trending Market Intelligence /marketintelligence/en/news-insights/trending/_jzaiCgCzJGUDZjEnxbxGw2 content esgSubNav
In This List

CubeSmart keeps busy on the acquisition, development fronts


Insight Weekly: Recession risk persists; Banks pull back from crypto; 2022 laggard stocks rally


Highlighting the Top Regional Aftermarket Research Brokers by Sector Coverage


Insight Weekly: Inflation eases; bank M&A slows; top companies boost market share


Insight Weekly: PE firms shift strategies; bank earnings kick off; bankruptcies plummet

CubeSmart keeps busy on the acquisition, development fronts

CubeSmarthas been active on the property front recently, with numerous acquisitions and developmentprojects taking place since the start of 2016.

In reporting its first-quarter results, the storage REIT revealedthat it purchased nine properties in Texas, Florida, Connecticut and Washington,D.C., for $135.9 million during the quarter and the acquisition of one Coloradoand one Texas property for $23 million subsequent to quarter-end. CubeSmart hasfour more properties under contract for $58.5 million.

Also during the first quarter, the company picked up a newlybuilt Brooklyn, N.Y., property for $48.5 million and opened for operation a jointventure development property in Queens at a total investment of $31.8 million.

At March 31, the company had five facilities under contract topurchase for $64.2 million upon issuance of their certificates of occupancy. Twoof the properties are in Texas, two are in Illinois and one is in Florida. The purchasesare expected to close between the second quarter and the first quarter of 2017.

Also as of March 31, the company had four joint venture developmentsand a wholly owned project underway. The company expects to invest a total of $206.6million in these projects and had invested $58.3 million as of March 31. Three ofthese assets are in New York and one asset each is in Washington, D.C., and Florida.The projects are expected to open between the third quarter and the second quarterof 2018.

CubeSmart also provided an update on its HVP unconsolidated jointventure, which was formedin December 2015 to acquire a 37-property portfolio for $242.5 million. The ventureclosed on 30 properties in the 2015 fourth quarter for $193.7 million, one propertyfor $5.7 million during the first quarter and five properties subsequent to March31 for $36.1 million. The company expects the venture to close on the remainingasset for $7.0 million during the second quarter.

As of March 31, the company had contributed $8.6 million to thejoint venture and expects its total contribution to be $10.5 million.

Also, on March 30, the HVP venture agreed to acquire a 31-propertyportfolio for $115.5 million. The facilities were previously managed by the companyand are in South Carolina, Georgia, North Carolina and Michigan. And as of March31, HVP had acquired 30 of the assets for $112.8 million. It expects to close onthe remaining property during the second quarter for $2.7 million.

CubeSmart's contribution to HVP for this portfolio acquisitionwas $5.3 million as of March 31, and its total contribution is expected to be $5.4million.