabilities | ' | 2,573,000 | 1,625,000 |
Equity: | ' | ' | ' |
CubeSmart | ' | 154,467,000 | 156,310,000 |
Joint venture partner | ' | 154,467,000 | 156,310,000 |
Total Liabilities and equity | ' | 311,507,000 | 314,245,000 |
Summary of results of operations of the real estate venture | ' | ' | ' |
Revenue | ' | 6,520,000 | ' |
Operating expenses | ' | 2,778,000 | ' |
Depreciation and amortization | ' | 6,480,000 | ' |
Net loss | ' | -2,738,000 | ' |
Company's share of net loss | ' | ($1,369,000) | ' |
HHF | Facilitates located in Texas | ' | ' | ' |
Investment in Unconsolidated Real Estate Venture | ' | ' | ' |
Number of storage facilities owned by investee | 34 | ' | ' |
HHF | Facilitates located in North Carolina | ' | ' | ' |
Investment in Unconsolidated Real Estate Venture | ' | ' | ' |
Number of storage facilities owned by investee | 1 | ' | ' |
UNSECURED_SENIOR_NOTES_Details
UNSECURED SENIOR NOTES (Details) (USD $) | Dec. 17, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 26, 2012 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Senior notes 4.375% due December 15, 2023 | Senior notes 4.375% due December 15, 2023 | Senior notes 4.375% due December 15, 2023 | Senior notes 4.80% due July 15, 2022 | Senior notes 4.80% due July 15, 2022 | Senior notes 4.80% due July 15, 2022 |
Maximum | Minimum | Maximum | Minimum | |||
Senior Notes | ' | ' | ' | ' | ' | ' |
Senior notes, principal amount | $250 | ' | ' | $250 | ' | ' |
Senior notes, interest rate (as a percent) | 4.38% | ' | ' | 4.80% | ' | ' |
Consolidated leverage ratio | ' | 0.6 | ' | ' | 0.6 | ' |
Consolidated interest coverage ratio | ' | ' | 1.5 | ' | ' | 1.5 |
Secured debt leverage ratio | ' | 0.4 | ' | ' | 0.4 | ' |
Financial and customary covenant, minimum unencumbered asset (as a percent) | ' | ' | 150.00% | ' | ' | 150.00% |
REVOLVING_CREDIT_FACILITY_AND_2
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Mar. 31, 2014 | Jun. 18, 2013 | Jun. 20, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 20, 2011 | Mar. 31, 2014 | Jun. 18, 2013 | Jun. 20, 2011 | Mar. 31, 2014 | Jun. 18, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Jun. 18, 2013 | Mar. 31, 2014 | Dec. 09, 2011 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Jun. 18, 2013 | Dec. 09, 2011 | Dec. 17, 2013 | Mar. 31, 2014 | Jun. 18, 2013 | Dec. 09, 2011 | Mar. 31, 2014 | Jun. 18, 2013 | Dec. 09, 2011 | Mar. 31, 2014 | Mar. 31, 2014 |
Term Loan Facility, Prior to Amendment | Term Loan Facility, Prior to Amendment | Term Loan Facility, As Amended | Term Loan Facility, As Amended | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Term Loan Facility | Credit Facility, Prior to Amendment | Credit Facility, Prior to Amendment | Credit Facility, Prior to Amendment | Credit Facility, As Amended | Credit Facility, As Amended | Credit Facility, As Amended | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | Credit Facility | |||
Term Loan A | Term Loan B | Term Loan A | Term Loan B | Interest rate swap agreement | Minimum | Maximum | Term Loan A | Term Loan A | Term Loan A | Term Loan B | Term Loan B | Term Loan B | Term Loan C | Unsecured term loan | Revolver | Term Loan C | Term Loan D | Revolver | Term Loan C | Term Loan D | Minimum | Maximum | Revolver | Revolver | Revolver | Term Loan C | Term Loan C | Term Loan C | Term Loan C | Term Loan D | Term Loan D | Term Loan D | Unsecured term loan | Unsecured revolving credit facility | ||||||||
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100,000,000 | ' | $100,000,000 | $100,000,000 | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000,000 | $300,000,000 | ' | ' | $100,000,000 | $100,000,000 | ' | $200,000,000 | $200,000,000 | ' | ' |
Term of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan procurement costs capitalized | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate, basis spread (as a percent) | ' | ' | 1.85% | 2.00% | 1.50% | 2.00% | ' | ' | ' | ' | ' | ' | ' | 1.50% | ' | ' | 2.00% | ' | ' | ' | 1.80% | 1.75% | 1.75% | 1.60% | 1.50% | 1.50% | ' | ' | ' | ' | 1.60% | ' | ' | ' | 1.50% | ' | ' | 1.50% | ' | ' | ' | ' |
Variable interest rate basis | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | 'LIBOR | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | 'LIBOR | ' | ' | ' | ' |
Variable interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | ' | ' | ' | 0.00% | ' | ' | 0.00% | ' | ' | ' | ' |
Facility fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of outstanding debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Loan procurement amortization expense - early repayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured term loan borrowings outstanding | 400,000,000 | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | 70,600,000 |
Remaining borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 229,200,000 |
Outstanding letter of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, variable interest rate base | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Thirty day LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective weighted average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 3.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.12% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total indebtedness to total asset value ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tangible net worth | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $821,211,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $821,211,200 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from equity issuances added to minimum tangible net worth (as a percent) | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of funds from operations that can be distributed on common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
MORTGAGE_LOANS_AND_NOTES_PAYAB2
MORTGAGE LOANS AND NOTES PAYABLE (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Mortgage loans and notes payable | ' | ' |
Carrying value | $221,207 | ' |
Unamortized fair value adjustment | 4,818 | 3,674 |
Total mortgage loans and notes payable | 226,025 | 200,218 |
Net book value of self-storage facilities | 2,241,359 | 2,155,170 |
YSI 61 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 2,355 | ' |
Effective interest rate (as a percent) | 2.53% | ' |
YSI 10 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 3,816 | 3,839 |
Effective interest rate (as a percent) | 5.87% | ' |
YSI 15 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 1,719 | 1,733 |
Effective interest rate (as a percent) | 6.41% | ' |
YSI 52 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 4,504 | 4,548 |
Effective interest rate (as a percent) | 5.63% | ' |
YSI 58 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 8,597 | 8,676 |
Effective interest rate (as a percent) | 2.97% | ' |
YSI 29 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 12,797 | 12,853 |
Effective interest rate (as a percent) | 3.69% | ' |
YSI 13 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 8,500 | 8,500 |
Effective interest rate (as a percent) | 3.00% | ' |
YSI 20 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 55,815 | 56,373 |
Effective interest rate (as a percent) | 5.97% | ' |
YSI 63 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 7,520 | ' |
Effective interest rate (as a percent) | 2.82% | ' |
YSI 59 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 9,368 | 9,418 |
Effective interest rate (as a percent) | 4.82% | ' |
YSI 60 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 3,654 | 3,670 |
Effective interest rate (as a percent) | 5.04% | ' |
YSI 51 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 7,189 | 7,219 |
Effective interest rate (as a percent) | 5.15% | ' |
YSI 64 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 8,015 | ' |
Effective interest rate (as a percent) | 3.54% | ' |
YSI 62 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 8,050 | ' |
Effective interest rate (as a percent) | 3.54% | ' |
YSI 35 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 4,247 | 4,274 |
Effective interest rate (as a percent) | 6.90% | ' |
Fixed interest rate period | '5 years | ' |
Constant interest rate period | '5 years | ' |
YSI 33 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 10,625 | 10,688 |
Effective interest rate (as a percent) | 6.42% | ' |
YSI 26 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 8,903 | 8,945 |
Effective interest rate (as a percent) | 4.56% | ' |
YSI 57 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 3,126 | 3,140 |
Effective interest rate (as a percent) | 4.61% | ' |
YSI 55 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 24,048 | 24,145 |
Effective interest rate (as a percent) | 4.85% | ' |
YSI 24 | ' | ' |
Mortgage loans and notes payable | ' | ' |
Carrying value | 28,359 | 28,523 |
Effective interest rate (as a percent) | 4.64% | ' |
Mortgage Loans | ' | ' |
Mortgage loans and notes payable | ' | ' |
Net book value of self-storage facilities | $411,000 | $371,000 |
MORTGAGE_LOANS_AND_NOTES_PAYAB3
MORTGAGE LOANS AND NOTES PAYABLE (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end | ' | ' |
2014 | $6,538,000 | ' |
2015 | 103,121,000 | ' |
2016 | 36,957,000 | ' |
2017 | 1,915,000 | ' |
2018 | 2,026,000 | ' |
2019 and thereafter | 70,650,000 | ' |
Total mortgage payments | 221,207,000 | ' |
Plus: Unamortized fair value adjustment | 4,818,000 | ' |
Total mortgage indebtedness | 226,025,000 | 200,218,000 |
Credit Facility | ' | ' |
Mortgage loans and notes payable | ' | ' |
Remaining borrowing capacity | $229,200,000 | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Changes in accumulated other comprehensive income by component | ' |
Beginning balance | ($11,014) |
Other comprehensive (loss) gain before reclassifications | -897 |
Amounts reclassified from accumulated other comprehensive loss | 1,551 |
Net current-period other comprehensive gain | 654 |
Ending balance | -10,360 |
Unrealized losses on interest rate swaps | ' |
Changes in accumulated other comprehensive income by component | ' |
Beginning balance | -10,222 |
Other comprehensive (loss) gain before reclassifications | -968 |
Amounts reclassified from accumulated other comprehensive loss | 1,551 |
Net current-period other comprehensive gain | 583 |
Ending balance | -9,639 |
Unrealized loss on foreign currency translation | ' |
Changes in accumulated other comprehensive income by component | ' |
Beginning balance | -792 |
Other comprehensive (loss) gain before reclassifications | 71 |
Net current-period other comprehensive gain | 71 |
Ending balance | ($721) |
RISK_MANAGEMENT_AND_USE_OF_FIN2
RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | |
Derivative financial instruments | ' | ' |
Unrealized losses reclassified from accumulated other comprehensive loss | $1,600,000 | ' |
Designated | Cash flow | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 400,000,000 | ' |
Fair Value | -10,171,000 | -10,763,000 |
Maximum number of days outstanding to have the option to borrow at the LIBOR | '30 days | ' |
Designated | Cash flow | Hedge Product, Swap one | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 40,000,000 | ' |
Swap, Strike rate (as a percent) | 1.80% | ' |
Fair Value | -1,154,000 | -1,265,000 |
Designated | Cash flow | Hedge Product, Swap two | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 40,000,000 | ' |
Swap, Strike rate (as a percent) | 1.80% | ' |
Fair Value | -1,154,000 | -1,265,000 |
Designated | Cash flow | Hedge Product, Swap three | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 20,000,000 | ' |
Swap, Strike rate (as a percent) | 1.80% | ' |
Fair Value | -577,000 | -632,000 |
Designated | Cash flow | Hedge Product, Swap four | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 75,000,000 | ' |
Swap, Strike rate (as a percent) | 1.34% | ' |
Fair Value | -1,073,000 | -1,132,000 |
Designated | Cash flow | Hedge Product, Swap five | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 50,000,000 | ' |
Swap, Strike rate (as a percent) | 1.34% | ' |
Fair Value | -714,000 | -752,000 |
Designated | Cash flow | Hedge Product, Swap six | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 50,000,000 | ' |
Swap, Strike rate (as a percent) | 1.34% | ' |
Fair Value | -715,000 | -754,000 |
Designated | Cash flow | Hedge Product, Swap seven | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 25,000,000 | ' |
Swap, Strike rate (as a percent) | 1.34% | ' |
Fair Value | -359,000 | -380,000 |
Designated | Cash flow | Hedge Product, Swap eight | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 40,000,000 | ' |
Swap, Strike rate (as a percent) | 2.46% | ' |
Fair Value | -1,758,000 | -1,820,000 |
Designated | Cash flow | Hedge Product, Swap nine | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 40,000,000 | ' |
Swap, Strike rate (as a percent) | 2.47% | ' |
Fair Value | -1,777,000 | -1,842,000 |
Designated | Cash flow | Hedge Product, Swap ten | ' | ' |
Derivative financial instruments | ' | ' |
Notional Amount | 20,000,000 | ' |
Swap, Strike rate (as a percent) | 2.48% | ' |
Fair Value | ($890,000) | ($921,000) |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Interest rate swap | Level 2 | Level 2 | Level 2 | Level 2 | |||
item | Interest rate swap | Interest rate swap | |||||
Fair value of financial assets and liabilities carried at fair value | ' | ' | ' | ' | ' | ' | ' |
Derivative Liabilities | ' | ' | ' | ' | ' | $10,171,000 | $10,763,000 |
Total liabilities at fair value | ' | ' | ' | 10,171,000 | 10,763,000 | ' | ' |
Number of counterparties to derivative contracts who experienced significant downgrades in 2014 | ' | ' | 0 | ' | ' | ' | ' |
Aggregate carrying value of total debt | 1,196,600,000 | 1,138,800,000 | ' | ' | ' | ' | ' |
Estimated fair value of total debt | $1,214,000,000 | $1,140,900,000 | ' | ' | ' | ' | ' |
NONCONTROLLING_INTERESTS_Detai
NONCONTROLLING INTERESTS (Details) | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2008 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Jamaica Ave | Jamaica Ave | SNL | SRLLC | USIFB, LLP | USIFB, LLP | USIFB, LLP | USIFB, LLP | |
USD ($) | Jamaica Ave Member | USD ($) | USD ($) | property | USD ($) | USD ($) | GBP (£) | |
USD ($) | item | |||||||
property | ||||||||
Interests in Consolidated Real Estate Joint Ventures | ' | ' | ' | ' | ' | ' | ' | ' |
Option to put ownership interest in the venture | ' | $12.50 | ' | ' | ' | ' | ' | ' |
Period of option to call ownership interest of another member | '1 year | ' | ' | ' | ' | ' | ' | ' |
Period of option to put ownership interest in venture | ' | '1 year | ' | ' | ' | ' | ' | ' |
Option to call ownership interest of another member | 12.5 | ' | ' | ' | ' | ' | ' | ' |
Ownership interest held by the entity (as a percent) | 51.00% | ' | 90.00% | 90.00% | 97.00% | ' | ' | ' |
Minority ownership interest (as a percent) | 49.00% | ' | ' | ' | ' | ' | ' | ' |
Number of entities formed | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of self-storage facilities owned and operated | ' | ' | 2 | ' | 2 | ' | ' | ' |
Total assets | 8.1 | ' | 9 | 13.6 | ' | 11.9 | ' | ' |
Total liabilities | ' | ' | 0.1 | 9.2 | ' | 7.1 | ' | ' |
Carrying amount of mortgage loans | ' | ' | ' | 9.2 | ' | ' | 6.8 | 4.1 |
Amount of mortgage loan commitment | ' | ' | ' | $14.60 | ' | ' | ' | ' |
NONCONTROLLING_INTERESTS_Detai1
NONCONTROLLING INTERESTS (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Operating Partnership Ownership | ' | ' | ' |
Increase to OP units owned by third parties and a corresponding decrease to capital | $3,001 | $2,915 | ' |
Operating Partnership | ' | ' | ' |
Operating Partnership Ownership | ' | ' | ' |
OP Units outstanding which are not owned by the general partner (as a percent) | 1.60% | ' | 1.60% |
OP units outstanding (in shares) | 2,261,486 | ' | 2,275,730 |
Number of trading days used to determine average of the closing prices of the common shares | '10 days | ' | ' |
Increase to OP units owned by third parties and a corresponding decrease to capital | $3,001 | $2,915 | $3,300 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Area of corporate office (in acres) | 50 | ' | ' |
Operating Partnership | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Total future cash receipts due from subtenants | $200,000 | ' | ' |
Lease agreements with related parties | Operating Partnership | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Total future minimum rental payments due with the related party lease agreements | 400,000 | ' | ' |
Lease agreements with related parties | Operating Partnership | Office space subject to lease | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Aggregate amount of lease payments incurred | 100,000 | 100,000 | ' |
Lease agreements with related parties | Operating Partnership | The Parkview Building 6745 Engle Road; and 6751 Engle Road | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Approximate Square Footage | 21,900 | ' | ' |
Period of Extension Option | '5 years | ' | ' |
Lease agreements with related parties | Operating Partnership | The Parkview Building 6745 Engle Road; and 6751 Engle Road | Minimum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 25,673 | ' | ' |
Lease agreements with related parties | Operating Partnership | The Parkview Building 6745 Engle Road; and 6751 Engle Road | Maximum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 31,205 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 100 | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Approximate Square Footage | 2,212 | ' | ' |
Period of Extension Option | '5 years | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 100 | Minimum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 3,051 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 100 | Maximum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 3,709 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 110 | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Approximate Square Footage | 1,731 | ' | ' |
Period of Extension Option | '5 years | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 110 | Minimum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 2,387 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6745 Engle Road Suite 110 | Maximum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 2,901 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6751 Engle Road Suites C and D | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Approximate Square Footage | 3,000 | ' | ' |
Period of Extension Option | '5 years | ' | ' |
Lease agreements with related parties | Operating Partnership | 6751 Engle Road Suites C and D | Minimum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 3,137 | ' | ' |
Lease agreements with related parties | Operating Partnership | 6751 Engle Road Suites C and D | Maximum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Fixed rent per month | 3,771 | ' | ' |
Joint ventures related to affiliated real estate investments | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Management fee | 200,000 | ' | ' |
Ownership interest held by the entity (as a percent) | ' | 0.00% | ' |
Amount due to the entity from joint venture | 1,300,000 | ' | 2,100,000 |
Mortgage loans receivable from consolidated joint ventures | $16,000,000 | ' | $15,800,000 |
Joint ventures related to affiliated real estate investments | Minimum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Management fee (as a percent) | 5.00% | ' | ' |
Joint ventures related to affiliated real estate investments | Maximum | ' | ' | ' |
RELATED PARTY TRANSACTIONS | ' | ' | ' |
Management fee (as a percent) | 6.00% | ' | ' |
DISCONTINUED_OPERATIONS_Detail
DISCONTINUED OPERATIONS (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
facility | facility | |
DISCONTINUED OPERATIONS | ' | ' |
Number of facilities related to discontinued operations | 6 | 35 |
REVENUES | ' | ' |
Rental income | $75,714 | $66,252 |
Other property related income | 10,147 | 7,258 |
Total revenues | 87,267 | 74,655 |
OPERATING EXPENSES | ' | ' |
Property operating expenses | 32,290 | 29,161 |
Depreciation and amortization | 28,115 | 28,982 |
Total operating expenses | 66,974 | 65,756 |
OPERATING INCOME | 20,293 | 8,899 |
OTHER (EXPENSE) INCOME | ' | ' |
Interest expense on loans | -11,871 | -10,272 |
Gain on disposition of discontinued operations | ' | 228 |
Total discontinued operations | 336 | 1,609 |
Discontinued operations | ' | ' |
REVENUES | ' | ' |
Rental income | ' | 3,755 |
Other property related income | ' | 509 |
Total revenues | ' | 4,264 |
OPERATING EXPENSES | ' | ' |
Property operating expenses | -336 | 1,881 |
Depreciation and amortization | ' | 907 |
Total operating expenses | -336 | 2,788 |
OPERATING INCOME | 336 | 1,476 |
OTHER (EXPENSE) INCOME | ' | ' |
Interest expense on loans | ' | -95 |
Gain on disposition of discontinued operations | ' | 228 |
Total discontinued operations | $336 | $1,609 |
PRO_FORMA_FINANCIAL_INFORMATIO2
PRO FORMA FINANCIAL INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Self-storage facilities | Self-storage facilities | |||
property | property | |||
Self-storage facilities | ' | ' | ' | ' |
Number of self-storage facilities acquired (in properties) | ' | ' | 10 | 20 |
Aggregate purchase price of acquisition | ' | ' | $103,300 | $189,800 |
Consolidated results of operations on a pro forma basis | ' | ' | ' | ' |
Pro forma revenues | 88,323 | 81,588 | ' | ' |
Pro forma net income attributable to the Company's common shareholders | $8,383 | $1,808 | ' | ' |
Earnings (loss) per share from continuing operations attributable to common shareholders | ' | ' | ' | ' |
Basic and diluted - as reported (in dollars per share) | $0.02 | ($0.01) | ' | ' |
Basic and diluted - as pro forma (in dollars per share) | $0.06 | $0.01 | ' | ' |
SUBSEQUENT_EVENTS_Details
SUBSEQUENT EVENTS (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||
Dec. 10, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | 1-May-14 | Apr. 16, 2014 | Mar. 31, 2014 | Apr. 16, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
HHF | Acquisitions | Acquisitions | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | |
property | property | property | HHF | Existing storage facilities | Existing storage facilities | Storage facilities under construction | Storage facilities under construction | Texas | Florida | Massachusetts | New York | New York | New York | Texas, Florida and Massachusetts | |
Secured loan due April 2021 | property | property | property | property | property | property | property | Existing storage facilities | Storage facilities under construction | Acquisitions | Acquisitions | ||||
property | Brooklyn, NY | Brooklyn, NY | |||||||||||||
property | property | ||||||||||||||
Subsequent Events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Facilities, acquisitions (in properties) | 35 | 10 | 20 | ' | 2 | 2 | ' | 2 | 1 | 1 | 1 | 2 | 1 | ' | ' |
Aggregate purchase price of acquisition | ' | $103,325,000 | $189,822,000 | ' | $55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $141,500,000 | $29,000,000 |
Number of facilities that Company's obligation to close is subject to completion of construction and issuance of a certificatie of occupancy as well as other customary closing conditions | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from secured loan | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Secured loan, interest rate (as a percent) | ' | ' | ' | 3.59% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of self-storage facilities pledged as security | ' | ' | ' | 34 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_BALANCE_SHEETS_LP
CONSOLIDATED BALANCE SHEETS (LP cube) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Storage facilities | $2,660,819 | $2,553,706 |
Less: Accumulated depreciation | -419,460 | -398,536 |
Storage facilities, net (including VIE assets of $41,624 and $34,559, respectively) | 2,241,359 | 2,155,170 |
Cash and cash equivalents | 3,235 | 3,176 |
Restricted cash | 3,964 | 4,025 |
Loan procurement costs, net of amortization | 12,086 | 12,687 |
Investment in real estate ventures, at equity | 154,467 | 156,310 |
Other assets, net | 27,420 | 27,256 |
Total assets | 2,442,531 | 2,358,624 |
LIABILITIES AND CAPITAL | ' | ' |
Unsecured senior notes | 500,000 | 500,000 |
Revolving credit facility | 70,600 | 38,600 |
Unsecured term loan | 400,000 | 400,000 |
Mortgage loans and notes payable | 226,025 | 200,218 |
Accounts payable, accrued expenses and other liabilities | 49,627 | 57,599 |
Distributions payable | 20,321 | 19,955 |
Deferred revenue | 13,567 | 12,394 |
Security deposits | 387 | 376 |
Total liabilities | 1,280,527 | 1,229,142 |
Limited Partnership interest of third parties | 38,807 | 36,275 |
Commitments and contingencies | ' | ' |
Capital | ' | ' |
Accumulated other comprehensive loss | -10,360 | -11,014 |
Total liabilities and equity | 2,442,531 | 2,358,624 |
CubeSmart, L.P. and Subsidiaries | ' | ' |
ASSETS | ' | ' |
Storage facilities | 2,660,819 | 2,553,706 |
Less: Accumulated depreciation | -419,460 | -398,536 |
Storage facilities, net (including VIE assets of $41,624 and $34,559, respectively) | 2,241,359 | 2,155,170 |
Cash and cash equivalents | 3,235 | 3,176 |
Restricted cash | 3,964 | 4,025 |
Loan procurement costs, net of amortization | 12,086 | 12,687 |
Investment in real estate ventures, at equity | 154,467 | 156,310 |
Other assets, net | 27,420 | 27,256 |
Total assets | 2,442,531 | 2,358,624 |
LIABILITIES AND CAPITAL | ' | ' |
Unsecured senior notes | 500,000 | 500,000 |
Revolving credit facility | 70,600 | 38,600 |
Unsecured term loan | 400,000 | 400,000 |
Mortgage loans and notes payable | 226,025 | 200,218 |
Accounts payable, accrued expenses and other liabilities | 49,627 | 57,599 |
Distributions payable | 20,321 | 19,955 |
Deferred revenue | 13,567 | 12,394 |
Security deposits | 387 | 376 |
Total liabilities | 1,280,527 | 1,229,142 |
Limited Partnership interest of third parties | 38,807 | 36,275 |
Commitments and contingencies | ' | ' |
Capital | ' | ' |
Operating Partner | 1,132,112 | 1,103,290 |
Accumulated other comprehensive loss | -10,360 | -11,014 |
Total CubeSmart, L.P. capital | 1,121,752 | 1,092,276 |
Noncontrolling interests in subsidiaries | 1,445 | 931 |
Total capital | 1,123,197 | 1,093,207 |
Total liabilities and equity | $2,442,531 | $2,358,624 |
CONSOLIDATED_BALANCE_SHEETS_Pa1
CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Storage facilities, net | $2,241,359 | $2,155,170 |
VIE | ' | ' |
Storage facilities, net | 41,624 | 34,559 |
CubeSmart, L.P. and Subsidiaries | ' | ' |
Storage facilities, net | 2,241,359 | 2,155,170 |
CubeSmart, L.P. and Subsidiaries | VIE | ' | ' |
Storage facilities, net | $41,624 | $34,559 |
CONSOLIDATED_STATEMENTS_OF_OPE1
CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES | ' | ' |
Rental income | $75,714 | $66,252 |
Other property related income | 10,147 | 7,258 |
Property management fee income | 1,406 | 1,145 |
Total revenues | 87,267 | 74,655 |
OPERATING EXPENSES | ' | ' |
Property operating expenses | 32,290 | 29,161 |
Depreciation and amortization | 28,115 | 28,982 |
General and administrative | 6,569 | 7,613 |
Total operating expenses | 66,974 | 65,756 |
OPERATING INCOME | 20,293 | 8,899 |
Interest: | ' | ' |
Interest expense on loans | -11,871 | -10,272 |
Loan procurement amortization expense | -541 | -476 |
Acquisition related costs | -1,679 | -115 |
Equity in losses of real estate venture | -1,369 | ' |
Other | -593 | -73 |
Total other expense | -16,053 | -10,936 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 4,240 | -2,037 |
DISCONTINUED OPERATIONS | ' | ' |
Income from discontinued operations | 336 | 1,381 |
Gain on disposition of discontinued operations | ' | 228 |
Total discontinued operations | 336 | 1,609 |
NET INCOME (LOSS) | 4,576 | -428 |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ' | ' |
Noncontrolling interest in subsidiaries | 3 | 1 |
Distribution to Preferred Units | -1,502 | -1,502 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | 3,028 | -1,894 |
Diluted earnings (loss) per share from continuing operations attributable to common unitholders (in dollars per share) | $0.02 | ($0.03) |
Diluted earnings per share from discontinued operations attributable to common unitholders (in dollars per share) | $0 | $0.02 |
Diluted earnings (loss) per share attributable to common shareholders (in dollars per share) | $0.02 | ($0.01) |
Weighted-average basic units outstanding (in units) | 140,219 | 132,951 |
Weighted-average diluted units outstanding (in units) | 142,774 | 132,951 |
AMOUNTS ATTRIBUTABLE TO COMMON UNITHOLDERS | ' | ' |
Income (loss) from continuing operations | 2,697 | -3,476 |
Total discontinued operations | 331 | 1,582 |
Net income (loss) | 3,028 | -1,894 |
CubeSmart, L.P. and Subsidiaries | ' | ' |
REVENUES | ' | ' |
Rental income | 75,714 | 66,252 |
Other property related income | 10,147 | 7,258 |
Property management fee income | 1,406 | 1,145 |
Total revenues | 87,267 | 74,655 |
OPERATING EXPENSES | ' | ' |
Property operating expenses | 32,290 | 29,161 |
Depreciation and amortization | 28,115 | 28,982 |
General and administrative | 6,569 | 7,613 |
Total operating expenses | 66,974 | 65,756 |
OPERATING INCOME | 20,293 | 8,899 |
Interest: | ' | ' |
Interest expense on loans | -11,871 | -10,272 |
Loan procurement amortization expense | -541 | -476 |
Acquisition related costs | -1,679 | -115 |
Equity in losses of real estate venture | -1,369 | ' |
Other | -593 | -73 |
Total other expense | -16,053 | -10,936 |
INCOME (LOSS) FROM CONTINUING OPERATIONS | 4,240 | -2,037 |
DISCONTINUED OPERATIONS | ' | ' |
Income from discontinued operations | 336 | 1,381 |
Gain on disposition of discontinued operations | ' | 228 |
Total discontinued operations | 336 | 1,609 |
NET INCOME (LOSS) | 4,576 | -428 |
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ' | ' |
Noncontrolling interest in subsidiaries | 3 | 1 |
NET INCOME (LOSS) ATTRIBUTABLE TO CUBESMART L.P. | 4,579 | -427 |
Operating Partnership interest of third parties | -49 | 35 |
NET INCOME (LOSS) ATTRIBUTABLE TO OPERATING PARTNER | 4,530 | -392 |
Distribution to Preferred Units | -1,502 | -1,502 |
NET INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS | 3,028 | -1,894 |
Basic earnings (loss) per share from continuing operations attributable to common unitholders (in dollars per share) | $0.02 | ($0.03) |
Basic earnings per share from discontinued operations attributable to common unitholders (in dollars per share) | $0 | $0.02 |
Basic earnings (loss) per share attributable to common unitholders (in dollars per share) | $0.02 | ($0.01) |
Diluted earnings (loss) per share from continuing operations attributable to common unitholders (in dollars per share) | $0.02 | ($0.03) |
Diluted earnings per share from discontinued operations attributable to common unitholders (in dollars per share) | $0 | $0.02 |
Diluted earnings (loss) per share attributable to common shareholders (in dollars per share) | $0.02 | ($0.01) |
Weighted-average basic units outstanding (in units) | 140,219 | 132,951 |
Weighted-average diluted units outstanding (in units) | 142,774 | 132,951 |
AMOUNTS ATTRIBUTABLE TO COMMON UNITHOLDERS | ' | ' |
Income (loss) from continuing operations | 2,697 | -3,476 |
Total discontinued operations | 331 | 1,582 |
Net income (loss) | $3,028 | ($1,894) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
NET INCOME (LOSS) | $4,576 | ($428) |
Other comprehensive (loss) gain: | ' | ' |
Unrealized losses on interest rate swap | -984 | -309 |
Reclassification of realized losses on interest rate swaps | 1,576 | 1,531 |
Unrealized gain (loss) on foreign currency translation | 74 | -256 |
OTHER COMPREHENSIVE INCOME | 666 | 966 |
COMPREHENSIVE INCOME | 5,242 | 538 |
Comprehensive (income) loss attributable to Operating Partnership interest of third parties | -59 | 17 |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 1 | 10 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | 5,184 | 565 |
CubeSmart, L.P. and Subsidiaries | ' | ' |
NET INCOME (LOSS) | 4,576 | -428 |
Other comprehensive (loss) gain: | ' | ' |
Unrealized losses on interest rate swap | -984 | -309 |
Reclassification of realized losses on interest rate swaps | 1,576 | 1,531 |
Unrealized gain (loss) on foreign currency translation | 74 | -256 |
OTHER COMPREHENSIVE INCOME | 666 | 966 |
COMPREHENSIVE INCOME | 5,242 | 538 |
Comprehensive (income) loss attributable to Operating Partnership interest of third parties | -59 | 17 |
Comprehensive loss attributable to noncontrolling interests in subsidiaries | 1 | 10 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY | $5,184 | $565 |
CONSOLIDATED_STATEMENTS_OF_CAP
CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) (CubeSmart, L.P. and Subsidiaries, USD $) | 3 Months Ended | 3 Months Ended | ||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Partnership Interests of third parties | Operating Partnership Interests of third parties | Total Shareholders' Equity | Total Shareholders' Equity | Operating Partner | Operating Partner | Preferred Operating Partner | Preferred Operating Partner | Preferred Operating Partner | Preferred Operating Partner | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest in Subsidiaries | Noncontrolling Interest in Subsidiaries | |||
Increase (Decrease) in Partners' Capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | $1,093,207 | $989,909 | ' | ' | $1,092,276 | $989,791 | $1,103,290 | $1,009,587 | ' | ' | ' | ' | ($11,014) | ($19,796) | $931 | $118 |
Balance (in units) | ' | ' | ' | ' | ' | ' | 139,328 | 131,795 | 3,100 | 3,100 | 3,100 | 3,100 | ' | ' | ' | ' |
Balance of Noncontrolling Interests in the Operating Partnership | 36,275 | ' | 36,275 | 47,990 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions from noncontrolling interests in subsidiaries | 515 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 515 | ' |
Issuance of common OP units | 46,162 | 1,512 | ' | ' | 46,162 | 1,512 | 46,162 | 1,512 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of common OP units (in units) | ' | ' | ' | ' | ' | ' | 2,705 | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted OP units | 1 | 2 | ' | ' | 1 | 2 | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of restricted OP units (in units) | ' | ' | ' | ' | ' | ' | 114 | 211 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion from units to shares | 234 | 14,601 | -234 | -14,601 | 234 | 14,601 | 234 | 14,601 | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion from units to shares (in units) | ' | ' | ' | ' | ' | ' | 14 | 1,013 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of OP unit options | 560 | 785 | ' | ' | 560 | 785 | 560 | 785 | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise of OP unit options (in units) | ' | ' | ' | ' | ' | ' | 46 | 89 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of restricted OP units | 149 | 808 | ' | ' | 149 | 808 | 149 | 808 | ' | ' | ' | ' | ' | ' | ' | ' |
OP unit compensation expense | 214 | 221 | ' | ' | 214 | 221 | 214 | 221 | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment for Operating Partnership interest of third parties | -3,001 | -2,915 | 3,001 | 2,915 | -3,001 | -2,915 | -3,001 | -2,915 | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) | 3,028 | -1,894 | 49 | -35 | 4,530 | -392 | 4,530 | -392 | ' | ' | ' | ' | ' | ' | -3 | -1 |
Net income (loss), including temporary equity | 4,527 | -393 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive gain (loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain on interest rate swap | 583 | 1,200 | 9 | 22 | 583 | 1,200 | ' | ' | ' | ' | ' | ' | 583 | 1,200 | ' | ' |
Unrealized gain (loss) on foreign currency translation | 73 | -252 | 1 | -4 | 71 | -243 | ' | ' | ' | ' | ' | ' | 71 | -243 | 2 | -9 |
Preferred OP unit distributions | -1,502 | -1,502 | ' | ' | -1,502 | -1,502 | -1,502 | -1,502 | ' | ' | ' | ' | ' | ' | ' | ' |
Common OP unit distributions | -18,525 | -14,702 | -294 | -251 | -18,525 | -14,702 | -18,525 | -14,702 | ' | ' | ' | ' | ' | ' | ' | ' |
Balance | 1,123,197 | 989,274 | ' | ' | 1,121,752 | 989,166 | 1,132,112 | 1,008,005 | ' | ' | ' | ' | -10,360 | -18,839 | 1,445 | 108 |
Balance (in units) | ' | ' | ' | ' | ' | ' | 142,207 | 133,208 | 3,100 | 3,100 | 3,100 | 3,100 | ' | ' | ' | ' |
Balance of Noncontrolling Interests in the Operating Partnership | $38,807 | ' | $38,807 | $36,036 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating Activities | ' | ' |
Net income (loss) | $4,576 | ($428) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 28,656 | 30,365 |
Gain on disposition of discontinued operations | ' | -228 |
Equity compensation expense | 363 | 1,029 |
Accretion of fair market value adjustment of debt | -351 | -247 |
Changes in other operating accounts: | ' | ' |
Other assets | 2,147 | 892 |
Restricted cash | -26 | 657 |
Accounts payable and accrued expenses | -6,800 | -6,400 |
Other liabilities | 647 | 821 |
Net cash provided by operating activities | 30,581 | 26,461 |
Investing Activities | ' | ' |
Acquisitions of storage facilities | -76,619 | -6,857 |
Additions and improvements to storage facilities | -5,112 | -4,229 |
Development costs | -7,488 | -2,655 |
Cash contributed to real estate venture | -1,050 | ' |
Cash distributed from real estate venture | 1,524 | ' |
Proceeds from sales of properties, net | ' | 10,993 |
Proceeds from notes receivable | ' | 5,192 |
Change in restricted cash | 306 | -71 |
Net cash (used in) provided by investing activities | -88,439 | 2,373 |
Proceeds from: | ' | ' |
Revolving credit facility | 197,500 | 60,600 |
Principal payments on: | ' | ' |
Revolving credit facility | -165,500 | -75,600 |
Mortgage loans and notes payable | -1,309 | -1,584 |
Loan procurement costs | -57 | ' |
Contributions from noncontrolling interests in subsidiaries | 515 | ' |
Distributions paid to common unitholders | -18,157 | -14,555 |
Distributions paid to preferred unitholders | -1,502 | -1,502 |
Net cash provided by (used in) financing activities | 57,917 | -30,704 |
Change in cash and cash equivalents | 59 | -1,870 |
Cash and cash equivalents at beginning of period | 3,176 | 4,495 |
Cash and cash equivalents at end of period | 3,235 | 2,625 |
Supplemental Cash Flow and Noncash Information | ' | ' |
Cash paid for interest, net of interest capitalized | 12,819 | 14,359 |
Supplemental disclosure of noncash activities: | ' | ' |
Derivative valuation adjustment | 592 | 1,222 |
Foreign currency translation adjustment | 74 | -256 |
Mortgage loan assumption - acquisition of storage facilities | 27,467 | ' |
CubeSmart, L.P. and Subsidiaries | ' | ' |
Operating Activities | ' | ' |
Net income (loss) | 4,576 | -428 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' |
Depreciation and amortization | 28,656 | 30,365 |
Gain on disposition of discontinued operations | ' | -228 |
Equity compensation expense | 363 | 1,029 |
Accretion of fair market value adjustment of debt | -351 | -247 |
Equity in losses of real estate venture | 1,369 | ' |
Changes in other operating accounts: | ' | ' |
Other assets | 2,147 | 892 |
Restricted cash | -26 | 657 |
Accounts payable and accrued expenses | -6,800 | -6,400 |
Other liabilities | 647 | 821 |
Net cash provided by operating activities | 30,581 | 26,461 |
Investing Activities | ' | ' |
Acquisitions of storage facilities | -76,619 | -6,857 |
Additions and improvements to storage facilities | -5,112 | -4,229 |
Development costs | -7,488 | -2,655 |
Cash contributed to real estate venture | -1,050 | ' |
Cash distributed from real estate venture | 1,524 | ' |
Proceeds from sales of properties, net | ' | 10,993 |
Proceeds from notes receivable | ' | 5,192 |
Change in restricted cash | 306 | -71 |
Net cash (used in) provided by investing activities | -88,439 | 2,373 |
Proceeds from: | ' | ' |
Revolving credit facility | 197,500 | 60,600 |
Principal payments on: | ' | ' |
Revolving credit facility | -165,500 | -75,600 |
Mortgage loans and notes payable | -1,309 | -1,584 |
Loan procurement costs | -57 | ' |
Proceeds from issuance of common OP units | 46,163 | 1,514 |
Exercise of OP unit options | 560 | 785 |
Contributions from noncontrolling interests in subsidiaries | 515 | ' |
Distributions paid to common unitholders | -18,453 | -14,917 |
Distributions paid to preferred unitholders | -1,502 | -1,502 |
Distributions paid to noncontrolling interests in subsidiaries | 0 | ' |
Net cash provided by (used in) financing activities | 57,917 | -30,704 |
Change in cash and cash equivalents | 59 | -1,870 |
Cash and cash equivalents at beginning of period | 3,176 | 4,495 |
Cash and cash equivalents at end of period | 3,235 | 2,625 |
Supplemental Cash Flow and Noncash Information | ' | ' |
Cash paid for interest, net of interest capitalized | 12,819 | 14,359 |
Supplemental disclosure of noncash activities: | ' | ' |
Derivative valuation adjustment | 592 | 1,222 |
Foreign currency translation adjustment | 74 | -256 |
Mortgage loan assumption - acquisition of storage facilities | $27,467 | ' |