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sts

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark one)

Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended March 31, 2024.

or

Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                                       to                                       .

Commission file number:
001-32324 (CubeSmart)
000-54462 (CubeSmart, L.P.)

CUBESMART

CUBESMART, L.P.

(Exact Name of Registrant as Specified in its Charter)

Maryland (CubeSmart)
Delaware (CubeSmart, L.P.)

20-1024732
34-1837021

(State or Other Jurisdiction of Incorporation or Organization)

(I.R.S. Employer Identification No.)

5 Old Lancaster Rd. Malvern, Pennsylvania

19355

(Address of Principal Executive Offices)

(Zip Code)

(610) 535-5000

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Shares, $0.01 par value per share, of CubeSmart

CUBE

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

CubeSmart

Yes No

CubeSmart, L.P.

Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

CubeSmart

Yes No

CubeSmart, L.P.

Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

CubeSmart:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

CubeSmart, L.P.:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

CubeSmart

CubeSmart, L.P.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

CubeSmart

Yes No

CubeSmart, L.P.

Yes No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Class

Outstanding at April 24, 2024

Common shares, $0.01 par value per share, of CubeSmart

224,972,363

EXPLANATORY NOTE

This report combines the quarterly reports on Form 10-Q for the period ended March 31, 2024 of CubeSmart (the “Parent Company” or “CubeSmart”) and CubeSmart, L.P. (the “Operating Partnership”). The Parent Company is a Maryland real estate investment trust (“REIT”) that owns its assets and conducts its operations through the Operating Partnership, a Delaware limited partnership, and subsidiaries of the Operating Partnership. The Parent Company, the Operating Partnership and their consolidated subsidiaries are collectively referred to in this report as the “Company”. In addition, terms such as “we”, “us” or “our” used in this report may refer to the Company, the Parent Company or the Operating Partnership.

The Parent Company is the sole general partner of the Operating Partnership and, as of March 31, 2024, owned a 99.4% interest in the Operating Partnership. The remaining 0.6% interest consists of common units of limited partnership interest issued by the Operating Partnership to third parties in exchange for contributions of properties to the Operating Partnership. As the sole general partner of the Operating Partnership, the Parent Company has full and complete authority over the Operating Partnership’s day-to-day operations and management.

Management operates the Parent Company and the Operating Partnership as one enterprise. The management teams of the Parent Company and the Operating Partnership are identical, and their constituents are officers of both the Parent Company and of the Operating Partnership.

There are a few differences between the Parent Company and the Operating Partnership, which are reflected in the note disclosures in this report. The Company believes it is important to understand the differences between the Parent Company and the Operating Partnership in the context of how these entities operate as a consolidated enterprise. The Parent Company is a REIT, whose only material asset is its ownership of the partnership interests of the Operating Partnership. As a result, the Parent Company does not conduct business itself, other than acting as the sole general partner of the Operating Partnership, issuing public equity from time to time and guaranteeing the debt obligations of the Operating Partnership. The Operating Partnership holds substantially all of the assets of the Company and, directly or indirectly, holds the ownership interests in the Company’s real estate ventures. The Operating Partnership conducts the operations of the Company’s business and is structured as a partnership with no publicly traded equity. Except for net proceeds from equity issuances by the Parent Company, which are contributed to the Operating Partnership in exchange for partnership units, the Operating Partnership generates the capital required by the Company’s business through the Operating Partnership’s operations, by the Operating Partnership’s direct or indirect incurrence of indebtedness or through the issuance of partnership units of the Operating Partnership or equity interests in subsidiaries of the Operating Partnership.

The substantive difference between the Parent Company’s and the Operating Partnership’s filings is the fact that the Parent Company is a REIT with public equity, while the Operating Partnership is a partnership with no publicly traded equity. In the financial statements, this difference is primarily reflected in the equity (or capital for the Operating Partnership) section of the consolidated balance sheets and in the consolidated statements of equity (or capital). Apart from the different equity treatment, the unaudited consolidated financial statements of the Parent Company and the Operating Partnership are nearly identical.

The Company believes that combining the quarterly reports on Form 10-Q of the Parent Company and the Operating Partnership into a single report will:

facilitate a better understanding by the investors of the Parent Company and the Operating Partnership by enabling them to view the business as a whole in the same manner as management views and operates the business;
remove duplicative disclosures and provide a more straightforward presentation in light of the fact that a substantial portion of the disclosure applies to both the Parent Company and the Operating Partnership; and
create time and cost efficiencies through the preparation of one combined report instead of two separate reports.

2

In order to highlight the differences between the Parent Company and the Operating Partnership, the separate sections in this report for the Parent Company and the Operating Partnership specifically refer to the Parent Company and the Operating Partnership. In the sections that combine disclosures of the Parent Company and the Operating Partnership, this report refers to such disclosures as those of the Company. Although the Operating Partnership is generally the entity that directly or indirectly enters into contracts and real estate ventures and holds assets and debt, reference to the Company is appropriate because the business is one enterprise and the Parent Company operates the business through the Operating Partnership.

As general partner with control of the Operating Partnership, the Parent Company consolidates the Operating Partnership for financial reporting purposes, and the Parent Company does not have significant assets other than its investment in the Operating Partnership. Therefore, the assets and liabilities of the Parent Company and the Operating Partnership are the same on their respective financial statements. The separate discussions of the Parent Company and the Operating Partnership in this report should be read in conjunction with each other to understand the results of the Company’s operations on a consolidated basis and how management operates the Company.

This report also includes separate Item 4 - Controls and Procedures sections, signature pages and Exhibits 31 and 32, certifications for each of the Parent Company and the Operating Partnership, in order to establish that the Chief Executive Officer and the Chief Financial Officer of the Parent Company and the Chief Executive Officer and the Chief Financial Officer of the Operating Partnership have made the requisite certifications and that the Parent Company and the Operating Partnership are compliant with Rule 13a-15 or Rule 15d-15 of the Securities Exchange Act of 1934, as amended, and 18 U.S.C. §1350.

3

Forward-Looking Statements

This Quarterly Report on Form 10-Q, or “this Report”, together with other statements and information publicly disseminated by the Parent Company and the Operating Partnership, contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or the “Exchange Act.” Forward-looking statements include statements concerning the Company’s plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions and other information that is not historical information. In some cases, forward-looking statements can be identified by terminology such as “believes”, “expects”, “estimates”, “may”, “will”, “should”, “anticipates”, or “intends” or the negative of such terms or other comparable terminology, or by discussions of strategy.  Such statements are based on assumptions and expectations that may not be realized and are inherently subject to risks, uncertainties and other factors, many of which cannot be predicted with accuracy and some of which might not even be anticipated. Although we believe the expectations reflected in these forward-looking statements are based on reasonable assumptions, future events and actual results, performance, transactions or achievements, financial and otherwise, may differ materially from the results, performance, transactions or achievements expressed or implied by the forward-looking statements. As a result, you should not rely on or construe any forward-looking statements in this Report, or which management or persons acting on their behalf may make orally or in writing from time to time, as predictions of future events or as guarantees of future performance. We caution you not to place undue reliance on forward-looking statements, which speak only as of the date of this Report or as of the dates otherwise indicated in such forward-looking statements.  All of our forward-looking statements, including those in this Report, are qualified in their entirety by this statement.

There are a number of risks and uncertainties that could cause our actual results to differ materially from the forward-looking statements contained in or contemplated by this Report. Any forward-looking statements should be considered in light of the risks and uncertainties referred to in Item 1A. “Risk Factors” in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2023 and in our other filings with the Securities and Exchange Commission (“SEC”). These risks include, but are not limited to, the following:

adverse changes in economic conditions in the real estate industry and in the markets in which we own and operate self-storage properties;

the effect of competition from existing and new self-storage properties and operators on our ability to maintain or raise occupancy and rental rates;

the failure to execute our business plan;

adverse impacts from pandemics, quarantines and stay at home orders, including the impact on our ability to operate our self-storage properties, the demand for self-storage, rental rates and fees and rent collection levels;

reduced availability and increased costs of external sources of capital;

increases in interest rates and operating costs;

financing risks, including the risk of over-leverage and the corresponding risk of default on our mortgage and other debt and potential inability to refinance existing or future debt;

counterparty non-performance related to the use of derivative financial instruments;

risks related to our ability to maintain our Parent Company’s qualification as a REIT for federal income tax purposes;

the failure of acquisitions and developments to close on expected terms, or at all, or to perform as expected;

increases in taxes, fees and assessments from state and local jurisdictions;

the failure of our joint venture partners to fulfill their obligations to us or their pursuit of actions that are inconsistent with our objectives;

reductions in asset valuations and related impairment charges;

cybersecurity breaches, cyber or ransomware attacks or a failure of our networks, systems or technology, which could adversely impact our business, customer and employee relationships or result in fraudulent payments;

5

changes in real estate, zoning, use and occupancy laws or regulations;

risks related to or consequences of earthquakes, hurricanes, windstorms, floods, other natural disasters or acts of violence, pandemics, active shooters, terrorism, insurrection or war that impact the markets in which we operate;

potential environmental and other material liabilities;

governmental, administrative and executive orders, regulations and laws, which could adversely impact our business operations and customer and employee relationships;

uninsured or uninsurable losses and the ability to obtain insurance coverage, indemnity or recovery from insurance against risks and losses;

our ability to attract and retain talent in the current labor market;

other factors affecting the real estate industry generally or the self-storage industry in particular; and

other risks identified in the Parent Company’s and the Operating Partnership’s combined Annual Report on Form 10-K for the year ended December 31, 2023 and, from time to time, in other reports that we file with the SEC or in other documents that we publicly disseminate.

Given these uncertainties and the other risks identified elsewhere in this Report, we caution readers not to place undue reliance on forward-looking statements. We undertake no obligation to publicly update or revise these forward-looking statements, whether as a result of new information, future events or otherwise except as may be required by securities laws. Because of the factors referred to above, the future events discussed in or incorporated by reference in this Report may not occur and actual results, performance or achievement could differ materially from that anticipated or implied in the forward-looking statements.

6

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CUBESMART AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

March 31,

December 31,

    

2024

    

2023

(unaudited)

ASSETS

Storage properties

$

7,397,588

$

7,367,613

Less: Accumulated depreciation

 

(1,458,854)

 

(1,416,377)

Storage properties, net (includes VIE amounts of $183,703 and $180,615, respectively)

 

5,938,734

 

5,951,236

Cash and cash equivalents (includes VIE amounts of $1,995 and $3,002, respectively)

 

5,587

 

6,526

Restricted cash

 

2,026

 

1,691

Loan procurement costs, net of amortization

 

3,681

 

3,995

Investment in real estate ventures, at equity

 

96,227

 

98,288

Other assets, net

 

162,633

 

163,284

Total assets

$

6,208,888

$

6,225,020

LIABILITIES AND EQUITY

Unsecured senior notes, net

$

2,777,525

$

2,776,490

Revolving credit facility

 

18,400

 

18,100

Mortgage loans and notes payable, net

 

127,239

 

128,186

Lease liabilities - finance leases

65,699

65,714

Accounts payable, accrued expenses and other liabilities

 

202,800

 

201,419

Distributions payable

 

115,918

 

115,820

Deferred revenue

 

39,268

 

38,483

Total liabilities

 

3,346,849

 

3,344,212

Noncontrolling interests in the Operating Partnership

 

58,253

 

60,276

Commitments and contingencies

Equity

Common shares $.01 par value, 400,000,000 shares authorized, 224,965,172 and 224,921,053

shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

2,250

 

2,249

Additional paid-in capital

 

4,144,972

 

4,142,229

Accumulated other comprehensive loss

 

(391)

 

(411)

Accumulated deficit

 

(1,364,723)

 

(1,345,239)

Total CubeSmart shareholders’ equity

 

2,782,108

 

2,798,828

Noncontrolling interests in subsidiaries

 

21,678

 

21,704

Total equity

 

2,803,786

 

2,820,532

Total liabilities and equity

$

6,208,888

$

6,225,020

See accompanying notes to the unaudited consolidated financial statements.

7

CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

Three Months Ended March 31,

    

2024

    

2023

REVENUES

Rental income

$

225,190

$

223,584

Other property related income

 

26,316

 

24,384

Property management fee income

 

9,900

 

8,560

Total revenues

 

261,406

 

256,528

OPERATING EXPENSES

Property operating expenses

 

77,037

71,127

Depreciation and amortization

 

50,717

50,329

General and administrative

 

15,625

14,674

Total operating expenses

 

143,379

 

136,130

OTHER (EXPENSE) INCOME

Interest:

Interest expense on loans

 

(22,919)

 

(23,691)

Loan procurement amortization expense

 

(1,030)

 

(1,040)

Equity in earnings of real estate ventures

 

845

 

2,551

Other

 

(65)

 

(276)

Total other expense

 

(23,169)

 

(22,456)

NET INCOME

 

94,858

 

97,942

Net income attributable to noncontrolling interests in the Operating Partnership

 

(541)

(614)

Net loss attributable to noncontrolling interests in subsidiaries

 

210

238

NET INCOME ATTRIBUTABLE TO THE COMPANY

$

94,527

$

97,566

Basic earnings per share attributable to common shareholders

$

0.42

$

0.43

Diluted earnings per share attributable to common shareholders

$

0.42

$

0.43

Weighted average basic shares outstanding

225,767

225,294

Weighted average diluted shares outstanding

226,575

226,183

See accompanying notes to the unaudited consolidated financial statements.

8

CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

Three Months Ended March 31,

    

2024

    

2023

NET INCOME

$

94,858

$

97,942

Other comprehensive income:

Reclassification of realized losses on interest rate swaps

 

20

 

20

OTHER COMPREHENSIVE INCOME:

 

20

 

20

COMPREHENSIVE INCOME

 

94,878

 

97,962

Comprehensive income attributable to noncontrolling interests in the Operating

Partnership

 

(541)

 

(614)

Comprehensive loss attributable to noncontrolling interests in subsidiaries

 

210

 

238

COMPREHENSIVE INCOME ATTRIBUTABLE TO THE COMPANY

$

94,547

$

97,586

See accompanying notes to the unaudited consolidated financial statements.

9

CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

(in thousands)

(unaudited)

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

Noncontrolling

 

Additional

Accumulated Other

Total CubeSmart

Noncontrolling

Interests in the

 

Common Shares

Paid-in

Comprehensive

Accumulated

Shareholders’

Interests in

Total

Operating

 

Number

Amount

Capital

(Loss) Income

Deficit

Equity

Subsidiaries

Equity

Partnership

 

Balance at December 31, 2023

 

224,921

$

2,249

$

4,142,229

$

(411)

$

(1,345,239)

$

2,798,828

$

21,704

$

2,820,532

$

60,276

Contributions from noncontrolling interests in subsidiaries

309

 

309

Distributions paid to noncontrolling interests in subsidiaries

(125)

(125)

Issuance of common shares, net

 

(10)

 

(10)

 

(10)

Issuance of restricted shares

 

24

1

 

1

 

1

Conversion from units to shares

 

12

561

 

561

 

561

 

(561)

Exercise of stock options

 

8

201

 

201

 

201

Amortization of restricted shares

1,189

 

1,189

 

1,189

Share compensation expense

802

 

802

 

802

Adjustment for noncontrolling interests in the Operating Partnership

1,346

 

1,346

 

1,346

 

(1,346)

Net income (loss)

94,527

 

94,527

 

(210)

 

94,317

 

541

Other comprehensive income, net

20

20

20

Common share distributions ($0.51 per share)

(115,357)

 

(115,357)

 

(115,357)

 

(657)

Balance at March 31, 2024

 

224,965

$

2,250

$

4,144,972

$

(391)

$

(1,364,723)

$

2,782,108

$

21,678

$

2,803,786

$

58,253

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

Noncontrolling

 

Additional

Accumulated Other

Total CubeSmart

Noncontrolling

Interests in the

 

Common Shares

Paid-in

Comprehensive

Accumulated

Shareholders’

Interests in

Total

Operating

 

Number

Amount

Capital

(Loss) Income

Deficit

Equity

Subsidiaries

Equity

Partnership

 

Balance at December 31, 2022

    

224,603

$

2,246

$

4,125,478

$

(491)

$

(1,301,030)

$

2,826,203

$

14,178

$

2,840,381

$

57,419

Distributions paid to noncontrolling interests in subsidiaries

(107)

(107)

Issuance of common shares, net

 

(91)

 

(91)

 

(91)

Issuance of restricted shares

 

22

 

 

Conversion from units to shares

 

8

361

 

361

 

361

 

(361)

Exercise of stock options

 

39

1

914

 

915

 

915

Amortization of restricted shares

1,171

 

1,171

 

1,171

Share compensation expense

730

 

730

 

730

Adjustment for noncontrolling interests in the Operating Partnership

(8,588)

 

(8,588)

 

(8,588)

 

8,588

Net income (loss)

97,566

 

97,566

 

(238)

 

97,328

 

614

Other comprehensive income, net

20

20

20

Common share distributions ($0.49 per share)

(110,524)

 

(110,524)

 

(110,524)

 

(695)

Balance at March 31, 2023

 

224,672

$

2,247

$

4,128,563

$

(471)

$

(1,322,576)

$

2,807,763

$

13,833

$

2,821,596

$

65,565

See accompanying notes to the unaudited consolidated financial statements.

10

CUBESMART AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Three Months Ended March 31,

    

2024

    

2023

Operating Activities

Net income

$

94,858

$

97,942

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

 

51,747

 

51,369

Non-cash portion of interest expense related to finance leases

(15)

(18)

Equity in earnings of real estate ventures

 

(845)

 

(2,551)

Cash distributed from real estate ventures

1,222

1,200

Equity compensation expense

 

2,829

 

2,536

Accretion of fair market value adjustment of debt

 

(172)

 

(260)

Changes in other operating accounts:

Other assets

 

56

 

(3,317)

Accounts payable and accrued expenses

 

(235)

 

(10,912)

Other liabilities

 

705

 

717

Net cash provided by operating activities

$

150,150

$

136,706

Investing Activities

Acquisitions of storage properties

(20,147)

Additions and improvements to storage properties

 

(9,656)

 

(11,150)

Development costs

 

(6,101)

 

(18,067)

Investments in real estate ventures

 

(305)

 

(5)

Cash distributed from real estate ventures

 

1,989

 

3,662

Net cash used in investing activities

$

(34,220)

$

(25,560)

Financing Activities

Proceeds from:

Revolving credit facility

213,920

220,073

Principal payments on:

Revolving credit facility

 

(213,620)

 

(219,573)

Mortgage loans and notes payable

 

(456)

 

(638)

Loan procurement costs

 

 

(39)

Issuance of common shares, net

 

(9)

 

(91)

Cash paid upon vesting of restricted shares

(838)

(635)

Exercise of stock options

 

201

 

915

Contributions from noncontrolling interests in subsidiaries

 

309

 

Distributions paid to noncontrolling interests in subsidiaries

(125)

(107)

Distributions paid to common shareholders

 

(115,253)

 

(110,495)

Distributions paid to noncontrolling interests in Operating Partnership

 

(663)

 

(699)

Net cash used in financing activities

$

(116,534)

$

(111,289)

Change in cash, cash equivalents and restricted cash

 

(604)

 

(143)

Cash, cash equivalents and restricted cash at beginning of period

 

8,217

8,925

Cash, cash equivalents and restricted cash at end of period

$

7,613

$

8,782

Supplemental Cash Flow and Noncash Information

Cash paid for interest, net of interest capitalized

$

31,551

$

32,202

Supplemental disclosure of noncash activities:

Derivative valuation adjustment

$

20

$

20

See accompanying notes to the unaudited consolidated financial statements.

11

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

March 31,

December 31,

    

2024

    

2023

(unaudited)

ASSETS

Storage properties

$

7,397,588

$

7,367,613

Less: Accumulated depreciation

 

(1,458,854)

 

(1,416,377)

Storage properties, net (includes VIE amounts of $183,703 and $180,615, respectively)

5,938,734

 

 

5,951,236

Cash and cash equivalents (includes VIE amounts of $1,995 and $3,002, respectively)

 

5,587

 

6,526

Restricted cash

 

2,026

 

1,691

Loan procurement costs, net of amortization

 

3,681

 

3,995

Investment in real estate ventures, at equity

 

96,227

 

98,288

Other assets, net

 

162,633

 

163,284

Total assets

$

6,208,888

$

6,225,020

LIABILITIES AND CAPITAL

Unsecured senior notes, net

$

2,777,525

$

2,776,490

Revolving credit facility

 

18,400

 

18,100

Mortgage loans and notes payable, net

 

127,239

 

128,186

Lease liabilities - finance leases

65,699

65,714

Accounts payable, accrued expenses and other liabilities

 

202,800

 

201,419

Distributions payable

 

115,918

 

115,820

Deferred revenue

 

39,268

 

38,483

Total liabilities

 

3,346,849

 

3,344,212

Limited Partnership interests of third parties

 

58,253

 

60,276

Commitments and contingencies

Capital

General Partner

 

2,782,499

 

2,799,239

Accumulated other comprehensive loss

 

(391)

 

(411)

Total CubeSmart, L.P. capital

 

2,782,108

 

2,798,828

Noncontrolling interests in subsidiaries

 

21,678

 

21,704

Total capital

 

2,803,786

 

2,820,532

Total liabilities and capital

$

6,208,888

$

6,225,020

See accompanying notes to the unaudited consolidated financial statements.

12

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per common unit data)

(unaudited)

Three Months Ended March 31,

2024

    

2023

REVENUES

Rental income

$

225,190

$

223,584

Other property related income

 

26,316

 

24,384

Property management fee income

 

9,900

 

8,560

Total revenues

 

261,406

 

256,528

OPERATING EXPENSES

Property operating expenses

 

77,037

 

71,127

Depreciation and amortization

 

50,717

 

50,329

General and administrative

 

15,625

 

14,674

Total operating expenses

 

143,379

 

136,130

Interest:

Interest expense on loans

 

(22,919)

 

(23,691)

Loan procurement amortization expense

 

(1,030)

 

(1,040)

Equity in earnings of real estate ventures

 

845

 

2,551

Other

 

(65)

 

(276)

Total other expense

 

(23,169)

 

(22,456)

NET INCOME

 

94,858

 

97,942

Net loss attributable to noncontrolling interests in subsidiaries

 

210

 

238

NET INCOME ATTRIBUTABLE TO CUBESMART L.P.

 

95,068

 

98,180

    

 

    

 

    

Basic earnings per unit attributable to CubeSmart, L.P.

$

0.42

$

0.43

Diluted earnings per unit attributable to CubeSmart, L.P.

$

0.42

$

0.43

Weighted average basic units outstanding

 

227,057

226,717

Weighted average diluted units outstanding

 

227,865

227,606

See accompanying notes to the unaudited consolidated financial statements.

13

CUBESMART, L.P. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in thousands)

(unaudited)

Three Months Ended March 31,

    

2024

    

2023

NET INCOME

$

94,858

$

97,942

Other comprehensive income:

Reclassification of realized losses on interest rate swaps

 

20

 

20

OTHER COMPREHENSIVE INCOME:

 

20

 

20

COMPREHENSIVE INCOME

 

94,878

 

97,962

Comprehensive loss attributable to noncontrolling interests in subsidiaries

 

210

 

238

COMPREHENSIVE INCOME ATTRIBUTABLE TO CUBESMART, L.P.

$

95,088

$

98,200

See accompanying notes to the unaudited consolidated financial statements.