MALVERN, PA — CubeSmart (NYSE: CUBE), a prominent player in the self-storage industry, has released its financial results for the fourth quarter and full year ending December 31, 2024. The company reported mixed performance metrics amidst a challenging market environment, accompanied by updates on significant investments and its outlook for 2025.
Key Financial Highlights
For the fourth quarter, CubeSmart reported a net income of $101.9 million, translating to $0.45 diluted earnings per share (EPS), a slight decline compared to $0.50 EPS in the same period last year. Full-year net income reached $391.2 million with an EPS of $1.72, down from $1.82 in 2023.
Funds from operations (FFO), as adjusted, totaled $155.4 million for the fourth quarter, or $0.68 per diluted share, reflecting a 2.9% year-over-year decline. Full-year FFO, as adjusted, was $600.8 million, or $2.63 per diluted share, a 1.9% decrease from 2023.
Same-store net operating income (NOI) for the quarter dropped 3.7% year over year, driven by declining revenues and rising operating expenses. Average same-store occupancy fell to 89.6%, ending the year at 89.3%.
Strategic Investments
CubeSmart made noteworthy investment moves, including acquiring an 85% interest in 14 Texas-based stores for $157.3 million and purchasing two stores in Oregon and Pennsylvania for $22 million. Early this year, the company acquired the remaining 80% interest in a joint venture for $452.8 million, adding 28 stores across various states to its portfolio.
The company’s third-party management platform expanded significantly, with the addition of 29 stores in Q4 and 160 stores for the full year, bringing the total count to 902 managed properties.
Dividend Growth and Financial Outlook
CubeSmart increased its quarterly dividend by 2%, raising the annualized rate to $2.08 per share. For 2025, the company anticipates diluted FFO per share between $2.50 and $2.59, expressing optimism about steady self-storage fundamentals and continued value creation through strategic growth.
With a robust portfolio and solid operational foundation, CubeSmart remains well-positioned to weather market challenges while capitalizing on emerging opportunities.
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