CubeSmart Files 2023 Annual Report on Form 10-K

TL;DR

<b>CubeSmart filed its 2023 10-K, detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

CubeSmart (CUBE) filed a Annual Report (10-K) with the SEC on February 29, 2024. CubeSmart filed its 2023 Form 10-K on February 29, 2024. The filing covers the fiscal year ending December 31, 2023. CubeSmart is a Real Estate Investment Trust (REIT) operating in the self-storage sector. The company's principal business address is 5 Old Lancaster Road, Malvern, PA 19355. The filing includes information on various financial statement line items and disclosures.

Why It Matters

For investors and stakeholders tracking CubeSmart, this filing contains several important signals. This 10-K provides a comprehensive overview of CubeSmart's financial health, operational strategies, and risk factors for investors and stakeholders. As a REIT, CubeSmart's performance is closely tied to the real estate market, making this filing crucial for understanding its position within the industry.

Risk Assessment

Risk Level: medium — CubeSmart shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded REIT, which inherently carries market and financial risks associated with real estate investments and operations, but no immediate red flags are apparent from the header information alone.

Analyst Insight

Review the full 10-K filing to analyze CubeSmart's revenue, net income, debt levels, and strategic initiatives for the fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-29 — Filing Date (FILED AS OF DATE)
• 6798 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)
• 001-32324 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• CubeSmart (company) — COMPANY CONFORMED NAME
• CubeSmart, L.P. (company) — FILER: COMPANY DATA
• 5 Old Lancaster Road (location) — BUSINESS ADDRESS
• Malvern (location) — CITY
• PA (location) — STATE
• 19355 (location) — ZIP
• 610-535-5700 (phone) — BUSINESS PHONE
• 20231231 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

CubeSmart operates within the Real Estate Investment Trusts (REITs) sector, specifically focusing on self-storage facilities. This industry is influenced by real estate market conditions, occupancy rates, and rental income.

Regulatory Implications

As a publicly traded company and REIT, CubeSmart is subject to regulations from the Securities and Exchange Commission (SEC) and other relevant financial and real estate governing bodies.

What Investors Should Do

1. Analyze CubeSmart's financial statements for the fiscal year 2023, paying close attention to revenue, net income, and balance sheet items.
2. Examine the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic outlook.
3. Review the risk factors section to understand potential challenges and uncertainties facing CubeSmart.

Key Dates

• 2023-12-31: Fiscal Year End — Covers the full fiscal year's financial results.
• 2024-02-29: 10-K Filing Date — Official date of submission to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ending December 31, 2023, following previous filings for prior periods.

Key Financial Figures

• $0.01 — ge on Which Registered Common Shares, $0.01 par value per share, of CubeSmart CUB
• $44.66 — ed upon the last reported sale price of $44.66 per share on the New York Stock Exchang
• $9,838 — ship units of LAACO, Ltd. ("LAACO") for $9,838 per unit. At the time of the acquisitio
• $21.8 million — VA and Arlington, VA for approximately $21.8 million and $26.4 million, respectively. In eac
• $26.4 m — VA for approximately $21.8 million and $26.4 million, respectively. In each case, the
• $22.0 million — d in New Jersey for a purchase price of $22.0 million. Development Activity. As of December
• $51.2 million — s of December 31, 2023, we had invested $51.2 million of an expected $94.2 million related to
• $94.2 million — d invested $51.2 million of an expected $94.2 million related to these four projects. Mortg
• $30.5 million — regate outstanding principal balance of $30.5 million. Business Strategy Our business str

Filing Documents

• cube-20231231x10k.htm (10-K) — 5229KB
• cube-20231231xex21d1.htm (EX-21.1) — 114KB
• cube-20231231xex23d1.htm (EX-23.1) — 4KB
• cube-20231231xex31d1.htm (EX-31.1) — 12KB
• cube-20231231xex31d2.htm (EX-31.2) — 12KB
• cube-20231231xex31d3.htm (EX-31.3) — 12KB
• cube-20231231xex31d4.htm (EX-31.4) — 12KB
• cube-20231231xex32d1.htm (EX-32.1) — 11KB
• cube-20231231xex32d2.htm (EX-32.2) — 11KB
• cube-20231231xex97d1.htm (EX-97.1) — 57KB
• cube-20231231xex99d1.htm (EX-99.1) — 381KB
• cube-20231231x10k002.jpg (GRAPHIC) — 63KB
• 0001298675-24-000011.txt (&nbsp;) — 18683KB
• cube-20231231.xsd (EX-101.SCH) — 98KB
• cube-20231231_cal.xml (EX-101.CAL) — 91KB
• cube-20231231_def.xml (EX-101.DEF) — 510KB
• cube-20231231_lab.xml (EX-101.LAB) — 851KB
• cube-20231231_pre.xml (EX-101.PRE) — 745KB
• cube-20231231x10k_htm.xml (XML) — 3255KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 14 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 30 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mining Safety Disclosures 32 PART II 32 Item 5. Market for Registrant's Common Equity, Related Shareholder Matters, and Issuer Purchases of Equity Securities 32 Item 6.

Selected Financial Data

Selected Financial Data 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 44 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 45 Item 9A.

Controls and Procedures

Controls and Procedures 45 Item 9B. Other Information 46 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 46 PART III 47 Item 10. Trustees, Executive Officers, and Corporate Governance 47 Item 11.

Executive Compensation

Executive Compensation 47 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 47 Item 13. Certain Relationships and Related Transactions, and Trustee Independence 47 Item 14. Principal Accountant Fees and Services 47 PART IV 48 Item 15. Exhibits and Financial Statement Schedules 48 Item 16. Form 10-K Summary 53 4 Table of Contents PART I

Forward-Looking Statements

Forward-Looking Statements This Annual Report on Form 10-K, 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 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

BUSINESS

ITEM 1. BUSINESS Overview We are a self-administered and self-managed real estate company focused primarily on the ownership, operation, management, acquisition and development of self-storage properties in the United States. As of December 31, 2023, we owned (or partially owned and consolidated) 611 self-storage properties located in 24 states and in the District of Columbia containing an aggregate of approximately 44.1 million rentable square feet. As of December 31, 2023, approximately 89.8% of the rentable square footage at our owned stores was leased to approximately 379,000 customers, and no single customer represented a significant concentration of our revenues. As of December 31, 2023, we owned stores in the District of Columbia and the following 24 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah and Virginia. In addition, as of December 31, 2023, we managed 795 stores for third parties (including 77 stores containing an aggregate of approximately 5.6 million net rentable square feet as part of six separate unconsolidated real estate ventures) bringing the total number of stores we owned and/or managed to 1,406. As of December 31, 2023, we managed stores for third parties in the District of Columbia and the following 40 states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, Washington and Wisconsin. Our self-storage properties are designed to offer affordable and easily-accessible storage space for o

View Full Filing

View this 10-K filing on SEC EDGAR