INVESTMENT IN UNCONSOLIDATED REAL ESTATE VENTURE (Tables)

3 Months Ended

Mar. 31, 2023

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	2023	2022	2023		2022
Fontana Self Storage, LLC ("Fontana") (1)	50%	1	1	$	13,745	$	13,789
Rancho Cucamonga Self Storage, LLC ("RCSS") (1)	50%	1	1		20,972		20,994
191 V CUBE LLC ("HVP V")	20%	6	6		13,916		14,318
191 IV CUBE LLC ("HVP IV")	20%	28	28		18,998		19,853
CUBE HHF Northeast Venture LLC ("HHFNE")	10%	13	13		1,070		1,101
CUBE HHF Limited Partnership ("HHF")	50%	28	28		34,986		35,938
		77	77	$	103,687	$	105,993

(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. As of March 31, 2023, this difference was $13.0 million and $19.5 million for Fontana and RCSS, respectively. These differences are being amortized over the expected useful life of the self-storage properties owned by the ventures.

Summary of the financial position of the ventures

	March 31,		December 31,
	2023		2022
Assets	(in thousands)
Storage properties, net	$	734,604	$	741,563
Other assets		10,033		11,708
Total assets	$	744,637	$	753,271
Liabilities and equity
Debt	$	469,230	$	468,783
Other liabilities		19,260		16,626
Equity
CubeSmart		71,199		73,289
Joint venture partners		184,948		194,573
Total liabilities and equity	$	744,637	$	753,271

Summary of results of operations of the ventures

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Total revenues	$	24,064	$	24,965
Operating expenses		(10,519)		(10,743)
Other expenses		(69)		(114)
Interest expense, net		(4,084)		(3,852)
Depreciation and amortization		(7,772)		(10,388)
Net income (loss)	$	1,620	$	(132)
Company’s share of net income (loss)	$	2,551	$	294