CubeSmart 10-Q 27 Apr 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 25, 2018
Document and Entity Information
Entity Registrant Name	CubeSmart
Entity Central Index Key	1,298,675
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
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		182,280,113
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Storage facilities	$ 4,201,909	$ 4,161,715
Less: Accumulated depreciation	(785,010)	(752,925)
Storage facilities, net (including VIE assets of $268,343 and $291,496, respectively)	3,416,899	3,408,790
Cash and cash equivalents	6,036	5,268
Restricted cash	2,946	3,890
Loan procurement costs, net of amortization	1,463	1,592
Investment in real estate venture, at equity	99,085	91,206
Other assets, net	39,105	34,590
Total assets	3,565,534	3,545,336
LIABILITIES AND EQUITY
Unsecured senior notes, net	1,142,726	1,142,460
Revolving credit facility	136,400	81,700
Unsecured term loans, net	299,497	299,396
Mortgage loans and notes payable, net	110,635	111,434
Accounts payable, accrued expenses and other liabilities	122,703	143,344
Distributions payable	55,382	55,297
Deferred revenue	22,671	21,529
Security deposits	486	486
Total liabilities	1,890,500	1,855,646
Noncontrolling interests in the Operating Partnership	57,705	54,320
Commitments and contingencies
Equity
Common shares $.01 par value, 400,000,000 shares authorized, 182,279,975 and 182,215,735 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively	1,823	1,822
Additional paid in capital	2,356,759	2,356,620
Accumulated other comprehensive income	279	3
Accumulated deficit	(748,499)	(729,311)
Total CubeSmart shareholders' equity	1,610,362	1,629,134
Noncontrolling interests in subsidiaries	6,967	6,236
Total equity	1,617,329	1,635,370
Total liabilities and equity	$ 3,565,534	$ 3,545,336

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Storage facilities, net	$ 3,416,899	$ 3,408,790
Common shares, par value (in dollars per share)	$ 0.01	$ 0.01
Common shares, shares authorized	400,000,000	400,000,000
Common shares, shares issued	182,279,975	182,215,735
Common shares, shares outstanding	182,279,975	182,215,735
VIE
Storage facilities, net	$ 268,343	$ 291,496

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUES
Rental income	$ 124,161	$ 117,057
Other property related income	14,247	12,983
Property management fee income	4,469	2,997
Total revenues	142,877	133,037
OPERATING EXPENSES
Property operating expenses	48,754	44,874
Depreciation and amortization	34,966	38,119
General and administrative	8,744	9,494
Acquisition related costs		159
Total operating expenses	92,464	92,646
OPERATING INCOME	50,413	40,391
Interest:
Interest expense on loans	(15,155)	(13,599)
Loan procurement amortization expense	(579)	(706)
Equity in losses of real estate ventures	(184)	(772)
Other	304	(108)
Total other expense	(15,614)	(15,185)
NET INCOME	34,799	25,206
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Noncontrolling interests in the Operating Partnership	(383)	(277)
Noncontrolling interest in subsidiaries	7	57
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS	$ 34,423	$ 24,986
Basic earnings per share attributable to common shareholders (in dollars per share)	$ 0.19	$ 0.14
Diluted earnings per share attributable to common shareholders (in dollars per share)	$ 0.19	$ 0.14
Weighted-average basic shares outstanding (in shares)	182,274	180,165
Weighted-average diluted shares outstanding (in shares)	183,222	181,265

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
NET INCOME	$ 34,799	$ 25,206
Other comprehensive income:
Unrealized gains on interest rate swaps	60	141
Reclassification of realized losses on interest rate swaps	219	695
OTHER COMPREHENSIVE INCOME	279	836
COMPREHENSIVE INCOME	35,078	26,042
Comprehensive income attributable to noncontrolling interests in the Operating Partnership	(383)	(277)
Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries	7	57
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY	$ 34,702	$ 25,822

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total Shareholders' Equity	Common Shares	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	Accumulated Deficit	Noncontrolling Interest in Subsidiaries	Noncontrolling Interests in Operating Partnership	Total
Balance at Dec. 31, 2016	$ 1,655,382	$ 1,801	$ 2,314,014	$ (1,850)	$ (658,583)	$ 5,855		$ 1,661,237
Balance (in shares) at Dec. 31, 2016		180,083
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2016							$ 54,407
Increase (Decrease) in Stockholders' Equity
Contributions from noncontrolling interests in subsidiaries						410
Issuance of common shares	(73)							(73)
Issuance of restricted shares	1	$ 1						1
Issuance of restricted shares (in shares)		88
Conversion from units to shares	25		25				(25)	25
Conversion from units to shares (in shares)		1
Exercise of stock options	30		30					30
Exercise of stock options (in shares)		2
Amortization of restricted shares	(1,021)		(1,021)					(1,021)
Share compensation expense	375		375					375
Adjustment for noncontrolling interest in the Operating Partnership	1,385				1,385		(1,385)	1,385
Net income (loss)	24,986				24,986	(57)		24,929
Net income (loss)							277
Other comprehensive income, net	827			827				827
Other comprehensive income (loss), net							9
Common share distributions	(48,707)				(48,707)		(548)	(48,707)
Balance at Mar. 31, 2017	1,633,210	$ 1,802	2,313,350	(1,023)	(680,919)	6,208		1,639,418
Balance (in shares) at Mar. 31, 2017		180,174
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2017							52,735
Balance at Dec. 31, 2016	1,655,382	$ 1,801	2,314,014	(1,850)	(658,583)	5,855		1,661,237
Balance (in shares) at Dec. 31, 2016		180,083
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2016							54,407
Increase (Decrease) in Stockholders' Equity
Adjustment for noncontrolling interest in the Operating Partnership								4,000
Balance at Dec. 31, 2017	1,629,134	$ 1,822	2,356,620	3	(729,311)	6,236		1,635,370
Balance (in shares) at Dec. 31, 2017		182,216
Balance of Noncontrolling Interests in the Operating Partnership at Dec. 31, 2017							54,320	54,320
Increase (Decrease) in Stockholders' Equity
Contributions from noncontrolling interests in subsidiaries						738		738
Issuance of common shares	(44)		(44)					(44)
Issuance of restricted shares	1	$ 1						1
Issuance of restricted shares (in shares)		64
Issuance of OP units							4,782
Exercise of stock options	2		2					2
Amortization of restricted shares	(242)		(242)					(242)
Share compensation expense	423		423					423
Adjustment for noncontrolling interest in the Operating Partnership	1,169				1,169		(1,169)	1,169
Net income (loss)	34,423				34,423	(7)		34,416
Net income (loss)							383
Other comprehensive income, net	276			276				276
Other comprehensive income (loss), net							3
Common share distributions	(54,780)				(54,780)		(614)	(54,780)
Balance at Mar. 31, 2018	$ 1,610,362	$ 1,823	$ 2,356,759	$ 279	$ (748,499)	$ 6,967		1,617,329
Balance (in shares) at Mar. 31, 2018		182,280
Balance of Noncontrolling Interests in the Operating Partnership at Mar. 31, 2018							$ 57,705	$ 57,705

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities
Net income	$ 34,799	$ 25,206
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	35,545	38,825
Equity in losses of real estate ventures	184	772
Equity compensation expense	1,592	1,355
Accretion of fair market value adjustment of debt	(183)	(129)
Changes in other operating accounts:
Other assets	(1,352)	(1,626)
Accounts payable and accrued expenses	(5,558)	2,595
Other liabilities	1,105	909
Net cash provided by operating activities	66,132	67,907
Investing Activities
Acquisitions of storage facilities	(4,034)	(600)
Additions and improvements to storage facilities	(5,394)	(6,671)
Development costs	(39,663)	(15,856)
Distributions Payable to Real Estate Partnerships	(10,320)	(116)
Proceeds from Divestiture of Real Estate Partnership	2,257	2,090
Net cash used in investing activities	(57,154)	(21,153)
Cash distributed from real estate ventures	2,257	2,090
Proceeds from:
Revolving credit facility	156,700	147,000
Principal payments on:
Revolving credit facility	(102,000)	(137,300)
Mortgage loans and notes payable	(7,831)	(6,811)
Proceeds from issuance of common shares, net	(43)	(72)
Cash paid upon vesting of restricted shares	(1,411)	(2,001)
Exercise of stock options	2	30
Contributions from noncontrolling interests in subsidiaries	738	410
Distributions paid to common shareholders	(54,746)	(48,690)
Distributions paid to noncontrolling interests in Operating Partnership	(563)	(549)
Net cash used in financing activities	(9,154)	(47,983)
Change in cash, cash equivalents, and restricted cash	(176)	(1,229)
Cash, cash equivalents, and restricted cash at beginning of period	9,158	10,866
Cash, cash equivalents, and restricted cash at end of period	8,982	9,637
Supplemental Cash Flow and Noncash Information
Cash paid for interest, net of interest capitalized	15,298	15,878
Supplemental disclosure of noncash activities:
Accretion of liability	7,266	8,034
Derivative valuation adjustment	279	$ 836
Mortgage loan assumptions	7,166
Issuance of OP units	$ 4,782

ORGANIZATION AND NATURE OF OPER

ORGANIZATION AND NATURE OF OPERATIONS	3 Months Ended
	Mar. 31, 2018
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, 2018, the Company owned self-storage properties located in 23 states throughout the United States and the District of Columbia that are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage properties. As of March 31, 2018, the Parent Company owned approximately 98.9% of the partnership interests (“OP Units”) of the Operating Partnership. The remaining OP Units, consisting exclusively of limited partner interests, are held by persons who contributed their interests in properties to the Operating Partnership in exchange for OP Units. Under the partnership agreement, these persons have the right to tender their OP Units for redemption to the Operating Partnership at any time (except, as disclosed in note 4, in the case of the Class C OP Units issued on April 12, 2017, such right became exercisable on October 12, 2017 and, in the case of the 440,160 OP Units and 168,011 OP Units issued on May 9, 2017 and January 31, 2018, respectively, such rights may be exercised at any time on or after May 9, 2018 or February 28, 2019, respectively) for cash equal to the fair value of an equivalent number of common shares of the Parent Company or, in the case of Class C OP Units, the stated value of such Class C OP Units. 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 or, in the case of Class C OP Units, for common shares with a fair value equal to the stated value of such Class C OP Units. This one-for-one exchange ratio is subject to adjustment to prevent dilution. With each such exchange or redemption, the Parent Company’s percentage ownership in the Operating Partnership will increase. In addition, whenever the Parent Company issues common or other classes of its shares, it contributes the net proceeds it receives from the issuance to the Operating Partnership and the Operating Partnership issues to the Parent Company an equal number of OP Units or other partnership interests having preferences and rights that mirror the preferences and rights of the shares issued. This structure is commonly referred to as an umbrella partnership REIT or “UPREIT”.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2018
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, 2017, 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, 2017. The results of operations for the three months ended March 31, 2018 and 2017 are not necessarily indicative of the results of operations to be expected for any future period or the full year. The Company adopted Accounting Standard Update (“ASU“) No. 2015-02, Consolidation – Amendments to the Consolidation Analysis, as of January 1, 2016. The Company evaluated the application of this guidance and concluded that there were no changes to any previous conclusions with respect to consolidation accounting for any of its interests in less than wholly owned joint ventures. However, the Operating Partnership now meets the criteria as a variable interest entity. The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership. Reclassifications Certain amounts from the prior year have been reclassified to conform to current year presentation as described below. On January 1, 2018, the Company adopted ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments, which requires retrospective application for a number of cash flow classification items for which there was diversity in practice. See Recent Accounting Pronouncements below for the specific cash flow areas addressed by the new standard. As a result of adopting the new guidance, $0.2 million of proceeds received from the settlement of insurance claims during the three months ended March 31, 2017 have been reclassified from operating activities to investing activities within the consolidated statements of cash flows. On January 1, 2018, the Company also adopted ASU No. 2016-18: Statement of Cash Flows (Topic 230) – Restricted Cash, which requires restricted cash to be included with cash and cash equivalents as part of the reconciliation of beginning and end of period balances within the consolidated statements of cash flows. As a result of adopting the new guidance, $0.2 million and $1.5 million of restricted cash, which were previously included as operating cash outflows and investing cash inflows within the consolidated statements of cash flows for the three months ended March 31, 2017, respectively, have been removed and are now included in the cash, cash equivalents, and restricted cash line items at the beginning and the end of period. Restricted cash consists of purchase deposits and cash deposits required for debt service requirements, capital replacement, and expense reserves in connection with the requirements of the Company’s loan agreements. Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning after December 15, 2018. This adoption method will require the Company to recognize the cumulative effect of initially applying the new guidance as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that the Company adopts the update. The Company is in the process of evaluating the impact of this new guidance. In February 2017, as part of the new revenue standard, the FASB issued ASU No. 2017-05 – Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance, which focuses on recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. Specifically, the new guidance defines “in substance nonfinancial asset”, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The new guidance became effective on January 1, 2018 when the Company adopted the new revenue standard. Upon adoption, the majority of the Company’s sale transactions are now treated as dispositions of nonfinancial assets rather than dispositions of a business given the FASB’s recently revised definition of a business (see ASU No. 2017-01 below). Additionally, in partial sale transactions where the Company sells a controlling interest in real estate but retains a noncontrolling interest, the Company will now fully recognize a gain or loss on the fair value measurement of the retained interest as the new guidance eliminates the partial profit recognition model. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to include an input and a substantive process that together significantly contribute to the ability to create outputs. A framework is provided to evaluate when an input and a substantive process are present. The new guidance also narrows the definition of outputs, which are defined as the results of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The standard became effective on January 1, 2018. Upon adoption of the new guidance, the majority of the Company’s future property acquisitions will now be considered asset acquisitions, resulting in the capitalization of acquisition related costs incurred in connection with these transactions and the allocation of purchase price and acquisition related costs to the assets acquired based on their relative fair values. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position or results of operations. In November 2016, the FASB issued ASU No. 2016-18 - Statement of Cash Flows (Topic 230): Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new guidance also requires entities to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The standard became effective on January 1, 2018 and requires the use of the retrospective transition method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as the update primarily relates to financial statement presentation and disclosures as discussed in “ Reclassifications ” above. In August 2016, the FASB issued ASU No. 2016-15 – Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The eight items that the ASU provides classification guidance on include (1) debt prepayment and extinguishment costs, (2) settlement of zero-coupon debt instruments, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investments, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. The standard became effective on January 1, 2018 and requires the use of the retrospective transition method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as the update primarily relates to financial statement presentation and disclosures as discussed in “Reclassifications” above. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is currently assessing the impact of the adoption of the new standard on its consolidated financial statements and related disclosures. At this time, the primary impact is expected to be related to the Company’s ten ground leases in which it serves as the ground lessee. In May 2014, the FASB issued ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance outlines a five-step process for customer contract revenue recognition that focuses on transfer of control as opposed to transfer of risk and rewards. The new guidance also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. In May 2016, the FASB issued ASU No. 2016-12 - Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends ASU No. 2014-09 and is intended to address implementation issues that were raised by stakeholders. ASU No. 2016-12 provides practical expedients on collectability, noncash consideration, presentation of sales tax and contract modifications and completed contracts in transition. Both standards became effective on January 1, 2018. The Company finalized the impact of the adoption of ASU No. 2014-09 and ASU No. 2016-12 on the Company’s consolidated financial statements and related disclosures and adopted the standards using the modified retrospective transition method. The standards did not have a material impact on the Company’s consolidated statements of financial position or results of operations primarily because most of its revenue is derived from lease contracts, which are excluded from the scope of the new guidance. The Company’s insurance fee revenue, property management fee revenue, and merchandise sale revenue are included in the scope of the new guidance, however, the Company identified similar performance obligations under this standard as compared with deliverables and separate units of account identified under its previous revenue recognition methodology. Accordingly, revenue recognized under the new guidance does not differ materially from revenue recognized under previous guidance and there is no material prior year impact.

STORAGE PROPERTIES

STORAGE PROPERTIES	3 Months Ended
	Mar. 31, 2018
STORAGE PROPERTIES
STORAGE FACILITIES	3. STORAGE PROPERTIES The book value of the Company’s real estate assets is summarized as follows: March 31, December 31, 2018 2017 (in thousands) Land $ 718,584 $ 711,140 Buildings and improvements 3,135,382 3,086,252 Equipment 184,904 182,958 Construction in progress 163,039 181,365 Storage properties 4,201,909 4,161,715 Less: Accumulated depreciation (785,010) (752,925) Storage properties, net $ 3,416,899 $ 3,408,790 The following table summarizes the Company’s acquisition and disposition activity during the period beginning on January 1, 2017 through March 31, 2018: Number of Purchase / Sale Price Asset/Portfolio Market Transaction Date Stores (in thousands) 2018 Acquisitions: Texas Asset Texas Markets - Major January 2018 1 $ 12,200 1 $ 2017 Acquisitions: Illinois Asset Chicago April 2017 1 $ 11,200 Maryland Asset Baltimore / DC May 2017 1 18,200 California Asset Sacramento May 2017 1 3,650 Texas Asset Texas Markets - Major October 2017 1 4,050 Florida Asset Florida Markets - Other October 2017 1 14,500 Illinois Asset Chicago November 2017 1 11,300 Florida Asset Florida Markets - Other December 2017 1 17,750 7 $

INVESTMENT ACTIVITY

INVESTMENT ACTIVITY	3 Months Ended
	Mar. 31, 2018
INVESTMENT ACTIVITY
INVESTMENT ACTIVITY	4. INVESTMENT ACTIVITY 2018 Acquisitions During the three months ended March 31, 2018, the Company acquired one store located in Texas for $12.2 million. In conjunction with the acquisition, the Company assumed a $7.2 million mortgage loan that was immediately repaid by the Company. The remainder of the purchase price was funded with $0.2 million of cash and $4.8 million through the issuance of 168,011 OP Units (see note 12). Following a 13-month lock-up period, the holder may tender the OP Units for redemption by the Operating Partnership for a cash amount per OP Unit equal to the market value of an equivalent number of common shares of the Company. The Company has the right, but not the obligation, to assume and satisfy the redemption obligation of the Operating Partnership by issuing one common share in exchange for each OP Unit tendered for redemption. In connection with the acquisition, the Company allocated the purchase price and acquisition related costs to the tangible and intangible assets acquired based on fair value. Intangible assets consist of in-place leases, which aggregated $0.4 million at the time of the acquisition 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 2018 was approximately $0.1 million. The following table summarizes the Company’s revenue and earnings associated with the 2018 acquisition from the acquisition date, that are included in the consolidated statements of operations for the three months ended March 31, 2018: Three Months Ended March 31, 2018 (in thousands) Total revenue $ 150 Net loss (90) As of March 31, 2018, the Company was under contract and had made aggregate deposits of $4.8 million associated with three stores, including two stores to be acquired after the completion of construction and the issuance of the certificate of occupancy, for an aggregate acquisition price of $74.2 million. The deposits are reflected in Other assets, net on the Company’s consolidated balance sheets. The purchase of the two stores under construction is expected to occur by the third quarter of 2018 after the completion of construction and the issuance of a certificate of occupancy. These acquisitions are subject to due diligence and other customary closing conditions and no assurance can be provided that these acquisitions will be completed on the terms described, or at all. 2017 Acquisitions During the year ended December 31, 2017, the Company acquired six stores located throughout the United States, including two stores upon completion of construction and the issuance of a certificate of occupancy, for an aggregate purchase price of approximately $69.5 million. In connection with these acquisitions, the Company allocated a portion of the purchase price to the tangible and intangible assets acquired based on fair value. Intangible assets consist of in-place leases, which aggregated $3.2 million at the time of the 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, 2018 was approximately $0.8 million. In connection with one of the acquired stores, the Company assumed mortgage debt that was recorded at a fair value of $6.2 million, which fair value includes an outstanding principal balance totaling $5.9 million and a net premium of $0.3 million to reflect the estimated fair value of the debt at the time of assumption. As part of the acquisition of that same store, the Company issued OP Units that were valued at approximately $12.3 million as consideration for the remainder of the purchase price (see note 12). During the year ended December 31, 2017, the Company also acquired a store in Illinois upon completion of construction and the issuance of a certificate of occupancy for $11.2 million. The purchase price was satisfied with $9.7 million of cash and 58,400 newly created Class C OP Units. Each Class C OP Unit has a stated value of $25 and bears an annual distribution rate of 3% of the stated value. The holder has the option to tender the Class C OP Units to the Operating Partnership at any time, and as of April 12, 2018, the Operating Partnership has the option to redeem the Class C OP Units, in each case at a redemption price of $25 per Class C OP Unit. The Company has the right to settle the redemption in cash or, at the Company’s option, common shares of the Company, or a combination of cash and common shares of the Company, with the common shares of the Company valued at their closing price on the redemption date. Because the Class C OP Units represent an unconditional obligation that the Company may settle by issuing a variable number of its common shares with a monetary value that is known at inception, they have been classified as a liability in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. Development As of March 31, 2018, the Company had invested in joint ventures to develop seven self-storage properties located in Massachusetts (2), New Jersey (1), and New York (4). Construction for all projects is expected to be completed by the fourth quarter of 2019 (see note 12). As of March 31, 2018, development costs incurred to date for these projects totaled $146.2 million. Total construction costs for these projects are expected to be $252.7 million. These costs are capitalized to construction in progress while the projects are under development and are reflected in Storage properties on the Company’s consolidated balance sheets. The Company has completed the construction and opened for operation the following stores during the period beginning on January 1, 2017 through March 31, 2018. The costs associated with the construction of these stores are capitalized to land, building, and improvements as well as equipment and are reflected in Storage properties on the Company’s consolidated balance sheets. CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) Brooklyn, NY (1) 1 Q4 2017 100% $ 49,300 Washington, D.C. 1 Q3 2017 100% 27,800 New York, NY 1 Q3 2017 90% 81,200 North Palm Beach, FL 1 Q1 2017 100% 9,700 4 $ 168,000 (1) This property was previously owned by a consolidated joint venture, in which the Company had a 51% ownership interest. On March 28, 2018, the noncontrolling member in the venture put its 49% interest in the venture to the Company for $20.4 million, which is included in Development costs in the consolidated statements of cash flows.

INVESTMENT IN UNCONSOLIDATED RE

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES	3 Months Ended
	Mar. 31, 2018
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES	5. INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES 191 IV CUBE LLC (“HVP IV”) On October 16, 2017, the Company acquired a self-storage property located in Texas for $9.4 million, which it then contributed to a newly-formed joint venture on November 1, 2017. In return for contributing the property to HVP IV, the Company received approximately $7.5 million in cash and a 20% ownership interest in the venture. During the three months ended March 31, 2018, HVP IV acquired four additional stores located in Arizona (2), Maryland (1), and Texas (1) for an aggregate purchase price of $51.0 million. The purchase price for each of these stores was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP IV related to these four acquisitions was $10.3 million, bringing its total investment in HVP IV to $12.2 million as of March 31, 2018. Subsequent to March 31, 2018, HVP IV acquired one self-storage property in Florida for $19.0 million. CUBE HHF Northeast Venture LLC (“HHFNE”) On December 15, 2016, the Company invested a 10% ownership interest in a newly-formed joint venture that acquired 13 self-storage properties located in Connecticut (3), Massachusetts (6), Rhode Island (2), and Vermont (2). HHFNE paid $87.5 million for these stores, of which $6.0 million was allocated to the value of the in-place lease intangible. The acquisition was funded primarily through an advance totaling $44.5 million on the venture’s loan facility. The remainder of the purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HHFNE related to this portfolio acquisition was $3.8 million. The loan bears interest at LIBOR plus 1.90% and matures on December 15, 2019 with options to extend the maturity date through December 15, 2021, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. 191 III CUBE LLC (“HVP III”) During the fourth quarter of 2015, the Company invested a 10% ownership interest in a newly-formed joint venture that agreed to acquire a property portfolio comprised of 37 self-storage properties located in Michigan (17), Tennessee (10), Massachusetts (7), and Florida (3). HVP III paid $242.5 million for these 37 stores, of which $18.9 million was allocated to the value of the in-place lease intangible. HVP III acquired 30 of the stores on December 8, 2015 for $193.7 million, one of the stores on January 26, 2016 for $5.7 million, five of the stores on April 21, 2016 for $36.1 million, and one store on June 15, 2016 for $7.0 million. In connection with six of the acquired stores, HVP III assumed mortgage debt that was recorded at a fair value of $25.3 million, which includes an outstanding principal balance totaling $23.7 million and a net premium of $1.6 million to reflect the estimated fair value of the debt at the time of assumption. The remainder of the purchase price was funded through advances totaling $116.0 million on the venture’s $122.0 million loan facility and amounts contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP III related to this portfolio acquisition was $10.7 million. The loan facility bears interest at LIBOR plus 2.00% per annum and matures on December 7, 2018 with options to extend the maturity date through December 7, 2020, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the loan agreement. During the first quarter of 2016, HVP III agreed to acquire a property portfolio comprised of 31 self-storage properties located in South Carolina (22), Georgia (5), and North Carolina (4) that were previously managed by the Company. HVP III paid $115.5 million for these 31 stores, of which $10.6 million was allocated to the value of the in-place lease intangible. HVP III acquired 30 of the stores on March 30, 2016 for $112.8 million and one of the stores on November 2, 2016 for $2.7 million. In conjunction with the acquisitions, HVP III refinanced its existing loan facility by entering into an increased amended and restated loan facility not to exceed $185.5 million. The acquisitions were funded primarily through advances totaling $63.5 million on the venture’s amended and restated loan facility. The remainder of the purchase price was contributed pro-rata by the Company and its unaffiliated joint venture partner. The Company’s total contribution to HVP III related to this portfolio acquisition was $5.4 million, bringing its total investment in HVP III to $16.1 million as of September 30, 2017. The amended and restated loan facility bears interest at LIBOR plus 2.00% per annum. The initial maturity date was extended to March 30, 2019 with options to extend through March 30, 2021, subject to satisfaction of certain conditions and payment of the extension fees as stipulated in the amended and restated loan agreement. CUBE HHF Limited Partnership (“HHF”) On December 10, 2013, the Company invested a 50% ownership interest in a newly-formed joint venture that acquired 35 self-storage properties located in Texas (34) and North Carolina (1). HHF paid $315.7 million for these stores, of which $12.1 million was allocated to the value of the in-place lease intangible. 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. On May 1, 2014, HHF obtained a $100.0 million loan secured by the 34 self-storage properties located in Texas that are owned by the venture. There is no recourse to the Company, subject to customary exceptions to non-recourse provisions. 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 proceeds (net of closing costs) of $99.2 million were distributed proportionately to the partners. Based upon the facts and circumstances at formation of HVP IV, HHFNE, HVP III, and HHF (the “Ventures”), the Company determined that the Ventures are not VIEs in accordance with the accounting standard for the consolidation of VIEs. As a result, the Company used the voting interest model under the accounting standard for consolidation in order to determine whether to consolidate the Ventures. Based upon each member's substantive participating rights over the activities of each entity as stipulated in the operating agreements, the Ventures are not consolidated by the Company and are accounted for under the equity method of accounting. The Company’s investments in the Ventures are included in Investment in real estate ventures, at equity on the Company’s consolidated balance sheets and the Company’s earnings from its investments in the Ventures are presented in Equity in 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 ventures. The following is a summary of the financial position of the Ventures as of March 31, 2018 and December 31, 2017 (in thousands): March 31, December 31, 2018 2017 Assets Storage properties, net $ 688,775 $ 647,668 Other assets 11,110 8,284 Total assets $ 699,885 $ 655,952 Liabilities and equity Other liabilities $ 8,006 $ 6,853 Debt 346,661 346,475 Equity CubeSmart 99,085 91,206 Joint venture partners 246,133 211,418 Total liabilities and equity $ 699,885 $ 655,952 The following is a summary of results of operations of the Ventures for the three months ended March 31, 2018 and 2017 (in thousands): Three Months Ended March 31, 2018 2017 Total revenues $ 20,910 $ 19,423 Operating expenses 9,398 9,083 Interest expense, net 2,898 2,900 Depreciation and amortization 9,449 13,719 Net loss $ (835) $ (6,279) Company’s share of net loss $ (184) $ (772)

UNSECURED SENIOR NOTES

UNSECURED SENIOR NOTES	3 Months Ended
	Mar. 31, 2018
UNSECURED SENIOR NOTES
UNSECURED SENIOR NOTES	6. UNSECURED SENIOR NOTES The Company’s unsecured senior notes are summarized as follows (collectively referred to as the “Senior Notes”): March 31, December 31, Effective Issuance Maturity Unsecured Senior Notes 2018 2017 Interest Rate Date Date (in thousands) $250M 4.800% Guaranteed Notes due 2022 $ 250,000 $ 250,000 4.82 % Jun-12 Jul-22 $300M 4.375% Guaranteed Notes due 2023 (1) 300,000 300,000 4.33 % Various (1) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (2) 300,000 300,000 3.99 % Various (2) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 Principal balance outstanding 1,150,000 Less: Discount on issuance of unsecured senior notes, net (605) (617) Less: Loan procurement costs, net (6,669) (6,923) Total unsecured senior notes, net $ 1,142,726 $ 1,142,460 (1) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.375% senior notes due 2023, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.375% senior notes due December 15, 2023 issued on December 17, 2013. The $50.0 million and $250.0 million traunches were priced at 105.040% and 98.995%, respectively, of the principal amount to yield 3.495% and 4.501%, respectively, to maturity. The combined weighted-average effective interest rate of the 2023 notes is 4.330%. (2) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.000% senior notes due 2025, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.000% senior notes due November 15, 2025 issued on October 26, 2015. The $50.0 million and $250.0 million traunches were priced at 101.343% and 99.735%, respectively, of the principal amount to yield 3.811% and 4.032%, respectively, to maturity. The combined weighted-average effective interest rate of the 2025 notes is 3.994%. The indenture under which the Senior Notes were issued restricts the ability of the Operating Partnership and its subsidiaries to incur debt unless the Operating Partnership and its consolidated subsidiaries comply with a leverage ratio not to exceed 60% and an interest coverage ratio of more than 1.5:1 after giving effect to the incurrence of the debt. The indenture also restricts the ability of the Operating Partnership and its subsidiaries to incur secured debt unless the Operating Partnership and its consolidated subsidiaries comply with a secured debt leverage ratio not to exceed 40% after giving effect to the incurrence of the debt. The indenture also contains other financial and customary covenants, including a covenant not to own unencumbered assets with a value less than 150% of the unsecured indebtedness of the Operating Partnership and its consolidated subsidiaries. As of March 31, 2018, the Operating Partnership was in compliance with all of the financial covenants under the Senior Notes.

REVOLVING CREDIT FACILITY AND U

REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS	3 Months Ended
	Mar. 31, 2018
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS
REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS	7. REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS On December 9, 2011, the Company entered into a credit agreement (the “Credit Facility”), which was subsequently amended on April 5, 2012, June 18, 2013, and April 22, 2015 to provide for, amongst other things, a $500.0 million unsecured revolving facility (the “Revolver”) with a maturity date of April 22, 2020. Pricing on the Revolver is dependent on the Company’s unsecured debt credit ratings. At the Company’s current Baa2/BBB level, amounts drawn under the Revolver are priced at 1.25% over LIBOR, inclusive of a facility fee of 0.15%. As of March 31, 2018, $362.9 million was available for borrowing under the Revolver. The available balance under the Revolver is reduced by an outstanding letter of credit of $0.7 million. As of March 31, 2018, the Company also had a $200.0 million unsecured term loan outstanding under the Credit Facility, which is included in the table below. On June 20, 2011, the Company entered into an unsecured term loan agreement (the “Term Loan Facility”), which was subsequently amended on June 18, 2013 and August 5, 2014, consisting of a $100.0 million unsecured term loan with a five-year maturity and a $100.0 million unsecured term loan with a seven-year maturity. On April 6, 2017, the Company used the net proceeds from the issuance of $50.0 million of its 4.375% Senior Notes due 2023 and $50.0 million of its 4.000% Senior Notes due 2025 to repay all of the outstanding indebtedness under its five-year $100.0 million unsecured term loan that was scheduled to mature in June 2018. The Company’s unsecured term loans under the Credit Facility and Term Loan Facility are summarized below: Carrying Value as of: Effective Interest March 31, December 31, Rate as of Maturity Unsecured Term Loans 2018 2017 March 31, 2018 (1) Date (in thousands) Credit Facility Unsecured term loan $ 200,000 $ 200,000 3.18 % Jan-19 Term Loan Facility Unsecured term loan (2) 100,000 100,000 3.62 % Jan-20 Principal balance outstanding 300,000 300,000 Less: Loan procurement costs, net (503) (604) Total unsecured term loans, net $ 299,497 $ (1) Pricing on the Term Loan Facility and the unsecured term loan under the Credit Facility is dependent on the Company’s unsecured debt credit ratings. At the Company’s current Baa2/BBB level, amounts drawn under the term loan scheduled to mature in January 2019 are priced at 1.30% over LIBOR, while amounts drawn under the term loan scheduled to mature in January 2020 are priced at 1.15% over LIBOR, excluding the impact of interest rate swaps. As of March 31, 2018, borrowings under the Credit Facility, inclusive of the Revolver, and Term Loan Facility, as amended and after giving effect to the interest rate swaps, had an effective weighted average interest rate of 3.27%. (2) As of March 31, 2018, the Company had interest rate swaps in place on these borrowings that fix 30-day LIBOR (see note 10). The Term Loan Facility and the unsecured term loan under the Credit Facility were fully drawn at March 31, 2018 and no further borrowings may be made under the term loans. The Company’s ability to borrow under the Revolver 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. As of March 31, 2018, the Company was 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 PAYABL

MORTGAGE LOANS AND NOTES PAYABLE	3 Months Ended
	Mar. 31, 2018
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 2018 2017 Interest Rate Date (in thousands) YSI 33 $ 9,466 $ 9,547 6.42 % Jul-19 YSI 26 8,176 8,228 4.56 % Nov-20 YSI 57 2,870 2,889 4.61 % Nov-20 YSI 55 22,390 22,508 4.85 % Jun-21 YSI 24 25,498 25,700 4.64 % Jun-21 YSI 65 2,399 2,411 3.85 % Jun-23 YSI 66 31,585 31,727 3.51 % Jun-23 YSI 68 5,747 5,786 3.78 % May-24 Principal balance outstanding 108,131 108,796 Plus: Unamortized fair value adjustment 3,103 3,286 Less: Loan procurement costs, net (599) (648) Total mortgage loans and notes payable, net $ 110,635 $ As of March 31, 2018 and December 31, 2017, the Company’s mortgage loans payable were secured by certain of its self-storage properties with net book values of approximately $235.3 million and $236.9 million, respectively. The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of March 31, 2018 (in thousands): 2018 $ 1,985 2019 11,652 2020 12,791 2021 45,057 2022 923 2023 and thereafter 35,723 Total mortgage payments 108,131 Plus: Unamortized fair value adjustment 3,103 Less: Loan procurement costs, net (599) Total mortgage loans and notes payable, net $ 110,635

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME	3 Months Ended
	Mar. 31, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME
ACCUMULATED OTHER COMPREHENSIVE INCOME	9. ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in accumulated other comprehensive income by component for the three months ended March 31, 2018 (in thousands): Unrealized losses on interest rate swaps Other comprehensive gain before reclassifications $ 59 Amounts reclassified from accumulated other comprehensive income 217 (1) Net current-period other comprehensive gain 276 Balance at December 31, 2017 3 Balance at March 31, 2018 $ 279 (1) See note 10 for additional information about the effects of the amounts reclassified.

RISK MANAGEMENT AND USE OF FINA

RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2018
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 income. 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 as of March 31, 2018 and December 31, 2017, respectively (dollars in thousands): Hedge Hedge Notional Amount Effective Fair Value Product Type (1) March 31, 2018 December 31, 2017 Strike Date Maturity March 31, 2018 December 31, 2017 Swap Cash flow $ 40,000 $ 40,000 % 6/20/2011 6/20/2018 $ (50) $ (161) Swap Cash flow 40,000 40,000 % 6/20/2011 6/20/2018 (51) (163) Swap Cash flow 20,000 20,000 % 6/20/2011 6/20/2018 (26) (82) $ 100,000 $ 100,000 $ (127) $ (406) (1) 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, 2018 and December 31, 2017, 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. Amounts reported in accumulated other comprehensive income 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 $0.2 million of unrealized losses from accumulated other comprehensive income as an increase to interest expense during the three months ended March 31, 2018. The Company estimates that $0.1 million will be reclassified as an increase to interest expense within the next 12 months.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2018
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, 2018 are classified in the table below in one of the three categories described above (in thousands): Level 1 Level 2 Level 3 Interest rate swap derivative liabilities $ — $ 127 $ — Total liabilities at fair value $ — $ 127 $ — Financial assets and liabilities carried at fair value as of December 31, 2017 are classified in the table below in one of the three categories described above (in thousands): Level 1 Level 2 Level 3 Interest rate swap derivative liabilities $ — $ 406 $ — Total liabilities at fair value $ — $ 406 $ — 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 2018 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, 2018, 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, restricted cash, accounts receivable and accounts payable approximate their respective carrying values at March 31, 2018 and December 31, 2017. The aggregate carrying value of the Company’s debt was $1.7 billion and $1.6 billion at March 31, 2018 and December 31, 2017, respectively. The estimated fair value of the Company’s debt was $1.7 billion at March 31, 2018 and December 31, 2017. These estimates were based on a discounted cash flow analysis assuming market interest rates for comparable obligations at March 31, 2018 and December 31, 2017. 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, 2018
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS	12. NONCONTROLLING INTERESTS Interests in Consolidated Real Estate Joint Ventures Noncontrolling interests in subsidiaries represent the ownership interests of third parties in the Company’s consolidated real estate ventures. The Company has determined that these ventures are variable interest entities, and that the Company is the primary beneficiary. Accordingly, the Company consolidates the assets, liabilities, and results of operations of the real estate ventures in the table below (dollars in thousands): Date Opened / CubeSmart Number Estimated Ownership March 31, 2018 Development Ventures of Stores Location Opening Interest Total Assets Total Liabilities CS SDP Newtonville, LLC ("Newtonville") (3) 1 Newtonville, MA Q4 2019 (est.) 90% $ 6,489 $ 51 CS 1158 McDonald Ave, LLC ("McDonald Ave") (1) 1 Brooklyn, NY Q3 2019 (est.) 51% 20,228 3,885 CS SJM E 92nd Street, LLC ("92nd St") (3) 1 New York, NY Q3 2019 (est.) 90% 2,493 2,012 CS 160 East 22nd St, LLC ("22nd St") (1) 1 Bayonne, NJ Q1 2019 (est.) 51% 7,882 5,560 CS SDP Waltham, LLC ("Waltham") (3) 1 Waltham, MA Q1 2019 (est.) 90% 7,510 1,726 2225 46th St, LLC ("46th St") (1) 1 Queens, NY Q4 2018 (est.) 51% 30,737 10,772 2880 Exterior St, LLC ("Exterior St") (1) 1 Bronx, NY Q3 2018 (est.) 51% 72,003 35,524 444 55 th Street Holdings, LLC ("55th St") (2) 1 New York, NY Q3 2017 90% 81,247 33,611 186 Jamaica Avenue, LLC ("Jamaica Ave") (3) 1 Queens, NY Q4 2015 90% 18,346 12,399 Shirlington Rd, LLC ("SRLLC") (3) 1 Arlington, VA Q2 2015 90% 16,436 12,808 10 $ 263,371 $ 118,348 (1) The noncontrolling members of McDonald Ave, 22nd St, 46th St, and Exterior St have the option to put their ownership interest in the ventures to the Company for $10.0 million, $11.5 million, $14.2 million, and $37.8 million, respectively, within the one-year period after construction of each store is substantially complete. Additionally, the Company has a one-year option to call the ownership interest of the noncontrolling members of McDonald Ave, 22nd St, 46th St, and Exterior St for $10.0 million, $11.5 million, $14.2 million, and $37.8 million, respectively, beginning on the second anniversary of the respective store’s construction being substantially complete. The Company is accreting the respective liabilities during the development periods and, as of March 31, 2018, has accrued $3.3 million, $4.9 million, $9.7 million and $31.9 million related to McDonald Ave, 22 nd St, 46th St, and Exterior St, respectively. (2) In connection with the acquired property, 55th St assumed mortgage debt that was recorded at a fair value of $35.0 million, which fair value includes an outstanding principal balance totaling $32.5 million and a net premium of $2.5 million to reflect the estimated fair value of the debt at the time of assumption. The loan accrues interest at a fixed rate of 4.68%, matures on June 7, 2023, and is fully guaranteed by the Company. (3) The Company has a related party loan commitment to these ventures to fund all or a portion of the construction costs. As of March 31, 2018, the Company has funded $0.7 million of a total $6.9 million loan commitment to 92 nd St, $0.9 million of a total $10.8 million loan commitment to Waltham, $12.1 million of a total $12.8 million loan commitment to Jamaica Ave, and $12.6 million of a total $14.6 million loan commitment to SRLLC, which are included in the total liability amounts within the table above. These loans and related interest were eliminated during consolidation. As of March 31, 2018, the Company has not funded any of its $12.1 million loan commitment to Newtonville. 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 1.1% and 1.0% of the outstanding OP Units as of March 31, 2018 and December 31, 2017, respectively, were not owned by CubeSmart, the sole general partner. The interests in the Operating Partnership represented by these OP Units were a component of the consideration that the Operating Partnership paid to acquire certain self-storage properties. The holders of the OP Units are limited partners in the Operating Partnership and have the right to require CubeSmart to redeem all or part of their OP Units for, at the general partner’s option, an equivalent number of common shares of CubeSmart or cash based upon the fair value of an equivalent number of common shares of CubeSmart. However, the partnership agreement contains certain provisions that could result in a settlement outside the control of CubeSmart and the Operating Partnership, as CubeSmart does not have the ability to settle in unregistered shares. Accordingly, consistent with the guidance, the Operating Partnership will record the OP Units owned by third parties outside of permanent capital in the consolidated balance sheets. Net income or loss related to the OP Units owned by third parties is excluded from net income or loss attributable to Operating Partner in the consolidated statements of operations. On January 31, 2018, the Company acquired a store in Texas for $12.2 million and assumed an existing mortgage loan with an outstanding balance of approximately $7.2 million and immediately repaid the loan. In conjunction with the closing, the Company paid $0.2 million in cash and issued 168,011 OP Units, valued at approximately $4.8 million, to pay the remaining consideration. On April 12, 2017, the Company acquired a store in Illinois for $11.2 million. In conjunction with the closing, the Company paid $9.7 million and issued 58,000 Class C OP units to pay the remaining consideration. On May 9, 2017, the Company acquired a store in Maryland for $18.2 million and assumed an existing mortgage loan with an outstanding balance of approximately $5.9 million. In conjunction with the closing, the Company issued 440,160 OP Units, valued at approximately $12.3 million, to pay the remaining consideration. As of March 31, 2018 and December 31, 2017, 2,046,264 and 1,878,253 OP units, respectively, were held by third parties. 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, 2018 and December 31, 2017. As of March 31, 2018, the Operating Partnership recorded a decrease to OP Units owned by third parties and a corresponding increase to capital of $1.2 million. As of December 31, 2017, the Operating Partnership recorded an increase to OP Units owned by third parties and a corresponding decrease to capital of $4.0 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2018
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	13. COMMITMENTS AND CONTINGENCIES The Company is involved in claims from time to time, which arise in the ordinary course of business. In accordance with applicable accounting guidance, management establishes an accrued liability for litigation when those matters present loss contingencies that are both probable and reasonably estimable. In such cases, there may be exposure to loss in excess of those amounts accrued. The estimated loss, if any, is based upon currently available information and is subject to significant judgment, a variety of assumptions, and known and unknown uncertainties. In the opinion of management, the Company has made adequate provisions for potential liabilities, arising from any such matters, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets. However, litigation is inherently unpredictable, and the costs and other effects of pending or future litigation, governmental investigations, legal and administrative cases and proceedings (whether civil or criminal), settlements, judgments and investigations, claims, and changes in any such matters, could have a material adverse effect the Company’s business, financial condition, and operating results. On July 13, 2015, a putative class action was filed against the Company in the Federal District Court of New Jersey seeking to obtain declaratory, injunctive and monetary relief for a class of New Jersey consumers based upon alleged violations by the Company of the New Jersey Truth in Customer Contract, Warranty and Notice Act and the New Jersey Consumer Fraud Act. On April 19, 2018, the court granted final approval of a settlement for the class action. The settlement and associated expenses, which were previously reserved for, did not have a material impact on the Company’s consolidated financial position or results of operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2018
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	14. RELATED PARTY TRANSACTIONS The Company provides management services to certain joint ventures and other related parties. Management agreements provide for fee income to the Company based on a percentage of revenues at the managed stores. Total management fees for unconsolidated joint ventures or other entities in which the Company held an ownership interest for the three months ended March 31, 2018 and 2017 totaled $1.0 million and $0.9 million, respectively. The management agreements for certain joint ventures, other related parties and third-party stores provide for the reimbursement to the Company for certain expenses incurred to manage the stores. These amounts consist of amounts due for management fees, payroll, and other store expenses. The amounts due to the Company were $9.3 million and $7.5 million as of March 31, 2018 and December 31, 2017, respectively, and are reflected in Other assets, net on the Company’s consolidated balance sheets. Additionally, as discussed in note 12, the Company had outstanding mortgage loans receivable from consolidated joint ventures of $26.3 million and $25.5 million as of March 31, 2018 and December 31, 2017, respectively, which are eliminated for consolidation purposes. The Company believes that all of these related-party receivables are fully collectible. The HVP III, HVP IV, and HHFNE operating agreements provide for acquisition fees payable from HVP III, HVP IV, and HHFNE to the Company in an amount equal to 0.5% of the purchase price upon the closing of an acquisition by HVP III, HVP IV, and HHFNE, or any of their subsidiaries and completion of certain measures as defined in the operating agreements. During the three months ended March 31, 2018, the Company recognized $0.3 million in acquisition fees. There were no acquisition fees recognized during the three months ended March 31, 2017. Acquisition fees are included in Other income on the consolidated statements of operations.

PRO FORMA FINANCIAL INFORMATION

PRO FORMA FINANCIAL INFORMATION	3 Months Ended
	Mar. 31, 2018
PRO FORMA FINANCIAL INFORMATION
PRO FORMA FINANCIAL INFORMATION	15. PRO FORMA FINANCIAL INFORMATION During the three months ended March 31, 2018 and the year ended December 31, 2017, the Company acquired one store for a purchase price of $12.2 million (see note 4) and seven stores for an aggregate purchase price of approximately $80.7 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 2018 and 2017 as if each had occurred as of January 1, 2017 and 2016, respectively. The unaudited 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, 2018 and 2017 based on the assumptions described above: Three Months Ended March 31, 2018 2017 (in thousands, except per share data) Pro forma revenues $ 142,956 $ 134,171 Pro forma net income $ 35,679 $ 28,969 Earnings per share attributable to common shareholders: Basic - as reported $ 0.19 $ 0.14 Diluted - as reported $ 0.19 $ 0.14 Basic - as pro forma $ 0.19 $ 0.16 Diluted - as pro forma $ 0.19 $ 0.16

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2018
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, 2017, 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, 2017. The results of operations for the three months ended March 31, 2018 and 2017 are not necessarily indicative of the results of operations to be expected for any future period or the full year. The Company adopted Accounting Standard Update (“ASU“) No. 2015-02, Consolidation – Amendments to the Consolidation Analysis, as of January 1, 2016. The Company evaluated the application of this guidance and concluded that there were no changes to any previous conclusions with respect to consolidation accounting for any of its interests in less than wholly owned joint ventures. However, the Operating Partnership now meets the criteria as a variable interest entity. The Parent Company’s sole significant asset is its investment in the Operating Partnership. As a result, substantially all of the Parent Company’s assets and liabilities represent those assets and liabilities of the Operating Partnership. All of the Parent Company’s debt is an obligation of the Operating Partnership.
Reclassifications	Reclassifications Certain amounts from the prior year have been reclassified to conform to current year presentation as described below. On January 1, 2018, the Company adopted ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments, which requires retrospective application for a number of cash flow classification items for which there was diversity in practice. See Recent Accounting Pronouncements below for the specific cash flow areas addressed by the new standard. As a result of adopting the new guidance, $0.2 million of proceeds received from the settlement of insurance claims during the three months ended March 31, 2017 have been reclassified from operating activities to investing activities within the consolidated statements of cash flows. On January 1, 2018, the Company also adopted ASU No. 2016-18: Statement of Cash Flows (Topic 230) – Restricted Cash, which requires restricted cash to be included with cash and cash equivalents as part of the reconciliation of beginning and end of period balances within the consolidated statements of cash flows. As a result of adopting the new guidance, $0.2 million and $1.5 million of restricted cash, which were previously included as operating cash outflows and investing cash inflows within the consolidated statements of cash flows for the three months ended March 31, 2017, respectively, have been removed and are now included in the cash, cash equivalents, and restricted cash line items at the beginning and the end of period. Restricted cash consists of purchase deposits and cash deposits required for debt service requirements, capital replacement, and expense reserves in connection with the requirements of the Company’s loan agreements.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-12 – Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The purpose of this updated guidance is to better align a company’s financial reporting for hedging activities with the economic objectives of those activities. The transition guidance provides companies with the option of early adopting the new standard using a modified retrospective transition method in any interim period after issuance of the update, or alternatively requires adoption for fiscal years beginning after December 15, 2018. This adoption method will require the Company to recognize the cumulative effect of initially applying the new guidance as an adjustment to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that the Company adopts the update. The Company is in the process of evaluating the impact of this new guidance. In February 2017, as part of the new revenue standard, the FASB issued ASU No. 2017-05 – Other Income – Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance, which focuses on recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. Specifically, the new guidance defines “in substance nonfinancial asset”, unifies guidance related to partial sales of nonfinancial assets, eliminates rules specifically addressing sales of real estate, removes exceptions to the financial asset derecognition model, and clarifies the accounting for contributions of nonfinancial assets to joint ventures. The new guidance became effective on January 1, 2018 when the Company adopted the new revenue standard. Upon adoption, the majority of the Company’s sale transactions are now treated as dispositions of nonfinancial assets rather than dispositions of a business given the FASB’s recently revised definition of a business (see ASU No. 2017-01 below). Additionally, in partial sale transactions where the Company sells a controlling interest in real estate but retains a noncontrolling interest, the Company will now fully recognize a gain or loss on the fair value measurement of the retained interest as the new guidance eliminates the partial profit recognition model. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position or results of operations. In January 2017, the FASB issued ASU 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to include an input and a substantive process that together significantly contribute to the ability to create outputs. A framework is provided to evaluate when an input and a substantive process are present. The new guidance also narrows the definition of outputs, which are defined as the results of inputs and substantive processes that provide goods or services to customers, other revenue, or investment income. The standard became effective on January 1, 2018. Upon adoption of the new guidance, the majority of the Company’s future property acquisitions will now be considered asset acquisitions, resulting in the capitalization of acquisition related costs incurred in connection with these transactions and the allocation of purchase price and acquisition related costs to the assets acquired based on their relative fair values. The adoption of this guidance did not have a material impact on the Company’s consolidated financial position or results of operations. In November 2016, the FASB issued ASU No. 2016-18 - Statement of Cash Flows (Topic 230): Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. The new guidance also requires entities to reconcile such total to amounts on the balance sheet and disclose the nature of the restrictions. The standard became effective on January 1, 2018 and requires the use of the retrospective transition method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as the update primarily relates to financial statement presentation and disclosures as discussed in “ Reclassifications ” above. In August 2016, the FASB issued ASU No. 2016-15 – Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The eight items that the ASU provides classification guidance on include (1) debt prepayment and extinguishment costs, (2) settlement of zero-coupon debt instruments, (3) contingent consideration payments made after a business combination, (4) proceeds from the settlement of insurance claims, (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) distributions received from equity method investments, (7) beneficial interests in securitization transactions, and (8) separately identifiable cash flows and application of the predominance principle. The standard became effective on January 1, 2018 and requires the use of the retrospective transition method. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements as the update primarily relates to financial statement presentation and disclosures as discussed in “Reclassifications” above. In February 2016, the FASB issued ASU No. 2016-02 - Leases (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either financing or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The standard is effective on January 1, 2019, however early adoption is permitted. The Company is currently assessing the impact of the adoption of the new standard on its consolidated financial statements and related disclosures. At this time, the primary impact is expected to be related to the Company’s ten ground leases in which it serves as the ground lessee. In May 2014, the FASB issued ASU No. 2014-09 - Revenue from Contracts with Customers (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new guidance outlines a five-step process for customer contract revenue recognition that focuses on transfer of control as opposed to transfer of risk and rewards. The new guidance also requires enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenues and cash flows from contracts with customers. In May 2016, the FASB issued ASU No. 2016-12 - Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends ASU No. 2014-09 and is intended to address implementation issues that were raised by stakeholders. ASU No. 2016-12 provides practical expedients on collectability, noncash consideration, presentation of sales tax and contract modifications and completed contracts in transition. Both standards became effective on January 1, 2018. The Company finalized the impact of the adoption of ASU No. 2014-09 and ASU No. 2016-12 on the Company’s consolidated financial statements and related disclosures and adopted the standards using the modified retrospective transition method. The standards did not have a material impact on the Company’s consolidated statements of financial position or results of operations primarily because most of its revenue is derived from lease contracts, which are excluded from the scope of the new guidance. The Company’s insurance fee revenue, property management fee revenue, and merchandise sale revenue are included in the scope of the new guidance, however, the Company identified similar performance obligations under this standard as compared with deliverables and separate units of account identified under its previous revenue recognition methodology. Accordingly, revenue recognized under the new guidance does not differ materially from revenue recognized under previous guidance and there is no material prior year impact.

STORAGE PROPERTIES (Tables)

STORAGE PROPERTIES (Tables)	3 Months Ended
	Mar. 31, 2018
STORAGE PROPERTIES
Summary of real estate assets	March 31, December 31, 2018 2017 (in thousands) Land $ 718,584 $ 711,140 Buildings and improvements 3,135,382 3,086,252 Equipment 184,904 182,958 Construction in progress 163,039 181,365 Storage properties 4,201,909 4,161,715 Less: Accumulated depreciation (785,010) (752,925) Storage properties, net $ 3,416,899 $ 3,408,790
Schedule of acquisitions and dispositions of real estate assets	Number of Purchase / Sale Price Asset/Portfolio Market Transaction Date Stores (in thousands) 2018 Acquisitions: Texas Asset Texas Markets - Major January 2018 1 $ 12,200 1 $ 2017 Acquisitions: Illinois Asset Chicago April 2017 1 $ 11,200 Maryland Asset Baltimore / DC May 2017 1 18,200 California Asset Sacramento May 2017 1 3,650 Texas Asset Texas Markets - Major October 2017 1 4,050 Florida Asset Florida Markets - Other October 2017 1 14,500 Illinois Asset Chicago November 2017 1 11,300 Florida Asset Florida Markets - Other December 2017 1 17,750 7 $

INVESTMENT ACTIVITY (Tables)

INVESTMENT ACTIVITY (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT ACTIVITY
Schedule of revenue and earnings from acquisitions since the acquisition dates included in consolidated statement of operations	Three Months Ended March 31, 2018 (in thousands) Total revenue $ 150 Net loss (90)
Schedule of capitalized costs for investments in storage properties	CubeSmart Number of Ownership Total Store Location Stores Date Opened Interest Construction Costs (in thousands) Brooklyn, NY (1) 1 Q4 2017 100% $ 49,300 Washington, D.C. 1 Q3 2017 100% 27,800 New York, NY 1 Q3 2017 90% 81,200 North Palm Beach, FL 1 Q1 2017 100% 9,700 4 $ 168,000 (1) This property was previously owned by a consolidated joint venture, in which the Company had a 51% ownership interest. On March 28, 2018, the noncontrolling member in the venture put its 49% interest in the venture to the Company for $20.4 million, which is included in Development costs in the consolidated statements of cash flows.

INVESTMENT IN UNCONSOLIDATED 26

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables)	3 Months Ended
	Mar. 31, 2018
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES
Summary of the financial position of the ventures	March 31, December 31, 2018 2017 Assets Storage properties, net $ 688,775 $ 647,668 Other assets 11,110 8,284 Total assets $ 699,885 $ 655,952 Liabilities and equity Other liabilities $ 8,006 $ 6,853 Debt 346,661 346,475 Equity CubeSmart 99,085 91,206 Joint venture partners 246,133 211,418 Total liabilities and equity $ 699,885 $ 655,952
Summary of results of operations of the ventures	Three Months Ended March 31, 2018 2017 Total revenues $ 20,910 $ 19,423 Operating expenses 9,398 9,083 Interest expense, net 2,898 2,900 Depreciation and amortization 9,449 13,719 Net loss $ (835) $ (6,279) Company’s share of net loss $ (184) $ (772)

UNSECURED SENIOR NOTES (Tables)

UNSECURED SENIOR NOTES (Tables)	3 Months Ended
	Mar. 31, 2018
Senior Notes
Summary of debt	March 31, December 31, Effective Issuance Maturity Unsecured Senior Notes 2018 2017 Interest Rate Date Date (in thousands) $250M 4.800% Guaranteed Notes due 2022 $ 250,000 $ 250,000 4.82 % Jun-12 Jul-22 $300M 4.375% Guaranteed Notes due 2023 (1) 300,000 300,000 4.33 % Various (1) Dec-23 $300M 4.000% Guaranteed Notes due 2025 (2) 300,000 300,000 3.99 % Various (2) Nov-25 $300M 3.125% Guaranteed Notes due 2026 300,000 300,000 3.18 % Aug-16 Sep-26 Principal balance outstanding 1,150,000 Less: Discount on issuance of unsecured senior notes, net (605) (617) Less: Loan procurement costs, net (6,669) (6,923) Total unsecured senior notes, net $ 1,142,726 $ 1,142,460 (1) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.375% senior notes due 2023, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.375% senior notes due December 15, 2023 issued on December 17, 2013. The $50.0 million and $250.0 million traunches were priced at 105.040% and 98.995%, respectively, of the principal amount to yield 3.495% and 4.501%, respectively, to maturity. The combined weighted-average effective interest rate of the 2023 notes is 4.330%. (2) On April 4, 2017, the Operating Partnership issued $50.0 million of its 4.000% senior notes due 2025, which are part of the same series as the $250.0 million principal amount of the Operating Partnership’s 4.000% senior notes due November 15, 2025 issued on October 26, 2015. The $50.0 million and $250.0 million traunches were priced at 101.343% and 99.735%, respectively, of the principal amount to yield 3.811% and 4.032%, respectively, to maturity. The combined weighted-average effective interest rate of the 2025 notes is 3.994%.

REVOLVING CREDIT FACILITY AND28

REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Tables)	3 Months Ended
	Mar. 31, 2018
Credit Facility and Term Loan Facility
Summary of debt	Carrying Value as of: Effective Interest March 31, December 31, Rate as of Maturity Unsecured Term Loans 2018 2017 March 31, 2018 (1) Date (in thousands) Credit Facility Unsecured term loan $ 200,000 $ 200,000 3.18 % Jan-19 Term Loan Facility Unsecured term loan (2) 100,000 100,000 3.62 % Jan-20 Principal balance outstanding 300,000 300,000 Less: Loan procurement costs, net (503) (604) Total unsecured term loans, net $ 299,497 $ (1) Pricing on the Term Loan Facility and the unsecured term loan under the Credit Facility is dependent on the Company’s unsecured debt credit ratings. At the Company’s current Baa2/BBB level, amounts drawn under the term loan scheduled to mature in January 2019 are priced at 1.30% over LIBOR, while amounts drawn under the term loan scheduled to mature in January 2020 are priced at 1.15% over LIBOR, excluding the impact of interest rate swaps. As of March 31, 2018, borrowings under the Credit Facility, inclusive of the Revolver, and Term Loan Facility, as amended and after giving effect to the interest rate swaps, had an effective weighted average interest rate of 3.27%. (2) As of March 31, 2018, the Company had interest rate swaps in place on these borrowings that fix 30-day LIBOR (see note 10).

MORTGAGE LOANS AND NOTES PAYA29

MORTGAGE LOANS AND NOTES PAYABLE (Tables) - Mortgages	3 Months Ended
	Mar. 31, 2018
Summary of debt	Carrying Value as of: March 31, December 31, Effective Maturity Mortgage Loans and Notes Payable 2018 2017 Interest Rate Date (in thousands) YSI 33 $ 9,466 $ 9,547 6.42 % Jul-19 YSI 26 8,176 8,228 4.56 % Nov-20 YSI 57 2,870 2,889 4.61 % Nov-20 YSI 55 22,390 22,508 4.85 % Jun-21 YSI 24 25,498 25,700 4.64 % Jun-21 YSI 65 2,399 2,411 3.85 % Jun-23 YSI 66 31,585 31,727 3.51 % Jun-23 YSI 68 5,747 5,786 3.78 % May-24 Principal balance outstanding 108,131 108,796 Plus: Unamortized fair value adjustment 3,103 3,286 Less: Loan procurement costs, net (599) (648) Total mortgage loans and notes payable, net $ 110,635 $
Schedule of the future principal payment requirements on the outstanding mortgage loans and notes payable	The following table represents the future principal payment requirements on the outstanding mortgage loans and notes payable as of March 31, 2018 (in thousands): 2018 $ 1,985 2019 11,652 2020 12,791 2021 45,057 2022 923 2023 and thereafter 35,723 Total mortgage payments 108,131 Plus: Unamortized fair value adjustment 3,103 Less: Loan procurement costs, net (599) Total mortgage loans and notes payable, net $ 110,635

ACCUMULATED OTHER COMPREHENSI30

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)	3 Months Ended
	Mar. 31, 2018
ACCUMULATED OTHER COMPREHENSIVE INCOME
Summary of changes in accumulated other comprehensive income by component	The following table summarizes the changes in accumulated other comprehensive income by component for the three months ended March 31, 2018 (in thousands): Unrealized losses on interest rate swaps Other comprehensive gain before reclassifications $ 59 Amounts reclassified from accumulated other comprehensive income 217 (1) Net current-period other comprehensive gain 276 Balance at December 31, 2017 3 Balance at March 31, 2018 $ 279 See note 10 for additional information about the effects of the amounts reclassified.

RISK MANAGEMENT AND USE OF FI31

RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
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 as of March 31, 2018 and December 31, 2017, respectively (dollars in thousands): Hedge Hedge Notional Amount Effective Fair Value Product Type (1) March 31, 2018 December 31, 2017 Strike Date Maturity March 31, 2018 December 31, 2017 Swap Cash flow $ 40,000 $ 40,000 % 6/20/2011 6/20/2018 $ (50) $ (161) Swap Cash flow 40,000 40,000 % 6/20/2011 6/20/2018 (51) (163) Swap Cash flow 20,000 20,000 % 6/20/2011 6/20/2018 (26) (82) $ 100,000 $ 100,000 $ (127) $ (406) (1) Hedging unsecured variable rate debt by fixing 30-day LIBOR.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2018 are classified in the table below in one of the three categories described above (in thousands): Level 1 Level 2 Level 3 Interest rate swap derivative liabilities $ — $ 127 $ — Total liabilities at fair value $ — $ 127 $ — Financial assets and liabilities carried at fair value as of December 31, 2017 are classified in the table below in one of the three categories described above (in thousands): Level 1 Level 2 Level 3 Interest rate swap derivative liabilities $ — $ 406 $ — Total liabilities at fair value $ — $ 406 $ —

NONCONTROLLING INTERESTS (Table

NONCONTROLLING INTERESTS (Tables)	3 Months Ended
	Mar. 31, 2018
NONCONTROLLING INTERESTS
Schedule of noncontrolling interests in subsidiaries	Date Opened / CubeSmart Number Estimated Ownership March 31, 2018 Development Ventures of Stores Location Opening Interest Total Assets Total Liabilities CS SDP Newtonville, LLC ("Newtonville") (3) 1 Newtonville, MA Q4 2019 (est.) 90% $ 6,489 $ 51 CS 1158 McDonald Ave, LLC ("McDonald Ave") (1) 1 Brooklyn, NY Q3 2019 (est.) 51% 20,228 3,885 CS SJM E 92nd Street, LLC ("92nd St") (3) 1 New York, NY Q3 2019 (est.) 90% 2,493 2,012 CS 160 East 22nd St, LLC ("22nd St") (1) 1 Bayonne, NJ Q1 2019 (est.) 51% 7,882 5,560 CS SDP Waltham, LLC ("Waltham") (3) 1 Waltham, MA Q1 2019 (est.) 90% 7,510 1,726 2225 46th St, LLC ("46th St") (1) 1 Queens, NY Q4 2018 (est.) 51% 30,737 10,772 2880 Exterior St, LLC ("Exterior St") (1) 1 Bronx, NY Q3 2018 (est.) 51% 72,003 35,524 444 55 th Street Holdings, LLC ("55th St") (2) 1 New York, NY Q3 2017 90% 81,247 33,611 186 Jamaica Avenue, LLC ("Jamaica Ave") (3) 1 Queens, NY Q4 2015 90% 18,346 12,399 Shirlington Rd, LLC ("SRLLC") (3) 1 Arlington, VA Q2 2015 90% 16,436 12,808 10 $ 263,371 $ 118,348 (1) The noncontrolling members of McDonald Ave, 22nd St, 46th St, and Exterior St have the option to put their ownership interest in the ventures to the Company for $10.0 million, $11.5 million, $14.2 million, and $37.8 million, respectively, within the one-year period after construction of each store is substantially complete. Additionally, the Company has a one-year option to call the ownership interest of the noncontrolling members of McDonald Ave, 22nd St, 46th St, and Exterior St for $10.0 million, $11.5 million, $14.2 million, and $37.8 million, respectively, beginning on the second anniversary of the respective store’s construction being substantially complete. The Company is accreting the respective liabilities during the development periods and, as of March 31, 2018, has accrued $3.3 million, $4.9 million, $9.7 million and $31.9 million related to McDonald Ave, 22 nd St, 46th St, and Exterior St, respectively. (2) In connection with the acquired property, 55th St assumed mortgage debt that was recorded at a fair value of $35.0 million, which fair value includes an outstanding principal balance totaling $32.5 million and a net premium of $2.5 million to reflect the estimated fair value of the debt at the time of assumption. The loan accrues interest at a fixed rate of 4.68%, matures on June 7, 2023, and is fully guaranteed by the Company. (3) The Company has a related party loan commitment to these ventures to fund all or a portion of the construction costs. As of March 31, 2018, the Company has funded $0.7 million of a total $6.9 million loan commitment to 92 nd St, $0.9 million of a total $10.8 million loan commitment to Waltham, $12.1 million of a total $12.8 million loan commitment to Jamaica Ave, and $12.6 million of a total $14.6 million loan commitment to SRLLC, which are included in the total liability amounts within the table above. These loans and related interest were eliminated during consolidation. As of March 31, 2018, the Company has not funded any of its $12.1 million loan commitment to Newtonville.

PRO FORMA FINANCIAL INFORMATI34

PRO FORMA FINANCIAL INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2018
PRO FORMA FINANCIAL INFORMATION
Schedule of consolidated results of operations on a pro forma basis	Three Months Ended March 31, 2018 2017 (in thousands, except per share data) Pro forma revenues $ 142,956 $ 134,171 Pro forma net income $ 35,679 $ 28,969 Earnings per share attributable to common shareholders: Basic - as reported $ 0.19 $ 0.14 Diluted - as reported $ 0.19 $ 0.14 Basic - as pro forma $ 0.19 $ 0.16 Diluted - as pro forma $ 0.19 $ 0.16

ORGANIZATION AND NATURE OF OP35

ORGANIZATION AND NATURE OF OPERATIONS (Details)	Jan. 31, 2018shares	May 09, 2017shares	Mar. 31, 2018statesegment
Number of states in which self-storage facilities are located | state			23
Number of reportable segments | segment			1
Percentage of the entity's partnership interest in Operating Partnership			98.90%
Common stock, conversion ratio			1
Capital Unit Class C
Issuance of OP Units (in shares) | shares	168,011	440,160

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reclassifications (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash, cash equivalents, and restricted cash at beginning of period	$ 9,158	$ 9,637	$ 10,866
Cash, cash equivalents, and restricted cash at end of period	8,982	9,158	9,637
Accounting Standards Update 2016-18 | Reclassifications
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash, cash equivalents, and restricted cash at beginning of period		1,500	200
Cash, cash equivalents, and restricted cash at end of period			1,500
CubeSmart, L.P. and Subsidiaries
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cash, cash equivalents, and restricted cash at beginning of period	9,158	9,637	10,866
Cash, cash equivalents, and restricted cash at end of period	$ 8,982	$ 9,158	$ 9,637

STORAGE PROPERTIES - Summary (D

STORAGE PROPERTIES - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
STORAGE FACILITIES
Storage facilities	$ 4,201,909	$ 4,161,715
Less: Accumulated depreciation	(785,010)	(752,925)
Storage facilities, net (including VIE assets of $268,343 and $291,496, respectively)	3,416,899	3,408,790
Land
STORAGE FACILITIES
Storage facilities	718,584	711,140
Buildings and improvements
STORAGE FACILITIES
Storage facilities	3,135,382	3,086,252
Equipment
STORAGE FACILITIES
Storage facilities	184,904	182,958
Construction in progress
STORAGE FACILITIES
Storage facilities	$ 163,039	$ 181,365

STORAGE PROPERTIES - Activity (

STORAGE PROPERTIES - Activity (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)facility	Mar. 31, 2017USD ($)facility
2018 Acquisitions
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility	1
Purchase Price | $	$ 12,200
2018 Acquisitions | Texas Asset January 2018
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility	1
Purchase Price | $	$ 12,200
2017 Acquisitions
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		7
Purchase Price | $		$ 80,650
2017 Acquisitions | Illinois Asset April 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 11,200
2017 Acquisitions | Maryland Asset May 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 18,200
2017 Acquisitions | California Asset May 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 3,650
2017 Acquisitions | Texas Asset October 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 4,050
2017 Acquisitions | Florida Asset October 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 14,500
2017 Acquisitions | Illinois Asset November 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 11,300
2017 Acquisitions | Florida Asset December 2017
STORAGE FACILITIES
Number of Facilities, acquisitions (in properties) | facility		1
Purchase Price | $		$ 17,750

INVESTMENT ACTIVITY (Details)

INVESTMENT ACTIVITY (Details) $ / shares in Units, $ in Thousands	Mar. 28, 2018USD ($)	Jan. 31, 2018USD ($)shares	Apr. 12, 2017USD ($)shares	Mar. 31, 2018USD ($)propertyfacilityshares	Mar. 31, 2017USD ($)facility	Dec. 31, 2017USD ($)propertyfacility$ / sharesshares	Mar. 31, 2018USD ($)facility
Self-storage facilities
Storage facilities				$ 4,201,909		$ 4,161,715	$ 4,201,909
Restricted cash				$ 2,946		$ 3,890	$ 2,946
Common stock, conversion ratio				1
Self storage in operation
Self-storage facilities
Number of self-storage facilities | facility							4
Total Construction Costs							$ 168,000
Self-storage Facility in Washington DC
Self-storage facilities
Number of self-storage facilities | facility							1
Ownership interest held by the entity (as a percent)							100.00%
Total Construction Costs							$ 27,800
Self-storage Facility In North Palm Beach, FL
Self-storage facilities
Number of self-storage facilities | facility							1
Ownership interest held by the entity (as a percent)							100.00%
Total Construction Costs							$ 9,700
Self-storage Facility in Brooklyn, NY
Self-storage facilities
Number of self-storage facilities | facility							1
Ownership interest held by the entity (as a percent)							90.00%
Total Construction Costs							$ 81,200
Self Storage Facility in Brooklyn, NY I
Self-storage facilities
Number of self-storage facilities | facility							1
Ownership interest held by the entity (as a percent)						51.00%	100.00%
Total Construction Costs							$ 49,300
Acquisition of remaining interest in real estate ventures (as a percent)	49.00%
Acquisition of noncontrolling interest	$ 20,400
2018 Acquisitions
Self-storage facilities
Number of self-storage facilities acquired | facility				1
Number of facilities under contract | facility				2
Aggregate purchase price				$ 12,200
Summary of the amounts of revenue and earnings of the 2016 and 2015 acquisitions since the acquisition dates
Total revenue							150
Net loss							(90)
2018 Acquisitions | Self storage under construction
Self-storage facilities
Number of self-storage facilities | facility				3
Deposit				$ 4,800			4,800
Expected aggregate purchase or sales price				74,200			74,200
2017 Acquisitions
Self-storage facilities
Number of self-storage facilities acquired | facility					7
Aggregate purchase price					$ 80,650
2017 Acquisitions | Self storage under construction
Self-storage facilities
Number of facilities under contract | facility						2
2017 Acquisitions | Self-storage facilities located in US
Self-storage facilities
Number of self-storage facilities acquired | facility						6
Aggregate purchase price						$ 69,500
Intangible value of the in-place leases						$ 3,200
Estimated life						12 months
Amortization expense				$ 800
Number of properties, assumed mortgage | facility						1
Assumed mortgage debt, at fair value						$ 6,200
Outstanding principal balance of mortgage debt assumed on acquisitions						5,900
Premium on debt assumed on acquisitions						300
Issuance of OP Shares						$ 12,300
Real Estate Acquisitions Expected in 2019 | Self storage under construction
Self-storage facilities
Number of facilities under contract | facility				7
Development costs				$ 146,200			146,200
Expected construction cost				$ 252,700
Self-storage facilities
Self-storage facilities
Number of self-storage facilities acquired | property				1		7
Aggregate purchase price				$ 12,200		$ 80,700
Texas
Self-storage facilities
Cash paid for acquisition		$ 200
OP units issued (in shares) | shares		168,011
Issuance of OP Shares		$ 4,800
Total consideration		12,200
Cash paid for acquisition of remaining interest in real estate ventures		$ 200
Texas | Self-storage facilities | 2018 Acquisitions
Self-storage facilities
Number of self-storage facilities acquired | facility				1
Aggregate purchase price				$ 12,200
Cash paid for acquisition				$ 200
Redemption period, holder				13 months
Intangible value of the in-place leases				$ 400			400
Estimated life				12 months
Amortization expense				$ 100
Assumed mortgage debt, at fair value				$ 7,200			$ 7,200
Common stock, conversion ratio				1
Cash paid for acquisition of remaining interest in real estate ventures				$ 200
New York | Real Estate Acquisitions Expected in 2019 | Self storage under construction
Self-storage facilities
Number of facilities under contract | facility				4
Massachusetts | Self storage under construction | PSI
Self-storage facilities
Number of facilities under contract | facility				2
Massachusetts | Real Estate Acquisitions Expected in 2019 | Self storage under construction
Self-storage facilities
Number of facilities under contract | facility				(2)
New Jersey | Real Estate Acquisitions Expected in 2019 | Self storage under construction
Self-storage facilities
Number of facilities under contract | facility				1
Illinois
Self-storage facilities
Cash paid for acquisition			$ 9,700
Units issued (in shares) | shares			58,000
Total consideration			$ 11,200
Cash paid for acquisition of remaining interest in real estate ventures			$ 9,700
Illinois | Self-storage facilities | 2017 Acquisitions
Self-storage facilities
Number of self-storage facilities acquired | facility						1
Cash paid for acquisition						$ 9,700
Contract amount to purchase real estate						$ 11,200
Stated value (in dollars per share) | $ / shares						$ 25
Distribution rate (as a percent)						3.00%
Cash paid for acquisition of remaining interest in real estate ventures						$ 9,700
Capital Unit Class C | Texas | Self-storage facilities | 2018 Acquisitions
Self-storage facilities
Issuance of OP Units (in shares) | shares				168,011
Issuance of OP Shares				$ 4,800
Capital Unit Class C | Illinois | Self-storage facilities | 2017 Acquisitions
Self-storage facilities
Issuance of OP Units (in shares) | shares						58,400

INVESTMENT IN UNCONSOLIDATED 40

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Details) $ in Thousands	Jan. 31, 2018USD ($)	Nov. 01, 2017USD ($)	Oct. 16, 2017USD ($)	Dec. 15, 2016USD ($)facility	Jun. 15, 2016USD ($)facility	Apr. 21, 2016USD ($)facility	Mar. 30, 2016USD ($)facility	Jan. 26, 2016USD ($)facility	Dec. 08, 2015USD ($)facility	May 01, 2014USD ($)property	Dec. 10, 2013USD ($)property	Apr. 26, 2018USD ($)facility	Mar. 31, 2018USD ($)facility	Mar. 31, 2017USD ($)facility	Dec. 31, 2015USD ($)facility	Dec. 31, 2017USD ($)	Mar. 31, 2016USD ($)facility
Investment in Unconsolidated Real Estate Venture
Investment in real estate entities													$ 99,085			$ 91,206
Acquisitions of storage facilities													4,034	$ 600
Summary of results of operations of the real estate venture
Company’s share of net income (loss)													(184)	(772)
HVP and HHF
Assets
Storage facilities, net													688,775			647,668
Other assets													11,110			8,284
Total Assets													699,885			655,952
Liabilities and equity
Other liabilities													8,006			6,853
Debt													346,661			346,475
Equity
CubeSmart													99,085			91,206
Joint venture partner													246,133			211,418
Total liabilities and equity													699,885			$ 655,952
Summary of results of operations of the real estate venture
Total revenues													20,910	19,423
Operating expenses													9,398	9,083
Interest expense, net													2,898	2,900
Depreciation and amortization													9,449	13,719
Net income (loss)													(835)	(6,279)
Company’s share of net income (loss)													$ (184)	$ (772)
HHFNE | LIBOR
Investment in Unconsolidated Real Estate Venture
Interest rate (as percentage)				1.90%
HVP
Investment in Unconsolidated Real Estate Venture
Ownership interest in partnership (as a percent)															10.00%
Number of self-storage facilities acquired | facility					1	5	30	1	30				4	1
Number of self-storage facilities acquired, assumed mortgage debt | facility														6
Acquisitions of storage facilities					$ 7,000	$ 36,100	$ 112,800	$ 5,700	$ 193,700				$ 51,000	$ 2,700
Number of properties to be acquired under the contract | facility															37		31
Contract amount to purchase real estate															$ 242,500		$ 115,500
Intangible value of the in-place leases															$ 18,900
Assumed mortgage debt, at fair value														25,300
Outstanding principal balance of mortgage debt assumed on acquisitions														23,700
Premium on debt assumed on acquisitions														$ 1,600
Percentage of capital that is required to be contributed to fund the acquisition											50.00%
HVP | Affiliated Real Estate Investment Transactions
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility																	4
Arizona | HVP
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility													2
Maryland | HVP
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility													1
Michigan | HVP
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility															17
Connecticut | HHFNE
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility				3
Massachusetts | HHFNE
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility				6
Massachusetts | HVP
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility															7
Rhode Island | HHFNE
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility				2
Vermont | HHFNE
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility				2
Florida | HVP
Investment in Unconsolidated Real Estate Venture
Number of self-storage facilities acquired | facility												1
Acquisitions of storage facilities												$ 19,000
Number of properties to be acquired under the contract | facility															3
Texas
Investment in Unconsolidated Real Estate Venture
Acquisitions of storage facilities			$ 9,400
Cash paid for acquisition of remaining interest in real estate ventures	$ 200
Texas | HVP
Investment in Unconsolidated Real Estate Venture
Ownership interest in partnership (as a percent)		20.00%
Number of self-storage facilities acquired | facility													1
South Carolina | HVP
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility																	22
Georgia | HVP
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility																	5
HHFNE
Investment in Unconsolidated Real Estate Venture
Ownership interest in partnership (as a percent)				10.00%
Number of self-storage facilities acquired | facility				13
Acquisitions of storage facilities				$ 87,500
Intangible value of the in-place leases				6,000
Investment in joint venture				3,800
Payment to acquire ownership interest in joint venture				$ 44,500
HVP
Investment in Unconsolidated Real Estate Venture
Investment in real estate entities													$ 16,100
Intangible value of the in-place leases																	$ 10,600
Investment in joint venture							5,400						12,200		$ 10,700
Payment to acquire ownership interest in joint venture							63,500						$ 10,300		116,000
Venture's loan															$ 122,000
HVP | Maximum
Investment in Unconsolidated Real Estate Venture
Venture's loan							$ 185,500
HVP | LIBOR
Investment in Unconsolidated Real Estate Venture
Interest rate (as percentage)							2.00%								2.00%
HVP | HVP
Investment in Unconsolidated Real Estate Venture
Proceeds from venture related to real estate contribution		$ 7,500
HVP | Tennessee
Investment in Unconsolidated Real Estate Venture
Number of properties to be acquired under the contract | facility															10
HVP | Texas
Investment in Unconsolidated Real Estate Venture
Contribution of storage property to real estate venture		$ 9,400
HHF
Investment in Unconsolidated Real Estate Venture
Ownership interest in partnership (as a percent)											50.00%
Number of storage facilities owned by investee | property											35
Payment made for acquisition of interest in real estate ventures											$ 315,700
Intangible value of the in-place leases											$ 12,100
Proceeds after closing costs distributed proportionately to partners										$ 99,200
HHF | Secured loan 3.59% due April 30, 2021
Investment in Unconsolidated Real Estate Venture
Amount of loan obtained										$ 100,000
Interest on real estate venture debt										3.59%
HHF | Texas
Investment in Unconsolidated Real Estate Venture
Number of storage facilities owned by investee | property										34	34
HHF | North Carolina
Investment in Unconsolidated Real Estate Venture
Number of storage facilities owned by investee | property											1

UNSECURED SENIOR NOTES (Details

UNSECURED SENIOR NOTES (Details) $ in Thousands	Apr. 04, 2017USD ($)	Oct. 26, 2015USD ($)	Dec. 17, 2013USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Mortgage loans and Notes payable
Less: Loan procurement costs, net				$ (1,463)	$ (1,592)
Total unsecured senior notes, net				1,142,726	1,142,460
CubeSmart, L.P. and Subsidiaries
Mortgage loans and Notes payable
Less: Loan procurement costs, net				(1,463)	(1,592)
Total unsecured senior notes, net				1,142,726	1,142,460
Senior Notes
Mortgage loans and Notes payable
Carrying value				1,150,000	1,150,000
Less: Discount on issuance of notes, net				(605)	(617)
Less: Loan procurement costs, net				(6,669)	(6,923)
Total unsecured senior notes, net				$ 1,142,726	1,142,460
Senior Notes | Maximum
Mortgage loans and Notes payable
Consolidated leverage ratio				0.60
Secured debt leverage ratio				0.40
Senior Notes | Minimum
Mortgage loans and Notes payable
Consolidated interest coverage ratio				1.50
Financial and customary covenant, minimum unencumbered asset (as a percent)				150.00%
Senior notes 4.800% due 2022
Mortgage loans and Notes payable
Senior notes, principal amount				$ 250,000
Interest rate (as a percent)				4.80%
Carrying value				$ 250,000	250,000
Effective interest rate (as a percent)				4.82%
Senior notes 4.375% due 2023
Mortgage loans and Notes payable
Senior notes, principal amount				$ 300,000
Interest rate (as a percent)	4.375%		4.375%	4.375%
Carrying value				$ 300,000	300,000
Effective interest rate (as a percent)	3.495%		4.501%	4.33%
Effective weighted average interest rate (as a percent)				4.33%
Proceeds from senior notes	$ 50,000		$ 250,000
Debt instrument, redemption percentage	105.04%		98.995%
Senior notes 4.000% due 2025
Mortgage loans and Notes payable
Senior notes, principal amount				$ 300,000
Interest rate (as a percent)	4.00%	4.00%		4.00%
Carrying value				$ 300,000	300,000
Effective interest rate (as a percent)	3.811%	4.032%		3.99%
Effective weighted average interest rate (as a percent)				3.994%
Proceeds from senior notes	$ 50,000	$ 250,000
Debt instrument, redemption percentage	101.343%	99.735%
Senior Notes 3.125% Due 2026
Mortgage loans and Notes payable
Senior notes, principal amount				$ 300,000
Interest rate (as a percent)				3.125%
Carrying value				$ 300,000	300,000
Effective interest rate (as a percent)				3.18%
Credit Facility
Mortgage loans and Notes payable
Less: Loan procurement costs, net				$ (503)	$ (604)
Effective weighted average interest rate (as a percent)				3.27%

REVOLVING CREDIT FACILITY AND42

REVOLVING CREDIT FACILITY AND UNSECURED TERM LOANS (Details)	Apr. 06, 2017USD ($)	Apr. 04, 2017USD ($)	Oct. 26, 2015USD ($)	Dec. 17, 2013USD ($)	Jun. 20, 2011USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Apr. 22, 2015USD ($)
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Loan procurement costs, net of amortization						$ 1,463,000	$ 1,592,000
Unsecured term loan						299,497,000	299,396,000
Less: Loan procurement costs, net						(1,463,000)	(1,592,000)
Term Loan B
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Unsecured term loan						$ 100,000,000	100,000,000
Effective interest rate (as a percent)						3.62%
Term Loan Facility | Maximum
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Total indebtedness to total asset value ratio (as a percent)						60.00%
Percentage of funds from operations that can be distributed on common shares						95.00%
Term Loan Facility | Term Loan A
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Maximum borrowing capacity					$ 100,000,000
Term of debt instrument					5 years
Variable interest rate basis						LIBOR
Repayment of outstanding debt	$ 100,000,000
Term Loan Facility | Term Loan A | Baa2/BBB
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Interest rate, basis spread (as a percent)						1.30%
Term Loan Facility | Term Loan B
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Maximum borrowing capacity					$ 100,000,000
Term of debt instrument					7 years
Variable interest rate basis						LIBOR
Term Loan Facility | Term Loan B | Baa2/BBB
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Interest rate, basis spread (as a percent)						1.15%
Credit Facility
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Loan procurement costs, net of amortization						$ 503,000	604,000
Unsecured term loan						300,000,000	300,000,000
Less: Loan procurement costs, net						(503,000)	(604,000)
Total unsecured term loans, net						$ 299,497,000	299,396,000
Effective weighted average interest rate (as a percent)						3.27%
Tangible net worth						$ 821,211,200
Net proceeds from equity issuances added to minimum tangible net worth (as a percent)						75.00%
Credit Facility | Minimum
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Fixed charge coverage ratio						1.50
Credit Facility | Maximum
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Total indebtedness to total asset value ratio (as a percent)						60.00%
Percentage of funds from operations that can be distributed on common shares						95.00%
Credit Facility | Revolver
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Maximum borrowing capacity								$ 500,000,000
Interest rate, basis spread (as a percent)						1.25%
Facility fee (as a percent)						0.15%
Remaining borrowing capacity						$ 362,900,000
Outstanding letter of credit						700,000
Credit Facility | Unsecured term loan
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Unsecured term loan						$ 200,000,000	$ 200,000,000
Effective interest rate (as a percent)						3.18%
Senior notes 4.375% due 2023
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Proceeds from senior notes		$ 50,000,000		$ 250,000,000
Interest rate (as a percent)		4.375%		4.375%		4.375%
Effective interest rate (as a percent)		3.495%		4.501%		4.33%
Effective weighted average interest rate (as a percent)						4.33%
Senior notes 4.000% due 2025
SECURED CREDIT FACILITY, UNSECURED CREDIT FACILITY AND SECURED TERM LOANS
Proceeds from senior notes		$ 50,000,000	$ 250,000,000
Interest rate (as a percent)		4.00%	4.00%			4.00%
Effective interest rate (as a percent)		3.811%	4.032%			3.99%
Effective weighted average interest rate (as a percent)						3.994%

MORTGAGE LOANS AND NOTES PAYA43

MORTGAGE LOANS AND NOTES PAYABLE - Summary (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Mortgage loans and Notes payable
Less: Loan procurement costs, net	$ (1,463)	$ (1,592)
Total mortgage loans and notes payable	110,635	111,434
Net book value of self-storage facilities	3,416,899	3,408,790
Mortgages
Mortgage loans and Notes payable
Carrying value	108,131	108,796
Plus: Unamortized fair value adjustment	3,103	3,286
Less: Loan procurement costs, net	(599)	(648)
Total mortgage loans and notes payable	110,635	111,434
Net book value of self-storage facilities	235,300	236,900
YSI 33
Mortgage loans and Notes payable
Carrying value	$ 9,466	9,547
Effective interest rate (as a percent)	6.42%
YSI 26
Mortgage loans and Notes payable
Carrying value	$ 8,176	8,228
Effective interest rate (as a percent)	4.56%
YSI 57
Mortgage loans and Notes payable
Carrying value	$ 2,870	2,889
Effective interest rate (as a percent)	4.61%
YSI 55
Mortgage loans and Notes payable
Carrying value	$ 22,390	22,508
Effective interest rate (as a percent)	4.85%
YSI 24
Mortgage loans and Notes payable
Carrying value	$ 25,498	25,700
Effective interest rate (as a percent)	4.64%
YSI 65
Mortgage loans and Notes payable
Carrying value	$ 2,399	2,411
Effective interest rate (as a percent)	3.85%
YSI 66
Mortgage loans and Notes payable
Carrying value	$ 31,585	31,727
Effective interest rate (as a percent)	3.51%
YSI 68
Mortgage loans and Notes payable
Carrying value	$ 5,747	$ 5,786
Effective interest rate (as a percent)	3.78%

MORTGAGE LOANS AND NOTES PAYA44

MORTGAGE LOANS AND NOTES PAYABLE - Future Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end
Less: Loan procurement costs, net	$ (1,463)	$ (1,592)
Total mortgage loans and notes payable, net	110,635	111,434
Mortgages
Future principal payment requirements on the outstanding mortgage loans and notes payable at year end
2,018	1,985
2,019	11,652
2,020	12,791
2,021	45,057
2,022	923
2023 and thereafter	35,723
Total mortgage payments	108,131	108,796
Plus: Unamortized fair value adjustment	3,103	3,286
Less: Loan procurement costs, net	(599)	(648)
Total mortgage loans and notes payable, net	$ 110,635	$ 111,434

ACCUMULATED OTHER COMPREHENSI45

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Changes in accumulated other comprehensive income by component
Beginning balance	$ 3
Ending balance	279
Unrealized losses on interest rate swaps
Changes in accumulated other comprehensive income by component
Beginning balance	3
Other comprehensive loss before reclassifications	59
Amounts reclassified from accumulated other comprehensive loss	217
Net current-period other comprehensive income (loss)	276
Ending balance	$ 279

RISK MANAGEMENT AND USE OF FI46

RISK MANAGEMENT AND USE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Derivative financial instruments
Unrealized losses reclassified from accumulated other comprehensive loss	$ 200
Amount estimated to be reclassified as an increase to interest expense	100
Designated | Cash flow
Derivative financial instruments
Notional Amount	100,000	$ 100,000
Fair Value	$ (127)	(406)
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	40,000
Swap, Strike rate (as a percent)	2.459%
Fair Value	$ (50)	(161)
Designated | Cash flow | Hedge Product, Swap two
Derivative financial instruments
Notional Amount	$ 40,000	40,000
Swap, Strike rate (as a percent)	2.4725%
Fair Value	$ (51)	(163)
Designated | Cash flow | Hedge Product, Swap three
Derivative financial instruments
Notional Amount	$ 20,000	20,000
Swap, Strike rate (as a percent)	2.475%
Fair Value	$ (26)	$ (82)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)item	Dec. 31, 2017USD ($)
Fair value of financial assets and liabilities carried at fair value
Aggregate carrying value of total debt	$ 1,700	$ 1,600
Estimated fair value of total debt	$ 1,700	1,700
Interest rate swap
Fair value of financial assets and liabilities carried at fair value
Number of counterparties to derivative contracts who experienced significant downgrades in 2017 | item	0
Level 2
Fair value of financial assets and liabilities carried at fair value
Total liabilities at fair value	$ 127	406
Level 2 | Interest rate swap
Fair value of financial assets and liabilities carried at fair value
Derivative Liabilities	$ 127	$ 406

NONCONTROLLING INTERESTS - Inte

NONCONTROLLING INTERESTS - Interests in Consolidated Real Estate Joint Ventures (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018USD ($)facility	Dec. 31, 2015USD ($)
Interests in Consolidated Real Estate Joint Ventures
Reduction to additional paid in capital	$ 738	$ 410
CS 1158 McDonald Ave LLC
Interests in Consolidated Real Estate Joint Ventures
Option to call ownership interest of another member	10,000
Accretion liability	3,300
CS 160 East 22nd Street LLC
Interests in Consolidated Real Estate Joint Ventures
Option to call ownership interest of another member	11,500
2225 46th Street LLC
Interests in Consolidated Real Estate Joint Ventures
Option to call ownership interest of another member	14,200
Accretion liability	4,900
2880 Exterior St. LLC
Interests in Consolidated Real Estate Joint Ventures
Option to call ownership interest of another member	37,800
Accretion liability	9,700
3068 Cropsey Ave LLC
Interests in Consolidated Real Estate Joint Ventures
Accretion liability	$ 31,900
VIE
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	10
Total assets	$ 263,371
Total liabilities	$ 118,348
Period of option to call ownership interest of another member	1 year
Period of option to put ownership interest in venture	1 year
VIE | CS SDP Newtonville LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 6,489
Total liabilities	51
Amount of mortgage loan commitment	$ 12,100
VIE | CS 1158 McDonald Ave LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	51.00%
Total assets	$ 20,228
Total liabilities	3,885
Option to put ownership interest in the venture	$ 10,000
VIE | CS SJM E 92nd Street LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 2,493
Total liabilities	2,012
Carrying amount of mortgage loans	700
Amount of mortgage loan commitment	$ 6,900
VIE | CS 160 East 22nd Street LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	51.00%
Total assets	$ 7,882
Total liabilities	5,560
Option to put ownership interest in the venture	$ 11,500
VIE | 2225 46th Street LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	51.00%
Total assets	$ 30,737
Total liabilities	10,772
Option to put ownership interest in the venture	$ 14,200
VIE | CS SDP Waltham LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 7,510
Total liabilities	1,726
Carrying amount of mortgage loans	900
Amount of mortgage loan commitment	$ 10,800
VIE | 2880 Exterior St. LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	51.00%
Total assets	$ 72,003
Total liabilities	35,524
Option to put ownership interest in the venture	$ 37,800
VIE | 444 55th Street Holdings, LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 81,247
Total liabilities	33,611
Assumed mortgage debt, at fair value	35,000
Outstanding principal balance of mortgage debt assumed on acquisitions	32,500
Premium on debt assumed on one of the acquisitions	$ 2,500
Interest rate (as a percent)	4.68%
VIE | 186 Jamaica Ave LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 18,346
Total liabilities	12,399
Carrying amount of mortgage loans	12,100
Amount of mortgage loan commitment	$ 12,800
VIE | Shirlington Rd LLC
Interests in Consolidated Real Estate Joint Ventures
Number of self-storage facilities owned and operated | facility	1
Ownership interest held by the entity (as a percent)	90.00%
Total assets	$ 16,436
Total liabilities	12,808
SRLLC
Interests in Consolidated Real Estate Joint Ventures
Carrying amount of mortgage loans	12,600
Amount of mortgage loan commitment	$ 14,600

NONCONTROLLING INTERESTS - Oper

NONCONTROLLING INTERESTS - Operating Partnership Ownership (Details) - USD ($) $ in Thousands	Jan. 31, 2018	May 09, 2017	Apr. 12, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Operating Partnership Ownership
OP Units outstanding which are not owned by the general partner (as a percent)				1.10%		1.00%
Adjustment for noncontrolling interest in the Operating Partnership				$ 1,169	$ 1,385	$ 4,000
Illinois
Operating Partnership Ownership
Total consideration			$ 11,200
Cash paid for acquisition			$ 9,700
Units issued (in shares)			58,000
Maryland
Operating Partnership Ownership
Total consideration		$ 18,200
Amount of mortgage loan commitment		$ 5,900
Units issued (in shares)		440,160
Units issued		$ 12,300
Texas
Operating Partnership Ownership
OP units issued (in shares)	168,011
Issuance of OP Shares	$ 4,800
Total consideration	12,200
Cash paid for acquisition	200
Amount of mortgage loan commitment	$ 7,200
CubeSmart, L.P. and Subsidiaries
Operating Partnership Ownership
OP units outstanding (in shares)				2,046,264		1,878,253
Number of trading days used to determine average of the closing prices of the shares				10 days
Adjustment for noncontrolling interest in the Operating Partnership				$ 1,169	$ 1,385

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Joint ventures related to affiliated real estate investments - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
RELATED PARTY TRANSACTIONS
Management fees	$ 1	$ 0.9
Amounts due to the Company from related parties	9.3		$ 7.5
Mortgage loans receivable from consolidated joint ventures	26.3		$ 25.5
Ventures
RELATED PARTY TRANSACTIONS
Acquisition fees	$ 0.3	$ 0
HHFNE and HVP Ventures
RELATED PARTY TRANSACTIONS
Acquisition fee (as a percent)	0.50%

PRO FORMA FINANCIAL INFORMATI51

PRO FORMA FINANCIAL INFORMATION (Details) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018USD ($)property$ / shares	Mar. 31, 2017USD ($)$ / shares	Dec. 31, 2017USD ($)property
Consolidated results of operations on a pro forma basis
Pro forma revenue | $	$ 142,956	$ 134,171
Pro forma income | $	$ 35,679	$ 28,969
Earnings per share from continuing operations:
Basic - as reported (in dollars per share)	$ 0.19	$ 0.14
Diluted - as reported (in dollars per share)	0.19	0.14
Basic - as pro forma (in dollars per share)	0.19	0.16
Diluted - as pro forma (in dollars per share)	$ 0.19	$ 0.16
Self-storage facilities
Self-storage facilities
Number of self-storage facilities acquired | property	1		7
Aggregate purchase price | $	$ 12,200		$ 80,700

CONSOLIDATED BALANCE SHEETS (LP

CONSOLIDATED BALANCE SHEETS (LP cube) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
ASSETS
Storage facilities	$ 4,201,909	$ 4,161,715
Less: Accumulated depreciation	(785,010)	(752,925)
Storage facilities, net (including VIE assets of $268,343 and $291,496, respectively)	3,416,899	3,408,790
Cash and cash equivalents	6,036	5,268
Restricted cash	2,946	3,890
Loan procurement costs, net of amortization	1,463	1,592
Investment in real estate venture, at equity	99,085	91,206
Other assets, net	39,105	34,590
Total assets	3,565,534	3,545,336
LIABILITIES AND CAPITAL
Unsecured senior notes, net	1,142,726	1,142,460
Revolving credit facility	136,400	81,700
Unsecured term loan	299,497	299,396
Mortgage loans and notes payable, net	110,635	111,434
Accounts payable, accrued expenses and other liabilities	122,703	143,344
Distributions payable	55,382	55,297
Deferred revenue	22,671	21,529
Security deposits	486	486
Total liabilities	1,890,500	1,855,646
Limited Partnership interests of third parties	57,705	54,320
Commitments and contingencies
Capital
Accumulated other comprehensive income	279	3
Total liabilities and equity	3,565,534	3,545,336
CubeSmart, L.P. and Subsidiaries
ASSETS
Storage facilities	4,201,909	4,161,715
Less: Accumulated depreciation	(785,010)	(752,925)
Storage facilities, net (including VIE assets of $268,343 and $291,496, respectively)	3,416,899	3,408,790
Cash and cash equivalents	6,036	5,268
Restricted cash	2,946	3,890
Loan procurement costs, net of amortization	1,463	1,592
Investment in real estate venture, at equity	99,085	91,206
Other assets, net	39,105	34,590
Total assets	3,565,534	3,545,336
LIABILITIES AND CAPITAL
Unsecured senior notes, net	1,142,726	1,142,460
Revolving credit facility	136,400	81,700
Unsecured term loan	299,497	299,396
Mortgage loans and notes payable, net	110,635	111,434
Accounts payable, accrued expenses and other liabilities	122,703	143,344
Distributions payable	55,382	55,297
Deferred revenue	22,671	21,529
Security deposits	486	486
Total liabilities	1,890,500	1,855,646
Limited Partnership interests of third parties	57,705	54,320
Capital
Operating Partner	1,610,083	1,629,131
Accumulated other comprehensive income	279	3
Total CubeSmart, L.P. capital	1,610,362	1,629,134
Noncontrolling interests in subsidiaries	6,967	6,236
Total capital	1,617,329	1,635,370
Total liabilities and equity	$ 3,565,534	$ 3,545,336

CONSOLIDATED BALANCE SHEETS (53

CONSOLIDATED BALANCE SHEETS (Parenthetical) (LP cube) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Storage facilities, net	$ 3,416,899	$ 3,408,790
VIE
Storage facilities, net	268,343	291,496
CubeSmart, L.P. and Subsidiaries
Storage facilities, net	3,416,899	3,408,790
CubeSmart, L.P. and Subsidiaries | VIE
Storage facilities, net	$ 268,343	$ 291,496

CONSOLIDATED STATEMENTS OF OP54

CONSOLIDATED STATEMENTS OF OPERATIONS (LP cube) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
REVENUES
Rental income	$ 124,161	$ 117,057
Other property related income	14,247	12,983
Property management fee income	4,469	2,997
Total revenues	142,877	133,037
OPERATING EXPENSES
Property operating expenses	48,754	44,874
Depreciation and amortization	34,966	38,119
General and administrative	8,744	9,494
Acquisition related costs		159
Total operating expenses	92,464	92,646
OPERATING INCOME	50,413	40,391
Interest:
Interest expense on loans	(15,155)	(13,599)
Loan procurement amortization expense	(579)	(706)
Equity in losses of real estate ventures	(184)	(772)
Other	304	(108)
Total other expense	(15,614)	(15,185)
NET INCOME	34,799	25,206
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Noncontrolling interest in subsidiaries	7	57
Operating Partnership interests of third parties	(383)	(277)
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS	$ 34,423	$ 24,986
Diluted earnings per share attributable to common shareholders (in dollars per share)	$ 0.19	$ 0.14
Weighted-average basic units outstanding (in units)	182,274	180,165
Weighted-average diluted units outstanding (in units)	183,222	181,265
CubeSmart, L.P. and Subsidiaries
REVENUES
Rental income	$ 124,161	$ 117,057
Other property related income	14,247	12,983
Property management fee income	4,469	2,997
Total revenues	142,877	133,037
OPERATING EXPENSES
Property operating expenses	48,754	44,874
Depreciation and amortization	34,966	38,119
General and administrative	8,744	9,494
Acquisition related costs		159
Total operating expenses	92,464	92,646
OPERATING INCOME	50,413	40,391
Interest:
Interest expense on loans	(15,155)	(13,599)
Loan procurement amortization expense	(579)	(706)
Equity in losses of real estate ventures	(184)	(772)
Other	304	(108)
Total other expense	(15,614)	(15,185)
NET INCOME	34,799	25,206
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS
Noncontrolling interest in subsidiaries	7	57
NET INCOME ATTRIBUTABLE TO CUBESMART L.P.	34,806	25,263
Operating Partnership interests of third parties	(383)	(277)
NET INCOME ATTRIBUTABLE TO THE COMPANY'S COMMON SHAREHOLDERS	$ 34,423	$ 24,986
Basic earnings per unit attributable to common unitholders	$ 0.19	$ 0.14
Diluted earnings per share attributable to common shareholders (in dollars per share)	$ 0.19	$ 0.14
Weighted-average basic units outstanding (in units)	182,274	180,165
Weighted-average diluted units outstanding (in units)	183,222	181,265

CONSOLIDATED STATEMENTS OF CO55

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (LP cube) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
NET INCOME	$ 34,799	$ 25,206
Other comprehensive income:
Unrealized gains on interest rate swaps	60	141
Reclassification of realized losses on interest rate swaps	219	695
OTHER COMPREHENSIVE INCOME	279	836
COMPREHENSIVE INCOME	35,078	26,042
Comprehensive income attributable to Operating Partnership interests of third parties	(383)	(277)
Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries	7	57
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY	34,702	25,822
CubeSmart, L.P. and Subsidiaries
NET INCOME	34,799	25,206
Other comprehensive income:
Unrealized gains on interest rate swaps	60	141
Reclassification of realized losses on interest rate swaps	219	695
OTHER COMPREHENSIVE INCOME	279	836
COMPREHENSIVE INCOME	35,078	26,042
Comprehensive income attributable to Operating Partnership interests of third parties	(383)	(277)
Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries	7	57
COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY	$ 34,702	$ 25,822

CONSOLIDATED STATEMENTS OF CAPI

CONSOLIDATED STATEMENTS OF CAPITAL (LP cube) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2015
Increase (Decrease) in Partners' Capital
Balance of Noncontrolling Interests in the Operating Partnership	$ 54,320
Contributions from noncontrolling interests in subsidiaries	738			$ 410
Adjustment for Operating Partnership interests of third parties	1,169	$ 1,385	$ 4,000
Net income (loss)	34,416	24,929
Other comprehensive income, net	276	827
Balance of Noncontrolling Interests in the Operating Partnership	57,705		54,320
Noncontrolling Interests in Operating Partnership
Increase (Decrease) in Partners' Capital
Balance of Noncontrolling Interests in the Operating Partnership	54,320	54,407	54,407
Issuance of OP units	4,782
Adjustment for Operating Partnership interests of third parties	(1,169)	(1,385)
Net income (loss)	383	277
Other comprehensive income (loss), net	3	9
Balance of Noncontrolling Interests in the Operating Partnership	57,705	52,735	54,320
CubeSmart, L.P. and Subsidiaries
Increase (Decrease) in Partners' Capital
Balance	1,635,370	1,635,370	1,635,370
Balance of Noncontrolling Interests in the Operating Partnership	54,320
Contributions from noncontrolling interests in subsidiaries	738	410
Issuance of common OP units	(44)	(73)
Issuance of restricted OP units	1	1
Conversion from OP units to shares		25
Exercise of OP unit options	2	30
Amortization of restricted OP units	(242)	(1,021)
OP unit compensation expense	423	375
Adjustment for Operating Partnership interests of third parties	1,169	1,385
Net income (loss)	34,416	24,929
Other comprehensive income, net	276	827
Common OP unit distributions	(54,780)	(48,707)
Balance	1,617,329	1,639,418	1,635,370	1,661,237
Balance of Noncontrolling Interests in the Operating Partnership	57,705		54,320
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interests in Operating Partnership
Increase (Decrease) in Partners' Capital
Balance of Noncontrolling Interests in the Operating Partnership	54,320
Issuance of OP units	4,782
Conversion from OP units to shares		(25)
Adjustment for Operating Partnership interests of third parties	(1,169)	(1,385)
Net income (loss)	383	277
Other comprehensive income (loss), net	3	9
Common OP unit distributions	(614)	(548)
Balance of Noncontrolling Interests in the Operating Partnership	57,705	52,735	54,320	54,407
CubeSmart, L.P. and Subsidiaries | Total Shareholders' Equity
Increase (Decrease) in Partners' Capital
Balance	1,629,134
Issuance of common OP units	(44)	(73)
Issuance of restricted OP units	1	1
Conversion from OP units to shares		25
Exercise of OP unit options	2	30
Amortization of restricted OP units	(242)	(1,021)
OP unit compensation expense	423	375
Adjustment for Operating Partnership interests of third parties	1,169	1,385
Net income (loss)	34,423	24,986
Other comprehensive income, net	276	827
Common OP unit distributions	(54,780)	(48,707)
Balance	1,610,362	1,633,210	1,629,134	1,655,382
CubeSmart, L.P. and Subsidiaries | Operating Partner
Increase (Decrease) in Partners' Capital
Balance	$ 1,629,131
Balance (in units)	182,216
Issuance of common OP units	$ (44)	(73)
Issuance of restricted OP units	$ 1	$ 1
Issuance of restricted OP units (in units)	64	88
Conversion from OP units to shares		$ 25
Conversion from OP units to shares (in units)		1
Exercise of OP unit options	$ 2	$ 30
Exercise of OP unit options (in units)		2
Amortization of restricted OP units	(242)	$ (1,021)
OP unit compensation expense	423	375
Adjustment for Operating Partnership interests of third parties	1,169	1,385
Net income (loss)	34,423	24,986
Common OP unit distributions	(54,780)	(48,707)
Balance	$ 1,610,083	$ 1,634,233	$ 1,629,131	$ 1,657,232
Balance (in units)	182,280	180,174	182,216	180,083
CubeSmart, L.P. and Subsidiaries | Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Partners' Capital
Balance	$ 3
Other comprehensive income, net	276	$ 827
Balance	279	(1,023)	$ 3	$ (1,850)
CubeSmart, L.P. and Subsidiaries | Noncontrolling Interest in Subsidiaries
Increase (Decrease) in Partners' Capital
Balance	6,236
Contributions from noncontrolling interests in subsidiaries	738	410
Net income (loss)	(7)	(57)
Balance	$ 6,967	$ 6,208	$ 6,236	$ 5,855

CONSOLIDATED STATEMENTS OF CA57

CONSOLIDATED STATEMENTS OF CASH FLOWS (LP cube) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Operating Activities
Net income	$ 34,799	$ 25,206
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	35,545	38,825
Equity in losses of real estate ventures	184	772
Equity compensation expense	1,592	1,355
Accretion of fair market value adjustment of debt	(183)	(129)
Changes in other operating accounts:
Other assets	(1,352)	(1,626)
Accounts payable and accrued expenses	(5,558)	2,595
Other liabilities	1,105	909
Net cash provided by operating activities	66,132	67,907
Investing Activities
Acquisitions of storage facilities	(4,034)	(600)
Additions and improvements to storage facilities	(5,394)	(6,671)
Development costs	(39,663)	(15,856)
Distributions Payable to Real Estate Partnerships	(10,320)	(116)
Proceeds from Divestiture of Real Estate Partnership	2,257	2,090
Net cash used in investing activities	(57,154)	(21,153)
Proceeds from:
Revolving credit facility	156,700	147,000
Principal payments on:
Revolving credit facility	(102,000)	(137,300)
Mortgage loans and notes payable	(7,831)	(6,811)
Cash paid upon vesting of restricted OP units	(1,411)	(2,001)
Contributions from noncontrolling interests in subsidiaries	738	410
Distributions paid to common OP unitholders	(54,746)	(48,690)
Net cash used in financing activities	(9,154)	(47,983)
Change in cash, cash equivalents, and restricted cash	(176)	(1,229)
Cash, cash equivalents, and restricted cash at beginning of period	9,158	10,866
Cash, cash equivalents, and restricted cash at end of period	8,982	9,637
Supplemental Cash Flow and Noncash Information
Cash paid for interest, net of interest capitalized	15,298	15,878
Supplemental disclosure of noncash activities:
Accretion of liability	7,266	8,034
Derivative valuation adjustment	279	836
Mortgage loan assumptions	7,166
Issuance of OP units	4,782
CubeSmart, L.P. and Subsidiaries
Operating Activities
Net income	34,799	25,206
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization	35,545	38,825
Equity in losses of real estate ventures	184	772
Equity compensation expense	1,592	1,355
Accretion of fair market value adjustment of debt	(183)	(129)
Changes in other operating accounts:
Other assets	(1,352)	(1,626)
Accounts payable and accrued expenses	(5,558)	2,595
Other liabilities	1,105	909
Net cash provided by operating activities	66,132	67,907
Investing Activities
Acquisitions of storage facilities	(4,034)	(600)
Additions and improvements to storage facilities	(5,394)	(6,671)
Development costs	(39,663)	(15,856)
Distributions Payable to Real Estate Partnerships	(10,320)	(116)
Proceeds from Divestiture of Real Estate Partnership	2,257	2,090
Net cash used in investing activities	(57,154)	(21,153)
Proceeds from:
Revolving credit facility	156,700	147,000
Principal payments on:
Revolving credit facility	(102,000)	(137,300)
Mortgage loans and notes payable	(7,831)	(6,811)
Proceeds from issuance of common OP units	(43)	(72)
Cash paid upon vesting of restricted OP units	(1,411)	(2,001)
Exercise of OP unit options	2	30
Contributions from noncontrolling interests in subsidiaries	738	410
Distributions paid to common OP unitholders	(55,309)	(49,239)
Net cash used in financing activities	(9,154)	(47,983)
Change in cash, cash equivalents, and restricted cash	(176)	(1,229)
Cash, cash equivalents, and restricted cash at beginning of period	9,158	10,866
Cash, cash equivalents, and restricted cash at end of period	8,982	9,637
Supplemental Cash Flow and Noncash Information
Cash paid for interest, net of interest capitalized	15,298	15,878
Supplemental disclosure of noncash activities:
Accretion of liability	7,266	8,034
Derivative valuation adjustment	279	$ 836
Mortgage loan assumptions	7,166
Issuance of OP units	$ 4,782