CubeSmart Reports Q3 Financial Results, Emphasizes Strategic Investments

CubeSmart

MALVERN, PACubeSmart (NYSE: CUBE) has released its financial results for the third quarter ending September 30, 2024, showcasing a steady performance amid a competitive market landscape. The company reported diluted earnings per share of $0.44 and adjusted funds from operations (FFO) per diluted share of $0.67. Net income attributable to common shareholders was $100.8 million, a slight decrease from $102.6 million in the same quarter last year.

CEO Christopher P. Marr acknowledged the company’s resilience during its 20th anniversary as a public entity, stating, “While it’s exciting to celebrate our accomplishments over the past two decades, we remain keenly focused on our culture of innovation and enhancing our position as an industry leader.”

CubeSmart faced a 3.1% decline in same-store net operating income, primarily due to a 0.8% drop in revenues and a 5.3% rise in operating expenses. Despite these challenges, same-store occupancy remained robust, averaging 90.8% for the quarter.

Investment activities highlighted the quarter, with CubeSmart under contract to acquire two stores in Oregon and Pennsylvania for approximately $22 million. Additionally, the company is progressing on two joint venture development properties in New York, with a total anticipated investment of $36.9 million. These projects are slated to open in the third quarter of 2025.

CFO Tim Martin spoke on the financial strategies, noting, “During the quarter, we found a select number of attractive investment opportunities as the transaction market became more constructive. We raised a modest amount of equity capital and are excited to put our well-capitalized balance sheet to work.”

CubeSmart’s third-party management platform continued to expand, adding 24 stores in the quarter, bringing the total to 893 managed locations. The company also executed financing activities, selling 0.6 million shares through its equity program, generating net proceeds of $32.8 million.

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Looking ahead, CubeSmart anticipates fully diluted earnings per share for 2024 to range between $1.72 and $1.76, with adjusted FFO per share projected between $2.62 and $2.66. The outlook remains cautious, excluding potential future speculative investments due to market uncertainties.

As CubeSmart continues to navigate the evolving market, its strategic investments and operational focus aim to bolster its long-term positioning in the self-storage industry.

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