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INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 3 Months Ended
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Mar. 31, 2025
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES |
INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURES | 5. INVESTMENTS IN UNCONSOLIDATED 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 | ​ | March 31, | ​ | December 31, | ​ | March 31, | ​ | December 31,
Unconsolidated Real Estate Ventures |  | Interest | ​ | 2025 | ​ | 2024 |  | 2025 | ​ | 2024
Fontana Self Storage, LLC ("Fontana") (1) | ​ | 50% | ​ | 1 | ​ | 1 | ​ | $ | 13,109 | ​ | $ | 13,200
Rancho Cucamonga Self Storage, LLC ("RCSS") (1) | ​ | 50% | ​ | 1 | ​ | 1 | ​ | ​ | 19,972 | ​ | ​ | 20,107
191 V CUBE LLC ("HVP V") | ​ | 20% | ​ | 6 | ​ | 6 | ​ | ​ | 10,931 | ​ | ​ | 11,353
191 IV CUBE LLC ("HVP IV") (2) | ​ | 20% | ​ | - | ​ | 28 | ​ | ​ | — | ​ | ​ | 14,591
CUBE HHF Northeast Venture LLC ("HHFNE") | ​ | 10% | ​ | 13 | ​ | 13 | ​ | ​ | 1,316 | ​ | ​ | 1,469
CUBE HHF Limited Partnership ("HHF") | ​ | 50% | ​ | 28 | ​ | 28 | ​ | ​ | 30,714 | ​ | ​ | 31,253
​ | ​ | ​ | ​ | 49 | ​ | 77 | ​ | $ | 76,042 | ​ | $ | 91,973
​
| (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. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures. As of March 31, 2025, the remaining unamortized difference was $12.3 million for Fontana and $18.4 million for RCSS.
​
| (2) | On February 20, 2025, the Company purchased the remaining 80% interest in HVP IV for $452.8 million and consolidated the venture’s assets and liabilities. The $452.8 million purchase price included $44.4 million to repay the Company’s portion of the venture’s existing indebtedness, which was repaid in full at the time of the transaction (see note 4).
​ The Company determined that Fontana, RCSS, HVP V, HVP IV, HHFNE and HHF (collectively, 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 (except for HVP IV, which was consolidated as of the Company’s purchase of the remaining 80% interest on February 20, 2025). 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 earnings of real estate ventures within the Company’s consolidated statements of operations. ​ The amounts reflected in the following table are based on the historical financial information of the Ventures. The following is a summary of the financial position of the Ventures as of March 31, 2025 and December 31, 2024. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | March 31, | ​ | December 31,
​ | ​ | 2025 |  | 2024
Assets | ​ | (in thousands)
Storage properties, net | ​ | $ | 377,400 | ​ | $ | 684,067
Other assets | ​ |  | 13,352 | ​ |  | 17,126
Total assets | ​ | $ | 390,752 | ​ | $ | 701,193
​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities and equity | ​ | ​ | ​ | ​ | ​ | ​
Debt | ​ | $ | 251,633 | ​ | $ | 472,633
Other liabilities | ​ | ​ | 6,067 | ​ | ​ | 17,462
Equity | ​ | ​ | ​ | ​ | ​ | ​
CubeSmart | ​ |  | 45,278 | ​ | ​ | 60,993
Joint venture partners | ​ |  | 87,774 | ​ | ​ | 150,105
Total liabilities and equity | ​ | $ | 390,752 | ​ | $ | 701,193
​ The following is a summary of results of operations of the Ventures for the three months ended March 31, 2025 and 2024. ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended March 31,
​ |  | 2025 (1) |  | 2024
​ | ​ | (in thousands)
Total revenues | ​ | $ | 20,122 | ​ | $ | 24,586
Operating expenses | ​ |  | (8,917) | ​ | ​ | (10,375)
Other expenses | ​ | ​ | (110) | ​ | ​ | (106)
Interest expense, net | ​ |  | (4,928) | ​ | ​ | (4,658)
Depreciation and amortization | ​ |  | (6,296) | ​ |  | (7,532)
Net (loss) income | ​ | $ | (129) | ​ | $ | 1,915
Company’s share of net (loss) income | ​ | $ | 379 | ​ | $ | 845
​ ​ ​ ​
| (1) | HVP IV’s results of operations are included through February 20, 2025 (date of consolidation).

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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