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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables)

6 Months Ended

Jun. 30, 2023

INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES

Schedule of investments in real estate ventures

The Company’s investments in unconsolidated real estate ventures are summarized as follows (dollars in thousands):


		CubeSmart		Number of Stores as of				Carrying Value of Investment as of
		Ownership		June 30,		December 31,		June 30,			December 31,
Unconsolidated Real Estate Ventures		Interest		2023		2022		2023			2022
Fontana Self Storage, LLC ("Fontana") ⁽¹⁾		50%		1		1		$	13,692		$	13,789
Rancho Cucamonga Self Storage, LLC ("RCSS") ⁽¹⁾		50%		1		1			20,863			20,994
191 V CUBE LLC ("HVP V")		20%		6		6			13,508			14,318
191 IV CUBE LLC ("HVP IV")		20%		28		28			18,210			19,853
CUBE HHF Northeast Venture LLC ("HHFNE")		10%		13		13			1,045			1,101
CUBE HHF Limited Partnership ("HHF")		50%		28		28			34,164			35,938
				77		77		$	101,482		$	105,993

(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 June 30, 2023, this difference was $12.9 million and $19.3 million for Fontana and RCSS, respectively. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures.

Summary of the financial position of the ventures


		June 30,			December 31,
		2023			2022

Assets		(in thousands)
Storage properties, net		$	728,291		$	741,563
Other assets			11,598			11,708
Total assets		$	739,889		$	753,271

Liabilities and equity
Debt		$	469,678		$	468,783
Other liabilities			21,864			16,626
Equity
CubeSmart			69,209			73,289
Joint venture partners			179,138			194,573
Total liabilities and equity		$	739,889		$	753,271

Summary of results of operations of the ventures


		Three Months Ended June 30,						Six Months Ended June 30,
		2023			2022			2023			2022

		(in thousands)
Total revenues		$	24,555		$	26,632		$	48,619		$	51,596
Operating expenses			(10,545)			(11,238)			(21,064)			(21,981)
Other expenses			(180)			(124)			(248)			(238)
Interest expense, net			(4,425)			(3,601)			(8,508)			(7,453)
Depreciation and amortization			(7,676)			(9,540)			(15,447)			(19,928)
Net income		$	1,729		$	2,129		$	3,352		$	1,996
Company’s share of net income		$	790		$	680		$	3,341		$	974