Financial Performance - Net income attributable to common shareholders for Q1 2025 was $89.2 million, down from $94.5 million in Q1 2024, with diluted EPS decreasing to $0.39 from $0.42[5] - Adjusted FFO for Q1 2025 was $148.1 million, slightly up from $146.4 million in Q1 2024, maintaining FFO per diluted share at $0.64 for both periods[6] - Total revenues for Q1 2025 were $273.036 million, an increase of 4.0% from $261.406 million in Q1 2024[43] - Net income attributable to the company for Q1 2025 was $89.197 million, compared to $94.527 million in Q1 2024, reflecting a decrease of 5.0%[43] - Same-store rental income decreased by 0.8% to $220.912 million in Q1 2025 from $222.739 million in Q1 2024[45] - Basic earnings per share attributable to common shareholders for Q1 2025 was $0.39, down from $0.42 in Q1 2024[43] - FFO attributable to the Company's common shareholders and third-party OP unitholders increased to $148.149 million from $146.409 million, showing a growth of about 1.2%[49] - Earnings per share attributable to common shareholders remained stable at $0.39 for both basic and diluted shares, compared to $0.42 in the previous year[49] Revenue and Expenses - Total revenues increased by $11.6 million, while property operating expenses rose by $5.9 million compared to Q1 2024, primarily due to acquisitions and new developments[14] - Interest expense increased to $26.1 million in Q1 2025 from $22.9 million in Q1 2024, attributed to a higher average outstanding debt balance and increased interest rates[15] - Interest expense on loans increased to $26.100 million in Q1 2025, compared to $22.919 million in Q1 2024[43] - Real estate depreciation and amortization for real property increased to $56.689 million from $49.249 million, a rise of approximately 15.1%[49] Occupancy and Property Performance - Same-store NOI decreased by 0.8% year-over-year, driven by a 0.4% decline in revenues and a 0.6% increase in operating expenses[12] - Same-store occupancy averaged 89.5% during the quarter, ending at 89.7%[9] - Period end occupancy for same-store properties was 89.7%, down from 90.3% in the prior year[45] - The company reported a gross margin of 71.5% for same-store results, slightly down from 71.7% in the previous year[45] - The company experienced a 10.4% increase in other property-related income, rising to $10.498 million from $9.507 million year-over-year[45] Assets and Liabilities - Total assets increased to $6.740 billion as of March 31, 2025, up from $6.394 billion as of December 31, 2024[41] - Total liabilities increased to $3.817 billion as of March 31, 2025, compared to $3.440 billion as of December 31, 2024[41] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.52 per common share, paid on April 15, 2025[17] - Dividends per common share and unit increased to $0.52 from $0.51, reflecting a growth of approximately 2.0%[49] - The payout ratio of FFO rose to 81.3% from 79.7%, indicating a higher proportion of FFO being distributed as dividends[49] Shareholder Metrics - Weighted average diluted shares outstanding increased to 229,169 from 226,575, representing an increase of about 0.7%[49] - Weighted average basic shares outstanding increased to 228,663 from 225,767, reflecting an increase of about 1.1%[49] Future Estimates - The company estimates 2025 diluted EPS to be between $1.41 and $1.49, and adjusted FFO per share to be between $2.51 and $2.59[20] Acquisitions and Investments - The company acquired the remaining 80% interest in the HVP IV portfolio for $452.8 million, which included $44.4 million to repay existing indebtedness[7] - The company has two joint venture development properties under construction, with a total anticipated investment of $36.9 million, of which $18.5 million has been invested as of March 31, 2025[8] Noncontrolling Interests - Net income attributable to noncontrolling interests in the Operating Partnership decreased to $453,000 from $541,000, a decline of approximately 16.2%[49] - The Company's share of unconsolidated real estate ventures decreased to $1.810 million from $2.092 million, a decline of about 13.5%[49]

Company Overview - CubeSmart is a self-administered and self-managed real estate investment trust (REIT) that owns or manages 1,537 self-storage properties across the United States [1] - According to the 2025 Self Storage Almanac, CubeSmart ranks among the top three owners and operators of self-storage properties in the U.S. [1] Dividend Announcement - The Board of Trustees of CubeSmart declared a quarterly dividend of $0.52 per common share for the period ending June 30, 2025 [1] - This dividend is payable on July 15, 2025, to common shareholders of record on July 1, 2025 [1] Mission and Services - The company's mission is to simplify organizational and logistical challenges for customers through innovative solutions, unparalleled service, and genuine care [2] - CubeSmart's self-storage properties are designed to provide affordable, easily accessible, and, in many locations, climate-controlled storage space for both residential and commercial customers [2]

Group 1 - Albert Anthony is a Croatian-American media personality and analyst for financial media platforms Investing.com and Seeking Alpha, focusing on dividend stocks and general market commentary [1] - Since 2023, Albert Anthony has gained over 1,000 followers and has covered more than 200 companies across multiple sectors [1] - He has experience as an analyst in the IT sector and was part of the IT team at a top 10 financial firm in the US [1] Group 2 - Albert Anthony holds a B.A. from Drew University and has completed coursework through the Corporate Finance Institute and Coursera [1] - In 2025, he plans to launch a new book on Amazon discussing his methodology as an analyst and how he rates stocks [1] - The Albert Anthony brand is owned by Albert Anthony & Co., a sole proprietorship registered in Austin, Texas [1]

Group 1 - The investment approach has received over 500 five-star reviews, indicating high satisfaction among members who are experiencing benefits [1] - The company invests significant resources, over $100,000 annually, into researching profitable investment opportunities, particularly in real estate strategies [1] - Recent poor performance of REITs has led to a decline in investor interest, overshadowing their long-term rewarding potential [1] Group 2 - Jussi Askola leads the High Yield Landlord investing group, providing real-time updates on his REIT portfolio and transactions [2] - The group offers features such as three distinct portfolios (core, retirement, international), buy/sell alerts, and direct access to analysts for inquiries [2] - Jussi Askola is the President of Leonberg Capital, a value-oriented investment firm that consults various investment entities on REIT investing [2]

Investors interested in REIT and Equity Trust - Other stocks are likely familiar with W.P. Carey (WPC) and CubeSmart (CUBE) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revisi ...

Property Management and Operations - As of March 31, 2025, the company owned 659 self-storage properties with approximately 48.1 million rentable square feet, compared to 631 properties and 45.8 million square feet as of December 31, 2024[116]. - The company managed a total of 1,528 stores, including 869 stores for third parties, as of March 31, 2025[116]. - For the three months ended March 31, 2025, the company's stores in New York, Florida, Texas, and California contributed approximately 17%, 14%, 11%, and 10% of total revenues, respectively[122]. - The company experienced seasonal fluctuations in occupancy levels, typically higher during summer months due to increased moving activity[118]. - The company focuses on maximizing internal growth opportunities while selectively pursuing targeted acquisitions and developments of self-storage properties[120]. - The company acquired 28 stores from January 1, 2024, to March 31, 2025, increasing the total from 631 to 659 stores[138]. - The company has no significant customer concentration, with no single customer representing a significant portion of revenues[122]. Financial Performance - Total revenues increased from $261.4 million for the three months ended March 31, 2024, to $273.0 million for the three months ended March 31, 2025, an increase of $11.6 million, or 4.4%[143]. - Property operating expenses increased from $77.0 million for the three months ended March 31, 2024, to $82.9 million for the three months ended March 31, 2025, an increase of $5.9 million, or 7.7%[144]. - Depreciation and amortization increased from $50.7 million for the three months ended March 31, 2024, to $59.2 million for the three months ended March 31, 2025, an increase of $8.4 million, or 16.6%[145]. - Interest expense on loans increased from $22.9 million during the three months ended March 31, 2024, to $26.1 million during the three months ended March 31, 2025, an increase of $3.2 million, or 13.9%[146]. - Cash provided by operating activities decreased from $150.2 million for the three months ended March 31, 2024, to $146.3 million for the three months ended March 31, 2025, reflecting a decrease of $3.8 million[147]. - Cash used in investing activities increased from $34.2 million for the three months ended March 31, 2024, to $467.3 million for the three months ended March 31, 2025, reflecting an increase of $433.1 million[148]. - Cash provided by financing activities was $259.1 million for the three months ended March 31, 2025, compared to cash used of $116.5 million for the three months ended March 31, 2024, reflecting a change of $375.6 million[149]. - For the three months ended March 31, 2025, net income attributable to the company's common shareholders was $89.197 million, compared to $94.527 million for the same period in 2024[176]. - Funds from operations (FFO) attributable to the company's common shareholders and third-party OP unitholders for the three months ended March 31, 2025, was $148.149 million, slightly up from $146.409 million in 2024[176]. Debt and Liquidity - As of March 31, 2025, the company had approximately $10.8 million in available cash and cash equivalents, and approximately $467.0 million of availability for borrowings under its Revolver[158]. - The average outstanding debt balance increased from $2.99 billion during the three months ended March 31, 2024, to $3.20 billion during the three months ended March 31, 2025[146]. - As of March 31, 2025, the total outstanding unsecured senior notes amounted to $2,781.666 million, slightly up from $2,780.631 million as of December 31, 2024[159]. - The effective interest rates on the unsecured senior notes range from 2.10% to 4.46%, with a weighted average effective interest rate of 3.994% for the 2025 notes[160]. - The company has an $850 million unsecured revolving credit facility maturing on February 15, 2027, with borrowings under the facility having an interest rate of 5.44% as of March 31, 2025[162][163]. - As of March 31, 2025, $467 million was available for borrowing under the revolving credit facility, reduced by an outstanding letter of credit of $0.6 million[163]. - The total mortgage loans and notes payable, net, as of March 31, 2025, was $205.500 million, down from $205.915 million as of December 31, 2024[165]. Risk Management - The company’s operating results are sensitive to changes in economic conditions affecting consumer spending, which could impact growth and profitability[119]. - The company aims to manage interest rate risk through derivative financial instruments to mitigate the impact of interest rate fluctuations on earnings and cash flows[180]. - A 100 basis point increase in market interest rates on variable-rate debt would decrease future earnings and cash flows by approximately $3.8 million annually[182]. - A 100 basis point decrease in market interest rates on variable-rate debt would increase future earnings and cash flows by approximately $3.8 million annually[182]. - A 100 basis point increase in market interest rates would decrease the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $101.1 million[183]. - A 100 basis point decrease in market interest rates would increase the fair value of outstanding fixed-rate mortgage debt and unsecured senior notes by approximately $105.3 million[183]. Compliance and Governance - The company replaced its prior at-the-market equity distribution program with a new program allowing the sale of up to 13,510,817 common shares, with no shares sold under the new program as of March 31, 2025[166][167]. - The company was in compliance with all financial covenants under the unsecured senior notes and the revolving credit facility as of March 31, 2025[161][164].

Group 1 - CubeSmart held its first quarter 2025 earnings call with key participants including the CEO and CFO [1][2] - The call included prepared remarks followed by a question-and-answer session [2] - Supplemental operating and financial data is available on the company's investor relations website [2] Group 2 - The company provided forward-looking statements regarding earnings and strategy, highlighting potential risks and uncertainties [3]

Financial Data and Key Metrics Changes - The company reported FFO per share of $0.64, which was a penny above the high end of guidance [8][12] - Same store revenue growth decreased by 0.4% year over year, an improvement from a decline of 1.6% in the previous quarter [11] - Average occupancy for the same store portfolio was down 50 basis points to 89.5%, narrowing from a decline of 120 basis points in the fourth quarter [11] - Same store operating expenses grew only 0.6% year over year, better than expectations [12] Business Line Data and Key Metrics Changes - The company closed on the acquisition of the remaining 80% interest in a joint venture, acquiring a portfolio of 28 early-stage lease-up stores [13] - The third-party management platform added 33 stores, ending the quarter with 869 third-party stores under management [14] Market Data and Key Metrics Changes - Strong markets such as New York City boroughs, Chicago, and Washington D.C. continue to show strength, while supply-impacted markets like Northern New Jersey, Phoenix, and Atlanta are stabilizing [9] - In April, occupancy improved to 89.9% [22] Company Strategy and Development Direction - The company remains focused on optimizing its platform while maintaining high customer service standards [7] - The management expressed confidence in the long-term health of the self-storage industry due to the quality and geographic diversity of its portfolio [9] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the economy starting in April, which could impact consumer decisions related to storage demand [15] - The company anticipates gradual improvement in operational metrics in 2025, without expecting a sharp reacceleration [15] Other Important Information - The balance sheet remains strong with a net debt to EBITDA ratio of 4.8 times [14] - The company is addressing a bond maturity later in the year, either through existing capacity or opportunistically accessing debt markets [14] Q&A Session Summary Question: What are the drivers of demand in the current environment? - Management highlighted that demand is driven by everyday life events and business customers needing storage solutions, despite a slow housing market [19][20] Question: What was occupancy in April? - Occupancy ended at 89.9% in April [22] Question: Are there any pricing adjustments being made? - Management confirmed that move-in rates were down about 2% in April, an improvement from previous quarters [23] Question: How does the company view the leasing season? - Management expects a muted leasing season compared to pre-pandemic levels, with gradual improvements anticipated [30] Question: What is the outlook for Texas markets? - Management noted that while some Texas markets are under pressure, they see signs of stabilization and improvement [36] Question: Are there any surprises in development costs? - Management reported no significant surprises in development costs, as projects were not impacted by recent volatility [37] Question: What is the strategy regarding acquisitions? - Management indicated that while wholly owned acquisitions make sense, current market volatility has created uncertainty in valuations [54][55] Question: How does the company view demand in a potential recession? - Management expressed confidence in the self-storage business's resilience during economic downturns, noting that demand often increases during such times [91][92]

Financial Data and Key Metrics Changes - The company reported FFO per share of $0.64, which was a penny above the high end of guidance [6][10] - Same store revenue growth decreased by 0.4% year over year, an improvement from a decline of 1.6% in the previous quarter [8][10] - Average occupancy for the same store portfolio was down 50 basis points to 89.5%, narrowing from a decline of 120 basis points in the fourth quarter [9][10] - Same store operating expenses grew by only 0.6% year over year, better than expectations [10][12] Business Line Data and Key Metrics Changes - The company closed on the acquisition of the remaining 80% interest in a joint venture, acquiring a portfolio of 28 early-stage lease-up stores [11] - The third-party management platform added 33 stores, ending the quarter with 869 third-party stores under management [12] Market Data and Key Metrics Changes - Strong markets such as New York City boroughs, Chicago, and Washington D.C. continue to show strength, while supply-impacted markets like Northern New Jersey, Phoenix, and Atlanta are stabilizing [7][12] - In Texas markets, Dallas is facing challenges due to supply and pricing decisions, while Austin shows signs of recovery [34][35] Company Strategy and Development Direction - The company remains focused on optimizing its platform while maintaining high customer service standards [6][10] - The management expressed confidence in the long-term health of the self-storage industry due to the quality and geographic diversity of its portfolio [7][12] - The company is cautious about the economic environment, maintaining a conservative outlook for gradual improvement in operational metrics in 2025 [13] Management's Comments on Operating Environment and Future Outlook - Management noted uncertainty in the economy affecting consumer decisions, which could impact storage demand [13] - The company does not foresee improvement in the housing market and expects a gradual recovery without sharp reacceleration [13] - Management highlighted the resilience of the self-storage business, noting that demand drivers include everyday life events and business needs [18][19] Other Important Information - The balance sheet remains strong with a net debt to EBITDA ratio of 4.8 times [12] - The company is monitoring the impact of macroeconomic factors on its operations and is prepared to adjust strategies accordingly [13][54] Q&A Session Summary Question: What are the drivers of demand in the current environment? - Management indicated that demand is driven by everyday life events and business needs, despite a slow housing market [18] Question: What was occupancy in April? - Occupancy ended at 89.9% in April, showing a slight improvement [21] Question: How does the company view the leasing season? - Management expects a muted leasing season compared to pre-pandemic levels, with no significant growth anticipated [30] Question: What is the outlook for Texas markets? - Management noted that while Austin is recovering, Dallas faces challenges due to supply and competitive pricing [34][35] Question: How is the company managing expenses? - The company has been proactive in managing staffing and operational expenses, leading to better-than-expected results [50] Question: What is the strategy for acquisitions? - The company is open to acquisitions but faces challenges due to market volatility and seller expectations [53][54] Question: How does the company view potential recession impacts? - Management believes the self-storage business is resilient during economic downturns, with demand potentially increasing due to life changes [88][90]

Core Insights - CubeSmart (CUBE) reported revenue of $273.04 million for the quarter ended March 2025, marking a year-over-year increase of 4.5% and exceeding the Zacks Consensus Estimate of $267.13 million by 2.21% [1] - The company achieved an EPS of $0.64, up from $0.42 a year ago, and surpassed the consensus EPS estimate of $0.62 by 3.23% [1] Financial Performance Metrics - Property management fee income was reported at $10.51 million, slightly below the estimated $10.61 million, but showed a year-over-year increase of 6.1% [4] - Rental income reached $232.77 million, exceeding the estimated $225.78 million, with a year-over-year growth of 3.4% [4] - Other property-related income was $29.77 million, surpassing the estimated $29.33 million, reflecting a significant year-over-year increase of 13.1% [4] - Net Earnings Per Share (Diluted) was reported at $0.39, matching the average estimate based on four analysts [4] Stock Performance - CubeSmart's shares have returned -3.1% over the past month, compared to a -0.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]