INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables)

3 Months Ended

Mar. 31, 2024

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	March 31,	December 31,	March 31,		December 31,
Unconsolidated Real Estate Ventures	Interest	2024	2023	2024		2023
Fontana Self Storage, LLC ("Fontana") (1)	50%	1	1	$	13,461	$	13,575
Rancho Cucamonga Self Storage, LLC ("RCSS") (1)	50%	1	1		20,524		20,679
191 V CUBE LLC ("HVP V")	20%	6	6		12,628		12,759
191 IV CUBE LLC ("HVP IV")	20%	28	28		16,385		17,085
CUBE HHF Northeast Venture LLC ("HHFNE")	10%	13	13		909		951
CUBE HHF Limited Partnership ("HHF")	50%	28	28		32,320		33,239
		77	77	$	96,227	$	98,288

(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, 2024, the remaining unamortized difference was $12.7 million for Fontana and $18.9 million for RCSS.

Summary of the financial position of the ventures

	March 31,		December 31,
	2024		2023
Assets	(in thousands)
Storage properties, net	$	702,149	$	715,142
Other assets		18,224		10,382
Total assets	$	720,373	$	725,524
Liabilities and equity
Debt	$	471,020	$	470,573
Other liabilities		19,550		18,557
Equity
CubeSmart		64,601		66,446
Joint venture partners		165,202		169,948
Total liabilities and equity	$	720,373	$	725,524

Summary of results of operations of the ventures

	Three Months Ended March 31,
	2024		2023
	(in thousands)
Total revenues	$	24,586	$	24,064
Operating expenses		(10,375)		(10,519)
Other expenses		(106)		(69)
Interest expense, net		(4,658)		(4,084)
Depreciation and amortization		(7,532)		(7,772)
Net income	$	1,915	$	1,620
Company’s share of net income	$	845	$	2,551