INVESTMENT ACTIVITY (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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| INVESTMENT ACTIVITY |
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| Schedule of capitalized costs for investments in storage properties |
| | | | | | | | | | | | | | | | CubeSmart | | | | | | Number of | | | | Ownership | | Total | Store Location | | Stores | | Date Opened | | Interest | | Construction Costs | | | | | | | | | (in thousands) | | | | | | | | | | | Valley Stream, NY (1) | | 1 | | Q3 2022 | | 100% | | $ | 37,200 | Vienna, VA (2) | | 1 | | Q2 2022 | | 80% | | | 21,800 | Newton, MA (3) | | 1 | | Q4 2021 | | 100% | | | 20,800 | East Meadow, NY (1) | | 1 | | Q2 2021 | | 100% | | | 25,900 | King of Prussia, PA | | 1 | | Q2 2021 | | 70% | | | 22,800 | Arlington, VA (2) | | 1 | | Q1 2021 | | 90% | | | 26,400 | | | 6 | | | | | | $ | 154,900 |
| (1) | These stores were previously owned by two separate consolidated joint ventures, of which the Company held a 51% ownership interest in each. On June 29, 2021, the noncontrolling member in the venture that owned the East Meadow, NY store put its 49% interest in the venture to the Company for $6.6 million. On January 18, 2023, the noncontrolling member in the venture that owned the Valley Stream, NY store put its 49% interest in the venture to the Company for $15.3 million. The cash payments related to each of these transactions are included in Development costs in the consolidated statements of cash flows. |
| (2) | Each of these stores are located adjacent to an existing consolidated joint venture store. Given this proximity, each of these stores has been combined with the adjacent existing store in our store count upon opening, as well as for operational and reporting purposes. |
| (3) | During the fourth quarter of 2021, the Company, through a joint venture in which it owned a 90% interest that was previously consolidated, completed the construction of this store and it was opened for operation. On December 14, 2021, the Company acquired the 10% interest of the noncontrolling member in the venture that owned the store for $3.4 million. Prior to this transaction, the noncontrolling member’s interest in this venture was reported in Noncontrolling interests in subsidiaries on the Company’s consolidated balance sheets. Since the Company retained its controlling interest in the venture and the store is now wholly owned, 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 difference between the purchase price paid by the Company and the carrying amount of the noncontrolling interest of $2.7 million was recorded as an adjustment to equity attributable to the Company, with no gain or loss recorded. The $13.2 million related party loan extended by the Company to the venture that owned the store was repaid in conjunction with the Company’s acquisition of the noncontrolling member’s ownership interest. |
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| Schedule of relevant components contemplated in the acquisition of LAACO |
| | | | Amount | | (in thousands) | Costs contemplated: | | | Capitalized costs: | | | LAACO partnership units (1) | $ | 1,648,426 | Long-term debt assumed and repaid at closing | | 40,880 | Payments to LAACO management (capitalized) (2) | | 16,807 | Other transaction costs (3) | | 13,407 | Total capitalized costs | $ | 1,719,520 | Payments and anticipated payments to LAACO management (expensed) (2) | | 25,144 | Total costs contemplated | $ | 1,744,664 | | | | Estimated fair value of Club Operations (included in total costs contemplated above) | $ | 46,800 |
| (1) | Represents the acquisition of all 167,557 outstanding partnership units for $9,838 per unit. |
| (2) | Upon the acquisition of LAACO, the Company assumed severance obligations payable to certain employees pursuant to pre-existing agreements. Based on the specific details of the arrangements, $16.8 million in costs were capitalized to the basis of the acquired properties while $25.1 million were considered post-combination compensation expenses. Of this $25.1 million, $10.3 million and $14.8 million were included in the component of other (expense) income designated as Other for the years ended December 31, 2022 and 2021, respectively. There were no severance costs recognized during the year ended December 31, 2023. |
| (3) | Includes consulting fees, legal fees, and other costs. |
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| Schedule of accounting for the LAACO acquisition |
| | | | Amount | | (in thousands) | Storage properties | $ | 1,517,243 | Cash and cash equivalents | | 18,291 | Investment in real estate ventures, at equity | | 35,737 | Assets held for sale | | 50,435 | Other assets, net | | 143,599 | Accounts payable, accrued expenses and other liabilities | | (38,350) | Deferred revenue | | (3,764) | Security deposits | | (36) | Liabilities held for sale | | (3,635) | Total | $ | 1,719,520 |
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