XML 45 R32.htm IDEA: XBRL DOCUMENT v3.20.2
NONCONTROLLING INTERESTS (Tables)
9 Months Ended
Sep. 30, 2020
NONCONTROLLING INTERESTS  
Schedule of noncontrolling interests in subsidiaries

Date Opened /

CubeSmart

Number

Estimated

Ownership

September 30, 2020

Consolidated Joint Ventures

    

of Stores

    

Location

    

Opening

Interest

Total Assets

Total Liabilities

    

(in thousands)

CS 750 W Merrick Rd, LLC ("Merrick") (1)

1

Valley Stream, NY

Q1 2022 (est.)

51%

$

9,228

$

2,501

CS Valley Forge Village Storage, LLC ("VFV") (2)

1

King of Prussia, PA

Q2 2021 (est.)

70%

13,479

5,155

Shirlington Rd II, LLC ("SH2") (3)

1

Arlington, VA

Q1 2021 (est.)

90%

16,167

1,533

CS 2087 Hempstead Tpk, LLC ("Hempstead") (1)

1

East Meadow, NY

Q1 2021 (est.)

51%

17,508

6,745

CS SDP Newtonville, LLC ("Newton") (2)

1

Newton, MA

Q4 2020 (est.)

90%

15,820

9,300

Shirlington Rd, LLC ("SH1") (3)

1

Arlington, VA

 

Q2 2015

90%

14,411

166

6

$

86,613

$

25,400

(1)The noncontrolling members of Merrick and Hempstead have the option to put their ownership interest in the ventures to the Company for $17.1 million and $6.6 million (the “Put Option”), respectively, within the two-year period after construction of each store is substantially complete (the “Put Option Period”). In the event the Put Option is not exercised, the Company has a one-year option to call the ownership interest of the noncontrolling members of Merrick and Hempstead for $17.1 million and $6.6 million, respectively, beginning twelve months after the end of the Put Option Period. The Company, at its sole discretion, may pay cash and/or issue OP Units, in exchange for the noncontrolling member’s interest in Merrick and Hempstead. The Company is accreting the respective liabilities during the development periods and, as of September 30, 2020, has accrued $2.4 million and $5.1 million, related to Merrick and Hempstead, respectively, which are included in Accounts payable, accrued expenses and other liabilities on the Company’s consolidated balance sheets.

(2)The Company has related party loan commitments to VFV and Newton to fund a portion of the construction costs. As of September 30, 2020, the Company has funded $1.8 million of the total $12.4 million loan commitment to VFV and $7.5 million of the total $12.1 million loan commitment to Newton, which are included in the total liability amounts within the table above. These loans and the related interest were eliminated for consolidation purposes.

(3)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.