XML 49 R31.htm IDEA: XBRL DOCUMENT

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables)

12 Months Ended

Dec. 31, 2022

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

Schedule of investments in real estate ventures


		CubeSmart		Number of Stores as of				Carrying Value of Investment as of
		Ownership		December 31,				December 31,
Unconsolidated Real Estate Ventures		Interest		2022		2021		2022			2021
Fontana Self Storage, LLC ("Fontana") ⁽¹⁾		50%		1		1		$	13,789		$	14,225
Rancho Cucamonga Self Storage, LLC ("RCSS") ⁽¹⁾		50%		1		1			20,994			21,536
191 V CUBE LLC ("HVP V") ⁽²⁾		20%		6		5			14,318			16,080
191 IV CUBE Southeast LLC ("HVPSE") ⁽³⁾		10%		-		14			—			4,541
191 IV CUBE LLC ("HVP IV")		20%		28		28			19,853			23,223
CUBE HHF Northeast Venture LLC ("HHFNE")		10%		13		13			1,101			1,291
CUBE HHF Limited Partnership ("HHF")		50%		28		28			35,938			38,855
				77		90		$	105,993		$	119,751

(1)

On December 9, 2021, the Company completed the acquisition of LAACO, which included a 50% interest in Fontana and RCSS, each of which owns one self-storage property in California. As of the date of acquisition, the Company recognized differences between the Company’s equity investment in Fontana and RCSS and the underlying equity reflected at the venture level. As of December 31, 2022, this difference was $13.1 million for Fontana and $19.6 million for RCSS. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures.

(2)

During the year ended December 31, 2022, HVP V acquired one store located in New Jersey for a purchase price of $33.2 million. The Company contributed $0.1 million towards this purchase, which was primarily funded by HVP V's secured term loan.

(3)

On August 30, 2022, HVPSE sold all 14 of its stores to an unaffiliated third-party buyer for an aggregate sales price of $235.0 million. The stores owned by HVPSE were located in Florida (2), Georgia (8) and South Carolina (4). As of the transaction date, HVPSE had an $81.6 million secured term loan, which was repaid in full at the time of the sale. Net proceeds to the venture from the transaction totaled $150.1 million, of which $49.9 million were distributed to the Company. The venture recorded gains which aggregated to approximately $114.1 million in connection with the sale. As of December 31, 2022, the venture retained cash of $3.5 million to pay venture-level expenses. After such expenses are paid, any remaining proceeds will be distributed to the venture’s partners per the terms of the operating agreement.

Summary of the financial position of the ventures


		December 31,
		2022			2021

Assets		(in thousands)
Storage properties, net		$	741,563		$	850,250
Other assets			11,708			34,760
Total assets		$	753,271		$	885,010

Liabilities and equity
Debt		$	468,783		$	526,972
Other liabilities			16,626			14,500
Equity
CubeSmart			73,289			86,083
Joint venture partners			194,573			257,455
Total liabilities and equity		$	753,271		$	885,010

Summary of results of operations of the ventures


		For the year ended December 31,
		2022			2021			2020

		(in thousands)
Total revenues		$	102,910		$	88,449		$	67,239
Operating expenses			(42,408)			(37,967)			(30,755)
Other expenses			(484)			(1,138)			(430)
Interest expense, net			(15,568)			(12,031)			(11,585)
Depreciation and amortization			(36,866)			(37,805)			(33,086)
Gains from sale of real estate, net			114,107			46,966			—
Net income (loss)		$	121,691		$	46,474		$	(8,617)
Company’s share of net income (loss)		$	48,877		$	25,275		$	178