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EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL

12 Months Ended

Dec. 31, 2023

EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL

EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS' EQUITY AND CAPITAL

17. EARNINGS PER SHARE AND UNIT AND SHAREHOLDERS’ EQUITY AND CAPITAL

Earnings per share and shareholders’ equity

The following is a summary of the elements used in calculating basic and diluted earnings per share:


	For the year ended December 31,
	2023		2022		2021

	(dollars and shares in thousands, except per share amounts)
Net income	$	412,435	$	292,472	$	230,813
Noncontrolling interests in the Operating Partnership		(2,535)		(1,931)		(7,873)
Noncontrolling interests in subsidiaries		857		722		542
Net income attributable to the Company’s common shareholders	$	410,757	$	291,263	$	223,482

Weighted average basic shares outstanding		225,424		224,928		203,832
Share options and restricted share units		817		953		1,177
Weighted average diluted shares outstanding ⁽¹⁾		226,241		225,881		205,009

Basic earnings per share attributable to common shareholders	$	1.82	$	1.29	$	1.10
Diluted earnings per share attributable to common shareholders ⁽²⁾	$	1.82	$	1.29	$	1.09

Income allocated to noncontrolling interests of the Operating Partnership has been excluded from the numerator and OP Units owned by third parties have been omitted from the denominator for the purpose of computing diluted earnings per share since the effect of including these amounts in the numerator and denominator would be anti-dilutive. Weighted average outstanding OP Units owned by third parties for the years ended December 31, 2023, 2022 and 2021 were 1.4 million, 1.5 million and 7.1 million, respectively.

Earnings per unit and capital

The following is a summary of the elements used in calculating basic and diluted earnings per unit:


	For the year ended December 31,
	2023		2022		2021

	(dollars and units in thousands, except per unit amounts)
Net income	$	412,435	$	292,472	$	230,813
Noncontrolling interests in subsidiaries		857		722		542
Net income attributable to CubeSmart, L.P.	$	413,292	$	293,194	$	231,355

Weighted average basic units outstanding ⁽³⁾		226,817		226,449		210,949
Unit options and restricted share units		817		953		1,177
Weighted average diluted units outstanding ⁽¹⁾ ⁽³⁾		227,634		227,402		212,126

Basic earnings per unit attributable to CubeSmart, L.P.	$	1.82	$	1.29	$	1.10
Diluted earnings per unit attributable to CubeSmart, L.P. ⁽²⁾	$	1.82	$	1.29	$	1.09

(1)

For the years ended December 31, 2023, 2022 and 2021, the Company declared cash dividends per common share/unit of $1.98, $1.78 and $1.45, respectively.

(2)

The amounts of anti-dilutive options that were excluded from the computation of diluted earnings per share/unit for the years ended December 31, 2023 and 2022 were 0.7 million and 0.3 million, respectively. There were no anti-dilutive options for the year ended December 31, 2021.

(3)

Prior period amounts have been updated to conform to current year presentation.

The OP Units owned by the General Partner and the OP Units owned by third parties have essentially the same economic characteristics as they share equally in the total net income or loss and distributions of the Operating Partnership. OP Units owned by third parties may be redeemed for cash, or at the Company’s option, common shares of CubeSmart on a one-for-one basis. The following is a summary of OP Units outstanding:

Common Shares

On November 19, 2021, the Company closed an underwritten offering of 15.5 million common shares at a public offering price of $51.00 per share, resulting in net proceeds of $765.6 million, after deducting offering costs.

The Company maintains an at-the-market equity program that enables it to offer and sell up to 60.0 million common shares through sales agents pursuant to equity distribution agreements (the “Equity Distribution Agreements”). The Company’s sales activity under the program for the years ended December 31, 2023, 2022 and 2021 is summarized below:


	For the year ended December 31,
	2023		2022		2021

	(dollars and shares in thousands, except per share amounts)
Number of shares sold		—		102		4,982
Average sales price per share	$	—	$	50.64	$	40.57
Net proceeds after deducting offering costs	$	—	$	4,936	$	199,977

The proceeds from the sales of common shares under the program during the years ended December 31, 2022 and 2021 were used to fund the acquisition and development of self-storage properties and for general corporate purposes. As of December 31, 2023, 2022 and 2021, 5.8 million common shares, 5.8 million common shares and 5.9 million common shares, respectively, remained available for issuance under the Equity Distribution Agreements.

As of December 31,

Outstanding OP Units owned by third parties

Outstanding OP Units owned by the General Partner