10-Q 1 a13-8107_110q.htm 10-Q

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


 

FORM 10-Q


 

(Mark one)

 

R

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the quarterly period ended March 31, 2013.

 

 

 

or

 

 

£

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

 

For the transition period from                            to                                  .

 

Commission file number:
001-32324 (CubeSmart)
000-54662 (CubeSmart, L.P.)

 


CUBESMART

CUBESMART, L.P.

(Exact Name of Registrant as Specified in its Charter)


 

Maryland (CubeSmart)
Delaware (CubeSmart, L.P.)

20-1024732
34-1837021

(State or Other Jurisdiction of

(I.R.S. Employer

Incorporation or Organization)

Identification No.)

 

 

460 East Swedesford Road

Suite 3000

 

Wayne, Pennsylvania

19087

(Address of Principal Executive Offices)

(Zip Code)

 

(610) 293-5700

(Registrant’s Telephone Number, Including Area Code)


 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 

CubeSmart

Yes R No £

CubeSmart, L.P.

Yes R No £

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

 

CubeSmart

Yes R No £

CubeSmart, L.P.

Yes R No £

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

CubeSmart:

 

 

 

Large accelerated filer R

Accelerated filer £

Non-accelerated filer £

Smaller reporting company £

 

 

 

 

CubeSmart, L.P.:

 

 

 

Large accelerated filer £

Accelerated filer £

Non-accelerated filer R

Smaller reporting company £

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 

CubeSmart

Yes £ No R

CubeSmart, L.P.

Yes £ No R

 

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

 

Class

 

Outstanding at May 2, 2013

Common shares, $0.01 par value per share, of CubeSmart

 

133,215,734

 

 

 



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EXPLANATORY NOTE

 

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2013 of CubeSmart (the “Parent Company” or “CubeSmart”) and CubeSmart, L.P. (the “Operating Partnership”). The Parent Company is a Maryland real estate investment trust, or REIT, that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership.  The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company.” In addition, terms such as “we”, “us”, or “our” used in this report may refer to the Company, the Parent Company, or the Operating Partnership.

 

The Parent Company is the sole general partner of the Operating Partnership and, as of March 31, 2013, owned a 98.3% interest in the Operating Partnership. The remaining 1.7% interest consists of common units of limited partnership interest issued by the Operating Partnership to third parties in exchange for contributions of properties to the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

 

Management operates the Parent Company and the Operating Partnership as one enterprise. The management teams of the Parent Company and the Operating Partnership are identical, and their constituents are officers of both the Parent Company and of the Operating Partnership.

 

There are few differences between the Parent Company and the Operating Partnership, which are reflected in the note disclosures in this report. The Company believes it is important to understand the differences between the Parent Company and the Operating Partnership in the context of how these entities operate as a consolidated enterprise. The Parent Company is a REIT, whose only material asset is its ownership of the partnership interests of the Operating Partnership.  As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all the assets of the Company and, directly or indirectly, holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s direct or indirect incurrence of indebtedness or through the issuance of partnership units of the Operating Partnership or equity interests in subsidiaries of the Operating Partnership.

 

The substantive difference between the Parent Company’s and the Operating Partnership’s filings is the fact that the Parent Company is a REIT with public equity, while the Operating Partnership is a partnership with no publicly traded equity. In the financial statements, this difference is primarily reflected in the equity (or capital for Operating Partnership) section of the consolidated balance sheets and in the consolidated statements of equity (or capital). Apart from the different equity treatment, the consolidated financial statements of the Parent Company and the Operating Partnership are nearly identical.

 

The Company believes that combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into a single report will:

 

·       facilitate a better understanding by the investors of the Parent Company and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;

·       remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both the Parent Company and the Operating Partnership; and

·       create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

 

To help investors understand the significant differences between the Parent Company and the Operating Partnership, this report presents Item 1 –Financial Statements as separate sections for each of the Parent Company and the Operating Partnership.

 

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In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

 

As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Parent Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company’s operations on a consolidated basis and how management operates the Company.

 

This report also includes separate Item 4 - Controls and Procedures sections, signature pages and Exhibit 31 and 32 certifications for each of  the Parent Company and the Operating Partnership in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Parent Company and the Chief Executive Officer and the Chief Financial Officer of the Operating Partnership have made the requisite certifications and that the Parent Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934 and 18 U.S.C. §1350.

 

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Forward-Looking Statements

 

This Quarterly Report on Form 10-Q, or “this Report”, together with other statements and information publicly disseminated by the Parent Company and the Operating Partnership, contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements concerning the Company’s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information.  In some cases, forward-looking statements can be identified by terminology such as “believes,” “expects,” “estimates,” “may,” “will,” “should,” “anticipates,” or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy.  Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated.  Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, future events and actual results, performance, transactions or achievements, financial and otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements.  As a result, you should not rely on or construe any forward-looking statements in this Report, or which management may make orally or in writing from time to time, as predictions of future events or as guarantees of future performance.  We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this Report or as of the dates otherwise indicated in the statements.  All of our forward-looking statements, including those in this Report, are qualified in their entirety by this statement.

 

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this Report.  Any forward-looking statements should be considered in light of the risks and uncertainties referred to in Item 1A. “Risk Factors” in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2012 and in our other filings with the Securities and Exchange Commission (“SEC”).  These risks include, but are not limited to, the following:

 

·         national and local economic, business, real estate and other market conditions;

 

·         the competitive environment in which we operate, including our ability to maintain or raise occupancy and rental rates;

 

·         the execution of our business plan;

 

·         the availability of external sources of capital;

 

·         financing risks, including the risk of over-leverage and the corresponding risk of default on our mortgage and other debt and potential inability to refinance existing indebtedness;

 

·         increases in interest rates and operating costs;

 

·         counterparty non-performance related to the use of derivative financial instruments;

 

·         our ability to maintain our Parent Company’s qualification as a real estate investment trust (“REIT”) for federal income tax purposes;

 

·         acquisition and development risks;

 

·         increases in taxes, fees, and assessments from state and local jurisdictions;

 

·         changes in real estate and zoning laws or regulations;

 

·         risks related to natural disasters;

 

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·         potential environmental and other liabilities;

 

·         other factors affecting the real estate industry generally or the self-storage industry in particular; and

 

·         other risks identified in the Parent Company’s and the Operating Partnership’s Annual Report on Form 10-K, as amended, and, from time to time, in other reports that we file with the SEC or in other documents that we publicly disseminate.

 

Given these uncertainties and the other risks identified elsewhere in this Report, we caution readers not to place undue reliance on forward-looking statements.  We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise except as may be required by securities laws.

 

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 

CUBESMART AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

 

 

 

March 31,

 

December 31,

 

 

2013

 

2012

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Storage facilities

 

  $

2,436,455

 

 

  $

2,443,022

 

Less: Accumulated depreciation

 

(367,336

)

 

(353,315

)

Storage facilities, net

 

2,069,119

 

 

2,089,707

 

Cash and cash equivalents

 

2,625

 

 

4,495

 

Restricted cash

 

5,484

 

 

6,070

 

Loan procurement costs, net of amortization

 

7,777

 

 

8,253

 

Other assets, net

 

27,928

 

 

41,794

 

Total assets

 

  $

2,112,933

 

 

  $

2,150,319

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

Unsecured senior notes

 

  $

250,000

 

 

  $

250,000

 

Revolving credit facility

 

30,000

 

 

45,000

 

Unsecured term loans

 

500,000

 

 

500,000

 

Mortgage loans and notes payable

 

226,460

 

 

228,759

 

Accounts payable, accrued expenses and other liabilities

 

52,405

 

 

60,708

 

Distributions payable

 

16,455

 

 

16,419

 

Deferred revenue

 

11,866

 

 

11,090

 

Security deposits

 

437

 

 

444

 

Total liabilities

 

1,087,623

 

 

1,112,420

 

 

 

 

 

 

 

 

Noncontrolling interests in the Operating Partnership

 

36,036

 

 

47,990

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

7.75% Series A Preferred shares $.01 par value, 3,220,000 shares authorized, 3,100,000 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively

 

31

 

 

31

 

Common shares $.01 par value, 200,000,000 shares authorized, 133,207,939 and 131,794,547 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively

 

1,332

 

 

1,318

 

Additional paid in capital

 

1,436,378

 

 

1,418,463

 

Accumulated other comprehensive loss

 

(18,839

)

 

(19,796

)

Accumulated deficit

 

(429,736

)

 

(410,225

)

Total CubeSmart shareholders’ equity

 

989,166

 

 

989,791

 

Noncontrolling interest in subsidiaries

 

108

 

 

118

 

Total equity

 

989,274

 

 

989,909

 

Total liabilities and equity

 

  $

2,112,933

 

 

  $

2,150,319

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

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CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

 

2012

 

REVENUES

 

 

 

 

 

 

Rental income

 

  $

69,618

 

 

  $

57,317

 

Other property related income

 

7,694

 

 

5,775

 

Property management fee income

 

1,145

 

 

1,020

 

Total revenues

 

78,457

 

 

64,112

 

OPERATING EXPENSES

 

 

 

 

 

 

Property operating expenses

 

30,821

 

 

25,943

 

Depreciation and amortization

 

29,832

 

 

25,083

 

General and administrative

 

7,613

 

 

6,444

 

Total operating expenses

 

68,266

 

 

57,470

 

OPERATING INCOME

 

10,191

 

 

6,642

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

Interest:

 

 

 

 

 

 

Interest expense on loans

 

(10,367

)

 

(9,321

)

Loan procurement amortization expense

 

(476

)

 

(771

)

Acquisition related costs

 

(115

)

 

(551

)

Equity in losses of real estate ventures

 

-    

 

 

(251

)

Other

 

(73

)

 

(71

)

Total other expense

 

(11,031

)

 

(10,965

)

 

 

 

 

 

 

 

LOSS FROM CONTINUING OPERATIONS

 

(840

)

 

(4,323

)

 

 

 

 

 

 

 

DISCONTINUED OPERATIONS

 

 

 

 

 

 

Income from discontinued operations

 

184

 

 

1,065

 

Gain on disposition of discontinued operations

 

228

 

 

-    

 

Total discontinued operations

 

412

 

 

1,065

 

NET LOSS

 

(428

)

 

(3,258

)

NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

 

 

 

 

 

Noncontrolling interests in the Operating Partnership

 

35

 

 

149

 

Noncontrolling interest in subsidiaries

 

1

 

 

(734

)

NET LOSS ATTRIBUTABLE TO THE COMPANY

 

(392

)

 

(3,843

)

Distribution to Preferred Shares

 

(1,502

)

 

(1,502

)

NET LOSS ATTRIBUTABLE TO THE COMPANY’s COMMON SHAREHOLDERS

 

  $

(1,894

)

 

  $

(5,345

)

 

 

 

 

 

 

 

Basic and diluted loss per share from continuing operations attributable to common shareholders

 

  $

(0.02

)

 

  $

(0.05

)

Basic and diluted earnings per share from discontinued operations attributable to common shareholders

 

  $

0.01

 

 

  $

0.01

 

Basic and diluted loss per share attributable to common shareholders

 

  $

(0.01

)

 

  $

(0.04

)

 

 

 

 

 

 

 

Weighted-average basic and diluted shares outstanding

 

132,951

 

 

122,266

 

 

 

 

 

 

 

 

AMOUNTS ATTRIBUTABLE TO THE COMPANY’S COMMON SHAREHOLDERS:

 

 

 

 

 

 

Loss from continuing operations

 

  $

(2,299

)

 

  $

(6,384

)

Total discontinued operations

 

405

 

 

1,039

 

Net loss

 

  $

(1,894

)

 

  $

(5,345

)

 

See accompanying notes to the unaudited consolidated financial statements.

 

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CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

NET LOSS

 

  $

(428

)

 

  $

(3,258

)

Other comprehensive income:

 

 

 

 

 

 

Unrealized loss on interest rate swap

 

(309

)

 

-    

 

Reclassification of realized losses on interest rate swap

 

1,531

 

 

688

 

Unrealized (loss) gain on foreign currency translation

 

(256

)

 

124

 

OTHER COMPREHENSIVE INCOME

 

966

 

 

812

 

COMPREHENSIVE INCOME (LOSS)

 

538

 

 

(2,446

)

Comprehensive loss attributable to noncontrolling interests in the Operating Partnership

 

17

 

 

120

 

Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries

 

10

 

 

(738

)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO THE COMPANY

 

  $

565

 

 

  $

(3,064

)

 

See accompanying notes to the unaudited consolidated financial statements.

 

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CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling

 

 

 

Common Shares

 

Preferred Shares

 

Additional
Paid in

 

Accumulated Other
Comprehensive

 

Accumulated

 

Total
Shareholders’

 

Noncontrolling
Interest in

 

Total

 

Interests in the
Operating

 

 

 

Number

 

Amount

 

Number

 

Amount

 

Capital

 

(Loss) Income

 

Deficit

 

Equity

 

Subsidiaries

 

Equity

 

Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

131,795

 

  $

1,318

 

3,100

 

  $

31

 

  $

1,418,463

 

  $

(19,796)

 

  $

(410,225)

 

  $

989,791

 

  $

118

 

  $

989,909

 

  $

47,990

 

Issuance of common shares

 

100

 

1

 

 

 

 

 

1,511

 

 

 

 

 

1,512

 

 

 

1,512

 

 

 

Issuance of restricted shares

 

211

 

2

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

Conversion from units to shares

 

1,013

 

10

 

 

 

 

 

14,591

 

 

 

 

 

14,601

 

 

 

14,601

 

(14,601

)

Exercise of stock options

 

89

 

1

 

 

 

 

 

784

 

 

 

 

 

785

 

 

 

785

 

 

 

Amortization of restricted shares

 

 

 

 

 

 

 

 

 

808

 

 

 

 

 

808

 

 

 

808

 

 

 

Share compensation expense

 

 

 

 

 

 

 

 

 

221

 

 

 

 

 

221

 

 

 

221

 

 

 

Adjustment for noncontrolling interest in the Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,915)

 

(2,915)

 

 

 

(2,915)

 

2,915

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

(392)

 

(392)

 

(1)

 

(393)

 

(35

)

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on interest rate swap

 

 

 

 

 

 

 

 

 

 

 

1,200

 

 

 

1,200

 

 

 

1,200

 

22

 

Unrealized loss on foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

(243)

 

 

 

(243)

 

(9)

 

(252)

 

(4

)

Preferred share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,502)

 

(1,502)

 

 

 

(1,502)

 

 

 

Common share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

(14,702)

 

(14,702)

 

 

 

(14,702)

 

(251

)

Balance at March 31, 2013

 

133,208

 

  $

1,332

 

3,100

 

  $

31

 

  $

1,436,378

 

  $

(18,839)

 

  $

(429,736)

 

  $

989,166

 

  $

108

 

  $

989,274

 

  $

36,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling

 

 

 

Common Shares

 

Preferred Shares

 

Additional
Paid in

 

Accumulated Other
Comprehensive

 

Accumulated

 

Total
Shareholders’

 

Noncontrolling
Interest in

 

Total

 

Interests in the
Operating

 

 

 

Number

 

Amount

 

Number

 

Amount

 

Capital

 

(Loss) Income

 

Deficit

 

Equity

 

Subsidiaries

 

Equity

 

Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

122,059

 

  $

1,221

 

3,100

 

  $

31

 

  $

1,309,505

 

  $

(12,831)

 

  $

(342,013)

 

  $

955,913

 

  $

39,409

 

  $

995,322

 

  $

49,732

 

Issuance of restricted shares

 

234

 

2

 

 

 

 

 

 

 

 

 

 

 

2

 

 

 

2

 

 

 

Exercise of stock options

 

98

 

1

 

 

 

 

 

767

 

 

 

 

 

768

 

 

 

768

 

 

 

Amortization of restricted shares

 

 

 

 

 

 

 

 

 

170

 

 

 

 

 

170

 

 

 

170

 

 

 

Share compensation expense

 

 

 

 

 

 

 

 

 

313

 

 

 

 

 

313

 

 

 

313

 

 

 

Adjustment for noncontrolling interest in the Operating Partnership

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,384)

 

(6,384)

 

 

 

(6,384)

 

6,384

 

Net (loss) income

 

 

 

 

 

 

 

 

 

 

 

 

 

(3,843)

 

(3,843)

 

734

 

(3,109)

 

(149

)

Other comprehensive gain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on interest rate swap

 

 

 

 

 

 

 

 

 

 

 

663

 

 

 

663

 

 

 

663

 

25

 

Unrealized gain on foreign currency translation

 

 

 

 

 

 

 

 

 

 

 

116

 

 

 

116

 

4

 

120

 

4

 

Preferred share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,502)

 

(1,502)

 

 

 

(1,502)

 

 

 

Common share distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

(9,834)

 

(9,834)

 

(1,149)

 

(10,983)

 

(374

)

Balance at March 31, 2012

 

122,391

 

  $

1,224

 

3,100

 

  $

31

 

  $

1,310,755

 

  $

(12,052)

 

  $

(363,576)

 

  $

936,382

 

  $

38,998

 

  $

975,380

 

  $

55,622

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

10



Table of Contents

 

CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

Net loss

 

  $

(428

)

 

  $

(3,258

)

Adjustments to reconcile net loss to cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

30,365

 

 

27,486

 

Gain on disposition of discontinued operations

 

(228

)

 

-    

 

Equity compensation expense

 

1,029

 

 

483

 

Accretion of fair market value adjustment of debt

 

(247

)

 

(61

)

Equity in losses of real estate venture

 

-    

 

 

251

 

Changes in other operating accounts:

 

 

 

 

 

 

Other assets

 

892

 

 

(1,235

)

Restricted cash

 

657

 

 

102

 

Accounts payable and accrued expenses

 

(6,400

)

 

(3,789

)

Other liabilities

 

821

 

 

774

 

Net cash provided by operating activities

 

  $

26,461

 

 

  $

20,753

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

Acquisitions of storage facilities

 

  $

(6,857

)

 

  $

(49,840

)

Additions and improvements to storage facilities

 

(4,229

)

 

(3,467

)

Development costs

 

(2,655

)

 

-    

 

Cash distributed from real estate venture

 

-    

 

 

366

 

Proceeds from sales of properties, net

 

10,993

 

 

144

 

Proceeds from notes receivable

 

5,192

 

 

-    

 

Change in restricted cash

 

(71

)

 

2

 

Net cash provided by (used in) investing activities

 

  $

2,373

 

 

  $

(52,795

)

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

Proceeds from:

 

 

 

 

 

 

Revolving credit facility

 

  $

60,600

 

 

  $

85,100

 

Principal payments on:

 

 

 

 

 

 

Revolving credit facility

 

(75,600

)

 

(35,100

)

Mortgage loans and notes payable

 

(1,584

)

 

(7,781

)

Proceeds from issuance of common shares

 

1,514

 

 

-    

 

Exercise of stock options

 

785

 

 

768

 

Distributions paid to common shareholders

 

(14,555

)

 

(9,808

)

Distributions paid to preferred shareholders

 

(1,502

)

 

(1,218

)

Distributions paid to noncontrolling interests in Operating Partnership

 

(362

)

 

(374

)

Distributions paid to noncontrolling interests in subsidiaries

 

-    

 

 

(1,149

)

Net cash (used in) provided by financing activities

 

  $

(30,704

)

 

  $

30,438

 

 

 

 

 

 

 

 

Change in cash and cash equivalents

 

(1,870

)

 

(1,604

)

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

4,495

 

 

9,069

 

Cash and cash equivalents at end of period

 

  $

2,625

 

 

  $

7,465

 

 

 

 

 

 

 

 

Supplemental Cash Flow and Noncash Information

 

 

 

 

 

 

Cash paid for interest, net of interest capitalized

 

  $

14,359

 

 

  $

8,587

 

Supplemental disclosure of noncash activities:

 

 

 

 

 

 

Derivative valuation adjustment

 

  $

1,222

 

 

  $

688

 

Foreign currency translation adjustment

 

  $

(256

)

 

  $

124

 

Mortgage loan assumption - acquisition of storage facility

 

  $

-    

 

 

  $

36,961

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

11



Table of Contents

 

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

 

March 31,

 

 

December 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Storage facilities

 

  $

2,436,455

 

 

  $

2,443,022

 

Less: Accumulated depreciation

 

(367,336

)

 

(353,315

)

Storage facilities, net

 

2,069,119

 

 

2,089,707

 

Cash and cash equivalents

 

2,625

 

 

4,495

 

Restricted cash

 

5,484

 

 

6,070

 

Loan procurement costs, net of amortization

 

7,777

 

 

8,253

 

Other assets, net

 

27,928

 

 

41,794

 

Total assets

 

  $

2,112,933

 

 

  $

2,150,319

 

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL

 

 

 

 

 

 

Unsecured senior notes

 

  $

250,000

 

 

  $

250,000

 

Revolving credit facility

 

30,000

 

 

45,000

 

Unsecured term loan

 

500,000

 

 

500,000

 

Mortgage loans and notes payable

 

226,460

 

 

228,759

 

Accounts payable, accrued expenses and other liabilities

 

52,405

 

 

60,708

 

Distributions payable

 

16,455

 

 

16,419

 

Deferred revenue

 

11,866

 

 

11,090

 

Security deposits

 

437

 

 

444

 

Total liabilities

 

1,087,623

 

 

1,112,420

 

 

 

 

 

 

 

 

Operating Partnership interest of third parties

 

36,036

 

 

47,990

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital

 

 

 

 

 

 

Operating Partner

 

1,008,005

 

 

1,009,587

 

Accumulated other comprehensive loss

 

(18,839

)

 

(19,796

)

Total CubeSmart L.P. capital

 

989,166

 

 

989,791

 

Noncontrolling interests in subsidiaries

 

108

 

 

118

 

Total capital

 

989,274

 

 

989,909

 

Total liabilities and capital

 

  $

2,112,933

 

 

  $

2,150,319

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

12



Table of Contents

 

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per common unit data)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

REVENUES

 

 

 

 

 

 

Rental income

 

  $

69,618

 

 

  $

57,317

 

Other property related income

 

7,694

 

 

5,775

 

Property management fee income

 

1,145

 

 

1,020

 

Total revenues

 

78,457

 

 

64,112

 

OPERATING EXPENSES

 

 

 

 

 

 

Property operating expenses

 

30,821

 

 

25,943

 

Depreciation and amortization

 

29,832

 

 

25,083

 

General and administrative

 

7,613

 

 

6,444

 

Total operating expenses

 

68,266

 

 

57,470

 

OPERATING INCOME

 

10,191

 

 

6,642

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

Interest:

 

 

 

 

 

 

Interest expense on loans

 

(10,367

)

 

(9,321

)

Loan procurement amortization expense

 

(476

)

 

(771

)

Acquisition related costs

 

(115

)

 

(551

)

Equity in losses of real estate ventures

 

-    

 

 

(251

)

Other

 

(73

)

 

(71

)

Total other expense

 

(11,031

)

 

(10,965

)

 

 

 

 

 

 

 

LOSS FROM CONTINUING OPERATIONS

 

(840

)

 

(4,323

)

 

 

 

 

 

 

 

DISCONTINUED OPERATIONS

 

 

 

 

 

 

Income from discontinued operations

 

184

 

 

1,065

 

Gain of disposition of discontinued operations

 

228

 

 

-    

 

Total discontinued operations

 

412

 

 

1,065

 

NET LOSS

 

(428

)

 

(3,258

)

NET LOSS (INCOME) ATTRIBUTABLE TO

 

 

 

 

 

 

NONCONTROLLING INTERESTS

 

 

 

 

 

 

Noncontrolling interest in subsidiaries

 

1

 

 

(734

)

NET LOSS ATTRIBUTABLE TO CUBESMART L.P.

 

(427

)

 

(3,992

)

Operating Partnership interest of third parties

 

35

 

 

149

 

NET LOSS ATTRIBUTABLE TO OPERATING PARTNER

 

(392

)

 

(3,843

)

Distribution to Preferred Units

 

(1,502

)

 

(1,502

)

NET LOSS ATTRIBUTABLE TO COMMON UNITHOLDERS

 

  $

(1,894

)

 

  $

(5,345

)

 

 

 

 

 

 

 

Basic and diluted loss per unit from continuing operations attributable to common unitholders

 

  $

(0.02

)

 

  $

(0.05

)

Basic and diluted earnings per unit from discontinued operations attributable to common unitholders

 

  $

0.01

 

 

  $

0.01

 

Basic and diluted loss per unit attributable to common unitholders

 

  $

(0.01

)

 

  $

(0.04

)

 

 

 

 

 

 

 

Weighted-average basic and diluted shares outstanding

 

132,951

 

 

122,266

 

 

 

 

 

 

 

 

AMOUNTS ATTRIBUTABLE TO COMMON UNITHOLDERS

 

 

 

 

 

 

Loss from continuing operations

 

  $

(2,299

)

 

  $

(6,384

)

Total discontinued operations

 

405

 

 

1,039

 

Net loss

 

  $

(1,894

)

 

  $

(5,345

)

 

See accompanying notes to the unaudited consolidated financial statements.

 

13



Table of Contents

 

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

 

 

 

 

Three Months Ended March 31,

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

NET LOSS

 

  $

(428

)

 

  $

(3,258

)

Other comprehensive income:

 

 

 

 

 

 

Unrealized loss on interest rate swap

 

(309

)

 

-

 

Reclassification of realized losses on interest rate swap

 

1,531

 

 

688

 

Unrealized (loss) gain on foreign currency translation

 

(256

)

 

124

 

OTHER COMPREHENSIVE INCOME

 

966

 

 

812

 

COMPREHENSIVE INCOME (LOSS)

 

538

 

 

(2,446

)

Comprehensive loss attributable to Operating Partnership interest of third parties

 

17

 

 

120

 

Comprehensive loss (income) attributable to noncontrolling interests in subsidiaries

 

10

 

 

(738

)

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO OPERATING PARTNER

 

  $

565

 

 

  $

(3,064

)

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

14



Table of Contents

 

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CAPITAL

(in thousands)

(unaudited)

 

 

 

Number of OP Units
Outstanding

 

Operating

 

Accumulated Other
Comprehensive

 

Total
CubeSmart
L.P.

 

Noncontrolling
Interest in

 

Total

 

Operating
Partnership
Interest

 

 

 

Common

 

Preferred

 

Partner

 

(Loss) Income

 

Capital

 

Subsidiaries

 

Capital

 

of Third Parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

131,795

 

3,100

 

$

1,009,587

 

$

(19,796)

 

$

989,791

 

$

118

 

$

989,909

 

$

47,990

 

Issuance of common OP units

 

100

 

 

 

1,512

 

 

 

1,512

 

 

 

1,512

 

 

 

Issuance of restricted OP units

 

211

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

Conversion from units to shares

 

1,013

 

 

 

14,601

 

 

 

14,601

 

 

 

14,601

 

(14,601)

 

Exercise of OP unit options

 

89

 

 

 

785

 

 

 

785

 

 

 

785

 

 

 

Amortization of restricted OP units

 

 

 

 

 

808

 

 

 

808

 

 

 

808

 

 

 

OP unit compensation expense

 

 

 

 

 

221

 

 

 

221

 

 

 

221

 

 

 

Adjustment for Operating Partnership interest of third parties

 

 

 

 

 

(2,915)

 

 

 

(2,915)

 

 

 

(2,915)

 

2,915

 

Net loss

 

 

 

 

 

(392)

 

 

 

(392)

 

(1)

 

(393)

 

(35)

 

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on interest rate swap

 

 

 

 

 

 

 

1,200

 

1,200

 

 

 

1,200

 

22

 

Unrealized loss on foreign currency translation

 

 

 

 

 

 

 

(243)

 

(243)

 

(9)

 

(252)

 

(4)

 

Preferred OP unit distributions

 

 

 

 

 

(1,502)

 

 

 

(1,502)

 

 

 

(1,502)

 

 

 

Common OP unit distributions

 

 

 

 

 

(14,702)

 

 

 

(14,702)

 

 

 

(14,702)

 

(251)

 

Balance at March 31, 2013

 

133,208

 

3,100

 

$

1,008,005

 

$

(18,839)

 

$

989,166

 

$

108

 

$

989,274

 

$

36,036

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of OP Units
Outstanding

 

Operating

 

Accumulated Other
Comprehensive

 

Total
CubeSmart
L.P.

 

Noncontrolling
Interest in

 

Total

 

Operating
Partnership
Interest

 

 

 

Common

 

Preferred

 

Partner

 

(Loss) Income

 

Capital

 

Subsidiaries

 

Capital

 

of Third Parties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

122,059

 

3,100

 

$

968,744

 

$

(12,831)

 

$

955,913

 

$

39,409

 

$

995,322

 

$

49,732

 

Issuance of restricted OP units

 

234

 

 

 

2

 

 

 

2

 

 

 

2

 

 

 

Exercise of OP unit options

 

98

 

 

 

768

 

 

 

768

 

 

 

768

 

 

 

Amortization of restricted OP units

 

 

 

 

 

170

 

 

 

170

 

 

 

170

 

 

 

OP unit compensation expense

 

 

 

 

 

313

 

 

 

313

 

 

 

313

 

 

 

Adjustment for Operating Partnership interest of third parties

 

 

 

 

 

(6,384)

 

 

 

(6,384)

 

 

 

(6,384)

 

6,384

 

Net (loss) income

 

 

 

 

 

(3,843)

 

 

 

(3,843)

 

734

 

(3,109)

 

(149)

 

Other comprehensive gain:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gain on interest rate swap

 

 

 

 

 

 

 

663

 

663

 

 

 

663

 

25

 

Unrealized gain on foreign currency translation

 

 

 

 

 

 

 

116

 

116

 

4

 

120

 

4

 

Preferred OP unit distributions

 

 

 

 

 

(1,502)

 

 

 

(1,502)

 

 

 

(1,502)

 

 

 

Common OP unit distributions

 

 

 

 

 

(9,834)

 

 

 

(9,834)

 

(1,149)

 

(10,983)

 

(374)

 

Balance at March 31, 2012

 

122,391

 

3,100

 

$

948,434

 

$

(12,052)

 

$

936,382

 

$

38,998

 

$

975,380

 

$

55,622

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

15


 


Table of Contents

 

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Three Months Ended March 31,

 

 

 

 

2013

 

 

2012

 

 

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

Net loss

 

$

(428

)

 

$

(3,258

)

 

Adjustments to reconcile net loss to cash
provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

30,365

 

 

27,486

 

 

Gain on disposition of discontinued operations

 

(228

)

 

-   

 

 

Equity compensation expense

 

1,029

 

 

483

 

 

Accretion of fair market value adjustment of debt

 

(247

)

 

(61

)

 

Equity in losses of real estate venture

 

-   

 

 

251

 

 

Changes in other operating accounts:

 

 

 

 

 

 

 

Other assets

 

892

 

 

(1,235

)

 

Restricted cash

 

657

 

 

102

 

 

Accounts payable and accrued expenses

 

(6,400

)

 

(3,789

)

 

Other liabilities

 

821

 

 

774

 

 

Net cash provided by operating activities

 

$

26,461

 

 

$

20,753

 

 

 

 

 

 

 

 

 

 

Investing Activities

 

 

 

 

 

 

 

Acquisitions of storage facilities

 

$

(6,857

)

 

$

(49,840

)

 

Additions and improvements to storage facilities

 

(4,229

)

 

(3,467

)

 

Development costs

 

(2,655

)

 

-   

 

 

Cash distributed from real estate venture

 

-   

 

 

366

 

 

Proceeds from sales of properties, net

 

10,993

 

 

144

 

 

Proceeds from notes receivable

 

5,192

 

 

-   

 

 

Change in restricted cash

 

(71

)

 

2

 

 

Net cash provided by (used in) investing activities

 

$

2,373

 

 

$

(52,795

)

 

 

 

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 

 

Proceeds from:

 

 

 

 

 

 

 

Revolving credit facility

 

$

60,600

 

 

$

85,100

 

 

Principal payments on:

 

 

 

 

 

 

 

Revolving credit facility

 

(75,600

)

 

(35,100

)

 

Mortgage loans and notes payable

 

(1,584

)

 

(7,781

)

 

Proceeds from issuance of common OP units

 

1,514

 

 

-   

 

 

Exercise of OP unit options

 

785

 

 

768

 

 

Distributions paid to common unitholders

 

(14,917

)

 

(10,182

)

 

Distributions paid to preferred unitholders

 

(1,502

)

 

(1,218

)

 

Distributions paid to noncontrolling interests in subsidiaries

 

-   

 

 

(1,149

)

 

Net cash (used in) provided by financing activities

 

$

(30,704

)

 

$

30,438

 

 

 

 

 

 

 

 

 

 

Change in cash and cash equivalents

 

(1,870

)

 

(1,604

)

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of period

 

4,495

 

 

9,069

 

 

Cash and cash equivalents at end of period

 

$

2,625

 

 

$

7,465

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow and Noncash Information

 

 

 

 

 

 

 

Cash paid for interest, net of interest capitalized

 

$

14,359

 

 

$

8,587

 

 

Supplemental disclosure of noncash activities:

 

 

 

 

 

 

 

Derivative valuation adjustment

 

$

1,222

 

 

$

688

 

 

Foreign currency translation adjustment

 

$

(256

)

 

$

124

 

 

Mortgage loan assumption - acquisition of storage facility

 

$

-   

 

 

$

36,961

 

 

 

See accompanying notes to the unaudited consolidated financial statements.

 

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CUBESMART AND CUBESMART, L.P.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

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.   The Company’s self-storage facilities (collectively, the “Properties”) are located in 21 states throughout the United States and the District of Columbia and are presented under one reportable segment: the Company owns, operates, develops, manages and acquires self-storage facilities.

 

As of March 31, 2013, the Parent Company owned approximately 98.3% 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 us 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 for cash equal to the fair value of an equivalent number of common shares of the Parent Company.  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.  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.”

 

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 Company’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, 2012, 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, 2012.  The results of operations for the three months ended March 31, 2013 and 2012 are not necessarily indicative of the results of operations to be expected for any future period or the full year.

 

Recent Accounting Pronouncements

 

In February 2013, the Financial Accounting Standards Board (“FASB”) issued an amendment to the accounting standard for the reporting of amounts reclassified out of accumulated other comprehensive income (“AOCI”).  The amendment requires entities to disclose for items reclassified out of AOCI and into net income in their entirety, the effect of the reclassification on each affected income statement line item and for AOCI items that are not reclassified in their entirety into net income, a cross reference to other required GAAP disclosures.  This amendment became effective for fiscal years and interim periods beginning after December 15, 2012.

 

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The adoption of this guidance in 2013 did not have a material impact on the Company’s consolidated financial position or results of operations as its impact was limited to disclosure requirements (see note 8).

 

 

3.  STORAGE FACILITIES

 

The book value of the Company’s real estate assets is summarized as follows:

 

 

 

 

March 31,

 

December 31,

 

 

 

2013

 

2012

 

 

 

(in thousands)

 

Land

 

$

458,446

 

$

462,626

 

Buildings and improvements

 

1,826,117

 

1,828,388

 

Equipment

 

142,506

 

143,836

 

Construction in progress

 

9,386

 

8,172

 

Storage facilities

 

2,436,455

 

2,443,022

 

Less: Accumulated depreciation

 

(367,336)

 

(353,315)

 

Storage facilities, net

 

$

2,069,119

 

$

2,089,707

 

 

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The following table summarizes the Company’s acquisition and disposition activity from the period beginning on January 1, 2012 through March 31, 2013:

 

 

Facility/Portfolio

 

Location

 

Transaction Date

 

Number of Facilities

 

Purchase / Sales
Price (in thousands)

 

 

 

 

 

 

 

 

 

 

 

2013 Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gilbert Asset

 

Gilbert, AZ

 

March 2013

 

1

 

$

6,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013 Dispositions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Texas/Indiana Assets

 

Multiple locations in TX and IN

 

March 2013

 

5

 

$

11,400

 

 

 

 

 

 

 

 

 

 

 

2012 Acquisitions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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