NONCONTROLLING INTERESTS (Tables)

6 Months Ended

Jun. 30, 2020

NONCONTROLLING INTERESTS

Schedule of noncontrolling interests in subsidiaries

			Date Opened /	CubeSmart
	Number		Estimated	Ownership	June 30, 2020
Consolidated Joint Ventures	of Stores	Location	Opening	Interest	Total Assets		Total Liabilities
					(in thousands)
CS Valley Forge Village Storage, LLC ("VFV") (1)	1	King of Prussia, PA	Q2 2021 (est.)	70%	$	10,000	$	1,916
Shirlington Rd II, LLC ("SH2") (2)	1	Arlington, VA	Q1 2021 (est.)	90%		13,377		1,440
CS 2087 Hempstead Tpk, LLC ("Hempstead") (3)	1	East Meadow, NY	Q1 2021 (est.)	51%		14,714		4,980
CS SDP Newtonville, LLC ("Newton") (1)	1	Newton, MA	Q4 2020 (est.)	90%		13,709		7,188
CS 1158 McDonald Ave, LLC ("McDonald Ave") (3)	1	Brooklyn, NY	Q2 2020	51%		42,715		11,004
Shirlington Rd, LLC ("SH1") (2)	1	Arlington, VA	Q2 2015	90%		14,640		167
	6				$	109,155	$	26,695

(1) The Company has a related party loan commitment to VFV and Newton to fund a portion of the construction costs. As of June 30, 2020, the Company has funded $6.0 million of the total $12.1 million loan commitment to Newton, which is included in the total liability amount within the table above. This loan and the related interest were eliminated for consolidation purposes. As of June 30, 2020, the Company had not funded any of its $12.4 million loan commitment to VFV.

(2) On March 7, 2019, the Company acquired the noncontrolling member’s ownership interest in SH1, inclusive of its promoted interest in the venture, for $10.0 million. Prior to this transaction, the noncontrolling member’s interest was reported in Noncontrolling interests in subsidiaries on the consolidated balance sheets. Since the Company retained its controlling interest in the joint venture, this transaction was accounted for as an equity transaction. The carrying amount of the noncontrolling interest was reduced to zero to reflect the purchase, and the $9.7 million difference between the purchase price paid by the Company and the carrying amount of the noncontrolling interest was recorded as an adjustment to equity attributable to the Company. In conjunction with the Company’s acquisition of the noncontrolling interest in SH1, the $12.2 million related party loan extended by the Company to the venture during the construction period was repaid in full. Subsequently, the noncontrolling member re-acquired a 10% interest in SH1 and a 10% interest in SH2 for a combined $4.8 million, which is included in Noncontrolling interests in subsidiaries on the consolidated balance sheets.

(3) The noncontrolling members of Hempstead and McDonald Ave have the option to put their ownership interest in the ventures to the Company for $6.6 million and $10.0 million, respectively, within the one-year period after construction of each store is substantially complete. Additionally, the Company has a one-year option to call the ownership interest of the noncontrolling members of Hempstead and McDonald Ave for $6.6 million and $10.0 million, respectively, beginning on the second anniversary of the respective store’s construction being substantially complete. The Company, at its sole discretion, may pay cash and/or issue OP Units in exchange for the noncontrolling member’s interest in Hempstead and McDonald. The Company is accreting the respective liabilities during the development periods and, as of June 30, 2020, has accrued $4.4 million and $10.0 million, related to Hempstead and McDonald Ave, respectively, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets.