INVESTMENTS IN UNCONSOLIDATED REAL ESTATE VENTURES

Net Investments in unconsolidated real estate ventures and Cash distributions in unconsolidated real estate ventures consist of the following:



	Number of stores	Equity ownership %	Excess profit participation %	March 31,			December 31,
	Number of stores	Equity ownership %	Excess profit participation %	2018			2017
VRS Self Storage, LLC	16	45%	54%	$	18,930		$	19,467
PRISA Self Storage LLC	85	4%	4%	9,512			9,638
Extra Space West Two LLC	5	5%	40%	3,857			3,939
Extra Space West One LLC	7	5%	40%	(936		)	(900		)
WCOT Self Storage LLC	15	5%	20%	(992		)	(357		)
Extra Space Northern Properties Six LLC	10	10%	35%	(1,388		)	(1,279		)
Storage Portfolio II JV LLC	36	10%	30%	(3,278		)	(3,140		)
Storage Portfolio I LLC	24	34%	49%	(36,528		)	11,495
Other minority owned stores	16	10-50%	19-50%	31,418			31,228
Net investments in and Cash distributions in unconsolidated real estate ventures	214			$	20,595		$	70,091

Investments in unconsolidated real estate ventures represent the Company's noncontrolling interests in properties. The Company accounts for these investments using the equity method of accounting. The Company initially records these investments at cost and subsequently adjusts for net equity in income or loss, which it allocates in accordance with the provisions of the applicable partnership or joint venture agreement, cash contributions and distributions.

In these joint ventures, the Company and the joint venture partner generally receive a preferred return on their invested capital. To the extent that cash/profits in excess of these preferred returns are generated through operations or capital transactions, the Company would receive a higher percentage of the excess cash/profits than its equity interest.

The Company separately reports investments with net equity less than zero in Cash distributions in unconsolidated real estate ventures in the condensed consolidated balance sheets. The net equity of certain joint ventures is less than zero because distributions have exceeded the Company's investment in and share of income from these joint ventures. This is generally the result of financing distributions or operating distributions that are usually greater than net income, as net income includes non‑cash charges for depreciation and amortization while distributions do not.

On February 2, 2018, the Company and Teachers REA II LLC ("TIAA") entered into the "Third Amendment to Amended and Restated Limited Liability Company Agreement of Storage Portfolio I LLC" (the "Amendments"). The Amendments were deemed effective as of January 1, 2018. Under the Amendments, the Company's capital percentage in Storage Portfolio I LLC ("SP I") increased from 25.0% to 34.0%, and its excess profit participation percentage increased from 40.0% to 49.0%, among other changes. Additionally, SPI refinanced its mortgage loan and the Company received a financing distribution of $47,944, which was recorded as a reduction in the Company's investment in SP I. The Company continues to account for its investment in SP I under the equity method of accounting.