CubeSmart Reports Second Quarter 2025 Results
CubeSmart (NYSE: CUBE) reported its Q2 2025 financial results, with diluted EPS of $0.36 and FFO per share of $0.65, representing a 1.6% increase year-over-year. The company's same-store NOI decreased 1.1%, with same-store occupancy averaging 90.6% during the quarter.
Key developments include the acquisition of an 80% interest in HVP IV for $452.8 million, expansion of third-party management platform to 873 stores, and two joint venture development projects in New York. The company raised its full-year 2025 guidance, projecting FFO per share between $2.54 and $2.60.
The company maintained its quarterly dividend at $0.52 per share, while experiencing increased interest expenses due to higher debt levels and interest rates.
CubeSmart (NYSE: CUBE) ha comunicato i risultati finanziari del secondo trimestre 2025, con un utile diluito per azione di 0,36 $ e un FFO per azione di 0,65 $, segnando un incremento dell'1,6% rispetto all'anno precedente. Il NOI degli immobili a parità di negozi è diminuito dell'1,1%, con un'occupazione media del 90,6% nel trimestre.
Tra gli sviluppi principali, l'acquisizione di una quota dell'80% in HVP IV per 452,8 milioni di dollari, l'espansione della piattaforma di gestione di terze parti a 873 strutture e due progetti di sviluppo in joint venture a New York. La società ha rivisto al rialzo le previsioni per l'intero 2025, stimando un FFO per azione compreso tra 2,54 e 2,60 $.
La società ha mantenuto il dividendo trimestrale a 0,52 $ per azione, pur registrando un aumento delle spese per interessi a causa di maggiori livelli di debito e tassi di interesse più elevati.
CubeSmart (NYSE: CUBE) informó sus resultados financieros del segundo trimestre de 2025, con un beneficio diluido por acción de $0.36 y un FFO por acción de $0.65, representando un aumento del 1.6% interanual. El NOI de tiendas comparables disminuyó un 1.1%, con una ocupación promedio del 90.6% durante el trimestre.
Los desarrollos clave incluyen la adquisición de un 80% de participación en HVP IV por $452.8 millones, la expansión de la plataforma de gestión de terceros a 873 tiendas, y dos proyectos de desarrollo en joint venture en Nueva York. La compañía elevó su guía para todo el año 2025, proyectando un FFO por acción entre $2.54 y $2.60.
La empresa mantuvo su dividendo trimestral en $0.52 por acción, aunque experimentó un aumento en los gastos por intereses debido a mayores niveles de deuda y tasas de interés.
CubeSmart (NYSE: CUBE)는 2025년 2분기 재무 실적을 발표했으며, 희석 주당순이익(EPS) 0.36달러와 주당 FFO 0.65달러를 기록하여 전년 대비 1.6% 증가했습니다. 동일 점포 순영업소득(NOI)은 1.1% 감소했으며, 분기 동안 동일 점포 점유율은 평균 90.6%였습니다.
주요 사항으로는 HVP IV 지분 80%를 4억 5,280만 달러에 인수하고, 제3자 관리 플랫폼을 873개 점포로 확장했으며, 뉴욕에서 두 개의 합작 개발 프로젝트를 진행하고 있습니다. 회사는 2025년 연간 가이던스를 상향 조정하여 주당 FFO를 2.54달러에서 2.60달러 사이로 예상하고 있습니다.
회사는 분기 배당금을 주당 0.52달러로 유지했으나, 부채 증가와 금리 상승으로 인해 이자 비용이 늘어났습니다.
CubeSmart (NYSE : CUBE) a publié ses résultats financiers du deuxième trimestre 2025, avec un BPA dilué de 0,36 $ et un FFO par action de 0,65 $, soit une hausse de 1,6 % par rapport à l'année précédente. Le NOI des magasins comparables a diminué de 1,1 %, avec un taux d'occupation moyen de 90,6 % au cours du trimestre.
Les faits marquants incluent l'acquisition d'une participation de 80 % dans HVP IV pour 452,8 millions de dollars, l'expansion de la plateforme de gestion tierce à 873 magasins, ainsi que deux projets de développement en coentreprise à New York. La société a relevé ses prévisions pour l'ensemble de l'année 2025, anticipant un FFO par action compris entre 2,54 $ et 2,60 $.
La société a maintenu son dividende trimestriel à 0,52 $ par action, tout en enregistrant une hausse des charges d'intérêts en raison de niveaux d'endettement et de taux d'intérêt plus élevés.
CubeSmart (NYSE: CUBE) meldete seine Finanzergebnisse für das zweite Quartal 2025 mit einem verwässerten Gewinn je Aktie von 0,36 USD und einem FFO je Aktie von 0,65 USD, was einem Anstieg von 1,6 % gegenüber dem Vorjahr entspricht. Das NOI der vergleichbaren Filialen sank um 1,1 %, bei einer durchschnittlichen Auslastung von 90,6 % im Quartal.
Wesentliche Entwicklungen umfassen den Erwerb eines 80%-Anteils an HVP IV für 452,8 Millionen USD, die Erweiterung der Drittanbieter-Managementplattform auf 873 Standorte sowie zwei Joint-Venture-Entwicklungsprojekte in New York. Das Unternehmen hob seine Prognose für das Gesamtjahr 2025 an und erwartet ein FFO je Aktie zwischen 2,54 und 2,60 USD.
Die Gesellschaft behielt ihre vierteljährliche Dividende von 0,52 USD je Aktie bei, verzeichnete jedoch aufgrund höherer Schulden und steigender Zinssätze höhere Zinsaufwendungen.
- FFO per share increased 1.6% to $0.65 year-over-year
- Added 30 stores to third-party management platform, reaching 873 total managed stores
- Strategic acquisition of 80% interest in HVP IV portfolio of 28 stores for $452.8M
- Raised midpoint of full-year FFO guidance
- Maintained stable quarterly dividend of $0.52 per share
- Same-store NOI decreased 1.1% year-over-year
- Same-store revenues declined 0.5% while operating expenses increased 1.2%
- Interest expense increased by $6.3M due to higher debt levels and interest rates
- Occupancy declined to 91.1% from 91.8% year-over-year
Insights
CubeSmart posts mixed Q2 results with slight FFO growth despite revenue pressure and announces improved full-year outlook amid stabilizing fundamentals.
CubeSmart's Q2 results paint a picture of a self-storage REIT navigating a challenging but gradually improving environment. The company reported FFO of
The core same-store portfolio, comprising 606 properties and
The company's significant
Management's commentary and revised guidance suggest improving sector fundamentals. The updated full-year FFO guidance range of
The third-party management platform continues to be a bright spot, with 30 stores added in Q2, bringing the total to 873 properties under management. This represents a valuable diversification avenue that generates fee income without capital investment, projected at
MALVERN, Pa., July 31, 2025 (GLOBE NEWSWIRE) -- CubeSmart (NYSE: CUBE) today announced its operating results for the three and six months ended June 30, 2025.
“The rental season saw modestly better seasonal performance compared to last year as key operating metrics maintained their positive momentum throughout the second quarter and into July,” commented President and Chief Executive Officer Christopher P. Marr. “Fundamentals have continued to stabilize, supported by a lessening impact of new supply, better seasonal pricing to new customers, and the continued health of the existing customer.”
Key Highlights for the Second Quarter
- Reported diluted earnings per share (“EPS”) attributable to the Company’s common shareholders of
$0.36 . - Reported funds from operations (“FFO”), as adjusted, per diluted share of
$0.65 . - Same-store (606 stores) net operating income (“NOI”) decreased
1.1% year over year, resulting from a0.5% decrease in revenues and a1.2% increase in operating expenses. - Same-store occupancy averaged
90.6% during the quarter, ending at91.1% . - Added 30 stores to our third-party management platform, bringing our total third-party managed store count to 873.
Financial Results
Net income attributable to the Company’s common shareholders was
FFO, as adjusted was
Investment Activity
Acquisition Activity
The Company did not acquire any stores during the quarter ended June 30, 2025. In total for the year through June 30, 2025, the Company acquired the remaining
Development Activity
The Company has agreements with developers for the construction of self-storage properties in high-barrier-to-entry locations. As of June 30, 2025, the Company had two joint venture development properties under construction. The Company anticipates investing a total of
Third-Party Management
As of June 30, 2025, the Company’s third-party management platform included 873 stores totaling 56.6 million rentable square feet. During the three and six months ended June 30, 2025, the Company added 30 stores and 63 stores, respectively, to its third-party management platform.
Same-Store Results
The Company’s same-store portfolio as of June 30, 2025 included 606 stores containing 43.8 million rentable square feet, or approximately
Same-store physical occupancy as of June 30, 2025 and 2024 was
Operating Results
As of June 30, 2025, the Company’s total consolidated portfolio included 659 stores containing 48.1 million rentable square feet and had physical occupancy of
Total revenues increased
Interest expense increased from
Financing Activity
During the three months ended June 30, 2025, the Company did not sell any common shares of beneficial interest through its at-the-market ("ATM") equity program. As of June 30, 2025, the Company had 13.5 million shares available for issuance under the existing equity distribution agreements.
Quarterly Dividend
On May 20, 2025, the Company declared a quarterly dividend of
2025 Financial Outlook
“Stabilizing operating fundamentals coupled with tighter expense control generated FFO per share at the high end of our guidance range,” commented Chief Financial Officer Tim Martin. “A more constructive environment positions us to raise the midpoints of our full-year FFO per share and same-store ranges.”
The Company estimates that its fully diluted earnings per share for 2025 will be between
| 2025 Full Year Guidance Range Summary | Current Ranges for Annual Assumptions | Prior Guidance (1) | |||||||||||||||||
| Same-store revenue growth | (1.25 | %) | to | (0.25 | %) | (2.00 | %) | to | 0.00 | % | |||||||||
| Same-store expense growth | 1.50 | % | to | 3.00 | % | 3.25 | % | to | 4.50 | % | |||||||||
| Same-store NOI growth | (2.75 | %) | to | (1.25 | %) | (4.00 | %) | to | (1.75 | %) | |||||||||
| 2025 Acquisition Activity to Date | |||||||||||||||||||
| Dilution from properties in lease-up | $ | (0.01 | ) | to | $ | (0.02 | ) | $ | (0.01 | ) | to | $ | (0.02 | ) | |||||
| Property management fee income | $ | 41.0M | to | $ | 42.0M | $ | 42.0M | to | $ | 44.0M | |||||||||
| General and administrative expenses | $ | 63.0M | to | $ | 64.0M | $ | 61.5M | to | $ | 63.5M | |||||||||
| Interest and loan amortization expense | $ | 118.0M | to | $ | 122.0M | $ | 118.0M | to | $ | 124.0M | |||||||||
| Full year weighted average shares and units | 230.5M | 230.5M | |||||||||||||||||
| Diluted earnings per share attributable to common shareholders | $ | 1.44 | to | $ | 1.50 | $ | 1.41 | to | $ | 1.49 | |||||||||
| Plus: real estate depreciation and amortization | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
| FFO, as adjusted, per diluted share | $ | 2.54 | to | $ | 2.60 | $ | 2.51 | to | $ | 2.59 | |||||||||
(1) Prior guidance as indicated in our first quarter earnings release dated May 1, 2025.
| 3rd Quarter 2025 Guidance | Range | ||||||||||||||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.36 | to | $ | 0.38 | ||||||||||||||
| Plus: real estate depreciation and amortization | 0.28 | 0.28 | |||||||||||||||||
| FFO, as adjusted, per diluted share | $ | 0.64 | to | $ | 0.66 | ||||||||||||||
Conference Call
Management will host a conference call at 11:00 a.m. ET on Friday, August 1, 2025 to discuss financial results for the three months ended June 30, 2025.
A live webcast of the conference call will be available online from the investor relations page of the Company’s corporate website at investors.cubesmart.com. Telephone participants may join on the day of the call by dialing 1 (800) 715-9871 using conference ID number 4783436.
After the live webcast, the webcast will be available on CubeSmart’s website. In addition, a telephonic replay of the call will be available through August 8, 2025 by dialing 1 (800) 770-2030 using conference ID number 4783436.
Supplemental operating and financial data as of June 30, 2025 is available in the investor relations section of the Company’s corporate website.
About CubeSmart
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2025 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
Non-GAAP Financial Measures
Funds from operations (“FFO”) is a widely used performance measure for real estate companies and is provided here as a supplemental measure of operating performance. The April 2002 National Policy Bulletin of the National Association of Real Estate Investment Trusts (the “White Paper”), as amended, defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of real estate and related impairment charges, plus real estate depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.
Management uses FFO as a key performance indicator in evaluating the operations of the Company's stores. Given the nature of its business as a real estate owner and operator, the Company considers FFO a key measure of its operating performance that is not specifically defined by accounting principles generally accepted in the United States. The Company believes that FFO is useful to management and investors as a starting point in measuring its operational performance because FFO excludes various items included in net income that do not relate to or are not indicative of its operating performance such as gains (or losses) from sales of real estate, gains from remeasurement of investments in real estate ventures, impairments of depreciable assets, and depreciation, which can make periodic and peer analyses of operating performance more difficult. The Company’s computation of FFO may not be comparable to FFO reported by other REITs or real estate companies.
FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of the Company’s ability to make cash distributions. The Company believes that to further understand its performance, FFO should be compared with its reported net income and considered in addition to cash flows computed in accordance with GAAP, as presented in its consolidated financial statements.
FFO, as adjusted represents FFO as defined above, excluding the effects of acquisition related costs, gains or losses from early extinguishment of debt, and other non-recurring items, which the Company believes are not indicative of the Company’s operating results.
The Company defines net operating income, which it refers to as “NOI,” as total continuing revenues less continuing property operating expenses. NOI also can be calculated by adding back to net income (loss): interest expense on loans, loan procurement amortization expense, loss on early extinguishment of debt, acquisition related costs, equity in losses of real estate ventures, other expense, depreciation and amortization expense, general and administrative expense, and deducting from net income (loss): equity in earnings of real estate ventures, gains from sales of real estate, net, other income, gains from remeasurement of investments in real estate ventures and interest income. NOI is a measure of performance that is not calculated in accordance with GAAP.
Management uses NOI as a measure of operating performance at each of its stores, and for all of its stores in the aggregate. NOI should not be considered as a substitute for net income, cash flows provided by operating, investing and financing activities, or other income statement or cash flow statement data prepared in accordance with GAAP.
The Company believes NOI is useful to investors in evaluating operating performance because it is one of the primary measures used by management and store managers to evaluate the economic productivity of the Company’s stores, including the ability to lease stores, increase pricing and occupancy, and control property operating expenses. Additionally, NOI helps the Company’s investors meaningfully compare the results of its operating performance from period to period by removing the impact of its capital structure (primarily interest expense on outstanding indebtedness) and depreciation of the basis in its assets from operating results.
Forward-Looking Statements
This presentation, together with other statements and information publicly disseminated by CubeSmart (“we,” “us,” “our” or the “Company”), 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 presentation, 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 presentation or as of the dates otherwise indicated in such forward-looking statements. All of our forward-looking statements, including those in this presentation, 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 presentation. Any forward-looking statements should be considered in light of the risks and uncertainties referred to in Item 1A. “Risk Factors” in our Annual Report on Form 10-K 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 consumer impacts and declines in general economic conditions from inflation, tariffs, rising interest rates and wage stagnation including the impact on the demand for self-storage, rental rates and fees and rent collection levels;
- reduced availability and increased costs of external sources of capital;
- financing risks, including rising interest rates, 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 qualification as a real estate investment trust (“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;
- negative publicity relating to our business or industry, which could adversely affect our reputation;
- increases in operating costs, including, without limitation, insurance, utility and other general expenses, which could adversely affect our financial results;
- 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;
- risks associated with generative artificial intelligence tools and large language models and the conclusions that these tools and models may draw about our business and prospects in connection with the dissemination of negative opinions, characterizations or disinformation;
- changes in real estate, zoning, use and occupancy laws or regulations;
- risks related to or consequences of earthquakes, hurricanes, windstorms, floods, wildfires, 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;
- changes in the availability of and the cost of labor;
- other factors affecting the real estate industry generally or the self-storage industry in particular; and
- other risks identified in Item 1A of our Annual Report on Form 10-K 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, 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 in securities laws.
Contact:
CubeSmart
Josh Schutzer
Vice President, Finance
(610) 535-5700
| CUBESMART AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in thousands, except share data) | |||||||
| June 30, | December 31, | ||||||
| 2025 | 2024 | ||||||
| (unaudited) | |||||||
| ASSETS | |||||||
| Storage properties | $ | 8,098,390 | $ | 7,628,774 | |||
| Less: Accumulated depreciation | (1,684,787 | ) | (1,590,588 | ) | |||
| Storage properties, net (includes VIE amounts of | 6,413,603 | 6,038,186 | |||||
| Cash and cash equivalents (includes VIE amounts of | 8,741 | 71,560 | |||||
| Restricted cash (includes VIE amounts of | 5,591 | 6,103 | |||||
| Loan procurement costs, net of amortization | 2,098 | 2,731 | |||||
| Investment in real estate ventures, at equity | 74,640 | 91,973 | |||||
| Other assets, net | 204,647 | 183,628 | |||||
| Total assets | $ | 6,709,320 | $ | 6,394,181 | |||
| LIABILITIES AND EQUITY | |||||||
| Unsecured senior notes, net | $ | 2,782,701 | $ | 2,780,631 | |||
| Revolving credit facility | 366,300 | — | |||||
| Mortgage loans and notes payable, net (includes VIE amounts of | 205,092 | 205,915 | |||||
| Lease liabilities - finance leases | 65,636 | 65,668 | |||||
| Accounts payable, accrued expenses and other liabilities | 237,415 | 229,581 | |||||
| Distributions payable | 119,678 | 119,600 | |||||
| Deferred revenue | 43,224 | 38,918 | |||||
| Total liabilities | 3,820,046 | 3,440,313 | |||||
| Noncontrolling interests in the Operating Partnership | 46,888 | 51,193 | |||||
| Commitments and contingencies | |||||||
| Equity | |||||||
| Common shares $.01 par value, 400,000,000 shares authorized, 228,033,843 and 227,764,975 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively | 2,280 | 2,278 | |||||
| Additional paid-in capital | 4,293,182 | 4,285,570 | |||||
| Accumulated other comprehensive loss | (290 | ) | (330 | ) | |||
| Accumulated deficit | (1,481,494 | ) | (1,415,662 | ) | |||
| Total CubeSmart shareholders’ equity | 2,813,678 | 2,871,856 | |||||
| Noncontrolling interests in subsidiaries | 28,708 | 30,819 | |||||
| Total equity | 2,842,386 | 2,902,675 | |||||
| Total liabilities and equity | $ | 6,709,320 | $ | 6,394,181 | |||
| CUBESMART AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| REVENUES | |||||||||||||||
| Rental income | $ | 239,557 | $ | 226,791 | $ | 472,322 | $ | 451,981 | |||||||
| Other property related income | 32,596 | 28,958 | 62,362 | 55,274 | |||||||||||
| Property management fee income | 10,150 | 10,460 | 20,655 | 20,360 | |||||||||||
| Total revenues | 282,303 | 266,209 | 555,339 | 527,615 | |||||||||||
| OPERATING EXPENSES | |||||||||||||||
| Property operating expenses | 89,028 | 83,097 | 171,962 | 160,134 | |||||||||||
| Depreciation and amortization | 66,488 | 51,035 | 125,644 | 101,752 | |||||||||||
| General and administrative | 14,897 | 14,622 | 30,965 | 30,247 | |||||||||||
| Total operating expenses | 170,413 | 148,754 | 328,571 | 292,133 | |||||||||||
| OTHER (EXPENSE) INCOME | |||||||||||||||
| Interest: | |||||||||||||||
| Interest expense on loans | (29,090 | ) | (22,767 | ) | (55,190 | ) | (45,686 | ) | |||||||
| Loan procurement amortization expense | (1,221 | ) | (1,015 | ) | (2,442 | ) | (2,045 | ) | |||||||
| Equity in earnings of real estate ventures | 547 | 425 | 926 | 1,270 | |||||||||||
| Other | 306 | 88 | 1,115 | 23 | |||||||||||
| Total other expense | (29,458 | ) | (23,269 | ) | (55,591 | ) | (46,438 | ) | |||||||
| NET INCOME | 82,432 | 94,186 | 171,177 | 189,044 | |||||||||||
| Net income attributable to noncontrolling interests in the Operating Partnership | (401 | ) | (524 | ) | (854 | ) | (1,065 | ) | |||||||
| Net loss attributable to noncontrolling interests in subsidiaries | 929 | 302 | 1,834 | 512 | |||||||||||
| NET INCOME ATTRIBUTABLE TO THE COMPANY | $ | 82,960 | $ | 93,964 | $ | 172,157 | $ | 188,491 | |||||||
| Basic earnings per share attributable to common shareholders | $ | 0.36 | $ | 0.42 | $ | 0.75 | $ | 0.83 | |||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.36 | $ | 0.41 | $ | 0.75 | $ | 0.83 | |||||||
| Weighted average basic shares outstanding | 228,737 | 225,886 | 228,700 | 225,827 | |||||||||||
| Weighted average diluted shares outstanding | 229,303 | 226,618 | 229,273 | 226,593 | |||||||||||
| Same-Store Results (606 stores) (in thousands, except percentages and per square foot data) (unaudited) | |||||||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||||||
| June 30, | Percent | June 30, | Percent | ||||||||||||||||||||
| 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||||||||||
| REVENUES | |||||||||||||||||||||||
| Rental income | $ | 222,645 | $ | 224,165 | (0.7 | )% | $ | 443,557 | $ | 446,904 | (0.7 | )% | |||||||||||
| Other property related income | 12,043 | 11,634 | 3.5 | % | 22,541 | 21,141 | 6.6 | % | |||||||||||||||
| Total revenues | 234,688 | 235,799 | (0.5 | )% | 466,098 | 468,045 | (0.4 | )% | |||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||||||
| Property taxes (1) | 27,014 | 26,311 | 2.7 | % | 54,580 | 53,315 | 2.4 | % | |||||||||||||||
| Personnel expense | 13,893 | 14,106 | (1.5 | )% | 27,458 | 28,093 | (2.3 | )% | |||||||||||||||
| Advertising | 8,049 | 6,907 | 16.5 | % | 10,826 | 9,847 | 9.9 | % | |||||||||||||||
| Repair and maintenance | 2,893 | 3,203 | (9.7 | )% | 5,598 | 5,738 | (2.4 | )% | |||||||||||||||
| Utilities | 5,015 | 5,254 | (4.5 | )% | 11,097 | 11,301 | (1.8 | )% | |||||||||||||||
| Property insurance | 3,023 | 3,287 | (8.0 | )% | 6,413 | 6,472 | (0.9 | )% | |||||||||||||||
| Other expenses | 9,479 | 9,501 | (0.2 | )% | 19,432 | 19,423 | 0.0 | % | |||||||||||||||
| Total operating expenses | 69,366 | 68,569 | 1.2 | % | 135,404 | 134,189 | 0.9 | % | |||||||||||||||
| Net operating income (2) | $ | 165,322 | $ | 167,230 | (1.1 | )% | $ | 330,694 | $ | 333,856 | (0.9 | )% | |||||||||||
| Gross margin | 70.4 | % | 70.9 | % | 70.9 | % | 71.3 | % | |||||||||||||||
| Period end occupancy | 91.1 | % | 91.8 | % | 91.1 | % | 91.8 | % | |||||||||||||||
| Period average occupancy | 90.6 | % | 91.4 | % | 90.1 | % | 90.7 | % | |||||||||||||||
| Total rentable square feet | 43,768 | 43,768 | |||||||||||||||||||||
| Realized annual rent per occupied square foot (3) | $ | 22.45 | $ | 22.41 | 0.2 | % | $ | 22.50 | $ | 22.51 | 0.0 | % | |||||||||||
| Reconciliation of Same-Store Net Operating Income to Net Income | |||||||||||||||||||||||
| Same-store net operating income (2) | $ | 165,322 | $ | 167,230 | $ | 330,694 | $ | 333,856 | |||||||||||||||
| Non same-store net operating income (2) | 10,882 | 1,710 | 18,675 | 3,745 | |||||||||||||||||||
| Indirect property overhead (4) | 17,071 | 14,172 | 34,008 | 29,880 | |||||||||||||||||||
| Depreciation and amortization | (66,488 | ) | (51,035 | ) | (125,644 | ) | (101,752 | ) | |||||||||||||||
| General and administrative expense | (14,897 | ) | (14,622 | ) | (30,965 | ) | (30,247 | ) | |||||||||||||||
| Interest expense on loans | (29,090 | ) | (22,767 | ) | (55,190 | ) | (45,686 | ) | |||||||||||||||
| Loan procurement amortization expense | (1,221 | ) | (1,015 | ) | (2,442 | ) | (2,045 | ) | |||||||||||||||
| Equity in earnings of real estate ventures | 547 | 425 | 926 | 1,270 | |||||||||||||||||||
| Other | 306 | 88 | 1,115 | 23 | |||||||||||||||||||
| Net income | $ | 82,432 | $ | 94,186 | $ | 171,177 | $ | 189,044 | |||||||||||||||
| (1) | For comparability purposes, current year amounts related to the expiration of certain real estate tax abatements have been excluded from the same-store portfolio results ( |
| (2) | Net operating income (“NOI”) is a non-GAAP (“generally accepted accounting principles”) financial measure. The above table reconciles same-store NOI to GAAP Net income. |
| (3) | Realized annual rent per occupied square foot is calculated by dividing annualized rental income by the weighted average occupied square feet for the period. |
| (4) | Includes property management fee income earned in conjunction with managed properties. |
| Non-GAAP Measure – Computation of Funds From Operations (in thousands, except percentages and per share and unit data) (unaudited) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income attributable to the Company's common shareholders | $ | 82,960 | $ | 93,964 | $ | 172,157 | $ | 188,491 | |||||||
| Add: | |||||||||||||||
| Real estate depreciation and amortization: | |||||||||||||||
| Real property | 64,118 | 49,436 | 120,807 | 98,685 | |||||||||||
| Company's share of unconsolidated real estate ventures | 1,433 | 2,046 | 3,243 | 4,138 | |||||||||||
| Net income attributable to noncontrolling interests in the Operating Partnership | 401 | 524 | 854 | 1,065 | |||||||||||
| FFO attributable to the Company's common shareholders and third-party OP unitholders | $ | 148,912 | $ | 145,970 | $ | 297,061 | $ | 292,379 | |||||||
| Earnings per share attributable to common shareholders - basic | $ | 0.36 | $ | 0.42 | $ | 0.75 | $ | 0.83 | |||||||
| Earnings per share attributable to common shareholders - diluted | $ | 0.36 | $ | 0.41 | $ | 0.75 | $ | 0.83 | |||||||
| FFO per diluted share and unit | $ | 0.65 | $ | 0.64 | $ | 1.29 | $ | 1.28 | |||||||
| Weighted average basic shares outstanding | 228,737 | 225,886 | 228,700 | 225,827 | |||||||||||
| Weighted average diluted shares outstanding | 229,303 | 226,618 | 229,273 | 226,593 | |||||||||||
| Weighted average diluted shares and units outstanding | 230,418 | 227,877 | 230,415 | 227,867 | |||||||||||
| Dividends per common share and unit | $ | 0.52 | $ | 0.51 | $ | 1.04 | $ | 1.02 | |||||||
| Payout ratio of FFO | 80.0 | % | 79.7 | % | 80.6 | % | 79.7 | % | |||||||
FAQ
What were CubeSmart's (CUBE) key financial metrics for Q2 2025?
How much did CubeSmart (CUBE) pay for the HVP IV acquisition in 2025?
What is CubeSmart's (CUBE) updated FFO guidance for full-year 2025?
What is CubeSmart's (CUBE) current quarterly dividend?
How many properties does CubeSmart (CUBE) manage through its third-party platform?
